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Global Competitiveness Index places Pakistan at 91
ISLAMABAD (September 28 2006): Pakistan has been ranked at Number 91, among 125 countries, up by three points over previous year, in the global race for competitiveness, according to Global Competitiveness Report 2006-07, released by World Economic Forum.
However, it (Pakistan) was 48 places behind India (at No 43) and 12 places from Sri Lanka, at 79, but ahead of Bangladesh,' at 99, and Nepal at 110. The Global Competitiveness Index (GCI) "provides a holistic overview of factors that are critical to driving productivity and competitiveness".
It is these nine factors i.e. institutions, infrastructure, macroeconomy, health and primary education, higher education and training, market efficiency, technological readiness, business sophistication and innovation that finally are put together based on which countries are ranked.
Pakistan scored relatively well on market efficiency (ranked 54th) with "business sophistication" and "innovation" (ranked 60th and 66th respectively). India performed very well on market efficiency (21), business sophistication (25) and innovation (26). The best in innovation category is Japan, followed by Switzerland, Germany, the US and Sweden. China, at 57, is way down.
What has pulled down Pakistan's score is its 'basic requirements'. At 91, it is far below India's 60, China 44 or US 27. Within this, Pakistan's worst scores come, predictably, in the areas of "health and primary education" (rank 108), higher education and training (104), technological readiness (89) and macroeconomy (86).
Infrastructure, one of the basic prerequisite for robust economic growth, is not doing so badly (rank 67), while the country scored relatively bad in its "institutions" (rank 79). India was ranked 62 and 34 respectively in these categories. In the area of "efficiency enhancers," Pakistan was ranked exact to its total ranking at 91.
The report says, "The value of increased spending on education will be undermined if rigidities in the labour market and other institutional weaknesses make it difficult for new graduates to gain access to suitable employment opportunities. Attempts to improve the macroeconomic environment-e.g., bringing public finances under control-are more likely to be successful and receive public support in countries where there is reasonable transparency in the management of public resources, as opposed to widespread corruption and abuse".
Innovation or the adoption of new technologies or upgrading management practices will most likely not receive broad-based support in the business community if protection of the domestic market ensures that the returns on rent-seeking are higher than those for new investments. Therefore, the most competitive economies in the world will typically be those where concerted efforts have been made to frame comprehensive policies, that is, those which recognise the importance of a broad array of factors, their interconnection, and the need to address the underlying weaknesses they reveal in a proactive way.
This year, over 11,000 business leaders polled in record 125 economies world-wide. The survey questionnaire is designed to capture a broad range of factors affecting an economy's business climate that are critical determinants of sustained economic growth. The Forum annually delivers a comprehensive overview of the main strengths and weaknesses in a large number of countries, making it possible to identify key areas for policy formulation and reforms.
ISLAMABAD (September 28 2006): Pakistan has been ranked at Number 91, among 125 countries, up by three points over previous year, in the global race for competitiveness, according to Global Competitiveness Report 2006-07, released by World Economic Forum.
However, it (Pakistan) was 48 places behind India (at No 43) and 12 places from Sri Lanka, at 79, but ahead of Bangladesh,' at 99, and Nepal at 110. The Global Competitiveness Index (GCI) "provides a holistic overview of factors that are critical to driving productivity and competitiveness".
It is these nine factors i.e. institutions, infrastructure, macroeconomy, health and primary education, higher education and training, market efficiency, technological readiness, business sophistication and innovation that finally are put together based on which countries are ranked.
Pakistan scored relatively well on market efficiency (ranked 54th) with "business sophistication" and "innovation" (ranked 60th and 66th respectively). India performed very well on market efficiency (21), business sophistication (25) and innovation (26). The best in innovation category is Japan, followed by Switzerland, Germany, the US and Sweden. China, at 57, is way down.
What has pulled down Pakistan's score is its 'basic requirements'. At 91, it is far below India's 60, China 44 or US 27. Within this, Pakistan's worst scores come, predictably, in the areas of "health and primary education" (rank 108), higher education and training (104), technological readiness (89) and macroeconomy (86).
Infrastructure, one of the basic prerequisite for robust economic growth, is not doing so badly (rank 67), while the country scored relatively bad in its "institutions" (rank 79). India was ranked 62 and 34 respectively in these categories. In the area of "efficiency enhancers," Pakistan was ranked exact to its total ranking at 91.
The report says, "The value of increased spending on education will be undermined if rigidities in the labour market and other institutional weaknesses make it difficult for new graduates to gain access to suitable employment opportunities. Attempts to improve the macroeconomic environment-e.g., bringing public finances under control-are more likely to be successful and receive public support in countries where there is reasonable transparency in the management of public resources, as opposed to widespread corruption and abuse".
Innovation or the adoption of new technologies or upgrading management practices will most likely not receive broad-based support in the business community if protection of the domestic market ensures that the returns on rent-seeking are higher than those for new investments. Therefore, the most competitive economies in the world will typically be those where concerted efforts have been made to frame comprehensive policies, that is, those which recognise the importance of a broad array of factors, their interconnection, and the need to address the underlying weaknesses they reveal in a proactive way.
This year, over 11,000 business leaders polled in record 125 economies world-wide. The survey questionnaire is designed to capture a broad range of factors affecting an economy's business climate that are critical determinants of sustained economic growth. The Forum annually delivers a comprehensive overview of the main strengths and weaknesses in a large number of countries, making it possible to identify key areas for policy formulation and reforms.
Owais
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100MW electricity to be imported from Iran: ECC allows 302 more goods to be traded with India
ISLAMABAD (September 28 2006): The Economic Coordination Committee met here on Wednesday and decided to expand the list of importable items from India, reduced the price of phosphate fertiliser and restored duty drawback facility for export of cement to Afghanistan.
The ECC, in its meeting here with Prime Minister Shaukat Aziz in the chair, also endorsed the decision to import 100 MW electricity from Iran for Gwadar City, which is fast coming up as Pakistan's major port on the mouth of Gulf of Oman.
Briefing reporters the Prime Minister said that 302 more tariff lines have been added to expand trade with India "in consultations with all stakeholders". The tradable items with India would now also include, among others, pharmaceuticals, plastic, iron and steel, machinery and parts, diesel locomotives and surgical equipment.
The ECC reduced the price of phosphate fertilisers by Rs 250 per bag to help increase agricultural productivity and income of farmers. As a result of this decision, the price of phosphate fertilisers would come down to Rs 827 per bag from about Rs 1077.
The Prime Minister said that one million tonnes DAP was available in the country and 0.2 million tonnes was being imported to augment the supply. He added that 0.1 million tonnes urea was also being imported. An awareness campaign would be launched shortly to sensitise farmers to use DAP, instead of urea, to increase the yield, he added.
The meeting also decided to increase the support price of wheat from the existing Rs 415 per 40 kg to Rs 425. The Prime Minister said that as a result of price management system introduced by the Government the sensitive price index showed continuous downward trend during the last four weeks. The price of wheat in Pakistan is the lowest in the region, he said.
Shaukat said that following price reduction the sales at Utility Stores Corporation outlets had increased four times and the Corporation was taking steps to ensure continued supply of items at its outlets.
He told reporters that the Oil and Gas Development Corporation (OGDC) had reversed the increase in LPG price for the benefit of the consumers.
The Prime Minister said Wapda had presented its report to him about the countrywide power failure on last Sunday within the stipulated 48 hours. The report contains recommendations about changing the 'standard operating procedure', more investment, introduction of more technology and proper training of personnel to avoid such mishaps in future.
Later, briefing reporters about some other decisions of the ECC, Economic Advisor to Finance Ministry, Dr Ashfaq Hassan, said that a Dubai-based company, Emaar, would invest over $43 billion over the next 13 years to establish a state-of-the-art city near Karachi. The new city, to be spread over 12,000 acres, would be set up on two islands known as Bundal and Buddo.
Another UAE-based company, Dubai Port World, would invest $300 million on a second container terminal at Port Qasim, the Advisor said, adding that this would be first a 'green field' project undertaken in the port sector of Pakistan. He said that the ECC, with a view to attract investment in the sector, has allowed foreign companies to carry out insurance business in Pakistan.
Dr Ashfaq told newsmen that there had been another oil find by OGDC in Kohat district with production capacity of about 4000 barrels oil and 12 million cubic feet gas per day. The same company has also discovered another gas well in the area, he added.
He said that a decision had been taken for import of 100 MW electricity from Iran for Gwadar. He said that the facility of Research and Development Support Fund for textile, previously available for processing, would now be available across-the-board to the sector.
ISLAMABAD (September 28 2006): The Economic Coordination Committee met here on Wednesday and decided to expand the list of importable items from India, reduced the price of phosphate fertiliser and restored duty drawback facility for export of cement to Afghanistan.
The ECC, in its meeting here with Prime Minister Shaukat Aziz in the chair, also endorsed the decision to import 100 MW electricity from Iran for Gwadar City, which is fast coming up as Pakistan's major port on the mouth of Gulf of Oman.
Briefing reporters the Prime Minister said that 302 more tariff lines have been added to expand trade with India "in consultations with all stakeholders". The tradable items with India would now also include, among others, pharmaceuticals, plastic, iron and steel, machinery and parts, diesel locomotives and surgical equipment.
The ECC reduced the price of phosphate fertilisers by Rs 250 per bag to help increase agricultural productivity and income of farmers. As a result of this decision, the price of phosphate fertilisers would come down to Rs 827 per bag from about Rs 1077.
The Prime Minister said that one million tonnes DAP was available in the country and 0.2 million tonnes was being imported to augment the supply. He added that 0.1 million tonnes urea was also being imported. An awareness campaign would be launched shortly to sensitise farmers to use DAP, instead of urea, to increase the yield, he added.
The meeting also decided to increase the support price of wheat from the existing Rs 415 per 40 kg to Rs 425. The Prime Minister said that as a result of price management system introduced by the Government the sensitive price index showed continuous downward trend during the last four weeks. The price of wheat in Pakistan is the lowest in the region, he said.
Shaukat said that following price reduction the sales at Utility Stores Corporation outlets had increased four times and the Corporation was taking steps to ensure continued supply of items at its outlets.
He told reporters that the Oil and Gas Development Corporation (OGDC) had reversed the increase in LPG price for the benefit of the consumers.
The Prime Minister said Wapda had presented its report to him about the countrywide power failure on last Sunday within the stipulated 48 hours. The report contains recommendations about changing the 'standard operating procedure', more investment, introduction of more technology and proper training of personnel to avoid such mishaps in future.
Later, briefing reporters about some other decisions of the ECC, Economic Advisor to Finance Ministry, Dr Ashfaq Hassan, said that a Dubai-based company, Emaar, would invest over $43 billion over the next 13 years to establish a state-of-the-art city near Karachi. The new city, to be spread over 12,000 acres, would be set up on two islands known as Bundal and Buddo.
Another UAE-based company, Dubai Port World, would invest $300 million on a second container terminal at Port Qasim, the Advisor said, adding that this would be first a 'green field' project undertaken in the port sector of Pakistan. He said that the ECC, with a view to attract investment in the sector, has allowed foreign companies to carry out insurance business in Pakistan.
Dr Ashfaq told newsmen that there had been another oil find by OGDC in Kohat district with production capacity of about 4000 barrels oil and 12 million cubic feet gas per day. The same company has also discovered another gas well in the area, he added.
He said that a decision had been taken for import of 100 MW electricity from Iran for Gwadar. He said that the facility of Research and Development Support Fund for textile, previously available for processing, would now be available across-the-board to the sector.
Owais
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Islamabad to go ahead with IPI gas pipeline
NEW YORK (September 28 2006): President General Musharraf said on Wednesday that Islamabad would go ahead with his plan to have Iran-Pakistan-India gas pipeline and the US-Iran strained relations would have no effect on this decision.
He was addressing a press conference before his departure to Washington for an Iftar-dinner meeting with US President and Afghan President Hamid Karzai on Wednesday evening. This press conference began with question and answer session as the president opted to give a chance to journalist to ask as many questions, as they wanted.
President General Pervez Musharraf described his visit to the United States as 'very successful' during which he has been able to remove misperception about Pakistan, especially the peace deal the government has signed with the tribal elders in North Waziristan.
"It has been a very successful visit," he told reporters. He said the high point of the visit was success in changing the perception about Pakistan's role in the anti-terror campaign and its contribution to fight the menace. The President made a strong case that the Taliban insurgency was rooted in Afghanistan and cited a new United Nations report, which upheld his viewpoint that it was an Afghan phenomenon.
He said the UN Secretary General report on the situation in Afghanistan clearly says that the foot soldiers of the insurgency are Afghans, recruited within Afghanistan.
The report has identified five distinct leadership centre of the Taliban, appearing to act in loose co-ordination with each other and benefiting from financial and operational link with the drug trafficking network.
IFTAR-DINNER: President General Pervez Musharraf will meet Afghan President Hamid Karzai and US President George W Bush at Iftar-dinner at the White House. The three leaders, sources said, would discus a wide range of international issues but Pak-Afghan relations in the light of new spat of accusations from both sides regarding the presence of Mullah Omer and Osama bin Laden either in Pakistan or Afghanistan would be the highlight of their discussion.
The recent agreement Pakistan has entered into with tribal elders of the North Waziristan area has created misunderstanding in the minds of many Americans as well as in the minds of the Afghans. President Musharraf would explain the nature of the agreement and its benefits.
President Musharraf in his numerous meetings with the American opinion leaders, media and scholars has been explaining the nature of the agreement which is to fight the Taliban and the process of Talibanisation in Pakistan and Afghanistan and this he would further discuss at the Iftar-dinner.
The meeting would focus on developing better understanding between Pakistan and Afghanistan and the common strategy that would help the two countries jointly fighting against evils that is spreading across the two countries and threatening expansion of terrorism.
Development and rehabilitation work in Afghanistan would also come up for discussion. Sources said that this would be a crucial meeting and effective and 'better relations would emerge'. The meeting of the three leaders would be independent of their aides in the beginning. Their aides would later join in.
Earlier, on Tuesday the president addressed a select audience at the Cornell Medical Center. He briefed the audience about the measures he has taken to move toward enlightened moderation, need to be cautious in framing a policy to interact with Israel, development of human resources in Pakistan, fight against terrorism and the amount of success achieved and economic progress in Pakistan. President on Tuesday remained engaged with leading media men and TV channels giving them interviews. From Washington the President would fly to UK for a two-day stay.
NEW YORK (September 28 2006): President General Musharraf said on Wednesday that Islamabad would go ahead with his plan to have Iran-Pakistan-India gas pipeline and the US-Iran strained relations would have no effect on this decision.
He was addressing a press conference before his departure to Washington for an Iftar-dinner meeting with US President and Afghan President Hamid Karzai on Wednesday evening. This press conference began with question and answer session as the president opted to give a chance to journalist to ask as many questions, as they wanted.
President General Pervez Musharraf described his visit to the United States as 'very successful' during which he has been able to remove misperception about Pakistan, especially the peace deal the government has signed with the tribal elders in North Waziristan.
"It has been a very successful visit," he told reporters. He said the high point of the visit was success in changing the perception about Pakistan's role in the anti-terror campaign and its contribution to fight the menace. The President made a strong case that the Taliban insurgency was rooted in Afghanistan and cited a new United Nations report, which upheld his viewpoint that it was an Afghan phenomenon.
He said the UN Secretary General report on the situation in Afghanistan clearly says that the foot soldiers of the insurgency are Afghans, recruited within Afghanistan.
The report has identified five distinct leadership centre of the Taliban, appearing to act in loose co-ordination with each other and benefiting from financial and operational link with the drug trafficking network.
IFTAR-DINNER: President General Pervez Musharraf will meet Afghan President Hamid Karzai and US President George W Bush at Iftar-dinner at the White House. The three leaders, sources said, would discus a wide range of international issues but Pak-Afghan relations in the light of new spat of accusations from both sides regarding the presence of Mullah Omer and Osama bin Laden either in Pakistan or Afghanistan would be the highlight of their discussion.
The recent agreement Pakistan has entered into with tribal elders of the North Waziristan area has created misunderstanding in the minds of many Americans as well as in the minds of the Afghans. President Musharraf would explain the nature of the agreement and its benefits.
President Musharraf in his numerous meetings with the American opinion leaders, media and scholars has been explaining the nature of the agreement which is to fight the Taliban and the process of Talibanisation in Pakistan and Afghanistan and this he would further discuss at the Iftar-dinner.
The meeting would focus on developing better understanding between Pakistan and Afghanistan and the common strategy that would help the two countries jointly fighting against evils that is spreading across the two countries and threatening expansion of terrorism.
Development and rehabilitation work in Afghanistan would also come up for discussion. Sources said that this would be a crucial meeting and effective and 'better relations would emerge'. The meeting of the three leaders would be independent of their aides in the beginning. Their aides would later join in.
Earlier, on Tuesday the president addressed a select audience at the Cornell Medical Center. He briefed the audience about the measures he has taken to move toward enlightened moderation, need to be cautious in framing a policy to interact with Israel, development of human resources in Pakistan, fight against terrorism and the amount of success achieved and economic progress in Pakistan. President on Tuesday remained engaged with leading media men and TV channels giving them interviews. From Washington the President would fly to UK for a two-day stay.
Owais
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Pakistan allows more goods to be imported from India
ISLAMABAD (updated on: September 27, 2006, 19:12 PST): The government decided on Wednesday to allow imports of machinery, surgical items, chemicals and pharmaceuticals from India to expand economic relations between the two neighbours.
The Economic Coordination Committee, Pakistan's top decision-making body on economic issues, on Wednesday allowed import of more than 302 "tariff lines" from India.
Pakistan earlier had put 1,527 tariff lines on the list, covering a total of just under 800 products.
"The decision will allow import of different items of machinery, surgical items and chemicals from India," Ashfaque Hasan Khan, an adviser to the prime minister, told reporters after the meeting.
The new additions to the list of permissible items will also include raw materials and metals, diesel locomotives, and textile machinery.
"The taxes and duties applicable on these items will be the same as those applicable on imports from other countries," said Khan.
While India's surging economy has stolen the spotlight, Pakistan's economy has also been one of the fastest growing economies in the world despite the lack of integration between the two.
The constraints on trade had irked some Pakistani industrialists, who have imported Indian-made goods, like textile machinery, from Dubai in order to beat the ban, businessmen say.
Trade between the two neighbours has grown since they launched a peace process, but remains well below $1 billion a year, and under $2 billion including a black market trade mostly routed through Dubai.
ISLAMABAD (updated on: September 27, 2006, 19:12 PST): The government decided on Wednesday to allow imports of machinery, surgical items, chemicals and pharmaceuticals from India to expand economic relations between the two neighbours.
The Economic Coordination Committee, Pakistan's top decision-making body on economic issues, on Wednesday allowed import of more than 302 "tariff lines" from India.
Pakistan earlier had put 1,527 tariff lines on the list, covering a total of just under 800 products.
"The decision will allow import of different items of machinery, surgical items and chemicals from India," Ashfaque Hasan Khan, an adviser to the prime minister, told reporters after the meeting.
The new additions to the list of permissible items will also include raw materials and metals, diesel locomotives, and textile machinery.
"The taxes and duties applicable on these items will be the same as those applicable on imports from other countries," said Khan.
While India's surging economy has stolen the spotlight, Pakistan's economy has also been one of the fastest growing economies in the world despite the lack of integration between the two.
The constraints on trade had irked some Pakistani industrialists, who have imported Indian-made goods, like textile machinery, from Dubai in order to beat the ban, businessmen say.
Trade between the two neighbours has grown since they launched a peace process, but remains well below $1 billion a year, and under $2 billion including a black market trade mostly routed through Dubai.
Owais
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New oil and gas reserves discovered in Kohat
ISLAMABAD (updated on: September 27, 2006, 19:09 PST): State-run Oil and Gas Development Company Ltd (OGDC) has discovered oil and gas reserves in northwestern Pakistan, a government spokesman said on Wednesday.
The reserves found at Kohat, some 175 km (110 miles) west of the capital Islamabad, are expected to produce around 4,000 barrels of oil and 12 million cubic feet of gas per day.
OGDCL, the country's largest firm, has a market capitalisation of around $10.2 billion and the government has recently announced plans to list it on the London Stock Exchange through an issue of global depository receipts (GDR) by December.
With the latest discovery, Pakistan's oil production capacity will increase to approximately 69,000 barrels from 65,000 barrels per day, the spokesman added.
ISLAMABAD (updated on: September 27, 2006, 19:09 PST): State-run Oil and Gas Development Company Ltd (OGDC) has discovered oil and gas reserves in northwestern Pakistan, a government spokesman said on Wednesday.
The reserves found at Kohat, some 175 km (110 miles) west of the capital Islamabad, are expected to produce around 4,000 barrels of oil and 12 million cubic feet of gas per day.
OGDCL, the country's largest firm, has a market capitalisation of around $10.2 billion and the government has recently announced plans to list it on the London Stock Exchange through an issue of global depository receipts (GDR) by December.
With the latest discovery, Pakistan's oil production capacity will increase to approximately 69,000 barrels from 65,000 barrels per day, the spokesman added.
Owais
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'2.5 million bales cotton may have to be imported'
KARACHI (September 28 2006): As the rains have deteriorated the quality of cotton, the country may need to import 2.0-2.5 million bales cotton to meet the country's burgeoning domestic cotton consumption estimated at 15.5-16.0 million bales for FY06-07.
The current situation of the crop indicates production of some 13.0 million bales this season against the target of 13.8 million bales, said a report issued by Atlas Investment Bank. Cotton picking operation has been accelerated leading to large seed-cotton arrivals in the ginneries.
Although cotton prices moved up and down under impact of heavy downpour and it was feared that hike in demand and fear of damage might push prices higher, but inclement weather reversed the situation. Cotton prices increased 9.1 percent in August YoY basis, which is more than the change of 8.8 percent, which was recorded in July.
According to a report of International Cotton Advisory Committee, world cotton production is expected to remain stable at 25 million tons, while demand is projected to increase by three percent to a record 25.7 million tons.
The expected shortfall of cotton target for this year means that the textile industry, which requires almost 15 million bales, will be forced to depend on imported cotton and fibre to meet its requirements. However, the improving cotton crop as a result of favourable season may further support cotton prices to remain stable, going forward.
KARACHI (September 28 2006): As the rains have deteriorated the quality of cotton, the country may need to import 2.0-2.5 million bales cotton to meet the country's burgeoning domestic cotton consumption estimated at 15.5-16.0 million bales for FY06-07.
The current situation of the crop indicates production of some 13.0 million bales this season against the target of 13.8 million bales, said a report issued by Atlas Investment Bank. Cotton picking operation has been accelerated leading to large seed-cotton arrivals in the ginneries.
Although cotton prices moved up and down under impact of heavy downpour and it was feared that hike in demand and fear of damage might push prices higher, but inclement weather reversed the situation. Cotton prices increased 9.1 percent in August YoY basis, which is more than the change of 8.8 percent, which was recorded in July.
According to a report of International Cotton Advisory Committee, world cotton production is expected to remain stable at 25 million tons, while demand is projected to increase by three percent to a record 25.7 million tons.
The expected shortfall of cotton target for this year means that the textile industry, which requires almost 15 million bales, will be forced to depend on imported cotton and fibre to meet its requirements. However, the improving cotton crop as a result of favourable season may further support cotton prices to remain stable, going forward.
ISLAMABAD, Sept 27: The import bill of petroleum products recorded a hefty growth during the first two months (July-Aug) of the fiscal year 2006-07, over the same months last year.
The total import bill touched $4.985 billion in July-August 2006 as against $4.230 billion in the same months last year, indicating an increase of 17.83 per cent. The statistics showed that the State Bank of Pakistan monetary policy had helped a lot to control the inflow of importable products.
But this decline in the import bill occurred mainly due to a fall in import of machinery of 10 per cent, around two per cent overall decline in transportation machinery including vehicles, a 16 per cent dip in food items import, and a 21 per cent decrease in agriculture implements during the period under review.
Official figures released by the Federal Bureau of Statistics (FBS) here on Wednesday showed the import bill of petroleum products alone rose by 53.53 per cent to $1.549 billion during the first two months of the current fiscal as against $1.008 billion in the same months last year.
In total POL imports, the share of petroleum crude rose by 9.18 per cent to $646.835 million during the months under review as against $592.435 million in the corresponding months last year.
The statistics indicated that the only leading contributor to the highest trade deficit was the bill of POL, which has been enhanced due to a persistent rise in oil price in the international market.
According to the FBS, the second biggest component of the import bill in value was machinery group. However, it declined 9.65 per cent during July-August 2006, over last year.
The decline in this group was mainly due to a 24.94 per cent negative growth in import of textile machinery, followed by 11.50 per cent decline in import of telecom apparatus, and 31.57 per cent fall in agriculture machinery and implements. However, the import of construction machinery rose by 33.57 per cent and electrical machinery and apparatus by 31.81 per cent, power generating machinery by 51.92 per cent and office machinery by 3.64 per cent.
Food items import declined by 15.99 per cent to $342.140 million during July-Aug 2006 as against $407.269 million in the corresponding months last year. This decline in food items occurred due to a 1.81 per cent decline in milk products, followed by 27.84 in dry fruits, 54.5 per cent in soybean oil, and 30.69 per cent in palm oil.
However, the import of sugar rose by 9.68 per cent, pulses 69.10 per cent and wheat un-milled 100 per cent.
According to the statistics, the import of metal groups had declined by 11.90 per cent during the July-August period of the current fiscal year, over the last year. In this group, the import of gold has declined by 43.27 per cent, followed by a 49.12 per cent fall in iron and steel scrap and 1.15 per cent in iron and steel.
The agriculture and other chemical group also declined by 21.12 per cent during the fist two months of the current fiscal year, over the last year. In the group the import of fertilizer declined by 13.05 per cent, insecticides by 35.78 per cent, plastic materials by 17.32 per cent and medicinal products by 8.66 per cent.
Thursday, September 28, 2006javascript:; http://www.dailytimes.com.pk/print.asp?page=2006\09\28\story_28-9-2006_pg5_6
LAHORE: A renowned UAE company, Coastal Group, has shown keen interest in setting up international standard car manufacturing plant with an initial investment of $1 billion and a hefty amount for purchase of land has been transferred into Pakistan.
The proposed project will provide employment opportunities to thousands of people. However, some circles having vested interests are hatching conspiracies against this project of extreme public importance.
This was stated by the Director Commercial Coastal Group, Hafiz Ayub Ismail after his return from three-day tour of Germany.
Ayub said that governmentââ¬â¢s measures to attract investment were inadequate as investors were facing technical obstacles in investment projects, which were creating doubts in their minds about their premium.
Ayub said that investment during the last two years was predominantly made in unproductive sectors of telecom and construction. But the environment should be improved to promote investment in productive sectors so that poverty could be mitigated and the economy could be put on right the track, he emphasised
He said that big manufacturing plants were essential to start production projects on a massive scale. He added that the investors coming to Pakistan were facing difficulties in acquiring land due to painstakingly slow and lengthy structural procedures.
Ayub complained that bureaucracy is also playing a non-cooperative role in this regard and demanded of the government as well as national media to take notice of it. He called upon President Musharraf and Prime Minister Shaukat Aziz to give special attention to production projects set up through foreign investment and besides that both the leaders should direct the Board of Investment to dispose of the problems faced by foreign investors in a specific timeframe.
LAHORE: A renowned UAE company, Coastal Group, has shown keen interest in setting up international standard car manufacturing plant with an initial investment of $1 billion and a hefty amount for purchase of land has been transferred into Pakistan.
The proposed project will provide employment opportunities to thousands of people. However, some circles having vested interests are hatching conspiracies against this project of extreme public importance.
This was stated by the Director Commercial Coastal Group, Hafiz Ayub Ismail after his return from three-day tour of Germany.
Ayub said that governmentââ¬â¢s measures to attract investment were inadequate as investors were facing technical obstacles in investment projects, which were creating doubts in their minds about their premium.
Ayub said that investment during the last two years was predominantly made in unproductive sectors of telecom and construction. But the environment should be improved to promote investment in productive sectors so that poverty could be mitigated and the economy could be put on right the track, he emphasised
He said that big manufacturing plants were essential to start production projects on a massive scale. He added that the investors coming to Pakistan were facing difficulties in acquiring land due to painstakingly slow and lengthy structural procedures.
Ayub complained that bureaucracy is also playing a non-cooperative role in this regard and demanded of the government as well as national media to take notice of it. He called upon President Musharraf and Prime Minister Shaukat Aziz to give special attention to production projects set up through foreign investment and besides that both the leaders should direct the Board of Investment to dispose of the problems faced by foreign investors in a specific timeframe.
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Pakistan has given a Dubai property firm the go-ahead for a $43bn (ã22.8bn) project to develop two island resorts.
Emaar Properties, one of the United Arab Emirates' biggest property firms, will have an 85% share in the 13-year project to develop Bundal and Buddo.
Emaar plans to develop the site near Karachi into a model city with homes, apartments, offices and theme parks.
"It will be just like another Dubai," Ashfaque Hasan Khan, an adviser to the prime minister said.
"We want to build it because it will create new jobs, bring in investment, create new housing and a new city," he added.
Pakistan's Port Qasim Authority will hold the remaining 15% stake in the enterprise in the form of land, the government said.
So far the plans have been approved in principle. Legal documents are expected to be completed within three months.
Emaar - the UAE's biggest property firm by market value - plans to build thousands of homes, schools, shopping malls and hospitals stretching from Morocco to India.
Emaar Properties, one of the United Arab Emirates' biggest property firms, will have an 85% share in the 13-year project to develop Bundal and Buddo.
Emaar plans to develop the site near Karachi into a model city with homes, apartments, offices and theme parks.
"It will be just like another Dubai," Ashfaque Hasan Khan, an adviser to the prime minister said.
"We want to build it because it will create new jobs, bring in investment, create new housing and a new city," he added.
Pakistan's Port Qasim Authority will hold the remaining 15% stake in the enterprise in the form of land, the government said.
So far the plans have been approved in principle. Legal documents are expected to be completed within three months.
Emaar - the UAE's biggest property firm by market value - plans to build thousands of homes, schools, shopping malls and hospitals stretching from Morocco to India.
Owais
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'PIA suffers over Rs 6 billion loss'
KARACHI (September 29 2006): Pakistan International Airlines (PIA ) incurred a net loss of over Rs six billion during the first half year ended June 30, 2006, according to the directors' report to the shareholders available here on Thursday. The report was signed by Tariq Kirmani, Chairman and CEO on August 28, 2006.
According to the interim condensed financial statements, the Corporation has incurred a gross loss of Rs 74 million and a net loss of Rs 6,144 million during the half year ended June 30, 2006. This has resulted in an accumulated loss of Rs 17,944 million as of the balance sheet date.
The auditors M/s Anjum Asim Shahid Rahman and M/s Ford Rhodes Sidat Hyder & Co in their review report have drawn attention to the gross, net and accumulated losses and the current liabilities and assets of PIAC. They have pointed out that as of the balance sheet date, the Corporation's current liabilities exceeded its current assets by Rs 20,326 million.
These conditions, auditors said indicated the existence of a "material uncertainty, which might cast significant doubt about the Corporation's ability to continue as a going concern."
However, they said that these interim condensed financial statements have been prepared on a going concern basis. The validity of the said assumption is dependent upon the successful outcome of the measures being taken by the management.
The Chairman in his report while summarising the half-yearly report had reported loss before tax at Rs 5,977 million and loss after tax at Rs 6,144 million. During the year January-December 2005, PIA had reported before tax loss of Rs 4.513 million and after tax loss of Rs 4.412 million.
Whereas aircraft fuel cost was Rs 16,442 million, other operating expenses exceeded this amount and stood at Rs 21,265 million during the period ended June 30, 2006.
The auditors without further qualifying their review report have also drawn attention to note 11.1 to the interim condensed financial statements (un-audited) for the six-month period ending June 30, 2006, which have been signed by Tariq Kirmani and Kamal Afsar, Director.
The note reads as under: Civil Aviation Authority (CAA) has claimed additional amounts aggregating to Rs 3,649 million (December 2005: Rs 3,819) in respect of rent and allied charges, landing and housing charges, aviation security and bay charges, interest/surcharge etc.
The matter has been referred to the Ministry of Defence through which a reconciliation and settlement exercise is currently in progress. The management considers that no additional liability of material amounts is likely to arise as a result of such exercise. Accordingly, no provision in this respect has been made in these interim condensed financial statements.
Despite increase in fares, closure of several foreign stations and reduction in the frequency of its flights to some foreign stations to bring down expenditure, PIA's losses have continued to multiply year after year.
It has been pointed out in the directors' report that the unprecedented increase of Rs 5.2 billion in oil prices during the half year ended on June 30, 2006, dented airlines profitability, as compared to corresponding period of 2005.
The expense on aircraft fuel increased by 47 percent in 2006 comparing to 2005, whereas, the increase of 10 percent in operating expenses was mainly due to inflationary trends, rise in interest rate and currency fluctuation.
The turnover-net in second quarter April-June 2006, comparing to the corresponding period in 2005, showed an increase of Rs 2.9 billion, thus, off setting the impact of higher cost of aircraft fuel by Rs 2.9 billion in 2nd quarter 2006. The breakdown in second quarter indicates a positive outlook to attain profitability levels in future.
KARACHI (September 29 2006): Pakistan International Airlines (PIA ) incurred a net loss of over Rs six billion during the first half year ended June 30, 2006, according to the directors' report to the shareholders available here on Thursday. The report was signed by Tariq Kirmani, Chairman and CEO on August 28, 2006.
According to the interim condensed financial statements, the Corporation has incurred a gross loss of Rs 74 million and a net loss of Rs 6,144 million during the half year ended June 30, 2006. This has resulted in an accumulated loss of Rs 17,944 million as of the balance sheet date.
The auditors M/s Anjum Asim Shahid Rahman and M/s Ford Rhodes Sidat Hyder & Co in their review report have drawn attention to the gross, net and accumulated losses and the current liabilities and assets of PIAC. They have pointed out that as of the balance sheet date, the Corporation's current liabilities exceeded its current assets by Rs 20,326 million.
These conditions, auditors said indicated the existence of a "material uncertainty, which might cast significant doubt about the Corporation's ability to continue as a going concern."
However, they said that these interim condensed financial statements have been prepared on a going concern basis. The validity of the said assumption is dependent upon the successful outcome of the measures being taken by the management.
The Chairman in his report while summarising the half-yearly report had reported loss before tax at Rs 5,977 million and loss after tax at Rs 6,144 million. During the year January-December 2005, PIA had reported before tax loss of Rs 4.513 million and after tax loss of Rs 4.412 million.
Whereas aircraft fuel cost was Rs 16,442 million, other operating expenses exceeded this amount and stood at Rs 21,265 million during the period ended June 30, 2006.
The auditors without further qualifying their review report have also drawn attention to note 11.1 to the interim condensed financial statements (un-audited) for the six-month period ending June 30, 2006, which have been signed by Tariq Kirmani and Kamal Afsar, Director.
The note reads as under: Civil Aviation Authority (CAA) has claimed additional amounts aggregating to Rs 3,649 million (December 2005: Rs 3,819) in respect of rent and allied charges, landing and housing charges, aviation security and bay charges, interest/surcharge etc.
The matter has been referred to the Ministry of Defence through which a reconciliation and settlement exercise is currently in progress. The management considers that no additional liability of material amounts is likely to arise as a result of such exercise. Accordingly, no provision in this respect has been made in these interim condensed financial statements.
Despite increase in fares, closure of several foreign stations and reduction in the frequency of its flights to some foreign stations to bring down expenditure, PIA's losses have continued to multiply year after year.
It has been pointed out in the directors' report that the unprecedented increase of Rs 5.2 billion in oil prices during the half year ended on June 30, 2006, dented airlines profitability, as compared to corresponding period of 2005.
The expense on aircraft fuel increased by 47 percent in 2006 comparing to 2005, whereas, the increase of 10 percent in operating expenses was mainly due to inflationary trends, rise in interest rate and currency fluctuation.
The turnover-net in second quarter April-June 2006, comparing to the corresponding period in 2005, showed an increase of Rs 2.9 billion, thus, off setting the impact of higher cost of aircraft fuel by Rs 2.9 billion in 2nd quarter 2006. The breakdown in second quarter indicates a positive outlook to attain profitability levels in future.
Owais
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Refineries given deadline to switch to Euro II diesel
ISLAMABAD (September 29 2006): The government has set the deadline of January 2008 for refineries for switch over from Euro 1 (low quality diesel) containing high sulphur content to Euro II, premium product to minimise the risk of pollution in major cities.
The Euro II contains 2500 pm (0.25 percent) sulphur against 10000 pm of Euro 1. Refineries currently import Euro 1, which is posing serious threat to the environment due to high sulphur content. At present, four refineries are functioning in Pakistan to refine imported crude oil.
The petroleum ministry has issued a circular to the refineries asking them to make necessary arrangements for the switch over within the stipulated period.
Sources said refineries import low quality diesel for refining and sell it to the consumers on premium rates. Diesel, having high level of sulphur, is a serious problem as smoke emitted as a result of its combustion pollute the environment in the major cities. Karachi, Lahore and other cities where long vehicles operate on diesel are its typical example.
Import of diesel containing high level of sulphur provides an ideal opportunity to the importers to buy low quality diesel from the international market and sell it to the consumers at higher prices. This is a cheating of technical nature.
Sources said the government had issued the circular to the refineries for switch over in July 2006. However, the industry considers that the deadline does not allow it sufficient lead time to carry out the necessary feasibility studies.
They said that the government was actively pursuing the case to ensure that the refineries do not get any excuse to delay in switching over to Euro II diesel.
ISLAMABAD (September 29 2006): The government has set the deadline of January 2008 for refineries for switch over from Euro 1 (low quality diesel) containing high sulphur content to Euro II, premium product to minimise the risk of pollution in major cities.
The Euro II contains 2500 pm (0.25 percent) sulphur against 10000 pm of Euro 1. Refineries currently import Euro 1, which is posing serious threat to the environment due to high sulphur content. At present, four refineries are functioning in Pakistan to refine imported crude oil.
The petroleum ministry has issued a circular to the refineries asking them to make necessary arrangements for the switch over within the stipulated period.
Sources said refineries import low quality diesel for refining and sell it to the consumers on premium rates. Diesel, having high level of sulphur, is a serious problem as smoke emitted as a result of its combustion pollute the environment in the major cities. Karachi, Lahore and other cities where long vehicles operate on diesel are its typical example.
Import of diesel containing high level of sulphur provides an ideal opportunity to the importers to buy low quality diesel from the international market and sell it to the consumers at higher prices. This is a cheating of technical nature.
Sources said the government had issued the circular to the refineries for switch over in July 2006. However, the industry considers that the deadline does not allow it sufficient lead time to carry out the necessary feasibility studies.
They said that the government was actively pursuing the case to ensure that the refineries do not get any excuse to delay in switching over to Euro II diesel.
Owais
SENIOR MEMBER
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Mobilink to launch $300 million bonds
KARACHI (September 29 2006): Pakistan Mobile Communications (Pvt) Ltd - Mobilink- will next month launch a $300 million denominated bonds, a banker with knowledge of the deal said on Thursday.
"The size of the issue would be approximately $300 million," said the source, requesting anonymity. "It would be a Reg. S bond, launched in October," he said, which typically means the securities would not be sold in the United States. The source gave no details on the maturity of the issue, which would be the first dollar bond sale by Pakistan's biggest cellphone operator.
Mobilink, the local unit of Egypt-based Telecom Company Orascom declined to comment on the debt sale, but market sources say it has mandated ABN Amro and Deutsche Bank to handle the issue.
KARACHI (September 29 2006): Pakistan Mobile Communications (Pvt) Ltd - Mobilink- will next month launch a $300 million denominated bonds, a banker with knowledge of the deal said on Thursday.
"The size of the issue would be approximately $300 million," said the source, requesting anonymity. "It would be a Reg. S bond, launched in October," he said, which typically means the securities would not be sold in the United States. The source gave no details on the maturity of the issue, which would be the first dollar bond sale by Pakistan's biggest cellphone operator.
Mobilink, the local unit of Egypt-based Telecom Company Orascom declined to comment on the debt sale, but market sources say it has mandated ABN Amro and Deutsche Bank to handle the issue.
Owais
SENIOR MEMBER
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Pakistan for early signing of ECO trade accord
UNITED NATIONS (September 29 2006): Pakistan has called on member states of Tehran-based Economic Co-operation Organisation (ECO) to sign and ratify a trade agreement "at the earliest" so as to boost regional trade.
The call was given by Minister of State for Foreign Affairs Makhdoom Khusro Bakhtiar while speaking at the ECO Council of Ministers meeting held in New York on the margins of the 61st Session of the United Nation General Assembly. The Minister also called for progress on the Fast Track Protocol under Ecota, while stressing its voluntary character, as originally agreed.
He emphasised the need for progress on the creation of the ECO Science Foundation and welcomed the proposal by the ECO Secretariat to hold a meeting of experts on the subject in the near future.
Earlier, during the 10th Joint Ministerial Meeting of ECO and Association of South East Asian Nations (Asean), Makhdoom Khusro Bakhtiar noted that Pakistan as the founding Member of ECO and Saarc and as a country pursuing close collaboration with Asean was very happy to see the intensification of co-operation between Asean and ECO.
He welcomed the signing of the ECO-Asean memorandum of understanding (MoU) in January 2006 and called for the institution of a periodic review mechanism to assess the implementation of the MoU. The State Minister also stressed the need to work on energy co-operation as a priority area for collaboration between ECO and Asean. The ECO members are Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan.
UNITED NATIONS (September 29 2006): Pakistan has called on member states of Tehran-based Economic Co-operation Organisation (ECO) to sign and ratify a trade agreement "at the earliest" so as to boost regional trade.
The call was given by Minister of State for Foreign Affairs Makhdoom Khusro Bakhtiar while speaking at the ECO Council of Ministers meeting held in New York on the margins of the 61st Session of the United Nation General Assembly. The Minister also called for progress on the Fast Track Protocol under Ecota, while stressing its voluntary character, as originally agreed.
He emphasised the need for progress on the creation of the ECO Science Foundation and welcomed the proposal by the ECO Secretariat to hold a meeting of experts on the subject in the near future.
Earlier, during the 10th Joint Ministerial Meeting of ECO and Association of South East Asian Nations (Asean), Makhdoom Khusro Bakhtiar noted that Pakistan as the founding Member of ECO and Saarc and as a country pursuing close collaboration with Asean was very happy to see the intensification of co-operation between Asean and ECO.
He welcomed the signing of the ECO-Asean memorandum of understanding (MoU) in January 2006 and called for the institution of a periodic review mechanism to assess the implementation of the MoU. The State Minister also stressed the need to work on energy co-operation as a priority area for collaboration between ECO and Asean. The ECO members are Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan.
Owais
SENIOR MEMBER
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Pakistan allowed access to Malaysian markets
ISLAMABAD (September 29 2006): Malaysia has agreed to provide market access to Pakistan's traditional items of exports including mangoes, textile, leather, surgical instruments, agriculture and manufactured goods. Oranges', potatoes and lemon already can be exported to Malaysia at zero duty wef January 1.
Agreement to this effect was reached during the seventh meeting of Trade Negotiating Committee (TNC) of the Pakistan-Malaysia Free Trade Agreement (FTA) was held here on September 25-27.
The Pakistan delegation was led by the Joint Secretary Ministry of Commerce, Shahid Bashir, while the Malaysian delegation was led by the Deputy Secretary General, Ministry of International Trade and Industry, Dato Ooi Say Chuan.
It was expected that market access secured by Pakistan through this FTA would enhance Pakistan's exports to Malaysia and will also bring the people of the two friendly countries closer.
The draft FTA also includes a chapter on promotion and protection of investment.
The FTA was expected to provide impetus for attracting foreign direct investment (FDA) from Malaysia.
The meetings were held in an atmosphere of complete cordiality and understanding and both the sides made substantial headways in finalising the draft.
Except a very few most of the draft agreement chapters have been agreed upon.
It had also been decided by the two sides to convene the meeting of the subgroup on services and rules of origin to settle the all-outstanding issues before the next TNC meeting in mid October.
The two sides also reaffirmed their desire to complete the negotiations on the bilateral FTA before the forthcoming visit of the Malaysian Prime Minister to Pakistan in November, this year.
ISLAMABAD (September 29 2006): Malaysia has agreed to provide market access to Pakistan's traditional items of exports including mangoes, textile, leather, surgical instruments, agriculture and manufactured goods. Oranges', potatoes and lemon already can be exported to Malaysia at zero duty wef January 1.
Agreement to this effect was reached during the seventh meeting of Trade Negotiating Committee (TNC) of the Pakistan-Malaysia Free Trade Agreement (FTA) was held here on September 25-27.
The Pakistan delegation was led by the Joint Secretary Ministry of Commerce, Shahid Bashir, while the Malaysian delegation was led by the Deputy Secretary General, Ministry of International Trade and Industry, Dato Ooi Say Chuan.
It was expected that market access secured by Pakistan through this FTA would enhance Pakistan's exports to Malaysia and will also bring the people of the two friendly countries closer.
The draft FTA also includes a chapter on promotion and protection of investment.
The FTA was expected to provide impetus for attracting foreign direct investment (FDA) from Malaysia.
The meetings were held in an atmosphere of complete cordiality and understanding and both the sides made substantial headways in finalising the draft.
Except a very few most of the draft agreement chapters have been agreed upon.
It had also been decided by the two sides to convene the meeting of the subgroup on services and rules of origin to settle the all-outstanding issues before the next TNC meeting in mid October.
The two sides also reaffirmed their desire to complete the negotiations on the bilateral FTA before the forthcoming visit of the Malaysian Prime Minister to Pakistan in November, this year.
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