LAHORE: All Pakistan Textile Mills Association (APTMA) Punjab Chairman Adil Bashir on Monday urged the government to direct Sui Northern Gas Pipelines Ltd (SNGPL) to issue revised gas bills to the eligible industry at the rate of US $ 6.5/MMBTU all inclusive of gas consumption for both captive and processing use.
Addressing a press conference here at APTMA House, he also called for the issuance of a notification regarding supply of electricity at 7.5 cents/kWh, which would enable the industry to focus on increasing exports and undertaking new investment initiatives. APTMA Central Chairman Syed Ali Ahsan was also present.
Adil Bashir claimed that delay in implementation of energy affordability initiative of the government for revival and growth of the textile industry in Punjab was causing concern among APTMA members as the industry was being billed notified price of RLNG US $ 12.5389/MMBTU instead of US $ 6.5/MMBTU for the month of October 2018.
He said US $ 6.5/MMBTU was not inclusive of GIDC (Gas Infrastructure Development Cess). He added that the industry was not in a position to pay the bills and required an immediate intervention from the government.
The APTMA leader said the government, under the visionary leadership of Prime Minister Imran Khan, had announced regionally competitive energy (both gas and electricity) for the exporting industry falling in the five zero-rated sectors. The Economic Coordination Committee (ECC) in its meeting held on September 16, had decided to provide gas to the exporting industry w.e.f September 27, 2018, he mentioned and asserted that ECC had also decided that gas supply to the industrial sector (exporters of five zero-rated sectors and their captive powers (clarified in OGRA notification dated October 2018) namely; textile (including jute), carpets, leather, sports, and surgical goods) in Punjab would be revised from 28:72 to 50:50 for domestic gas and RLNG respectively.
The weighted average gas tariff of such consumers, he said, would be the US $6.5/MMBTU. Gas price of similar consumers of SSGC and those of SNGPL in Khyber Pakhtunkhwa would remain unchanged, he maintained. Furthermore, the priority of allocation of system gas would be revised to bring the five zero sectors at second priority along with the power sector.
Adil Bashir said the industry had appreciated the industry-friendly approach of the government, as it would increase exports, revive closed capacity and encourage new investment to produce an exportable surplus. However, it was unfortunate that interpretation to implement above decision was not only being delayed but also being conveyed contrary to the decision of the ECC and vision of the government, he opined.
The Ministry of Finance had issued Office Memorandum dated 2nd November 2018 for SNGPL to implement it.
The exporting industry, he said, had reservations, as the decision of ECC was being implemented from 16th October 2018 instead of 27th September 2018. Also, the captive power of the five zero-rated sectors was not being provided incentive terms of the decision. He urged the government to intervene immediately and give an end to the uncertainty prevailing all across five zero sectors.
VW, Ford confirm alliance
DETROIT: Volkswagen and Ford announced today that the automakers had agreed to an alliance to jointly develop commercial vans and pickups starting in 2022 in a bid to reduce costs.
The announcement came after more than six months of talks between the car giants which has also included discussions around autonomous and electrification technologies. The companies said they had agreed to “investigate collaboration on autonomous vehicles, mobility services, and electric vehicles and have started to explore those opportunities.”
The deal reached between the American and German automakers to develop commercial vans and medium-sized pickups as early as 2022 does not involve cross-ownership, according to a joint statement.
Tokyo’s Nikkei index closes up one percent
TOKYO: Tokyo’s benchmark Nikkei index jumped nearly one percent today as investors welcomed a weak yen and a broader rally in Asian shares.
The Nikkei 225 index rose 0.96 percent, or 195.59 points, to close at 20,555.29 while the broader Topix index was up 0.85 percent, or 12.99 points, at 1,542.72.
Tokyo shares opened lower after a public holiday the previous day with the market weighed by fears over a slowdown in the global economy following disappointing Chinese trade data.
Figures released on Monday showed drops in China’s exports and imports, fuelling fears of a global slowdown and sending world stocks slumping.
But shares entered positive territory by noon as the yen gradually declined against the dollar, boosting investor sentiment.
The dollar bought 108.69 yen in afternoon trade against 108.17 yen in New York on Monday afternoon.
Investors were also encouraged by gains in Chinese and other Asian shares, brokers said.
“Investors continued buying back shares which fell sharply recently,” said Daiwa Securities senior technical analyst Hikaru Sato.
“There still is room for buying as the market is recovering from the recent plunge,” Sato told the Media.
In individual stocks trade, Hitachi added 7.08 percent to 3,583 yen after soaring 8.63 percent on Friday as risk-averse investors welcomed a report in the Nikkei business daily that the company had decided to freeze its plan to build a nuclear power plant in Britain.
Olympus, which jumped nearly 10 percent on Friday following the appointment of a new CEO, added 17.47 percent to 4,705 yen.
IT investor SoftBank Group gained 0.14 percent to 7,709 yen, and Nissan edged down 0.19 percent to 903.7 yen.
KATI for spreading awareness about e-Commerce
KARACHI: President of Korangi Association of Trade and Industry (KATI) Danish Khan said that there is a need of time to spread awareness among business community regarding e-Commerce.
He was addressing a seminar on “Digital Transformation for Supply Chain (Manufacturers, Wholesalers, Distributors & Retailers) at KATI, a statement said on Monday.
On this occasion leader of MQM-Pakistan Faisal Subzwari represented Federal Minister for Information Technology and Telecommunication Dr. Khalid Maqbool Siddiqui.
Senior Vice President Faraz-ur-Rehman, Vice President Maheen Salman, Chairman Information Technology Standing Committee Salman Aslam and other members of KATI attended the seminar.
Ease of doing business advisor to IT Minister Dr. Shahab Imam, SESSI Commissioner Kashif Gulzar, CEO Jazzba Nadeem Hashmi, on e-commerce Platform for manufacturers & Wholesale, highlighted the importance of Business to Business marketing services.
President KATI Muhammad Danish Khan briefed about the role of Korangi Industrial Area in the economy of Pakistan and shared that the future of Pakistan is in e-commerce.
It was agreed that KATI will organize a similar seminar which would help members of KATI to find their business potential in the ever-growing sector of e-commerce.