Pakistan Economy - News & Updates - Archive

[Owais]

'6.5 percent inflation target to be achieved'

ISLAMABAD (November 21 2006): Adviser to prime minister on finance Dr Salman Shah said on Monday current fiscal year target to keep the inflation rate down to the level of 6.5 percent would be achieved, and the food and beverage items' prices with eased supplies would drop in the next quarters.

Talking to a private TV channel, he said the core inflation in October remained at the last two years' lowest level due to stern monetary policy, while the headline inflation, ie, consumer price index (CPI), was stabilised because of keeping oil and gas prices unchanged by the government.

Gas price only once increased in July, he added. When quizzed about untamed food items' prices, Dr Salman Shah said rains and floods had hit fruits and vegetables supplies during the first quarter of the current fiscal year, which prompted volatility in prices.

 

[Neo]

CDWP to consider Rs 150 billion projects on November 28

ISLAMABAD (November 21 2006): The Central Development Working Party (CDWP), which is scheduled to meet on November 28 under the chairmanship of Planning Commission Deputy Chairman Dr Akram Sheikh, will consider projects worth Rs 150 billion.

Official sources told Business Recorder that very important energy sector projects, including land acquisition for Kalabagh dam, Akhroi dam, Diamer-Basha dam, along with engineering design and preparation of tender documents for Diamer-Basha dam, installation of additional gas turbines at Guddu thermal power station (GTPS), Chashma hydropower project (184 MW) and detailed engineering and tender documents for Basho hydropower project would be considered.

The Planning and Development Division has proposed allocation of Rs 40 billion for Diamer-Basha dam; Rs 37 billion, including Rs 17 billion foreign exchange component, for acquisition of land for Kalabagh dam; Rs 188 million for gas turbines for GTPS; Rs 21 billion for Chashma hydropower project; Rs 90 million for Basho hydropower project; and Rs 26.7 billion for Akhori dam.

In the water sector, the meeting is expected to approve Rs 85 million for the construction of a complex for the offices of the Chief Engineering Advisor/Chairman Federal Flood Commission. Minister for Water and Power Liaquat Ali Jatoi will inaugurate the complex building on Tuesday.

Other projects, proposed by different ministries are: construction of hostel building for 200 persons at NTB complex, H-9, Islamabad (Rs 129 million); textile institute for construction trade, Mandra (Rs 78 million); establishment of vocational training institute, Sindh (Rs 1.924 billion); establishment of Pak-China friendship centre at Islamabad (Rs 650 million); and live telecast National Assembly and Senate proceedings (Rs 189 million).

Construction of 3rd and 4th floor at Collractorate of Sales Tax, Sales Tax House Karachi (Rs 63 million); construction of 64 apartments for Customs officers at FL-13, Clifton Karachi (Rs 339 million); construction of 12 number apartments in Ministers' Enclave, Islamabad (Rs 143 million); construction of eastern and expansion of southern sewage treatment plant, construction of sewage pumping station at Tulsi Das Apwa School, Hyderabad (Rs 444 million); preparatory analytical work for Punjab large cities project (Rs 60 million); and water supply and sanitation sector project-phase II (Rs 6 billion) would also come under consideration.

The meeting would discuss construction of various facilities at Expo Centre, Karachi phase-II (Rs 2.536 billion); National Program for Family Planning and Primary Health Care (Rs 39 billion); National Maternal New-born and Child Health Program (Rs 20 billion): and medical rehabilitation of disabled in earthquake hit districts (Rs 792 million).

Land acquisition for Rawalpindi by-pass (Rs 1.377 billion); construction of steel bridges in FATA (Rs 390 million): and enhancement of training capabilities of the construction machinery training institute, Islamabad (Rs 348 million), are also on the agenda.

The meeting would also consider 'Tawana Pakistan', school nutrition package for girls (Rs 6.525 billion); National Talent Scholarship Scheme (NTSS), phase-1 (2007-08) (Rs 310 million), establishment of cadet collage at Kohala (Rs 218.7 million), research for agriculture development program Rs 3.631 billion) and construction of roads under phase-III of NAS funded border security program in FATA (Rs 440 million).

 

[Neo]

Development partnership agreement signed: UK doubles aid

ISLAMABAD (November 20 2006): Pakistan and Britain on Sunday signed a 'Long-term Development Partnership Arrangement' to reduce poverty and achieving Millennium Development Goals (MDGs) in Pakistan through active partnership between the two countries.

The agreement was signed by Prime Minister Shaukat Aziz and British Prime Minister Tony Blair here at Prime Minister House, following the talks between the two prime ministers. Under the agreement, the British government will provide 480 million pounds in the next three years through the Department for International Development (DFID) of the UK.

The agreement will provide a long-term development partnership between Pakistan and Great Britain through a transparent framework for mutual accountability for implementation of the development partnership between the two countries.

Under the agreement, the development partnership between the two countries is based on a shared commitment to achieve the objectives to reducing poverty with the objective of achieving the Millennium Development Goals (MDGs) in Pakistan.

The agreement would ensure respecting relevant international human rights obligations, strengthening financial management and accountability, and reducing the risk of funds being misused.

The Pakistan government, under the agreement, would take effective steps to reduce poverty in line with the Paris Declaration (2005) and achieve high and broad based economic growth including the rural economy, while maintaining macroeconomic stability.

The agreement will also help Pakistan to take initiative so that by 2015 all children with special emphasis on girls and children in difficult circumstances have access to free primary education of good quality.

It will also help to improve levels of adult literacy by 2015, especially for women, and equitable access to basic and continuing education for all adults.

The agreement will also help to reduce gender disparities in education, and achieving gender equality by 2015, with a focus on girls' full and equal access in basic education of good quality.

It will also improve health services delivery, particularly in maternal and neonatal health, besides improving provision of clean water and sanitation services.

Specific arrangements for allocating and disbursing the development assistance will be decided in separate discussions. Under the agreement, the UK will also provide financial and technical co-operation for capacity development.

 

[Neo]

Leather exports drop by 35 percent in first quarter

KARACHI (November 22 2006): The exports of leather and its products from the country have witnessed a drastic decline of around $107 million during current fiscal year as the local industry has become uncompetitive from several aspects on the international front, trade sources told Business Recorder on Tuesday.

Sources said that the exports of leather and its made-ups declined by around $107 million or 35 percent to $194.6 million during (July-September 2006), compared to $301 million during the same period last year. They said the country is also failed to match the export figures of financial year 2004-05, where it stood at $221.8 million.

According to statistical details, the country exported leather around $61.7 million during the first three months of the current fiscal (July-Sept06) which is 17.5 percent less from fiscal year 2005-06, as the country had exported around $74.8 million leather during the same period last year.

Similarly, leather garments export from the country witnessed a straight decline of around 44 percent as it stands at $77.2 million during July-Sept06, while the country had exported $140.2 million leather garments during the same period last year, the sources said.

Likewise, leather footwear exports from the country also registered a downfall of 33.6 percent to $23.6 million during the under review period against $35.6 million during the same period last year, they added. Sources said the leather gloves export from the country slashed by around 35 percent to $26.2 million during July-Sept06 against the corresponding period last year where it stood at $40.5 million.

Industry sources said that leather products (eg handbags, wallets, belts and other accessories) exports were also decreased by 40 percent to $5.7 million during the first three moths of the current fiscal year against $9.6 million in the same period last year.

"The high cost of production is the main impediment in country's exports growth," said a leading leather garments exporter, adding the government should seriously pay heed to the exporters' grievances as it is focusing on the textile sector.

"The government has facilitated textile sector by giving a separate ministry to it and if we (leather industry) are given a separate government representative, the local industry would definitely flourish besides growth in exports," the exporter suggested.

He made the demand of Pakistan Leather Garments Manufacturers and Exporters Association (Plgmea), saying: "We (Plgmea) do not seek any research and development (R&D) facility from the government, what we demand is freight subsidy on export cargoes."

The pundits of leather industry have also pointed out that China is eating the Pakistan's share in the international export market besides other countries and it has emerged as the biggest leather and its made-ups exporter on the international front.

"Of an aggregate world's leather exports of $4.5 billion - $5 billion, China is currently enjoying around $2.1 billion chunk, followed by Turkey, India and Pakistan," said a Karachi-based exporter. He said Pakistan's leather and its made-ups are exported mainly to Europe, United States, Russia via Dubai and some Far Eastern countries.

Former Plgmea chairman Fawad Ijaz Khan has demanded of the government to provide incentives to leather industry and set up 'Leather Garment City' to the manufacturers and exporters so that they could carry out design-making, stitching, and packaging under one-roof. He said the export refinance rate, utilities' cost, transportation and labour wages are higher in the country and the government should address these issues immediately.

"Designs for the next year are being finalised these days and if the government intends to provide relief to the industry, it should provide it on urgent basis," Fawad Ijaz Khan stressed.

 

[Neo]

'6.5 percent inflation target to be achieved'

ISLAMABAD (November 21 2006): Adviser to prime minister on finance Dr Salman Shah said on Monday current fiscal year target to keep the inflation rate down to the level of 6.5 percent would be achieved, and the food and beverage items' prices with eased supplies would drop in the next quarters.

Talking to a private TV channel, he said the core inflation in October remained at the last two years' lowest level due to stern monetary policy, while the headline inflation, ie, consumer price index (CPI), was stabilised because of keeping oil and gas prices unchanged by the government.

Gas price only once increased in July, he added. When quizzed about untamed food items' prices, Dr Salman Shah said rains and floods had hit fruits and vegetables supplies during the first quarter of the current fiscal year, which prompted volatility in prices.

 

[Neo]

Qatar, Singapore may allow labour quota for Pakistan

More than 150,000 people to get opportunity of overseas employment

KARACHI: Pakistan has succeeded in winning support for its manpower exports to Qatar and Singapore in a major move to dispatch more than 150,000 Pakistanis for overseas employment, officials said.

They said the Federal Ministry of Labour, Manpower and Overseas Pakistanis held a series of meetings with the two respective governments and finally convinced them to allow quota for Pakistani labours in their countries.

“The agreement with Qatar in this regard is scheduled for January 2007 during the state visit of Emir of Qatar Sheikh Hamid bin Khalifa Al Thani to Pakistan,” said one of the officials who recently returned from Qatar and Singapore.

“Qatar accepts Pakistani labours and issues visas on internal demand but a formal accord would allow a specific number of Pakistani labours and consistent visa policy.”

Similarly, he said, talks with Singaporean authorities also made headway but the South East Asian state has not announced any exact timeframe to sign the accord.

“But we are very much hopeful of the date within next one month. Developments on two different fronts would give almost 150,000 Pakistanis opportunity of overseas employment within a year.”

The recent developments have lifted hopes of local operators, who were already rejoicing removal of ban on Pakistani labours by the Kuwaiti government earlier this month.

The officials and local operators believe that accord with Singapore and Qatar coupled with removal of ban on Pakistani labours by the Kuwaiti government may increase manpower export by 150,000 within a year.

“The OEC (Overseas Employment Corporation) would soon call a meeting of local operators to brief them on the new developments to design a strategy,” said the official.

He said the fresh move would not only generate overseas employment opportunities for Pakistanis but also open new avenues for local operators to capitalise on the developments.

Hundreds of thousands of Pakistanis have been flying abroad every year since early 1970s to get better employment opportunities. The overseas Pakistanis have been instrumental in managing good foreign reserves during the last three years and bridging the trade deficit through remittances.

The country faced more than $12 billion trade deficit in the last two financial years, which was offset to some extent by more than $8 billion remittances from overseas Pakistanis during the same period.

Kuwait and Qatar, which have been main importers of Pakistani manpower, however remained unpredictable during the last two years due to off and on ban on Pakistani labours and inconsistent visa policy.

However, the latest move appears to be lasting, overseas employment promoters said. “The two countries have a potential of importing more than 150,000 Pakistani labours in a single year,” said Hanif Rinch, Chairman Pakistan Overseas Employment Promoters Association (POEPA).

He said strategy of Arab countries to localise the labour input was the main reason behind the ban on Pakistani manpower in Kuwait and the trend had also caused serious decline in overall manpower exports from the country.

The cut in hiring of Pakistanis in Saudi Arabia and ban by Qatar, Kuwait and Bahrain on Pakistani manpower imports has emerged as threat to hit the permanent manpower export feature from the country.

During 2005 total 91,773 people flew abroad against 173,824 in 2005. This shows a negatives difference of 47.2 per cent in a single year and the gap has been on the rise in 2006.

The overseas employment promoters say declining trend in manpower export may affect the country’s foreign exchange reserves negatively, as overseas Pakistanis have been one of the major sources behind the rise in forex reserves during last few years.

 

[Neo]

IDEAS brings windfall for hotels

KARACHI: The room occupancy rate of leading hotels has once again risen to 100 per cent owing to holding of the four-day International Defence Exhibition and Seminar (IDEAS) 2006 in Karachi.

About 997 foreign delegates are participating in the international exhibition whereas a great number of government officials and army high-ups are staying in the local hotels. Moreover, IDEAS organiser claims that about 2,600 defence professionals are expected to view the exhibition.

Hotel Marriot the conference venue of IDEAS 2006 has 210 rooms of which 80 per cent have been reserved by foreign delegates and exhibitors.

Pearl Continental Hotel has 209 rooms of which 60 to 70 per cent have been reserved by the participants of the exhibition.

Avari Tower has 209 rooms mostly occupied by foreign delegates who have come from 23 different countries of the world.

Besides, the room occupancy of other four and three stars hotel including Hotel Mehran, Regent Plaza and Carlton Hotel are also at the higher side.

Other hotels namely Days Inn, Hotel Farhan and Embassy Inn are also hosting to the exhibition participants.

The room rate of hotels has increased automatically as the result of surging demand.

Director Operation Rakaposhi Tours Syed Khaqan-ul-Asar told The News that hotels have increased their room rates by 50 to 70 amid surge in demand.

He said five star hotels normally charge Rs12,000 for standard room but they are charging Rs15,000 to Rs18,000 from the participants of exhibition.

Khaqan added that other four or three star hotels have raised room rates by Rs2,000 to Rs3,000 for the foreigners and VIPs attending IDEAS 2006, adding that some delegates could not find rooms in any hotel of the city on the occasion.

Rakaposhi Tours is the official coordinator for accommodation and transportation

The business of Rent-a-Car has also geared up in the city. Besides cars, coasters are also provided to the exhibitors for transporting and touring the city. Khaqan-ul-Asar told that his company has arranged about 50 cars and 10 coasters from different transport companies for facilitating the foreigners.

Zeb Rent A Car services is charging Rs5,000 per day for latest model cars and Rs8,000 per day for air conditioned coasters.

 

[Neo]

Gwadar port to start operation in March 2007

KARACHI: The Gwadar port would be operational in March next year after the completion of its channel dredging, said Minister for Ports and Shipping Babar Khan Ghauri here on Tuesday.

He was talking to reporters after inaugurating development work at Port Qasim and a briefing by the high officials of PQA.

He said the shipping protocol would be signed in December after which the proposed ferry service would start.

He said nine more terminals would be developed at the Port Qasim by 2010. About the twin islands issue, he said it was a joint venture between Emaar and PQA and that there should be no fears about it.

Earlier in the briefing, he was told that the development projects currently underway at the PQA Industrial Estate include construction of flyover at the junction of PQA main access road and National Highway.

A 113-kilometre road is being built to link different industrial zones. PQA access road is being dualized. A bridge is being constructed over Railway line. Water supply system is being laid along with installation of pump houses and construction of underground tanks to ensure efficient water supply.

A 114-kilometre-long storm water drainage is being built besides the construction of 153-kilometre sewerage system.

The projects also include a bridge over Pakistan Steel outfall channel and conveyor belt, a bridge over Pakistan Steel intake channel to serve as an alternate route for heavy traffic and construction of two additional customs gates and allied infrastructure. Besides, poles are being erected to ensure proper lighting at the roads.

With the completion of these projects, PQA will transform itself into a modern industrial port and a business hub, further accelerating industrial and commercial activities, which will help curb joblessness and bring the poverty level down.

With completion of infrastructure projects, a chain of commercial activities will be established, which will help local entrepreneurs with limited capital do business without any risk of loss.

The minister was informed that the PQA has recorded 11 per cent average growth in cargo handling over the last five years. The port accounts for more than 40 per cent of sea-borne trade of the country.

The PQA reduced tariffs by around 16 per cent in 2005 in order to cut cost of doing business. The authority is undertaking many projects at a cost of Rs11 billion, one of which is deepening of the channel to accommodate all-weather 14-metre draught vessels.

The officials told the minister that the authority aimed to focus on cost recovery rather than profit maximisation and reduction of cost of doing business by improving trade logistics to international standards.

 

[Neo]

Businessmen see positive impact on economy: IDEAS 2006

KARACHI, Nov 21: The business community sees the defence exhibition in a positive light. They feel that the mega event “IDEAS 2006 Pakistan” will open up new avenues for boosting civilian economy and go a long way in improving the country’s image.

They, however, gave mixed reaction to holding of the event at the venue in the middle of the residential area. They think that the main problem is traffic mess caused by closure of main arteries, digging up of roads and ongoing construction work all over the city. Besides, security measures taken to ensure a hassle-free movement of top military officials of Pakistan and foreign countries, delegates and guests to the event venue also created problems for the general public.

However, market observers believe that the exhibition of defence related items give an impression worldwide that Pakistan is interested in displaying its military muscles and building its image as a well-positioned military power. In sharp contrast, common man face stark realities like lack of basic facilities, water, power, education followed by rising poverty, democratic norm, political turmoil, etc. Dawn tried to solicit views from the businessmen on the holding of IDEAS 2006 and its impact on civilian economy.

Site Association of Industry Chairman Ameen Bandukda believes that this kind of event improves country’s image and gives an impression to foreign investors that Pakistan also enjoys an edge in hi-tech engineering and its related sectors. “This kind of exhibition lures foreign people to enter into business deal with local entrepreneurs, besides giving a good impression about improved security in Karachi.

He thinks that the location (Expo Centre) is ideal but security measures for the VVIPs create problems for the general public. The government should introduce such security measures in which roads and passages remain open for the people.

“I think helicopters could be used in bringing the VVIPs to the venue,” Mr Ameen said, adding that the government could also think of shifting the venue outside the city in order to avoid disturbance in the city.

He expressed surprise over the closure of educational institutions in the city. “Nowhere educational institutions are closed for holding an exhibition.”

Korangi Association of Trade and Industry Chairman Masood Naqi says that country’s civilian economy benefits most when such huge number of foreigners land in the city. “Activities such as room occupancy of hotels, airline business, transportation, etc., thrive on such occasion and the government gets taxes and duties also. Even foreigners bring foreign exchange and spend them while shopping and purchasing of some kind of material in the exhibition.”

“Holding of such event of world repute is a good step. At least the world knows that Pakistan also excels in other field,” he said, dispelling the impression that such events cause traffic problems only in Karachi. “I have witnessed many grand events all over the world where traffic problems do occur. Even sometime one cannot find a taxi,” he said, adding that improvement in traffic management could help prevent big traffic problems in the city on such occasion.

Mr Naqi was of the view that the Expo Centre was not the right place for such events. These kinds of events should be held 40-50km away from the city in view of lack of infrastructure and proper handling of traffic load.

Due to inadequate infrastructure for free flow of traffic, the government had to close educational institutions on Tuesday, he added.

F.B. Area Association of Trade and Industry Chairman Masroor Ahmed Alvi said that economies of many countries relied on holding big events which generated economic activities in transportation, airline, hotel business, etc. These kinds of events in Karachi also boost civilian economy, but ultimately turn out to be a problem for the common man because of improper traffic management system.

“Common people are more concerned about their own economy. Exhibition or no exhibition, they have to go to their work and traffic disruptions make life more difficult for them,” he said.

He said the event should not be shifted outside Karachi. “The Expo Centre is the right place, but traffic management needs to be improved.”

 

[Neo]

Pakistan, US agree on mechanism for dispute settlement: Paving way for signing BIT

ISLAMABAD, Nov 21: Pakistan and the United States both have softened their stand over their proposed Bilateral Investment Treaty (BIT) for early signing of the much delayed pact.

Official sources told Dawn on Tuesday that the United States has eventually accepted that the "judicial and legislative actions" of Pakistan should not be allowed to be challenged in any international court of law.

The US side, they said, have conceded to differentiate between the "bad faith and the error of judgment" and that the decisions announced by superior courts of Pakistan will not be challenged without any legitimate justification.

In return, Pakistan has accepted that the treaty will be applied with retrospective effect, meaning that any thing pertaining to the existing American investment could also be challenged.Pakistan, in this regard, has assured the US government that it will be obligatory for Pakistan to give compensation to the US investors in case of their dispute, which has not been settled. One of the cases in point was the dispute that erupted few years ago over the opening of a US restaurant chain--McDonald in Lahore.

Sources said that Pakistan has also subdued to American pressure to accept additional forums other than International Centre for Settlement of Disputes (ICSD) to deal with arbitration clauses. The US side maintained that since a number of rules of ICSD were needed to be upgraded, other centres for dispute resolution should also be considered.

The US side was insisting to have more than one international forum to settle investors’ disputes, while Pakistan wanted only the ICSD. Also, Pakistan wanted the US investors to exhaust the local remedy in Pakistani courts before opting for any international forum in case of any dispute.

Pakistan had also argued that there will be a wastage of time and money to approach other dispute resolution centres and that let the ICSD alone be approached in case of any dispute. "But we have now given up this stance and all these issues could pave the way for early signing of the treaty", a concerned official said.

However, he said he was not in a position to give any tentative date for the signing of the much delayed BIT.

He said a decision has also been taken that all the rounds of talk--that have so far held between the two sides--will be made part of the treaty while interpreting any dispute in any international court of law.

"This will be termed as the negotiations history at the time of any dispute before any court of law", the official said claiming that a "major hurdle" in the way of signing the treaty has been removed.

But the US Assistant Secretary of State for South Asian and Central Asia Mr Boucher when visited Pakistan earlier this month had said that there were some "serious technical problems" which were blocking the signing of the treaty.

Another source said that Pakistan had succeeded in convincing the US officials to change their draft law on BIT for signing of the proposed treaty. "In many previous rounds of talks, the US side used to say that since this draft on BIT has been approved by the American Congress, there could be no change in it. But eventually they (Americans) had accepted our point of point on it," he said.

"We had told the Americans that if they were coming with a prepared mind to continue insisting on the acceptance of draft law approved by their Congress, then we are afraid it would not be possible to sign this treaty," he said.

Both sides, he said, have conceded to remove their differences over BIT and that one should now hope that it will be signed in the near future. Nevertheless, he too did not like to give any timeframe for the signing of the treaty.

Earlier, the United States and Pakistan exchanged their "Non Papers" as was proposed by US Ambassador to Pakistan Ryan C. Crocker before holding a final round of talks to conclude the treaty.Mr Crocker believed that there was a need for holding "informal talks" in which non papers should be exchanged in order to work out differences over the draft of the treaty, earlier approved by the Bush administration.

Sources said Prime Minister Shaukat Aziz, while presiding over a high level meeting recently had expressed his concern over the delay in signing the treaty. He said that both sides should hold their final round of talks to decide the issue. Foreign Secretary Riaz Mohammad Khan had also proposed holding of the final round of talks during the meeting.

The US side had also linked the signing of BIT with the inking of a Free Trade Agreement (FTA), which was being sought by Pakistan more vehemently in order to have new concessions for the country's products into the United States.

It is believed that the proposed BIT would largely benefit the American investors wishing to invest in Pakistan, while FTA would be more helpful to Pakistan.

 

[Neo]

Pakistan gives transit facility to India

ISLAMABAD:22 Nov, 2006: India has been allowed by Pakistan to use the Karachi port for trading with Afghanistan.

According to foreign office spokesperson Tasneem Aslam, Afghanistan will also be able to export items to India through Pakistani territory.

Visiting India last week for the Second Regional Economic Cooperation Conference on Afghanistan, Kabul's Foreign Minister Rangin Dafdar Spanta had said that Pakistan would soon provide India with transit trade facilities to Afghanistan.

Analysts say because of the unstable India-Pakistan relations, Islamabad has allowed India transit facility to Afghanistan only on a case-to-case basis while ensuring that Indian exports to Afghanistan do not hit its commercial interests.

Indian wheat was transported through Pakistan to Afghanistan during the Taliban regime.

India has for long demanded that Pakistan allow the use of the Wagah border in Punjab for trade while Pakistan wants India to trade through the Karachi port.

http://timesofindia.indiatimes.com/N...how/528076.cms

 

[Neo]

New industrial zone being set up at Uthal

QUETTA: Balochistan Minister for Industries and Commerce Mir Abdul Ghafoor Lehri has said that a new industrial zone is being established at Uthal some 100 kilometres away from Karachi on RCD Highway.

In a statement issued here on Tuesday, he said that the Industrial Zone is being constructed at Zero Point at Uthal, for which infrastructure is being improved.

He said that work on Gwadar Industrial Zone has been completed and Marble City in Gaddani (GMC) is successfully nearing completion.

The minister maintained that the province would soon turn into a commercial and economic hub, which would raise the living standard of the people.

The minister said that the government would extend all possible cooperation to the investors in GMC. The federal government has fulfilled all its promises regarding development of Balochistan. Uplift schemes worth billions of rupees would bring about prosperity and their fruits would soon reach people after their completion, he said.

 

[Neo]

ADB Lending Pakistan $600 Million To Lure Private Investment

KARACHI -(Dow Jones)- The Asian Development Bank said Wednesday it will lend $ 600 million to Pakistan to help increase private sector participation in infrastructure development.

The bank said the loan is intended to attract private sector investment in power, transport and water subsectors by establishing a comprehensive framework that will address key policy, legal, regulatory, and institutional constraints to private participation in these areas.

"The ADB program will support the (Pakistan) government in creating an environment that encourages and supports private participation in infrastructure, rather than building the needed infrastructure exclusively with public funds," a bank statement quoted Jurgen Conrad, a senior ADB financial economist, as saying.

"Given the scarcity of financial resources, this is the only feasible approach for addressing the mismatch between limited supply and increasing demand for infrastructure," he added.

The bank said its Private Participation in Infrastructure Program for Pakistan is comprised of two parts, the first of which involves a $400 million loan from ADB's ordinary capital resources. That loan carries a 15-year term, including a grace period of three years, it added.

The remaining $200 million will be given to continue the reforms after successful implementation of the first phase, the bank said.

The bank said several Pakistani government agencies have started to build strong pipelines of projects to be tendered to the private sector, and the program will provide a mechanism for arbitration to protect investors, and standardize bidding procedures and documents to increase transparency.

In recent years, Pakistan has substantially raised public spending on infrastructure development to cater to the needs of a growing economy.

In the current fiscal year that began July, the Pakistani government has allocated PKR415 billion for infrastructure development, up sharply from PKR272 billion in the previous year.

The economy is projected to grow 7% in the current fiscal year, surpassing last year's 6.6% growth.

http://www.nasdaq.com/aspxcontent/Ne...INE000540.htm&

 

[Neo]

China, Pak set to sign many agreements during Hu`s visit

Beijing, Nov 22: China today signaled its plan to sign "unprecedented agreements" with Pakistan during President Hu Jintao's upcoming visit, but kept mum on the possibility of a deal to supply up to six nuclear reactors to Islamabad.

"During President Hu's four-day state visit to Pakistan, China is expected to sign unprecedented agreements with the South Asian country," the state-run Xinhua news agency reported.

However, the report did not say whether China will sign an Indo-US-style civilian nuclear agreement with Pakistan for the supply of six nuclear reactors.

China and Pakistan will ink a five-year development programme for bilateral economic and trade cooperation during Hu's visit which will be the first-ever agreement for China to sign with another country, the report said.

Hu and his Pakistani counterpart, Pervez Musharraf, will attend the inauguration ceremony of the Haier-Ruba economic zone in the eastern Pakistani city of Lahore, the first of the eight economic zones to be established outside China and mainly managed by Chinese companies.

"The above-mentioned achievements are major breakthroughs by both China and Pakistan in seeking new modes and approaches in their economic and trade cooperation," the report quoted unnamed sources as saying on the eve of Hu's visit to Islamabad, the first by a Chinese President in a decade.

Chinese government has already announced that it will sign other agreements with Pakistan in areas such as trade, culture and education during Hu's visit.

http://www.zeenews.com/articles.asp?aid=337226&sid=NAT&ssid=

 

[Neo]

Oracle Pakistan announces expansion programme
Monday November 20, 2006

LAHORE: Oracle Pakistan on Wednesday has announced its expansion programme with the aim of strengthening its presence in fast growing cities of the Asia Pacific region, including Lahore.

While addressing a press conference, Regional Director for Oracle South Asia Growth Economies (West) Samina Rizwan said that Pakistan is experiencing unprecedented growth and emerging companies in Pakistan's high-growth cities provide the foundation upon which Pakistan's economic success will ride.

"We want these companies to have lots of choice in world-class software to meet their growing information needs. Easy access to affordable technology solutions, world-class support and services to manage their business and IT infrastructure are critical to their success," she added.

According to her, they are already working with such companies across the country and they have now further strengthened on the ground support from Oracle and their partners.

Oracle's Life Time Support Policy is an example of how customers not only have the best products to run their business, they also enjoy unrivalled product support and rights to further release to evolve their systems and stay competitive in this dynamic marketplace. Oracle has expanded its presence into more than 45 high-growth cities across the Asia Pacific region. The multination companies, including Oracle Corporation, have noticed fast growing economy of Pakistan and decided to launch their operation.

She was of the view that many areas, including textile, sugar, rice, leather, fisheries, gems, agriculture, engineering, retail and services, need world-class technology because Small and Medium Enterprises (SME) constitutes 90 percent of the enterprises in Pakistan and employ 80 percent of the non-agro labour force. Its share in annual GDP of Pakistan is approximately 40 percent, she added.

Responding to newsmen, Samina said that the education in IT needs great improvement, particularly the quality of education in project management, communication skills.