MULTAN, June 7th;Political leaders of South Punjab have criticized the World Bank and the IMF dictated federal budget saying it would make the common man to further buckle under the burden of price hike and said the strategy to meet deficit worth Rs700 billion with the borrowings, would lead the national economy to slide down the steep.They stressed the need f adoption of the inexpensive energy resources that the ends relating poverty alleviation and employment opportunities could be achieved, he believed.PML-N's Senior Vice President Makhdoom Javed Hashmi has said the federal budget would further ramp up the burden of price hike on the public and resultantly, the problems faced by the poor, would snowball.
The PML-N leader said the federal government did nothing positive and concrete to bring the economy back on track in actuality, adding the betterment could be infused into national economy by acting on strategy of self-reliance sans loans.
Hashmi said apparently government has not announced imposition of any new taxes on food items which may help stabilization in their prices, however previous experiences bears testimony that the possibility of new taxes in the near future cannot be ruled out.He said that levying of 10 to 15 percent federal excise duty on electronic items, including Deep freezer, refrigerators and air conditioners, may affect a substantial section of the population, as these items have become household necessities with the passage of time and their increasing rates would have harmful impact on their daily sales. He opined that government had a better alternative of revenue generation by taxing items used by opulent segment of the population.Rana Mehmood-ul-Hassan,MNA and chairman of National Assembly's standing committee on ports and Shipping said the budget was balanced, adding that the government had tried to pull the country out of the financial crisis.He said the government had accepted the PML's stance on the Value Added Tax and had decided to reform the General Sales Tax system from October 2010. He hoped the budget would bring change in the country if all the announced measures were implemented. Financial experts in South Punjab on Sunday termed the 2010-11 budget a “wish list”, saying it lacks all production-oriented objectives as it is centred on deficit-controlling tactics, with the only positive being the relief provided to government employees. Pakistan Democratic Party Chief Nawabzada Mansoor Ahmed Khan said the budget is dictated by the World Bank and the IMF, and can hardly be called 'people-friendly'.Without expanding the tax base, the government can never generate enough revenue needed to run the country smoothly. It is important to provide extensive subsidies to the poor and downtrodden segment of the population.He added. Traders from Multan, Dera Ghazi Khan and Bahawalpur expressed mixed reactions on Federal 2010-11 budget and termed the budget “a big disappointment” for both trade and industry. The finance minister has failed to come up with any solid plans for the economic revival of the country they said. Khawaja Muhammad Shafiq Chairman of Pakistan Traders Alliance, Khalid Mehmood Qureshi President of Small Traders Alliance,and Malik Nazir Ahmed Awan have also expressed their dissatisfaction with the budget, saying it has brought no visible measures for the revival of the industry and economy and no actions to control the inflation rate, which had surpassed the 12 percent mark.
The PML-N leader said the federal government did nothing positive and concrete to bring the economy back on track in actuality, adding the betterment could be infused into national economy by acting on strategy of self-reliance sans loans.
Hashmi said apparently government has not announced imposition of any new taxes on food items which may help stabilization in their prices, however previous experiences bears testimony that the possibility of new taxes in the near future cannot be ruled out.He said that levying of 10 to 15 percent federal excise duty on electronic items, including Deep freezer, refrigerators and air conditioners, may affect a substantial section of the population, as these items have become household necessities with the passage of time and their increasing rates would have harmful impact on their daily sales. He opined that government had a better alternative of revenue generation by taxing items used by opulent segment of the population.Rana Mehmood-ul-Hassan,MNA and chairman of National Assembly's standing committee on ports and Shipping said the budget was balanced, adding that the government had tried to pull the country out of the financial crisis.He said the government had accepted the PML's stance on the Value Added Tax and had decided to reform the General Sales Tax system from October 2010. He hoped the budget would bring change in the country if all the announced measures were implemented. Financial experts in South Punjab on Sunday termed the 2010-11 budget a “wish list”, saying it lacks all production-oriented objectives as it is centred on deficit-controlling tactics, with the only positive being the relief provided to government employees. Pakistan Democratic Party Chief Nawabzada Mansoor Ahmed Khan said the budget is dictated by the World Bank and the IMF, and can hardly be called 'people-friendly'.Without expanding the tax base, the government can never generate enough revenue needed to run the country smoothly. It is important to provide extensive subsidies to the poor and downtrodden segment of the population.He added. Traders from Multan, Dera Ghazi Khan and Bahawalpur expressed mixed reactions on Federal 2010-11 budget and termed the budget “a big disappointment” for both trade and industry. The finance minister has failed to come up with any solid plans for the economic revival of the country they said. Khawaja Muhammad Shafiq Chairman of Pakistan Traders Alliance, Khalid Mehmood Qureshi President of Small Traders Alliance,and Malik Nazir Ahmed Awan have also expressed their dissatisfaction with the budget, saying it has brought no visible measures for the revival of the industry and economy and no actions to control the inflation rate, which had surpassed the 12 percent mark.
MULTAN, June 7th:Traders of Southern Punjab have urged upon the Federal and provincial Governments to convene a meeting of traders to resolve their problems so that 8 million small traders could keep continue their trade activities in free and fair manners.Ten power plants which are lying closed be reactivated instead of Rental Power plants to bridge the gap of demand and supply of electricity.Addressing a joint press conference in Multan Press Club on Monday Khawaja Muhammad Suleman Siddiqui, Central Senior Vice president of Markazi Anjuman Tajiran Pakistan, Malik Nazir Ahmed Awan, Central Chairman of Markazi Anjuman Tajiran, Muhammad Akhtar Butt, President of Pakistan Chemists & Druggists Association (PCDA) Shaikh Akram Hakim , Soofi Abdul Rehman Bhatti, Dr. Mazhar Nawaz, Muhammad Idrees Butt, Arif Fasih-ullah, Shaikh Muhammad Rauf, President of Anjuman Tajiran,Shaikh Suhail Akhtar, Haji Shoaib Mumtaz, and Javed Akhtar Khan vowed not to comply with the orders of the Government to shut their business concerns at 0800 PM and payment of Value Added Tax (VAT) from October Ist,2010.They urged upon the PEPCO to withdraw its schedule of power shut-down for two hours from 0800 to 1000 PM.They said that Government wanted to keep the traders and the entire nation in the fetters of VAT for the pleasures of the IMF/ World bank. They rejected the one percent increase in the General sales tax describing it harmful to national economy and said that 15 percent General sales tax be introduced. Traders also opposed the levy of 10 percent Federal Excise Duty on the sales of Deep-freezers, Air-conditioners and other electronic appliances.Traders of Southern Punjab also opposed the 0.3 percent withholding tax on the transaction of amount, travel cheques,Pay orders, Demand Drafts etc.
The business community of the South Punjab has expressed dissatisfaction over the federal budget for the next fiscal year 2010-11 and said it is ambigious and unfriendly to business, trade and industry. Terming the federal budget for 2009-10 as manipulation of words and figures, the business community and industrialists have rejected it and lashed out at the federal government for not announcing an industry friendly budget.These were the views of the business community after Finance Advisor Dr Abdul Hafeez Shaikh presented Federal Budget for 2010-11 with a total outlay of Rs 3.259 trillion before the parliament on Saturday.Malik Asrar Ahmed Awan Multan Chamber of Commerce and Industry (MCCI) said that the budget is totally politically benefited statements and is not going to benefit trade and industry.President MCCI said that some steps are good but showing his concerns on the tax revenue that is targeted at Rs 1.78 trillion out of which the Federal Board of Revenue would collect Rs 1.667 trillion, about 9.8 percent of GDP, he said that from where it would be achieved. He said that people were afraid of the new tax system called Value Added Tax (VAT), and the government very smartly changed it to term 'reform GST'. He was of the view that the basically GST and VAT are not different tax systems and the government just changed its name to VAT.He opposed the levy of 0.3 percent withholding tax on the cash transaction, pay order, pay draft and said that it would badly hit the trade and It would be be another shape of turnover tax.President MCCI said "the government should have allocated a huge amount for granting incentives to the industrial sector, farming sector or other productive sectors that generate jobs and capital."MCCI Chief said that most of budget proposals have not been considered as the government has increased withholding tax against our proposals. However, the continuation of zero-rated sector is a good step by the government. He was of the view that continuation of regulatory duty on imports would prove fatal for many industries in the provided environment of doing business.Awan said that the government has increased the Federal Excise Duty on some electronic items including air conditioners and refrigerators, which would decrease their legal import and increase massive smuggling to give huge losses to the government's revenue.In his reaction to the annual budget, Khawaja Muhammad Usman Senior Vice President said apparently government has not announced imposition of any new taxes on food items which may help stabilization in their prices, however previous experiences bears testimony that the possibility of new taxes in the near future cannot be ruled out.He said that levying of 10 to 15 percent federal excise duty on electronic items, including Deep freezer, refrigerators and air conditioners, may affect a substantial section of the population, as these items have become household necessities with the passage of time and their increasing rates would have harmful impact on their daily sales.
Replying to a query, he opined that government had a better alternative of revenue generation by taxing items used by opulent segment of the population, however its choice of taxing electronic items clearly indicates that it has pursued a safer policy - as helpless consumers of electrical appliances can hardly vent their outrage against the arbitrary levying of heavy taxes.President of Tax Bar Association Asad Chaudhry said the budget is dictated by the World Bank and the IMF, and can hardly be called 'people-friendly'.Without expanding the tax base, the government can never generate enough revenue needed to run the country smoothly. It is important to provide extensive subsidies to the poor and downtrodden segment of the population.He added. Traders from Multan, Dera Ghazi Khan and Bahawalpur expressed mixed reactions on Federal 2010-11 budget and termed the budget “a big disappointment” for both trade and industry. The finance minister has failed to come up with any solid plans for the economic revival of the country they said. Khawaja Muhammad Shafiq Chairman of Pakistan Traders Alliance, Khalid Mehmood Qureshi President of Small Traders Alliance,and Malik Nazir Ahmed Awan have also expressed their dissatisfaction with the budget, saying it has brought no visible measures for the revival of the industry and economy and no actions to control the inflation rate, which had surpassed the 12 percent mark.Rana Mehmood-ul-Hassan,MNA and chairman of National Assembly's standing committee on ports and Shipping said the budget was balanced, adding that the government had tried to pull the country out of the financial crisis.He said the government had accepted the PML's stance on the Value Added Tax and had decided to reform the General Sales Tax system from October 2010. He hoped the budget would bring change in the country if all the announced measures were implemented. Financial experts in South Punjab on Sunday termed the 2010-11 budget a “wish list”, saying it lacks all production-oriented objectives as it is centred on deficit-controlling tactics, with the only positive being the relief provided to government employees.Prof .Dr.Shahnawaz Malik of BZU said no major project had been announced to tackle the issues of load shedding and terrorism, the two biggest challenges confronting Pakistan. The one promising feature of the budget is the 50 percent salary increase for government employees, however, only a “lollypop” has been given to the pensioners with a miserly 15 to 20 percent increase, he added. Renowned economist Dr.Karamat Ali termed the commerce minister’s budget speech “a political one”, saying it seemed that the objective of the budget was not to promote production but to manage deficits. He said a small 10 percent cut in the salary of a huge cabinet members was not appropriate. He said the Value Added Tax was not practical for a developing country like Pakistan. He said that former finance minister also vowed to reduce non-development expenditures, but no serious efforts were made to this end.He bitterly criticised the ending of critical subsidy on Atta and, pulses, rice and tea at utility stores. In other words, no more ‘affordable’ basic food items for the needy poor who would line the stores to save every precious rupee. Maybe they were better off as long they had remained forgotten, to quote the minister.According to economic experts, the increase in GST will further fatten the already killing domestic electricity and gas bills. Meanwhile, the government has reduced the income tax collected along with the electricity monthly bill from the industrial and commercial consumers from 10 to five per cent, a move aimed more at benefiting the relatively affluent segment of the society. In another surprise move, the government has also doubled the federal excise duty (FED) on gas from five per cent to 10 per cent. This translates into a Rs10 per MMBTU increase in FED. This too would have an adverse inflationary impact on gas bills across the country, according to economic experts.
Replying to a query, he opined that government had a better alternative of revenue generation by taxing items used by opulent segment of the population, however its choice of taxing electronic items clearly indicates that it has pursued a safer policy - as helpless consumers of electrical appliances can hardly vent their outrage against the arbitrary levying of heavy taxes.President of Tax Bar Association Asad Chaudhry said the budget is dictated by the World Bank and the IMF, and can hardly be called 'people-friendly'.Without expanding the tax base, the government can never generate enough revenue needed to run the country smoothly. It is important to provide extensive subsidies to the poor and downtrodden segment of the population.He added. Traders from Multan, Dera Ghazi Khan and Bahawalpur expressed mixed reactions on Federal 2010-11 budget and termed the budget “a big disappointment” for both trade and industry. The finance minister has failed to come up with any solid plans for the economic revival of the country they said. Khawaja Muhammad Shafiq Chairman of Pakistan Traders Alliance, Khalid Mehmood Qureshi President of Small Traders Alliance,and Malik Nazir Ahmed Awan have also expressed their dissatisfaction with the budget, saying it has brought no visible measures for the revival of the industry and economy and no actions to control the inflation rate, which had surpassed the 12 percent mark.Rana Mehmood-ul-Hassan,MNA and chairman of National Assembly's standing committee on ports and Shipping said the budget was balanced, adding that the government had tried to pull the country out of the financial crisis.He said the government had accepted the PML's stance on the Value Added Tax and had decided to reform the General Sales Tax system from October 2010. He hoped the budget would bring change in the country if all the announced measures were implemented. Financial experts in South Punjab on Sunday termed the 2010-11 budget a “wish list”, saying it lacks all production-oriented objectives as it is centred on deficit-controlling tactics, with the only positive being the relief provided to government employees.Prof .Dr.Shahnawaz Malik of BZU said no major project had been announced to tackle the issues of load shedding and terrorism, the two biggest challenges confronting Pakistan. The one promising feature of the budget is the 50 percent salary increase for government employees, however, only a “lollypop” has been given to the pensioners with a miserly 15 to 20 percent increase, he added. Renowned economist Dr.Karamat Ali termed the commerce minister’s budget speech “a political one”, saying it seemed that the objective of the budget was not to promote production but to manage deficits. He said a small 10 percent cut in the salary of a huge cabinet members was not appropriate. He said the Value Added Tax was not practical for a developing country like Pakistan. He said that former finance minister also vowed to reduce non-development expenditures, but no serious efforts were made to this end.He bitterly criticised the ending of critical subsidy on Atta and, pulses, rice and tea at utility stores. In other words, no more ‘affordable’ basic food items for the needy poor who would line the stores to save every precious rupee. Maybe they were better off as long they had remained forgotten, to quote the minister.According to economic experts, the increase in GST will further fatten the already killing domestic electricity and gas bills. Meanwhile, the government has reduced the income tax collected along with the electricity monthly bill from the industrial and commercial consumers from 10 to five per cent, a move aimed more at benefiting the relatively affluent segment of the society. In another surprise move, the government has also doubled the federal excise duty (FED) on gas from five per cent to 10 per cent. This translates into a Rs10 per MMBTU increase in FED. This too would have an adverse inflationary impact on gas bills across the country, according to economic experts.
MULTAN,June 6th: Bangladesh High Commissioner Designate Mehfooz-u-rehman has said Bangleshi Cricket team was not reluctant to visit Pakistan and it was ready to play in Pakistan and hoped that both countries would promote the healthy sport activities in two brethern countries. Talking to newsmen on Sunday at Multan Press Club the high commissioner said that Bangladesh wanted to inroduce a ferry service between Karachi and Chittagong to promote the bilateral trade and we had agreed in SAARC conference to develop the free trade among the member countries and relaxing the visa restrictions.He disclosed that Bangladesh Government was actively considering a proposal to establish its consulate in Multan which is an historical and ancient city of the world.He said that Multan is a city of Soofis, spiritual saints like Bahauddin Zikiriya, Shah Rukn-i-Alam, Hazrat Moosa Pak Shaheed, Shah Shams Sabzwari who had preached the message of peace, love and tolerance. Mehfooz said that people of Bangladesh and Pakistan have a common past and collective efforts are needed to cement bilateral relations and exchange of delegations is of vital importance in this regard.He said in order to promote economic and trade relations, Bangladesh and Pakistan can launch joint ventures for mutual benefit. He said intelligentsia of both the countries should also find out ways and means for further strengthening of relations between both the countries. He said democracy aimed at public service, therefore, in addition to strengthening the democratic institutions, measures should also be taken for the solution of people’s problems. Ishtiaq Ahmed threw light on the achievement of Bangladesh and also expressed best wishes for the progress and development of Pakistani people.
MULTAN, June 5th: More than 200 traders organisation have announced to close their shops and markets at 0900 PM instead of 0800 and not to pay any fine to any authority besides rejection the value added tax describing it unjust,unfair and cruel.It was announced at a traders convention chaired by Khawaja Suleman Siddiqui and addressed by Haji Maqsood Butt, President of All Pakistan Anjuman Tajiranb, Abdul Razzaq Bubbar, Secretary GEneral, Mehboob Sirki, Shaikh Akhtar (D.G.Khan)Shaikh Abbas Ahmed (Mailsi), Malik Nazir Ahmed AWan Chairman of All Pakistan Anjuman Tajiran Cantonment boards, Khaliq Qandeel Sindhu, Secretary General of All Pakistan Power Looms Association,Muhammad Akhtar Butt, President of Pakistan Chemists & Druggists Association Punjab, Murid Hussain Gashkori, Zain-ul-abideen Motiwalay, Dr.Mazhar Nawaz Khan.They said that Government had shut our business at 0800 PM but did not provide any relief to other consumers. Instead the duration of loadshedding was increased.They said that customers visit the markets after sunset due to scorching heat in day time. All the Bazars and Markets look deserted till 0700 PM Soon after Maghrib prayers,we were forced to close our business and Magistrates were imposing fines Rs.1000 to 2000 on the traders.They decided to resist against the Government and administrate if the value added tax was imposed and they were forced to close our business at 0800 PM. They said the strong arm tactics of the police and administration to get the shops closed were indecent.“When we lodged complaints about rising street crime in some markets few days back the police high-ups said the force was too occupied in manning the security posts, but now scores of policemen are available to roam around markets,” they added the traders’ leaders said there was no let-up in the power cuts despite the two-day holiday and closure of business centres early in the evening. They said load shedding had badly disturbed their life.They said that imposing the VAT at a time when business activities had grinded to a halt would be tantamount to rubbing salt into their wounds.
MULTAN,June 4th: Over 3.5 million tyres worth Rs.10 billion are being smuggled from India,China, Russia, Japan and Italy via Afghanistan.A number of markets are doing business of smuggled tyres in Dera Ghazi Khan, Multan, Lahore, Ruknee, Dera Ismail Khan.The annual demand of tyres in the domestic market is over 6 million but the local industry is operating with production capacity of only 2.5 million tyres due to influx of smuggled and under-invoiced foreign brands.The smuggling of tyres severely damaging the indigenous tyre industry. Due to lesser production of tyres, these are to be imported into the country, which invites mafia to take control of the trade process. In the guise of Afghan Transit Trade (ATT) the local industry was being marginalised as the traders all across Pakistan bought those smuggled tyres as they cost less. The duty was also evaded by under-invoicing by the local officials. The importers misinform the customs authorities about the actual price by stating it very low, thus evading tax by complicity of the tax authorities.The government should not decrease the duty or tax on tyres. On the contrary, the government should protect the indigenous industry like India. It is worth mentioning that the country is losing billions of rupees in foreign exchange and billions in revenue as the local market currently is flooded by brands coming from all over the world including China, which find their way into Pakistan primarily through under-invoicing and smuggling. An official of the industry said that economic downturn has also taken its toll as the manufacturers planned and executed huge capacity expansion in 2005-06, when it was projected that the country would be producing over half a million cars by 2010-11. He said it is incomprehensible as to why the massive under-invoicing is tolerated by the government. "It is just a matter of finding the right price through Internet," he said and added that the export price fetched by local tyres is another indicator of globally competitive rates.He said that smuggling is conducted mainly due to loopholes in the ATT. He said that there are no quantitative curbs on imports of tyres into Afghanistan although the authorities are fully aware that these imports are meant for Pakistani markets.The population of Afghanistan is less than 20 percent the population of Pakistan while 63 percent of its population lives under poverty levels. Yet its imports are completely disproportionate to its genuine needs. He urged the government to plug the massive loopholes in ATT if it desires the industry to survive, grow, create more jobs, pay more taxes and export goods to earn foreign exchange.
MULTAN,June 3rd:The Pakistan State Oil (PSO) is facing a distinct possibility of default which might disable it from paying its dues to the oil refineries, and for imports, and has warned the Pakistan International Airlines (PIA) that it would suspend fuel supply from July 1, in case of continued default, it has learnt.According to sources, PSO management in a letter sent to PIA Managing Director (MD) Captain Muhammad Aijaz Haroon stated that due to cash flow problems, PSO's position has gone from bad to worse. "We are facing tremendous pressure of default of payments to refineries and in imports of various products such as petrol, high speed diesel (HSD), furnace oil and jet fuel for the entire country which is most essential to keep the wheels moving," the letter said.PSO management has drawn attention of PIA MD towards various correspondence in which it had committed to clear the dues by June 30, 2010. "Since PSO and PIA have worked together hand in hand for decades and therefore I request you to clear all dues by June 30, 2010 so that PSO can maintain uninterrupted fuel supplies," PSO management said adding that "we have been accommodating the national career as much as possible but now in current scenario we are not in a position to accept your further request."Please note that PSO will have no other option but to suspend the supplies from July 1, 2010 in case the outstanding amount along with financial charges is not cleared," PSO management said.While referring to letter dated March 1, 2010 addressed to Director Finance PIAC, PSO lamented that the schedule of payment by PIA has regretfully not been followed. "It is also important to note that in the said payment schedule we also advised that the actual outstanding payment was Rs 1.822 billion with a later payment surcharge of Rs 884 million as against Rs 1.660 billion mentioned by you in your letter dated February 19, 2010,"PSO adds.As on June 2, PSO receivables from different clients including power sector were Rs 127.8 billion which include: Wapda Rs 41.14 billion, Hubco Rs 48.09 billion, Kapco Rs 25.11 billion, OGDC Rs 396 million, KESC Rs 1.72 billion, Power Holding co Rs 1.3 billion, price differential claims (PDC) on imported HSD Rs 1.382 billion, PDC on imported PMG Rs 2.93 billion, PDC under gas load management plan (KESC) winter 2010 Rs 2.409 billion and PDC under gas load management plan (KESC) summer 2010, Rs 1.167 billion.PSO payables to local refineries as well as international fuel suppliers are Rs 120.18 billion which include; Rs 31.45 billion to Parco, Rs 12.35 billion to PRL, Rs 9.34 billion to NRL, Rs 18.24 billion to ARL and Rs 4.84 billion to Bosicor.PSO is to make payment of Rs 43.47 billion on account of L/C to KPC and fuel suppliers.
MULTAN,June 3rd: National Commodity Exchange Limited (NCEL) will be liable to face contempt of Shariat Court if it announces hedge trading in cotton unilaterally, All Pakistan Textile Mills Association (APTMA) and Pakistan Cotton Ginners Association (PCGA) said on Wednesday.APTMA Vice Chairman (South zone), Saleem Shahzad, said that if hedge trading in cotton recommences, it could only be done on the floor of Karachi Cotton Exchange (KCE).On May 27 2010, the Shariat Court in Islamabad, on petitions by APTMA and PCGA, had granted six months period to stakeholders for comments whether hedge trading should be started at KCE and is against the Islamic laws or not. The APTMA and PCGA opposed the opening of cotton hedge trading.Saleem said cotton marketing involves a tremendous business risk. It was, therefore, necessary that there should be some form of price insurance to reduce the risk of volatile fluctuations in prices. The utility of the hedge trading in cotton has been re-affirmed by three Cotton Hedge Enquiry Committees set up by the Government in 1953, 1965 and 1971.
He said the KCE has full and comprehensive infrastructure and adequate by-laws for hedge trading in cotton, inclusive of storage capacity of cotton bales at Karachi, and 320 licensed cotton brokers who have their own offices at the Cotton Exchange to facilitate trading of cotton with the ginners, spinners and exporters. A PCGA member, Shakeel Ahmad, said NCEL on the other hand, has no by-laws or described procedures to tackle with the hedge trading in cotton. “In case of any default in hedge trading committments, who will take up the responsibility to bear loss or to compensate for the loss”, Ahmad added.He said that KCE is the member of the International Cotton Association (ICA), which is the world’s leading international cotton trade association and arbitral body. He said ICA arbitration awards can be enforced in foreign courts under international law, following an agreement made in New York on 10th June 1958 on the recognition and enforcement of foreign arbitral awards.Internationally recognised in the cotton community, the ICA protects the legitimate interests of all those who trade cotton, whether buyer or seller.Hedge Trading is a special segment of the trade. Hedge trading performs an economic function by providing a cover against the risk of fluctuations in price, thereby facilitating smooth flow of national and international trading in cotton. Cotton and allied cotton products account for about 66 percent of the country’s export earnings, he added. The KCE used to perform hedge trading in cotton since 1934. Following the nationalisation of ginning factories and establishment of Cotton Export Corporation of Pakistan in the public sector, the hedge trading in cotton was suspended by an administrative order of the Government of Pakistan in 1976.Cotton would continue to play a dynamic role in the economy of Pakistan in years to come.
He said the KCE has full and comprehensive infrastructure and adequate by-laws for hedge trading in cotton, inclusive of storage capacity of cotton bales at Karachi, and 320 licensed cotton brokers who have their own offices at the Cotton Exchange to facilitate trading of cotton with the ginners, spinners and exporters. A PCGA member, Shakeel Ahmad, said NCEL on the other hand, has no by-laws or described procedures to tackle with the hedge trading in cotton. “In case of any default in hedge trading committments, who will take up the responsibility to bear loss or to compensate for the loss”, Ahmad added.He said that KCE is the member of the International Cotton Association (ICA), which is the world’s leading international cotton trade association and arbitral body. He said ICA arbitration awards can be enforced in foreign courts under international law, following an agreement made in New York on 10th June 1958 on the recognition and enforcement of foreign arbitral awards.Internationally recognised in the cotton community, the ICA protects the legitimate interests of all those who trade cotton, whether buyer or seller.Hedge Trading is a special segment of the trade. Hedge trading performs an economic function by providing a cover against the risk of fluctuations in price, thereby facilitating smooth flow of national and international trading in cotton. Cotton and allied cotton products account for about 66 percent of the country’s export earnings, he added. The KCE used to perform hedge trading in cotton since 1934. Following the nationalisation of ginning factories and establishment of Cotton Export Corporation of Pakistan in the public sector, the hedge trading in cotton was suspended by an administrative order of the Government of Pakistan in 1976.Cotton would continue to play a dynamic role in the economy of Pakistan in years to come.
MULTAN,June 3rd: President of Multan Chamber of Commerce & Industry (MCCI) Malik Asrar Ahmed Awan has said that the ban on import of used vehicles that are more than 3 years old be continued by the government in the upcoming financial year in order to protect OEMs from suffering huge losses on their investment in plants and infrastructures and wastage of foreign exchange.In a press statement MCCI President said that a free hand in allowing the import of used cars will cause an immense damage to the local industry and will result in the drain of valuable foreign exchange and dumping of junk cars in the country as such cars are at the end of their productive life, or are not compatible with Pakistani conditions.He said this will also result in layoffs on a massive scale, not only for the in-house work force at the automotive plants, but also for the large number of vendors, to whom certain automotive parts are outsourced for manufacturing. As a result of reducing depreciation rate from 2 per cent to 1 per cent, the used car imports slowed to 6,524 units for the year (2008-09) compared 13,145 units for 2007-08.He said that the industry demand for the locally manufactured Passenger Cars (PC) and Light Commercial Vehicles (LCV) grew by 78 per cent to 37,222 units in the third quarter ended March 2010, as compared to 20,856 units sold for the same period last year. The overall sales increased by 34 per cent to 98,738 units versus 73,910 units sold in the corresponding period to March 2009.“There are reports that used car importers usually resort to malpractices using false documentation to import a large number of used cars into the country”, Awan said and added that the current policies on used cars in Pakistan are still extremely liberal when compared to India, Thailand and other countries and are often misused by importers under transfer of baggage scheme.MCCI president suggested that government should prepare long term consistent policies to encourage other manufacturers to invest in the country and duties on cars with higher engine capacities (above 1800 cc) should be rationalised so that consumers have a choice to import these vehicles. He said that Pakistan has got the lowest tariff rate on used vehicle compared to India and Thailand. Even today used vehicles up-to 3 years old are allowed into the country with a depreciation allowance of 25 per cent. There is no product support for such vehicles and ultimately the customer suffers. Government should have policies which assist local industry as it creates jobs, Technology transfer, increase investment, etc.
The market size would be around 300,000 units in the coming 2 years despite the AIDP vision of around 500,000 units to be produced by the auto assemblers by the year 2012. These assumptions are based on current volumes of 2008/09. Malik ASrar Ahmed Awan said that the domestic auto industry needs government stable and consistent policies coupled with low duty on the high-tech parts that cannot be localised due to non-availability of technology and current low volume to achieve economies of scale, industry, he said. He said there is a dire need for a stable policy to allow the industry to plan effectively for future models and expansions and the ban on import of used vehicles to remain intact. A free hand in allowing the import of used cars would cause an immense damage to the local industry and would result in the drain of valuable foreign exchange and dumping of junk cars in the country, said Malik Asrar Ahmed Awan President of MCCI.He said this fallout would also aggravate the local scenario of economic uncertainty and the local OEMs would suffer huge losses on their investment in plants and infrastructures for automobile manufacturing. This would also result in layoffs on a massive scale, not only for the in-house work force at the automotive plants, but also for the large number of vendors, to whom certain automotive parts are outsourced for manufacturing. Inflationary pressures on account of rise in input costs and continued depreciation of the rupee severely eroded their profitability, while the disruption in part supplies caused by power outages posed a huge challenge in maintaining regular supplies and ramp up of the production to meet the rising customer demand,he concluded
The market size would be around 300,000 units in the coming 2 years despite the AIDP vision of around 500,000 units to be produced by the auto assemblers by the year 2012. These assumptions are based on current volumes of 2008/09. Malik ASrar Ahmed Awan said that the domestic auto industry needs government stable and consistent policies coupled with low duty on the high-tech parts that cannot be localised due to non-availability of technology and current low volume to achieve economies of scale, industry, he said. He said there is a dire need for a stable policy to allow the industry to plan effectively for future models and expansions and the ban on import of used vehicles to remain intact. A free hand in allowing the import of used cars would cause an immense damage to the local industry and would result in the drain of valuable foreign exchange and dumping of junk cars in the country, said Malik Asrar Ahmed Awan President of MCCI.He said this fallout would also aggravate the local scenario of economic uncertainty and the local OEMs would suffer huge losses on their investment in plants and infrastructures for automobile manufacturing. This would also result in layoffs on a massive scale, not only for the in-house work force at the automotive plants, but also for the large number of vendors, to whom certain automotive parts are outsourced for manufacturing. Inflationary pressures on account of rise in input costs and continued depreciation of the rupee severely eroded their profitability, while the disruption in part supplies caused by power outages posed a huge challenge in maintaining regular supplies and ramp up of the production to meet the rising customer demand,he concluded
MULTAN,June 2nd:President of Multan Chamber of Commerce & Industry (MCCI) Malik Asrar Ahmed Awan has said that a US-supported project " FIRMS" is helping to bridge the gap between Pakistani Mango farmers and European consumers and FIRMS, being part of the Economic Growth portfolio of the US Agency for International Development (USAID), was helping farmers not only to connect with large international buyers but to achieve their quality standards.Malik Asrar Ahmed Awan said that despite being home of some of the tastiest mangoes on the planet, Multan exports a relatively small percentage of its production. But to increase its exports, the country’s mango farmers will have to gain credibility with international buyers, such as supermarket chains. To do so, farmers will have to consistently supply them with high-quality fruit, delivered on time and with affordable prices.He said that FIRMS is implemented on behalf of USAID by Chemonics International, a development consulting firm based in Washington, D.C., that works in more than 70 countries to help people live healthier, more independent, and more productive lives.As the harvest season is beginning to heat up, FIRMS is providing training in the best ways to pick, sort, grade, and package the delicate fruit of mango. Investments in on-farm infrastructure such as blast chilling, cold storage, and hot water treatment equipment will ensure that farmers will be able to deliver the fruit to exporters in good condition. Finally, the project is arranging to ship the mangoes via controlled atmosphere containerised sea freight to Europe.All of these activities are designed to help mango farmers to take advantage of the contacts made during a recent trip to Berlin, Germany, for the 2010 “Fruit Logistica” trade show – one of the world’s leading international trade fairs for fruit and vegetable producers. The FIRMS project sent 11 leading Pakistani mango farmers, government officials, and exporters to the tradeshow.
The Pakistani delegation’s participation at the event has sparked a new beginning for the Pakistan’s mango sector. Participants held one-on-one meetings with prominent players in the international fruit market and strengthened their knowledge of international best practices and paved avenues for future market engagements. Wealmoor, a renowned supplier to the retail stores, expressed interest in sending an evaluation team to inspect Pakistani mango farms, while the Greefa Company is negotiating to provide custom built packing machines for local farms. The potential of Pakistani mangos prompted other key international suppliers of fruits and vegetables, such as UNIVEG and Total Exotics to import Pakistan’s mango varieties, encouraging the farmers to adopt international standards.Malik Asrar Ahmed Awan said FIRMS is helping mango producers gear up for sea and air trial shipments to Europe later this month to test the ability to deliver high-quality mangos consistently using on-farm infrastructure facilities cost-shared with USAID. FIRMS is also partnering with the US Department of Agriculture to send another trial shipment of mangos to the US in August. Participants at the meeting agreed that the meeting made them realise that the mango industry in Pakistan has tremendous potential to tap into the international mango market. With the help of USAID, industry leaders are crafting an overall strategy to develop a consistent, export-quality to put the Pakistani mango on the international map
The Pakistani delegation’s participation at the event has sparked a new beginning for the Pakistan’s mango sector. Participants held one-on-one meetings with prominent players in the international fruit market and strengthened their knowledge of international best practices and paved avenues for future market engagements. Wealmoor, a renowned supplier to the retail stores, expressed interest in sending an evaluation team to inspect Pakistani mango farms, while the Greefa Company is negotiating to provide custom built packing machines for local farms. The potential of Pakistani mangos prompted other key international suppliers of fruits and vegetables, such as UNIVEG and Total Exotics to import Pakistan’s mango varieties, encouraging the farmers to adopt international standards.Malik Asrar Ahmed Awan said FIRMS is helping mango producers gear up for sea and air trial shipments to Europe later this month to test the ability to deliver high-quality mangos consistently using on-farm infrastructure facilities cost-shared with USAID. FIRMS is also partnering with the US Department of Agriculture to send another trial shipment of mangos to the US in August. Participants at the meeting agreed that the meeting made them realise that the mango industry in Pakistan has tremendous potential to tap into the international mango market. With the help of USAID, industry leaders are crafting an overall strategy to develop a consistent, export-quality to put the Pakistani mango on the international map
MULTAN, June 2nd:The Pakistan Muslim League-Nawaz (PML-N) will protest the imposition of the value added tax (VAT) in the National Assembly (NA), Makhdoom Javed Hashmi, MNA and senior Vice President of PML-N assured to traders delegation led by Khawaja Muhammad Shafiq, Khalid Mehmood Qureshi and Jaffar Shah here on Wednesday.Hashmi said that the government should keep in view the interests of the public while preparing the federal budget 2010-11.PML-N Central Senior Vice president said that the PML-N has prepared its strategy regarding the budget and the party would play a more effective role in the upcoming budget session of the NA. Javed Hashmi warned that if the government failed to provide relief to the masses in the budget, the people would take to the roads to get their basic rights. He said that the PML-N would resist the imposition of VAT no matter how much the government supported it. Hashmi criticised the reduction in petroleum prices and said that the prices of petroleum products in the international market were lower compared to the prices in the country. He said the government should stop playing number games with the masses. The PML-N leader said that the government should solve the problems confronting the masses or it would lose public support. The PML-N leader warned that the Pakistan People’s Party (PPP)-led government should avoid a clash with the judiciary. He said that if the government clashed with the judiciary not only the opposition but other political parties would also not engage with it. The PML-N leader said that the government should respect the judiciary or it would have to face the wrath of the nation. Hashmi added that the government should ask its ministers and other officials not to make any anti-judiciary statements and should concentrate on resolving the problems of the masses or it would be difficult for it to complete its tenure of five years. The PML-N leader criticised the statement of government lawyer Dr Basit regarding the Swiss cases against President Asif Ali Zardari and termed it as a move to escalate the tensions between the judiciary and parliament.
MULTAN,April 24th: The United States should fulfil its four-year-old promises by former President George W. Bush to create a trade preference program for Pakistan, and it should provide access Pakistani products to US markets aimed at creating jobs in Pakistan and Afghanistan by providing duty-free access to the United States for certain goods made in approved zones within the two countries, hailing the joint statement of the United States and Pakistan, Malik Asrar Ahmed Awan President of Multan Chamber of Commerce & Industry (MCCI) said that these measures have been bottled up in Congress and now it should not be further delayed "US reaffirmed its commitment to support Pakistan through market access initiatives," Now this commitment must be materialised without any delay. Awan said that " when both sides agreed to work together and with the U.S. Congress to move ROZ (Reconstruction Opportunity Zone) legislation forward there should be no hindreance or preconditions for implementation on this commitment He said that Pakistan's biggest export to the United States is cotton clothing and household goods. That category accounted for $2.4 billion of its total exports of $3.2 billion to the United States last year and Pakistan pays some $315 million in U.S. duties on its clothing, bedsheet and towel exports to the United States. MCCI chief said that it is a good augury that US -Pak agreed to work together to develop new ideas to enhance market access, foster investment, and create jobs in both of our countries," He hoped that .Congress would review all U.S. trade preference programs this year, with an eye toward reform.MCCI chief said that Pakistan must be invited in entrepreneurship conference being hosted by President Barack Obama to deepen ties between business people in the United States and Muslim countries.He hoped that this conference would help in achieving the goals of finding ways to make economic and social climates favourable for entrepreneurship, and developing the role of businesswomen.
MULTAN, April 7th: Habib Bank management has increased the mark-up rate by one percent on the car loan advanced to the staff and similar increase would be applied on the house building loans of staff members.Central chairman of Habib Bank employees Federation Syed Kaswar Razi ,central secretary general Muhammad Hadi, central president Ch. Shabbir ahmed and office secretary Muhammad Jalil expressed their concern on the change of staff-loan policy by the HBL management describing it a breach of agreement and norms of commitment.They demanded that interest free loans be given to the staff following the suit of previous management.
MULTAN, April 7th: Multan Chamber of Commerce & Industry (MCCI)'s President Malik Asrar Ahmed Awan and Senior Vice President Khawaja Muhammad Usman has expressed their concern on the suspension of the gas supply to the industries located in the Southern Punjab area owing to a shortfall of 80mmcfd between the demand and supply of gas.It is the first time in the history of the country that the gas loadshedding is being observed in summer owing to the demand and supply shortfall.They said that industry was already facing hardships due to load-shedding of electricity and local manufacturers are unable to meet the demand of foreign buyers and they are losing their customers abroad.An official of the SNGPL told that the main reason for gas loadshedding for industry was the low supply of gas from the Qadirpoor Gas Field. The SNGPL official said around 550-600mmcfd gas was expected from the Qadirpoor Gas Field but presently the gas supply available was less than 400mmcfd. He said the Oil and Gas Development Company (OGDCL) had assured that the compressors of the field would start working properly till the end of June and after that, the full gas supply would be available from the field.Another reason for the gas loadshedding for industry was the supply of gas to the newly commissioned SAIF Power Plant, an Independent Power Producer, the SNGPL official said, adding that the IPP was promised the gas supply as per the agreement in 2006 and SNGPL would keep on giving it the supply till June next year. He said 38mmcfd gas was being supplied to the IPP daily.The official said that around 300-400 gas connections, both domestic and commercial, were cut till now for running gas generators without informing the SNGPL.
MULTAN,April 5th:The Punjab Sugarcane Board has called a meeting on Monday (today) to discuss the issue of non-payment of dues to sugarcane growers by sugar mills.It has learnt that the Punjab government has asked the Cane Commission office to call a meeting in order to evolve a strategy for the next sugarcane crop, the issue of outstanding dues of sugarcane growers, increase in per acreage yield and other issues. The government had invited sugarcane growers, sugar millers, agriculture experts, farmers’ organisations, and concerned government departments to attend the meeting.
It is learnt that delay in payment of sugarcane growers dues would be on top of agenda as payments amounting to over Rs 35 billion payments are pending even though crushing season ended in March.
According to sources, a large number of growers had submitted complaints to the Punjab Sugarcane Commission Office against millers. The Punjab cane commissioner had twice issued notices to all sugar mills of the province to submit the schedule of payments but no miller had submitted the schedule. Sources said the nephew of a top personality is also among millers who had not paid growers dues.
It is learnt that delay in payment of sugarcane growers dues would be on top of agenda as payments amounting to over Rs 35 billion payments are pending even though crushing season ended in March.
According to sources, a large number of growers had submitted complaints to the Punjab Sugarcane Commission Office against millers. The Punjab cane commissioner had twice issued notices to all sugar mills of the province to submit the schedule of payments but no miller had submitted the schedule. Sources said the nephew of a top personality is also among millers who had not paid growers dues.
MULTAN,April 5th:Malik Asrar Ahmed Awan, President of Multan Chamber of Commerce & Industry (MCCI) has said that chambers of southern Punjab can play a role in saving the perishable fruits, vegetables and grains so that surplus items could be exported to earn the foreign exchange. Addressing an agri-business conference here today he said that south Punjab was a fertile agricultural area but it was losing many items due to non-availability of value addition facilities in this zone.He said that government should take the concerned chambers into confidence before execution of any project and it must provide feasibility report to the chamber. Malik Asrar Ahmed awan said that Government should provide incentive and protection to the investors to ensure the security of their investment besides providing basic information about the proposed projects.Director Agricultural Board of Investment (ABOI) Arshad Hashmi has said that Punjab was contributing 60 percent share in GDP of Pakistan which can be increased by boosting up the agri-production and saving the produce from destruction.He said that though Punjab was an agricultural area but we are getting only 22 percent of the potential.He said that Punjab Government had prepared a number of projects to attract the investors and now Punjab would be able for further contribute in country's economy.He said that Pakistan earned 21.8 billion through agricultural produce.He disclosed that Punjab Government wanted to establish a mango packing house and a cold storage attached to Mango Pulp plant in Industrial estate and its feasibility reports have already been prepared. He said that a kinnow packing house would be established in Mandi Bahauddin.
MULTAN,April 2nd:A fresh increase of seven percent in petroleum prices has drawn a sharp reaction from the masses, including the general public transporters, traders, formers as well as politicians, who rejected the increase and termed it anti-people.Pakistan Muslim League-N staged a demonstration under the leadership of Shaikh Muhammad Younas, PML-Q also staged a demonstration led by Babu Akram Ansari and Tariq Gujjar, PML-N (women wing) held a demo under the leadership of Provincial Vice President Qurban Fatima, Tariq Amir Abbasi, Pakistan Kisan Board Punjab agitated against the recent increase in POL prices led by Khurshid Kanju.They said that on one side sky rocketing price hike has made lives of laymen barbed, while on the other inattention of the government has drooped down the idea of providing relief to masses. Rather than giving people sigh of relief, democratic government is busy in rift with political rivals and its ministers doing nothing except making shallow slogans and empty claims of public service. A transporters' body, has hinted at launching a nationwide protest against the increase made by the government. Multan van, Mini Bus and Wagon Owners Association president , in a statement, said that OGRA in a span had raised petrol price by Rs 15 per litre and diesel price by Rs 10 per litre. He said that there was no precedence in the 62-year history of the country of recent record-breaking oil price hike. They warned that if this trend continued there would be no need for calling strikes as vehicles would automatically be forced to remain off-road. They said the transporters had earlier demanded that the OGRA be made to review oil prices once in a year or at the most twice a year, but the government did not consider their just demand.They warned that this time the transporters would not confine its protest just to Lahore, but try to widen its scope to the national level. He said that this would be the main agenda of their meeting to be held within next few days.The Private Bus Owners Association chairman, another body of transporters, has demanded immediate withdrawal of the hike, and said the transporters would decide about their future strategy in their meeting this week.
Meanwhile, the Traders Alliance of Multan, in separate statements, strongly criticised the recent POL price hike, and termed it a non-serious attitude of the government regarding safeguarding the interests of masses.Political leaders also denounced increase in petroleum prices and demanded immediate withdrawal of the increase.Demanding withdrawal of the increase in the petroleum prices, they said that within two months, OGRA on Wednesday made an increase of nearly 10 rupees per litre in the price of petrol and nearly 6 rupees per litre in the price of diesel. In a statement released by the JI, a spokesman of the party said that the price increase was a cruel joke with the people.
Meanwhile, the Traders Alliance of Multan, in separate statements, strongly criticised the recent POL price hike, and termed it a non-serious attitude of the government regarding safeguarding the interests of masses.Political leaders also denounced increase in petroleum prices and demanded immediate withdrawal of the increase.Demanding withdrawal of the increase in the petroleum prices, they said that within two months, OGRA on Wednesday made an increase of nearly 10 rupees per litre in the price of petrol and nearly 6 rupees per litre in the price of diesel. In a statement released by the JI, a spokesman of the party said that the price increase was a cruel joke with the people.
MULTAN,April 2nd:After increase in the petroleum products prices, the transporters’ community have increased the fare by ten percent. While city service transporters have threatened to increase the fares by up to Rs2 in next couple of days. Transporters Association Multan Chaudhry Shahbaz Ahmed told that the transporters have become tired of protesting against the price-hike and now it’s the time to increase the fares. "We demand the government to decrease the price, otherwise, we will not hesitate to hike it," he added. "The CNG Dealers Association is also conducting the meeting on 5th April regarding the technical aspects of the price change," said the spokesman of the CNG Dealers association.According to an economic analyst and researcher Prof Dr. Karamat Ali, the petroleum products are being sold on higher rates than the price in the international market. "The profit on the petroleum products is directly going into the government’s pocket which is about Rs214 billion in taxes on oil products" he added.Meanwhile, the leaders of the other organizations including Labour Party Pakistan,Multan Suhail Javed also condemned the price-hike and warned the government of countrywide protests. He said that it’s an economic murder of the people, who already are facing the inflation, unemployment and the power shortages. "The increase will directly hit the poor people of the country, whereas, the rich are enjoying all the benefits" he added.He said that the country is being run on the IMF and World Bank’s policies.
A welder, who defaulted on a small bank loan, committed suicide after he could not stand bank staff’s ‘coercion’. Younas Masih of Chak 401-JB Kujja, who had a welding shop on Shorkot Road, got Rs13,000 loan from the local branch of Khushhali Bank Limited and the amount inflated to Rs17,550 after he could not return the loan in time. Bank staff repeatedly visited his shop for recovery of the loan but he failed to arrange the money. The bank staff again visited his shop on Saturday and took away everything in his shop, including his welding plant. Locals intervened and got Masih’s belongings back from the bank staff and sought time for him to arrange the money. The bank staff gave him one hour, but Masih failed to arrange the money. He went to a friend’s shop and took poison. Rescue 1122 shifted him to the DHQ hospital. In the meantime, the bank staff again visited his shop and exchanged words with other shopkeepers when they told them that Masih had taken poison.The shopkeepers took the defiant bank staff to the hospital where they themselves saw Masih in a critical condition. Later, doctors referred Masih to Faisalabad’s Allied Hospital, where he died on Saturday night. Masih’s body was brought to his village by an ambulance and his widow had no money to pay to the ambulance. Local shopkeepers arranged the money for the purpose. A bank official said a recovery campaign was under way. He said the recovery in-charge went to Masih’s shop and he also gave him time to arrange money.
MULTAN,March 23rd:Chief Justice of Pakistan should take remedial measures to compensate the tens of thousands of small investors, who lost more than Rs.800 billion in stock market crashes over the past five years as the SECP failed to redress their grievance.They have,once again, approached the policy board of the Securities and Exchange Commission of Pakistan for compensation and threatened to take the matter to the Supreme Court if the SECP fails to ensure justice to them.
Documents available suggest that a group of affected investors have taken up the matter with members of the SECP's policy board to seek help against their misfortunes perpetrated by market manipulators before they approach the Supreme Court for compensation.According to an appeal submitted to Finance Secretary Salman Siddique, who is also chairman of the SECP policy board, the small investors have accused SECP of not only failing to take effective deterrent actions to prevent such 'daylight robberies', but also of not compensating their losses as the brokers multiplied their fortunes in the absence of any punitive action as was required under law.The market crash of 2005 which evaporated over $13 billion of market capitalisation in a matter of days was investigated and its causes ascertained by a task force led by Justice (retd) Saleem Akhtar. On its recommendations, the SECP hired services of US forensic investigators who had identified the main culprits and remedial measures to prevent such incidents in future. The investors have complained that the SECP held a number of brokers responsible for the debacle and market manipulation, but applied irrelevant clauses of laws which practically left all main culprits untouched. As a result, they said, the market collapsed for a second time in 2008 and yet the guilty people remained off the hook. In 2008, more than 4,500 investors applied for the compensation although the total number of affected investors was estimated at more than 50,000. They said the SECP proceeded against 56 brokers for violation of stock market laws governing futures contract - an offence specifically punishable under Section 22 of the SECP ordinance with a penalty of Rs50 million. "The SECP established the commission of offence but exonerated the offenders on a novel ground that the accused brokers thought they had not committed any offence, although the SECP held that they actually did commit the offence."
Likewise, the SECP proceeded against eight brokers for price manipulation that under Section 17 of the SECP ordinance is an offence punishable with three-year imprisonment and a fine. The SECP charged them for the offence but under wrong provisions of law imposed a negligible penalty of Rs25,000 to Rs100,000. They said the SECP introduced even more dangerous leverage products and speculative futures contracts, leading to their misuse and the resultant market crash of 2008. The investors say that the SECP is itself involved in the flooring of share prices in August 2008 in consultation with brokers although the flooring was a malpractice and criminal offence under Section 17(e) and punishable under Section 24 with imprisonment and fine. They said that when the Competition Commission of Pakistan took a suo motu notice of the market floor, the SECP asked the stock markets to lift the floor. The CCP fined the three stock markets but did not touch the SECP. The group of small investors also complained that the "SECP kept hundreds of complaints unnecessarily pending for months, affording the five defaulting brokers time and information to dispose of their properties and run away from the country". The five defaulters confessed before the SECP that they had pledged their clients' shares without authorisation for their personal gains.
Instead of prosecuting these defaulters with imprisonment and fines as was required under the relevant laws, they were charged under wrong clauses to reduce their punishment. This, they said, was because of close friendship between some of the brokers and the SECP high-ups. The complainants claim that the confidential information about putting defaulters' names on the exit control list was leaked to the brokers who left the country before their names were put on the ECL. And yet, the SECP did not move the Sindh High Court, as is required under the law, to wind up their brokerage houses. The investors have pleaded before the SECP policy board to intervene and ensure them the return of their investments as the brokers used to charge the investors who ran short of funds even for a single day. They have contended that Karachi Stock Exchange is bound under Article VII of its own memorandum of association to return full investments to clients from Investors' Protection Fund and from its own property and income or else they would take up the case with the Supreme
Documents available suggest that a group of affected investors have taken up the matter with members of the SECP's policy board to seek help against their misfortunes perpetrated by market manipulators before they approach the Supreme Court for compensation.According to an appeal submitted to Finance Secretary Salman Siddique, who is also chairman of the SECP policy board, the small investors have accused SECP of not only failing to take effective deterrent actions to prevent such 'daylight robberies', but also of not compensating their losses as the brokers multiplied their fortunes in the absence of any punitive action as was required under law.The market crash of 2005 which evaporated over $13 billion of market capitalisation in a matter of days was investigated and its causes ascertained by a task force led by Justice (retd) Saleem Akhtar. On its recommendations, the SECP hired services of US forensic investigators who had identified the main culprits and remedial measures to prevent such incidents in future. The investors have complained that the SECP held a number of brokers responsible for the debacle and market manipulation, but applied irrelevant clauses of laws which practically left all main culprits untouched. As a result, they said, the market collapsed for a second time in 2008 and yet the guilty people remained off the hook. In 2008, more than 4,500 investors applied for the compensation although the total number of affected investors was estimated at more than 50,000. They said the SECP proceeded against 56 brokers for violation of stock market laws governing futures contract - an offence specifically punishable under Section 22 of the SECP ordinance with a penalty of Rs50 million. "The SECP established the commission of offence but exonerated the offenders on a novel ground that the accused brokers thought they had not committed any offence, although the SECP held that they actually did commit the offence."
Likewise, the SECP proceeded against eight brokers for price manipulation that under Section 17 of the SECP ordinance is an offence punishable with three-year imprisonment and a fine. The SECP charged them for the offence but under wrong provisions of law imposed a negligible penalty of Rs25,000 to Rs100,000. They said the SECP introduced even more dangerous leverage products and speculative futures contracts, leading to their misuse and the resultant market crash of 2008. The investors say that the SECP is itself involved in the flooring of share prices in August 2008 in consultation with brokers although the flooring was a malpractice and criminal offence under Section 17(e) and punishable under Section 24 with imprisonment and fine. They said that when the Competition Commission of Pakistan took a suo motu notice of the market floor, the SECP asked the stock markets to lift the floor. The CCP fined the three stock markets but did not touch the SECP. The group of small investors also complained that the "SECP kept hundreds of complaints unnecessarily pending for months, affording the five defaulting brokers time and information to dispose of their properties and run away from the country". The five defaulters confessed before the SECP that they had pledged their clients' shares without authorisation for their personal gains.
Instead of prosecuting these defaulters with imprisonment and fines as was required under the relevant laws, they were charged under wrong clauses to reduce their punishment. This, they said, was because of close friendship between some of the brokers and the SECP high-ups. The complainants claim that the confidential information about putting defaulters' names on the exit control list was leaked to the brokers who left the country before their names were put on the ECL. And yet, the SECP did not move the Sindh High Court, as is required under the law, to wind up their brokerage houses. The investors have pleaded before the SECP policy board to intervene and ensure them the return of their investments as the brokers used to charge the investors who ran short of funds even for a single day. They have contended that Karachi Stock Exchange is bound under Article VII of its own memorandum of association to return full investments to clients from Investors' Protection Fund and from its own property and income or else they would take up the case with the Supreme