Motorcycle industry : New entrant policy termed ‘disaster

Motorcycle industry : New entrant policy termed ‘disaster’

Staff Report 

ISLAMABAD: Pakistan’s motorcycle industry here on Monday termed new entrant policy for new motorcycle manufacturers as a disaster for the existing industry and warned that this would result in promoting organised sector into an unorganised sector.

The representatives of the motorcycle industry informed a selected group of reporters that the new entrant policy is being formulated to benefit one new manufacturing company, which intends to manufacture motorcycles above 100cc.

The representatives of the industry were of the view that the policy would not benefit the company being rewarded at the cost of the existing industry as it would only hurt the expansion in the existing industry. They were of the view that at a time when motorcycles are being sold at $110 to $1,200 in other countries, due to localisation of parts in Pakistan motorcycles are being sold at less than $500. Localisation has benefited the consumers in Pakistan and new entrant policy will promote imports and would have a very negative impact on localisation efforts being made by the existing industry. The country would turn into a trading hub if the proposed policy is approved and implemented as local players would prefer importing motor cycles rather than manufacturing them locally.

The proposed import tariff for new entrants has been proposed at 5.0 percent against the 65 percent for others who would be importing motorcycles in Completely Built Unit (CBU) condition.

They feared that existing manufacturers of motorcycles would get themselves as new entrants and would like to benefit from import tariff incentives proposed in the policy and local vender industry, which has already achieved localisation up to 93 percent in 70cc would get hurt badly along with loss of thousands of job opportunities in the country.

Attock Refinery increases lube oil price by Rs 9

Attock Refinery increases lube oil price by Rs 9

Staff Report

KARACHI: Attock Oil Refinery (ARL) has increased the prices of lube base oil by Rs 9 per litre, which would result in sharp increase in all the lubricating oils, adding another burden of Rs 11 per litre to the end-consumers.

All Pakistan Lubricants Manufacturers Association (APLMA) Chairman Mian Zahid Husain while condemning this arbitrary act of the refinery announced on Saturday, said that this is the sixth increase by Attock and National Refinery Limited (NRL) and they have become habitual of increasing prices unabatedly and unchecked.

He warned that this increase could result in the price spiral of every brand of lubricating oil by another Rs 11 per litre in the retail market and on all brands.

While demanding imposition of a price control mechanism on lube base oil manufacturers, Husain said that ARL and NRL, the major shareholders of the lube base oil manufacturers had so far increased the price by Rs 51.50 per litre in the last 14 months and this was the sixth announcement of price increase in the lube base oil during the period.

“The lubricating oil manufacturers are constantly being ignored by the lube base oil manufacturer and raising prices without any consultation with the stakeholders on vague pretexts,” alleged Husain, and asked the government to intervene into the matter and get the refinery’s decision reversed.

Husain said that the oil refinery was increasing prices frequently on various pretexts and warned that if the trend continued the lubricant manufacturers would be forced to shut down their businesses.

Serious planning urged to boost rice industry

Serious planning urged to boost rice industry

KARACHI: The Union of Small and Medium Enterprises (UNISAME) has urged the candidates for managing committee (MC) elections of Rice Exporters Association of Pakistan (REAP) to declare their groups manifesto for the tenure they are seeking to be elected as members of the MC. The rice exporters are eager to know how the candidates plan to promote the industry to make it competitive and overcome the challenges faced by the big and small rice exporters. President UNISAME, Zulfikar Thaver said the rice industry was stagnating and facing tough times due to lack of planning on the side of the ministries of agriculture, commerce and finance. The rice exporters deserve the best attention from the government, as next to textile it was the most important foreign exchange earning sector. The export of basmati rice has suffered a setback and non-basmati rice is not fetching good price. The farmers are in turmoil because of high cost of inputs. They are getting inferior seeds, fertilizers and the pesticides and insecticides are counterfeit and fake. Surprisingly the growers associations are passive and not taking up the matter with the authorities. If this state of affairs continues it will damage the industry. The milling plants have old machinery and are not resorting to paddy drying by machines. The merchants in UAE are importing our rice and blending it with Indian rice and exporting it as Indian rice. Pakistani exporters have worked hard to establish their brands but are facing decline in buying due to the unfair practices of Indian merchants in UAE. The rice commissioner is not playing an effective role as banned varieties are being cultivated and there is less focus on our superior varieties of rice known for their aroma, length, taste and cooking abilities. REAP would advocate the cause of the rice exporters and enable the rice exporters to repay the banks the huge amounts borrowed under export refinance scheme. ppi

Indian group visits PSF

Indian group visits PSF

ISLAMABAD: The Indian Working Group on Science and Technology (S&T) visited Pakistan Science Foundation (PSF). The Indian Working Group (IWG) comprised Dr Akhilesh Gupta, head of Climate Change Programme and Shri R K Sharma from International Cooperation Division in Department of Science and Technology were given presentation on PSF activities. The PSF chairman explained the Foundation’s activities for promotion of science and technology in Pakistan. The IWG is a part of Pakistan-India Joint Commission, which met during the visit of Indian Foreign Minister to Pakistan. The IWG members briefed the host on the programmes and activities of DST and said the ratio of Indian students’ enrollment in science subjects stood at around 27 percent and most of the students opt for humanity subjects. staff report

Domestic debts, liabilities up 26 percent in a year

Domestic debts, liabilities up 26 percent in a year

Staff Report

KARACHI: The government’s domestic debts and liabilities have seen a whopping yearly surge of Rs 1,648 billion or 26 percent to reach overall burden of Rs 7,879 billion by end of financial year 2011-12 as compared with Rs 6,231 billion in the previous financial year 2010-11, State Bank of Pakistan (SBP) data showed.
The government borrowed the colossal amount through its federal government bonds particularly Pakistan Investment Bonds (PIBs) and Ijara Sukuk whereas its debts expanded through Market Treasury Bills.
The debts under federal government bond increased to Rs 1,395 billion by June as against Rs 844.4 billion amount stood in the same month of yesteryear, showing an increase of 61 percent or Rs 515.2 billion in a year’s period. The debts accumulated under Pakistan Investment Bonds (PIBs) rose to Rs 974 billion by end of June as against Rs 618.5 billion recorded in the same months, up by 57.5 percent in a year.
Government’s Ijara Sukuk Bonds witnessed a surge of 70 percent from 2010-11 to 2011-12, reaching the level of Rs 3,383.5 billion after addition of $158.9 in the worth during the outgoing financial year.
Similarly, it borrowed an amount of Rs 56.3 billion in a year through prize bonds, which stood at Rs 333.4 billion by end of 2011-12.
As far as floating debts are concerned, it surged by 28 percent or Rs 907 billion up to June 2012. The overall amount of debts increased to Rs 34,143.1 billion from Rs 3,235 billion in a year.
The government accumulated debts more than Rs 565.8 billion through Market Treasury Bills, which were up 31 percent in a year to reach Rs 2,383 billion as of June 2012 from Rs 1,817 billion since the same month of previous year.
Analysts said that the massive debts expansion was recorded in a year by the government in order to meet its budgetary expenses.

Pakistanis spending 42% income on food, beverages

Pakistanis spending 42% income on food, beverages

* Seminar highlights food industry has become second largest economic sector sharing 17% of GDP in Pakistan

Staff Report

LAHORE: Despite the food shortage in the country, food industry in Pakistan has become the second largest industry sharing 17 percent of the gross domestic product (GDP) as Pakistanis are spending 42 percent of their total income on the food and beverages.

Food industry is facing the problem of food shortage caused by improper handling of produced items and the magnitude of post-harvest losses in vegetables and fruits is 40 percent while in case of grains 20 percent.

This was disclosed by the speakers in a seminar on ‘Current Status of Food Industry in Pakistan: Threats and Challenges’ organised by the Pakistan Council of Scientific and Industrial Research (PCSIR) at its auditorium here on Thursday in which stakeholders of the food industry also participated. Different food processors and exporters have set up stalls to exhibit their products there too.

Federal Minister for Science and Technology Mir Changez Khan Jamali chaired the seminar while PCSIR Chairman Dr Shoukat Pervaz, PCSIR Director General Dr Shahzad Alam, World Food Programme Pakistan Chapter Country Director Jean-Lue Siblot, PCSIR’s Planning and Development Director Dr Nusrat Ejaz and other scientists also highlighted the problems of the food industry and its solutions.

Addressing the seminar, the chief guest Jamali said that in a developing country like Pakistan, technical advancement couldn’t be achieved through imported technologies only and there was a need to get skills in these sectors. Our local food industry can play a major role in the economic growth of Pakistan as huge gap exists between production and preservation. He informed that his ministry had decided to embark upon a comprehensive program for close collaboration with all stakeholders, keeping in view, their needs for national interest in food industry. He further informed that they had established a commercialisation cell in Islamabad to build a close contact among industries and its research organisations.

The PCSIR chairman addressing the participants said that all the problems facing by the food industry could only be ended through advancement of scientific and technological skills by all the stakeholders. He informed that PCSIR had been able to establish a network of 14 research institutions and laboratories, where 850 scientists, technologists and engineers were engaged in scientific food research. He said that there might be more than 1,000 larger-scale food-processing enterprises in Pakistan and overall food retail and wholesale business accounts for 17 percent of the GDP.

taly’s APC consortium offers solution to save 100BCF gas

taly’s APC consortium offers solution to save 100BCF gas

* Offer includes replacement of existing gas meters with smart meters and gas leakage detection and reduction in existing gas transmission and distribution system

Staff Report

ISLAMABAD: The Asia Pacific Corporation (APC) consortium from Italy has offered Pakistan replacement of existing gas meters with smart meters and gas leakage detection and reduction in the existing gas transmission and distribution system of the Sui Northern Gas Pipelines Ltd and Sui Southern Gas Company Ltd networks. It is estimated that potentially 100 billion cubic feet (BCF) gas could be saved from the solution presented by APC.

Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain has said that the government’s top priority is to solve existing energy crisis, for which a number of steps are underway. An important area is the high Unaccounted-for-Gas ratio, which has to be brought down. He said this while meeting a delegation of the APC consortium that met Hussain on Thursday. The meeting was also attended by Ambassador of Italy in Pakistan Adriano Chiodi Cianfarani, Petroleum Secretary Waqar Masood Khan and senior officers of the Ministry of Petroleum and gas companies.

The APC consortium in their presentation provided an outline of the feasibility assessments and engineering, project development, financing and risk minimisation. The proposed solution will entail complete real-time information about each consumer and meter and its two-way linkage with head-end. It is estimated that potentially 100 BCF gas can be saved from the solution. The consortium also informed that they want to make investments in this project and repayment would be made from the sale of gas and decreased losses, which would entail no debt burden on the companies or the consumers.

While welcoming the proposed solution, the adviser informed the delegation that proper procurement procedures as per Public Procurement Regulatory Authority Rules have to be followed in implementation of the proposal and directed gas companies to work out the modalities within two weeks to save the precious gas.

In a separate meeting with CEOs of Oil Marketing Companies (OMCs), Dr Hussain emphasised on monitoring of retail outlets for quality product sale and elimination of hoarding and stocking. OMCs requested the adviser on petroleum to facilitate them in clearance of their receivables. Dr Hussain assured the delegation that these issues would be taken up with the concerned departments immediately. OMCs were further informed that the government is taking various measures to resolve the issue of inter-corporate circular debt and in this regard, OMCs were requested to cooperate with the government.