Pakistan Economy - News & Updates - Archive

[Owais]

Hong Kong also awakes as SCRAs surge to $181 million


KARACHI (October 08 2006): Hong Kong, which had been dis-investing ever since the beginning of FY07 and had negative balances to the tune of $3.1 million under Special Convertible Rupee Accounts (SCRAs) until about the end of September, has brought in so far during October nearly $9.5 million, including $6.3 million on October 5.

Singapore, which continues to be the lead investor, also brought in $0.6 million by way of fresh funds on October 5. Accordingly, its cumulative net flow during FY07 reached $101.4 million on that date.

USA also strengthened its SCRAs, albeit nominally, with net flows during the year to October 5 rising to $26.753 million from $26.748 million a day before.

On the other hand, the balances of UK and Switzerland deteriorated a bit. UK's positive balances showed a net withdrawal of $0.011 million on October 5, with its overall balance declining to $71.154 million on that date, while negative balances of Switzerland deteriorated by another $0.416 million to reach $19.445 million on October 5.

No change in balances of any other country was observed. Meanwhile, the benchmark KSE-100 gained 112.27 points to close at 10,855.82 points on October 5 successfully crossing 10,800 psychological barrier.

The KSE-30 share index closed at 13,544.18 points, or 264.34 points higher than a day earlier, making a historical headway by jumping over 13,500 level for the first time. The volume-based BRIndex30 registered a positive change of 224.62 points to close at 11,720.83 points on October 5.

The bullish trend at the shares market was attributed to the news about increasing balances in non-residents' special convertible rupee accounts and acquisition of a domestic bank (Prime Bank) by a leading foreign bank (ABN Amro).

Price flare-ups were witnessed in banks and OGDCL scrips, in particular, and were triggered by reports of major public sector, or partly public sector, banks and OGDCL's GDR listing on London Stock Exchange. Accordingly, across-the-board buying was witnessed in KSE with NBP, MCB, Bank Alfalah and OGDCL playing the special lead roles.

The aggregate market capitalisation, accordingly, reached close to the Rs 3 trillion-mark amid healthy trading at the Karachi bourse, which was just 144 points behind the 11,000 milestone. Besides speculative buying in stocks related to oil and gas exploration and banking, cement sector also extended the needed support to allow the market reach the record capitalisation figure.

 

[Owais]

Growers asked to supply sugarcane to mills

HYDERABAD (October 08 2006): Sindh chief minister Dr Arbab Ghulam Rahim has advised growers to supply their sugar cane production to those sugar mills, which have completed preparation for sugar cane crushing season 2006-07.

The Sindh Agriculture Department informed here on Saturday the management of Ansari Sugar Mills Matli, Army Welfare Sugar Mills, Badin and Khairpur Sugar Mills, Khairpur have informed their mills are ready for crushing but due to non-supply of sugar cane from growers, the crushing could not be started yet, according to a handout issued here, on Saturday.

In view of such a situation, the Sindh chief minister has advised sugar cane growers to supply their sugar cane production to the management of these sugar mills so that sugar cane crushing season 2006-07 could be started in the province accordingly.

 

[Owais]

Nine world operators interested in KPT's deepest terminal

ISLAMABAD (October 08 2006): For the construction of Karachi Port's deepest terminal, nine world-renowned operators have submitted their pre-qualification documents.

Talking to a private news channel, Director General of Planning and Development, Karachi Port Trust, Jamshed Zaidi, said that among those companies, DP World, CGM and AP Moller were included.

He said the pre-qualified parties might be selected in November, while the successful party would be chosen by February or March. Jamshed Zaidi said that initially, 16-metre deep draft would be prepared and four berths would be built. Besides, 1.5 kilometres long key wall would be constructed, which would be financed by the successful party.

Jamshed Zaidi said the project of deep draft containers terminal worth 500 million dollars and would be given to the operator on lease for 25 years, who would fix latest equipment on it.

 

[Owais]

Over $20 million fresh foreign investments in bourses


KARACHI: Foreign investors made fresh investments of over $20 million in Pakistani stock markets up to October 6 in the current fiscal year.

State Bank of Pakistan (SBP)’s released figures showed that the foreign investors until October 6 current fiscal year made fresh investments of $26.4 million in the stock markets, while the Swiss, British and the US investors during the same period have taken out $6.37 million.

Thus during July1 to October 6, the aggregate volume of foreign investments in the stock markets pegged at $201 million, out of which, Hong Kong investors made investments of $10.1 million, UAE $0.072 million, Britain $0.377 million and USA $15.8 million.

 

[Owais]

Mexico lifts ban on Pakistani rice import

ISLAMABAD: Mexican government has lifted the ban on the import of Pakistani rice.

Federal secretary for food, agriculture and livestock, Ismail Quraishi told Geo News that the Mexican government has sent a special communication intimating their decision in this regard. He told that a special directive has been issued to the Rice Commissioner for providing guidance to the exporters regarding the changed situation.

Ismail Quraishi told that it was premature to say as to how much of rice would be exported through this avenue. Mexico had slapped a ban on Pakistani rice import ten years ago.

 

[Owais]

Central govt announces new payphone policy


ISLAMABAD: Ministry of Information Technology on Saturday announced a new rationalized policy to allow for setting up of public call offices (PCOs) across the technology platforms of all cellular, local loop (LL) and wireless local loop licensees.

The new policy is aimed at spurring growth and proliferation of telecom access through a simplified mechanism of PCO/payphone service provisioning by all local loop operators, including cellular mobile and WLL licensees, said an official statement released by the ministry.

The statement listed main objectives of the policy as being achievement of a broader coverage, outreach and economic opportunity integrating seamlessly into the Rozegar Scheme launched by President Pervez Musharraf.

The policy makes available several community level business models based on PCO/payphone services which can be launched through the microfinance programme of National Bank of Pakistan and other commercial banks under the Rozegar scheme.

Similar business models had been successfully employed in several countries and the new policy would facilitate their adoption in Pakistan through promotion of community level entrepreneurship to improve the level of economic opportunities
available to the rural population.

The statement noted that the need for rationalizing the payphone/PCO regime was felt due to the effective role the PCOs, especially those offered by cellular and WLL operators, could play in enhancing the access, outreach and employment
opportunities.

The new policy establishes the right of mobile cellular operators and regional LL/WLL licensees to be treated on a par with nationwide integrated licensees such as PTCL, Special Communication Organisation and NTC.

They would henceforth be allowed to operate payphones/PCOs as a part of platform services without any additional fee or license either directly or through other distribution channels.

The policy clarifies only third parties wanting to offer services in collaboration with the licensed operators will be required to register for the class license issued by the PTA.

The entities operating under the individual payphone licenses may continue to operate under the current regime until theexpiry of their license or they may opt for a class license or become associated with any of the licensees.

The policy tasks the PTA to negotiate with banks and other institutions to facilitate provision of loans/credit lines without complexity and burdensome documentation.

A broad and well-structured publicity campaign will also be undertaken to inform the public about the policy in the context of President's Rozegar Scheme.

The statement said the new policy was expected to help bridge the access gap and enhance outreach of service to the un-served rural masses.

The policy is also expected to provide improved economic opportunity by promoting self-employment based on ownership of street and household level community PCOs under the microfinance facility of the Rozegar Scheme.

The scheme would benefit the rural consumers by providing them increased choice in payphones.

 

[Kaiser]

Nine world operators interested in KPT's deepest terminal

ISLAMABAD (October 08 2006): For the construction of Karachi Port's deepest terminal, nine world-renowned operators have submitted their pre-qualification documents.

Talking to a private news channel, Director General of Planning and Development, Karachi Port Trust, Jamshed Zaidi, said that among those companies, DP World, CGM and AP Moller were included.

He said the pre-qualified parties might be selected in November, while the successful party would be chosen by February or March. Jamshed Zaidi said that initially, 16-metre deep draft would be prepared and four berths would be built. Besides, 1.5 kilometres long key wall would be constructed, which would be financed by the successful party.

Jamshed Zaidi said the project of deep draft containers terminal worth 500 million dollars and would be given to the operator on lease for 25 years, who would fix latest equipment on it.

I think the contract should be given over to dp world

 

[Neo]

NIT unit’s net asset value rises by 8.40pc

KARACHI, Oct 7: National Investment Trust (NIT) — Pakistan’s largest mutual fund — posted Net Asset Value (NAV) of its unit at Rs46.69 at September 30, showing increase of 8.40 per cent, from Rs43.07 at the close of previous quarter on June 30 (ex-dividend).

In a statement issued on the conclusion of the meeting of its board of directors on Saturday, the fund claimed that the NAV had outperformed benchmark KSE-100 index by a margin of 3.17 per cent; the index having increased by 5.24 per cent during the period under review.

NIT stated that net income earned by the fund during the first quarter ended Sept 30, amounted to Rs943 million which translated into earning per unit of Rs0.60.

“It may be mentioned here that the net income of Rs5,829 million earned by the fund in the corresponding three months of last year included capital gain of Rs5,128 million earned through sale of strategic holding of National Refinery Limited (NRL) by the Privatisation Commission”, chairman NIT Tariq Iqbal Khan observed and added that net income of the fund would have depicted an increase of 35 per cent in the period under review if the capital gain of NRL earned during the corresponding quarter of previous year were to be set aside.

Similarly, capital gains realised during the first quarter of the previous year stood at Rs5,228 million, which included Rs5,128 million on account of NRL. Excluding that one-time gain, capital gains registered a growth of 63.14 per cent for the period under review to Rs155 million, from Rs95 million in the same time last year.

Dividend income of the fund amounted to Rs951 million compared to Rs716 million in the corresponding period of last year, showing an increase of 32.85 per cent.

Total amount of fund under management of NIT grew to Rs73.09 billion at Sept 30, from Rs64.30 billion as on June 30, reflecting a growth of 13.68 per cent.

The sale of NIT units (including CIP) during the quarter under review rose by 125 per cent to Rs3,742 million compared to sale amounting to Rs1,665 million in the corresponding period of last year.

 

[Neo]

Pakistani marble can compete in quality

ISLAMABAD, Oct 7: Federal Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen has said that Pakistani marble is of excellent quality and its products can compete with any other products in the world market.

Pakistani entrepreneurs working in the marble and granite sector are doing very well and government is very keen to help them so as to tap full potential in the marble and granite sector, he added.

According to a press release issued here on Saturday the minister was talking to the Pakistani exhibitors during his visit to the Pakistani pavilion at Verona Marble fair on the last day of his visit to Italy.

Mr. Tareen led a Pakistani delegation for participation in Verona Marble fair held in Italy from 5-8 October. The delegation included experts of the newly-formed Pakistan Stone Development Company) (Pasdec), representatives of the Sindh Mines and Mineral Institute, Export Promotion Bureau and some private companies.

The minister, talking to the exporters at Pakistani stalls, said,” We have a long way to go to fully develop our marble and granite sector. We need to employ new technology and scientific methods to compete with the rest of the world,” he said adding that it is for these reasons that Pasdec has been formed.

Under Pasdec the government plans to set up quarries where modern methods of mining will be used. It also plans to impart training to the people working in the marble and granite industry, the minister said.

He further said that the Pakistani participation in the fair would prove very useful for Pakistani marble industry.

“His meetings with the Italian officials have afforded an excellent opportunity to learn from the Italian experience, which will help us in developing our marble and granite sector up to its fullest potential,” said the minister adding that he was satisfied with the quality of items displayed by Pakistani companies at the Italian fair.

 

[Neo]

Pakistan's kitchen items prices highest in Saarc region

ISLAMABAD (October 08 2006): Prices of most of the kitchen items in Pakistan are higher as compared to Dhaka, New Delhi and Colombo. According to a comparison of the prices of 26 essential items among the four major South Asian Association for Regional Co-operation (Saarc) members available to Business Recorder showed that except wheat, flour and rice, most of the kitchen items prices are higher than the neighbouring Dhaka and New Delhi.

The prices of combustible fuels were cheaper in India, Sri Lanka and Bangladesh, while POL prices were almost the same in the other four neighbouring countries of South Asia. Similarly, the prices of fertilisers and cement were cheaper in the most populous countries on the earth, the document added.

The prices of essential items in Islamabad were as: wheat Rs 11.76/kg, wheat flour Rs 13.50/kg, rice basmati broken Rs 23.44/kg, masoor pulse Rs 44.50/kg, moong pulse Rs 61.00/kg, mash pulse washed Rs 76.50/kg, gram pulse washed Rs 42.00/kg, beef Rs 133.75/kg, mutton Rs 255.00/kg, farm chicken Rs 81.25/kg, Eggs Rs 36.75/dozen, sugar Rs 34.82/kg, cooking oil Rs 86.00/kg, potatoes Rs 30.00/k, onion Rs 21.25/kg, tomatoes Rs 42.13/kg, red chilies Rs 80.00/kg, Garlic Rs 75.75/kg, Diesel Rs 38.80/L, Petrol Rs 57.77/L, Kerosene Rs 40.00/L, Natural gas Rs 3.69/MMBTU, LPG Rs 60.00/kg, CNG Rs 33.40/CM, Elec (domestic 1-100 units Rs 2.41/unit, Elec commer 1-100 units---, DAP Rs 23.00/kg, Urea Rs 11.00/kg and Cement Rs 283/50kg.

The prices of essential items in Dhaka, Bangladesh were: wheat Rs 15.69/kg, wheat flour Rs 17.43/kg, rice basmati broken Rs 56.66/kg, masoor pulse Rs 61.02/kg, moong pulse Rs 61.02/kg, mash pulse washed Rs 61.02/kg, gram pulse washed Rs 55.02/kg, beef Rs 130.77/kg, mutton Rs 174.00/kg, farm chicken Rs 82.82/kg, Eggs Rs 43.59/dozen, sugar Rs 39.23/kg, cooking oil Rs 52.30/kg, potatoes Rs 19.17/kg, onion Rs 15.69/kg, tomatoes Rs 52.33/kg, red chilies Rs 69.74/kg, Garlic Rs 52.30/kg, Diesel Rs 28.76/L, Petrol Rs 50.56/L, Kerosene Rs 33.12/L, Natural gas Rs 3.35/MMBTU, LPG Rs 23.43/kg, CNG Rs 6.49/CM, Elec domestic 1-100 units Rs 2.17/unit, Elec commer 1-100 units 4.39/unit, DAP Rs 13.16/kg, Urea Rs 4.35/kg and Cement Rs 244/50kg.

The prices of essential items in New Delhi, India were: wheat Rs 15.72/kg, wheat flour Rs 18.34/kg, rice basmati broken Rs 26.20/kg, masoor pulse Rs 47.16/kg, moong pulse Rs 70.74/kg, mash pulse washed Rs 83.84/kg, gram pulse washed Rs 55.02/kg, beef Rs 91.31/kg, mutton Rs 183.40/kg, farm chicken Rs 91.70/kg, Eggs Rs 28.82/dozen, sugar Rs 30.13/kg, cooking oil Rs 65.50/kg, potatoes Rs 15.72/kg, onion Rs 15.72/kg, tomatoes Rs 26.20/kg, red chilies Rs 131.00/kg, Garlic Rs 81.31/kg, Diesel Rs 43.03/L, Petrol Rs 63.53/L, Kerosene Rs 47.16/L, CNG Rs 25.15/CM and Cement Rs 263.31/50kg.

The prices of essential items in Colombo, Sri Lanka were: wheat Rs 35.00/kg, wheat flour Rs 35.00/kg, rice basmati broken Rs 64.00/kg, masoor pulse Rs 38.00/kg, moong pulse Rs 38.00/kg, mash pulse washed Rs 38.00/kg, gram pulse washed Rs 41.00/kg, beef Rs 166.00/kg, mutton Rs 282.00/kg, farm chicken Rs 146.00/kg, Eggs Rs 43.92/dozen, sugar Rs 40.00/kg, cooking oil Rs 137.00/kg, potatoes Rs 39.00/kg, onion Rs 24.00/kg, tomatoes Rs 15.00/kg, red chilies Rs 125.00/kg, Garlic Rs 58.00/kg, Diesel Rs 37.29/L, Rs 57.00/L, Kerosene Rs 25.64/L, LPG Rs 41.62/kg, Elec domestic 1-100 units Rs 10.00/unit, DAP Rs 24.46/kg, Urea Rs 6.98/kg and Cement Rs 341.00/50kg.

 

[Neo]

KCCI for identical industrial policies throughout country

KARACHI (October 08 2006): The Karachi Chamber of Commerce and Industry (KCCI) has suggested that a comparative study should be conducted of various policies practised by provinces, influencing trade and industry, to remove dissimilarities in the country.

This suggestion was made in a report of Industry and Privatisation subcommittee of KCCI. The report suggested that labour laws must be the same all over the country.

The report has proposed that the self-assessment scheme for social security, as introduced by Punjab government, should be adopted by Sindh government also and all inspections, regarding labour, should be stopped completely.

The report noted that land rent has been increased from Re 0.06 to Rs 8 to Rs 10 per square yard per annum by the provincial government, which is very high and must be revised downward.

The report noted that the price of land is increasing rapidly. Therefore, the Sindh government should also remove the ban on conversion of agricultural land into industrial land, to facilitate industrial development in the province.

The report suggested that industries should be exempted from inspection of their weight and measures. The report proposed that industries should be exempted from professional tax as well as from revenue stamp duty.

The report pointed out that the government is responsible to provide all infrastructures at affordable price to industries to make them cost-effective. The report demanded that the late payment surcharge on KESC and gas bills, which are 10 percent and 2 percent, respectively, should be reduced, as it is a financial burden on industries.

The cost of water connections to industries have been revised by KWSB, and for a connection of 0.5 inch water line the charges are around Rs 0.55 million, which is very high and an impediment in industrial growth, Therefore, it should be reduced to reasonable limits, the report proposed.

It said that KWSB should lay the main lines, and individual connections from main line would be borne by the industries. KWSB may install water meters to charge industries according to consumption.

 

[Neo]

0.5 million housing units needed annually to meet shortfall: KCCI

KARACHI (October 07 2006): The Karachi Chamber of Commerce and Industry (KCCI) estimated that the overall production of housing units has to be increased to 0.5 million units annually to address 6.1 million backlog of housing in Pakistan for meeting the housing shortfall in next 20 years.

This was stated in a report of KCCI sub-committee on housing, construction industry and infrastructure. The sub-committee has also extracted statistical date, which showed that there was backlog of 6.1 million houses in Pakistan, while annual requirement of housing units each year was 670,000 units.

It is, however, a matter of great concern that the present accomplishment is only 270,000 units per annum instead. Therefore, the extensive disparity is taking its toll with addition of 300,000 units every year in the backlog out of which the annual requirement of Karachi comes to 170,000 units alone. The report said that the port cities all over the world always played significant role in the economic well being of the nations. Karachi is the only port city of the country and its participation in the economy is worked out to 68 percent of the total revenues collected by the government exchequer.

The report noted that there were 482 katchi abadies in Karachi in year 1984 but it had increased so rapidly to reach 1471 katchi abadies in 2005. The report stressed the need to plan a course of the swelling population of the city.

According to housing census 1998, the housing backlog, which stood at 4.30 million, has been currently projected at 6.19 million. The report said that the present housing stock is also rapidly ageing and an estimate suggests that more than 50 percent stock is over 50 years old. It is also estimated that 50 percent of the urban population now lives in slums and squatter settlements. The report said that meeting the backlog in housing, besides replacement out-lived housing unit is beyond the finical resources of the government. This necessitates putting in place of framework to facilitate financing in the formal private sector and mobilise non-government resources for a market base housing finance system.

 

[Neo]

1,893 more villages to be electrified

KARACHI (October 07 2006): A total of one thousand eight hundred and ninety-three villages of Sindh are to be provided with electricity during the financial year 2006-07.

Under the village electrification programme, bids have been invited till October 21, 2006, in the office of the Project Director Hesco, Construction Operations, Wapda, Hyderabad. All these 1,893 villages will be provided electricity under the project within the financial year 2006-07.

 

[Neo]

Sunday, October 08, 2006

International study backs Pakistan’s stance: FTA not to affect US textile industry, US officials told

ISLAMABAD: Based on findings of an international study, Pakistan has assured the United States that a Free Trade Agreement (FTA) between the two countries would not have adverse affect on the US textile industry, a senior official at the ministry of commerce told the Daily Times on Saturday.

A Pakistan-USA FTA is critical to increased investment in Pakistan and increased export to the USA. It would send a strong signal to all countries about US commitment to Pakistan’s economy. It would demonstrate also that Pakistan plays by internationally accepted economic rules.

This was conveyed to the US authorities during the Pakistan-United States Trade and Investment Framework Agreement (TIFA) Council second meeting held at Islamabad from Oct 2 to 4.

The recent study by the prestigious Institute for International Economics provides both political and economic rationale for an FTA with Pakistan and minimizes the perception widely held in the USA that such an agreement would adversely affect the US textile industry, the Pakistan side informed the US authorities.

The official was of the view that the US is denying market access in textile products to Pakistan under any possible trading arrangement, or the proposed FTA. The US is asking Pakistani authorities to diversify their export base and get market access on such products other than textile due to the strong opposition by the US textile industry. The official said textile exports constitutes 80% of the Pakistan’s export base and the US denial to market access in textile to Pakistan means no benefit for Pakistan in any new trading arrangement.

However, some experts are of the view that Pakistan should diversify its export base because it would help Pakistan to benefit from the US as well as from other potential trading partners in the possible market access in future.

The Pakistan side, during the TIFA Council meeting, also stressed that the US administration’s early official designation of Pakistan as a potential FTA partner is important as the US president’s fast track authority for conducting trade negotiations would lapse next year (July 2007).

Pakistan accords high priority to its trade and commercial relations with the USA not only because it is Pakistan’s largest partner, but also because of quality of the USA’s industrial and services sector and its leadership in technology. Pakistan believes in a comprehensive economic partnership between the two countries under the Trade and Investment Framework Agreement (TIFA) to realize the full potential of bilateral relations.

To this end negotiations are being held on Bilateral Investment Treaty (BIT) and there is a need to have corresponding progress on trade side at the TIFA meeting.

According to the official, the US side was also informed that Pakistan values US support in combating extremism through economic uplift. Reconstruction Opportunity Zones (ROZs) have the potential to improve US image in Pakistan in a manner that the earthquake relief work did last year. Pakistan expects ROZs to help realize these objectives of social and economic stability through economic development, employment generation and increased economic activity in the country.

The government has made considerable progress towards Intellectual Property Rights (IPR) compliance by way of establishment of the Intellectual Property Organization of Pakistan (IPOP) and action taken against the companies that were involved in pirated disk business.

Pakistan has already worked out its wish list for locations and product coverage, which the government of Pakistan has shared with the US government. The government considers the private sector to be the main engine of growth and the main source of employment generation. In Pakistan a substantially large portion of economic activities is in the hands of the private sector and with the accelerated pace of privatization, the role of the private sector is further expanding. Pakistan’s banking, financial, telecom, and IT sectors are much stronger today compared with 10 years ago and in comparison with most of the other countries in the region.

 

[Neo]

Sunday, October 08, 2006

Pakistan team to study Japanese technical education model

ISLAMABAD: Under technical cooperation between the Government of Pakistan and Government of Japan, a five member Pakistani delegation has left for Japan to study the Japanese model of Technical and Vocational Education and Training (TVET) says a press statement.

Headed by Kamran Rasool Secretary Ministry of Industries, Production and Special Initiatives; the delegation includes Mr. Khushnood Akhtar Lashari Executive Director National Vocational and Technical Education Commission (NAVTEC), Nadeem Ashraf Secretary Technical Education & Vocational Training Authority (TEVTA) Punjab, Tariq Awan Director Manpower and Technical Education NWFP and Durr-e-Shahwar Nisar Member FPCCI Committee on Women Entrepreneurship Karachi.

During their stay, the delegation will study the Japanese technical and vocational education and training (TVET) system; linkages programme between schools, institutions, local communities and industry; and shall also study the way in which the public-private partnership is contributing to the TVET. The delegation will also observe various training initiatives of the Japanese government in the fields of agriculture, services sector, construction, hospitality, tourism, automobile, metal working, and light engineering.

The overall objective of the technical cooperation, extended through the Government of Japan is to assist the policy makers and concerned government departments in the formulation of policies and programmes for strengthening and upgrading of technical and vocational education and training (TVET) system in Pakistan and to learn from the Japanese experiences. The delegation will explore and identify possible areas of further cooperation between the two countries in the field of technical and vocational education. Realizing the role of skilled and technically educated manpower for development of overall national economy, the Government of Pakistan has established NAVTEC. The Commission is reviewing policy and evolving strategy, as well as preparing training programmes relating to human resource development, with a focus on TVET. The visit of this high level delegation will help NAVTEC to learn from the Japanese model.