PAKISTAN SHOULD FOCUS ON REGIONAL TRADE
ISSUE # 30 - 31 ----- Ju
ly 28 - Aug 10, 2014

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Respective governments of SAARC member countries should be encouraged to review the country-specific list of products that have export capacity but less trading volume to devise strategies for trade promotion and development and to remove trade barriers.........
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PAGE TOP STORIES

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EXCLUSIVE INTERVIEWS
& PAGE SPECIAL REPORTS

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GOVT TAKING RIGHT STEPS FOR ECONOMIC PROGRESS, ENHANCEMENT OF EXPORTS
INTERVIEW WITH MIAN ZAHID HUSSAIN, FOUNDER PRESIDENT PAKISTAN BUSINESSMEN AND INTELLECTUALS FORUM (PBIF)

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Pakistan’s main exports are: cotton and knitwear (28 percent of total exports); bed wear, carpets and rugs (8 percent) and rice (8 percent). Others include: leather, fish, sports goods and fruits and vegetables.
Main export partners are: United States (15 percent of total exports), United Arab Emirates (10 percent), Afghanistan (9.5 percent), China (9 percent), United Kingdom (3 percent) and Germany (2 percent).
We should strive hard to convince industrial units and exporters to enhance exports of non-traditional products to our main export partners and explore new markets in Africa, Asia and India.
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ISSUES OF PREVALENT ISLAMIC BANKING & FINANCIAL SYSTEM

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Islamic Banking and Financial System is developing at the rapid pace and now, it stands as the considerable parallel system before conventional financial system. At this point of time, we should analyze the picture and recall the reason and objective to start Islamic banking and finance system? Consequently, we come to the point that the main objective was to implement the shariah-compliant and interest free financial system that could provide the base for the suitable implementation of Islamic economic system that can lead to economic welfare of the society.........

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OIL PRICES
OIL WEEKLY BASKET PRICE

 (US Million $)
PERIOD PER BARRELS
June 6, 2014 105.28
June 13, 2014 106.88
June 20, 2014 109.65
June 27, 2014 109.62
July 4, 2014 108.03
July 11, 2014 105.73
July 18, 2014 104.65
July 25, 2014 105.33

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PREVIOUS ISSUES

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PAKISTAN WEATHER
3 DAYS FORECAST

  MIN MAX HUM% FORECAST.
KARACHI
TODAY 27 32 71 cloudy
TOMORROW 27 31 76 cloudy
DAY AFTER 27 32 77 cloudy
LAHORE
TODAY 25 33 70 Th-storms
TOMORROW 25 32 79 Th-storms
DAY AFTER 26 31 81 Th-storms
ISLAMABAD
TODAY 24 30 79 Th-storms
TOMORROW 24 29 85 Th-storms
DAY AFTER 24 31 81 Th-storms

updated: Sun - Tue, July 27 - 29, 2014

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HOUSING
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BALOCHISTAN NEEDS BETTER HOUSING
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The rapid growth of slums in major townships of Balochistan including Quetta amply reveals that there has been a complete ban on housing projects by the authorities. The unplanned constructions in slum areas created plethora of problems like environmental mismanagement, filth and garbage, out-flowing drains, poor sanitation, congestion, development of unhygienic and hazardous practices and rise in crime rate. The power theft, contamination of water, illegal gas, electricity and water connections have developed as a culture in these slums....

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COVER STORY
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PAKISTAN SHOULD FOCUS ON REGIONAL TRADE
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The Trade Development Authority of Pakistan (TDAP), which has the prime responsibility to facilitate the export sector has announced an eye-catching export target of $50 billion within three years. The 50 billion dollar target cannot be described as ambitious in view of the enormous export potential of Pakistan, it is however unfortunate the TDAP earlier called Export Promotion Bureau has been misused by the corrupt government functionaries and most of them have also been exposed in the previous government.

The present government has taken the private sector into the confidence and one popular business leader S. M. Muneer has been assigned the task to look after this important trade authority as its Chief Executive Officer. S. M. Muneer, who is a seasoned businessman and knows all in and out of the businesses, is quite capable to meet the target if he goes in the right direction as he is a right politician free from any bias or mindset................

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COVER STORY
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CHANGING PREFERENCE OF BUYERS DAMAGING LOCAL CARPET EXPORTS
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Carpet has more than 2,500 years of ancient history as Iranians were amongst the first carpet weaver of the age-old civilizations and through centuries of creativity and initiative building upon the talents of the past, this industry has achieved a special degree of excellence since. Though this industry is more technologically advanced now as new trend and design demands had made it more attractive and choosy, so the ancient type of making carpet is loosing its charms after the emerging markets in Europe and in the US begin working on more advance machines.

 

To make hand-made carpets its manufacturing requires simple technology no heavy equipment and machinery, only wooden looms, yarn, knotting skill and simple tools are required. Many rural families doing the work inside their homes while female members of the family also taking part in this economic activity.......

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COVER STORY
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AMPLE PROSPECT FOR INVESTMENT IN BANKING SECTOR
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Although the banking sector in Pakistan has grown on appreciably sound footings on the back of the best regulatory guidelines by the State Bank of Pakistan, however, there still are tremendous opportunities for growth especially in rustic life of the country. It is said that 80 percent population is still un-banked in Pakistan which naturally offers tremendous opportunities for investment in the banking sector.

President and CEO of Tameer Microfinance Bank Ltd, Nadeem Husain while sharing his views on the banking industry in general and microfinance bank in particular pointed out that Microfinance banking is more advance in Pakistan than any other country in the region................

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COVER STORIES
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SHIPPING
NEWS

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THAI SHIPPING LINE RESUMES OPERATION IN IRAN
Thai Wan Hai Company became the first foreign shipping line that resumed operation in Iran after its ship berthed in the Southern Iranian Shaheed Rajayee port this last Tuesday.
This is for the first time that a ship of a foreign shipping line berths in an Iranian port after Iran and the Group 5+1 (the US, Russia, China, France and Britain plus Germany) reached an interim agreement in Geneva on November 24.
Thai Wan Hai is among world’s first 20 superior shipping lines. The Thai company’s ships used to berth at the Iranian ports before the West imposed its sanctions against Iran.......

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COVER STORY
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UNISAME SUGGESTS IMPORTANT STEPS FOR EXPORT PROMOTION
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The commercial officers posted in foreign countries play very important role in promoting exports of Pakistani goods and further need to have experience and training for the promotion of goods manufactured in Pakistan especially by the SME sector.
The Union of Small and Medium Enterprises (UNISAME) has invited the attention of the government to the appointments of inexperienced officers as commercial attaches for overseas postings to promote trade between Pakistan and the foreign countries.
UNISAME officials said the appointments must be on the basis of experience and regretted that appointments to these crucial posts are over looking seniority and merit and as a result exports suffer........

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COVER STORY
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ALL EFFORTS TO MEET EXPORT TARGET
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One of the most important pre-conditions for economic revival is the restoration of confidence of the business community and other stakeholders for the future of the country and to achieve this important objective, the present government needs to engage the business community in decision making, ensure steady supply of energy, provide fiscal incentives to improve competitiveness, reduce the cost of doing business and accord high priority to the export sector and small and medium enterprises in rural areas. The government must create a secure environment for investment and economic activities by minimizing these risks through concerted policies and actions in consultation with all the stakeholders...........

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RESEARCH CORNER

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EXPORTERS SHOULD FOCUS ON NEW EXPORT DESTINATIONS

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Although Pakistan trades with a greater number of countries its exports nevertheless are highly focused in few countries. About one-half of Pakistan’s exports’ destinations are to six countries such as, China, Afghanistan, UAE, USA, Germany and UK. Among these countries, the utmost export earnings come from USA: 15 percent followed by China: 10 percent making up about one-fourth of the total. China’s share in total exports has steadily picked up from 4.0 percent during FY2008-09 to 10 percent during FY2013-14. The share of export to Afghanistan in total exports, however, recorded a fall in present years from 10 percent during FY2011-12 to 8.0 percent during FY2013-14.........

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CAPITAL MARKETS
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COVER STORY
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PLEDGES FOR BOOSTING EXPORT
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Reportedly Federal Finance Minister, Senator Ishaq Dar has asked South Asian Association for Regional Cooperation (SAARC) countries to provide meaningful market access and level playing field to Pakistani exporters, because Pakistan is also ready to improve its trade and investment relations with the regional countries. He said all the pros and cons of regional trade would be evaluated to accrue maximum benefits for Pakistani exporters within the region. He also suggested a roadmap to the Commerce Ministry for achieving greater cooperation among the member countries..........

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COVER STORY
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ONE STOP SHOP FORMATION -- A PRECISE MOVE TO BRING BACK INVESTORS
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Textiles sector is the mainstay of country’s exports as it accounts for more than half of country’s exports. However, performance of this vital sector has been affected due to poor cotton crops, delays in introduction of quality seeds and regulatory approvals for introduction of BT cotton, widespread energy shortages, numerous local taxes and levies, high cost of finance and restricted trade regimes adopted by importing countries.
The country lags behind in value addition which is a reason behind unemployment and lower volume of exports. Textile sector needs to be given a priority as it contributes 8-percent to GDP, 54-percent to exports, produces 24-percent of industrial value-added products, employs 40-percent of urban labor and absorbs 40-percent of bank credit.
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INDIA IN THE NEWS

NEW DELHI: The Gujarat model got an endorsement from no less than World Bank president Jim Yong Kim. "If the ranking of India in (the ease of) doing business report was based just on Gujarat, it would improve 50 places in the doing business ranking. So, our hope is that what PM (Narendra) Modi did in Gujarat to improve the business environment can be scaled up to all over India. And, if that does happen, India will rise very quickly in ranking of doing business reports," the World Bank boss said at a press conference.......

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IN THE NEWS

Pakistan’s exports are highly concentrated in a few items namely, cotton and cotton manufactures, leather, rice, chemicals & pharma products and sports goods, research analyst-PAGE told. These five categories of exports accounted for about 70 percent of total exports during FY14 (Jul-March) with cotton manufactures alone contributing 52.9 percent, followed by rice (8.7 percent) and leather (4.9 percent). He said that the degree of concentration further increased in favour of these items during current financial year. Further dis-aggregation reveals that products exports in a few items are a major cause of instability in export earnings. .........

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GULF NEWS

The launch of mega projects and renewed investors confidence have boosted real estate transactions in Dubai to Dh113 billion for the first half of the year, the Dubai Land Department (DLD) revealed. Sales accounted for 54 per cent of the total transactions for January to June period, numbering 22,096 deals worth Dh61.5 billion. The combined number of all transactions for Q1 and Q2 was 30,380, according to DLD’s Real Estate Research and Studies Department report.........

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ANNOUNCEMENT

Following to the announcement for booking of the new Toyota Corolla Altis Grand earlier in July, Indus Motor Company Limited (IMC) has started delivering the vehicles to its customers, ahead of the Eid holidays.
The New version of the Toyota’s immensely popular Sedan Corolla was introduced by IMC on 15th of July with orders being accepted at the nationwide dealership network. As committed earlier, IMC started delivering the vehicles against orders from the21st of July...
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COVER STORY
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IRAN VEHEMENTLY CONDEMNS ISRAEL’S BARBARIC ACTS ON WORLD AL QUDS DAY
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First of all, I would like to say welcome to all of you and offer my thanks to you for accepting our invitation. I hope your worship and prayers in this month of mercy and forgiveness would be answered by the Almighty Allah.
We are here to honor the world’s Al-Quds Day, a valuable and historical memorial of Hazrat Imam Khomeini (RA), the Great Leader of the Islamic Revolution of Iran.
The Al Quds Day is the show of unity, solidarity and unanimity of the Islamic Ummah and all the free peoples of the world in expressing solidarity and support for the holy objective of freedom of Palestine...........

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EXCHANGE RATES
Pakistan Open Market Rates

BUYING SELLING
US $ 98.9 99.15
UK POUNDS 167.6 167.85
KUWAITI DINAR 349.95 350.2
SAUDI RIYAL 26.2 26.45
UAE DIRHAM 26.7 26.95
CANADIAN DOLLAR 91.7 91.95
EURO 132.85 133.1
JAPANESE YEN 0.98 0.99

MORE RATES

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SECURITY
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AGGRAVATING SECURITY CHALLENGES IN BALOCHISTAN
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Today, Pakistan faces an insurgency-like situation in its north-west and south-west. Pakistan Army is engaged in a military offensive against Taliban militants in its northwestern tribal belt along Afghanistan border. On the other hand, the country is going through worst law and order in the restive Balochistan, which still remains the biggest challenge for the government. The least developed province has paid heavy costs in terms of collateral damage, economic slowdown, social chaos for the ongoing military operation launched in December 2005............

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CAPITAL MARKETS
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STOCK MARKET ROUND UP
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With earnings season in full swing, the KSE-100 Index rose to 30,474 points, up 0.83%WoW during this past week. Top performers for the week included AKBL, ICI, AGTL and HCAR. The losers were KEL, SSGC, DGKC and PSMC. Among major news flows during the week were: 1) SBP’s decision to keep the discount rate unchanged 10% and 2) approval of some infrastructure projects including the 6,600MW Gadani Power Park and 1,320MW Bin Qasim Power project. Other news impacting market sentiment included 1) sale of 75.86% equity stake of LPCL to BWCL for US$217 million, 2) appointment of financial advisors for offloading FESCO, PIA, NPGCL and NPCC shares and 3) increased uncertainty in global markets due to the jet crash in Ukraine and deteriorating situation in Gaza...........

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11July14 18July14 25July14
NASDAQ

4,396.20

4,363.45

4,472.11

H.SENG

23,233.45

23,454.79

24,195.34

SENSEX

24,997.78

25,641.56

26,126.75

NIKKEI

15,164.04

15,215.71

15,457.87

CAC-40

4,319.24

4,307.15

4,380.91

DAX

9,664.35

9,682.56

9,755.35

FTSE

6,684.30

6,707.11

6,811.86

S&P

1,964.68

1,958.12

1,987.98

DJIA

16,915.07

16,976.81

17,083.80

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As On July 25, 2014

TENOR

BID

OFFER

1 Week

9.63

10.13

2 Week

9.66

10.16

1 Month

9.74

10.24

3 Month

9.92

10.17

6 Month

9.93

10.18

9 Month

9.93

10.43

1 Year

9.95

10.45

2 Year

11.69

12.19

3 Year

11.97

12.47

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RESEARCH CORNER
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TIME TO REAP BENEFITS OF HIGH QUALITY GROWTH OF RICE

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The country is a leading growers and exporter of IRRI (white rice) and Basmati rice. Rice production consists 40 percent of Basmati kind and 60 percent of coarse kinds. This crop grades as second amongst the staple food grain crop in the country and it is a key source of foreign exchange earnings. During July-March FY14, rice export earned foreign exchange of $1.667 billion. During FY14, rice was cultivated on a region of 2,789 thousand hectares, 20.8 percent greater than previous years’ region of 2,309 thousand hectares. The country grows a high quality of rice to complete the local requirement and also for exports. Presently, this crop description for 2.7 percent of the value added in agriculture sector and 0.6 percent of GDP of the country. ..........

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BUSINESS QUOTATIONS
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This is an exciting time for farmers and ranchers of all types and sizes as agriculture is a bright spot in the American economy. In 2011, agricultural exports hit a record high and producers saw their best incomes in nearly 40 years.
TOM VILSACK
America is becoming more and more dependent upon imports from foreign manufacturers than we are exports from our country in all fields: in appliances, in clothing, even food. This year America may become for the first time in its history a net food importer.
MARCY KAPTUR
U.S. exports to China have more than quintupled since China entered the WTO and have grown more quickly than imports. In fact, China is America's fastest-growing export market.
HENRY PAULSON
My point is this, the Government made this decision to ban totally beef exports into Indonesia, even to compliant abattoirs and this will have enormous consequences for the beef cattle industry across Australia.
GOVERNMENT, POINT, DECISION
China's idea of fair trade is government subsidies of its textile and apparel exports to the United States, currency manipulation, and forgiveness of loans by its government banks.
VIRGINIA FOXX
Diplomacy in a sense is the opposite of writing. You have to disperse yourself so much: the lady who comes in crying because she's had a fight with the secretary; exports and imports; students in trouble; thumbtacks for the embassy.
CARLOS FUENTES
But the key thing is that Iraq, while it's got very large oil reserves, has marginalized itself as an oil exporter and these days its exports are only about one tenth that of neighboring Saudi Arabia.
DANIEL YERGIN

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COVER STORY
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INSUFFICIENT FOREIGN EXCHANGE RESERVES
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It is beyond any doubt that Pakistan suffers from the most contentious issue, highly in adequate foreign exchange reserves. Even record high remittances, entering an agreement with lender of last resort -- International Monetary Fund (IMF), extension of US$1.5 billion credit from Saudi Arabia and borrowing at very high interest rate have failed in building a solid base.

Mother of all evils is highly unmanageable trade current account deficit, mainly because of miniscule foreign direct investment (FDI), dismal exports and above all ever-rising fuel import bill.
Unless the government ensures uninterrupted supply of electricity and gas at affordable cost, Pakistani exporters will not be competitive in the global markets. Global gestures like granting GSP Plus status by the European Union may offer opportunities but failure of the policies to come up with ‘business friendly’ policies is eroding competitiveness of local manufacturers in the global markets.
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THIS WEEK TOP STORIES
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OGRA SEEKS INCREASE IN PETROL, DIESEL PRICES (DAWN NEWS)
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RUSSIA'S SURPRISE INTEREST RATE RISE (BBC NEWS)
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GST REMOVAL CAN REDUCE AGRI INPUTS RATE BY 20 PER CENT (THE NATION)
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PAKISTAN, INDIA TO NEGOTIATE TRADE DEAL AFRESH (BUSINESS RECORDER)
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GOLD SET FOR SECOND WEEKLY LOSS ON STRONG ECONOMIC DATA (GULF NEWS)
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PUNJAB EYES 10M COTTON BALES FROM 5.6M ACRES (DAWN NEWS)
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FBR EXEMPTS FOREIGN MISSIONS FROM ADVANCE TAX ON AIR TICKETS (THE NATION)
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PAGE REPORT
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IRAN-PAKISTAN GAS PIPELINE GETTING LIFE AGAIN
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The government has offered fresh proposals to Iran for financing and construction of Pakistani part of the gas pipeline project, while the new government in India has also shown interest to rejoin the gas pipeline project, it is leant. It may be recalled that due to the U.S. pressure, India had withdrawn from the project in 2009.
The Iran-Pakistan Gas Pipeline project was signed in 1995 between Pakistan andIran still in the doldrums on the back of US pressures and sanctions on Iran.
The Pakistan has presented new proposals to the Iranian Oil Ministry for the settlement of a dispute over the implementation of Iran-Pakistan (IP) gas pipeline project.

The proposal was recently submitted to Oil Minister Bijan Namdar Zanganeh, the ministry's website reported.......

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