Pakistan Economy - News & Updates - Archive

[Owais]

US encourages Sino-Pak ties


WASHINGTON (updated on: November 28, 2006, 16:14 PST): The US has said that it encourages the development of bilateral relations between Pakistan and China and does not see anything 'new' in any nuclear defence treaties that may have been signed during the recent visit of the Chinese President Hu Jintao to Islamabad.

"We encourage development of bilateral relations between Pakistan and its neighbours. China and Pakistan have a long history of relations.

As for any, sort of, nuclear angle on this, I'm not aware of anything new that was announced or is allowed for by these agreements other than what was already grandfathered in by the Nuclear Suppliers Group. So I don't think there's anything new on that front," the State Department Spokesman Sean McCormack told reporters.

Noting that China is a growing power, he said, "we would ask that China play a constructive role in the international community. It is developing economically, diplomatically, politically, militarily."

"China is going to be an important power on the international scene for some time to come. And we would hope that as it develops and as it defines its future role on the international stage that it plays a constructive role," he said.

During his visit to Pakistan, Chinese President Hu Jintao held talks with his Pakistani counterpart Pervez Musharraf and agreed to continue to enrich the contents of bilateral strategic and co-operative partnership by expanding practical and reciprocal co-operation in various fields.

Hu made a five-point proposal for the further growth of bilateral relations and the two sides signed a number of co-operative documents including an agreement on free trade.

 

[Owais]

Pak, Germany sign euro 48.973 million deal of bilateral develop cooperation


ISLAMABAD (updated on: November 28, 2006, 17:45 PST): Germany has committed financial grant assistance of euro 48.973 million included euro 34 million fresh commitment and euro 14.973 million reprogrammed in the context of Pak-German bilateral development co-operation.

In this connection, an agreement on Financial Co-operation was concluded between the two governments on Tuesday. Secretary Economic Affairs Division Khalid Saeed signed the agreement on behalf of Pakistan while Dr. Gunter Mulack, Ambassador Germany signed the agreement on behalf of German government.

While speaking at the occasion, the Secretary Economic Affairs Division said that according to this agreement the newly committed financial assistance of euro 34 million offered by Germany would be used for the projects in the earthquake affected areas.

He said that about euro 13 million would be utilised for the reconstruction of health infrastructure in Azad Jammu and Kashmir, euro 14 million for the reconstruction of Rural housing and related infrastructure in NWFP and euro 7 million to control HIV/Aids, Blood safety.

He said that the reprogrammed amount of euro 14.973 million has been proposed to be used for the construction of Grid Station Ghazi Road to the tune of euro 1.29 million, euro 6.80 million to be spent for the reconstruction of health infrastructure in Azad Jammu and Kashmir and euro 6.88 million would be spent on medium sized hydropower Stations.

He thanked Germany for providing euro 48.973 million assistance to Pakistan and said that the bilateral relations between the two countries would further improve in near future.

German Ambassador Dr. Gunter Mulack said that both countries enjoyed deep brotherly relations, which were growing and strengthening with the passage of time.

He said that the fresh financial assistance would improve basic infrastructure in earthquake-hit areas.

 

[Owais]

Rs two billion uplift package for Swabi announced

PESHAWAR (November 28 2006): NWFP Chief Minister Akram Khan Durrani has announced two billion rupees package for Swabi during his daylong visit of the district on Saturday, Education Minister Maulana Fazal Ali Haqqani said.

Maulana Haqqani, flanked by Muttahida Majlis-i-Amal (MMA) provincial general secretary, Mushtaq Ahmad Khan, was talking to journalists at Peshawar Press Club (PPC) here on Monday.

The large-scale developmental schemes, announced by the chief minister, would help remove the sense of deprivation of the backward district of the province, he said. Maulana Haqqani and Mushtaq Ahmad Khan, belong to Swabi district. Haqqani is district Amir of JUI-F while Khan is provincial general secretary of Jamaat-i-Islami (JI).

The developmental schemes, including the construction of 50-kilometer Jehangira-Swabi Road and 25-kilometer Adina-Lahor Road would cost Rs 920 million and Rs280 million respectively.

The chief minister also announced various projects of the similar nature besides approving the establishment of colleges, schools and rural health centres (RHCs) in different towns and villages of the district.

The minister said that the chief minister had also laid the foundation stone of Fazal Ali Model School, in which the students would be taught Oxford institution curriculum at nominal tuition fee.

The school to be established on 200 kanal of land with the cost of Rs150 million, Haqqani said.

Furthermore, he said the chief minister had also pledged the removal of hurdles in the revival of the sick industrial units of Gadoon Amazai Industrial Estate.

The provincial government would give 25 percent subsidy in the electricity tariff for the industrial units of the zone. Terming the initiation of development schools as a comprehensive uplift package for the district, he said it would bring a revolution in the life of people of Swabi. They said that love and appreciation expressed by the people of Swabi show that the candidates of the religio-political alliance would sweep the next general elections in the district.

 

[Owais]

Pakistan, India reject consultant's Iran gas price


NEW DELHI (updated on: November 28, 2006, 19:17 PST): Pakistan and India have rejected a consultant's suggested price for buying Iranian gas which the energy-hungry Asian neighbours hope to have delivered through a proposed $7-billion pipeline, India said on Tuesday.

U.K.-based consultant Gaffney Cline & Associates was appointed by the three countries in September after they failed to agree on a rate acceptable to all.

"The price worked out by the consultant, which was based on certain parameters given by Iran, was not acceptable to India and Pakistan," Oil Minister Murli Deora said in a parliamentary reply.

No details were available but Deora said Gaffney had been given revised data and asked to work out a new formula.

In August, Iran had offered a price linked to dated Brent crude that equated to about $8 per million British thermal units (mmBtu), while New Delhi wants to pay about $4.25 per mmBtu.

Iran has the second-largest natural gas reserves in the world behind Russia -- about 940 trillion cubic feet -- while growing Asian economies, including Pakistan and India, are scrambling to find energy sources to feed industrial expansion.

 

[Owais]

MCC for joint ventures with Pakistani businessmen

KARACHI (November 28 2006): Manchester Chamber of Commerce (MCC) is interested in promoting trade and joint ventures with Pakistani businessmen. Peter Thompson, International Trade Advisor of (MCC) stated this at a meeting with President and members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), here on Monday.

Thompson said that the delegation of his chamber visited in Pakistan with open mind to learn about prospects of doing business. He said that Manchester City, which was once a centre of textile industry in the UK was not left with textile distribution companies as the manufacturing industries had been relocated. Earlier, Chaudhry Muhammad Saeed, President FPCCI said that Pakistan attached great importance to the UK in view of the fact that the country was the fourth largest trade partner and second largest investor in Pakistan.

"About 85 UK-based companies were operating in Pakistan and their contribution to our GDP is estimated at 2.5 percent while the annual inflow of remittances from the UK ranged from $300 to $400 million," he said. He said that according to an estimate the Pak businessmen and workforce abroad accumulatively possessed around $45 billion.-PR

 

[Owais]

ADB-aided Sindh road safety plan launched

KARACHI (November 28 2006): Road Sector Development Directorate (RSDD), Sindh Works and Services Department and Sindh Education Foundation on Monday launched Pakistan's first Road Safety Education Programme for the province with a cost 236 million dollar funded by Asian Development Bank (ADB).

The programme aims at educating children, assisting teachers and community members and informing pedestrians and other road users on the essentials of road safety.

231 million dollar will be spent on construction of 164km provincial highways and 1200km farm to market roads while 5 million dollar will be used for reform and safety awareness programmes.

Sindh Minister for Mines and Mineral Development Irfanullah Khan Marwat was the chief guest at the launching ceremony held here. Sindh Minister for Works and Services Pir Sadruddin Shah Rashdi, Sindh Minister for Women Development Dr Saeeda Malik, Sindh Chief Secretary Fazal-ur-Rehman, MD Sindh Education Foundation Professor Anita Ghulam Ali, Advisor to Sindh Chief Minister Fatima Surria Bajya, Executive District Officers (EDOs) and teachers from all over the province were also present.

Marwat appreciated the participation of ADB in this programme and said the government was also committed to move forward and take initiatives for safety of masses. He also lauded the efforts of RSDD and Sindh Education Foundation and assured all possible support in this regard. Professor Anita Ghulam Ali, Ajaz Ali Khan, DG Road Sector Development Directorate and others also spoke on the occasion.

Due to lake of road safety education, road accidents were a major and growing cause of death and injury to children in developing countries like Pakistan, they noted. They urged educational institutes to create awareness and start teaching their students about road safety as our young one were less aware of the potential hazards around. They also stressed on parents to play their role in guiding their children on the proper usage of roads.

 

[Owais]

Pak-US free trade talks in last phase of completion: Shah

KARACHI: Advisor to Prime Minister on Finance Dr Salman Shah said Pak-US talks on free trade are in last phase of reaching an agreement.

Talking to Geo news Monday, he said Pakistan was holding free trade talks with the United States after sign the same agreement with China, adding that progress in this respect is expected soon.

Shah said progress was underway on establishment of reconstructing opputunity zones in under-developed areas of Pakistan, adding that contruction of such zonez would be started after sighting green-signal from the US Congress.

He said privatisation process would be made faster while efforts to increase foreign direct investment were also being made

 

[Neo]

Basha, Kalabagh, Akhori dam projects referred to Ecnec: CDWP endorses 21 projects of Rs 11.793 billion

ISLAMABAD (November 28 2006): While endorsing 21 projects, costing Rs 11,793. 528 million, the central development working party (CDWP) on Monday cleared Diamer (Basha), Kalabagh and Akhori dams' concept, and referred these projects to the Executive Committee of National Economic Council (Ecnec) for approval.

The concept clearance by CDWP was a prerequisite to seek funds from international donors for these projects. Chaired by Planning Commission Deputy Chairman Dr Akram Shaikh, the meeting was attended by senior officials of concerned ministries/divisions.

Sources said that the CDWP agreed that President Pervez Musharraf's announcement regarding water reservoirs projects and in its follow-up Cabinet decision would be implemented. Sources said the dams' projects would be presented to Ecnec along with the report of the committee on dams, due some time in December.

The list of projects recommended to Ecnec for approval, with project-wise cost, comprised Diamer-Basha dam project (Rs 390709.00 million)/foreign component (Rs 177840.00 million); Kalabagh dam (Rs 370502.00 million)/(Rs 170186.00 million); Akhori dam (Rs 266140.00)/ (Rs 85063 million); land acquisition for Rawalpindi bypass (Rs 1377.00 million); rehabilitation and reconstruction of damaged section of N highway spanning over 175 Km in earthquake affected area AJK (Rs 5960.00 million; Diamer Basha dam project-detailed engineering design and preparation of tender documents etc (Rs 1677.424); Chashma hydropower project (184MW) (Rs 21082.002 million); medical rehabilitation of disabled in the earthquake affected districts (Rs 740.00 million); national maternal new-born & child health programme (MNCH) (Rs 19994.871 million)/ (Rs 12404.871 million); preparatory analytical work for Punjab large cities (DPL) project (Rs 60.00 million)/ (Rs 45.00 million); water supply and sanitation sector project phase-II, (Rs 6000.00 million)/ (Rs 210.00 million); and construction of south west waste water treatment plant, Lahore, (Rs 8501.00 million) (Rs 7259.00 million).

It deferred five projects and asked the concerned ministries/divisions to submit them after including complete information. The projects which were deferred included triclien to Attaahk irrigation scheme at Mulkoh district Chitral (Revised) (Rs 462.60 million); establishment of Pak-China friendship centre in Islamabad, (Rs 650.60 million) (Rs 600.00 million); construction of third & fourth floor at Collectorate of Sales Tax, Sales Tax House Karachi, (Rs 63.277 million); construction of 64 apartments for customs officers at FL-13, Clifton Karachi, (Rs 338.80 million); and construction of various facilities at Expo Centre, Karachi-phase-II, (Rs 2536.18 million).

The projects, which the CDWP approved included: enhancement of training capabilities of Construction Machinery Training Institute (CMTI), Islamabad-phase-IV, (Rs 348.966 million); and construction of steel bridges in FATA (Rs 390.00 million).

It also approved installation of additional gas turbines at GTPS Shahdara, Lahore (Rs 188.00 million); detailed engineering & tender documents for Basho hydel power project (Rs 90.243 million).

It also approved construction of office complex for office of the Chief Engineering Advisor/Chairman, Federal Flood Commission in Islamabad (Rs 84.972 million); community water storage Irrigated agriculture development sector project (Rs 33.75 million); enhancement of institutional reimbursement cost (IRC)-position paper, technical institute for construction trade, Mandra, (Rs 78.061 million); construction of 12 No apartments in ministers' enclave Islamabad, (Rs 143.105 million); construction of headquarters Pakistan Rangers Punjab at Ghazi road, Lahore, Rs (69.40 million); construction of eastern & expansion of southern sewage treatment plant, (Rs 915.300 million); and construction of sewage pumping station at Tulsi Das APWA school & Hali road Hyderabad, ( Rs 444.500 million).

Other projects which were approved included: purchase and installation of five 1.5 Tesla MRI scanners in Lady Reading Hospital Peshawar, Mufti Mehmood Hospital, D I Khan, Khalifa Gul Nawaz Medical Complex Bannu, Ayub Teaching Hospital Abbottabad, and Saudi Group of Hospitals, Swat (Position Paper) (Rs 530.00 million); National Talent Scholarship Scheme (NTSS) Phase-I (2007-08), (Rs 310.00 million); establishment of Cadet College at Kohlu (President directive) (Rs 218.754 million); reconstruction & extensive education renovation of buildings of the Abbottabad Public School damaged due to earthquake on October 8, 2005 (P.M directive) (Rs 90.00 million); research for agricultural development program (Rs 3630.98 million)/ (Rs 1094.00 million); establishment of facilitation unit for participatory vegetable seed and nursery production program (Rs 574.825 million)/ (Rs 77.00 million); establishment of land revenue records management system in rural areas of ICT, Islamabad, (Rs 88.653 million); institutional strengthening and capacity building of officers of government of Punjab, (Rs 180.00 million)/ (Rs 120.00 million); up-gradation/extension of Pinstech lab, phase-II, (Revised PC-I) (Rs 2522.19 million); establishment of department of robotics and artificial intelligence at College of E & ME, NUST (Rs 395.306 million)/ (Rs 128.880 million); construction of new buildings for faculty of veterinary sciences at PARC University of Agriculture, Faisalabad, (Rs 200.00 million); strengthening/upgradation of the Institute of Food Science & Technology into National Institute of Food Science & Technology, University of Agriculture, Faisalabad (Rs 197.916 million); and provision of on-line lectures and video conferencing facilities for universities, HEC and allied government bodies (Rs 141.951 million).

 

[Neo]

No clearance for Kalabagh, two other dams: CDWP approves 23 projects

ISLAMABAD, Nov 27: The government has decided to defer three mega dam projects -- Kalabagh, Akhori and Diamer-Bhasha -- owing to opposition from smaller provinces.

The projects with a total cost of Rs1.027 trillion ($17 billion) were put up before a meeting of the central development working party (CDWP) for concept clearance here on Monday to start formal discussions with lenders for foreign funding arrangements.

The meeting, presided over by Planning Commission Deputy Chairman Dr Akram Sheikh, however, approved Rs1.677 billion, including foreign aid of Rs98 million, for detailed engineering design and preparation of tender documents of the Diamer-Bhasha dam project.

The meeting also approved 23 projects costing Rs74 billion.

Representatives of the Sindh government said that an assessment committee had been constituted by the CDWP in the last meeting to submit a comprehensive report covering six key aspects of the three dams and concept clearance could not be taken up at this stage.

They proposed that concept clearance be delayed so that provinces could give their input to the committee and then findings of the committee could be considered at the CDWP level.

A participant of the meeting told Dawn that representatives of the NWFP and Balochistan supported the Sindh’s stance.

The CDWP also agreed to refer the financing arrangement to the assessment committee led by Water and Power Secretary Ashfaq Mehmood. The committee which was earlier given the deadline of Nov 30 will hold its first meeting on Dec 4.

The committee was earlier required to cover five aspects -- environmental impact, land acquisition process, construction priority, funding and implementation strategy of the three dams, which are part of the five dams President Musharraf planned to construct before 2016. Now, the funding arrangements and procedure would also be looked into by the same committee.

It was, however, not clear why the Water and Power Ministry forwarded the three projects for concept clearance when its secretary was yet to hold the first meeting of the committee on the assessment of five vital aspects of the three dams. The committee comprised representatives from all the four provinces.

Planning Commission’s Joint Secretary Shahnawaz Husain told reporters after the meeting that the Planning Commission did not have powers to stop discussion on any project.

The Water and Power Ministry had presented a total cost of Rs1.027 trillion for the three projects, including a foreign exchange component of Rs433 billion ($7.22 billion). The cost of Diamer-Bhasha, Kalabagh and Akhori dams had been estimated at $6.51 billion, $6.2 billion and $4.44 billion, respectively.

In all, 34 projects with an estimated cost of Rs1.107 trillion were on the CDWP’s agenda. Of them, 11 projects costing Rs1.033 trillion were either deferred or withdrawn.

The CDWP approved or cleared for approval by the Executive Committee of the National Economic Council (ECNEC) 23 projects at a total cost of Rs74 billion. This included the enhanced cost of 184mw Chashma Hydropower Project at Rs21.1 billion that had been completed many years ago.

The CDWP also approved Rs5.96 billion for rehabilitation of 175 kilometre national highway damaged by the October 8 quake in the Azad Kashmir. It would be undertaken by the Earthquake Rehabilitation and Reconstruction Authority (ERRA).

Another important project approved at the meeting included Rs20 billion maternal, newborn and child health national programme.

http://www.dawn.com/2006/11/28/top1.htm

 

[Neo]

Pakistan may drive up global wheat prices

With stocks towering above 0.45m tonnes, Pak exports will be affecting international commodity exchanges

By Imran Ayub

KARACHI: The world sees Pakistan instrumental in driving up international wheat prices, as it stands among only three wheat-producing countries across the globe having surplus stocks of more than half a million tonnes from last year crop.

A latest assessment made by the US Department of Agriculture suggests Pakistan along with Argentina and Ukraine would be the major player in the international commodity market to determine 2006-07 prices.

Pakistan’s wheat output is up 450,000 tonnes to 500,000 tonnes and this record production could result in exports to nearby markets, the USDA said in its report.

Argentina’s wheat production was down by one million tonnes to 9.5 million due to decline in wheat cultivation area as previously expected that would cut exportable supplies, the report assessed, but it appeared firm that the South American country could still capitalise on the approaching opportunity.

Similarly, the USDA said, Ukraine was another country which had potential to fetch good amount on wheat export during 2006-07, as it had the largest-ever stock of the commodity. “Ukraine (wheat output) is up 500,000 tonnes to 1.5 million due to higher estimated production. Exports are still expected to be only about a quarter of last year’s level,” added the report.

Meanwhile in Pakistan, the international interest has further lifted hopes of the authorities, which are already considering allowing commercial export of surplus wheat rather than executing operations only through the state-run Trading Corporation of Pakistan (TCP).

Officials said the federal Ministry of Food, Agriculture and Livestock has proposed to Ministries of Finance and Commerce to design a strategy, which could allow commercial traders to have some share in wheat exports.

“As it appears, we are very much confident that the commercial traders would also get an opportunity for wheat export, if it is allowed,” said a senior official at the agriculture ministry, who asked not to be named.

“Initially, there was an understanding that wheat should be exported only through TCP but we think commercial exports can fetch better prices with increased market access.” He said the commercial export of wheat would not restrict the state-run commodity trading agency to conduct such an operation, but it would extend scope of better prices of the commodity.

High ups of agriculture and commerce ministries last month gave a hint to resume wheat export after a gap of over two years, amid fears that rising stocks from a good harvest this year could dent domestic prices.

However, the authorities announced that it would not take any decision, until the finance ministry gave a nod to begin the wheat export after analysing domestic needs and its impact on local markets.

“The ECC (Economic Coordination Committee) of the cabinet has already removed 15 per cent regulatory duty on export of wheat in order to consume surplus stocks in the country,” said an official at the commerce ministry.

He said the concerned authorities were convinced with huge carryover stocks, the government would be in an odd position when it entered the next season and could face problems in procurement of the commodity due to higher handling cost.

Pakistan enjoyed 1.75 million tonnes wheat export during 2002-03 on better demand from Middle East and African region before the government put the ban on the commodity shipments.

 

[Neo]

Tuesday, November 28, 2006

$43.3b exports by 2013 planned

* Export Plan for Pakistan 2006-2013 finalised

By Sajid Chaudhry

ISLAMABAD: The Planning Commission has finalised the draft of the Export Plan for Pakistan 2006-2013 to enhance the current exports GDP ratio from 13 percent to 15 percent of GDP aiming at increasing exports from $16.5 billion to $43.3 billion by 2013, a senior official at the Commission told Daily Times.

Prime Minister Shaukat Aziz, during the Trade Policy 2006-07 preparation meeting, had constituted a high level committee in the chairmanship of Dr Akram Sheikh, Deputy Chairman Planning Commission, to prepare a plan fore enhancing the exports from 13 percent of the GDP to 15 percent for the medium term in consultation with all the stakeholders.

It has been estimated that at present GDP stands at $128.90 billion with export to GDP ration of 13 percent, which will be growing and is expected to reach at $288.70 billion with exports to GDP ration of 15 percent by year 2013, the official added. The exports are to be enhanced with Annual Compound Growth Rate (ACGR) percentages under the Export Plan for Pakistan 2006-2013.

The textile and garment sector’s exports are projected to be increased from $9.98 billion in the fiscal year 2006 to $24.36 billion by fiscal year 2013 with ACGR 14 percent per annum. The rice exports, which stand at present at $1.11 billion, would be enhanced to $2.5 billion by year 2013 with annual ACGR of 12 percent.

The leather and leather products had fetched $1.09 billion last fiscal year, which would be increased to $2.26 billion with an annual ACGR of 11 percent. The exports of engineering sector, which at present stand at $0.21 billion, would be enhanced to $2.40 billion with ACGR of 42 percent by year 2013.

Similarly the fruits and vegetables exports will enhance from $140 million to $370 million with ACGR of 15 percent, meat and meat preparations from $20 million to $100 million with 26 percent ACGR, fish and fish preparations from $200 million to $990 million with 26 percent ACGR, carpets, rugs and tapestry $250 million to $370 million with 6 percent ACGR, sports goods from $350 million to $920 million with ACGR of 15 percent, surgical instruments from $160 million to $420 million with 15 percent ACGR, cutlery from $30 million to $110 million with 20 percent ACGR, furniture from $10 million to 500 million with annual growth rate of 75 percent, pharmaceutical products from 80 million to 290 million with growth rate of 20 percent, marble and granite from $20 million to 680 million with growth rate of 66 percent and gems and jewellery $20 million to $690 million with 12 percent ACGR and other products including services and defence exports from $2.89 million to $6.32 million with 12 percent ACGR.

The Planning Commission has identified the factors, which are impeding country’s exports and has suggested many measures to remove all the bottlenecks in the way of enhancing exports at desired level in this Export Plan for Pakistan. Country’s exports share in the international trade, which is declining by each year, has irked the economic managers to prepare a medium term export development plan to bridge the increasing gap between exports and imports.

The Export Plan for Pakistan 2006-2013 is circulated among the economic ministries and divisions for obtaining final views and input to finalise it for formal approval and implementation. It is expected that Economic Coordination Committee of the Cabinet will consider and approve Export Plan for Pakistan 2006-2013 in near future.

http://www.dailytimes.com.pk/default.asp?page=2006\11\28\story_28-11-2006_pg5_1

 

[Neo]

India-Pak trade can cross USD six billion: report

Wednesday November 29, 2006

New Delhi: Trade between India and Pakistan can increase to a phenomenal level of 6.6 billion dollars if barriers are removed and the neighbouring country implements the South Asia Free Trade Area (SAFTA) agreement, an ICRIER report has said.
India's exports increased by 157 per cent to 428.1 million dollars and imports by 143 per cent to 82.1 million dollars in the first quarter of 2006-07 as against the corresponding period last year, according to official figures, reports PTI.

Trade between the two nations is very small as compared to trade between India and its other large partners in South Asia," Indian Council for Research on International Economic Relations said in a report on 'India-Pakistan trade'.

On the other hand, informal trade through a third country is estimated to be in the range of two billion dollars, the report said.With several regions integrating further through the Free Trade Agreements (FTAs), it is imperative for the South Asian countries to enhance the pace of their liberalisation," it added.In a larger context, South Asia is the least integrated region compared to other regions, namely East Asia, Europe and Central Asia, Latin America, Middle East, North Africa and Sub-Sahara Africa.

Regional liberalisation within Asia indicates that SAFTA would ultimately lead to integration with a larger community within the continent through BIMSTEC and ASEAN, the paper said.

However, success of SAFTA in turn would depend on trade relations between India and Pakistan.

http://www.paktribune.com/news/index.shtml?161509

 

[Owais]

Sunday may be working day at ports

ISLAMABAD (November 29 2006): In a major move to facilitate importers/ exporters, the government is likely to announce Sunday as 'working day' at ports from December 15, for 24x7 working hours clearance of trade consignments.

Sources told Business Recorder on Tuesday that the Ministry of Ports and Shipping and the Central Board of Revenue (CBR) have agreed, in principle, to declare Sunday as 'working day', and have started preparations for implementation of the plan. Banks, terminal operators, bonded carriers and shipping agents may be approached to finalise the arrangements.

In this regard, Ports and Shipping Ministry officials have sent their views to CBR for necessary action. The ministry said that ports were already working 24 hours a day. However, clearance of goods depends upon availability of bank and customs officials; otherwise, practically, ports have no role to play.

It was pointed out that ports do not issue delivery orders on Sundays, and labour is also not available on ports, and, if found, they charge extra for working on a holiday.

The officials of Karachi Port Trust (KPT) were of the view that customs staff was not available on Sundays for examinations, and bank staff is also on weekly off.

Keeping in view the observations made by concerned departments, the CBR has decided that it was necessary that Sunday should be made a working day according to business needs of the people.

All relevant officials, departments, banks and organisations working at ports would have to be informed to make arrangements for availability of their relevant staff, the CBR said. It was further decided that the issue of labour availability would be taken care of by KPT and terminal operators. The CBR will co-ordinate and inform all concerned organisations, including banks, customs, Minfal, terminal operators, bonded carriers, shipping agents etc for implementation of this decision.

 

[Owais]

Islamabad wants to boost trade ties with UK: Prime Minister

ISLAMABAD (November 29 2006): Underlining the importance of the longstanding diplomatic, political and economic linkages between Pakistan and the UK, Prime Minister Shaukat Aziz has said that Pakistan desires to further strengthen the economic and trade relationship between the two countries through greater interaction between the private and public sectors of the two countries.

He was talking to Ian McCartney, UK Minister for Trade, who called on him on Tuesday along with a 10-member delegation comprising representatives of London Stock Exchange, financial institutions and senior government officials.

Expansion of economic relations between Pakistan and UK, reform agenda of the government, and the issue of better market access for Pakistan's products in the markets of European Union came under discussion.

The Prime Minister said that Pakistan is an emerging market with a vast potential for growth, rising consumer spending and robust industrial development. The recent listing of Muslim Commercial Bank (MCB) at the London Stock Exchange and the forthcoming listing of Oil and Gas Development Company (OGDC) was a clear evidence of international acceptance of stability in Pakistan's industrial and financial sectors, he added.

The Prime Minister said that as a result of the far-reaching reforms introduced by the government in every facet of life, Pakistan has been transformed into a country having high growth. The reforms introduced for de-regulation of the economy, transparent privatisation, creation of a business-friendly environment, rationalisation of taxes and tariffs and transparency in government transactions have restored the confidence of investors and Pakistan received record foreign direct investment during last year.

He said that Pakistan has made significant progress on the issue of intellectual property rights (IPR). A dedicated organisation has been set up to deal with the issue in a focused manner and is dealing with violations in a tough manner.

Shaukat said that Pakistan is moving fast on the reform path to prepare itself to face the challenges posed by globalisation. He said that the government is working on increasing absorptive capacity, and the training of civil servants is one of the steps in that direction.

The Prime Minister said that one of the basic paradigm shifts in the country was a clear distinction in the role of Ministries and regulators. While policy formulation is the responsibility of the Ministries, regulators have been provided the independence to deal with implementation part.

He said Pakistan that desires to initiate talks on Free Trade Agreement (FTA) with European Union, and added that, being an open economy, Pakistan is in a position to enter into such agreements and implement them effectively. He asked UK to extend it support to Pakistan in this regard.

McCartney said banks and financial institutions of UK find the investment climate in Pakistan very conducive and a number of them are planning to expand their operations in Pakistan.

He said that private sector companies are keen to invest in Pakistan in healthcare, financial and oil and gas sectors through joint ventures with Pakistani companies and on public-private partnership basis.

He appreciated Pakistan for passing women protection bill and said that the legislation would go a long way in providing justice and security to women.

McCartney appreciated the role played by Pakistani community in the development of UK. The British MPs of Pakistani origin are doing their job actively and enthusiastically, he added.

Sir Thomas Harris, Vice Chairman of Standard-Chartered Bank, said that British financial institutions are watching with great appreciation the economic transformation of Pakistan. He said the expansion in their operations in Pakistan, by a number of foreign banks, is an expression of their confidence in Pakistan's economic and banking sectors.

The meeting was attended, among others, by Minister for Commerce Humayun Akhtar, UK High Commissioner in Pakistan, Sir Mark Lyall Grant, and senior officials.

PRIVATISATION: McCartney also called on Privatisation Minister Zahid Hamid on Tuesday.

During the meeting Zahid said that Oil and Gas Development Company's (OGDC) global depository receipts (GDRs) is scheduled for December 6 for listing at London Stock Exchange (LSE).

The privatisation minister briefed the UK delegation about Pakistan's privatisation policy and said the investors could invest in any sector and have 100 percent foreign equity and remittance of capital, profits, royalty, technical and franchise fee and zero-rated import of raw material for export manufacturing.

He said that under the privatisation programme major upcoming transactions were PPL, PSO, SSGC, SNGPL, JPC, Fesco, Pesco, HEC, PSMC, PMTF, etc. The minister also briefed the UK delegation regarding the investment opportunities at Gwadar sea port and its Industrial Estate.

McCartney said that British business and trade delegations were intending to visit Pakistan to find areas for investment.

He said UK eyes investing in Pakistan's healthcare, oil & gas, power and other sectors. He informed the minister that a delegation of Britain's business groups led by Lord Mayor of London would visit Pakistan in February 2007

 

[Owais]

World Bank offers technical assistance to draft new ATTA

ISLAMABAD (November 29 2006): The World Bank (WB) has offered technical assistance to the Central Board of Revenue (CBR) and the commerce ministry for drafting new Afghan Transit Trade Agreement (ATTA), enabling both the sides to exchange data electronically through the Pakistan Customs Computerised System (PACCS).

Sources told Business Recorder on Tuesday the CBR, the commerce ministry, the Word Bank, and other stakeholders recently held a meeting to finalise the methodology for speedy revision of the ATTA.

It has been decided that the government would present new draft of the ATTA to the Afghan government by January 31, 2007 and a new trade mechanism for the Central Asian states would soon be finalised by the CBR and the commerce ministry.

According to sources, the World Bank was of the view that the ATTA needs to be updated/revised and the commerce ministry should take the initiative without any further delay. The World Bank will provide technical assistance for preparation of the revised ATTA.

It was agreed that draft ATTA would focus on full container-load traffic for transit purposes with least interference in the country of transit as per international best practices, sources said.

During the meeting, the commerce ministry opined that it was decided in the last joint ministerial committee (JMC) that the Afghan government will send the draft ATTA for changes, but no such draft has been sent to Pakistan yet.

However, the CBR chairman clarified that it is not the Afghan government, but the Pakistani side to take the lead on this issue, which has been time and again discussed at all forums. It was decided that the commerce ministry should put up a draft agreement at the earliest and send it to Afghan government for comments.

Sources said the Afghan government officials visited the PACCS at Karachi and were ready to exchange data electronically. The Afghan customs operations are already at an advance stage of computerisation using Esecuda software.

The CBR chief said the preparation, finalisation, and co-ordination of the new draft ATTA is the responsibility of the commerce ministry. Tax authorities directed the Customs Wing to put up the requisite proposals for the new draft and after approval send it urgently to the commerce ministry. The ministry would prepare and finalise the draft ATTA and send it to the Afghan government for comments by January 31, 2007, sources added.