Pakistan Economy - News & Updates - Archive

[Neo]

PIA’s revenue increases by 13pc

KARACHI: The revenue of Pakistan International Airlines (PIA) has increased by 13 percent. This was announced in a statement of the national carrier issued here on Monday.It said that the PIA’s 298th Board Meeting was held in Karachi on Monday with the Chairman and CEO PIA, Tariq Kirmani, in the chair.

PIA Board approved the 3rd quarterly accounts for the period July-September 2006 and the interim condensed financial statements (un-audited) for the nine months period ended September 30, 2006. The overall revenue of the nine months to September 2006 has increased by 13per cent.

This healthy revenue growth was fully offset by un-favourable 39 per cent growth in fuel cost mainly due to 28 per cent increase in fuel prices. The domestic and international tariffs were suitably adjusted during the year to partially recover the increased cost, as the market forces did not allow the company to fully recover the fuel cost increase.

The fuel cost for the nine months to September 2006 accounts for 49 per cent of the revenue whereas it was only 40 per cent of the revenue during the same period last year. In this highly competitive environment, PIA managed to increase its market share in the domestic passenger segment and fully protected its share in the international passenger segment.

The overall available Seat Kilometres increased by over 13 per cent and Revenue Passenger Kilometres increased by a healthy 10 per cent. The cargo business also showed an increase of over 7 per cent. The passenger and freight yield showed a modest increase as well. As of end of September 2006, PIA’s market share in the domestic passengers segment had increased to 69 per cent and in the international passenger segment to 48 per cent.

This growth in market share was achieved by improved customer services, additional and convenient flight scheduling and better facilities especially to Business Class passengers among other initiatives.

The addition of two new Boeing 777LR also greatly facilitated the quality and convenience to the passengers. The Board appreciated the management’s efforts to counter the adversities by adopting a strategy focusing attention on enhancement of revenue through improved sales, of new selling initiatives, competitiveness and cost curtailment. A professionally developed financial re-structuring plan has also been submitted to the GOP for assisting the company to rejuvenate itself for the challenges ahead.

 

[Neo]

Pak wants closer economic ties, enhance cooperation with Russia: PM

ISLAMABAD: October 31, 2006: Prime Minister Shaukat Aziz has said Pakistan attaches great importance to its relations with Russia and wants closer economic ties and enhanced co-operation in a broad spectrum of areas particularly in the fields of oil, gas, petrochemical and steel.

Talking to a Russian Delegation led by Mr. Mikhail L. Golubev, President EZOT, a leading fertiliser company of Russia who called on him at the PM's House on Tuesday morning, the prime minister said there is a great potential for closer economic ties and bilateral co-operation between Pakistan and Russia and Pakistan desires to tap this potential for mutual benefit.

The premier said that wide-ranging structural reforms introduced during the last seven years coupled with macroeconomic stability, rapid, strong and sustained economic recovery, reduced cost of doing business and transparency in policies and procedures has transformed Pakistan into one of the ideal locations for foreign investment and investments are flowing into Pakistan from all parts of the world which is resulting in faster growth, jobs creation and poverty alleviation.

Aziz said the geo-strategic location of Pakistan makes it an ideal location to serve as a regional hub for manufacturing and trade and Pakistan can cater to the needs of the market of many Asian regions.

He said Pakistan is strengthening its infrastructure and building a network of roads and highways to leverage its true potential .

Talking of the fertiliser policy of the government, the prime minister said agriculture is the backbone of our economy and the government has taken a number of steps to increase the production and productivity in the agriculture sector.

He said the government is encouraging the use of a blend of fertilisers to increase the yield per acre.

Aziz said the use of DAP has increased manifold after the government's decision to reduce its price. The enhanced use of DAP is expected to result in substantial increase in the next wheat and sugarcane crops, he added.

Mr. Mikhail L. Golubev said his company, which has more than 7000 employees and earns a revenue of $ one billion annually is happy about their plans to start joint ventures with a Pakistani company.

He appreciated the investment friendly polices and procedures in Pakistan and said Pakistan has good prospects for foreign investment in a host of areas.

 

[Owais]

Russia to participate in IPI gas pipeline project: India


MOSCOW (updated on: October 31, 2006, 20:14 PST): India's Minister for Petroleum and Natural Gas Murli Deora has welcomed the Russian proposal to participate in the India-Pakistan-Iran (IPI) gas pipeline.

After his talks with Russian Energy and Industry Minister Viktor Khristenko, Deora said, India has welcomed the Russian proposal to participate in the 2,700 km long project, in the form of technological, financial and investment assistance.

"From India, I welcomed the proposal by Khristenko during the talks. It is a very important that we from India welcome the participation by Russian companies in the India-Pakistan-Iran gas pipeline, Deora said, stressing "We will take up this issue with Iran and Pakistan."

Deora is on a two-day visit to participate in the "Moscow Energy Week," an international gathering for representatives of oil industry.

He also invited Khristenko to attend the ceremony to be held in the first week of December at Mangalore to receive the first shipment of crude oil from Sakhalin-1 project by Prime Minister Manmohan Singh.

The first shipment of about 90,000 tons crude oil by the ONGC's overseas arm, the OVL, from Sakalin-1 project would be processed at ONGC's subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL).

Deora said during the talks with Mr Khristenko, the sides exchanged views on the issue of increased co-operation between Indian and Russian oil companies.

"The issue of obtaining participating interest in upstream projects of Russia came up for discussion," he said adding the OVL would make large investments in the E&P projects likely to come up in Sakhalin region.

Noting enhanced co-operation between Russian and Indian companies, in the mutual interest, Khristenko agreed to consider the OVL's offer for co-operation with Rosneft and Gazprom.

"The commercial discussion would pave the way for better co-operation between the two sides," he said.

 

[Owais]

Oil refinery to be set up at Khalifa Point: ECC defers auto policy draft

ISLAMABAD (November 01 2006): The Economic Co-ordination Committee (ECC) of the Cabinet, which met here with Prime Minister Shaukat in the chair on Tuesday, approved establishment of an export-specific oil refinery at Khalifa Point (in Hub), with 200,000 to 300,000 barrels per day (bpd) capacity.

The project would need $4 to 5 billion, of which 75 percent share would be of Abu Dhabi-based public entity, 'International Petroleum Investment Company' (IPIC), while Parco would have the other 25 percent shares.

Briefing the journalists, Dr Ashfaque Hasan Khan, Economic Advisor to Finance Ministry, said that several other parties had shown interest in purchase of project shares, prominent among them, according to him, was the Asian Development Bank (ADB).

He said that 50 percent investment to be made in the project would be by the IPIC, while the remaining 50 percent of Abu Dhabi government would be withdrawn later.

The project would be commissioned in 2010, but its construction would start from July next year. He said that the Oil and Gas Development Company Limited (OGDCL) has discovered 28.5mmcfd gas in Sindh, but did not provide details of the discovery.

The ECC did not approve new auto policy draft, prepared by the Ministry of Industries and Production, and directed that the policy should be re-submitted after taking all stakeholders on board including Finance Ministry, CBR and the private sector.

"The ECC was of the view that the policy needed more deliberations," he said.

When asked whether the auto policy draft was deferred because of powerful auto makers' lobby, he said there were other stakeholders who should also be consulted on the issue.

Dr Ashfaque said that the ECC approved re-channelisation of gas from Mari Deep and Zamzama fields to the power sector. Giving the details of this specific issue, he said that in 2004, PPIB had allocated 60mmcfd gas to the power project of Fauji Foundation and 40mmcfd to ETA power project, but both projects were short of 9mmcfd (5+4mmcfd).

According to a study, 50mmcfd additional gas could be drilled from Mari Deep, in addition to the existing capacity of 100mmcfd, of which 9mmcfd would be allocated to both projects.

However, the remaining 41mmcfd gas would be left at the disposal of SNGPL, which could be allocated to Wapda's Guddu thermal power station and it would give same quantity of gas to Zamzama that would be used in any other thermal power station to be established in central Punjab. Regarding utilisation of production bonus/obligations of oil and gas exploration and production companies, the ECC decided to revise the language of agreement to make it obligatory to provinces to utilise the bonus on development of the area where exploration was carried out. He said that the ECC approved 70 cents per MMBTU gas price for fertiliser plant being set up on Qadirpur gas field for ten years to be started from the commissioning of the project.

The project is being established by a consortium of Engro Chemicals Limited, Orascom and Fauji Foundation.

The ECC deferred discussion on strategy for agriculture sector and exemption of sales tax for public transport sector.

In reply to a question, he said that 340 new utility stores outlets would be established by the end of current calendar year, while licences would be issued to 100 franchises, of which 20 have already been issued.

Ashfaque admitted that prices of onions, tomato and potato were high due to non-movement of transport due to Eid holidays.

 

[Owais]

Private sector credit growing but slowly

KARACHI (November 01 2006): Private sector credit, which grew to Rs 29.4 billion during the first quarter of FY07, has continued growing since then though the rate of growth has been rather slow. On October 7, it had grown to Rs 30.6 billion, recording a growth of only Rs 1.2 billion over previous week.

A week later, the growth turned out to be Rs 6 billion on October 14 with overall credit expansion in the sector rising to Rs 36.6 billion during the year, compared with the overall expansion of Rs 73.4 billion in the corresponding period of last year.

Specialised credit to the private sector also increased from Rs 1.3 billion on September 30 to over Rs 4.6 billion on October 7 though it decelerated to Rs 4.1 billion on October 14. Apparently, it indicates somewhat slower economic activity this year than in the corresponding period of last year but, considering the re-circulation of credit availed in last two years which comes to about a trillion rupees, the private sector does seem to be facing some liquidity crunch. This huge amount of credit, when retired, becomes available for fresh loaning to economic agents.

Government borrowing, in the while, rose from Rs 45.8 billion on September 30 to over Rs 63 billion on October 7 and further to Rs 78.5 billion on October 14. The increase was entirely on account of budgetary borrowings of the Government as its borrowing for commodity operations declined from Rs 6.5 billion on September 30 to Rs 5.6 billion on October 14.

Government credit expansion on account of utilisation of Zakat and privatisation proceeds etc also squeezed from Rs 1.3 billion on September 30 to minus Rs 0.5 billion on October 14, indicating an increase of unutilised funds under these heads by about Rs 2 billion during the intervening two weeks.

Money supply, accordingly, rose from Rs 62.6 billion on September 30 to a marginally higher level of Rs 62.8 billion on October 7 and then sharply to Rs 71.2 billion on October 14, in line with the increase in government and private sector borrowing from the banking system.

 

[Owais]

Protocol to boost economic ties with Tajikistan signed

ISLAMABAD (November 01 2006): Pakistan and Tajikistan have signed a protocol to extend economic relations and strengthening of co-operation in the fields of energy, insurance, investment and industry, air transport, communication, banking and financial sectors, agriculture and food industry, transport and construction of roads, science and technology, education, health, tourism, culture on the basis of mutual equality.

They have also agreed to increase the current level of trade and facilitate joint ventures in the field of trade, industry and services. The second conference on the Regional Electricity Trade between the Central Asian and South Asian countries as well as Second Session of the Pak-Tajik Joint Economic Commission was held in Dushanbe and concluded the other day.

Water and Power Minister Liaquat Ali Jatoi along with the water and power delegation, NTDC, and the communication ministry participated from the Pakistan side.

After the closing session of the JMC and Trade conference, Federal Water and Power Minister and JMC Pakistan Chairman Liaquat Jatoi and Kislyakova Larisa, deputy minister of economy and trade and Tajikistan JMC chairman signed the protocol on behalf of their respective countries. According to a report received from Tajikistan, both parties agreed to extend co-operation on energy trade as the financial institutions have assured their support for the transmission line project via Phul-e-Khumiri and Kabul areas to Pakistan to export power from Tajikistan.

As an alternative, an additional transmission line through Wahkhan corridor shall also be considered. The two countries also agreed to co-operate in the field of extraction and processing of gas and oil products. The Pakistan side agreed to initiate dialogue through the ministries concerned for the purpose.

The Tajik side requested the Pakistan side to co-operate in the field of construction of irrigation system, technical assistance in provision of drinking water in rural areas and management of water resources in Tajikistan and Pakistan agreed to consider it.

Liaquat Jatoi, in his inaugural speech, highlighted the economic achievements of Pakistan under the leadership of President General Pervez Musharraf and Prime Minister Shaukat Aziz. He said the country's economy is fast growing and maintaining this growth Pakistan's annual energy needs are increasing at an unprecedented rate of 10 percent.

He elaborated the government's energy policy and expressed his full support for implementation of the construction of power transmission line project from Tajikistan to Pakistan through Afghanistan. The participants of the conference also signed a memorandum of understanding (MoU) at the conclusion of the conference.

Jatoi, during his stay in Dushanbe, called on Tajik President Emomali Rahmonov and discussed a wide range of issues especially relating to bilateral economic and trade co-operation. Both countries agreed to provide facilities to each other to enhance bilateral trade, including relaxation of visa policy.

He also mentioned that Pakistan wanted to establish air links and open a branch of the National Bank of Pakistan (NBP) in Dushanbe. The Tajik president agreed and assured his full support to the proposals.

The parties agreed to hold the third session of the Joint Tajik-Pak Commission on trade, economic and scientific-technical co-operation in Islamabad in 2007 on dates convenient to both countries.

 

[Owais]

'China interested to invest $15 billion in Pakistan'

KARACHI (November 01 2006): Adviser to the Prime Minister on Finance, Dr Salman Shah has asked business community to submit their proposals regarding Chinese investment which should be discussed with Chinese President Hu Jintao who is scheduled to visit Pakistan in November this year.

Presiding over the Pak-China economic co-operation meeting held in Islamabad, he said that China is interested to invest 15 billion dollars in different projects in Pakistan.

The adviser said that the Chinese president will arrive here on November 23, and during his visit he will sign different agreements of mutual co-operation.

He advised business community to suggested areas in which Chinese should make investment.

Giving details of the meeting senior vice president of Karachi Chamber of Commerce and Industry (KCCI) Amir Abdullah Zaki said that he emphasised on the Government to make efforts to improve infrastructure and create better condition for Chinese investment.

He said that Pakistan should encourage China to invest and co-operate in upgrading of high tech processing, weaving and chemicals industries and etc. He said that Pakistan also need Chinese co-operation to upgrade its agriculture and engineering sector.

He suggested that the Government should also discuss issue of revival of sick units and industries closed since last many years. He assured the adviser that KCCI will soon submit its concrete and well prepared practical proposals to the Government.

Representatives of Lahore Chamber of Commerce and Industry, Government representatives attended the meeting.

 

[Owais]

Russian Company and FFC plan joint ventures

ISLAMABAD (November 01 2006): A leading Russian Fertiliser Company, EZOT, and Fauji Fertiliser Company (FFC) plan to set up joint venture to produce urea and DAP fertilisers both for local consumption and export purposes, sources told Business Recorder here on Tuesday.

They said that the visiting Russian delegation, led by Mikhail Golubev, President of EZOT, and FFC management are expected to sign a memorandum of understanding in Rawalpindi this week. EZOT, a major producer and exporter of fertilisers, earns $1 billion annually.

Golubev met with Prime Minister Shaukat Aziz and Minister for Food & Agriculture Sikander Boson here on Tuesday and unfolded his company's plans to start joint ventures with FFC in Pakistan, which is 15 percent deficient in urea and 70 percent in DAP fertiliser to meet its growing requirements of agriculture sector.

In his meeting with Minister for Food & Agriculture, the leader of Russian delegation said that two more EZOT technical experts' delegations would visit Pakistan to finalise technical and financial details of the joint ventures.

He said that EZOT & FFC joint ventures would not only enable Pakistan to meet its domestic requirements but would also export fertiliser to other countries in the region. The Minister asked the Russian delegation to also set up tractor manufacturing units in Pakistan since its domestic industry is unable to meet the annual requirement of 35,000 new tractors.

Official sources said that Pakistan's exports to Russia rose to $45 million in 2004-05 from $21 million in 2003-04 and their economic ties and co-operation are also on the rise.

 

[Owais]

Dim chances of Gwadar Port inauguration during Chinese leader's visit

ISLAMABAD (November 01 2006): The chances for inauguration of Gwadar Port on the eve of Chinese President visit to Pakistan look remote owing to lack of finalisation of operators and persistent delay in the construction of infrastructure particularly building of roads.

Sources told Online on Tuesday that Chinese engineers had completed Gwadar deep sea port in April, 2006, and handed over it to the Pakistani authorities. The construction of remaining infrastructure including residential and commercial buildings, roads and offices was to be completed by Pakistani authorities. But they have failed to do this job so far. Therefore, opening of the port seems to remain in doldrums.

Sources informed that President General Pervez Musharraf has expressed dismay and resentment over inordinate delay in construction of infrastructure. He wanted to inaugurate the port on the occasion of Chinese President visit to Pakistan. But ministry of ports and shipping is not prepared for it and list of operators has not been finalised up till now. Government wanted to assign contract to Dubai Port World to run Gwadar port. The Chinese are also taking interest in it.

 

[Neo]

Import bill up by 13.38pc in first quarter

ISLAMABAD, Oct 31: The country’s import bill rose by 13.38 per cent to $7.428 billion during the first quarter (July-Sept) of 2006-07 as compared to $6.551 billion the same period last year owing to rising imports of petroleum products, automobile and mobile phones.

Official figures released by Federal Bureau of Statistics (FBS) here on Tuesday indicated that the overall import bill did not record that much growth in comparison to last year following massive decline in imports of food items, machinery and agriculture implements.

The statistics showed that the import bill of petroleum products alone rose by 35.35 per cent to $2.172 billion during the quarter as against $1.605 billion the same period last year.

In total POL imports, the share of petroleum crude rose by 2.28 per cent to $966.997 million as against $945.402 million corresponding period last year.

In the telecom sector, the import of mobile phones increased by 57.3 per cent to $198.956 million during July-Sept as against $126.466 million the same quarter last year.

However, the import of other apparatus of telecom declined by 23.09pc to $231.556 million as against $304.658 million the same period last year.

The second biggest component of the import bill in value was machinery group. However, it declined 4.31 per cent during July-Sept 2006 over last year mainly due to a 30.78 per cent negative growth in import of textile machinery followed by 31.36pc fall in agriculture machinery and implements and 21.58pc in other machinery.

However, the import of construction machinery rose by 25.41 per cent and electrical machinery and apparatus by 30.55 per cent, power generating machinery by 47.91 per cent and office machinery by 4.18 per cent.

The import of transportation group both in CBU and CKD/SKD increased by 7.84pc to $393.288 million during the quarter as against $364.680 million the same period last year.

Food items import declined by 23.30 per cent to $533.369 million during July-Sept 2006 as against $695.432 million in the corresponding period last year. The import of milk products declined by 6.83 per cent, dry fruits by 27.32pc, sugar by 25.71pc, palm oil by 25.38pc, tea by 0.04pc and wheat by 43.71 per cent.

The import of metal groups fell 17.86 per cent during the quarter under review. In this group, gold imports dipped by 24.65pc, iron and steel scrap by 45.24 per cent and iron and steel by 20.87pc.

The agriculture and other chemical group also registered 23.33 per cent decline during the quarter over last year. The import of fertiliser fell by 46.02 per cent, insecticides by 40.45 per cent, plastic materials by 10.50 per cent and medicinal products by 21.91 per cent.

 

[Neo]

UAE to build $5 bn oil refinery in Pakistan

Islamabad, November 1, 2006

International Petroleum Investment Co, owned by the government of Abu Dhabi in the United Arab Emirates, has received approval from Pakistan's government to build a 5 billion dollar oil refinery at Hub in the southwestern province of Balochistan.

The refinery, which will be Pakistan's biggest, have the capacity to process 300,000 barrels of oil a day, Ashfaque Hasan Khan, an economic adviser to the government said.

The proposed refinery will help Pakistan meet demand for oil products, which is expected to grow 5 per cent annually to reach more than 18 million tons by 2010.

The country has five refineries producing 11.2 million tons of oil products a year.

Pakistan imports about 85 per cent of the oil its uses, half of which arrives as refined products, according to the US Energy Information Administration.

International Petroleum, which will own 75 per cent of the refinery, will start building the processor next year and complete it by 2010, Khan said.

Pak Arab Refinery Co, owned by the Pakistan government, will have a 25 per cent share.

http://www.hindustantimes.com/news/181_1833359,00020008.htm

 

[Neo]

Wednesday, November 01, 2006

ECC okays building $5b oil refinery in Balochistan

* Auto policy, ST exemption on public transport deferred
* Price of 80 mmcfd gas at Qadirpur gas field fixed at $0.70 per MMBTU

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved establishment of a coastal oil refinery at Khalifa Point, Balochistan, by International Petroleum Investment Company of Abu Dhabi with an investment of $5 billion.

The ECC also approved a mechanism for transfer of oil and gas production bonus as royalty to the provinces and onward to the district governments for development of areas concerned.

The ECC, which met under the chairmanship of the Prime Minister Shaukat Aziz, considered 14-point agenda. Dr Ashfaque Hassan Khan, Adviser to Ministry of Finance after the meeting briefed the media about the decisions taken at the meeting. He informed that the ECC deferred the approval of the proposed auto policy with a direction to the Ministry of Industries and Production to consult stakeholders like Ministry of Finance, Central Board of Revenue and Board of Investment and submit revised policy within 30 days. ECC also deferred the approval of sales tax exemption on Public Transport Sector and presentation on agriculture research.

ECC approved establishment of a coastal oil refinery at Khalifa point by International Petroleum Investment Company of Abu Dhabi with an investment of $5 billion. Dr Ashfaque further informed that this oil refinery would be export purpose refinery with a capacity to refine crude oil of 200,000 to 300,000 tonnes per day. 75 percent shares of this refinery would be held by IPIC, which is owned by government of Abu Dhabi, and 25 percent shares would remain with PARCO. The work on this refinery would start within a year and this would be operational in 2011.

ECC also approved a mechanism of collection of production bonus and transfer of it to district governments through provinces as royalty. Dr Ashfaque told that it would be collected by the federal government and would be transferred to the provincial governments and than this bonus amount would be transferred to the relevant district governments for execution of development projects.

He informed that the ECC expressed satisfaction over the price control mechanism through Special Magistrates adopted by the provinces during the month of Ramadan and decided to continue the enforcement of it. The ECC was informed that due to the weeklong Eid holidays the transport was not available between farm to markets, which led to shortage of onion, potatoes and tomatoes in the market and also increase in their prices. The ECC was also informed that now the situation is changing with the resumption of transport in the country after Eid.

ECC was also informed that with the reduction in prices of DAP and other Phosphatic fertilisers by the ECC, their prices have came down by 21 percent to 30 percent in the country, however, the prices are still high in the Rawalpindi Region. The ECC directed the relevant authorities to monitor the market take stern action against those dealers who are charging higher prices of these fertilizers.

The ECC also appreciated the role of Utility Stores in maintaining the prices of essential items during the month of Ramadan. It was informed to the ECC that at present 697 stores are working in the country and some 340 new stores would be operational by the end of this calendar year 2006. Licences to 100 franchise utility stores would be issued by the end of November 2006. ECC also fixed the gas price of $0.70 per MMBTU for the available 80 mmcfd gas at Qadirpur gas field. ECC decided that all four bidders would be allowed to bid for the premium on this gas and the bidder that would offer highest bid would be allocated gas quota of 80 mmcfd for 10 year on the same price.

 

[Neo]

FDI hits $1.3 billion in first quarter

ISLAMABAD (updated on: November 01, 2006, 21:07 PST): The country's foreign direct investment (FDI) amounted to $1.3 billion during the first quarter of year, thus exceeding $700 million as compared to previous year.

The State Bank of Pakistan was quoted as saying that FDI during the first quarter of previous year was recorded at $328.7 million. FDI amount for the first quarter current fiscal year was $133.2 million including PTCL sale instalments.

Energy sector attracted most of the foreign investors, as $161.8 million was invested in the oil and gas sector, while in the power sector $42.8 million of investments flowed into the country.

Besides, $282.7 million were invested in the financial sector, while portfolio investment remained at $120.6 million.

Leading FDI countries included USA, Britain, Eastern and western Europe.

 

[Neo]

Rs 237.4 billion taxes collected in July-October

ISLAMABAD (November 02 2006): The Central Board of Revenue (CBR) has collected Rs 237.4 billion during the first four months of 2006-07, against Rs 201.2 billion in the same period of last year, reflecting an increase of Rs 36.2 billion.

According to provisional figures released on Wednesday, CBR Customs Wing has shown poor performance with a shortfall of 2.3 percent in import duty collection during July-October. Overall, tax collection (provisional) during July-October 2006-07 has indicated a cumulative growth of 18 percent.

Direct taxes collection was Rs 79.6 billion, against Rs 59.3 billion, showing an increase of 34.3 percent. Indirect taxes collection was Rs 157.72 billion, against Rs 141.94 billion, showing an increase of 11.1 percent.

Tax-wise break-up shows that sales tax collection was Rs 98.37 billion, against Rs 86.56 billion, indicating a growth of 13.6 percent. Sales tax collection at the import stage was Rs 57.08 billion, against Rs 53.28 billion, showing a growth of 7.1 percent, and sales tax collection on domestic consumption was Rs 41.29 billion, against Rs 33.27 billion, showing an extraordinary growth of 24.1 percent.

The collection of federal excise duty (FED) was Rs 21.74 billion, against Rs 16.88 billion, showing an increase of 28.8 percent. The collection of customs duty was Rs 37.60 billion, against Rs 38.49 billion, reflecting a decrease of 2.3 percent.

The Board paid Rs 25.51 billion as refund and rebate to exporters during the first four months of 2006-07, against Rs 25.30 billion in the same period of 2005-06, reflecting an increase of 0.8 percent. Out of this, sales tax refund was Rs 15 billion, against Rs 11.2 billion; direct taxes refund Rs 4.6 billion, against Rs 7 billion and payment of customs duty rebate was Rs 5.8 billion, against Rs 7 billion, showing a decrease of 15.9 percent.

The collection (provisional) of federal taxes for October, 2006 is Rs 49.6 billion, which is expected to increase further in the coming days when figures would be finalised, sources said.

 

[Neo]

Qatar to invest $2 billion in cattle meat projects

ISLAMABAD (November 02 2006): Qatar is willing to invest about $2 billion in cattle fattening and establishing slaughterhouses in Pakistan, it is learnt. Sources in the Ministry of Food, Agriculture and Livestock (Minfal) told Business Recorder on Wednesday that Qatar would make this huge investment to explore untapped potential of milk and meat production.

A delegation, led by Qatari officials has requested Minfal to identify locations for setting up slaughterhouses. The Qatari Prime Minister would formally sign an agreement with government and private sector shortly, they added.

"We have informed the Board of Investment (BOI) and Prime Minister Secretariat about Qatar's intention for investing in meat production", an official told this correspondent. Qatar would invest in meat fattening, poultry breeding and meat and poultry processing units.

After meeting the domestic requirements, meat would also be exported to Middle East and European markets, he added. Meanwhile, the Livestock and Dairy Development Board (LDDB) signed a Memorandum of Understanding (MoU) with 'Grazing Grounds', Karachi, to provide technical assistance to the private sector to establish a large sheep and goat farm for meat production on main Karachi-Hyderabad Super Highway.

According to official statement, the private sector firm would also be establishing a state-of-the-art slaughterhouse, along with cold storage facilities, to provide hygienic quality meat to local consumers as well as for export.

The livestock farm would be established over 1000 acres land, with both breeding and fattening facilities for the animals. Total investment in the project would be Rs 1.4 billion, and the project is expected to fatten 175,000 animals, producing about 5250 tons additional meat annually.

The LDDB was established as a private sector company under section 42 of Companies Act and is registered with SECP. It is mandated to promote and facilitate livestock, meat, dairy and poultry development in the country. The company will be executing two livestock development projects worth Rs 3.2 billion, to be funded by the federal government for improvement of milk and meat production in the country.

The signing ceremony was attended by, Federal Minister for Food, Agriculture and Livestock Sikandar Hayat Khan Bosan and Minfal Secretary Ismail Qureshi.