Cement sales increase
During the
first quarter of the
current fiscal year, the Cement
Industry has posted a growth of 2.17 percent
in local sales, compared with sales during the first quarter
of the Last Fiscal
Year. However, exports recorded
a 1.40 percent decline, compared with exports during the first quarter of last
year. The overall situation
during the first
quarter of the
current fiscal year showed
1.12 percent growth
compared to the same
period of last
fiscal year. A spokesperson of the All-Pakistan
Cement Manufacturer Association stated on Friday that after Negative Growth in cement dispatches
during the first two months of this fiscal year, the industry recorded a robust
growth in September by dispatching 2.951
million tons of
cement, compared with 2.611
million tons dispatched
in September last
year, showing growth
of 13.01 percent. Exports were
down by 0.75 percent in July, 3.29 percent in August and 0.39 percent in
September. Cement Exports have been
declining continuously in the last 15 months and industry is now mainly
depending on Domestic Market. In
the first quarter
of this fiscal
year, the Cement Dispatches were 7.796 million tons
compared to 7.710 million tons during the same
period last year. The
cement industry is content that
during the current budget the
government allocated Rs1,155 billion for
the Public Sector Development Programmed,
but so far industry has not been able to grow as expected and
there is very
small growth, compared
with the same
period last year. Cement
Exports To India Has Declined due to lower demand. Export To
Afghanistan Has Declined
due to the
uncertainty prevailing in
that country, with US and NATO
troops planning a withdrawal by the end of 2014. During the
last budget the Cement
Industry has been
brought within the purview of the “3rd Schedule,” which has increased the overall
tax burden and has resulted in increase
in the prices.
Nawaz-Obama meeting to seal IP GASLINE
Fate
The fate of Iran-Pakistan Gas Pipeline project would largely depend on out-come
of Prime Minister Nawaz Sharif’s crucial
meeting with US President Barack Obama
on October 23. Energy crisis in Pakistan
and the multibillion dollars gas pipeline project would be among the key items
on the agenda of the meeting. The
government is working on various proposals to secure backing of the US President
on the gas project. US sanctions regime do not apply to IP gas pipeline
project, as it does not entail direct transaction with any of the
public sector banks of
Iran. Since the project would
be handled through a
non-governmental organization of Iran, therefore,
there was no risk of US sanctions attached to the gas
pipeline project.
Two percent extra ST imposed on
import of items
The two percent extra sales tax has
also become applicable on the import of items,
which were recently
excluded from Third Schedule
of the Sales Tax
Act under SRO 896(I)/2013. The rate of two percent was also worked out on the
basis of actual value addition of these sectors from the manufacturers till
retail stage. Technically after exclusion of items from 3rd schedule tax would
be calculated on ex-factory price instead of retail price and normally there is
at least 15 percent gap between retail or ex-factory price hence applying 17
percent sales impact the measure roughly give benefit around @ 2.55 percent at
the other end extra levy was imposed @ 2 percent hence still tax payer would
get some relief even after applying extra tax, further tax payer would no more
require to follow complex procedure for printing and observing retail price on
each of their items. Here it is important to note that now extra tax is also
put on imported items whereas 3rd
schedule was not applicable on
imported goods hence disparity
between local product and imported goods were also settled at the one end and
tax impact was enhanced on imported goods at the other end. The Federal Board of Revenue (FBR) however did not exclude
application of further tax and sales tax withholding on items levied with extra
tax was the measure required to be take up as per agreed principle and to
achieve entire satisfaction of the business community are the reason behind
negative reaction on this particular account by business community.
World Bank to give $2.2 billion for
15 projects
The government has reportedly claimed
that the World Bank will provide
$2.205 billion for 15 projects in the pipeline. The Senate Standing Committee on Finance was informed by the Economic Affairs Division that $500
million were in the pipeline for Dasu Hydropower
Project and $300 million for Power
DLI. A revenue mobilization DLI project of $300 million is also in the
pipeline for funding by the World Bank.
The funding in the pipeline for other projects by the WB includes $150 million for
Sindh Barrages (Irrigation), $100
million for Sindh Agriculture Growth
and $160 million for Sindh Water Sector
Improvement. The funding of $100 million for Indus Connectivity Project and $55 million for Nutrition Project is also in the pipeline. The WB would provide $50 million for Punjab Government and service delivery project, $50 million for immunization
support project and $50 million for Punjab skills project. The meeting was
reportedly informed that the funding of $150 million is in the pipeline for
access to finance project and $200 million for Sindh On-Farm Agriculture Productivity Project and $40 million are
in the Pipeline For CASA Project.
Italy to provide Rs5.7b debt relief
to Pakistan
The Italian Ambassador to Pakistan Chiodi Cianfarani called on the Finance Minister Senator Ishaq Dar at
his office on Sunday. The Italian
Ambassador conveyed the sympathies of the people and government of Italy
over the recent Earthquake In Balochistan and
offered to donate
300,000 Euros for
the earthquake affecters.
Ambassador Cianfarani also
informed the minister that Italian Vice Minister of Foreign Affairs
plans to visit Pakistan and would be
accompanied by a business delegation. Italy, he said, is keen to expand the
existing bilateral economic relations between the two countries. Ambassador Cianfarani informed the
minister that Italy has agreed to provide a debt relief of Rs5.7billion to Pakistan,
which can now be utilized by the Government
of Pakistan for its poverty alleviation programmed as well as Citizens Damage Control Programs. The
finance minister said that Pakistan values its relations with Italy and is keen
to expand economic ties with it. He thanked Italy for supporting Pakistan’s
case in IMF and expected the hope
that it would also extend its support in European
Union for grant of GSP plus to
Pakistan.
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