Important Business News 16th May, 2018

Important Business News

16th May, 2018


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1. Rs24bn set aside for next export package: Miftah

Finance Minister Miftah Ismail announced that a new export package is in the making to be unveiled in a few days to further augment growth in the country’s exports.
Winding up debate on budget in the National Assembly, the minister stated that while considering the proposals of the members of the Parliament, some amendments have been proposed in the budget. “We have decided a new export package to further boost the exports, which had been on downslide during the last few years and are now showing some growth subsequent to the measures taken by the incumbent government as well as depreciation of exchange rate,” he added.

1 Business Recorder
2. Mumbai attacks: PM defends Nawaz’s remarks

Prime Minister Shahid Khaqan Abbasi told the National Assembly on Tuesday that remarks of former Prime Minister Nawaz Sharif were misreported by Indian media, and urged the opposition members to refrain from putting the national security at stake for political point-scoring.
While speaking on the floor of National Assembly, Abbasi said, “Indian media misinterpreted the interview of Nawaz Sharif for its own purposes. It is unfortunate that we followed their lead. Not only did we follow it but it also became a lead story of our electronic and print media. There is no reality in it. In detailed interview of Nawaz Sharif, a sentence about militant organization and non-state actors was misreported by Indian media. Will we allow ourselves to be used by India? We should not become the tool of India.”



Business Recorder
3. Senate passes GIDC bill

The Senate Tuesday passed ‘The Gas Infrastructure Development Cess (amendment) Bill 2018’ with a majority vote to collect Rs12 billion from CNG stations that is half of the cess payable to the government by them.
State Minister for Finance Rana Afzal Khan presented the bill in the House while members of Pakistan Tehreek-e-Insaf and Muttahida Qaumi Movement-Pakistan opposed it and also staged a token walkout.
The minister said the CNG stations through All Pakistan CNG Association have agreed with the government to pay approximately half of the cess payable pertaining to the period from January 2012 to May 2015 amounting to Rs12 billion.

1 Business Recorder
4. NAB chairman summoned by NA body

National Assembly Standing Committee on Law and Justice has summoned National Accountability Bureau (NAB) Chairman former Justice Javed Iqbal today (Wednesday) to explain the order of an inquiry into allegation of laundering $4.9 billion to India against former Prime Minister Nawaz Sharif.
Committee Chairman Chaudhary Muhammad Ashraf while talking to Business Recorder said, “We have summoned the NAB chairman on Wednesday to the meeting to explain the allegation of money laundering against Nawaz Sharif.” He said that Prime Minister Shahid Khaqan Abbais had raised the issue on the floor of the National Assembly about a press release issued by NAB in which it asked for probing the allegation of money laundering against Nawaz Sharif and others. He said that the Prime Minister had proposed to constitute a special parliamentary committee comprising members of all parliamentary parties to investigate the matter.

1 Business Recorder
5. $2.2bn FDI fetched in 10 months

Pakistan fetched Foreign Direct Investment (FDI) amounting to some $2.2 billion during the first 10 months of this fiscal year (FY18), supported by Chinese investment under the CPEC.
China remained the top contributor to FDI and the country received massive investment from China for construction, energy and infrastructure projects under the CPEC. Chinese investment accounting for about 68 percent of the total FDI arrived during current fiscal year.

1 Business Recorder
6. 500 city wardens to assist traffic police in Ramazan

Karachi Mayor Wasim Akhtar on Tuesday said some 500 city wardens would assist the police in regulating the flow of traffic, particularly during peak hours in the holy month of Ramazan.
Presiding over a meeting at his office to review the traffic plan for the holy month, the Mayor said over 1000 city wardens would perform duties at important commercial centres, mosques and traveeh places during the sacred month of Ramazan.
Wasim directed the relevant authorities to remove the roadside stalls and pushcarts to ensure smooth flow of traffic. He also asked the officials of various civic departments to develop strong coordination among each other and in this connection, focal persons be appointed to facilitate the citizens in Ramazan.

5 Business Recorder
7. Faisalabad varsity declared smoke and drug-free institution

The University of Faisalabad has been declared as smoke and drug free by the Drug Advisory Training Hub (DATH), a non-government organisation working on abuse of drugs.
In this context, a memorandum of understanding (MoU) has been signed between both the organisations with an aim to restrain youngsters from the consumption of drugs which is increasing at an alarming pace.

5 Business Recorder
8. UNDP to help BoI set up first Impact Investment Fund

United Nations Development Program (UNDP) will support Board of Investment (BoI) in establishment of Pakistan’s first Impact Investment Fund.
This partnership is considered to leverage the private sector and capital markets to support SDGs-aligned financing and investment models focusing on venture capital – capital that is prepared to take on additional risk to kick-start underserved sectors and districts within Pakistan.

8 Business Recorder
9. Sindh & Punjab: Water shortage for kharif season soars to 41pc

The shortage of water for early Kharif season for Punjab and Sindh has increased from over 35 per cent to 41 per cent from projected 31 per cent due to lower inflows than estimates firmed up by the water regulator in consultation with Pakistan Metrological Department (PMD).
All members of the Advisory Committee once again emphasized the need for construction of new reservoirs in the country to meet increasing demand of water for irrigation.
According to Irsa spokesperson, Rana Khalid Idrees, water inflows remained 15 per cent below expectations – 7.9 MAF from 9.32 MAF. Punjab objected to heavy losses from Taunsa to Kotri which were about 1 MAF.

8 Business Recorder
10. Around 6m children enrolled in schools, claims minister

Federal Minister for Education Engr Muhammad Baligh-Ur-Rehman on Tuesdayclaimed that around six million children were enrolled in schools during the last five years while number of school leaving children decreased significantly.
“After the 18th Constitutional amendment, the education process in community based schools was hurt,” said the minister while addressing the opening ceremony of Pakistan’s first National Training Institute (NTI) for Literacy and Non-Formal Education (NFE) established by National Commission for Human Development (NCHD) for the training of community schools teachers.

12 Business Recorder
11. Circular debt crosses massive Rs500bn mark

Some 48 percent of the Independent Power Producers (IPPs) are non-operational due to the non-payment of dues, said power sector sources.
It may be noted that the circular debt has crossed the magical figure of Rs 500 billion and is further likely to grow due to low recovery and high rate of power theft across the country.
Total installed capacity of IPPs in the country is 14,683 almost half of which is dysfunctional, causing a negative impact on the supply side of electricity. Meanwhile, total installed capacity from all sources is 30,195 megawatt and IPPs top this capacity, followed by 6001 megawatt of thermal and 2069 megawatt from other sources including nuclear, coal, wind, biogases and solar etc.

13 Business Recorder
12. Vietnam, Pakistan to sign FTA soon: envoy

Ambassador of Vietnam to Pakistan Pham Hong Kim on Monday said that Vietnam and Pakistan are actively considering signing “Free Trade Agreement” for boosting bilateral trade between the two countries.
Addressing the members of Sialkot Chamber of Commerce and Industry (SCCI) he added that the two sides will soon start negotiations for signing the Free Trade Agreement. The Ambassador on this occasion said that exchange of trade delegations could play an instrumental role in boosting the bilateral trade between Vietnam and Pakistan.

13 Business Recorder
13. FCCI proposes incubation centre for business starters

Faisalabad Chamber of Commerce & Industry (FCCI) is actively considering a proposal to setup an incubation centre for business starters of this region, said Shabbir Hussain Chawla President FCCI. He was giving briefing to a delegation of Sahiwal Chamber of Commerce & Industry (SCCI) that visited FCCI here on Tuesday.
He said that Faisalabad is swarming with robust Small & Medium Enterprises (SME) sector which is the main strength of this dynamic industrial and business hub of the country. He said that young and vibrant entrepreneurs with innovative ideas are imperative to give a quantum jump to the economic growth of Pakistan and in this connection FCCI is extending best possible facility to the new business starters.

13 Business Recorder
14. Worsening fiscal and external balances

The economy is presenting a mixed picture as the fiscal year is drawing to a close. Since the budget was presented to the Assembly six weeks ahead of the normal schedule, the data provided therein was not comparable to previous data points at this time. However, a clearer picture on economic performance is now emerging.
The national accounts committee meeting was held on 9 April 2018, which announced the revised growth rate for 2017-18 at 5.8% based on the information which, given the lag in compilation, could not be later than end-February at best. So this number is also non-comparable to estimates that are normally announced in the third week of May. Leaving this apart, the growth rate is the highest in last 13 years, which is a very promising sign. This is coupled with price stability as inflation, for the third consecutive year, was firmly below 4%. Investments have marginally increased from 16.1% to 16.4%. The consumer demand is very strong in almost all sectors of spending. Therefore, there are good bases to express optimism.






Business Recorder
15. Discrimination in gas, power tariff: APTMA urges CJP to take notice of pending cases

All Pakistan Textile Mills Association (APTMA) on Tuesday appealed to Chief Justice of Pakistan to provide them relief by taking notice of cases which were pending for three years regarding discrimination in gas and power tariff for the industry of Punjab.
Group Leader APTMA Gohar Ejaz said this while addressing a press conference along with Chairman APTMA Punjab Ali Pervaiz Malik after the APTMA Punjab general body meeting which was attended by over 100 members from Lahore, Faisalabad and Multan.

22 Business Recorder


Punjab supplementary budget

The Punjab Finance Minister Ayesha Ghous Pasha presented the supplementary budget for the ongoing fiscal year in the Punjab Assembly chaired by Speaker Rana Muhammad Iqbal amid protest by the Pakistan Tehreek-e-Insaf (PTI). The protest was not on the supplementary budget presentation but to allow PTI to move an anti-Nawaz Sharif resolution subsequent to his remarks on the 26/11/2008 Mumbai attack. This is unfortunate as the session was called specifically for the presentation of the Punjab supplementary budget and PTI would have been better advised to focus on critiquing it.


Business Recorder


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