Banking expo for SMEs fails to attract visitors

Thursday, February 12, 2009

By Jawwad Rizvi

LAHORE: The Bank Fair for SMEs-2009 organised by the SBP BSC Lahore in collaboration with the 21 commercial banks for the SME sector was a flop show as no actual SME sector people visited the fair.The organisers brought the students of the technical education institutions and other colleges to show the attendance of the audience in the seminar arranged parallel to the stalls of the banks.The seminar was organised to create awareness among the SME sector people to get the credit facilities from the commercial banks. But instead of the people related with SME sector the students of technical institutions and colleges were sitting in the seminar hall. On the other hand at the commercial banks stall side only media persons and officials of commercial banks were seen performing their duties. Interestingly the SBP stall was occupied by the government technical institution Moghalpura. The people of the institution were sitting there. They hanged their banner there and put the items of their students on display. No SBP official was present found at the designated stall. The News during the visit of the fair area and stalls of commercial banks has found that the bankers were not satisfied with the arrangements and promotional campaign of Bank Fair-2009 for SME sector promotion. Number of bankers on the condition of not mentioning their names said that the publicity and promotion campaign of the Fair was not made despite the greatest importance of the SME sector.They said the SBP had limited the expenses of publicity and promotional campaign to Rs30,000 to each bank which was very meagre for a commercial bank. They said the commercial banks can afford Rs3 to Rs4 lakh for promotional and publicity campaigns of such events. Even at the entrance of Aiwan-e-Iqbal where the event was held no flex banner was displayed. Similarly, no roadside banners were seen around the roads of Aiwan-e-Iqbal as in the past whenever any fair or conference were held at Aiwan-e-Iqbal the conference managers hang banners and posters.Meanwhile, at the inaugurating session, the Small and Medium Enterprises Authority (SMEDA) CEO Shahid Rashid said the mounting task of SME development cannot be accomplished without sincere cooperation of the banking industry in the country. Shahid Rashid said the SMEDA had been striving hard to create a conducive environment for SMEs in the country. The major success in this regard has been achieved by evolving the first ever SME policy, which is now on implementation stage, he said adding that the visible change in SME development requires a sincere cooperation from the financial institutions. He acknowledged that the state bank was taking bold initiatives for making availability of financial resources to the SMEs through formal resources. He expressed extreme pleasure over assembling around 27 major banks of the country under one roof to introduce their financial products specially designed for SMEs. He emphasized to strengthen and stabilize this move in the banking industry for the real growth of SMEs in the country.Chief Manager of SBP Banking Services Corporation (BSC) Lahore Barbruce Ishaq in his address terming the first Bank Fair a great success expressed thanks to SMEDA, LCCI, Punjab Small Industries Corporation (PSIC) and to all participating banks for arranging the event. He hoped the Fair would prove to be helpful for the existing SMEs as well as the prospective SMEs with regard to availability of finance through DFIs.

SECP launches online company registration

Wednesday, February 11, 2009

By Jawwad Rizvi

LAHORE: The Securities and Exchange Commission of Pakistan (SECP) has introduced online company registration in order to promote a hassle-free and paperless system.The News has learnt that the SECP has issued an SRO 119 (I)/2009 dated February 6 for company’s registration fee for submission of documents both online and physically. In order to promote a paperless system, the SECP has fixed about half of the registration fee for online process in every category.The SECP notified registration fee of Rs2,500 for online submission of documents for a company with nominal share capital up to Rs100,000. In case the nominal share capital crosses Rs100,000, Rs100 to Rs500 would be added to the fee.For registration of an increase in share capital which came after the first registration of the company, the amount to be paid would be equal to the difference between the amount which would have been payable on registration of the company by reference to the increase in capital and the amount which would have been payable by reference to its capital immediately before the increase, calculated at rates given under clause 2.For registration of any existing company, except for such companies exempted from payment of fee in respect of registration under the ordinance, the fee will be the same as for registering a new company.For filing, registering or recording any document required under the ordinance other than particulars of mortgage/charge or other interest created by a company, or the memorandum or the abstract required to be filed with the registrar by a receiver or the statement or other document required to be filed with the registrar by the liquidator in a wind-up, a fee of Rs500 will be charged for online process and Rs1,000 for physical process.For filing, registering or recording a document related to mortgage or charge required under the ordinance, a fee of Rs5,000 will be charged for online process and Rs7,500 for physical process.An official of the SECP revealed the Commission had introduced the online registration process in an era when everyone was moving in a paperless system. “In corporate culture, the online system is more convenient for the people rather than adopting an orthodox system,” he added.

US counsellor for strengthening oilseed trade

Tuesday, February 10, 2009

By Jawwad Rizvi

LAHORE: Newly appointed US Agricultural Counsellor in Pakistan Joseph M Carroll visited different agriculture departments of Punjab and the federal government in order to deliberate on relevant issues with stakeholders.In this regard, he also held a meeting with the Pakistan Oilseed Development Board (PODB) at the provincial directorate with stakeholders of the oilseed sector also present for strengthening the oilseed trade with the technical/financial collaboration of US Department of Agriculture (USDA).He briefed the participants of the meeting about USDA’s ongoing activities and future plans in Pakistan. He showed interest in enhancement of local oilseed production through technical support and development of strong linkages helpful in promotion of bilateral trade in the sector.PODB Provincial Director Syed Nasir Ali Shah threw light on the activities of the Board for the promotion of oilseed crops and oil-bearing trees, sources in the PODB Punjab Directorate said.He pointed out that wild olive (Kahu) was available in abundance (3.5 million plants approximately) in Potohar and Khushab areas of the Punjab province. It provides a vast scope for the conversion of this natural plantation to oil-bearing species and establishment of olive orchards on marginal lands through saplings to supplement the oilseed production, he added.On the occasion, the representatives of solvent industries discussed production and procurement of indigenous oilseed crops like sunflower, canola and soybean, their crushing, marketing and use of by-products.The meeting discussed the available paraphernalia of the crushing industry helpful in handling the import of huge quantities of oilseeds in Pakistan. Discussing the current situation of oilseed cultivation, the Provincial Director PODB said that low priority to oilseed crops and announcement of attractive wheat price by the government was likely to have a negative impact on the cultivation of canola and sunflower, being the non-traditional crops.He suggested an early announcement of sunflower support price and its procurement through Pakistan Agriculture Storage and Supplies Corporation as an immediate remedy to restore the confidence of growers.The meeting also discussed the prospects of cultivation of soybean in Pakistan and US support in this regard. It was proposed that American Soybean Association (ASA) should be asked to conduct a technical study for soybean cultivation in different ecological zones of Pakistan in collaboration with PODB.Summing up the discussion, PODB officials requested the participants to initiate proposals, identifying the fields of common interest, where the US technical/ financial assistance is desired to enhance the local oilseed crop production for achieving self-sufficiency in edible oils, the sources concluded.

Nutrient management reduces fertiliser use

Saturday, February 07, 2009

By Jawwad Rizvi

LAHORE: Importance of managing fertiliser input techniques have increased in a scenario when international commodity prices are dropping and prices of nutrients are rising. The field crop costs are rising daily. Field crops require adequate nutrients for producing good yields and desirable quality.The agriculturalists using latest farming technique to increase per acre yield said the crops grown with adequate nutrient levels will also mature sooner. Farmers using the artificial methods to control weather and producing early crops said it was possible to optimise fertiliser inputs by adopting different modern techniques.Naseem Haider a modern framer says soil testing was the basis for good fertilizer management. Using fertilizer to meet crop needs is more profitable than feeding the soil, he remarked.Soil testing allows crop producers to compare field fertility levels against the probability that adding any one nutrient will increase crop yields in that field. However, there is need of extensive soil survey by the government as the farmers are unaware of such modern techniques. On the basis of results obtained from the soil survey the government suggest the farmers which nutrients are currently need and which should not be use to increase productivity, Naseem mentioned.Naseem observed that managing nutrient timing and placement could also optimise fertilizer use. Placing phosphorus with or very near the seed of annual crops is best because plants absorb and use most of this nutrient at their initial growth stages. He said yields were best when phosphorus was absorbed into plant tissues early. Phosphorus fertiliser is not available to plants when applied too late or too far from roots.Testing irrigation water is another way to optimise fertilizer efficiencies, said Mian Hanif a seasoned agriculturists. Mostly nutrients exist in irrigation water to meet the crop needs even, he said.Laboratory tests have shown that irrigation water particularly ground water often has adequate amount of sulphur and boron. Similarly, irrigation water may also meet part of nitrogen requirements of the crop. In such cases there was no need to use such nutrients, he said adding excess use of such nutrients was bad from crops. Setting a realistic crop yield goal is important for managing nitrogen fertilizer inputs. The best fertilizer input for increasing irrigated corn profits are usually from nitrogen because this nutrient is nearly always deficient in soils. Nitrogen fertilizer recommendations are based on crop yield goals, soil and water test levels, previous crops and manure applications. Shahid Mobeen an agriculturalist from sindh said nitrogen is absorbed and used during plant growth so the nitrogen fertilizer should be made available when plant growth rates begin to peak. He further said managing irrigation was also critical for fertilizer optimisation. Nitrogen leaching is a problem on sandy soils, especially if it is applied in high amounts before crops begin their rapid growth phase. Irrigation in the spring also cools soils reducing plant root growth and nutrient absorption.Shahid suggested frequent spring irrigation to reduce phosphorus uptake by plants through soil cooling. Reducing fertilizer losses and cool soil absorption problems through good irrigation practices and optimum nutrient placement and timing could reduce the cost of production of farmers.

Sugar rate hike halts

Friday, February 06, 2009

By Jawwad Rizvi

LAHORE: The government’s decision, though late, of importing 200,000 tonnes of refined sugar has for the time being stopped price rise in the wholesale market.However, there are still rumours in the market that the price of sugar will rise above Rs52 per kg as manipulators are trying to take the rate to historic highs, market sources revealed to The News.Manipulators had started pushing up the sweetener’s prices soon after the crushing season kicked off this year. The price of sugar was in the range of Rs2,800 to Rs3,000 per 100 kg at the start of the season.However, the sugar millers taking plea of higher production cost increased the price with the start of production. The millers calculated their production cost at Rs39.37 per kg on minimum sugarcane price of Rs80 per 40 kg.The millers have informed the government that the retail price of sugar for the next season will be in the range of Rs42 to Rs43 per kg, a quantum increase of Rs10 from the current price of Rs32 to Rs33 per kg.A very strong lobby controls the commodity’s trade in the country. Enjoying access to the power corridors, the lobby uses its contacts to influence government’s decisions about import or export of any commodity.In the previous regime, this mafia had successfully pushed the price of sugar to a historic high of Rs42 per kg. “Now it has again managed to get a decision to safeguard their vested interests,” a senior official of the finance ministry revealed. He said the millers were claiming that they had been purchasing sugarcane at Rs125 per 40 kg so they were unable to sell sugar at a lower price.He said a month’s delay in the decision to import sugar would cost $100 million to the national exchequer. He was of the view that government’s timely decision of importing raw sugar could have minimised the loss.On the other hand, the farmers are raising voice regarding sugarcane price. They said they were not getting high sugarcane price as claimed by the sugar milers.Akthar Farooq, Secretary Information Kisan Board Pakistan, said the farmers had not been paid more than Rs80 per 40 kg for sugarcane anywhere in Punjab. “How the millers are claiming Rs125 per 40 kg sugarcane purchase price,” he questioned and said the government could check the millers’ claim by checking Cash Purchase Receipt (CPR) issued by the millers to the farmers.Market sources said currently there was no shortage of sugar in the country then how the price had been going up which negates business dynamics. The price of any commodity increases when the demand is more than the supply.However, in the wake of sugarcane crushing season when the smooth sugar supply is continued showed the failure or involvement of the government in sugar price issue, they added. They said the government should take notice of artificial hike in sugar prices otherwise the manipulators could brought sugar price over Rs50 per kg.

Chapter 11 to be introduced in 2 months

Thursday, February 05, 2009

By Jawwad Rizvi

LAHORE: Governor State Bank of Pakistan Syed Salim Raza Wednesday said that Chapter 11 in the banking law would be introduced in the next two months. This will allow borrowers to declare bankruptcy if they are unable to repay loans to the banks and lose their business. The working on this law was started some three years ago and now the central bank has almost reached the point where it could be introduced. Syed Salim Raza expressed these views during a meeting with the leading industrialists, MPA Punjab and think tanks at the Punjab Governor House. The meeting was organised by the Governor Punjab Salman Taseer.World over Chapter 11 bankruptcies are available to any business, whether organised as a corporation or sole proprietorship, and to individuals, although it is mostly used by corporate entities.The SBP chief hinted a decline in mark-up rates as banks were easing out from liquidity issues and their deposits had started piling-up again. However, he did not announce any timeframe to cut the mark-up rate despite.During the meeting hot debate was witnessed between Advisor to Finance Minister of Musharraf’s regime Dr Salman Shah and Salim Raza and director monetary policy department of SBP Dr Hamza Ali Malik as SBP chief had asked the director to reply Dr Shah quires. Dr Shah asked the SBP chief to ponder upon the monthly figures of inflation and bailout the industry on short-term basis as being adopted world over to minimize the impact of credit crunch. Raza said that the central bank was not focusing on short term polices. Dr Shah said that there is disinflation in the country during the last three months so the central bank should reduce the mark-up rates. He said comparing current inflation figures with past five year’s data is not suitable when the world economies are facing the credit crunch where as five years back there was excess liquidity in the system.In his presentation to the industrialists Salim Raza justified the Monetary Policy announced last week. He said risks to Pakistan’s economy are relatively less as compared to 2008. Vulnerability of the external sector due to high prices of oil and other commodities; high cost of imports and weak prospects of foreign investment, have moderated considerably owing to improvements related to each area.The SBP governor said progress has been made to control inflation in the last four months. The slow improvement in core inflation is due to the fact that non-fuel and non-food items, such as wages and rents and fares etc. continue rising after the supply side shocks recede.This entrenched trend is because inflationary expectations remain; for the good reason that we have had 12 months of high inflation.He said that by the end of FY09 there will be some reduction in both the fiscal and external current account deficits relative to FY08. The demand pressures have not completely dissipated despite a slowdown in economic activity, Raza said adding that the high expected average CPI inflation of 20 percent for FY09 (significantly higher than the FY09 target of 11 percent) and its persistence, reflected by core inflation measures, clearly reflect the risk on this front. “We have seen an unprecedented fall in banking liquidity post June,” he said. Between July 1 and Jan 10 deposits shrank by 3.4 per cent, or Rs128 billion, total credit grew 11 per cent or Rs500bn, putting a strain of Rs628bn on the system, or shrinking available liquidity by 14 per cent. This level of contraction of liquidity would have raised interest rates regardless of where the discount rate was. He emphasised to develop a string bound market in Pakistan in order to avoid such liquidity crunch issues in future. The segregation of debt and monetary management were positive steps in the development of a liquid government debt market; Ministry of Finance will now decide the cut off yields of T-bills and PIBs.SBP increased banks’ limits for Export Finance Scheme (EFS) by Rs25bn from Rs181bn to Rs206.3bn. The limits for Long Term Financing Facility LTFF were raised Rs10 billion from Rs9.5 billion to Rs19.5 billion, he reminded. Salim Raza said that there are indications of an improvement in the current account balance due to falling international commodity prices and strong remittances, however the balance of payments position is still exposed to several risks.

Suprious ghee sales causing health issues

By Jawwad Rizvi
LAHORE: The sale of substandard and expired ghee and cooking oil of famous brand is continued unabatedly in the provincial metropolis and other cities at the Utility Store Corporation (USC) stores and franchises.
Consumption of the expired ghee and cooking oil has been adversely affecting the health of people while the authorities concerned are not taking notice of it. The News has found in a survey of the various USC Stores and franchisees of the city and adjoining areas of the provincial metropolis had found that the USC supplied expired ghee and cooking oil to the stores again. The managers of the USC stores and franchises usually sent back expiry items to the warehouses of the Corporations on the complaints of consumers or their routine checking. But the USC management at warehouses sent it back to the stores.
In the case of ghee and cooking oil pouch bag the management of warehouses sent back supply to the stores without cartons. It has found that the stores managers sent the complaints to the management of the Corporation regarding the expired products supply. They have also been informing the customers’ complaints to management regularly. They are pointing out the substandard quality of cooking oil and ghee to the USC high-ups.
Store manger of urban area of the city disclosed to this correspondent on the condition of anonymity that he had sent back ghee and cooking oil to the warehouse on the account of customers’ complaints one week ago. However, same ghee and cooking oil had supplied again with the instructions to sell this lot as early as possible, he added.
Another manger deputed at a stored situated in a middle class locality said ghee and cooking oil was supplied after January 27. This time both items are supplied in plastic bags rather in cartons. The expiry dates of pouch bags are printed on the cartons so now we don’t know the expiry date of the supply’, he added. He also confirmed the instructions of selling the lot as early as possible.
Another manger of a franchise situated at Lahore-Garanwala road said almost every item sold here and he had not received any complaints about the expiry date due to lack of awareness among the people. However, he mentioned that he had received complaints about ghee and cooking oil from the customers. The customers’ complaint that when the put cooking oil and ghee on fire it gives bad smell, he said. “I twice sent back the expiry items to the warehouse but I received it again with the instructions to sell it”, he said.
When contacted, Regional Manager USC Lahore-I Faizan Ahmed said they got back expired items from the stores. He further said that expired items had not supplied again to any store and sent back to the companies.
It is important to mention here that The News had already pointed out this issue some three months back when a lower cadre officer of armed forces offices had compliant about the sale of substandard ghee at cantonment areas USC store.
On the other hand an official of the USC Lahore warehouse revealed that there was still huge quantity of expired ghee and cooking oil in warehouse. He said with the connivance of the USC staff and ghee and cooking oil supplying companies the expiry ghee and cooking oil was not sent back to the factories physically while in documents the factory managers showed it expired and cleared the accounts. Latter, this expired ghee and cooking oil supplied back to stores and franchises. Usually, expired ghee and cooking oil sent to the rural areas and suburbs due to lack of knowledge among the people and they consumed it without raising their voices.
An official of a leading ghee and cooking oil brand said the company always welcome the expired items to maintain its standard. It is not suitable for any company that its expired products sell in the market as it will damage repute of the company. He further said the company not only got back the expired items from stores but also from open market as well.
When contacted, General Manager Vigilance USC, Lt Col (Retd) Muhammad Naseer said that the Corporation had strictly banned sale of expired items every store. He said no senior official of the Corporation was involved in heinous crime. “If the sale of expired item is continued at any store then it is only due to the carelessness of respective Zonal officers and the corporation will take stern action against the culprits”, he added.