Important Business News 10th May, 2018


                                                         Important Business News

                                                                  10th May, 2018

S.# Description Pg # Source
1. Money laundering allegation
PM for formation of body to probe NAB’s action

Prime Minister Shahid Khaqan Abbasi on Wednesday criticized National Accountability Bureau (NAB) for initiating an inquiry against former Prime Minister Nawaz Sharif for alleged laundering of $4.9 billion to India and urged the speaker National Assembly to constitute a special committee to probe action of the watchdog.
Speaking on floor of the National Assembly, the Prime Minister said the NAB has leveled serious allegation against the former prime minister and this also amounts to a “pre-poll rigging.”
He also said that the House should summon chairman NAB and ask him about the sources of information and evidence on the basis of which the inquiry has been initiated.
1 Business Recorder
2. Europeans work to save Iran deal, business

Dismayed European allies sought to salvage the international nuclear pact and preserve their business with Iran on Wednesday after President Donald Trump pulled the United States out of the landmark accord and ordered sanctions reimposed on Tehran.
“The deal is not dead. There’s an American withdrawal from the deal but the deal is still there,” French Foreign Minister Jean-Yves Le Drian said.
But Iranian President Hassan Rouhani, a pragmatist who helped engineered the 2015 deal to ease Iran’s economically crippling isolation, told French counterpart Emmanuel Macron in a phone call that Europe had only a “limited opportunity” to preserve the pact, the Iranian Students.



Business Recorder
3. ‘New textile package to be announced soon’

Prime Minister Shahid Khaqan Abassi has assured that new textile package will be announced within the next couple of days.
Talking to Shabbir Hussain Chawla President Faisalabad Chamber of Commerce & Industry (FCCI) and other business leaders, after attending a meeting of anomalies committee, the prime minister said the government was already trying its optimum best to clear the pending refund claims and hopefully this issue would be resolved during the current month. About a huge difference in the gas tariff for Punjab and other provinces, the PM said that federal government is handicapped under 18th amendment to facilitate them.



Business Recorder
4. DG NLC urges modernization to tackle challenge of CPEC 
Director General NLC Maj Gen Mushtaq Ahmed Faisal has said that National Logistic Cell (NLC) is contributing to all facets considered as yardstick for the Logistics Performance Index (LPI) of the country. Addressing the CPEC Logistics at National Institute of Transport (NIT) at National University of Science and Technology (NUST), DG NLC said that it is imperative to modernize the transportation sector to effectively tackle logistic challenge of CPEC.
“The successful actualization of CPEC requires a robust logistics mechanism for which collaboration between logistics industries of Pakistan and China is required,” he said.
4 Business Recorder
5. Rice exports post 27pc increase in 10 months

Rice exports from Pakistan have seen sizeable growth of 27 percent in the first ten months of current fiscal year (FY18).
Pakistan has exported some 3.228 million metric tons of rice amounting to $1.573 billion in July to April of this fiscal year, whereas the country had exported 2.8 million metric tons of rice amounting to $1.23 billion in the same period of last fiscal year, depicting a significant growth of 27 percent in terms values and 15 percent in terms of quantity.

5 Business Recorder
6. ‘Digital Pakistan Policy’ awaits PM’s nod

The ‘Digital Pakistan Policy’ proposing several incentives, including 10 percent rebate, cash reward and special economic zones for information technology & enabled services’ exports and growth, is waiting for the final nod of Prime Minister Shahid Khaqan Abbasi.
The official sources revealed that Ministry of Information Technology and Telecommunication has revised and finalized the first-ever “Digital Pakistan Policy” draft and submitted it to the Prime Minister. The Prime Minister had earlier raised several points including incentives as well as consultations with all the stakeholders.

5 Business Recorder
7. Levelized tariff of $0.4177 per mmbtu RLNG determined for May

Oil and Gas Regulatory Authority (Ogra) has determined for Pakistan LNG Limited (PLL) a levelized tariff of $0.4177 per mmbtu RLNG for the month of May.
The aforesaid charges are based on 600 mmcfd LNG consignment. During the month PLL has, however, planned the procurement of only two cargoes instead of six cargos which optimally utilized the terminal capacity.

7 Business Recorder
8. KCCI proposes to improve ‘Doing Business Ranking’ to reap benefits of CPEC

The Karachi Chamber of Commerce and Industry (KCCI),has proposed that the Doing Business Ranking should be improved drastically by taking concrete steps where the rankings should be improved by almost 50 ranks in order to reap the benefits of CPEC.
The Doing Business Ranking of Pakistan has slipped by three notches from 144 to 147 in 2018 as per World Bank which is mostly contributed by the business environment of Karachi. This means that by improving situation in Karachi, the whole country will progress through improved foreign investment inflows and better perception of the country.



Business Recorder
9. Rising trade gap creating serious BoP issues: NA panel

Members of the Finance Committee of the National Assembly have expressed serious concern over the rising trade gap whose ramifications on foreign exchange reserves and external account are creating serious balance of payment problems for the country.
A meeting of the committee chaired by Qaiser Ahmed Sheikh was held on Wednesday to discuss the updated status on its recommendations to the government with regard to suggestions received from various stakeholders. The meeting was flatly annoyed over the government for not accepting their proposals in the finance bill. During discussion on the proposals, Nafeesa Shah pointed out that warning on balance of payment challenges is coming from multilaterals. She said that all this is happening because of rising trade gap due to China-Pakistan Economic Corridor (CPEC).

13 Business Recorder
10. SC asks govt, Ogra to justify POL price hike

The Supreme Court Wednesday issued notices to the federal government, the Oil and Gas Regulatory Authority (OGRA) and other stakeholders to file statement showing the justification of fixation of petrol and gas prices.
A three-judge bench, headed by Chief Justice Mian Saqib Nisar, was hearing a suo motu regarding high prices of gas, oil and petroleum products.
Khawaja Azhar Rasheed, appearing on behalf of OGRA, informed that fixing of oil and gas prices are determined by the government, while the regulatory authority only notifies it.

22 Business Recorder
11. Income tax rates

The Senate Standing Committee on Finance has suggested an increase in the income tax rates that, as per the Federal Board of Revenue (FBR), would generate an additional 20 billion rupees. This proposal is fully supported by Business Recorder as the reduced income tax rates, announced by Prime Minister Shahid Khaqan Abbasi, flanked by the architect Miftah Ismail, three weeks before the budget was announced in parliament and eight weeks before the end of the current administration’s tenure, was widely seen as blatant pre-poll rigging. The new suggested rates by the Committee are as follow: 10 percent on those with an income up to 1.2 million rupees (against the Abbasi announcement of 5 percent), 15 percent on those earning from 1.2 million to 2.4 million rupees per month (against the 10 percent proposed by Abbasi) and 25 percent on those earning 4.8 million rupees and above against Abbasi’s proposal of 15 percent.

20 Business Recorder


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