Nationwide Updates

► Iran seeks more trade in identified goods

The private sector trade delegation from Iran has called for promotion of bilateral trade, especially in 697 identified goods from both sides, wherein either zero-rated or concessional customs duty is applied. During a visit to the Karachi Chamber of Commerce and Industry here on Tuesday, it said 309 items could be exported to Iran whereas 388 items could be imported. Both the governments had already agreed to charge very concessional customs duty on these goods, placed on the list meant for bilateral trade, said Eraj Hassan, leader of the delegation.  (Dawn)

► Export finance limits extended till Aug 31

Limits sanctioned by banks to individual exporters under Part-II of Export Finance Scheme (EFS) for 2007-08 have been allowed to continue up to August 31, 2008 to enable the exporters to avail financing facilities under the scheme. The export refinance limits sanctioned in favour of banks for 2007-08 are due to expire on June 30, 2008. Under the present system exporters are required to submit EE-1 statement for the year 2007-08 duly verified by the State Bank of Pakistan (SBP) foreign exchange operations department latest by August 31, 2008.  (Dawn)

► Mango, potato exporters suffer Rs130m losses

All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association Chairman Abdul Wahid said on Tuesday that mango and potato exporters have suffered a loss of Rs100-130 million due to insufficient shipping services. He said in a statement a ship operated by Karachi Agents Sea Consortium loaded about 37 containers of mango and potato for Dubai on June 7. The ship was reportedly having problems but the fault was not reported to the exporters. The ship sailed off on June 13 but it developed fault on its voyage, ultimately toed to the Dubai Port where it called on June 23.  (Dawn)

► All subsidies to go this year: minister

Commerce Minister Chaudhry Ahmed Mukhtar told the National Assembly on Tuesday that all subsidies being provided by the government on various items would be withdrawn by the end of the current year. Speaking on a call-attention notice, he said the subsidies on gas and electricity were being removed gradually. He said people would have to learn to live without subsidies. He said the government did not have surplus funds for the energy sector. He expressed concern over import of raw material, saying that over $1 billion was spent on importing cotton.  (Dawn)

► 3pc mark-up facility for spinners ends

The State Bank of Pakistan has instructed the banks and development finance institutions (DFIs) to suspend the facility of three per cent interest rate discount for the spinning sector from July 1, till further instructions. In a circular issued to the banks and DFIs, the central bank’s microfinance department informed them that the federal government had directed the State Bank not to allow the interest rate subsidy to the spinning sector after June 30. The government had allowed interest rate subsidy for the spinning sector for one year.  (Dawn)

► CNG price to cross Rs50/kg

The price of compressed natural gas (CNG) will cross Rs50 per kg after 30 per cent increase in its rate and levy of five per cent gas development surcharge from July 1, 2008. Pakistan Petroleum Dealers Association and CNG Dealers Association Abdul Sami Khan Chairman said on Tuesday that the government “aims to bring the CNG price at par with the diesel” to generate revenue. Currently, CNG costs Rs38.25 per kg. He said putting burden on the industry through various levies will impede investment by the private sector.  (Dawn)

► PC says privatisation to yield Rs122bn

The Privatisation Commission on Tuesday categorically rejected the notion of cutting privatisation proceeds in the next fiscal year and claimed that in the year 2008-09, most of the entities would be privatised, which is expected to realise sale proceeds of about Rs122 billion. “There is no plan to cut privatisation proceeds in the year 2008-09,” a Privatisation Commission spokesman said while referring to a news item which stated that privatisation proceeds’ target has been cut by 98 per cent. “The preparatory work done during the current financial year will help the Privatisation Commission to privatise most of the entities during the next fiscal year (2008-09), which is expected to realise sale proceeds of Rs122 billion approximately.”  (The News)

► Makro Cash and Carry to invest $300m in Pakistan

A team of leading local and international investors held separate meetings with the Prime Minister, Syed Yousaf Raza Gillani and showed keen interest in furthering their investments in Pakistan. Makro Cash and Carry would invest $300 million for setting up of 30 more retail outlets in Pakistan. Mr Farhad Zulfiqar, Executive Chairman, Makro Habib Pakistan told the Prime Minister that Makro Cash and Carry has 172 stores worldwide in five countries of Asia and four countries of South America and has an annual turnover exceeding four billion Euros. staff report.  (Daily Times)

► KSE rebounds with curbs on short selling  

The Securities and Exchange Commission of Pakistan and the Karachi Stock Exchange, on Monday, took some emergency measures to avert the systemic risk in the wake of persistent fall in the market. Plus-minus five percent circuit breakers were changed to one and 10 percent for lower and upper single day movement in a share. Short selling in deliverable futures has been banned. And, bank guarantees from 'A' rated banks have been allowed as margin in place of cash and securities. The SECP Chairman said these temporary measures are aimed to stabilise the market while protecting the existing risk management system of the exchange.  (Business Recorder)

► Governance has deteriorated in Pakistan: World Bank report

The rhetoric of the previous regime about good governance has been exposed by the World Bank report ‘Governance Matters VII’ that states that governance in Pakistan deteriorated to the lowest ebb in 2007 than a decade ago. Latest governance indicators, evaluated by the World Bank for all its member countries, include voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law and control of corruption. On almost all counts, the governance was better in 1998 than in 2007. In fact, Pakistan’s governance level was much lower than India and China and in some cases even below Bangladesh.  (The News)