Pakistan Economy - News & Updates - Archive

[Owais]

$830.2 million external debt retired in first quarter

ISLAMABAD (December 06 2006): Pakistan has retired $830.2 million external debt and liabilities during the first three months of this current fiscal year which stood at $37.724 billion at the end September 2006, the central bank reported on Tuesday.

More importantly, during July-September 2006, the government also retired $10 million principal debt and $5 million in the shape of interest on the total debt ($1.478 billion) of the International Monetary Fund (IMF).

During the period under review, Pakistan's external liabilities - external debt plus foreign exchange liabilities - totalled $37.724 billion. Of this, the external debt amounted to $36.196 billion.

According to the central bank's provisional data released on Friday, the country's public and publicly-guaranteed debt (comprising medium and long-term and short-term debt) has been on the rise for the last four years. And now during the period, the bank said that the country has repaid $568.9 million principal amount and $261.2 million interest on these liabilities and loans of multilateral and bilateral donors.

Of this, the medium and long-term debt (longer than one year) of $32.897 billion, the government refunded $454 million ($258 million principal and $196 million interest). Of the multilateral debt, which amounted to $16.989 billion, the government repaid $262.2 million ($180.8 million principal and $81.5 million interest). Of the Paris Club, $12.818 billion debt, the government repaid the principal amount of $34.2 million and $12.5 million interest. Euro bond/Saindak bonds stood at $1.906 billion, of this $1.5 million was repaid as principal and $74 million in interest.

Other bilateral debt, which stood at $929 million, $3 million was repaid in principal and $18.4 million in interest. On commercial loans/credit of $165 million only $2.8 million was repaid as interest on the loan without any principal amount.

During the period, military debt stood at $90 million. However, the government repaid $38.5 million in principal amount and $6.8 million in interest.

The short-term loans (less than one-year) mostly taken from Islamic Development Bank (IDB) stood at $256 million, of which the government repaid $163 million principal and $3 million interest. The private non-guaranteed debts (more than one-year) during the period stood at $1.565 billion. Its $80 million principal amount was repaid, besides $19 million interest.

The foreign exchange liabilities, excluding foreign exchange bearer certificates, foreign currency bearer certificates, and dollar bearer certificates (which stand at $6 million), was $1.528 billion and during the period under study, the bank retired $92 million in the shape of principal and interest.

 

[Owais]

Korea to establish steel coil centre at Karachi

KARACHI (December 06 2006): A joint venture agreement was signed here between Najin Steel (Korea), Super Tech Auto Parts Limited, Karachi, and the consortium of Aftab Technologies (Pvt) Limited, Pakistan, and Cottage Foods Limited of UK to establish a steel coil centre in Karachi, which would be the first centre of its kind in Pakistan to produce steel coils.

The Consul General of South Korea, Sukehul Chang, witnessed the ceremony as chief guest of Najin Pakistan (Pvt) Ltd at a local hotel. The Consul-General in his address appreciated the painstaking efforts of the related companies to the launch of Najin Pakistan (Pvt) Ltd which would help meet the growing demand of steel products in Pakistan. He said that this joint venture between Pakistan and Korean companies was the second after Jin Kwang JAZ Ltd set up in 2004 to produce auto parts.

According to statistics, Korean steel products worth $89 million were exported in 2004, and this sharply decreased in 2005 to $54 million. He expressed confidence that this joint venture would pave the way for a tangible development in production of steel coils in Pakistan.

Aftab Group Chairman Aftab Ashraf Khan said that the basic concept of the agreement was to act as a premier institution focused on steel customers, recognised for superior and high standard of quality products with innovative approach and attractive return to all concerned.

 

[Owais]

$800 million uplift projects announced under KMCDP

KARACHI (December 06 2006): City Nazim Syed Mustafa Kamal on Tuesday announced that various mega uplift projects worth $800 under the Karachi Mega City Development Projects (KMCDP) would be undertaken by March-April 2007.

He was chairing a high-level meeting at his office which was attended by the representatives of Asian Development Bank, stakeholders, KESC, DHA, PTCL, SSGC, EDOs, chairmen Karachi Port Trust, and Port Qasim Authority, chief controllers of Karachi Building Control Authority (KBCA), and representatives of other civic departments.

Kamal invited proposals and suggestions from all the stakeholders for the master plan before forwarding it to the City Council for approval by the end of December.

The Asian Development Bank (ADB) would provide $800 million for the mega development projects in the city, the Nazim told.

The ADB had also sent consultants for water, sewerage and solid waste management programmes in order to speed up construction pace of work, he added.

Kamal said the CDGK was endeavouring to make arrangements for kicking off uplift projects simultaneously in parts of the city to develop it on modern lines besides, facilitating the general public.

He regretted that the city of 1.8 million people had no facilities of toll free complaint number to respond public on time, but steps being taken to resolve their problems as the CDGK would set up call centers at the estimated cost of Rs 130 million.

 

[Owais]

Rs 400 million fund for free financial assistance to improve SMEs

FAISALABAD (December 06 2006): Small and Medium Enterprises Business Support Fund will provide Rs 400 million free financial assistance to improve the competitiveness of SMEs in the country up to June 2009, with the cooperation of Asian Development Bank. Ministry of finance launched the fund.

This was disclosed by Chief Executive Officer of SME Business Support Fund, David Monkman, here on Tuesday, while addressing the members of Faisalabad Chamber of Commerce and Industry. He said that this free financial assistance will not only enhance the revenue generating capacity of the industrial sector, but also help in IT skill and foreign consultancy.

Ali Sarfraz, Chief Operating Officer of SME Business Support Fund said that Pakistan Government has embarked on a major programme to assist in the further development of Small and Medium sized Enterprises (SMEs). As an integral part of the overall programme, and in support of other components, the BSF has been created with the support of the Asian Development Bank to assist both SMEs and the respective providers of business development services (BDS), he added.

He mentioned that the objectives of the BSF are to assist in the improvement of the competitiveness of SMEs and to enhance the revenue-generating capacity and profitability of emerging businesses. The BSF can provide matching grants to stimulate the use of business support services.

Ali Sarfraz said that the target group comprises of established SMEs (employing up to 250 staff or with a maximum turnover of Rs 300 million) with an operating history of at least three years. BSF can support individual enterprises or a group of enterprises.

The BSF is 'sector neutral', but is selective about working with partners (SMEs) prepared for growth, he added. Talking about the Eligible Activities for the Support, Ali Sarfraz stated that only new engagements of business services could qualify for funding. BSF can support activities such as: Short-term consultancies for management, marketing, production, productivity, product development and adaptation, packaging, quality, standards, technology transfer or upgradation. Market development, research, trade fair activities, sales missions abroad, benchmarking, promotion and similar demand driven support services and others as approved by the BSF management team in line with overall objectives, he pointed out.

Ali Sarfraz clarified that the Funds are not available for capital goods or working capital. Presenting welcome address, Sheikh Abdul Qayum vice president, FCCI said that the present government has undertaken mega projects of value addition city and textile city under the supervision of FIEDMC. This step would go a long way in further boosting up of Textile industry in Faisalabad area. Former President FCCI Sheikh Niaz Ahmad, Seth Iftekhar Ahmad, Muzamal Sultan and others also addressed the seminar.

 

[Owais]

'Chiniot can become world class furniture-making centre'

LAHORE (December 06 2006): Chiniot has the potential to become a world class furniture manufacturing centre, Dario Corbetta, head of the Italian Furniture Manufacturing Association (ACIMAL) said here on Tuesday.

Talking to mediamen after visiting Pakistan's five major furniture clusters, Corbetta said Chiniot could prosper and develop into a furniture manufacturing centre of world repute if the cluster was to incorporate better working conditions, quality workmanship, specialised and hand-held machinery and especially contemporary design.

Corbetta currently visiting Pakistan to explore avenues of collaboration as well as possibility of setting up a woodworking institute in Pakistan similar to the one set up in the Indian city of Bangalore.

Corbetta's visit comes in the wake of a benchmarking study tour to Italy by a 15-member Furniture SWOG (Strategy Working Group) delegation comprising furniture manufacturers from Chiniot, Gujrat, Lahore, Karachi, Peshawar, Rawalpindi, Faisalabad and Gujranwala.

 

[Owais]

'Pakistan and Sri Lanka can accelerate tourism industry'

KARACHI (December 06 2006): Pakistan and Sri Lanka have enormous opportunities to accelerate their tourism industry as both countries have rich and diverse heritage. M Haniffa Ishak, chairman, Sri Lanka Convention Bureau, Ministry of Tourism, stated this at a special program "Meet in Sri Lanka" here on Tuesday.

Pakistan has several attractive places for Sri Lankans, he said, adding that a number of Sri Lankans realise after a long time that a place of Buddha exists in Taxila, Pakistan.

He said that 11,000 Pakistanis visited Sri Lanka in 2005 and the number would increase this year. Ishak said that bilateral ties between both the countries were growing and after signing FTA they would able to increase trade volume. He said that Sri Lanka had become Asia's latest venue for meeting, incentive, convention and exhibition (MICE) travel.

On the occasion, the Sri Lanka Airlines country manager said that airlines had marked a strategic gateway between Europe, the Middle East, Central Asia, and the Far East. "The Sri Lanka Airlines flies to 30 destinations in 20 countries and offers convenient connections to Australasia and the Americans," he said.

 

[Owais]

Rolls-Royce plans expansion in 2007

LAHORE (December 06 2006): Representatives from the eight Rolls-Royce dealerships across the Middle East have attended an event held in Manama from 25th to 27th November to plan the principle activities of 2007.

It was hosted by Graemo Grieve, Rolls-Royce's world-wide sales and marketing director, Axel Obermuller, managing director for the Middle East and Khalid Rashid Al Zayani, chairman of Alzayani investments the mother company of the Bahranian Rolls-Royce importer Euro Motors.

General managers and sales managers from the dealerships in Bahrain, Kuwait, Oman, Pakistan, Qatar, Saudi Arabia and the UAE discussed plans for the year 2007 and preparations for the launch of the new convertible model.

This new car is closely based on 100EX, the one-off experimented two-door, four-seat convertible, first seen in 2004. It will be unveiled early in 2007 and launched in the Middle East later in the year.

"Advanced orders for the convertible are significant", said Obermuller, "and preparing our business for its arrival is vital to ensure the best possible service for our customers. As part of our business development we have recently opened a new showroom in Lahore, Pakistan, and will soon open another in Oman". The Rolls-Royce Phantom remains the best-selling super luxury car in the world, with sales in 2005 at a 15-year high.-PR

 

[Owais]

OGDCL listing on London Stock Exchange
LONDON: Oil and Gas Development Company will become the second Pakistani company to been listed at the London Stock Exchange here on Wednesday after the company raised its Global Depositary Receipts (GDR) to US $ 712 million.

Muslim Commercial Bank was the first Pakistani bank to be enlisted at LSE in October after attracting US $700 million worth of demand for its US $ 150 million GDR issue.

Minister for Privatization & Investment Mr. Zahid Hamid and Pakistan High Commissioner to UK Dr. Maleeha Lodhi will attend ceremony for the listing and trading of OGDCL at London Stock Exchange

The event will also be attended by Najam Hyder, OGDCL Executive Director for Corporate Affairs, Cirspin Osbourne, Managing Director, Citigroup, John Vaske, Managing Director, Goldman Sachs Farrukh Khan, CEO, BMA, Steffan Williams, Managing Director, Capital MS&L

The sale of government's 8.8 per cent (376.79 millionshares) stake in OGDC raised US $ 712 million last month.

According to the analysts, this is a welcome development that a Pakistani company has been able to raise such a large amount in the international capital markets after a long time and does indicate confidence of the international investment community in Pakistan’s economic prospects as well as about OGDC’s future.

 

[Neo]

KHI-Quetta road network still severed

HUB: December 06, 2006: The rain-hit Karachi-Quetta RCD Highway and Karachi-Gawadar Makran Coastal Highway (MCH) portions could not be repaired even after a lapse of four days.

While the hundreds of trapped passengers including women and children were languishing in extreme anxiety and anguish near Bela on RCD Highway and near the Hangol River Bridge on MCH, as by now they have completely exhausted their food and drink stocks and left in dire strait.

Qalat Scout, Awaran Scout and Makran Scout contingents were working for the restoration of roads besides providing food and beverage to the passengers and shifting them to the safe places.

 

[Neo]

AEDB to electrify 400 villages with renewable energy

ISLAMABAD (December 06 2006): Alternate Energy Development Board (AEDB) will provide electricity to about 400 villages through renewable energy costing Rs 14 million. The villages, which were 20 kilometres off from the national grid, would be provided electricity through solar cells.

But windmills or micro-hydel would also be installed in some villages on the Prime Minister's directive, official sources told Business Recorder on Tuesday.

Under the scheme, three hundred villages of Balochistan and one hundred villages of Sindh would only pay Rs 250, which is minimum cost of lighting by kerosene and rest would be bore by the government, they said. The amount, each household will have to deposit with the management of the community organisation for looking after and maintenance of the solar cells, they added.

The Board had floated an idea for electrifying 7600 villages but the government has approved initially 400 villages of Sindh and Balochistan by allocating funds from PSDP. Had Wapda executed this project, it would need Rs one billion but the AEDB will complete the project spending much lower cost in two and half year, sources added.

The AEDB is already executing one village in each province through renewable sources. To a question about availability of equipment, they said that some of them like solar panels and inventors would be imported while the rest would be made locally.

When asked about the scope of project, they said that the AEDB is working to make it popular at community level only focussing those areas, where other sources of energy are too costly. Wapda has identified nearly 40,000 villages in country with estimated budget of Rs 18 billion for electrification.

 

[Neo]

Duplicate post mate
see post # 3107

Thanks for notifying, I've deleted it.

 

[Neo]

Wednesday, December 06, 2006

7-8% growth rate aim of economic policies

LAHORE: Adviser to Prime Minister on Finance Dr Salman Shah on Tuesday said that the objective of the government’s economic policies is to ensure growth rate of seven to eight percent over the foreseeable future to put the country on the path of modernisation, development, international integration and prosperity.

Speaking at the inaugural session of the two-day ‘Pakistan: Growth and Competitiveness Conference’ organised by the LUMS and World Bank here, he said that by maintaining such economic growth they will be able to pull Pakistan out of poverty quagmire and achieve millennium development goals by 2015.

“The economic growth rate of seven to eight percent during the last four years has resulted in substantial reduction in poverty and improvement of standards of living of the people,” he told.

He said that if Pakistan continues to grow at its current rates, the economy would be amongst the top six or seven emerging economies of the 21st century world.

Dr Shah said: “We have the scale and talent to be world class manufacturing and servicing centre of the region.” He said that special attention is being paid to higher education to produce knowledge-based economy.

He said that Pakistan is strategically located in a strong region and “we intend to exploit this competitive advantage.

We are destined to become logistics, trade, tourism, energy and manufacturing hub that connects China, Central Asia, West Asia and the Middle East with India and South Asia.”

 

[Neo]

Wednesday, December 06, 2006

Mega City projects to start by March

KARACHI: Various projects under the umbrella of the Karachi Mega City Development Project (KMCDP) would be started by March and April and will cost approximately US$800 million, said City Nazim Mustafa Kamal during a meeting at his office Tuesday. The project is being funded by the Asian Development Bank (ADB).

KMCDP Coordinator Roshan Ali Khan and Master Plan EDO Iftikhar Qaimkhani briefed the participants about the KMCDP and the master plan.

Kamal asked all stakeholders to submit proposals and suggestions regarding the master plan as soon as possible so that it can be finalized and presented at the city council session at the end of this month for final approval.

He said that the ADB had sent consultants for water and sewerage programmes and solid waste management.

“The City District Government Karachi (CDGK) has set up a local support unit to liaise with the civic administration,” Kamal said. “Moreover, the CDGK is setting up toll-free call centers at an estimated cost of Rs 130 million. Complaints will be forwarded to the department, town or union council office concerned and issues will be addressed promptly,” he said.

Highlighting the importance of the Master Plan, Kamal said, “The present master plan will be finalized after the approval of the city council. According to the law, the city council is responsible for planning in the city.”

Copies of the master plan had been sent to all stakeholders in October, and a majority of them have already sent in their proposals and suggestions, the city nazim said, adding that all civic administrations should understand the importance of the master plan, and prepare reports especially to deal with major issues-especially water, sewerage and storm water drainage.

APP adds: The meeting was also attended by Urban Economist For Social Sectors Division Central and West, Asian Development Bank (ADB) Shane Rosenthal. The ADB consultants for water and sewerage, representatives of all stakeholders, EDOs, Secretary Land Utilization, chairmen Karachi Port Trust (KPT) and Port Qasim Authority (PQA), Chief Building Controller and representatives from katchi abadis, SSGC, PTCL, KESC, DHA, Military Land and Cantonments Karachi Region, Lyari Development Authority (LDA), CAA Karachi, Traffic Police, Mass Transit Cell and KMCDP were also present.

Rain water drained out from Faisal Town: On the directives of Shah Faisal Town Nazim Mohammed Imran, sanitation officials and staff (supervised by UC nazims, naib nazims and councilors) cleared out accumulated rainwater from all roads in the area. Imran directed the Solid Waste Management department to ensure that accumulated rainwater was pumped out, and people were provided with a clean and healthy environment.

He said that immediate action should be taken on public complaints received at the rain emergency center, and a status report should be submitted to him. He further ordered that all potholes be covered and repaired, and that, KWSB officials should rectify leakages in water lines and ensure proper sewerage disposal.

 

[Neo]

Temasek said to be eyeing stake in Pakistan Industrial Credit & Investment

SINGAPORE : Temasek Holdings is buying a stake in Pakistan Industrial Credit and Investment Corp.

That is according to its subsidiary, NIB Bank, in a statement to the Karachi Stock Exchange.

No further details on the deal were given.

Pakistan Industrial Credit and Investment Corp is an insurance and asset management company.

 

[Owais]

Offering amounts to $8 billion: OGDCL GDS fetches $18.90 on London bourse

ISLAMABAD (December 07 2006): The Oil and Gas Development Company Limited (OGDCL), Pakistan's leading oil and gas company, on Wednesday marked the first day of trading of its global depository shares (GDSs) at London Stock Exchange (LSE), according to a message received here from London.

The offering price of GDS was $18.90, with each GDS representing 10 ordinary shares. Based on the offered price, the market capitalisation of OGDCL worked out to approximately $8 billion.

BMA Capital, Citigroup and Goldman Sachs International are the joint lead managers, with Citigroup and Goldman Sachs International as joint global coordinators and bookrunners for the international offering, and BMA Capital as lead manager and bookrunner for domestic offering and joint lead manager for international offering.

Commenting on the secondary offering, Privatisation Minister Zahid Hamid said: "The government's highly successful economic reforms, based on the pillars of privatisation, deregulation and liberalisation, together with policy consistency and continuity, had combined to create a very attractive and conducive investment climate. This had reflected in the success of OGDCL offering and boost for Pakistan's future in the international capital market.

Pakistan's economy was performing well, and foreign direct investment (FDI), including privatisation proceeds, had reached record high levels, he added.