Optimism on CSF compensation temporary: ACCI
Govt asked to initiate reforms, take economy seriously
Islamabad: Dated: July 15
The Attock Chamber of Commerce and Industry (ACCI) on Sunday said the optimism following expected release of the held up Coalition Support Funds of $1.2bn by the US is temporary.
Markets have responded positively, rupee has strengthened while dollar is retreating after reopening of Nato critical supply route which raised hopes for CSF reimbursement that can help reduce financial pressure on the government, it said.
Release of the held up money will boost non-tax revenues, reduce government's reliance on borrowings and shrink current account gap for some time, said Tariq Mehmood, President ACCI while talking to business community here.
The relief will be temporary, sustainable relief can only be ensured if rulers pay some attention to the economy which has taken a backseat since long, he added.
He said that ignoring good governance and continued focus on publication of currency will not only push inflation up but also continue to deprive private sector of credit.
Pakistan will continue to face threat of cut in international credit rating if it failed to introduce meaningful reforms, he warned.
Tariq Mehmood who is also Chairman FPCCI Standing Committee on Health,
And Director Pak-UK Business Council said that domestic debt has touched mark of 7.5 trillion rupees, energy crisis is pulling economy down and private investment has been reduced by 12.5 per cent while foreign investment is dismal.
Apart from remittances, country needs some eight billion dollars annually to remain afloat otherwise forex reserves will come under severe pressure and country will not be able to offer jobs to unemployed whom number is swelling by two million per annum, he said.
Government should take note of the gloomy situation and initiate reforms otherwise situation will become out of control.
The key to resolution of problem is not in aid or loans but trade, reforms and good governance, said Tariq.
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Tariq Mehmood
Cell 0300-5491224---Off: 057-2703337
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France striving for GSP plus status for Pakistani products
French carmakers interested in Pakistani market
Dated: July 15
Islamabad:
Ambassador of France to Pakistan Philippe Thiebaud has said Paris is willing to cooperate with Islamabad to enhance its exports to the European markets.
He said that France is striving for a Generalized System of Preferences (GSP) plus status for Pakistani products. Moreover, we are helping Pakistan resolve energy crisis by financing dams and introducing energy efficiency practices, he said.
Ambassador Thiebaud said that promoting relations with Pakistan which is one of the largest trade partners of the European Union is the priority of my country.
This he said this while talking to Chairman FPCCI Standing Committee on Diplomatic Affairs Sheikh Humayun Sayeed. Chairman Media FPCCI Malik Sohail Hussain and Head of Economic Department, French Embassy Dominique Simon were also present on the occasion.
Among EU, France has second largest presence in Pakistan after Germany, 80 French companies have subsidiaries here while 180 companies of two countries are involved in bilateral trade and we have no complaints, the envoy said.
He added that French automakers have shown interest in Pakistani market while many other big companies have recognised Pakistan as a great investment destination.
Thiebaud said that over 600 Master's and PhD students are currently studying in France while more is being done to facilitate Pakistani students.
While acknowledging the contribution of private sector in boosting relations, he said that social, cultural, political and business exchanges are imperative for the development of ties.
At the occasion, Chairman FPCCI Committee on Diplomatic Affairs Sheikh Humayun Sayeed said that Pakistan has the potential to export quality fruits, rice, fashion garments, leather and sports goods.
French brands have proved their worth in local market while many they have found situation favourable for long-term investment, he said adding that we should have access to French markets.
Sayeed called for enhanced French language programmes in Pakistan which can open opportunities for Pakistan in 34 countries where French is the official language.
Malik Sohail Hussain said bilateral trade was growing by 20 per cent per annum since few years but now the energy crisis has declined it. France should come forward to help overcome energy crisis as she has solid expertise in the coal power generation.
Government should initiate efforts to meet 27 conventions on good governance to qualify for GSP plus which will boost economy and collections and reduce unemployment, said Sohail.
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Malik Sohail Hussain
Cell 03215155500 and 03335155300
FPCCI +92-51-2251891-3. Fax +92-51-251894
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Call for introduction of IPO grading system in Pakistan
Investors' confidence can move the stagnant economy
Dated July 15
The Pakistan Economy Watch (PEW) on Sunday asked the government to introduce initial public offerings (IPO) grading system in Pakistan to restore confidence of investors and boost dry market.
IPO grading serves as a tool for additional information and assistance to investors enabling them to take proper decisions after getting realistic picture of a company.
This service is very useful to retail investors who seek to invest in companies that are little known or unknown in the equity markets, said Dr. Murtaza Mughal, President PEW.
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A grade is not a recommendation to buy shares but only an independent, reliable and logical evaluation of the fundamentals of a company going in for an IPO, he said.
Dr. Murtaza Mughal said grading covers different aspects of the issuing company like management's competence, marketing and other strategies, growth prospects, operating efficiency, financial flexibility, asset and accounting quality, and profitability.
It also covers situation of the economy, business environment for the company and risk factors which helps investors to make an independent judgement, he added.
He said that IPO market can get a boost if it is made mandatory for the companies to get a rating before public offering which must be disclosed to the regulator and the investors.
Protection of small investors can be ensured if the grading details are included in the company's documents and in the advertisements; he said adding that all the documents should be open for inspection by potential investors before any IPO.
Dr. Murtaza Mughal said that Securities and Exchange Commission of Pakistan, one of the most important departments of the country, can initiate steps making grading obligatory for all the companies interested in getting approval for an IPO.
Such steps will restore confidence of the small investors in the stock market will give a boost to the economy.
Presently companies are left with no option but to opt for costly borrowing from the commercial banks which sometimes result in complications, he said.
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Dr. Murtaza Mughal
Cell: 0321-5157671
