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Aug 07 -13, 2000

Minister hints at auto-parts export

The government is evolving a policy-cum-strategy in consultation with car assemblers and vendors to have a long-term and broad-based vision of the whole engineering sector.

Minister for commerce, industries and production Razak Dawood held a meeting with leading car manufacturers on Tuesday and asked them whether they will like a tariff driven strategy or a time-frame deletion programme. He asked them to expedite deletion programme.

The commerce minister urged the industry to come up with a new direction for the industry which encompasses the export of auto-parts.

He assured the car industry all-out help from the government and offered support for export.

"Growth of auto-part industry will not only boost export rather it will also generate employment which is one of the prime objective of the present regime", the minister said.

He urged car manufacturers to come up to the expectation of the nation and expedite the indigenization process and discussed with representatives the problems of the industry and achieving maximum indigenization of the product.

Representatives of car vendors i.e. Toyota, Suzuki, Honda, Fiat, Nissan, Hyundai etc. participated in the meeting. Secretary industries and production, vice chairman, Engineering Development Board and other officials of the ministry of industries and production were also present.

The car manufacturers' representatives expressed views about deletion programme and the participants discussed the possibility of auto-parts exports.

They discussed the problems like smuggling, under-invoicing,mis-declaration of the autoparts with, connivance of dry port authorities which had harmed the vendor industry and loss of government revenue.

IMF objects to import of industrial inputs

IMF experts have objected to the facility of undocumented trade of industrial raw materials allowed in Pakistan on payment of 1.5% extra sales tax under the Finance Ordinance 2000.

According to official sources, the objection "of serious nature" has been communicated to the Central Board of Revenue after examination of the changes made in the tax structure in Federal Budget 2000-2001, over the last one month. "They have objected to this facility as the rate of extra sales tax has been reduced in the new budget from 3% last year to 1.5% for the new financial year, and that Pakistan is the only country with such a huge volume of undocumented industrial inputs", said a senior CBR official.

The IMF experts have pointed out that more than 90% of 350,000 tons of plastic industry's raw materials annually imported falls into the hands of fake buyers, who sell it to the manufacturing units evading taxes and duties by keeping their inputs undocumented.

Exemption on import of goods for re-export

The Central Board of Revenue has announced exemption from duty and tax on import of textile goods for re-export after value addition.

The announcement was made on Thursday by Member GST, CBR, Sarfraz Ahmad Khan, while briefing newsmen on the latest changes made in the tax policies and performance in collection of federal revenues.

He said the facility of exempted import of textile goods on temporary basis is being offered for boosting the forex resource for Pakistan and for maximizing the capacity utilization of the textile industry. The facility would be formally notified shortly.

It would, however, be conditioned to certain provisions of the sales tax law laid down for the temporary import of exportable goods for the purpose of value addition.

Shell cuts fuel oil price by 7.2%

Shell Pakistan has reduced its fuel oil price for the second time in seven days by 7.2%, a company spokesman said Wednesday.

Pakistan State Oil, the main supplier of fuel oil, slashed prices by 14% on July 25, prompting Shell to shave 6.4% off its price the day after.

Oil experts said the fall in oil prices was a direct impact of declining international prices in recent months.

The price fixed by Shell on Wednesday was 10,120 rupees (189.6 dollars) per tonne, including 15 per cent sales tax.

PIA will sell off four jumbos

PIA has decided to sell off four of its six jumbo 747 aircraft now parked at Karachi for want of spare parts and repairs, Managing Director Sher Afgan Malik said.

The new MD told that two of these six jumbos would be cannibalized to make the other four operational before they are put up for sale.

Jeddah Life Style Fair-2000

Pakistan will be participating in 'Life Style Fair Jeddah', scheduled to be held from Oct 16 to 20, 2000, the EPB announcement said.

Exporters have been advised to submit their applications, along with participation fee of Rs30,000, latest by Aug 15.

The EPB said all arrangements in this behalf have already been finalized as 200 sq mts space for Pakistani pavilion has been booked.

Govt apathy hits leather exports

Persistent neglect of the livestock sector in development allocations and disease control in animals are major factors for stagnation in leather exports, which have fallen by about a quarter in the last five years, according to exports.

In 1994-95, the country had exported leather and leather manufactures worth about $648 million. Ever since then, their exports have only declined. In 1999-2000, these stooped to all time low at $497.35 million, down over 7 per cent from 1998-99. Their contribution to overall exports, consequently, registered a sharp decline from 8.0 per cent to about 5.8 per cent during the same period.

Shanghai fair

Pakistani textile exporters will participate in 6th three-day Intertextile Fair Shanghai, China from Oct 18, says an announcement.

Pakistan will participate in this fair for the first time which had a record number of 16,000 trade visitors and 320 stalls last year. The leading international fair organizer Messe Frankfurt has been organizing Shanghai fair.