Pakistan Economy - News & Updates - Archive

[Owais]

Pakistan rapidly transforming into major market economy: PM


LAHORE (updated on: November 26, 2006, 17:18 PST): Prime Minister Shaukat Aziz on Sunday said that Pakistan was rapidly transforming into a major market economy with large product, services, labour markets and world class manufacturing and servicing hub of the region.

Speaking at the inauguration ceremony of Pakistan Haier and Ruba Economic Zone here, he said that economic growth in Pakistan opens avenues for Chinese entrepreneurs. He said with China emerging as an exporter of capital, there are huge win-win opportunities for both sides.

He said the Free Trade Agreement and the joint 5-year economic plan provide the conducive environment for our private sectors to collaborate for mutual benefit.

Chinese President Hu Jintao, Punjab Governor, Lt.Gen (Retd) Khalid Maqbool, Federal Minister for Information and Broadcasting Muhammad Ali Durrani, Federal Minister for Privatisation, Zahid Hamid, founder Chairman Pak-US Business Council and Co-Chairman Businessmen Panel, Iftikhar Ali Malik, Chairman WAPDA and business magnates were also present on the occasion.

Aziz said, "We have created an investor-friendly environment in Pakistan and our country offers vast investment opportunities in energy, oil, gas, mining, engineering, automobile, infrastructure development, information technology and telecom, financial and agriculture sectors to name only a few. We also have a sound and transparent privatisation programme," he added.

He said during the last seven years, we in Pakistan have implemented broad based and multi-dimensional structural reforms and put our economy on a high growth trajectory. He said per capita income has risen substantially and there has been a significant reduction in poverty. He said last year, we received the highest ever level of foreign investment in Pakistan.

The premier said that we in Pakistan are also leveraging our geo-strategic location and developing a network of infrastructure to create multiple corridors of regional co-operation in energy, trade, transportation, tourism and people-to-people contacts.

He said we are keen to share with our Chinese friends the advantages accruing from such linkages and complementarities.

He said Pakistan is open for business and over 600 multi- national companies are already profitably operating in Pakistan. He said with a population of 160 million people and a growing middle class, Pakistan is the most profitable part of their franchise and we will welcome Chinese businessmen to invest in any sector and benefit from our economic growth coupled with dynamism.

He said China has always generously contributed towards our national development efforts and we highly value their assistance that has strengthened our security and development.

He said that agreements singed during the visit of President Hu Jintao including those between our private sectors, will further cement our mutually beneficial relations.

Aziz said that the inauguration of Pakistan Haier and Ruba Economic Zone is another milestone of economic co- operation between the private sectors of the both countries. He said we are grateful to the Chinese government for supporting this first ever initiative of its kind overseas.

He said we welcome this initiative and our government will provide the necessary facilitation and incentives to support and replicate it in different parts of the country.

Aziz said "let me also appreciate the contribution made by the Ruba Group, which have made substantial investments in the country and acted as a bridge between the private sectors of Pakistan and China.

The prime minister said that let me conclude by thanking his excellency President Hu Jintao for joining us today on this landmark event. "I am confident that the governments and the private sectors of our two countries will continue to collaborate for mutual benefit and thereby contribute towards the further strengthening of Pakistan-China friendship."

 

[Owais]

125 new CNG buses in Karachi likely next month


KARACHI (updated on: November 26, 2006, 20:00 PST): A private bus firm, Holland Bus Company, said it would bring 125 CNG buses in Karachi by the end of December 2006.

In this regard a delegation of the firm led by its general manager Mr. Hons called on City nazim Syed Mustafa Kamal at his office on Saturday.

He said that his company, which was a consortium of 11 bus companies, could met the target of introducing 8000 wide-bodies buses in Karachi in two years.

He said that 125 buses would be imported from Holland; however, a bus making plant could be set up in Karachi.

Hons said 24 persons were being trained in Holland to run these 125 buses and these trained persons would train more staff in Karachi.

The city nazim assured the delegation of all-out co-operation and said there were ample opportunities for transporters to run modern buses in Karachi.

He regretted that this city of 18 million souls still had no reliable public transport system.

Kamal said that brining modern buses in Karachi would not only provide lucrative profit to transport companies, but they would also cater needs of Karachi commuters and create more job opportunities.

Separately, the city nazim on Saturday night attended a "gala variety program', the last program of Ideas2006, at the Peoples Sports Stadium Lyari. Sindh Governor Dr Ishratul Ibad Khan was the chief guest.

Speaking on the occasion, the city nazim congratulated Karachiites for making the Ideas2006 a big success. He hoped that this mega program would help in promoting soft image of country, especially Karachi.

 

[Owais]

Chinese economic co-operation to be continued: Hu Jintao


LAHORE (updated on: November 26, 2006, 17:41 PST): Terming Pakistan a strategic partner, Chinese President Hu Jintao said that his country would continually invest in every sector in Pakistan specially in economic sector.

Addressing the inauguration ceremony of Higher and Roba Economic Zone set-up by jointly by Pakistan and China here on Sunday, the Chinese President has termed it a milestone in the timetested Pak-China friendship.

Congratulating the Pakistani nation on the establishment of the Economic Zone, the Chinese President said that it is the first time that China is establishing an Economic Zone outside of China.

Hu Jintao expressed his hope that Pakistan would be benefited from this investment and not only would able to fulfil its requirements regarding electronic products but also export to foreign countries.

Prime Minister Shaukat Aziz on the occasion said that Pakistan is proud of its friendship with China and value its assistance and co-operation in the development of Pakistan.

Aziz said that after the establishment of the Economic Zone, the private sector of both the countries would further close and the government would provide all-possible help in this regard.

The prime minister said that Pakistan is pursuing a friendly investment policies and immense prospects of investment are available in energy, oil and gas, mineral, engineering, auto mobile, infrastructure, information and communication technology and agriculture's sectors.

 

[Owais]

Pak-Kazakhstan trade volume likely to swell 300 percent: Kazakh envoy


ISLAMABAD (updated on: November 26, 2006, 17:29 PST): The envoy of the Republic of Kazakhstan in Pakistan Bakhitbek Shabarbayev is quite hopeful that the trade volume between Pakistan and Kazakhstan is likely to swell 300 percent in the next few years.

While talking to Online, the ambassador, who recently presented his credential papers to President General Pervez Musharraf, said that in 2005 and up to the beginning of November 2006 its volume has made, accordingly, $10.4 million and $10.7 million, against $8.9 million in 2002 and $9.1 million in 2003.

He said that this level of mutual Kazakhstan and Pakistan trade is far the real potential of our states. He pointed out that the principal cause of this problem was in absence of the direct transport communication between the two countries.

He expressed hope that the Karakoram highway will contribute a lot to the surge in bilateral trade between two countries.

He said that in 1994 Pak-Kazakhstan signed an agreement "on development of Transport Co-operation" and in the same year the governments of Kazakhstan, Pakistan, China and Kyrgyzstan also signed agreement "On Traffic-in-Transit", which envisaged the exploitation of transit potential of the Karakoram Highway.

He said that the parliament of the Republic of Kazakhstan ratified Agreement between the Kazakhstan and Pakistan on mutual incentives and protection of investments and when this agreement enter into force in Kazakhstan will be created more favourable conditions for implementation of mutual investment projects for Pakistani businessmen.

He said that there existed lot of potential for investors of both countries to cooperate themselves in petroleum and other sector and the investors of both countries come forward and take benefit from each others experience especially in oil and gas sector.

The envoy said: "The Kazakh embassy is carrying out relevant work and there are certain results. So, for example, for the years of my diplomatic mission in Pakistan the average number of Kazakhstan-Pakistan joint Venture companies functioning in Kazakhstan, has increased more than twice, against 26 Joint ventures in Kazakhstan in November 2003. Since the representative offices of the national bank of Pakistan functioning in Almaty. The number of Pakistani businessmen, who visited Kazakhstan on business in the period between 2004 and 2005, increased by two times".

He said that in 2004-2005, the embassy organised and carried out special reconnaissance visits to Kazakhstan for the heads and members of the Chambers of Commerce and Industry of Lahore, Rawalpindi and Peshawar. This year, we plan to organise similar visits of Chambers of Commerce and Industry of other cities of Pakistan, he said.

He said that Kazakhstan has achieved great success in the economic development, which today is known all over the world.

Average annual rate of growth of industrial production in the country make up more than 10 percent and GNI per capita during the 15 years tripled, the volume of foreign trade turnover increased fourfold, the state budget allocations for public health services grew by four times, for a science and education by three times etc.

In a reply to question regarding the importance of international organisations in the development of the modern world and the role of our countries in these organisations, Shabarbayev said that modern actively globalising world simply cannot exist without international organisations and today's international political and economic structures, simply speaking, are the 'main fundament' for the development of the whole human civilisation.

He said that the reality is that the globalisation process in intensifying and it is bringing in not only benefits in the forms of scientific and technical progress, increasing level and improving life standards of people, but also many common for all people threats and problems- international terrorism, pollution of environment, man-made catastrophes etc, which can be solved only by joint efforts of the world community.

Therefore, no country, whatever powerful it is, will not be able to actively and effectively develop out of co-operation with international community and its organising.

He said that the humanity has already rich experience of work in such global forum as United Nations which helped the world in 2oth century to avoid the break out of the third world war, solve humanitarian, technogenetic and other problems.

Today, he said, the UN has new tasks in its agenda, which require radical modernisation of its activity and Kazakhstan, as majority of other countries, actively supports the idea of UN modernisation in order to increase the effectiveness of its peacemaking and humanitarian activity.

About the Organisation of Islamic Countries (OIC) reforms, the Kazakh envoy said that the process of mutual understanding and support, in the frame of international organisations, is also followed up in the common ideas of reforming OIC.

In this context, he said that leadership of Kazakhstan paid with great inters and supported initiative of President General Pervez Musharraf -Enlightened moderation-, where was proposed the fundamental principles and ideas on reforming OIC, in order to increase its role and effectiveness in international arena.

About CICA, the envoy said that the CICA process is aimed at strengthening the interaction and confidence building measures between all countries of Asia. Today, he said, CICA includes 30 states with Pakistan among them, which actively participates in its work and facilitates the expanding and deepening of the activity of this peacemaking process.

He said that June 17, 2006 meeting of CICA held in Almaty, which was attended by President General Pervez Musharraf, was the important stage of development of the CICA process. He expected hope that the vital decisions, which are to be adopted during this meeting, would allow us to completed formation of CICA process as functional organisation.

About the future of Shanghai Co-operation Organisation (SCO), he said that SCO is comparatively the youngest among international organisations but it earned high respect in the world by its active and effective activity. The SCO will not only promote interregional trade and economic co-operation but also promote peace and security in the vast part of Eurasian continent, he said.

He said that after joining Pakistan and India in SCO as Observer states peace and security would strengthen in the region as well.

About Kashmir issue, the Kazakh envoy said that his country supported peaceful solution of the Kashmir issue and appreciated the peace process. He said that the peaceful solution of this issue would improve peace and security situation in the region.

He said that Kazakhstan also believe that without involving the whole community, the peace would not be maintain in Afghanistan.

 

[Owais]

China firm to support investment in Pakistan: Hu

LAHORE (November 26 2006): "Our commercial organisations will give preferential treatment to Pakistan, while Chinese government policy remains firm in supporting investment in this country." This was stated by Chinese President Hu Jintao at a civic reception given by Punjab Chief Minister Pervaiz Elahi at the Shalimar Gardens here on Saturday.

President Jintao received enthusiastic welcome from 7,000 citizens of Lahore. He stated in unequivocal terms that friendship of Pakistan and China would remain steadfast and friendly against all odds and change of political scenario whatever it may be.

The Chinese President averred that economic, political, military, and social relations between the two countries had worked for benefit of each other.

Referring to economic ties between China and Pakistan, he said that Chashma, Gwadar, and Shahrah-e-Karakoram projects spoke volumes of success for them.

He said that China was thankful to Pakistan for collaboration it provided to it in difficult period and this would never be forgotten.

He said that standing by each other in difficult periods, Pakistan and China both had become staunch and dependable friends of each other.

Speaking about hospitality of Lahorites, the Chinese President said that he had witnessed it 22 years back and was feeling its warmth again during the current visit. He said that Chinese were aware of the proverbial friendliness that ripened here historically.

He said that in his meeting with President Musharraf they agreed that their strong brotherly relations would contribute to universal stability.

Mentioning, with reverence, the name of Allamah Iqbal, the Chinese leader said that Lahore had played epoch role in the struggle for independence of Pakistan.

Earlier, Punjab Chief Minister Pervaiz, welcoming Chinese President Jintao, stated that people of Lahore always held the Chinese nation in the highest esteem and the people of Lahore were highly honoured to welcome a leader whose entire life had been symbolic of struggle of highest cause of serving the country and the people of China.

He said that 21st century would have to seek guidance from the ancient Chinese wisdom for solutions of its burning issues and disputes.

The Chief Minister said that China had always upheld the time-honoured principles of international justice, and Pakistan had always enjoyed complete support of China on the Kashmir and other issues.

He said that China had supported Pakistan at every crucial juncture and the people of Pakistan could not forget the fact that when the City was attacked 40 years ago, the friendship of China had stood with them with the strength of Great Wall of China.

He said that with rapid progress made under able guidance of President Pervez Musharraf, the people of Punjab were waiting for guidance of China in the journey of development. He expressed confidence that the federal government would leave no stone unturned towards completion of any project to be executed in the province with the guidance and co-operation of China. Pervaiz said that Punjab government was setting up Jiangsu Cultural Centres in the Province for teaching Chinese language, and would also provide scholarships to students in this regard.

The Chief Minister said that every citizen of Pakistan and Lahore had good wishes for the people of China. The Chinese President was presented a painting and other gifts by the CM on the occasion.

Agencies add: Pakistan and China have entered into an agreement to set up a joint modern electronics complex as a symbol of their everlasting friendship.

The agreement signed by the Defence Science and Technology Organisation (DSTO) and the Chinese firm CETC. The agreement is expected to prove a milestone in achieving self-reliance in the fields of electronics and communications.

It will also help develop the electronics industry and provide a national base for the defence electronics technology. The National Highway Authority (NHA) on Friday signed an agreement with China Road and Bridge Corporation for the upgradation of Khunjerab-Raikot section of the Karakoram Highway (KKH).

The agreement was signed by Chairman, NHA Major General Farrukh Javed and company's president Chen Yu Sheng, says a press release.

Speaking on the occasion, General Farrukh said that Karakoram Highway was a symbol of eternal friendship between Pakistan and China. Widening and improvement of Raikot-Khunjerab section (335 km) was important in view of Pakistan's trade relations with China and the Central Asian Republics. He said the upgradation of KKH into an all weather road was NHA's top priority to improve trade in the region.

Highlighting various aspects of the project, the NHA Chairman said it would cost 490 million dollar and would be completed by 2010. The KKH connects Pakistan (Hasanabdal) with China through famous Khunjerab Pass. It was completed by FWO in 1978 with Chinese assistance.

 

[Owais]

SBP modifies export finance scheme

KARACHI (November 26 2006): The State Bank of Pakistan has modified the export finance scheme and decided that where forwarder's cargo receipt (FCR) is submitted, in lieu of copy of bill of lading or airway bill, it may be accepted as proof of shipment under the scheme.

A SBP circular issued on Saturday said that it had been noticed that some exporters, instead of submitting bill of lading/airway bill, submit house bill of lading or house airway bill along with forwarder's cargo receipt to their bankers as confirmation of shipments of their goods, against which refinance has been obtained.

The circular said that these documents are not valid documents presently for showing performance against refinance loans availed under the scheme at pre-shipment stage.

The bank has therefore decided that in cases where FCRs are submitted in lieu of copy of bill of lading or airway bill, the same may be accepted as proof of shipment under the scheme, provided that such document is backed by letter of credit specifically requiring submission of FCRs and mate's receipt (where shipment is by sea) or export general manifest (where shipment is by air) and that export proceeds thereof have been realised in relation to the shipment involved.

Thus, when export proceeds are not realised, as per time frame prescribed by Exchange Policy Department the shipment will be treated as irregular.

 

[Owais]

Industrial sector's share in GDP up at 26 percent: Shaukat

ISLAMABAD (November 26 2006): Prime Minister Shaukat Aziz said here on Saturday that Pakistan's industrial sector had shown significant growth during past seven years, and the rise in share-to-GDP of overall manufacturing from 23 percent to 26 percent and of large-scale manufacturing from 10 percent to close to 13 percent was a manifestation of this great achievement.

He stated this while presiding over a meeting at the PM House to review large-scale manufacturing statistics. The meeting was attended among others by Minister for Industries and Production Jehangir Khan Tareen, Planning Commission Deputy Chairman Dr M Akram Sheikh and other senior officials.

He said that the industrial sector was continuing to maintain the strong growth momentum and it was heartening to note that the growth of large-scale manufacturing in the first quarter of the current financial year was in double digits.

The Prime Minister reviewed the entire process of industrial statistics and said that availability of accurate data "plays a critical role" in future planning and development of the country.

He said; "The government will continue to improve the system of data collection, compilation and analysis, to make it more suitable for future planning." The Prime Minister asked the Federal Bureau of Statistics (FBS) to complete the next Census for Manufacturing Industries (CMI) as soon as possible.

He also asked Ministry of Industries to broaden the scope of data collection and involve industry associations in the process. The Prime Minister set up a committee comprising Finance and Industries Ministries, Planning Commission, Federal Bureau of Statistic and CBR to monitor the entire process of statistics collection, compilation and analysis.

Earlier, the Ministry of Industries in its presentation highlighted the growth performance of industrial sector and GDP contribution of various sub-sectors. The Federal Bureau of Statistics informed the meeting that it was in the process of completing next Census for Manufacturing Industries (CMI), which has 44 percent more coverage than the 2000-01 census.

 

[Owais]

Textile processors seek government incentives

FAISALABAD (November 26 2006): Sui gas prices and the prices of caustic soda for the textile processing sector should be rationalised and the levy of income tax may be deferred for a period of five years enabling this value-added and export-oriented sector to cope with the vast challenges of the WTO.

This was stated by Mohammad Saeed Sheikh, chairman, All Pakistan Textile Processing Mills Association (APTPMA), on the conclusion of the meeting of the Sub-Committee of the National Textile Strategy Committee (NTSC) in Faisalabad the other day. The meeting was chaired by Mian Tariq Saigol, chairman, NTSC Sub-Committee and Federal Textile Industry Secretary Syed Masud Alam Rizvi.

Among others, Ms Rukhshana Shah, secretary LGCC, MoT Camp office, Lahore, attended the meeting. Representatives of Pakistan Textile Exporters Association (PTEA), Pakistan Hosiery Manufacturers Association, (PHMA), All Pakistan Textile Mills Association (Aptma), All Pakistan Textile Processing Mills Association (APTPMA), Power Looms Association and Caustic Soda Manufacturers presented their viewpoint on behalf of the private sector.

APTPMA was represented by its Chairman Muhammad Saeed Sheikh, former APTPMA chairman Mian Shabbir Ahmed and Faisalabad Region Chairman Mian Aftab Ahmed. Presenting his stance on behalf of APTPMA, Sheikh Saeed contended that whereas Sui gas has assumed the status of a basic raw-material for the value-added and export-oriented textile processing sector, the recent enhancement by Ogra in gas tariff, on the pretext of enhancement of international oil prices is untenable and highly uncalled-for, because the oil prices in the international market have receded considerably and as a sequel to enhancement of gas development surcharge (GDS), the gas companies are making an additional profit of Rs 2 billion.

In view of this state of affairs, the APTPMA chief demanded a relief of at least 30 percent for the textile industry in gas prices enabling it to survive in the international export market.

Other irritants and impediments, which the APTPMA delegation highlighted in the NTSC meeting were the levy of income tax, exorbitant rate of import duty on caustic soda and rationalisation of the rate of mark-up on textile machinery.

They suggested that the import duty on caustic soda flakes should be reduced from 25 to 10 percent, while caustic soda liquid too be reduced to a flat rate of 10 percent.

They also suggested that the rate of mark-up on textile machinery may be reduced to a maximum of 7 percent whether it is for BMR or LMM, saying the levy of income tax on textile exports be deferred for a period of five years.

 

[Owais]

Pakistan attractive place for FDI: Musharraf

LAHORE (November 26 2006): President General Pervez Musharraf has said Pakistan has become an attractive destination for foreign direct investment (FDI). He was speaking at the groundbreaking ceremony of Defence Raya Golf Resorts in DHA here on Friday evening.

First Lady, Begum Sehba Musharraf, Punjab Governor Lieutenant General (Retd) Khalid Maqbool, Corps Commander Lahore, Lieutenant General Shafaatullah Shah and Chief Executive of Malaysian real estate developers, BRDB, Dato Sri Akbar Khan were also present on the occasion.

President Musharraf said that there was a rise in Pakistan's economy and added the country's GDP and per capita income had doubled. In this scenario, Pakistan was a good venue for investment, he maintained.

The president appreciated the Malaysian firm, BRDB for joining hands with Defence Housing Authority (DHA) Lahore in Defence Raya Golf Club project and hoped that more companies would follow suit. He called for promoting the soft image of Pakistan and said that improvement in sports, culture, heritage and tourism sectors could help attain this goal.

He hoped that the projects like Golf Resorts would go a long way in the promotion of healthy activities in the country. The people of Pakistan were keen to have entertainment, the president said and added that the Pak-Malaysian joint venture would attract people to activities like golf. The president observed that DHA, Fauji Foundation and Army Welfare Trust were rendering valuable services in different sectors such as health, education and housing.

He dispelled the impression that army was involved in business activities through these organisations and stated that these were basically engaged in welfare-oriented projects. Taking care of retired army personnel of all ranks was the responsibility of the army and DHA, Fauji Foundation and Army Welfare Trust and all these were working very well for this purpose, he asserted.

However, only a few serving officers/officials of the army, he emphasised were performing duties with these organisations while main focus of the force was on "its professional training and operational preparedness".

Musharraf said the staff of these organisations mainly comprised retired military personnel and civilians. "DHA is also one of the major tax payer organisations of the country," he added. The president appreciated the services being rendered by Corps Commander Lahore Lieutenant General Shafaat Ullah Shah in different sectors and said, "I am greatly impressed by it."

The president also referred to the inauguration of a technical institute and a medical college and laying of foundation stone of a university for which DHA had given a land spreading over an area of 130 acres.

Earlier, Corps Commander Lahore Lieutenant General Shafaat Ullah Shah who is also the President of DHA, said that DHA provided attractive investment opportunities due to credible ownership rights of plots, one window operation, continuity of policies, fast track decision making and above all security of investment.

He said DHA was the only ISO certified housing society in the country. Chief Executive BRDB, Dato Sri Akbar Khan said that a conducive business environment had made Pakistan an ideal place for foreign investment.

He said that a boom had occurred in property sector in this part of the world and hoped that the Defence Raya Golf Resorts project would help provide better housing facilities to Pakistanis especially the local people.

 

[Owais]

SPI up 11.78 percent

ISLAMABAD (November 26 2006): The Sensitive Price Indicator (SPI) year-on-year of 53 essential items for week ending on November 23, has shown 11.78 percent increase as compared to the corresponding week of last year.

The high percentage change is close to that of Eid week, which ended on October 27 and showed a record distinctive figure of 11.86, with income groups of up to Rs 3000, Rs 3001-5000 and Rs 5001-12000 has seen unusual increase of 14.65, 14 and 13.36 respectively, whereas income group of above Rs 12000 were the least affected with only 10.89 percentage change as compared to corresponding week of last year.

The bulletin on SPI, based on data of 53 items from 17 urban centres, showed that 15 items registered increase, 10 items showed decline, while prices of 28 items remained unchanged with reference to the last week prices.

The commodities, which hit the poor most this week were onions, tomatoes, and red chillies showing 31 percent, 23 percent and 4.4 percent change respectively from last week, while the same has seen 263 percent, 82 percent and 33 percent increase from corresponding week of last year. Otherwise, the data provided for rest of the commodities did not show much rise from last week's prices.

The weekly bulletin of Federal Bureau of Statistics (FBS) shows that the rise in the prices of some basic necessities and kitchen items in 12 months has been substantial.

These items, apart from onions, tomatoes and chillies, were vegetable ghee, sugar, gur, salt, tea, pulses, potatoes, curd, milk fresh, beef, garlic, gas, kerosene oil, LPG, firewood, which directly hit the low-income group.

Analysis of the data from the report year-on-year basis of 44 items showed increase over last year. Out of these 22 items of significance to low-income group include: onions 263 percent; potatoes 33 percent; tomatoes 82 percent; wheat 3 percent; sugar 21 percent; salt 25 percent; red chillies 33 percent; gram pulse 49 percent; moong pulse 26 percent; mash pulse 45 percent; gur 24 percent; beef 13 percent; milk 12 percent; curd 10 percent; tea 12 percent; match box 10 percent; firewood 18 percent; petrol 3 percent; diesel 4 percent; LPG 4 percent; kerosene 7 percent; and gas increased by 20 percent.

Moreover, a few items showing decrease from the previous week were still dearer when compared to corresponding week of last year, which are sugar, potatoes, gur, gram, moong and mash pulses, and LPG.

 

[Owais]

FTA to further boost Pak-china economic ties

BEIJING (November 26 2006): The signing of Free Trade Agreement (FTA) between Pakistan and China is a historic event that will help a quantum jump in trade and economic activities between the two countries.

"With the signing of the FTA it is likely to take a quantum leap in the years ahead and the determination of the leadership of the two countries is to increase it to over 10 billion dollars would be realised very soon," said the Chairman Institute of Strategic Studies, Islamabad, Inamul Haque.

Talking to a private TV channel, he termed the signing of the FTA as the most important agreement between the two countries. He said that the agreement on expansion of Karakoram Highway stood as symbol of affection between the two nations.

Haque said that Pakistan and China could play a very positive role in increasing political stability, enhancing economic prosperity and bringing the world closer to each other.

He said that relations between Pakistan and China were comprehensive and had always been based on principles and co-operation with each other for the last over fifty years and added that the friendship and co-operation are strategic in nature.

"We believe that during the 21st century these relations will grow even stronger because of the emerging opportunities and challenges that are confronted in the world," he said.

 

[Neo]

Deal inked for coal geological investigation in Thatta

KARACHI (November 26 2006): Sindh Coal Authority, Mines and Mineral Development Department and China National Machinery Import and Export Corporation (CMC) Saturday signed an agreement for Detailed Coal Geological Investigation (DCGI) in Sondha-Jheruk coal field area in Thatta district for installation of a power plant there.

Abdul Hameed Akhund Secretary, Mines and Minerals Development Department and Shan Web, Vice President CMC signed the agreement in the of Sindh Minister for Mines and Mineral Development.

The agreement was signed in pursuance to a MoU signed on July 29, 2006 for development of mutually agreed and defined integrated coal mine and mine-mouth power generation complex on POT basis. CMC will setup two power generation plants of 300 MW each. Sindh government has identified a large potential of lignite coal resource at Sonda-Jheruk through a preliminary geological survey.

The agreement envisages the conduct of Detailed Coal Geological Investigation (DCGI) by CMC so as to establish firm basis for coal extraction and power generation.

In order to develop the identified Sonda-Jheruk coal field for its commercial exploitation, the CMC will undertake further exploration for detailed geological findings so as to utilise it for power generation, besides attracting international investment.

The CMC will send its engineering technicians, management personnel and mobile drilling rigs together with all necessary machinery, equipment and materials etc to Pakistan who will here as soon as possible. The DDGI will he completed within six months starting from the date of signing of this agreement and this period will be extended in case there were delays beyond CMC's control.

The feasibility study report on an integrated Coal Mine & Power Plant Project will be presented to Sindh government for obtaining Mining License which will be issued within one month from the date of submission of the report. According to CMC sources here its equipment and personal, will start arriving, here in early December.

 

[Neo]

Bridging the gap

KARACHI, Nov 25: Pakistan and China have been the best of friends in the geo-political arena. But how far up the Great Chinese Wall has to be scaled on the economic front, has not really received a serious thought.

The strategic relationship of the two countries has still to mature into close economic ties. Be it bilateral trade, mutual investments (direct/ portfolio or both), joint ventures, aids/loans provided to each other, the gap between the potential and the real is wide.

Scores of formal agreements have pushed total trade volume between Pakistan and China from under $1 billion in 2000-2001 to about $5 billion by the end of 2006. India trade figures were better by a few million in 2000-2001. Today China-India total trade volume stands at $18 billion.

According to information collected from different sources there were about 145 private Chinese companies in Pakistan in 2003. After three years, in 2006 there are in all 52 Chinese companies left in Pakistan. Over the same period, according to our sources in Pakistan German Business Council, presence of German companies in Pakistan increased from 80 to 190. Same seems to be true for several other Western countries.

Except for National Bank of Pakistan no other Pakistani bank has any presence in China. Not a single Chinese bank has so far come to Pakistan.

The apex body of private sector Federation of Pakistan Chamber of Commerce and Industry (FPCCI) does not have any office anywhere in China. Its counterpart next door Federation of Indian Chambers of Commerce and Industry has number of sub stations in China.

Over the last few years West has aggressively penetrated deep into Pakistani society through specialised institutions, NGO sector and through direct contact between professional and traders. No firmed up data was available but there are several dozen organisations jointly manned by Westerners and Pakistanis specialising in issues related to corporate governance, competitiveness, etc. Chinese interaction has been comparatively limited.

These facts beg explanation. Why steps taken to bring economic actors on two sides closer have failed to persuade them into cashing on the opportunities?

Leaders of private sector here when contacted by Dawn expressed great enthusiasm. They admitted that this time round the government kept business class of the country fully involved in the process of defining the parameters of trade relations with China.

FPCCI President Chaudhry Saeed told Dawn from Islamabad that the chamber was in the process of opening the office in Shanghai. He felt that the private sector was oriented towards West and it would take some time before they re-evaluate and reposition their businesses to suit the changed rules of the game.

High profile exchange of visits over the last five years, particularly that of President Pervez Musharraf earlier this year and President Hu Jintao current visit with a 200-member strong delegation, has contributed to further solidify a relationship based on convergence of economic and strategic interests of two countries.

A peculiar feature of closer understanding during the current phase is added emphasis on the economic dimensions of relationship between two nations. It reflects realisation on both sides that in order to sustain a comprehensive relationship substantive economic cooperation was absolutely necessary.

Since 2001 when Chinese Prime Minister Zhu Rongji visited Pakistan, the two countries have signed some 60 trade agreements and MoUs. A joint declaration on direction of bilateral relations was signed during President Musharraf’s visit to China in 2003. It was a road-map determining the direction and scope of Pakistan-China bilateral relations clearly laying emphasis on expanding economic cooperation. Two countries also signed Preferential Trade Agreement (PTA) in November the same year.

In 2004 during Prime Minister Shaukat Aziz visit, besides signing number of trade agreements Pakistan announced ‘free market economy’ status for China. Reciprocating China committed to provide $150 million for Chashma Nuclear Power Plant (phase II).

During a landmark visit of Chinese Prime Minister Wen Jiabao in 2005, the two sides signed a treaty of friendship, cooperation and good neighbourly relations. Agreement on ‘Early Harvest Programme’ was also signed that has become operational since January 1, 2006. Under the agreement China has brought to zero tariffs on 767 items.

Two days back two countries succeeded in concluding the Free Trade Agreement (FTA) clearly reflecting willingness at the state level in two countries to enhance quantum of mutual trade.

For people of Pakistan, China is a time-tested friend that provides them with a variety of consumer items within their reach.

The ‘made in China’ products have penetrated deep into Pakistani market. There are questions asked about the quality of Chinese products but as an ex-Chinese trade commissioner said you get value for money spent. “You get what you pay for. Gone are days when China could not produce quality,” he said. “Today if you are willing to pay you can get good quality products made in China”.

There is no denying the fact that cheap Chinese products have driven many local manufacturers out of domestic market. Probably this has also led to creation of suspicion about China amongst local private sector.

An interesting feature is the fact that numbers of Chinese exports from China to Pakistan are much larger than numbers reflecting Pakistani figures of imports from China.

Still so long China’s formal trade with Pakistan has been a fraction of its trade with the rest of the world. On Pakistan’s side situation is still worse. With its trade oriented towards far off West China hardly figured till the year 2000 with hardly five per cent of Pakistani exports directed to destinations in China.

The world looked on with awe at evolving closer relationship between Asian dragon China and Asian elephant India. How long will it take for India and China to get rid of the legacies of past to foster ahead with full confidence is not clear?

What is crystal clear, though, is the fact that if Pakistan and China can cross over a few barriers, greater mutual economic integration has the potential to further improve Pakistan’s economic growth story in the region. It also raises the stakes for China as a world leader with its sphere of influence extending to Middle East and Central Asian states through the Pakistani Port at Gwadar.

http://www.dawn.com/2006/11/26/ebr1.htm

 

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Ufone to cover 1,500 cities by June 2007

ISLAMABAD: Ufone has started implementation of its largest ever $550 million expansion programme with a target to cover 1,500 cities, towns and villages by the end of June 2007.

The envisaged plan focuses on the expansion of network in terms of capacity and coverage in existing and new cities, besides providing high-speed wireless data services based on EDGE technology, said Babar Khan, President and Chief Executive of Ufone, while addressing a news conference here on Saturday.

“The current investment in network expansion will more than double the capacity,” he said.

Babar Khan said the coverage of Ufone for Hajj pilgrims would improve further. He said in line with its vibrant brand strategy and provision of infinite excellence, Ufone is once again set to introduce “Postpay” for all those who expect more from life; from themselves and from their cell phones so that they can experience an unmatchable mobile communication they always wanted.

He said postpay provides endless features on their mobile phones so they can enjoy special discounts, virtual private network, GPRS, international roaming, quality network, exclusive customer care, accurate billing and much more.

 

[Neo]

Imports, exports increase

KARACHI: Imports during July-October has surged by 7.69 per cent to $9.560 billion while exports recorded only 1.3 per cent rise to $5.551 billion over same period last year.

According to the provisional figures compiled by the Federal Bureau of Statistics, the exports in October decreased by 9.47 per cent to $1.282 billion when compared with September, 2006 $1.416 billion and by 3.24 per cent as compared to October, 2005 $1.325 billion.

Imports also fell by 12.74 per cent in October, 2006 to $2.132 billion compared to September, 2006 $2.443 billion and by 8.33 per cent as compared to October, 2005 $2.325 billion.

In rupee terms, exports from Pakistan during October, 2006 amounted to Rs77,688 million as against Rs85,681 million in September, 2006 and Rs79,118 million during October, 2005 showing a decrease of 9.33 per cent over September, 2006 and of 1.81 per cent over October,2005.

Exports during July-October, 2006 totalled Rs335,428 million as against Rs327,002 million during the corresponding period of last year showing an increase of 2.58 per cent.

In terms of US dollars the exports during July-October, 2006 totalled $5.552 billion as against $5.478 billion during the corresponding period of last year showing an increase of 1.34 per cent.

Main commodities of exports during October, 2006 were Knitwear (Rs10,157 million), Bedwear (Rs8,159 million), Cotton cloth (Rs7,506 million), Cotton yarn (Rs6,712), Readymade garments (Rs5,864 million), Rice others (Rs3,073 million), Rice basmati (Rs2,718 million), Towels (Rs2,292 million) Made-up Articles (inc other tex)(Rs1,919 million) and Art, silk & Synthetic textile (Rs1,895 million).

Imports into Pakistan during October, 2006 announced to Rs129,170 million as against Rs147,881 million in September, 2006 and Rs138,846 million during October 2006 showing a decrease of 12.61 per cent over September, 2006 and of 6.97 per cent over October, 2005.

Imports during July-October, 2006 totalled Rs577,588 million as against Rs529,877 million during the corresponding period of last year showing an increase of 9 per cent.

In terms of US dollars the imports during July-October, 2006 totalled $9.560 billion as against $8.877 billion during the corresponding period of last year showing an increase of 7.69 per cent.

Main commodities of imports during October, 2006 were Petroleum crude (Rs17,788 million), Petroleum products (Rs15,926 million), Palm oil (Rs5,140 million), Iron & Steel (Rs5,118 million), Plastic materials (Rs4,791 million), Mobile phone (Rs3,789 million), Gold (Rs2,535 million). Textile machinery (Rs2,370 million), Power generating machinery (Rs2,367 million) and Electrical machinery & apparatus (Rs2,336).