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BUSINESS

BSaturday, 23 March, 2013

Pakistani businessmen will get multiple visas

for Indonesia. – Indonesian Consul General

Rossalis Rusman Adenan

M. SAAdAt S. CHeeMA

ChAIRMAn EPZA

INTRODUCTION

EPZA was established through an Ordi-nance IV of 1980 with the mandate to plan,develop and operate Export ProcessingZones in Pakistan. EPZA is an autonomousbody working under the Ministry of Indus-tries. It has a nine member Board of Direc-tors. EPZA is mandated for setting up EPZ’sin Pakistan. EPZA as a system has workedvery well in Pakistan especially in Karachi.As an already established, known and triedsystem for attracting investments and gener-ating exports from Pakistan; it can providealmost risk free economic uplift.ORGANIzATIONAL CONCepT

As an organizational concept, EPZA fa-cilitates, promotes, & provides business sup-

port to those who wish to setup their units inEPZ’s. Primarily it is a service-oriented or-ganization for promotion of export. EPZA it-self does not involve in physical business. OBjeCTIveS: Main objective of EPZA asan export promotion, service-oriented organ-ization is to improve industrialization throughcommercial & marketing activities. Providecountry-specific investment linkages on re-ciprocal basis. Reduce/simplifypaperwork/procedures and transfer of tech-nology through foreign investment. Follow-ing when added to our objectives, furtherclarifies EPZA’s profile as an organization:· Attract foreign capital· Setup export-oriented industries· Assist in acquiring sophisticated tech-

nology· Transfer of technology to Pakistan· generate employment & skill develop-

ment· Boost exports and foreign exchange

earning· Increase import of raw material from

PakistanINCeNTIveS/SUBSIDIeS

The incentives offered by EPZA are summa-rized below:

· Developed land on highly competitiverates for 30 years lease

· Well-defined security parameters en-closed in boundary wall

· Duty-free import of machinery, equip-ment and materials

· Freedom from National Import Regu-lations

· Exemption from Exchange ControlRegulations

· Repartition of capital and profits allowed· No Sales Tax on input goods including

electricity/gas bills.· Duty-free vehicles allowed under cer-

tain conditions· Domestic market available to the extent

of 20%. Exception may be available· Only EPZA is authorized to collect Pre-

sumptive tax @ 1% of FOB value at thetime of export of goods which would befinal tax liability.

· Obsolete/old machinery can be sold indomestic market of Pakistan after pay-ment of applicable duties and taxes

· Defective goods /waste can be sold indomestic market of Pakistan after pay-ment of applicable duties, maximum upto 3% of total value.

· EPZ units are allowed to supply goodsto custom manufacturing bonds.

· 30% export allowed to tariff area fromRisalpur Export Processing Zone.

FACILITIeS TO expORTeRS

· One Window operation with simplifiedprocedures

· All facilities like electricity, gas andwater are made available

· Medical facilities for the factory em-ployees are available

· Peaceful and environmentally protectedand pollution-free work area

· Round-the-clock security is available · Inter-unit transfer of finished goods

among exporting units allowed

· Easy access to sea and airports· Abundance of skilled and educated

workforce· Sub-contracting without limit on vari-

ety and quantity is allowed outside thezone as well as within the zone.

epz’S IN pAkISTAN

Over a period of time EPZ’s in Pakistanhave been established in different places/citiesof Pakistan focused basically to develop thenatural resources of these areas, provide jobopportunities to the locals and to pursue activeCSR requirements. Zones which are opera-tional include (l) Karachi (2) Risalpur (3) Sain-dak (4) Sialkot (5) Duddar (6) Tuwairqi SteelZones which are notified i.e. (i) gujranwala (ii)gwadar (iii) Reko Diq (iv) Khalifa CoastalLevIeS & CHARGeS

Karachi ZoneLicense basis Security De-positAnnual ground RentIndustrial plots@US$ 10 per sq. meter@ US$ 2.5 per sq. me-terTrading/warehouse@ US$ 30 per sq.meter@ US$ 3.5 per sq. meterRisalpurZoneIndustrial Plots@ US$ 6.5 per sq.meter@ US$ 0.50 per sq.meterWarehouse/Trading@ US$ 16 per sq.meter@ US$ 1.5 per sq. meterSialkot Zone-Ownership basis@ US$ 5.21 per sq. me-terNo AgRgujranwala ZoneOwnership@US$ 12.71 per sq. meterNO AgRImport &Export Analysis

YearImportExportBalance of Trade1983-84 to 192-93193.516206.2997%1993-94 to2002-03560.142792.20741%2003-04 to2011-121291.1852001.65555%

Average growth recorded in EPZA dur-

ing last five years was 11% growth rate in ex-port if compared with the incentives is less.In order to balance the genuine absence of theabove incentives, government / Managementof EPZA decided to offer following conceptsto EPZA investors: EPZA is assisting its in-vestors/exporters in managing supply chainissues along with strong and focused commu-nication/awareness thrust. Marketing and In-vestment Division of EPZA, with the help ofthe stakeholders is creating and pursuing pro-motional/facilitation objectives within andoutside the Zone. Work is in progress for cre-ating transparent, simplified rules and regu-lations to cover all regulatory functions as atrue one Window operation.epzA’S UNITS OpeRATION

The total 194 units are in operation inKEPZ, 05 units in Sialkot EPZ 5 and 02 unitsin Risalpur EPZ. Total 201 units are in oper-ation where as 19 units are closed due to var-ious reasons including litigations.

Export of trade goods from the EPZ is alsorestricted to only 11 items. Facility of 100%exports from EPZ to Pakistan (tariff area) hasnow been restricted to 20% since 2004 resul-tantly MNC’s withdrew their investment fromZone. Tax is payable @ 1.25% under DTREScheme anywhere in Pakistan, while EPZs in-vestors pay @ 1.5% on FOB value of exports.TOTAL INveSTMeNTS IN epz:US$

885.442 MILLION

KEPZUS$ 277.274 millionSEPZUS$166.052 millionREPZUS$ 49.484 mil-lionTSMLUS$ 320.000 millionDuddarEPZUS$ 72.630 million.

Soaring towards excellence

OPIC approves $95mfor wind powerproject in Pakistan

WASHINGTON: The Board of Directorsof the Overseas Private Investment Cor-poration (OPIC) has approved $ 95 mil-lion in financing for a wind power projectpoised to deliver much-needed electricityto Pakistan. The credit facility will helpbuild a 50-megawatt wind power plant insoutheastern Pakistan’s ghoro-Keti Ban-dar Wind Corridor designed to generate133 gigawatt hours of emission-free elec-tricity annually.Using general Electric Wind turbines, theSapphire Wind Power plant supports amutual U.S.-Pakistan goal to diversifyPakistan’s power generation beyond re-liance on high-priced fuel oil by tappingPakistan’s vast renewable energy poten-tial, said OPIC, which is the U.S. govern-ment’s development finance institution. “The provision of clean and reliable elec-tricity is an essential building block of anyeconomy,” said OPIC President and CEOElizabeth L. Littlefield. A recent study funded by the National Re-newable Energy Laboratory and the U.S.Agency for International Development es-timates that Pakistan possesses 132,000MW of potential installed wind capacity –virtually equal to the world’s entire in-stalled wind capacity for 2010. APP

KARACHI

ISMAIL DILAWAR

HAVINg injectedaround Rs 445 bil-lion into the bank-ing system Friday,the central bank hasannounced to bor-

row for the Ministry of Finance Rs 43 bil-lion more from the banks on March 26.

The State Bank, through conductingreverse repo open market operation,pumped Rs 444.700 billion into themoney market.

The bank bought the Market TreasuryBills and Pakistan Investment Bondsfrom the scheduled banks who offered 34bids worth Rs 485.700 billion but the reg-

ulator, or may be the bureaucrats in theMinistry of Finance, accepted 29 bids ofRs 444.700 billion.

The amount injected is at 8.98 per-cent per year.

According to an SBP spokesman, theregulator conducts reverse repo OMOswhen there is a liquidity crunch in themoney market. If this view is to be be-lieved the banks are short of cash.

But, an SBP circular issued on thesame day, Friday, says the Ministry of Fi-nance, through the central bank, would beborrowing Rs 43 billion from the appar-ently cash-strapped banks on March 26.

Of course to cater its budgetary need,the borrowed money would be raisedthrough auctioning the Ijara Sukuk ofthree-year maturity.

“Another goP Ijara Sukuk will beissued as per the structure and assets de-scribed,” said the SBP circular issuedFriday.

One may wonder the banks whichare so funds-starved today, on March22, would be able to be in a position tolend billions to the resources-con-strained government. This, however,has to be seen on March 26 by observ-ing the banks’ bid offers against the settarget of Rs 43 billion.

Such discrepancies give birth to sus-picions as there are some quarters believ-ing that the government had created a sortof debt circle under which it borrowsfrom the risk-averse scheduled bankshuge sums that the SBP injects into thesystem in the name of liquidity crunch.

SBP gives Rs 445b tocash-strapped banksto borrow back Rs43b

Mobile phoneoperators top inregistration ofcomplaints with PTA

ISLAMABAD: Cellular Mobile Operators(CMOs) topped in term of complaints regis-tered with Pakistan Telecommunication Au-thority (PTA) during 2012 which was 71%of total grievances of different nature.The regulator in its annual report revealedthat it had received more than 33,310 com-plaints from users against telecom operators,of which 99 percent complaints were ad-dressed and resolved.These consumer complaints were againstcellular operators, fixed line, wireless,broadband, LDIs and other telecom licensedoperators. The PTA said that 71% of totalreceived complaints were against cellularoperators with over 120 million subscribersbase while 27 per cent out of total com-plaints were against Pakistan Telecommuni-cation Company Limited (PTCL) which hasjust 3.5 million customers.During the period there was not a singlecomplaint registered with regulator againstLong Distance International (LDI) while 1% complaints against Internet ServiceProviders (ISPs) and 1% against WirelessLocal Loop (WLL).Regarding nature of complaints, the PTAsaid for misuse of service the share was 43.5%, for Mobile Number Portability (MNP)20.4 %, for illegal practices 17.3 %, poorcustomer services 2.9 %, provision of serv-ices 2.1 %, Value Added Services (VAS) andpackage 2.5 %, matter relating to billing 3.1%, verification issues 2.1 %, quality of serv-ice 3.6 % and others 2.6 %.Moreover, out of total 6,352 complaintsagainst country’s largest mobile phone oper-ator - Mobilink, the Authority addressed6,343 grievances, out of total 4,881 com-plaints against Telenor, 4,867 were ad-dressed, of the total 4,692 complaintsagainst Ufone, 4,682 were addressed, of thetotal 3,216 complaints against Warid, 3,205were addressed and of the total 2,491against Zong, 2482 were addressed.It said majority of the complaints againstPTCL during the period were for faulty anddisruption in services. APP

The credit facility will help

build a 50-megawatt wind

power plant in southeastern

Pakistan’s Ghoro-Keti Bandar

Wind Corridor designed to

generate 133 gigawatt hours

of emission-free

electricity annually

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BUSINESSSaturday, 23 March, 2013

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERBata (Pak) 1300.00 1325.00 1325.00 1325.00 25.00 50Philip Morris Pak. 270.00 283.50 274.00 283.01 13.01 15,600MithchellsFruit 300.00 315.00 302.50 312.50 12.50 1,100Pak Services 187.90 197.29 197.00 197.15 9.25 600Sapphire Textile 253.79 266.39 263.00 263.00 9.21 300

Major LosersSanofi-Aventis Pak 380.00 361.00 361.00 361.00 -19.00 200Indus Motor CoXD 306.90 303.00 292.20 292.20 -14.70 800Fazal Textile 255.51 242.74 242.74 242.74 -12.77 200Sunrays Textile 270.00 270.00 256.50 263.25 -6.75 5,500Colgate Palmolive 1750.00 1800.00 1740.00 1745.00 -5.00 450

Volume Leaders

Wateen Telecom Ltd 3.21 3.77 3.15 3.59 0.38 16,233,500TRG Pakistan Ltd. 7.28 7.68 7.28 7.46 0.18 15,115,500D.G.K.Cement 68.96 69.80 67.90 69.26 0.30 11,513,000Engro Corporation 131.20 131.55 127.77 129.32 -1.88 11,329,700Maple Leaf Cement 17.78 18.38 17.75 18.10 0.32 11,113,000

Interbank RatesUSD PKR 98.2202GBP PKR 149.4028JPY PKR 1.0408EURO PKR 126.9791

ForexBUY SELL

US Dollar 99.20 99.45 Euro 127.83 128.06 Great Britain Pound 149.81 150.04 Japanese Yen 1.0387 1.0495 Canadian Dollar 95.73 97.43 Hong Kong Dollar 12.51 12.77 UAE Dirham 26.85 27.10 Saudi Riyal 26.33 26.55

Visa to launch VisaSignature premium card in Middle East KARACHI: Visa, the leading global paymentstechnology company, recently announced the launchof its exclusive Visa Signature premium card in theMiddle East region. The newly-introduced premiumcard focuses on providing an affluent segment ofcustomers with attractive and exclusive travel,dining and lodging privileges, offered both locallyand globally. Offering a superior way to pay, withpreferential benefits that enhance the individualquality of life, the Visa Signature premium cardcomes with a wide array of rewards, includingpriority customer service and an on-call conciergefacility, comprehensive insurance coverage andemergency travel services, as well as specialprivileges designed to enrich the card holder’slifestyle. The benefits offered by the new VisaSignature card span four categories – from dining toindulgence to lifestyle to travel, and offers access toover 30 VIP lounges at airports around the world.Kamran Siddiqi, General Manager for Visa in MENA,said: “The launch of the Visa Signature card isanother important step in our ongoing strategy tolaunch the type of premium products that areespecially popular in this region. PR

PTCL sets up medicalcamp for participants of Sports Week

ISLAMABAD: Pakistan TelecommunicationCompany Limited (PTCL) has set up a medicalcamp through which it is providing free healthcareto more than 3000 children participating in theAnnual Sports Week being held from March 19 -24at Sports Complex Islamabad. PTCL physiciansand dentists, aided by necessary paramedicalstaff and ambulance service, are providing thechildren with OPD cover, updating of medicalrecord, dental examination, blood grouping andscreening and emergency services including minorsurgical procedures at the medical camp. Syed

Mazhar Hussain, PTCL Senior Executive VicePresident (SEVP) HR said at the occasion,“Committed to uphold the highest standards ofcorporate ethics and social responsibility, PTCLactively contributes towards the society byextending its services for communitydevelopment. Our focus is not to only enable ouremployees to serve the organization proficiently,but more importantly encouraging them tocontribute genuinely towards development of thesociety and its people.” An extension of PTCL’svision of supporting the community, the camp hasbeen set up in collaboration with Pakistan SweetHomes to provide free healthcare and medicalservices to the children. A project of PakistanBait-ul-Mal (PBM), these Sweet Homes providequality housing and education to thousands oforphaned children across Pakistan. PR

Experts urge policy for improving neo-natal health

ISLAMABAD: Speakers stress the importance

of better uptake of research-based evidence to

improve in policies and practices related to

maternal and newborn health in Pakistan. The

Second Annual Conference of the Maternal and

Newborn Health Programme - Research and

Advocacy Fund (RAF) was held on Thursday,

with the theme ‘Bridging the Gap – Evidence for

Policy and Practice’. RAF is a grant fund of the

Department for International Development

(UKaid) and Australian Agency for International

Development (AusAID). Managed by the British

Council, RAF funds research and evidence-

based advocacy to improve practices and

policies related to maternal and newborn

health, to help Pakistan achieve Millennium

Development Goals 4 and 5. Findings and

lessons from projects funded by RAF were

presented. Sessions focussed on the costs and

financing of maternal and newborn health in

Pakistan, socio-economic and cultural factors

affecting maternal and newborn health, and

engaging with civil society to improve health

outcomes.

Nestlé brings $104minvestment inSheikhupura factorySHEIKHUPURA: José Lopez, Nestlé Executive Vice

President in charge of Operations, concluded his

three-day visit to Pakistan by inaugurating a USD

104 million EGRON (Milk Powder Drying Facility)

Project at the Sheikhupura factory. Nestlé is the

largest food and beverages company in the world

and the Sheikhupura dairy, juice and water factory

embodies Nestlé’s increased investment in

Pakistan. As part of its three-year plan to expand

the production capacity in the country, Nestlé has

invested USD 148 million over the past two years in

various factory expansion projects to meet rising

consumer demands. During his visit to the new

factory facilities in the heart of Punjab’s milk

district, Sheikhupura, Mr. Lopez said, “Pakistan is

an important growth market for us and we are

dedicated to meet the growing demands of our

consumers. Major capacity increases, such as the

one just inaugurated in Sheikhupura, allow us to

constantly upgrade our facilities to the latest

standards in global technology.” PR

SRE holds workshop on energy crisis

LAHORE: To step ahead of MOU that was agreedbetween SRE and their partners Sino-German JVLinuo- Paradigma, SRE started a Joint BusinessVenture of Industrial Solar Water Heating Systemunder the banner of Siddiq Shafi Group with thename of Shafi Renewable Energy in collaborationwith Sino-German JV Linuo- Paradigma. SREarranged a workshop on “Potential of industrialsolar thermal technology in Pakistan” keeping inview the serious energy crisis in Pakistan at LCCIon 21st of March, 2013. This workshop highlightedthe utmost need of energy in the region and how toovercome the energy crisis in the country alongwith the topic of energy conservation. Pakistan iscurrently facing energy crisis and is in dire need tocome up with a solution. Keeping in mind the fact

mentioned above, SRE with Sino-German JV Linuo-Paradigma has planned to create alternate energyresources for industrial units in Pakistan.Muhammad Musaddiq, CEO, SRE shared that Selfsufficiency is the only key to excel economy andcost to be compatible with international marketsand by installing these solar water heating systemthat can heat industrial process water up to 60degree, Tanneries, Textile, Paper, Pharmaceutical,Food & Beverage and Dairy industries can be thedirect beneficiaries of Solar water heating systemsto reduce their production costs and a contributiontowards Eco Friendly environment. PR

TDAP to increase trade ties with RussiaKARACHI: TDAP has planned to increase trade tieswith Russia. On Wednesday, Mr. Abid Javed Akbar,Chief Executive, Trade Development Authority ofPakistan had a meeting with Mr. Andrey Demidov,Consul General, Consulate General of RussianFederation, Karachi in the office of TDAP. During themeeting booth sides agreed to the need ofincreasing trade activity between the two countries.Chief Executive, TDAP Mr. Abid Javed Akbarinformed the Consul General about the activitiescarried out by TDAP in Russia. TDAP participates infour (4) specialized exhibitions related to textilesand food sector in Russia. As a result of theseactivities, exports of Pakistan in these sectors hasstarted registering a positive growth. ChiefExecutive, TDAP requested the Consul General tohelp the Pakistani exporters in connection withmajor trading and buying houses in Russia. PR

WAPDA holds seminar on World Water Day LAHORE: The Engineers Institution Pakistan (IEP) incollaboration with the Pakistan Water and PowerDevelopment Authority (WAPDA) and Institute ofElectrical & Electronics Engineers Pakistan (IEEEP)today organised a seminar here at WAPDA House inconnection with World Water Day to highlightsignificance of water resources and the challengesfaced by the water sector in Pakistan. The seminarpresided over by WAPDA Member (Water) HasnainAfzal, was attended by a large number of engineersand water sector experts. Referring to the fast-decreasing per capita water availability in Pakistan,which has come down from 5650 cubic meter in 1947to about 1000 cubic meter in 2013 due to rapidincrease in population and natural phenomenon ofsedimentation in water reservoirs, WAPDA Member(Water) said that the situation can only be improvedby enhancing water storage capacity in the country. PR

CORPORATE CORNER

02

B

PPP believes in the politics of

reconciliation for the solution of all

issues. – Qamar Zaman Kaira

KARACHI

STAFF REPORT

ThE country’s totalexports stood at$15.9 billion in8MFY13 com-pared to $15.1 bil-lion last year. The

textile exports being a major contrib-utor to the total exports of the country,the sector contributed 53% amountingto 8.5 billion in dollar terms. The ex-ports of the sector posted a growth of6.55% during 8MFY13.

“Within textile sector, major con-tribution came from exports of cottonyarn, increasing by 31.3%YoY to $1,438 million fuelled by increased de-mand from China,” said InvestCapanalyst Abdul Azeem. Similarly, thecotton cloth, registered 11.8%YoYgrowth in dollar terms, he added.

The exports from the latter in-creased to $ 1,717 million in8MFY13 despite the decline of 4.6%in the quantity of cotton cloth. More-over, the readymade garments andknitwear segment surged by8.76%YoY to $ 1,168 million and2.3%YoY to $ 1362 million respec-

tively. The main reason behind thisgrowth was an upsurge of demandfrom the US and European countries.

“We estimate textile exports to be$ 13 billion for FY13 as against thetarget of $ 16 billion, the latter can beattributed to the shortage of electricityand the uncertain law and order situ-ation,” the analyst said.

Nevertheless, he said, textile ex-ports expected to post an increase of5% in FY13 over last year, the localtextile sector, being export oriented is

expected to benefit from such an in-crease. “Our textile universe, consist-ing of Nishat Mills (NML) and NishatChunian (NCL) is expected to registeran expansion of 41% in its bottom-line,” Azeem said. The overall importsdeclined by 2.4%YoY to $ 29.07 bil-lion in 8MFY13. The major importinggroup was the petroleum group, com-prising of 34% of total imports.Whereas Petroleum imports declinedby a minimal 2.1%YoY to $ 9.79 bil-lion during 8MFY13, imports of petro-

leum products dropped by 4.2%YoYto 6.2 billion amid 6.3%YoY fall ofquantity imported to 8.7 million MT.

however, petroleum crude importrecorded an increase, both in dollarterms and quantity, rising by3.8%YoY (to $ 3.6 billion) and10.2%YoY (to 4.58 million MT).Such a trend was led by an increasingutilization of local refineries capacitydue to an increasing crude oil demandin the country. During 8MFY13, theper barrel cost of crude oil (Arablight) was down by 0.7%YoY.

“With our expectations of crudeoil prices to remain near $ 110, anyupsurge in the import of the commod-ity is expected to be on the back of un-availability of gas which could furtherwiden the trade gap,” said the analyst.

going forward, the analyst said,improved performance on the exportfront due to rupee depreciationagainst the dollar, which is anticipatedto reach 9% YoY by year end, thusmaking local exports cheaper.

Moreover, resumption of textileexports to EU on concessionary tariffalong with exports of yarn and greycloth to China were both expected tofare well for local textile exports.

Trade balance at mercyof textile exports

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