Tractors: business community concerned at increasing GST

Agriculturists as well as business community have expressed its concern on increasing the General Sales Tax on tractors by 17 percent. Resultantly, the price of tractors has increased Rs 1, 75,000. They have called for the withdrawal of an increase of General Sales Tax on tractor industry from 10 percent.
The decision had hit the production of tractors in Pakistan which fell to merely 12,000 from 75,000 per annum. Now it would also hit the entire agriculture sector hard besides rendering thousands of skilled workers jobless. In a memorandum to Prime Minister Nawaz Sharif , Ministry of Industries and Production, Finance, the Multan Chamber of Commerce and Industry's sub-committee on engineering headed by Mian Iqbal Hassan said the tractor assemblers and their hundreds of vendors fear a severe drop in sales as a result of massive hike in GST with effect from 1st January 2014. The 17 percent GST to be paid by the country's farmers which will further curtail their ability to purchase tractors. Despite producing the cheapest tractor in the world, the farmer is still not able to afford a tractor and requires support in the form of subsidies and soft loans from the government to purchase a tractor. President of Multan Chamber of Commerce and Industry (MCCI) Khawaja Muhammad Usman said with no subsidies on tractors in the current federal and provincial budgets, meagre loaning by ZTBL in the absence of a Federal Agricultural Ministry (thanks to the 18th amendment) and GST set to go to 17 percent under IMF pressure, will all add up to massive drop in tractor sales.
The MCCI president said that Pakistan lags far behind India in crop yield, crop intensity and number of tractors per hectare. According to agri experts Pakistan currently needs 800,000 more tractors to match India in per hectare tractor population. He said that an industry with installed capacity of 100,000 units per annum is expected to close the current financial year with less than 30,000 units. This means 70 percent drop in revenues for the FBR from this industry in the fiscal year 2013-14. In sharp contrast India with 0 percent central GST, will close this year with the highest ever production of over 600,000 tractors, ie, 20 times higher than Pakistan. Mian Iqbal Hassan, a senior member of MCCI said drop in tractor sales means unemployment for thousands of skilled workers who work in hundreds of factories producing tractor parts for the tractor assembly plants.
He said that it was a good omen for the manufacturing sector that the government had decided to unveil new industrial and auto policies but he hoped the consultation with the stakeholders would be ensured before finalising these documents.

Source: Business recorder

ZTBL's business virtually paralysed?

Zarai Taraqiati Bank Limited''''s official business is virtually paralysed due to the absence of a Board of Directors (BoD) after Islamabad High Court issued stay order against its members, well-informed sources told Business Recorder. The new Board is to be reconstituted by the Finance Ministry; but the State Bank of Pakistan (SBP) recently turned down ZTBL''''s request to extend the deadline for submission of financial accounts due to non-existence of BoD.
"The bank''''s request cannot be acceded to and ZTBL is advised to convene a BoD meeting for approving third quarter financial statements for publication and submission to SBP in terms of BSD circular number 1 of January 7, 2004... (as) according to section 177 of the Companies Ordinance 1984, the retiring directors may continue to perform their functions until their successors are elected," the SBP ruled in a letter dated 5 November 2013.
The ZTBL management has neither complied with the SBP directive nor has it advised its directors or its regulator the reasons for non-compliance. However, officials in the finance ministry appear to be well aware of this controversy and the ensuing disarray in ZTBL''''s affairs.
On June 14, 2010, the then Prime Minister, Syed Yousuf Raza Gilani, had reconstituted the ZTBL Board for an indefinite period. The Board reconstituted by Gilani was as follows: (i) Chaudhry Zaka Ashraf, President/CEO; (ii) Iftikhar Khan Mohmand; (iii) Dr Amar Muhammed; (iv) Sultan Ali Chaudhry; (v) Zafar Iqbal; (vi) Abdul Wajid Arain; (vii) Yaqoob Verdag; (viii) Dr Khalid Ahmad Khokhar; (ix) Muhammad Nawaz Shah; (x) Additional Secretary Finance(Internal Finance); and (xi) Additional Secretary M/s Food and Agriculture.
ZTBL''''s Board was reconstituted by the then Finance Minister Salim Mandviwala in the dying days of the PPP government. It was notified on March 16, 2013 and comprised of: (i) Salman Younis (Chairman); (ii) Ihsan-ul- Haq President; (iii) Zaka Ashraf (former President); (iv )Abdul Wajid Arain; (v) Taimur Jamote; (vi) Ijaz Nabi Shah; (vii) Dr Khalid Ahmad Khokhar; (viii) Yaqoob Verdag; (ix) Muhammad Nawaz Shah; (x) Iftikhar Mohmand; and (xi) Additional Secretary (Internal Finance) Ministry of Finance.
The three new directors, ie Salman Younis, Taimor Jamote and Ijaz Nabi Shah replaced Dr Amir Muhammad, Sultan Ali Chaudhry and Zafar Iqal-all three belong to the Gujjar tribe along with Zaka Ashraf.
Analysts maintain that the notification dated March 16, 2013 which adds three new members is limited for three years and appointment of Salman Younis as chairman is against the rules as the Chairman can only be appointed by the ZTBL Board and not the Finance Ministry.
Meanwhile, Muhamamd Munir Mani, Secretary General All Pakistan Peoples Unit of ZTBL) and Muhammad Yaqun Rai, General Secretary, All Pakistan Officers Association, ZTBL, filed a petition in Islamabad High Court(IHC) against appointment of the three new Directors. The apex court on March 26, 2013 issued a stay order against the newly notified three Board members.
On November 22, 2013, four members of the Board, ie Dr Amar Muhammed, Yaqoob Verdag, Zafar Iqbal and Zaka Ashraf held a meeting at a local hotel in Islamabad. The location was violative of the IHC direction to hold the Board''''s meeting on the premises of ZTBL, said a source on condition of anonymity.
Three directors Muhammad Nawaz Shah, Dr Khalid Khokhar and Wajid Arain did not attend the meeting; and neither did ZTBL President, Secretary, Additional Secretary (IF) MoF and Additional Secretary Ministry of National Food Security and Research attend the meeting.
However, in the said Board meeting it was observed that due to a lack of assistance in holding the Board meeting by the President of the Bank and Company Secretary of the Board, various important functions of the Bank have suffered. One such event is non approval of the financial accounts for the period ended June, 30, 2013 and September 30, 2013 despite SBP confirmation that under section 177 of the Companies Ordinance 1984 the present Board should be convened for this purpose; in addition a very important document relating to Risk Assessment of the Bank (IRAF) which is mandatory to be sent to SBP by August 14 of every year has also not been complied with.
Similarly SECP requirements have been violated. It was further noted that the manpower budget for 2013 has not been approved by the Board.
When contacted a senior official of Finance Ministry told Business Recorder that ZTBL''''s Board does not exist and expressed ignorance of any meeting held in a local hotel.
"We have obtained permission from the Prime Minister to reconstitute ZTBL Board and this position has been intimated to the SBP accordingly," he added.

News Source: Business Recorder  News collected: agrinfobank.com Team

ZTBL to establish chain of Model Farms

September 09, 2013

Zarai Taraqiati Bank Limited (ZTBL) has decided to establish a chain of ZTBL Model Farms in all the four provinces including Gilgit-Baltistan and Azad Kashmir. A spokesman of the ZTBL told APP here Sunday that the decision to this effect has been taken to further augment and make efforts for more meaningful farming for the benefits of the growers throughout the county.
He said, "these model farms would be equipped with latest agriculture machinery and technological interventions according ecological zones to experiment and disseminate the success of modern techniques applied in agriculture and to introduce progressive farming".
"The model farms would serve as center of excellence for all the agriculture activities and cater for the information, training, needs of the farmers to serve the problems encounter by them and increase their productivity thereby contributing to the national economy", he added.
The spokesman further said that the ZTBL had made a valuable contribution in enhancing productivity of crops, livestock, dairy, poultry, fisheries, etc through introduction of improved hybrid seed varieties, tunnel farming and balanced use of fertiliser, plant nutrients and protection by making use of pesticides.

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