Pakistan Economy - News & Updates - Archive

[Owais]

CDB investment to build Pakistan's economic infrastructure, Salman told


ISLAMABAD (updated on: November 23, 2006, 21:55 PST): A high-level delegation led by Lie Kegu, Vice Governor, China Development Bank (CDB) called on Dr. Salman Shah, Adviser to Prime Minister on Finance, Revenue, Economic Affairs and Statistics here on Thursday.

Welcoming the delegation, the adviser said that Pak-China economic co-operation will greatly contribute to economic development in both the countries. He particularly mentioned the development opportunities of infrastructure both urban and rural in Pakistan. He also pointed out that the economic co-operation between the two countries would be based on the partnership between the corporate and private sectors of both countries with the government playing a leading supporting role.

He said that Pakistan would welcome Chinese companies to invest in different sectors of Pakistan inline with the five year economic and trade agreement. He said that Pakistan has a great potential for growth and development and now it should be our objective to create an environment to fully achieve the potential.

The Chinese vice governor appreciated Pakistan's rapid economic development in the recent years. He said that the China Development Bank would invest in Pakistan especially in building up the economic infrastructure and industrial development adding that China would also provide necessary financial support in the sectors of industry, services, agriculture, healthcare and education. He said that the business relationship between the two countries should be further developed and strengthened.

The two sides agreed to quickly set up the Joint Investment Company soon after the signing of MoUs on Friday between the two countries. They emphasised on evolving an efficient working mechanism so that the project should start as early as possible. The two sides agreed that Pakistan and China who have already developed a joint working group would also establish a preparation-working group between the Ministry of Finance and China Development Bank for long term financing of different projects in the country. This joint working group would workout different details of the projects to be implemented with the help of China Development Bank.

The adviser said that the two countries will sign five-year economic co-operation plan and the joint investment company objective would be to implement part of the economic co-operation plan. He said that the joint investment company would work as a window of the China Development Bank for evaluation of joint ventures between the two countries. He informed the delegation that according to the plan development of the special economic zones and investment in the sectors of telecommunications, infrastructure, industry, agriculture will be expedited.

The adviser assured the Chinese side that a mechanism of financial co-operation between the two countries would be soon established to achieve the targets of long-term co-operation with China.

The vice governor of China Development Bank said that economic co-operation between China and Pakistan will go beyond five years.

 

[Owais]

'Karachi becoming centre of attraction for businessmen'


KARACHI (November 24 2006): Nazim Karachi, Mustafa Kamal has said that Karachi is fast becoming a centre of attraction for businessmen and industrialists world over.

This is becoming possible as a result of the steps taken by the city government to make Karachi world's modern and developed city under a vision with focus on fast development, improving law and order and infrastructure of international standard.

He said that work has started on direct 900 million dollar investment while Asian Development Bank (ADB) has enhanced the 400 million dollar assistance for Mega City Development project to 800 million dollars while project study started with 13 million dollars.

He stated this in a meeting with Swiss Ambassador Markus Peter here on Thursday at his KWSB office. The Swiss Consul General Martin Bienz and Deputy Head of Mission Konstantin Obolensky were also present on the occasion.

In the meeting exchange of views took place on investment interest of Swiss businessmen and industrialists in Karachi and said the Swiss companies are interested in the solid waste management, transportation, infrastructure development and pharmaceutical business. In this regard a high level Swiss trade delegation will have a visit Karachi on February 7, 2006 to have a review of investment in various sectors.

Swiss Ambassador described Nazim Karachi a motivated leadership and said because of his dynamism, he saw a positive change in the city in a very short period. On the occasion he particularly referred to Bagh Ibn-e-Qasim and said that its construction in such a short time was highly impressive and surprising. It is no doubt, appreciative and with this development pace, many development schemes in Karachi will see completion in a short time.

 

[Owais]

57 OIC member states to gather at Muslims BIG

KARACHI (November 24 2006): Entrepreneurs & businessmen from 57 OIC member Muslim countries are to gather at Muslims BIG - Business & Investment Gala - to be held from February 10-12, 2007.

ICCI headquartered at Karachi extends support for country pavilion and also forwards the information to the 57 OIC member countries to participate in Muslims BIG to showcase and promote their products and services in order to achieve the social and economic development for the Islamic countries.

The event aims to become a unique platform for participants from US, Europe, Central Asian Republics, China, India, Far East and other parts of the world to explore joint venture, investment and trade opportunities available in the 57 OIC member Muslim countries & other participating nations as well.

Alongside business activities, the participating nations will also be given opportunity to highlight their cultures while the people of Pakistan will get a chance to show the delegates their warm hospitality and variety in lifestyle this metropolis offers.

The Islamic Chamber is an affiliated organ of the Organisation of Islamic Conference (OIC) and represents the private sector of 57 Member Islamic Countries.

It aims at strengthening closer collaboration in the field of trade, commerce, information technology, insurance/reinsurance, shipping, banking, promotion of investment opportunities and joint ventures in the member countries.

Its membership is comprised of the national chambers/unions/federations of chambers of commerce and industry of the member countries. Thus, it is expected that with the participation from 57 OIC member countries in Muslims BIG would establish a forum for Muslim businessmen to effectively carry out development process, to facilitate exchange and dissemination of information and technical experiences in trade, industry and other different economic activities for the betterment of Islamic Ummah.

 

[Owais]

Singapore and Qatar likely to import Pakistani manpower

ISLAMABAD (November 24 2006): Pakistan has succeeded in winning support for export of its manpower to Qatar and Singapore in a major move to dispatch more than 150,000 Pakistanis for overseas employment.

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, private TV News channel reported.

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 an official who recently returned from Qatar and Singapore.

Qatar accepts Pakistani labourers and issues visas on internal demand but a formal accord would allow a specific number of Pakistani labourers 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 hopeful of the date within one month. Developments on two different fronts would give almost 150,000 Pakistanis opportunity of overseas employment within a year," he added.

The recent developments have raised hopes of local operators, who are already happy on removal of ban on Pakistani labourers by the Kuwaiti government earlier this month.

The officials and local operators believe that accord with Singapore and Qatar coupled with removal of ban by the Kuwaiti government may increase manpower export by 1504000 within a year.

"The OEC (Overseas Employment Corp) would soon call a meeting of local operators to brief them on the new developments to evolve 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 avail better employment opportunities.

 

[Owais]

Karachi Shipyard not to be privatised: managing director

KARACHI (November 24 2006): Managing Director, Karachi Shipyard and Engineering Works, Vice Admiral Iftikhar Ahmed Thursday said that Government has decided not to privatise Shipyard and Ministry of Defence Production will run the organisation.

Talking to reporters here at Karachi Expo Centre on Thursday, the third day of IDEAS-2006 Exhibition, he said for the time being the government has provided funds to run the affairs of the Shipyard which he said would be repaid in the next three to four year's time after making its earnings from new projects to be undertaken in the near future. He informed that under an agreement with China four ships will be manufactured - three in China and one in Pakistan.

Vice Admiral Iftikhar Ahmed informed that the manufacturing of a frigate has been started in collaboration with China and hoped the same will be completed soon.

Manufacturing of the advanced submarine will also be undertaken with the co-operation of either Germany or France. He also mentioned that an agreement has been made with Germany for manufacturing of wind turbines.

 

[Owais]

Forex reserves fall by $650 mln this year

KARACHI: Pakistan's foreign exchange reserves fell by $650 million during current fiscal year.

According to State Bank of Pakistan figures the reserves hit an all-time high of $13.111 billion on July 1st, 2006.

The reserves fell by $650 million to $12.460 billion within last 4 ½ months.

Pakistan's foreign exchange reserves remained between $12 to 13 billion from FY 2003-04 till now.

The reserves in neighboring India, China and Iran are increasing rapidly.

 

[Owais]

KESC signs contract with ABB for nine new gird stations

KARACHI: KESC's addition, renovation and system improvement projects to improve power supply network gained momentum with the signing of a contract with Asea Brown Boveri(ABB) for nine new pre-fabricated grid stations.

The contract signing ceremony held at KESC head office was attended by KESC CEO, Frank Scherschmidt, Chief Financial Officer Mohammad Asghar, Chief Supply Chain Officer Mahmud Ansari, Divisional Director Engineering Khalid Iqbal and General Manager Project Waqas Khalid.

The ABB was represented by its President Farhat Ali, General Manager Waseem Ahmed and Project Manager Joachim Schremp.

According to a KESC spokesman, the management is working hard to carry out system improvement work on fast track. This would enable the corporation to provide stable power supply to consumers,eliminating overloading by enhancing the transmission and distribution capacity by adding new grid stations.

He said the existing power transmission and distribution capacity of the city power utility stood at 2800 MW. However, due to increase in industrial and commercial activity the power consumption in certain areas faced overloading of the local network causing breakdowns and loadshedding.

Another reason of the system overloading is the increase in use of electricity without intimation to KESC by the consumers, he pointed out.

Currently, he said, 52 conventional grid stations are distributing electricity to the city industrial, commercial,residential and agricultural consumers.

Another three grids started last year are in the process of establishment at Mauripur, West Wharfand Old Town. Of these two would be ready by April 2007, but the West Wharf would be delayed as the work has been stopped by the Karachi Port Trust, which has asked KESC to first renew the land lease.

He said the contracted nine new hybrid grid stations would be of international standard and state of art technology and their establishment would require smaller space while commissioning andinstallation of compact machinery is time efficient.

He said by next year the total number of grid stations would increase to 64 and thus the transmission and distribution capacity of then city network would increase to 3600 MW.

The pre-fabricated grids would be established at Pakistan Refinery Ltd., Korangi South, Gulshan-e-Maymar, near Finance and Trade Centre, Azizabad, Jail Road, Memon Goth, Malir, Tipu Sultan Road and near Airport.

 

[Neo]

Faisalabad to get IT park

FAISALABAD: Information Technology (IT) park would be established here to generate and further accelerate the economic activities.

Punjab Minister for Communication and Works, Chaudhry Zaheer-ud-Din while inaugurating an IT seminar at University of Agriculture Faisalabad here Thursday, underlined the importance of education for the socio economic uplift.

He said that Punjab has emerged as role model owing to revolutionary policies adopted by Chief Minister Chaudhry Pervaiz Elahi to provide education to all in the province. He said that these policies have yielded positive results.

He also termed IT as the engine for socio economic growth and said that progress was not possible without promotion of IT in any sector. It was in this respect that Punjab Information Technology Board (PITB) was constituted to translate the vision of Chief Minister Chaudhry Pervaiz Elahi to develop Punjab as a hub of IT.

He said that PITB has been providing demand-based training in IT at subsidized charges. He said that free IT training would be imparted to government officials while up to 80 per cent subsidy would be given to the students and employees of private sector organizations.

Zaheer-ud-Din said that the government had launched computerization of land record in the province which would not only provide jobs to the computer literate persons, but also save people from the “Patwari” culture.

He said that Chief Minister Punjab has been endeavouring to make Punjab a hub of IT and in this connection an IT Park is already under construction in Lahore.

“This park will generate economic activity up to the tune of Rs9 billion in addition to providing respectable jobs to the educated youth, he added. He said that an IT park would also be established in Faisalabad very soon to speed up the economic activities.

Dr. Ashfaq Ahmad acting vice chancellor UAF said that agriculture sector could also benefit from IT. “We could get satellite imaging of our fields”, he said and added though IT related analysis, and we could not only determine the exact farm production but also make necessary arrangement for its storage. Rizwan Amin Chairman PITB said that board has launched demand based IT program to cater to the needs of various sectors.

 

[Neo]

Joint investment company: Pakistan and China sign MoU today

ISLAMABAD: Pakistan and China have agreed to quickly set up the Joint Investment Company soon after the signing of MoUs on Friday between the two countries.

A high-level delegation led by Lie Kegu, Vice Governor, China Development Bank called on Dr Salman Shah, Adviser to Prime Minister on Finance, Revenue, Economic Affairs and Statistics here on Thursday.

The Vice Governor of China Development Bank appreciated Pakistan's rapid economic development in the recent years. He said that the China Development Bank would invest in Pakistan especially in building up the economic infrastructure and industrial development. He also said that China would also provide necessary financial support in the sectors of industry, services, agriculture, healthcare and education.

He said that the business relationship between the two countries should be further developed and strengthened. The two sides agreed to quickly set up the Joint Investment Company soon after the signing of MoUs tomorrow between the two countries. They emphasised on evolving an efficient working mechanism so that the project should start as early as possible.

The two sides agreed that Pakistan and China who have already developed a joint working group would also establish a preparation-working group between the Ministry of Finance and China Development Bank for long term financing of different projects in the country. This joint working group would workout different details of the projects to be implemented with the help of China Development Bank.

Welcoming the delegation, the adviser said that China and Pakistan economic cooperation would greatly contribute to economic development in both countries. He particularly mentioned the development opportunities of infrastructure both urban and rural in Pakistan. He also pointed out that the economic cooperation between the two countries would be based on the partnership between the corporate and private sectors of both countries with the government playing a leading supporting role.

He said that Pakistan would welcome Chinese companies to invest in different sectors of Pakistan inline with the five-year economic and trade agreement. He said that Pakistan has a great potential for growth and development and now it should be our objective to create an environment to fully achieve the potential.

The adviser said the two countries will sign five-year economic cooperation plan and the joint investment company objective would be to implement part of the economic cooperation plan. He said that the joint investment company would work as a window of the China Development Bank for evaluation of joint ventures between the two countries. He informed the delegation that according to the plan development of the special economic zones and investment in the sectors of telecommunications, infrastructure, industry, agriculture would be expedited. The adviser assured the Chinese side that a mechanism of financial cooperation between the two countries would be soon established to achieve the targets of long-term cooperation with China. The Vice Governor of China Development Bank said that economic cooperation between China and Pakistan would go beyond five years. The adviser thanked the delegation for its interest in investment in Pakistan.

 

[Neo]

Friday, November 24, 2006

Budget deficit to be brought to 3% of GDP by 2009-10

By Sajid Chaudhry

ISLAMABAD: The ministry of finance will continue to maintain macroeconomic stability by ensuring bringing the budget deficit at sustainable level of 3 percent of the GDP by the fiscal year 2009-10, according to the Key Macroeconomic Targets set for the next four years.

The report suggests that actual budget deficit to be around 3.7 percent of the GDP during the current fiscal year 2006-07 and it would be brought down to 3.5 percent of the GDP during next fiscal year 2007-08, 3.2 percent of the GDP during the fiscal year 208-09 and finally to be brought down to 3 percent in the fourth year of 2009-10.

The actual budget deficit was 5.4 percent of the GDP during the fiscal year 1999-2000 which came down to 4.3 percent in the fiscal year 2000-01, 4.3 percent in the fiscal year 2001-02, 3.7 percent in the fiscal year 202-03, 2.3 percent during fiscal year 2003-04, 3.3 percent in the fiscal year 204-05 and 3.4 percent in the last fiscal year 2005-06.

The public debt would also be brought down to a sustainable level of 39.8 percent of the GDP, which was 95.9 percent of the GDP in the fiscal year 1999-2000, by the fiscal year 2009-10 through maintaining macroeconomic stability in the next four years. Public Debt as percentage of the GDP was brought down to 56 percent of the GDP in the fiscal year would be further reduced to 50.6 percent of the GDP in the current fiscal year 2006-07, 46.4 percent in the fiscal year 2007-08, 43 percent of the GDP in the fiscal year 2008-09 and 39.8 percent in the fiscal year 2009-10.

The external debt would also be kept at sustainable level and will be brought down to 22 percent of the GDP by fiscal year 2009-10 from 28.9 percent in the fiscal year 2005-06 under the Key Macroeconomic Targets. External debt as percentage of the GDP to be brought down to 26.7 percent in the current fiscal year 2006-07, 24.9 percent of the GDP in the fiscal year 2007-08, 23.3 percent of the GDP in the fiscal year 2008-09 and 22 percent of the GDP in the fiscal year 2009-10.

Pakistan's economic growth rate to be increased to from 7 percent of the GDP in the current fiscal year 2006-07, 7.4 percent in the next fiscal year 2007-08, 7.8 percent in the fiscal year 2008-09 to 8 percent by the fiscal year 2009-10. Public investment would be increased from 20 percent of the GDP in the last fiscal year 2005-06 to 21.5 percent in the current fiscal year 2006-07, 23 percent in fiscal 2007-08, 24.5 percent in fiscal year and 26 percent in the fiscal year 2009-10.

The challenges, which are faced by the economy, have been identified as increase in the tax to GDP ratio, trade to GDP ratio, increase in investment to GDP ratio, increase in savings to GDP ratio and capital out put ration in the next four years.

http://www.dailytimes.com.pk/default.asp?page=2006\11\24\story_24-11-2006_pg5_2

 

[Neo]

Pakistan, China sign FTA, $15 billion target eyed

ISLAMABAD: November 24, 2006: Chinese President Hu Jintao and Pakistani counterpart Pervez Musharraf oversaw the signing of a landmark free trade deal on Friday and vowed to take the allies' 'evergreen' relationship to new heights.

The two countries also agreed to co-operate on airborne early warning radar planes and inked a slew of other agreements to boost their ties in the spheres of defence, energy and the economy.

Officials have said the trade agreement could triple bilateral trade to 15 billion dollars within five years in a key move for both the countries.

"This serves the fundamental interests of our two peoples and is also conducive to the peace and development of our region," Hu told a news conference after hour-long talks with Musharraf.

"We want to work with Pakistan to raise our strategic ties to a new level," added the first Chinese leader, the first to visit the Islamic republic for a decade.

Musharraf said the "evergreen relationship of Pakistan and China will remain for all time".

The presidents watched their ministers of commerce ink the trade pact and other accords, including a separate five-year development programme which the Chinese news agency Xinhua said was the first of its kind for Beijing.

They also agreed to set up a joint investment company.

But while Hu said that Beijing would continue to co-operate with Pakistan's nuclear power industry -- China has built one reactor here and is helping to construct another -- he did not announce any new deal.

Pakistani officials had earlier dismissed "speculative" reports that China would unveil a major new atomic agreement with Pakistan similar to one made between its arch-rival India and the United States earlier this year.

Separately Pakistan's Air Force said it had agreed with China to jointly develop aircraft equipped with long-range early warning radars.

"The same may be delivered to Pakistan in coming years," it said in a statement, without specifying a timeframe.

Beijing remains Islamabad's largest arms supplier and the two are jointly developing the JF-17 Thunder fighter aircraft. China has also invested millions of dollars in a deep sea port in Gawader to access the Arabian Sea.

Pakistan will later Friday give Hu the rare honour of addressing the nation live on state television, becoming the first foreign leader to do so since then-US president Bill Clinton in 2000.

Pakistan's ambassador to Beijing, Salman Bashir, told media on Thursday that bilateral trade should hit 15 billion dollars within five years of implementation of the free trade pact.

Last year, trade between China and Pakistan grew by 39 percent to 4.26 billion dollars compared with 2004, according to Chinese commerce ministry statistics.

Hu was greeted with a 21-gun salute after flying in late Thursday from a landmark trip to India, during which he pledged to double trade between the Asian giants and speed up work to resolve a border row.

Hu and Musharraf are also expected to inaugurate a special economic zone in Lahore when the Chinese leader travels to the historic eastern city on Saturday.

Maqbool Bhatti, Pakistan's ambassador to China from 1982 to 1987, said Hu's "milestone" visit after a 10-year gap had "psychological importance" for Pakistan after the United States decided to treat India as a strategic partner.

 

[Neo]

FTA to raise trade to $15 billion: 31 agreements and MoUs signed with China
RAFIQ GORAYA & MUHAMMAD BILAL

ISLAMABAD (November 25 2006): Pakistan and China on Friday signed Free Trade Agreement (FTA) and 30 other agreements/ MoUs in the public and private sectors to strengthen and expand their strategic partnership and economic cooperation in all fields. Chinese President Hu Jintao and President General Pervez Musharraf witnessed the signing at the Aiwan-e-Sadr.

Officials said that the FTA, effective from July 1, 2007, would reduce tariffs to zero rates on hundreds of items for import and export between the two countries, reduce trade imbalance, which is in favour of China, cut duties on Pakistan's exports, and increase bilateral trade to $15 billion in five years.

Pakistan and China also signed a multi-faceted five-year joint development programme on trade and economic cooperation and establishing a joint investment company to pave the way for billions of dollars Chinese investment in Pakistan in different sectors including agriculture, energy, communication, infrastructure, tourism, housing and industry.

OTHER AGREEMENTS AND MOUS SIGNED BETWEEN THE TWO COUNTRIES WERE:

1. Agreement on security of financing for China-Pakistan bilateral cooperation.

2. Exchange of Letters authorising construction of schools and hospitals in the October 8 earthquake-hit areas in Pakistan.

3. MoU regarding $337 million Chinese financial support for upgradation and rehabilitation of Karakorum Highway.

4. Transfer of completion certification of Gwadar port (Phase-I).

5. Authorising the relevant departments to establish Consulate-General of Pakistan in Chengdu.

6. Executive program of cultural agreement between the two countries for 2007-2009.

7. Contract agreement on KKH improvement project (Raikot to Khunjerab).

8. Framework agreement between China North Industries Corporation and Heavy Industries, Taxila (HIT).

9. Huawei-PTML-PTML GSM Phase-V expansion project contract agreement.

10. MoU between China Zhenhua Oil Company Limited and Ministry of Petroleum and Natural Resources.

11. Agreement on exploration and development of Saindak East project.

12. Agreement between Qingqi Group and National Bank of Pakistan on collaboration in President's Rozgar scheme.

13. China's PVC back integrated complex on Engro Asahi Polymer and Chemical Limited Pakistan.

PRIVATE SECTOR AGREEMENTS In addition to the 17 agreements, representatives of leading Chinese and Pakistani companies also inked nearly 13 agreements and Memorandums of Understanding worth $3 billion to undertake joint ventures in various sectors of hotels, housing, industrial parks, cement, fertiliser, transport, pesticides and others.

Major Chinese companies which signed agreements include China International Industry and Commerce Co Ltd (CIIC Group); Ningxia Building Material Group China; China National Chemical Engineering Group Corporation; International Business Incubator of China; Tianjin Renong Pesticide Industries Co Ltd; CETC International Co Ltd; Great United Petroleum Holdings Co Ltd; and GingKo Petroleum and Chemical Company Limited.

The agreements were signed from Pakistan side by The Board of Investment, Army Welfare Trust, National Logistic Cell, Federal Government Employees Housing Foundation, Housing and Works Ministry, Ruba Group of Pakistan, Fatima Fertiliser Limited, Incubator Centre of National University of Science and Technology (NUST), Pak-China Chemical, Motherhood (Pvt) Ltd, Pakistan Petroleum Limited, and Infrastructure Development Company (Pvt) Ltd.

Board of Investment officials said that an umbrella MoU between Pakistan and China was also signed under which these projects will be implemented within the next five years.

They said that Chinese investment in the public sector of Pakistan has always been very impressive, and described the signing of these agreements and MoUs as a big breakthrough in the private sector investment, which would be followed by more significant investments in near future. They said that the economic relations between the two countries were robust and strong.

China has made valuable contribution to Pakistan's economic development, particularly in the development of infrastructure and setting up of basic industries.

Beijing is also helping Islamabad in the development of Gwadar deep-sea port, whereas more than 50 Chinese companies are working in Pakistan in oil and gas, IT and telecom, power generation, engineering, automobiles, infrastructure and mining sectors.


http://www.brecorder.com/index.php?id=501050&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Hu in Lahore to inaugurate 'higher economic zone', electronics plant

LAHORE: November 25, 2006: Chinese President Hu Jintao arrived in Lahore on Saturday for cultural and business visits after concluding a free trade deal and pledging to boost strategic ties.

In historic Lahore, decorated elaborately with Pakistan and Chinese flags and portraits of Hu and Pakistani leaders, Hu was given a warm reception by Punjab governor Khalid Maqbool and chief minister Chaudhry Pervez Illahi.

School children lined up along the red carpet laid at the tarmac and cheered Hu as he disembarked from his plane at Lahore's international airport.

State television private satellite channels showed live footage of Hu's arrival.

Hu was set to visit the tomb of Allama Iqbal and the scenic Mughal-era Shalimar gardens, Pakistani officials said.

He will later attend a banquet hosted by key political and business leaders.

Hu told business leaders in Islamabad late Friday that he would remain in Lahore on Sunday for the inauguration ceremony of an electronics plant and a "higher economic zone" being set up by China.

The zone is one of eight being established outside China and mainly managed by Chinese companies, China's official Xinhua news agency said this week.

The Chinese president's Lahore trip comes a day after he and his Pakistani counterpart Pervez Musharraf oversaw the signing of a landmark free trade agreement.

The pact could treble bilateral trade to 15 billion dollars from 2005's level of 4.26 billion in a key move for both the Asian economic giant and its fast-developing neighbour, diplomats said.

The two countries also agreed to co-operate on an airborne radar system and inked a slew of pacts on defence and the economy including a five-year economic co-operation plan.

Hu meanwhile said China wanted to "work with Pakistan to raise our strategic ties to a new level," quelling Pakistani fears that Beijing is getting too close to neighbouring India.

Hu later addressed the Pakistani nation live on state TV and Musharraf presented him with Pakistan's highest civilian award.

The Chinese president praised Musharraf's "enlightened moderation" programme to counter extremism and made an apparent reference to Western policies of intervention.

"One cannot make irresponsible remarks about the internal affairs of other countries simply because of differences among countries and it is equally wrong to blame a particular civilisation, nation or religion for some problems and conflicts in the world," Hu said.

Hu also said that Beijing would carry on co-operating with Pakistan's nuclear power industry -- China has built one reactor here and is helping to construct another -- but he did not announce any new deal.

Beijing remains Islamabad's largest arms supplier and the two are jointly developing the JF-17 Thunder fighter aircraft.

Hu is scheduled to return to Beijing midway through Sunday.

 

[Neo]

Govt seeks Chinese investment in textile weaving

KARACHI: The government has sought Chinese investment in weaving segment of the dwindling textile industry in a move to share windfall the neighbouring country is enjoying across the globe, a senior official said.

He said the textile ministry, in its suggestions for a formal accord with China, had proposed a two-pronged strategy to attract Chinese investment and the agreement could bring the world’s biggest textile country’s techniques in the local industry.

“Our proposal focuses on two main segments,” said Syed Masood Alam Rizvi, Federal Textile Secretary. “We want Chinese interest in our weaving sector and also their contribution to enhancing our human resource skills. This will really boost our industrial interest and ultimately help our industry to grab some share with thriving Chinese industry.”

He said the focal point of the proposals was joint ventures between China and Pakistan but investment should be made within the country for setting up production units in weaving segment.

The textile ministry’s proposals were part of several others, which were shaped in more than a dozen accords signed between the two countries during the ongoing visit of Chinese President Hu Jintao on the second leg of his first-ever subcontinent tour.

The agreements include a $20 billion five-year trade and economic cooperation accord, which would pave the way for Chinese investment in all sectors. The textile ministry sees its proposals getting space within such cooperation agreement.

“The modalities and mechanism of the accord will be much clearer once its draft is issued after signing of the agreement,” said Rizvi, the Textile Secretary.

He said Beijing had recently taken an initiative to expand its textile production units outside the country and in the first phase targeted African countries as best place for such ventures.

“The Chinese government a few weeks ago invited all the countries of the continent (Africa) and unearthed its plan to set up (textile) production units there,” he added.

Pakistan’s textile exports have been on the decline, faced with soaring production costs and inadequate government response. There are also signs of pack-up and move to Bangladesh by the crucial textile industry.

The latest data released by the Federal Bureau of Statistics showed textile exports declined by 9.11 per cent to less than $3.23 billion during the first four months (July to Oct) of the current fiscal year. Over the same period last year, that figure was more than $3.55 billion.

“If China agrees to put its money in Pakistani textile, it will bring fruit for both the industry and the government,” said Zakir Lalani, a leading exporter of readymade garments. “But the authorities should realise that it is not the solution to competition, we are facing from the Chinese industry. The main incentive for Chinese industry is the low cost of doing business compared to any other part of the world.”

He said China had earned a good name in weaving and human resource skills and its contribution to local industry should be welcomed.

Downfall in Pakistan’s textile exports has already alarmed the authorities concerned pushing Prime Minister Shaukat Aziz to constitute National Textile Strategy Committee with the task to make proposals by December 31 to work out National Textile Strategy in order to make the industry more competitive and sustainable.

There is a strong feeling among both industry players and government officials that if the new approach fails to attract local industry, Pakistan may witness desperate moves from the textile sector.

“The government will have to take all proposals into account before finalising the strategy,” says Faisal Shaji, Head of Research at Capital One Equities. “If it doesn’t work, I fear we will miss the last boat.”

He said the government should make a quick move to arrest the declining trend in exports, which were projected to earn $11.5 billion in 2006-07, up from $10.1 billion last year.

 

[Neo]

Chinese firm to invest more in oil, gas sector

ISLAMABAD: Chairman of the China Norinco Company, Ma Zhigeng along with his 10-member delegation called on Minister for Petroleum and Natural Resources, Amanullah Khan Jadoon here on Friday and discussed with him investment potential in Pakistan’s oil and gas sector.

During the meeting, Chairman Norinco informed the minister about the signing of Baska and Bahawalpur East blocks held at the Aiwan-e-Sadr this morning in the presence of two presidents and expressed the desire of his company to further invest in three more blocks to promote oil and gas cooperation.

He said that Pakistan and Norinco had been partners since long in various fields and this was the first step for Norinco to enter into petroleum sector cooperation with Pakistan for their mutual advantage.

Ma Zhingeng also evinced interest to participate in the privatization process of public sector oil and gas entities.

Welcoming the Norinco delegation, the minister said that Sino-Pak deep-rooted and time-tested friendly relations were spanned over many decades and growing with the passage of time in diversified fields including oil, gas and minerals.

Jadoon said that there existed vast opportunities for Pak-Norinco interaction in the petroleum sector which would help learn a lot from each other’s experience in this vital field of economy.

He briefed the delegation about the salient features of upcoming oil and gas projects besides onshore and offshore exploration activities in the country.

The minister said that government would welcome China Norinco investment in these activities.

Minister of State for Petroleum Mir Muhammad Naseer Mengal, Secretary Petroleum Ahmad Waqar and senior officials of the ministry were also present during the meeting.