Pakistan Economy - News & Updates - Archive

[Owais]

US to provide $100 mln educational assistance to Pakistan

WASHINGTON: United States would provide Pakistan an additional $100 million as educational assistance for fiscal year 2007. Over $200million have been disbursed in Pakistan as U.S. educational assistance since 2002.

Pakistan and the United States have reaffirmed their commitment to support the educational objectives of Pakistan as part of their substantial and growing bilateral relationship.

After the first session of the Strategic Dialogue on Education the two countries hoped to expand educational opportunities for the people of Pakistan and create new prospects for economic growth and development.

The two countries engaged in wide-ranging and productive discussions regarding teacher training programs; promotion of teacher, student and faculty exchanges; improvement of secondary-level science and math studies; administrative capacity-building, including school infrastructure; vocational/workforce education and training to meet Pakistan's labor needs; public/private sector partnerships; and the establishment of linkages between the higher-education academic and research institutions of the two countries and training of Pakistani academics in US institutions.

Minister of Education Lt. Gen. (Rtd) Javed Ashraf Qazi, and US education secretary Margaret Spelling led the officials of two sides in talks.

 

[Owais]

990 tons kino, fruiter exported to Russia, Ukraine

KARACHI: Pakistan since the advent of kino and fruiter export this month thus far exported 990 tons in 45 containers of kino to Russia and Ukraine.

Exporters told Geo News that the export of kino started this month in the second week.

Chairman Fruit and Vegetable Processors and Exporters Association’s Mateen Siddiqui told Geo News that the kino crop was not fully ripe presently, as it was yellowish and sour in taste, while its exports would rise manifold, the sooner the crop gets ready, he added.

 

[Neo]

Pakistan's economy transforming: Dr Salman

KARACHI (December 01 2006): Adviser to Prime Minister on Finance, Dr Salman Shah has said that Pakistan's economy is growing strongly and since it has been transformed into a market-based economy, companies, particularly well governed companies, are going to be its engine of growth in future.

He was speaking at a seminar on "Corporate Governance Beyond Listed Companies" organised jointly by Center for International Private Enterprise (CIPE), Pakistan Institute of Corporate Governance (PICG) and Institute of Chartered Accountants of Pakistan (ICAP) here on Thursday.

Salman Shah said that the economy was being transformed into market economy run by private sector. "With the collapse of USSR, we have seen progressive growth in Pakistan's economy and it has been recognised as one of the emerging economies in the region after India and China", he added.

He said that in the 21st century, Pakistan's economy would be one of the major economies of the world. "In that sense we have to create environment conducive to achieve our potential". The developed economies of the world are in constant reformation, therefore, we need to continue reform our economy", he added.

The adviser said that the Karachi Stock Market in spite of various shortfalls has output form of emerging markets. "Our growth is exceeding good, private sector is increasing and overall growth will increase in time. We have been able to issue 30 years' bonds in the international market, which no other has done so far".

He said around 54 percent population of the country was under 19 years of age and these youth were the real engine of the country's economy. "We have to utilise this youth manpower effectively". He appreciated this important initiative taken by CIPE jointly with PICG and ICAP and assured them of government's support.

Chris Pierce, CEO, Global Governance Services Limited - an international perspective - Corporate Governance for Non-listed companies, in his keynote speech stressed that a strong business case has to be made in favour of raising corporate governance standards for the success of the initiative. He said that internationally, Corporate Governance codes for listed companies were an established practice and this phenomenon was now expanding to segments other than listed companies.

He said that in Asia, Pakistan was the first country that had embarked upon such an initiative. In his welcome address, Moin Fudda, Country Director, CIPE, said that non-listed sector had tremendous economic importance as compared to about 650 listed companies. There were about 50,000 non-listed companies, a diverse group, with both for-profit and not-profit entities of various legal forms and business size.

Zahid Zaheer, CEO, PICG, explained that there were various reasons for promoting good governance in non-listed companies, including protection of the interest of minority shareholders and other stakeholders, including employees. Razzak Dawood, former federal minister of Commerce was of the view that good corporate governance was a journey not a destination.

 

[Neo]

Fri, Dec. 01, 2006

Pakistan sells oil co. stake for $813M
HANS GREIMEL

ISLAMABAD, Pakistan - The Pakistani government said Friday it has sold a 10 percent stake in the country's biggest oil company, Oil and Gas Development Co., to international investors for $813 million in a deal it said highlighted global confidence in the country.

Some 95 percent of the stake was bought by institutional investors from the United States, Britain, Asia and the Middle East, the country's Privatization Commission said in a release. Pakistani investors bought the remainder.

Oil and Gas Development is the biggest player in Pakistan's oil and gas sector and the largest company, by market value, on the country's Karachi Stock Exchange 100 index.

Its privatization marks a milestone of economic reform in South Asia, where Pakistan and India have deregulated in recent years to transform themselves into darlings of foreign investment. Pakistan's government plans to eventually sell 51 percent of the company.

"The success of this offering sends a strong signal of global institutional investor confidence in Pakistan and bodes well for Pakistan's growing participation in the international capital markets," said Zahid Hamid, Minister for Privatization and Investment. "The Government is committed to maintaining the pace of its privatization program."

Friday's sale follows a 2003 initial public offering of 5 percent of the company's shares on domestic stock exchanges. The government now holds an 85 percent stake in the company.

Islamabad-based Oil and Gas Development, which has Pakistani's largest oil and natural gas reserves, sold 39,130 barrels of oil a day last year and controlled 47 percent of the Pakistani oil market. It held about 23 percent of the country's natural gas market.

The Privatization Commission was formed in 1991 and has completed more than 160 transactions since, selling everything from banks and energy concerns, to newspapers and chemical makers.

Pakistan uses the revenue to retire government debt and fund poverty prevention programs. The reforms have helped spur investor interest in Pakistani companies and have helped put the Karachi 100 index up about 9 percent in the last year.

In January, the government sealed its biggest deal to date under the sweeping reforms, selling a controlling stake in the country's top phone company to a Middle Eastern rival for $2.6 billion.

http://www.contracostatimes.com/mld/cctimes/business/16139506.htm

 

[Neo]

Electronic media attracts Rs5bn investment
Thursday November 30, 2006

ISLAMABAD: The recent developments in Pakistan’s electronic media have created over 80,000 new jobs and attracted an investment of over Rs5 billion during the last three years.

These figures are based on the licences issued by the Pakistan Electronic Media Regulatory Authority (PEMRA) to private enterprises in different sub-sectors of the electronic media.

PEMRA has also estimated an investment of Rs654 million in wireless cable (MMDS), some Rs580 million in direct-to-home technology, Rs154 million in FM radio sector and Rs2.6 billion in satellite TV field.

The teleport facility is likely to fetch an investment of Rs500 million, shows a report of PEMRA for June 2003 to June 2006.The report has, however, not mentioned any details of the increasing control of the private electronic media by the state and the shrinking space for freedom of information. But, it still depicts a very bright picture of the expansion of electronic media in Pakistan.

The investment would potentially give fillip to local production of complementary goods such as cable, digital receivers, dish, stabilizers, encrypted cards, antenna and TV sets. Nobel TV plans to produce 500,000 TV sets per annum while Sony, National and Singer are already assembling TV sets.

The report says that electronic media can serve as “mega employment generation tool”. Presently, the cable television sector is employing some 30,000 people who are the bread-earners of families comprising around 500,000 members. Pakistan Television (PTV) has 6,000 employees on its payroll while Radio Pakistan has manpower of over 3,000.By the end of 2005-06, the fast expanding private electronic media has generated employment for 50,000 to 60,000 people. The radio sector has employed about 1,000 people, while satellite TV generated direct employment for over 4,000 others. The direct-to-home (DTH) technology could potentially accommodate about 200 people and the cable sector around 10,000. The wireless cable (MMDS) has the capacity to generate 1,000 jobs.

At present, the report says, the electronic media is fetching annual advertisement revenue of more than Rs3 billion. The cable television is earning about Rs5 billion through subscriptions every year. With the establishment of new media outlets, the revenues of the electronic media are expected to shoot up to Rs7 billion by 2007. PEMRA is also hopeful that being a highly capital intensive and holding promising employment opportunities, the electronic media could contribute substantially to the country’s economic growth. It expects about Rs6 billion investments in the sector apart from the government’s spending on the state-run electronic media.

The number of existing television viewers of 50 million is increasing by half a million every year, the report claims.

PEMRA is of the view that in the present conditions, the country can easily sustain the establishment of over 230 FM radio stations, at least 12 to 15 satellite TV channels, around 3,000 cable networks, more than 25 MMDS stations and about two DTH operations. In the satellite television sector alone, PEMRA estimates that 36 to 44 channels may become viable until the year 2010.

PEMRA has also issued 86 licenses, in three phases, for establishing FM radio stations in 56 cities.

 

[Neo]

Friday, December 01, 2006

ECNEC meeting approves 24 projects worth Rs 57.1 billion

* Cost of 7 schemes revised from Rs 16.1 billion to Rs 25.5 billion

By Fida Hussain

ISLAMABAD: The Executive Committee of the National Economic Council (ECNEC), which met on Thursday with Prime Minister Shaukat Aziz in the chair, approved 24 new projects costing Rs 57.1 billion and revised the cost of seven schemes from Rs 16.1 billion to Rs 25.5 billion. The new and ongoing projects include a foreign exchange component of Rs 20 billion.

Dr Akram Sheikh Deputy Chairman pf Planning Commission while briefing media persons said that the meeting approved 15 projects of infrastructure valuing Rs 58.9 billion, 12 project of social sector of Rs 17.1 billion and 4 projects of Rs 1.5 billion of other sectors.

Out of the 31 projects, five projects valuing Rs 5.3 billion were approved for Punjab, 4 projects of Rs 19 billion for Sindh, 6 projects of Rs 11 billion for NWFP, 7 projects of Rs 20.5 billion for Balochistan and one project of Rs 2.4 billion for AJK and 8 project of Rs 24.4 billion for all country basis.

He said that federal government would be financing Rs 59 billion for 31 projects approved by ECNEC. However, provincial government would share the cost of the 31 projects by providing funding of Rs 9.2 billion. The sponsoring and executing agencies would also share the cost and NTDC of WAPDA would provide funding of Rs 14.4 billions.

He said the ECNEC meeting approved power transmission enhancement project of Rs 1.26 billion. The project would be initiated in three federating units NWFP, Sindh and Punjab. He said Gwadar would be connected to Central Asian states and with the other cities of Pakistan. To this effect, ECNEC approved a 454-kilometre road of Rs 14.1 billion that will connect Gwadar to Surab, Basima, Nag, Punjgur and Khushab. He said that meeting also approved the land acquisition project for new airport at Gwadar that will cost Rs 1.05 billion. Some 6500 acres of land will be acquired for the airport.

He said that meeting also approved the revised cost of Rs 1.57 billion of Sabakzai dam. The cost of the project has increased by Rs 500 million. The meeting also approved the land acquisition and settlement of the people for Kurum Tangi dam of Rs 2.7 billion.

The meeting approved the most important project RBOD-1 with altered design and revised cost of Rs 14.7 billion. He said that the cost has increased by Rs 8.7 billion mainly because of the increase in interest for the loan acquired for the project. Dr Sheikh said that the meeting also approved the expansion of network for machine Readable Passports within and outside the country to provide passports to maximum Pakistanis. This project will cost Rs 3.562 billion.

The official said ECNEC also approved to electrify 7000 villages in Balochistan that will cost Rs 1.034 billion. The project will be competed in 2 years. ECNEC approved AJK Community Infrastructure & Service Program in the earthquake-affected areas with the cost of Rs 2.4 billion.

Dr Sheikh said that the construction of the new Islamabad airport would be initiated with 6 to 8 weeks. The meeting has also approved another most important project for Sindh Coastal Community Development at the cost of Rs 2.4 billion.

The meeting approved the project to repair 36 GMU-30 Diesel Electric Locomotives that will cost Rs 1.6 billion. He said that government has planned to increase share of transportation goods through railway trains from 5 to 10 percent during 4 years in the total transportation of goods.

The meeting also approved operationalisation of Sheikh Khalifa Bin Zayed Hospital in Quetta at the cost of Rs 497.2 million, 1000 Cuban scholarships for studies in general comprehensive medicines, that will cost Rs 792.6 million, Trade & Transport Facilitation Project-2 of Rs 1.5 billion, Competitive Support Fund of Rs 2.9 billion to provide support fund to SMEs. He said that the meeting also approved the construction of new office building for the Foreign Office in Islamabad. However, he did not give more details in this regard.

 

[Neo]

Friday, December 01, 2006

Textile’s share in exports comes down to 58%

By Tanveer Ahmed

KARACHI: The share of the textile sector in the total exports of the country came down to 58 percent in first four months (July-Oct) of current financial year from 65 percent one year ago.

The conditons in the textile sector on all fronts are indicating a bleak picture since the beginning of current financial year, which has been making the economic managers of the country sleepless, who made huge claims of taking the country’s textile exports to further heights at the time of announcement of budget and trade policy.

During the last financial year, the textile exports accounted for 60 percent in total exports of the country, howerver share slashed to 58 percent in the first four months because of declining trend in textile exports. According to the foreign trade statistics, the textile exports have declined by 9 percent during Jul-Oct of 2006-07 to $3.2b as against $3.5b in the same period of last year.

Out of the thirteen items that constitute textile group, only five could post growth in exports. Cotton Cloth, Bed Wear and Readymade Garments that collectively carry around 50 percent weight in the total textile exports, recorded a decline of 18.5 percent, 19.3 percent and 7.2 percent, respectively. Thus, export of value-added products posted a declining trend.

The more worrisome factor is slowdown in expansion of the textile industry because of poor export performance. The industry, which went for major BMR programme some years back to reap the benefits of post quota regime imported billion dollar textile machinery.

However, in July-Oct 2006-07, the import of textile machinery also saw a considerable reduction of 33 percent compared to same period last year, which is indicative of the fact that industrialists are now more in a mood to invest in further expansion of textile industry at the moment.

According to textile exporters, they do not see any improvement in the country’s textile exports in the coming days and feared that the second quarter’s textile export might be on downward side because of the fast loosing share in international textile markets.

Farhan Aziz, research analyst at Jahangir Siddiuqi Capital Market observed that a decline in exports could create a negative impact on the smaller textile manufacturers, while the larger units, which have strong presence in the foreign markets will not be affected.

Although the EU reduced duties on Pakistani bed-linen products from about 13 percent to 7.5 percent in May 2006, he said, this could not help Pakistani products maintain or improve its exports.

The main cause behind this decline was intensifying competition from exporting countries where manufacturing cost is relatively cheaper when compared to Pakistan. Besides, lesser focus on value-added products also makes Pakistani manufactures uncompetitive in the international markets, Aziz felt. However, a government official said that although, the cost of production has gone up over the years, but the Pakistan textile manufactures did not concentrate on brining improvement in quality and designing of their products, which is also a big reason loosing the export orders.

“The government has given fiscal incentives to the industry, whatever was possible in the shape of textile package and R&D support, however industry should also play its part to introduce innovative designs and improve the quality to attract the foreign buyers,” he added.

 

[Neo]

Friday, December 01, 2006

7% growth achieved in FY 05-06, says Aziz

ISLAMABAD: Prime Minister Shaukat Aziz has said that the overall macro economic situation in the country continues to be robust with every sector of the economy including agriculture, industry, services, trade and investment showing encouraging trends. The prime minister said this while addressing the Executive Committee of the National Economic Council (ECNEC) meeting here Thursday.

The prime minister disclosed to the meeting that the actual numbers show that 7 percent growth was achieved last fiscal year 2005-06. It is pertinent to mention here that at the end of the fiscal year 2005-06, due to the availability of data of 9 to 11 months and based upon the provisional figures, the government had announced a GDP growth of 6.6 percent. The prime minister said that the GDP growth during the current year 2006-07 is expected to be higher than 7.2 percent targeted and range between six to eight percent.

The prime minister said that the high growth exhibited by all sectors of economy during the first quarter of the financial year is a result of the focused approach to development adopted by the government and manifestation of the solid foundation laid for a high growth trajectory for future.

He said that the sound macroeconomic policies, wide-ranging structural reforms, consistency and continuity in policies have transformed Pakistan from a fragile to a resurgent economy. The growth momentum that Pakistan sustained has been underpinned by dynamism in industry, agriculture and services, and the emergence of a new investment cycle supported by strong credit growth.

He said that the share of the industrial and manufacturing sector towards the overall GDP has increased from 18.2% in 2001-2002 to 26% in 2005-06 and 15.5% in 2001-02 to 18.2% in 2005-06 respectively.

The Large-scale manufacturing sector, during the first quarter of the current year fiscal, has shown a double-digit growth, the prime minister added.

 

[A.Rahman]

PSM shows Rs 140 million profit in first quarter

ISLAMABAD (December 02, 2006): Pakistan Steel Mills (PSM) showed a profit of Rs 140 million in the first quarter (July-September) of FY2006-07, which was in line with the set target. PSM's sales and other income totalled Rs 6.033 billion while its expenditures including taxes (Rs75 million) was Rs 5.893 billion.

 

[Owais]

Pakistan 06/07 inflation may slip beyond target: SBP


KARACHI (updated on: December 02, 2006, 13:39 PST): Pakistan may exceed its 6.5 percent inflation target for the 2006/07 fiscal year, as food prices are yet to show a persistent downward trend, the State bank of Pakistan's (SBP) governor Dr. Shamshad Akhtar said on Saturday.

However, the economy's prospects of achieving the 7.0 percent growth target for the fiscal year were promising, Shamshad said at a news conference to unveil the State bank's annual report for the 2005/06 fiscal year.

"While we have been able to curb core inflation, the food prices have as yet not shown a persistent downward trend," said Shamshad. "The inflation rate, perhaps would slip beyond the 6.5 percent target."

Akhtar said that healthy performances from the large-scale manufacturing sector as well as the other sectors of the economy in recent months signalled that the country would be able to achieve the growth target for the year.

On the weakness of the rupee, the governor said the SBP was not tampering with its exchange rate.

"We are not tampering with the exchange rate, it is the reflection of the market forces," she said.

The rupee is hovering at its weakest level for two years after closing at 60.87/89 per dollar on Friday.

 

[Owais]

Speedy completion of hydropower projects ordered: all dams to be constructed by 2015, says Musharraf

ISLAMABAD (December 02 2006): President Pervez Musharraf has directed to speed up the work on the ongoing hydropower projects and ensure their early completion to meet growing demand of fast expanding industrial sector. The President said that the foreign entrepreneurs who intend to set up their industries in Pakistan should be assured supply of energy on sustainable basis.

He stressed the need for timely and efficient completion of these projects for rapid economic growth. He was presiding over a meeting in Rawalpindi on Friday to review the ongoing progress of hydropower projects in the country.

The President was informed that Wapda is undertaking eight power projects, which are expected to be completed by 2012. These projects would help generate additional one thousand one hundred and fifty-five megawatts of electricity, which would help meet country's growing energy demands.

The meeting was also informed that the Mangla Dam Raising at the estimated cost of Rs 62.5 billion would make available 2.8 million acre feet of water and 644 megawatts electricity.

About the Gomal Zam Dam, the meeting was further informed that the project would be completed at an estimated cost of 8.2 billion rupees having storage capacity of 0.89 million acre feet.

President Musharraf said all dams including Kala Bagh, Bhasha, Munda, Gomal Zam and Kuram Tangi would be constructed by 2015 as part of his water vision 2025.

He said if new reservoirs are not constructed now, it would be too late by year 2025, and the country would be facing acute water shortage with serious implications for its economic growth. The President said that the Mangla raising would help provide about 3 million acre feet of water for the benefit of the agriculture and industry.

About recently inaugurated Mirani Dam in Balochistan, the President said that besides cultivating 33,000 acres of barren land and generation of electricity, it would also generate hundred million rupees annually in fisheries sector. He said Subakzai dam, which is nearing completion would be inaugurated next year and would supplement water needs of the province.

The President said that construction of 300-kilometre Kachhi canal from Punjab to Balochistan at a cost of Rs 40 billion would help provide sufficient water for the agriculture of Balochistan. Liaqat Ali Jatoi, Minister for Water and Power, also attended the meeting.

 

[Owais]

Musharraf vows to develop energy resources on fast track


RAWALPINDI (updated on: December 02, 2006, 02:57 PST): President Pervez Musharraf on Friday vowed to develop the energy resources of the country on fast track basis to help meet the needs of the fast expanding industrial sector and sustainable economic development of the country.

He was presiding over a high-level meeting here on Friday to review the on-going hydropower projects in the country.

The president was informed that WAPDA was undertaking eight power projects which are expected to be completed by 2012.

These projects would help generate additional 1,155 megawatts of electricity which would help meet country's growing demands for the fast pace economic development.

The president directed to speed up these projects and ensure their early completion to help meet the growing demands of fast expanding industrial sector.

The president said that the foreign entrepreneurs who intend to set up their industries in Pakistan should be assured supply of energy on sustainable basis.

He stressed the need for timely and efficient completion of these projects for the sustainable economic growth of the country.

The meeting was also informed that the Mangla Dam Raising at the estimated cost of Rs. 62.5 billion would make available 2.8 million acre feet of water and 644 megawatts electricity.

About the Gomal Zam Dam, the meeting was further informed that the project would be completed at an estimated cost of Rs. 8.2 billion, having storage capacity of 1.89 million acre feet.

The president said all dams including Kala Bagh, Bhasha, Munda, Gomal Zam and Kurram Tangi would be constructed by 2015 as part of his water vision 2025.

He said if new reservoirs are not constructed now, it would be too late by year 2025, and the country would be facing acute water shortage with serious implications for its economic growth.

The president said that the Mangla raising would help provide about three million acre feet of water for the benefit of the agriculture and industry.

About recently inaugurated Mirani Dam in Balochistan, the president said that besides cultivating 33,000 acres of barren land and generation of electricity, it would also generate hundred million rupees annually in fisheries sector.

He said Subakzai dam which is nearing completion would be inaugurated next year and would supplement water needs of the province.

The president said that construction of 300 kilometre long Kachhi canal from Punjab to Balochistan at a cost of Rs 40 billion would help provide sufficient water for the agriculture of Balochistan.

 

[Owais]

Pakistan determined to deny MFN status to India

ISLAMABAD (December 02 2006): Pakistan is determined to deny Most Favoured Nation (MFN) status to India even after signing of the agreement on promotion and protection of investments at the South Asian Association of Regional Countries (Saarc).

Informed sources in the Board of Investment (BoI) told Business Recorder here on Friday that India had sought MFN treatment under article 4 of the Saarc draft agreement which means all previous bilateral or multilateral investment agreements would read into this pact.

However, Pakistan had contended that MFN should operate prospectively and proposed to exclude from the operation of the article, all bilateral/ multilateral investment agreements signed prior to this agreement, the sources added.

The sources said, Privatisation and Investment Division had sought the comments of Prime Minister Secretariat and Attorney General of Pakistan on the article 4 and establishment of SAARC Arbitration Council, who raised concerns over the increasing role of India.

Attorney General of Pakistan, Makhdoom Ali Khan was of the view that such a clause would only be useful, if the MFN clause is excluded for executing earlier agreements, adding that in the absence of such a decision article 4 should not be a deal breaker. He further argued that if subsequent BITs and MIAs continue to have open-ended MFN clauses, they would be read into this agreement.

"MFN clauses in this agreement, would, therefore require the same extended meaning and scope which article 4 seeks to deny. Nothing of substance would therefore be achieved by curtailing the scope of article 4 without simultaneously reaching a decision in principle that all future BITs. MIAs and the MFN clause is to have restricted scope," the sources quoted the Attorney General as saying, in written comments before the signing of agreement.

The sources said Prime Minister secretariat had directed Pakistani delegation at the 13th SAARC Summit held in Dhaka to ensure that there is no reference or inclusion of MFN clause. Even if article 4 was adopted as suggested by Pakistan, this would not necessarily protect Pakistan's interests vis-à-vis India which was the only country seeking MFN treatment.

According to sources, SAARC Arbitration Council, which has been recently cleared by the federal cabinet would provide a legal framework for fair and efficient settlement of commercial and investment disputes in the region through conciliation and arbitration.

The council would also promote national and international arbitration institution, besides providing fair, inexpensive and expeditious arbitration in the region. The council would act as a coordinating agency in the SAARC dispute resolution and assist in the enforcement of arbitral awards.

The council would be administered by a Director General, to be posted for three-year tenure on the principle of alphabetical rotation from amongst the SAARC member countries. He would work under supervision of the governing board comprising a member nominated by each member state. However, location of the council has been left open for decision by the SAARC Council of Ministers.

The rules of SAARC regional centres in respect of administrative and financial matters would apply mutatis mutandis to the council.

 

[Owais]

External liabilities swell to $37.72 billion

ISLAMABAD (December 02 2006): Pakistan's external liabilities - external debt plus foreign exchange liabilities-totalled $37.72 billion at the end of September 2006, indicating an increase of $459 million over June 30, 2006's liabilities of $37.26 billion, the State Bank of Pakistan (SBP) reported on Friday.

Of the total liabilities, the external debt has surged by $517 million to $36.196 billion at the end of September of 2005-06, against $35.68 billion recorded at the end of June 2006. While, the foreign exchange liabilities declined to $1.528 billion as compared to $1.586 billion recorded at the end June 2006.

It is pertinent to note that during the last four years, the country's public and publicly guaranteed debt has been on the rise reveals the SBP data. On June 30, 2005, it was $31.084 billion and at the end of the same month of 2006 it increased to $32.603 billion. And now, after three months at the end of September 2006, the publicly guaranteed debt further inched up to $33.153 billion.

In public and publicly guaranteed debt, the medium and long-term debt (more than one year) during the period under review augmented by $490 million to $32.897 billion as it was $32.407 billion at the end of June 2006. According to the break-up of the medium and long-term debt, the multilateral debt by end-September, 2006 grew by $462 million to $16.989 billion and bilateral debt up by $82 million to $929 million compared to June 2006 when these stood at $16.527 billion and $847 million, respectively.

 

[Owais]

Pak-Jordan FTA talks soon

AMMAN (December 02 2006): Jordan and Pakistan have agreed to start negotiations early next year for signing a free trade agreement (FTA) between the two countries. Secretary General, Ministry of Industry and Trade, Muntasser Oqlah made the announcement at the opening of a "Made in Pakistan" exhibition in Amman, The Gulf Today reported on Friday.

The exhibition is organised by Expo Jordan and the embassy of Pakistan, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Trade Development Authority of Pakistan.

Some 80 Pakistani exhibitors are showcasing their goods and services to Jordanian buyers. These include cereals and textiles, pharmaceutical goods and agricultural machinery. Exhibitors emphasised that apart from finished products, raw materials are available for import from Pakistan for processing and exporting from Jordan.

Pakistani officials said they considered Jordan as a springboard for further investments within the Middle East and the exhibition gives Pakistani producers the opportunity to interact with the Jordanian market. Pakistan and Jordan already enjoy a healthy economic relationship and both sides have said that they were seeking more business partnerships.