Pakistan Economy - News & Updates - Archive

[Owais]

ADB lends $510 million for renewable energy


MANILA (updated on: December 07, 2006, 13:34 PST): The Asian Development Bank (ADB) said here on Thursday that it is lending Pakistan 510 million dollars to develop renewable energy sources.

This is the first loan of its kind to Pakistan and the first loan under ADB's clean energy and efficiency initiative aimed at expanding more efficient energy operations in ADB member countries.

Pakistan is highly dependent on oil imports and expects to tap coal, oil and gas to meet future needs with renewable energy accounting for only 180 megawatts of Pakistan's power output, the bank said in a statement from its headquarters in the Philippine capital.

However renewable sources hold great potential for Pakistan, the ADB said, citing small and medium hydropower plants as well as wind, solar and biomass power.

"Investment in such renewable energy options would not only be beneficial to the country's energy security, but would boost social equity, lead to a cleaner environment, and make good economic sense," the ADB added.

The first project to be financed by the loan will be a set of small hydropower plants in the Northwest Frontier Province and Punjab. The loan will also expand the country's power supply and improve reliability and quantity of power, the multilateral institution added.

 

[Owais]

Government focussing on trade and economic diplomacy: Prime Minister
ISLAMABAD (December 07 2006): Prime Minister Shaukat Aziz on Wednesday said the government was focusing on trade and economic diplomacy to get better market access abroad and was vigorously pursuing signing of Free Trade Agreements (FTAs) with a number of countries to get level playing field for its products.

Chairing a meeting on Wednesday evening to review the implementation of trade policy initiatives, the Prime Minister said signing of Free Trade Agreement with China was a significant development which would give a boost to our exports to China.

Shaukat said exports were a major mechanism to drive the economy, earn foreign exchange and generate employment and the government was focusing on value addition and increasing productivity and competitiveness of our products to get better market access. He reviewed various incentives given by the government to increase exports and said the Ministry of Commerce should have an aggressive marketing policy and strategy.

The ministry should prioritise building brands and need assessment of the potential clients. It should adopt an industry focused and geography focused approach and should work to leverage the qualitative edge of our products, he added.

The Prime Minister said the liberalised economic policy of the government had increased competitiveness of our products and enabled our exports to grow.

He said Pakistan had a unique advantage in textiles, leather, engineering and agricultural products which should be promoted across the globe. He reviewed transition of Export Promotion Bureau into Trade Development Authority of Pakistan and said the TDAP should be run on professional lines and it should have a focused approach to diversify and increase exports. The authority should explore new markets and identify new products for export. It should focus on trade facilitation, Shaukat added.

The Minister for Commerce explained various initiatives taken by his ministry to increase exports. The Prime Minister appreciated Ministry of Commerce for their initiatives and asked them to redouble their efforts to increase and diversify exports.

The meeting was attended among others by Federal Minister for Commerce Humayum Akhtar Khan, Chief Executive TDAP Tariq Ikram and senior officials.

 

[Owais]

Government's annual utilisation raised to Rs 250 billion

LAHORE (December 07 2006): Chairman, Planning Commission (PC), Dr Akram Sheikh on Wednesday said the government has increased its annual utilisation which is likely to reach to Rs 250 billion during the current fiscal year as compared to Rs 200 of previous year.

Talking to newsmen after addressing the concluding session of International Foundry Congress and Exhibition 2006 organised by Foundry Association of Pakistan, here on Wednesday, Sheikh said work on various development projects is under progress.

Bhasha Dam Work could start in two years and new dams would help get rid of electricity shortage in the country. However, we are trying to explore alternative energy like solar energy and planned to electrify 400 villages under solar energy system, he added.

Over 400 delegates from the industrial sector of Pakistan, including some 50 delegates/exhibitors from India, UK, Germany, Turkey, Iran, China, Japan and Saarc countries participated in the 2-day event.

Similarly, the government is developing roads network in the country and an amount of Rs 25 billion has been made available to National Highway Authority (NHA) for this purpose.

He stressed the need for setting up of common facility centres for the uplift of foundry industry which should establish training centre to impart training to youth so that their need in this regard could be fulfilled, he added.

Razzak Dawood, former federal minister for commerce, asked the foundries to use latest technology and skilled manpower in the industry. Infrastructure development in the engineering sector was crucial for the advancement of foundries.

Appreciating the initiatives taken by the Pakistan Foundry Association (PFA) in organising this moot, he said it had brought all the stakeholders on one platform which will lay strong foundation for the development and growth of foundries in Pakistan.

He further said: "If we want to compete at the highest level we have to improve infrastructure, introduce advanced technology, ensure better facilities and train our skilled and semi-skilled work force."

Sikandar Mustafa Khan, Chairman of the Pakistan Foundry Association (PFA), in his closing remarks said, "The PFA is very happy to realise the success of one of the most ambitious events, undertaken by the PFA, and it is my privilege and honour to thank all the foreign and local delegates to have contributed to the success of the Congress."

Through the day, delegates took part in the technical sessions addressed by experts including Dr P.K. Basutkar, Staffhen Hendricks, Ahson Arshad, Ameer Haider and D.D.Vas.

 

[Owais]

'Rs 50 billion investment expected in livestock'

ISLAMABAD (December 07 2006): The local investors will spend over Rs 50 billion in livestock and meat production business. "The production and processing of milk and meat in the country will show a quantum jump after this investment," Secretary Minfal, Ismail Qureshi told Business Recorder on Wednesday.

Some 30 investors had shown their firm commitment in establishing large farm with capacity of over 5,000 cattle heads, he added. The project would not only bridge demand-supply gap but also make Pakistan exporter of dairy products from 2011, Minfal secretary hoped.

Quoting a World Bank study, Ismail said that the establishment of dairy and meat sector, Pakistan had reached competitive edge in the region. Besides this, Qatar is willing to invest about one billion dollars in cattle fattening and establishing slaughterhouses in Pakistan. Similarly, a milk processing and marketing company, Nestle Pakistan, will invest Rs 24 billion in dairy and corporate farming by importing cattle from Australia.

Export potential of livestock is estimated at $1 to 1.2 billion in 2010 and $1.5 to 2 billion in 2013 against the current exports of $0.868 billion, while fisheries export estimated at $0.5 to 0.7 billion in 2010 and $1 to 1.2 billion in 2013 against the current figure of $0.2 billion.

 

[Owais]

40-member Chinese company team due today: work on two coal-fired power plants to start soon

KARACHI (December 07 2006): A 40-member delegation of a Chinese company is due here on Thursday to conduct the detailed coal geological investigation (DCGI) in Sonda-Jherruk area of Thatta district for setting up two coal-fired power plants, each of 300MW.

Sources told Business Recorder on Wednesday that the delegation of China National Machinery Import and Export Corporation (CMC) would start work on detailed investigation in about a week. Three members of the delegation have already arrived here to determine the possibilities of starting the work at the earliest. The CMC had signed an agreement with Sindh government on November 25 this year to conduct work for setting up these power plants.

The CMC's geological investigation would be completed in three months and later on it would start coal-mining and set up the two power plants. The Chinese company would bear the cost of detailed coal geological investigation.

As is well known, the coal reserves at Sonda-Jherruk are the second largest in Sindh comprising more than seven billion tonnes coal. The area is located at a distance of around 150 km in north-east of Karachi and about 30 km in south-east of Hyderabad, where all required infrastructure has been made provided by the provincial government.

The CMC has to arrange investment and ensure availability of coal deposits on long-term basis like 30-40 years to meet the requirements and establishment of power plants. The project would generate 2,000 to 3,000 jobs for local people, sources added.

 

[Owais]

USAid to continue supporting Fata projects

PESHAWAR (December 07 2006): US Ambassador to Pakistan, Ryan C Crocker has said that more than 50,000 families will benefit from Khushhali Bank programmes in Fata with support from the United States Agency for International Development (USAid).

He expressed these views while addressing a gathering of Khushhali Bank clients and staff here on Wednesday. The US Ambassador congratulated Khushhali Bank on their achievements over the past three years.

He said that creating employment and helping small-scale businesses in Pakistan was an important goal of US. Through micro-finance, USAid is helping provide impetus to sustained economic growth and fight poverty, he added. The US Ambassador specifically encouraged women clients to diligently work for their economic development with Kushhali Bank's participation.

He said that with the assistance of the USAid , the bank had opened 22 branches, including two in Khyber and Kurram agency of FATA, hired nearly 200 loan officers in the field and has disbursed more than 200,000 loans to clients in FATA, Balochistan and Sindh.

 

[Neo]

Kachhi Canal project to be completed by 2010: Qadeer

ISLAMABAD: December 07, 2006: Additional Secretary Planning and Development, Balochistan Sohail Qadeer on Thursday said Kachhi Canal project would irrigate almost 7 lac acres land in the province and would be completed by 2010.

Talking to the state-run TV he said, 22 percent work had been completed on the project, adding different developmental projects are under process in the province which would help alleviate poverty.

He said, a huge development budget had been fixed for Balochistan and importance is being given to improve road network, adding Rs.77 billion had been spent on road network.

Sohail said, besides mega projects in Balochistan focus is also on traditional set-up like agriculture, fisheries, minerals and livestock.

Most development projects signed during the visit of Chinese President Hu Jintao were related to Balochistan, he added.

He said, technical training institutes which would be established for training of women and children would empower women in Balochistan.

As far as minerals explorative from Balochistan was concerned it would provide employment opportunities not only for the locals but people from other provinces would also be adjusted, he added.

 

[Neo]

Pakistan requires more big dams: Wapda

LAHORE: December 07, 2006: Pakistan unavoidably requires construction of more than one mega water reservoirs to cater for the increasing needs of the country in water as well as power sector.

This was stated by Mr. Tariq Hamid, Chairman Wapda while briefing the delegation of Armed Force War Course of National Defence College (NDC) Islamabad, which visited Wapda House here on Thursday.

The Chairman Wapda said Pakistan was fast heading towards a situation of acute water shortage due to rapid growth in population and depleting storage capacity owing to sedimentation, thus, making the construction of mega reservoirs inevitable without further delay.

Tariq Hamid apprised the delegation that, at present, Pakistan has storage capacity of nine per cent of total water available whereas the average storage capacity world-wide stands at about 40 per cent.

He cautioned that Pakistan would be a water-short country like Chad and Ethiopia by the year 2012 if storage capacity was not enhanced considerably. Having cultivable land base of 77 million acres, Pakistan has potential to bring about 22.6 million acres of virgin land under cultivation provided additional water is made available, the Chairman observed.

Talking about the power sector, the Chairman said the annual growth in electricity consumption during the last four years has been recorded as a 9.8 per cent. He shared with the delegation that load on Wapda system increases by 2000 MW of electricity during the peak hours from 6.30 p.m. to 10.30 p.m.

To address problem of possible shortage of electricity in coming years, they have to generate sufficient electricity at affordable rates and that is only possible through construction of big dams, he said.

Referring to the future plans of Wapda, the Chairman said transmission system is being strengthened and improved to bring down system losses to acceptable limits.

He said a number of projects worth Rs 19.6 billion would be completed by this month except Muzaffargarh-Gatti transmission line, which would be operational by December, next year.

The Chairman, making detailed deliberation about the performance of power utility, apprised the delegation that as many as 3778 villages had been electrified, while, 6098 tube wells had also been energised till October 31 during the current fiscal year.

He hoped that most of the targets set for the village electrification for the year 2006-07 would be met. He said all villages comprising of 10 or more households throughout Pakistan except Balochistan would be energised by December 2007 as committed by the President General Pervez Musharraf to the people of Pakistan, however, in Balochistan, the villages would be electrified through alternate resources of energy.

Later, Wapda Chairman Tariq Hamid and the head of the delegation Major General Shahid Iqbal exchanged souvenirs.

Member (Finance) Imtiaz Anjum, Member (Power) Muhammad Anwer Khalid, Member (Water) Muhammad Mushtaq Chaudhary and other Wapda senior officers were also present on the occasion.

 

[Neo]

Pakistan aims to be major pharma exporter: PM

ISLAMABAD: Prime Minister Shaukat Aziz has said that Pakistan is positioning itself as a major exporter of pharmaceutical items and implementing Intellectual Property Rights (IPR) laws to protect all stakeholders, and ensure people get quality medicines at affordable prices.

Talking to Alan P Larson, Senior International Investment Advisor to a US-based law firm and former Under Secretary, Economic Business & Agricultural Affairs at the PM House he said that government has set up Intellectual Property Rights Organization. He said it was an independent regulatory body, fully dedicated to prepare and implement IPR laws in line with the best international practices.

The PM said, in addition to introducing strict laws, Pakistan has also made substantial progress on the enforcement of IPR laws. The enforcement mechanism has been strengthened and the country was gradually moving towards their complete enforcement.

The prime minister said the government was committed to improving healthcare facilities and besides preventive, curative steps was using mass media to create awareness about eradication of Polio, AIDS and Hepatitis.

He said that wide ranging structural reforms introduced during the last seven years, coupled with macroeconomic stability, consistency and continuity of policies have transformed Pakistan into a destination of choice for foreign investors.

Alan P Larson said there was tremendous potential in Pakistan to undertake research in life sciences, which will increase production and export of pharmaceutical goods from Pakistan. He said the US companies were showing keen interest to invest in Pakistan, which would make availability of high quality drugs at affordable prices.

Larson said Pakistan has a tremendous potential in the pharmaceutical industry and appreciated pursuing of innovative methods in various disciplines of life sciences.

He said a number of US pharmaceutical companies were planning to outsource research and development projects and production of pharmaceutical to countries, offering suitable conditions.

 

[Neo]

Thursday, December 07, 2006

Export plan 2006-2013: Major incentives for foreign airlines in the offing

* Cut in landing charges, fuel prices envisaged

By Sajid Chaudhry

ISLAMABAD: The seven-year action plan which has been finalised to enhance the country’s exports, envisages rationalising high-landing charges and fuel prices for the foreign airlines to increase the commercial cargo lifting capacity of the country, a senior official at Planning Commission told Daily Times on Wednesday.

A committee headed by Dr Akram Sheikh, Deputy Chairman Planning Commission has recently finalised the Export Plan for Pakistan 2006-2013 to enhance current exports GDP ratio from 13% to 15% of GDP aiming at increasing exports from $16.5 billion to $43.3 billion by 2013.

Prime Minister Shaukat Aziz taking notice of the drop in the targeted exports of the country had constituted a high level committee in the chairmanship of Dr Akram Sheikh, Deputy Chairman Planning Commission to prepare a plan fore enhancing exports from 13% of the GDP to 15% of the GDP for the medium term in consultation with all stakeholders.

The committee, which finalised the Export Plan for Pakistan 2006-2013, while analysing constraints impeding exports due to cargo handling capacity of the country has included in action plan “capacity to lift cargo be increased by rationalisation of high-landing charges and fuel prices for foreign airlines”. The committee was informed that as less number of airlines is operating, cargo lifted from Pakistan is constrained.

The committee was informed that time involved in completion of various business processes, especially the customs, at the airports is unduly long. The committee recommended that the Pakistan Customs Computerised System (PACCS) may be extended to all airports and all services providers may be networked to function as a single window.

The committee was informed that most of the airports do not have adequate capacity to handle commercial cargo. As an action it was recommended to expand and modernise the commercial cargo terminals of the Karachi, Islamabad and Peshawar Airports.

It was brought to the notice of the committee that airports also lack cargo-scanning facilities and physical examination causes damage and pilferage. The committee in its recommendations for action plan that modern cargo scanning equipments capable of detecting explosives are to be installed for handling of cargo at all international airports.

One of the constraint impeding exports was identified as during peak season of exports of certain commodities like rice, shipping companies each year increases kinnow and mangoes shipping freight. It was included in the action plan that saving on foreign exchange can be achieved through low freight charges by allowing ‘flag of convenience’ to 150 vessels registered by Pakistani expatriates abroad.

The committee also included in the action plan, facilitating the setting up of cold storage facilities near the international airports by private sector to address the issue of losses of perishable commodities before exports.

By implementing action plan 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. Rice exports, which stand at present at $1.11 billion, would be enhanced to $2.5 billion by year 2013. Leather and leather products had fetched $1.09 billion last fiscal year, which would be increased to $2.26 billion. The exports of engineering sector, which at present stand at $0.21 billion, would be enhanced to $2.40 billion.

The fruits and vegetables are projected to be increased from $140 million to $370 million, meat and meat preparations from $20 million to $100 million, fish and fish preparations from $200 million to $990 million, carpets, rugs and tapestry $250 million to $370 million, sports goods from $350 million to $920 million, surgical instruments from $160 million to $420 million, cutlery from $30 million to $110 million, furniture from $10 million to 500 million, pharmaceutical products from 80 million to 290 million, marble and granite from $20 million to 680 million and gems and jewellery $20 million to $690 million and other products including services and defence exports from $2.89 million to $6.32 million.

 

[Neo]

Thursday, December 07, 2006

US firms likely to outsource pharma products’ production

ISLAMABAD: A number of US pharmaceutical companies are planning to outsource research and development projects and production of pharmaceuticals to countries, which offer suitable conditions for these activities.

Alan P. Larson, Senior International Investment Adviser to a US-based law firm and former under secretary of Economic; Business & Agricultural Affairs, said during a meeting with Prime Minister Shaukat Aziz here on Wednesday.

The prime minister said Pakistan is geared to position itself as a major exporter of pharmaceuticals and is pursuing the implementation of Intellectual Property Rights (IPR) laws and protection of patents with the objective to safeguard the rights of all stakeholders, protect investments and to ensure that people get quality drugs on affordable rates.

Mr Aziz said the government has set up the Intellectual Property Rights Organization (IPRO), which is an independently-run regulatory body, fully dedicated to prepare and implement IPR laws in line with the best international practices. He said in addition to introducing strict laws, Pakistan has also made substantial progress on the enforcement of IPR laws. The enforcement mechanism has been strengthened and the country is gradually moving towards complete enforcement of these laws.

The prime minister said the government is committed to improving healthcare facilities for the masses. It has taken preventive and curative steps and is using mass media to eradicate diseases such as polio, AIDS, hepatitis and other such menaces from the country.

He said wide-ranging structural reforms introduced during the last seven years, coupled with macro-economic stability, consistency and continuity of policies, have transformed Pakistan into a destination of choice for foreign investors and during the last financial year the country received a total investment of $3.8 billion which was a record in the country’s history. This year we are expecting an even higher foreign direct investment, he added.

Mr Larson said there is tremendous potential in Pakistan to undertake research in life sciences, which will lead to increase in production and export of pharmaceuticals from Pakistan. He said US companies are showing keen interest in investing in Pakistan, which will result in the availability of high quality drugs at affordable prices.

Talking of the government policies and the progress made in various sectors in Pakistan, he said Pakistan has a tremendous potential in the pharmaceutical industry and appreciated that it is pursuing innovative methods in various disciplines of life sciences.

 

[Neo]

India, Pak agree to increase freight traffic

Thursday, 07 December 2006

New Delhi, Dec 7: In a significant development, India and Pakistan have agreed to increase freight traffic between the two countries.

In a written reply to a question in Lok Sabha, Minister of State for Railways R. Velu said, "Both sides (India and Pakistan) agreed to make efforts to increase the level of interchange of freight traffic." Delegations from both sides met here from October 31 to November 2 to discuss the issue, he said.

"The Indian delegation proposed for starting freight trains via Munnabao-Khokrapar. Pakistan delegation informed that as and when the necessary facilities have been developed, the proposal for opening of Khokrapar route for freight traffic could be discussed and decided," he said.

However, "there is capacity constraint on Pakistan Railway at Wagah," he added.

In reply to another question, Velu informed the house that Indian Railways have tied up with several international railways for co-operation.

"Indian Railways have entered into Memorandum of Understanding (MoU) with railways of Austria, France, Russia, Italy and South Africa in recent past. This has facilitated increased technical co-operation for development of rail related projects," he said in a written reply.

 

[Neo]

Musharraf gives Rs 3.6 billion more for Balochistan uplift

QUETTA (December 08 2006): President General Pervez Musharraf on Thursday announced additional funds for development of Balochistan and vowed to do away with past neglect by developing the province to bring it at par with the developed areas.

"Pakistan because of Balochistan and the development here is the progress of the entire country," he told a large gathering here. He urged the Baloch youth to part ways with those who were against development and progress.

"There is no other 'Lashkar', but only one and that is Pakistan Army, to defend the motherland," the President said, alluding to those made by a few local Sardars. Musharraf asked the people to be the judge and see for themselves the large scale unprecedented development initiated in the province by the government in all sectors.

"My heart beats with my Baloch brethren and you are source of my strength", he said amidst loud applause. Despite the bitter cold, thousands attended the meeting and enthusiastically responded to the announcements made by the President for the people of the province.

Musharraf announced Rs 1 billion for development of Quetta, Rs 100 million each for 28 districts besides Rs 2.5 billion to the parliamentarians for development schemes in their respective constituencies. He announced seven new cadet colleges, two more campuses for Balochistan University at Gwadar and Turbat, 1,000 scholarships for Baloch students enabling them to study in the best schools and professional colleges of the country with free boarding and lodging.

"However, I will urge my young students from Balochistan to focus on their studies, seek higher education and work for their country and the betterment of their families", said the President.

He also announced six new buses for Balochistan University, saying all students who had completed 16 years of education will get a stipend of Rs 10,000 for a year at a government job.

He also announced quota for Baloch students in vocational training institutions besides special training courses for the Baloch youth at Pakistan Ordnance Factories, Aeronautical Complex Kamra, Heavy Industries Taxila, which will later absorb them on regular positions. Musharraf said 1,400 villages will be electrified this year, to be followed by another 2,000 next year and to reach the farthest areas by 2009.

He said electricity from Iran was being supplied to Panjgur, Pasni, Turbat, and Gwadar, while the natural gas supply will also be extended to other areas. He announced gas supply for Urak and Hanna in Quetta and Zhob.

"It is unfortunate that the areas that are a source of natural gas remained bereft in the past. Do not blame me for the past neglects ... I am here to provide you all facilities," the President said. He regretted 50 years of neglect that left country's largest province underdeveloped and vowed to make up for past negligence.

The President, who addressed the gathering after inaugurating a modern Kidney Center and the Overseas Pakistanis Foundation Girls College nearby, said many development projects were in the pipeline.

He said the Subakzai dam will be complete in three months time, whereas he had already inaugurated the Mirani Dam that can meet irrigation needs for 33,000 acres. The work on Rs 40 billion Kachi canal bringing water from Punjab for Balochistan has started on both ends to be completed in 2008.

The President also greeted the people of Balochistan for the re-opening of the Chamalang coal-mines, closed 30 years back after a dispute over ownership between the Luni and the Murri tribes.

These 60-km-long coal mines in Chamalang are considered the world's largest, which produces Rs 300 billion coal. The President said the government was working on providing a comprehensive road network to ensure that development benefits reach every corner of the country.

He said new roads linking Loralai with DG Khan and Zhob with DI Khan were being built, besides progress on the RCD Highway, Indus Highway and Motorway to improve trade links with Iran, Afghanistan and China.

The Gwadar port, he said, will not only serve Pakistan, but also the Middle East, Central Asian states and China. He said Rs 7 billion allocated for safe drinking water, about Rs 2 billion will be provided to Balochistan.

"The rich can always afford the bottled water, but I am working on providing clean water for the poor, who cannot afford costly water," he added.

The President said the Women Protection Act was framed at removing injustices against them and refuted the claim that it was against Islam. "No one in Pakistan can even think of enacting legislation against the Quran or Sunnah," the President said. President General Pervez Musharraf said every village in the rural and remote area of Balochistan will get electricity by the year 2008.

Addressing the public meeting here, the President said 1400 villages will be electrified this year, to be followed by another 2000 next year and announced that electricity will be provided to every village in Balochistan by the year 2008.

He said electricity from Iran was being supplied to Panjgur, Pasni, Turbat and Gwadar to provide power to maximum villages. President General Pervez Musharraf also inaugurated a 50-bed state-of-the-art Workers Welfare Fund Kidney Center.

The first-ever kidney center in Balochistan, constructed on 7.5 acres at a cost of Rs 385 million and having the diagnostic, dialysis, surgical and lab facilities will help the people of this area, as they had to travel to Karachi for treatment.

President Musharraf unveiled the plaque to open the facility. Minister of Labour, Manpower and Oversees Pakistanis, Ghulam Sarwar Khan briefed him about various facilities provided in the kidney center.

Earlier, Balochistan Chief Minister Jam Muhammad Yousaf addressing the public meeting appreciated the efforts and measures taken by President Musharraf for the development of Balochistan.

He said people are grateful to President General Pervez Musharraf for taking special measures for the development of Balochistan, which was ignored in the past. Quetta Nazim Maqbool Ahmad Lehri highlighted the development projects being initiated by the local government for the welfare of the people.

The public meeting was attended by a large number of people from Quetta and its adjoining areas particularly a large number of women belonging to different walks of life.

 

[Neo]

Trade deficit estimate revised to $12.2 billion

ISLAMABAD (December 08 2006): The commerce ministry has revised trade deficit projection to $12.2 billion against the target of $9.4 billion set for the current fiscal year, arguing that restricting imports is neither feasible nor beneficial to the economic health of the country, official sources told Business Recorder here on Thursday.

"If the trend of October follows in the remaining period, the total import in 2006-07 may reach up to $30.3 billion as against the estimates of $28 billion," the sources quoted a commerce ministry report submitted to the Economic Coordination Committee (ECC) of the Cabinet on Wednesday.

The commerce ministry had projected $18.6 billion exports and $28 billion import for the current fiscal year, however, the decline in exports during the first quarter not only disturbed the commerce ministry but also the federal government.

It argued that Pakistan's economy is growing at high rate for the last couple of years with 7 percent projection in 2006-07, adding that increase disposable income, demand for imports also increase.

"Our imports consist mainly on machinery, raw material, petroleum products, and food items whose import cannot be curtailed without impacting economic growth and prices. These imports are essential for sustaining economic activities and stabilisation of prices by augmenting supply position," the sources quoted the commerce ministry as justifying growth in imports.

Comparison on month-to-month basis shows that imports of $2.132 billion in October are 8.3 percent lower than imports of $2.325 billion in the corresponding period last year. The ECC has also directed the commerce ministry and newly constituted Trade Development Authority of Pakistan (TDAP) to submit a report on the causes of less growth in exports.

Sources said the commerce ministry is not ready to take the responsibility of decline in exports and it took very strong position in the ECC meeting, saying that as the country is following a liberal trade regime in line with the World Trade Organisation (WTO) system, imports are affected by the overall economic policies of the country, including fiscal, monetary, and exchange rate policies.

"Fiscal, monetary and exchange rate policies are formulated by the finance ministry and the State Bank of Pakistan (SBP) keeping in view the overall economic position of the country and the commerce ministry has no control on these decisions," the sources quoted the ministry as saying.

Sources also said the commerce ministry has taken a sigh of relief, after it was informed by the Central Board of Revenue (CBR) that exports have touched $1.320 billion in November, showing 15 percent plus growth against the corresponding period last year.

 

[Neo]

Pakistan pursuing intra-region trade policies: minister

ISLAMABAD (December 08 2006): Minister of State for Commerce, Hamid Yar Hiraj has said that Pakistan is proactively pursuing intra-region trade policies to prosper the people. Addressing the South Asia Trade and Investment Forum in London, he urged the European countries to invest in South Asian countries where investment policies were very attractive and labour was very cheap for the industry.

The forum, which is the first of its kind outside the South Asian region, was jointly organised by the Saarc Chamber of Commerce and Industry (SCCI) and the Commonwealth Business Council (CBC). The forum was attended by leading government officials and businessmen from the South Asian region and Europe.

The objective of the forum was to bring together the business and government leaders from South Asia to create and expand business and investment opportunities and build relations between South Asia and Europe, which has become as important as ever for creating a new stage of dynamic development.

In the welcome address, President of SCCI, Dasho Ugen Tsechup Dorji said that economic investment is too often focused in China and Japan and such investments in Asia should not stop at the South China Sea.

Gareth Thoman, MP Parliamentary Under-Secretary of State UK, said it's a high time for Europe to start rising its investment in South Asia. "South Asian countries are being considered as not only prospective markets but also potential areas for investment," he maintained.

Rohitha Bogollagama, Sri Lankan Minister of Enterprise Development & Investment Promotion, Asad Umar, President and CEO of Engro Chemicals, Muhammad Aurangzeb, Executive Vice President, ABN Amro and M.A. Lodhi, Managing Director of the Karachi Stock Exchange were among prominent speakers at the event.

The forum was a milestone to boost trade and investment opportunities in the South Asian region and create an enabling microeconomic environment that would facilitate trade and investment. Supporting investments in and out of the region will facilitate regional integration into the global economy.