By Shahid Iqbal
Wednesday, 12 May, 2010
The State Bank reported on Tuesday that the remittances rose by $951 million to $7.306 billion during July-April 2009-10 over the same period last year helping the country to meet its trade and current account deficits.
The remittances were the second biggest foreign exchange source after export proceeds. The State Bank, Ministry of Finance and Ministry of Overseas Pakistanis had undertaken a joint initiative called 'Pakistan Remittance Initiative (PRI)' with a view to facilitating the flow of remittances through formal channels.
The State Bank said during the first 10 months the monthly average remittances reached $730 million compared to $635 million of the last year.
In April 2010, the remittances registered an increase of 8.35 per cent or $58.25 million to $755.77 million when compared with $697.52 million remitted in the same month last year.
However the April remittances were on the lower side when compared with $763.7 million sent in March 2010, the first month which showed rise after five months since October 2009.
Remittances got very important position in the backdrop of plunging foreign exchange reserves since the second quarter of 2007-08 leaving no option for the country but to accept the harsh IMF conditions for a loan package of $11.3 billion to avoid default on foreign payments.
The country has so far received about $7.6 billion from the IMF which boosted the total foreign exchange reserves to over $15 billion and stabilised the exchange rate.
Meanwhile, the International Fund for Agriculture Development (IFAD), a specialised agency of the United Nations, in its quarterly Financing Facility for Remittances newsletter has reported
According to the newsletter,
Textile leaders extend strike
Dawn Report
Wednesday, 12 May, 2010
In
The salient feature of the strike was that it was joined for the first time by large textile establishments, which had remained aloof of the shutdowns in the past.
The owners of these industrial units with export volume in millions of dollars were also seen holding protest rallies outside their units in Site, Korangi, F. B. Area and
But as the government did not respond and there was no contact from the high officials or the minister with the protesting industrialists, the leaders while addressing media at the Karachi Press Club in the afternoon declared to extend the shutdown till their demands are met.
"Not a single container was exported on Tuesday as all industrial units in the city and elsewhere in the country, including Faisalabad and Multan remained closed to observe the strike call given by their leaders," Jawed Bilwani said.
However, some shipments, which are due, will be allowed on Wednesday so that the country does not lose foreign exchange, they added.
The leaders said that already a large number of workers had been laid off and as the yarn is not available more units will soon start cutting their production or close down. This will result in total collapse of the industry.
"We managed to control the labour and requested them to restrict their protest rally around their industrial units but in future this would not be possible if the government does not accept the demand.
The textile industry leaders accused the Aptma of distorting facts and figures and misleading the government machinery.
The leaders, who addressed the press conference included Mehtab Chawla, Rafiq Godial, Waqar Alam, Noor Ahmed, Major (retd) Mustajab, Kamran Chandna, Mohsin Ayub Ansari.
Prominent among those held protest rallies outside their units included Shabir Ahmed, Naseem Sattar, Saqib Bilwani, Naqi Bari, Manzar Alam and Waqar Alam.
The call for countrywide shutdown by value-added textile sector on Tuesday fetched mixed response from manufacturers in and around
A spokesman for the value-added textile sector said the trade associations leaders and workers brought out rallies in all major cities. But a leading knitwear manufacturer told Dawn the producers did not close down their factories because it could result in delays in their export shipments.
A large number of industrialists and factory workers participated in peaceful rallies and chanted slogans in support of their demands. They were holding placards and banners demanding from the government immediate action to resolve the yarn crisis to protect jobs and value-added exports.
Business activities remained suspended at Clock Tower bazaars, Khurrianwala Road, Sheikhupura Road, Sattiana Road, Lorry Ada Road and other areas owning the protest rallies took out against the yarn crisis by labourers and industrialists of value added textile sector.
Shopkeepers pulled theirs shutters down fearing wrath of the protestors and to avoid any untoward incident and damaged to their property on Tuesday.
Police baton charged to disperse the protestors at the Millat Chowk where they set ablaze the office furniture of the Haji Abad sub-division of Fesco. The stick-wielding enraged workers also broke the windowpanes of a bus on
The Value Added Textile Forum comprising sixteen different trade organisations gave strike call for Tuesday against the unbridled yarn export.
Responding to the call, almost eighty percent factories of the value added sector including printing mills, hosiery, dying, sizing, stitching and home textile units remained closed and their hundreds of workers took part in the rallies.
The Pakistan Textile Exporters Association (PTEA), leading the protest drive, claimed that strike was observed by 300 home textile units, 450 printing mills, 1,100 hosiery units, 300 dyeing units, 400 sizing units, 500 stitching units and hundreds of small ancillary units
Cotton market stays lifeless
Wednesday, 12 May, 2010
KARACHI, May 11: The cotton market on Tuesday lacked normal trading interest as spinners and mills kept to the sidelines most of the time owing to strike called by the ancillary industry throughout the country against higher prices of cotton yarn.
Analysts said the demand to ban cotton yarn export even for limited period may not be possible as it involves foreign exchange earnings, some other measures could be taken to meet the demand of the industry in the form of some incentives such as rebate.
After having purchased cotton at record prices it was not possible for spinners to sell yarn at lower rates and leading among them were said to be also planning a one-day shutdown, spinners said.
However, the government could ban cotton export till the arrival of new crop, which in turn may ease cotton prices and the benefit could be passed on to the value-added industry, market sources said.
The private sector exporters registered 0.966 million bales export contracts with the Trade Development Authority of Pakistan (TDAP) up to April 7 against which 0.794m bales had already been shipped, they added.
"The crisis-like situation on the textile front may hurt the country's export drive as contenders involved in the battle of wits together earn about 65 per cent of the total forex earnings," they said.
Meanwhile, the
No business was reported in the ready section because of strike by the value-added sector.—Staff Reporter
Value-added textile units go on strike: more than 60,000 powerlooms shut down
RECORDER REPORT
KARACHI (May 12 2010): More than 5000 textile factories of value-added textile sector observed strike on Tuesday, pressing their demand for complete ban on export of yarn and cotton from the country which has brought the value-added textile industry on the brink of disaster.
Thousands of factory workers and owners jointly took out protest rallies, blocked the traffic on Sheikhupura Road and Millat Road and burnt an office of Faisalabad Electric Supply Company (Fesco) situated at Raja Road, Gulistan Colony. However, employees working in the building succeeded to save their lives.
At various places police resorted to lathi charge to maintain law and order, and more than two dozen protestors were arrested. The strike was observed by 300 home textile manufacturing units, 450 textile printing mills, 1100 hosiery units, 300 dyeing units, 400 sizing units, 500 stitching units and hundreds of small ancillary unit.
Thousands of workers of these units came out of their factories in Khurrianwala industrial belt carrying black flags with protest written on them and banners and placards of 'Save the value-added industry', 'Save the country' and 'Immediate ban on export of yarn and cotton'. The workers proceeded to main Chowks of Sheikhupura Road, blocked traffic, and raised slogans demanding ban on export of cotton and yarn.
Chanting slogans, the protest rally marched towards Millat Chowk and joined the hosiery workers' rally. These rallies blocked traffic and burnt tyres. Police restore to lathi charge, injuring 10 workers and taking into custody 20 workers. From Millat Chowk, the rallies marched towards District Council Chowk where rallies from other parts of the city like
At District Council Chowk, sit-in and a demonstration was held. Here the rally was addressed by the leaders of value-added textile associations. Chairman of Pakistan Textile Exporters Association Khurram Mukhtar said that cotton and yarn were the basic and most essential raw material of the value-added sector constituting 40 percent of total input.
The value-added textile industry is unable to operate if this basic raw material is not available. Over the last one year not only the prices of cotton and yarn have high jumped but also the commodities are not easily available in the domestic market, as the spinners have hoarded huge quantities for export purpose, he said.
This export of life line raw material of the value-added textile industries to
He said that if the whole industry collapses, 18 million workers and their families would be deprived of their bread and morsel. Rather the daily wage earners and workers are inclined towards suicides. Muhammad Akram Ansari, chairman of standing committee of National Assembly demanded total ban on export of yarn and cotton to sustain the national economy and value-added textile industry in the country.
He said, that value added industry was lifeline and backbone of the national economy. This sector is earning 60 percent of total foreign exchange of the country while the 40 percent of the labour force is being employed by this sector. The government has not paid heed to this sector, which enjoys the vital importance in the economy and provides millions of jobs to labour force. Furthermore the government has added burden on the textile sector due to heavy load shedding resulting in reduced productivity and out put of manufacturing unit, he said.
The matter has been complicated by a vested group of unpatriotic elements. They have exported cotton and yarn at the cost of the domestic industry. "They have provided cheaper raw material to our business rivals, strengthening their industry and destroying home industry," he added.
Regarding scarcity within the county as well as skyrocketing prices in domestic markets, he said that value-added sector has been drawing attention of the government towards this serious problem for a long time but the government did not pay proper attention towards this crisis. He said that the situation has become so dismal that the vale-added sector has been constrained to resort to strikes and protestation.
He warned that if value-added industry closed down a new storm of unemployment would be unleashed and whole situation would become topsy-turvy. He stressed upon the government to come out of the dreams and to take practical measures to save this precious foreign exchange sector.
He warned that in case value-added sector faced the disaster then the county would also suffer irreparable damage. In
The rally was led by Khaliq Qandeel Ansari Secretary General of All Pakistan Power Looms Association (APPLA). He said, "We are forced to observe the strike today across the country and we would hand over the keys of our industry to prime minister because the entire textile industry, except spinning sector, is sinking." He threatened to extend the strike for indefinite period.
He appealed to the government last week to impose a ban on the export of cotton yarn and raw cotton, otherwise the entire value-added textile sector would be forced to close. He said: "Only two months are left in the arrival of the new crop, but we are still awaiting some relief."
He added that only he suffered a loss of $1.8 million during last nine months due to unavailability of yarn. Muhammad Asim Shah, a leader of value-added textile forum (VTF), said that the government should not change the industry into graveyards and render 18.1 million workers jobless.
He said that chairmen of at least 16 value-added textile associations, including Pakistan Apparel Forum (PAF), Towel Manufacturers Association, Council of Loom Owners Association, Pakistan Textile Exporters Association, Pakistan Cloth Merchants' Association, All Pakistan Sizing Industry Association, Pakistan Cotton Power Loom Association, All Pakistan Textile Processing Mills Association, Pakistan Knitwear and Sweater Exporters Association, Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Denim Manufacturers and Exporters Association, All Pakistan Bed Sheet & Upholstery Manufacturers Association, Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) and Pakistan Cotton Fashion Apparels Manufacturers and Exporters Association (PCFA) are unanimous to observe the strike.
Asim briefed the newsmen that more than 18.1 million people would be rendered jobless with the closure of value-added sector like garments manufacturers, hosieries, towel, napkin, bedware, tableware and other value-added items and
He said that if a ban on export of cotton yarn, up to 32 single counts, was not imposed or regulatory duty was not imposed by the Cabinet Committee on Textile, all value-added textile units would have no alternative but to resort to complete shutdown as a mark of protest.
He expressed strong reservations about the government's inactive policy, lack of concern and unrealistic and impracticable decision of the Cabinet Committee on Textile to abolish duty on the import of cotton yarn. Production of cotton crop has declined globally, showing shortfall of 4.8 million bales. World's largest exporters of cotton yarn are
Last year, the world was faced with recession while production of cotton was sufficient, he added. However, this year, cotton production has declined. Last year, local consumption of cotton yarn was 80 percent of the production while 20 percent was exported.
During financial year 2008-09, 480 million kg of cotton yarn up to 32 single count was exported, meaning 40 million kg per month, while this year export of cotton yarn is around 60 million kg per month. "This means almost 50 percent of cotton yarn up to 32 single count has already been exported," Asim said, "It is an irony that while cotton yarn is being sold locally to the value-added textile sector at $2.35 per kg, it is exported at $1.92 per kg."
He rejected the decision of the cabinet committee to scrap duty on import of cotton yarn, calling it an eyewash as cotton yarn could be imported by value-added textile exporters under the duty and tax remission for export (DTRE) scheme. Asim said that members of Value-added Textile Forum (VTF) have unanimously demanded a ban on export of cotton yarn up to 32 single count, otherwise the industry would be shifted to
He suggested that the government should encourage export of cotton yarn of above 32 single count as much as that could be exported. "On the one hand, the government is wooing foreign investors while doing everything possible to drive local investors away," one participant of the meeting said.
Asim said that with the export of yarn the fertiliser subsidy provided by the government to the farmers is being passed on to
He said with the closure of value-added textile mills, all chains connected with that business would also be shut down. He called the dispute between the spinners and the value-added sector an economic massacre of 2.5 million workers who are employed in the industry.
All associations of value-added textile sector, according to him, urged the government to strictly maintain the benchmark of monthly cotton yarn export to 35 million kilograms to avert serious crisis to value-added sector, which is already facing high pressure to survive.
In
A spokesman of the value added sector said that over 12,000 value-added units including towel, cloth, hosiery, readymade garments, fabric, bedwear, looms, sizing, cotton fashion and processing stopped production throughout the country as a mark of protest against non-availability of raw material (cotton and cotton yarn).
They took out protest rallies in the major centres of value added textile products, and elsewhere demanding complete ban on export of yarn so that value added products could be exported, employment of skilled and semi-skilled workers should sustain and more foreign exchange could be earned.
They said that value added textile sector is the largest employer of the manpower in the country. "On the other hand by exporting yarn to
They said the value added sector has been crippled by prolonged load shedding hours, energy crisis, and shortage of raw material and the government has failed to solve any of these problems. "Non-availability of yarn has put our value added sector to corner; government should realise sensitivity of the issue and impose complete ban on the export of yarn, which is a badly needed not only for running wheel of the textile industry but also to keep hundreds of thousands of workers on jobs.
Thousands of industrialists and factory workers participated in the peaceful rallies throughout the country and chanted slogans in support of their demands. They were holding placards and banners demanding from the government immediate action to resolve the yarn crisis otherwise, it will be too late as thousands of workers could lose their jobs. On the other hand All Pakistan Textile Mills Association Aptma claimed that the spinning industry is providing cheapest yarn to the domestic industry as compared to its competitors ie
In a statement it said any move to impose regulatory duty on the export of yarn will render closure of 70 percent of the spinning industry, providing yarn to the whole value added industry, Aptma is left with only 15 days' cotton and it has to import cotton from international market at world prices of 95 cent per pound for next 90 days till the new domestic cotton arrives in local market.
It said regulatory duty on yarn export will disrupt the entire textile value chain, there the government should continue the free market mechanism. In
Around 1300 to 1400 industrial workers gathered at the office of Site Association of Industry (SAI) along with factories' owners to show strength and record protest. Likewise, around 3000 to 4000 industrial workers gathered outside the office of Federal B Area Association of Trade and Industry (FBAATI), and similar number of industrial workers gathered at North Karachi Association of Trade and Industry (NKATI), beside units' owners.
The workers chanted slogans against export of yarn, and demanded ban on its export to keep local value-added industries operating. They expressed fear that they may lose their jobs with closure of the value-added industries. However, the demo remained peaceful and no report of any untoward incident was received from any industrial area.
Alkaram Industries, Mehtab Chawla and Chairman Site Super Highway, Mohammad Ilyas demanded of the government to impose export duty on export of yarn to curb its export. They urged the government to save the value-added sector from collapse. The industrialists were of the view that it is a token strike and value-added sector may decide to go on indefinite strike on government's failure to stop yarn export.
Chairman of FBAATI, Shahid Ismail, said that in his industrial area around 70 percent industrial units are of value-added sector and claimed that all of them remained closed in protest against export of yarn. He said that cotton is white gold and its must not be exported in raw shape. It should be exported after value-addition. He said that the government should provide level playing field so that the value-added sector should get yarn at reduced price.
Chairman of SAI, Salim Parekh, said industrial units in his industrial estate remained closed to record protest against export of yarn. He urged the government to save the value-added industry from closure and layoff of workers. He demanded of the government to impose ban on export of yarn.
Copyright Business Recorder, 2010
Shutter-down for indefinite period
ANWAR KHAN
KARACHI (May 12 2010): Manufacturers-cum-exporters of value-added textile sector on Tuesday announced shutter-down strike for an indefinite period until cotton and yarn exports are banned, while hundreds of manufacturing units already remained closed in protest.
Speaking at a press conference at Karachi Press Club, representatives of different value-added textile associations warned the government of "tsunami of unemployment" that could strike the country's fragile economy if their operational units succumbed to cotton and yarn scarcity. They said about 200 value-added textile-manufacturing units had permanently dismantled for different reasons including yarn shortage, while between 300 and 400 units had been shifted to foreign countries from
"Some 250 units have been shifted to countries like
They said BD's value-added textile industry was running efficiently fetching about $14 billion a year exports only at the expense of Pakistani textile sector. "
Pakistan Apparel Forum (PAF) Chairman Muhammad Javed Bilwani criticised the ministry of textile industry for not solving a seven-month old dispute of yarn export, as the value-added textile sector had continued with its demands for corrective measures to safeguard the high-employment generating sector from closure.
He urged the government to ban export of cotton and yarn, as fears of opening stocks unavailability at the beginning of next fiscal year were creating discontent amongst the exporters of this very sector. He said despite being signatories of WTO,
"Our government claims that
He warned that the value-added textile sector was in a deep trouble for shortage of raw commodity, which increasingly was pushing the manufacturing units towards permanent closure and feared that thousands of workers including women would lose their jobs.
"About 14 percent decline in exports of overall value-added textile products has hit the local industry this fiscal year for shortage of raw commodity," Bilwani added. He alleged that about 50 percent units of spinning sector had been closed while the operational units were only producing 50 percent of the commodity, which was altogether exported and nothing of it the value-added textile sector was provided with.
He said the local industry would remain partially closed for their foreign consignments had to be shipped, however in
He also alleged that "the spinning sector's production data of yarn and its availability on the local market was completely false and the ground realities were different." To a question, he said that the value-added textile sector was not receiving supplies from spinning mills even on four months of advance-payments.
Central Chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Mohsin Ayub Mirza said, "there are only 30 families in the country who rule the country and are behind all primary and big problems. They form cartel and fleece the nation through creating scarcity some times wheat, sugar, and now it's yarn and cotton."
He also warned the government of severe employment crisis if the value-added textile sector closes, which could result in further deterioration in the law and order situation across the country. Rafiq Habib Godil and other exporters were present on the occasion.
Copyright Business Recorder, 2010
25 percent regulatory duty on export of yarn likely
TAHIR AMIN
ISLAMABAD (May 12 2010): Cabinet Committee on Textiles (CCT) is likely to slap 25 percent Regulatory Duty (R&D) on export of yarn to overcome its shortage in the local market, sources informed Business Recorder on Tuesday. The cabinet body is scheduled to meet, on Wednesday (today), the Advisor to Prime Minister on Finance Dr Hafeez Sheikh.
Other members of the body include federal minister for industry, federal minister for food and agriculture, federal minister for textile and state minister for finance. Sources said that the cabinet body on textiles would take a final decision to overcome the ongoing yarn crisis which has compelled value-added textile sector to go on strike against the unfettered export of yarn and cotton that is leading to a loss of exports worth millions of rupees.
Textile ministry has completed paper work for the meeting which will consider two options: to slap 25 percent R&D or to impose complete ban on export of yarn as proposed by the value-added sector, but it is expected that R&D would be imposed on yarn export, sources maintained.
The yarn crisis is worsening day by day and the value-added sector has launched a protest movement throughout the country including
However CoE failed to resolve differences and also failed in developing any consensus that would have resolved the issue. Subsequently the ministry decided to take the lead role and decide the matter in the light of proposals tabled by both sectors. In the proposals, the value added textile sector has requested the government to either ban or slap a 25 per cent regulatory duty on exports of yarn to save the industry from closure.
Dozens of industrial units have ceased to operate due to yarn shortage whereas hosiery, towel and the remaining industry of home textile is facing severe crisis. Industrialists have urged government to take swift action to avoid further unemployment due to the closure of industries, sources added. Representatives of the value-added sector have expressed indignation at the delaying tactics in resolving the yarn issue, they said.
Copyright Business Recorder, 2010
July-April trade deficit amounts to $12.238 billion
RECORDER REPORT
ISLAMABAD (May 12 2010): The country's trade deficit swelled to $12.238 billion in ten months of the on-going fiscal year as a result of $15.884 billion exports against $28.122 billion imports during this period. According to provisional trade figures released by the Federal Bureau of Statistics (FBS) here on Tuesday, the trade deficit for the on-going fiscal year is 13.92 percent less as compared to the same period of last year.
The trade deficit was $14.218 billion in July-April 2008-09 while in July-April 2009-10 the trade deficit, because of government policy to curtail imports, reduced to $12.238 billion. The increase of 8.03 percent in exports during the current fiscal year also contributed to narrowing the trade gap.
The exports increased to $15.884 billion in July-April 2009-10 from $14.703 billion when compared with the same period of the corresponding year. Further analysis of the data showed that exports declined in April 2009-10 as compared to March 2010. The decline of 3.88 percent curtailed the exports in April 2010 to $1.737 billion against $1.807 billion of March 2010. The monthly trade deficit was $1.278 billion due to $1.737 billion exports against $3.015 billion imports for the month.
A comparison of March with April 2010 showed that both imports and exports declined in April 2010 as compared to March 2010. The exports in March 2010 were $1.807 billion, which declined to $1.737 billion in April. Similarly a decline of 8.26 was noted in imports when it decreased to $3.015 billion in April 2010 from $3.287 billion in March 2010. As a result the trade deficit of 1.278 billion in April was 13.61 per cent less from $1.479 billion for March 2010.
Exports in April 2010 grew by 31.45 percent compared to the same period of last year as it surged to $1.737 billion in April 2010 from $1.321 billion in April 2009.
Copyright Business Recorder, 2010
15 percent rise in July-April remittances
RECORDER REPORT
KARACHI (May 12 2010): Remittances from overseas Pakistanis rose to $7.306 billion during July-April period of the current fiscal year 2009-10, showing an increase of $951.07 million, or 14.96 percent, against $6.355 billion received in the same period of last fiscal year.
The amount of $7.306 million includes $1.02 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs). In April 2010, an amount of $755.77 million was sent home by overseas Pakistanis, up $58.25 million, or 8.35 percent, when compared with $697.52 million received in the same month of last year.
It may be mentioned here that International Fund for Agriculture Development (IFAD), a specialised agency of the United Nations, in its quarterly Financing Facility for Remittances newsletter reported
The inflow of remittances in the July-April, 2010 period from UAE, Saudi Arabia, USA, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1,663.22 million, $1,525.90 million, $1,461.80 million, $1,033.00 million, $734.59 million and $210.22 million respectively as compared to $1,366.79 million, $1,264.07 million, $1,435.65 million, $996.02 million, $467.98 million and $196.53 million respectively in the July-April, 2009 period.
Remittances received from
During April 2010, remittances from Saudi Arabia, UAE, USA, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $183.13 million, $165.98 million, $144.09 million, $100.17 million, $73.62 million and $20.65 million respectively as compared to $150.49 million, $156.64 million, $144.18 million, $102.83 million, $61.55 million and $20.86 million in April 2009.
Remittances received from
Copyright Business Recorder, 2010
Move to implement VAT successfully: FBR announces using NTN as UTI for direct, indirect taxes
MOHAMMAD ALI
KARACHI (May 12 2010): In a move to implement Value Added Tax (VAT) successfully, Federal Board of Revenue (FBR) has announced to use National Tax Number (NTN) as Unique Taxpayers Identifier (UTI) for both direct and indirect taxes from next fiscal year.
Sources told Business Recorder on Tuesday that FBR has decided to discontinue the use of Sales Tax Registration Number (STRN) from July 1, 2010 and NTN could be applicable in both tax regimes. They said the e-FBR system is disseminating information, regarding the discontinuation of the use of STRN from next fiscal year amongst taxpayers, through email.
They further said, the board has informed taxpayers that the tax collecting authority is going to use NTN as unique identifier of registered taxpayers and consequently, the use of STRN will be discontinued from July 1, 2010. The sources also apprised that the said exercise is aimed at removing hurdles faced by taxpayers in the registration process and added that the board would not accept any return statement and correspondence without NTN from next fiscal year.
When contacted, Khushnood A Khan, President, Karachi Sales Tax Bar (KSTB) said the board has finally decided to implement the scheme of UTI, which was announced in September 1999. He said that the scheme would not only ease the registration process but would also pave the way to improve tax collection.
Khan further said that after the implement of the scheme, the tax department could easily detect the non-filers of tax returns and delinquent accounts and it would also expedite the process of sales tax refunds, which is essential for successful VAT implementation.
He said that the scheme would promote inter tax adjustment in case of any recovery proceedings, besides helping the department to cross match the data of taxpayers. He urged the authority concerned to ensure the issuance of NTN within stipulated period of 48 hours in order to get all benefits from the said scheme and added that the scheme could not yield fruitful results unless the board does not decentralise the process of issuing NTN.
Copyright Business Recorder, 2010
New-crop December shed 0.10 cent to end at 76.30 cents, ranging from 76.05 to 76.67 cents. Sharon Johnson, cotton expert at First Capitol Group in Atlanta, Georgia, said market bulls ran out of momentum and most of the activity in fibre contracts concerned investment funds moving positions out of spot July and into the back months. She said the next move of the market will be dictated by the dollar, technical considerations and the weather over cotton-growing areas.
The market took note of the US Agriculture Department's first estimate of cotton market supply/demand conditions in the 2010/11 marketing year in its monthly supply/demand report. Mike Stevens, analyst for SFS Futures in
They point out how tight the situation is going to be." But outside market influences often trump such fundamentals these days. "This Greek (thing) has got everybody upset," he said, referring to the debt crisis in the European country. "There are so many external forces working (on the market) right now."
Brokers Flanagan Trading Corp sees support in the July contract at 80.50 and 79.60 cents, with resistance at 81.35 and 82.60 cents. Volume traded Monday reached 12,982 lots, against the previous tally of 22,546 lots, according to ICE Futures US Open interest in the cotton market was at 176,498 lots as of May 10, from the prior 175,455 lots, the exchange said.
Cotton market remains listless, uncertainty prevails
RECORDER REPORT
All the Phutti have been sold out to the buyers, so there is no selling rates, they said. The strike continued for the second day and nobody knows about the result in the absence of the government's guidelines regarding cotton yarn export policy, some analysts said.
The country is still in need to import three million bales of cotton to meet the current season's shortfall, experts said and added that despite the fact that several spinning units have exhausted their stock with others may hardly last for two-three weeks.
They said that cotton crisis in the world market cause difficulties for the local textile industry, which is faced with shortage of raw cotton. The major factor is Indian ban on exports of raw cotton, which caused costlier imports after long time from US,
The hovering uncertainties among the cotton circle is unclear policy of the government regarding the yarn exports and has fixed the quota at 35,000 tons per month, they said. They also observed that spinning units may start closing down by the end of this month (May 2010), many think that value-added sector should import the stuff to meet their demand but in fact, the imports are much costlier, so they may not be able to import like mills.
On Monday the NY cotton futures finished with small gains on investor buying as market players awaited release of a government crop report while giving a cautious welcome to news of deal to aid debt-strapped
Copyright Business Recorder, 2010
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| Trade deficit narrows down by 14 per cent |
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| Apparel units' owners, workers protest against yarn shortage |
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| No deal finalised at cotton market |
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