Pakistan Economy - News & Updates - Archive

[Neo]

Russia keen to strengthen trade ties with Pakistan

SIALKOT (December 21 2006): Russian government is making adequate efforts for strengthening bilateral trade relations with Pakistan, said Alexander Karyukin, senior expert of Russian Trade Representative Islamabad.

Addressing Sialkot Chamber of Commerce and Industry (SCCI) members on Wednesday, he said the Russian government had focused extra-ordinary attention on developing export and import business with Pakistan on top priority basis. "As a first step we are here to develop 'Russia-Sialkot' relations pertaining to various trade fields."

Alexander Karyukin informed the house that the Russian government was trying to bring reforms in banking sector in order to resolve problems being faced by the companies doing business with Russia. The visa office of Russian Consulates Karachi and Islamabad would help business community in obtaining visa, he said.

Expressing his confidence, he said that business community of Sialkot would take appropriate step for developing trade ties with Russia. In his address of welcome, SCCI acting president, Dr Sarfraz Bashir urged the Russian businessmen and investors to invest in Sialkot Export Processing Zone (SEPZ) and avail the incentives available for both local and foreign investors.

Dr Bashir said that the supply chain was based in Germany and other European countries and due to this indirect supply line, the importers of the surgical instruments buy these instruments at much higher price while the delivery time also increased, which definitely damages the importers' interests. The SCCI acting president advised the Russian companies to buy these items directly from Sialkot instead of buying the same from Germany or other countries.

http://www.brecorder.com/index.php?id=509957&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Russians love $$$ and today we have many to offer.

Only way breaking thru the Indian defence around Moscow is to enhance trade between the two countries, no one can prevent that from happening.

Russian help in mining, matalurgy and agriculture thru private investments could befit our economy.

 

[Neo]

Thursday, December 21, 2006

Improvement of power transmission, water resources management: ADB to give $1.7b loan for power, water resources sectors

ISLAMABAD: Up to $1.7 billion Asian Development Bank (ADB) financing will support two major programmes in Pakistan: to remove transmission bottlenecks to electricity delivery in the country and to improve the management of water resources and irrigated agriculture in Punjab.

According to an ADB official announcement made here on Wednesday, the financing plan would include $900 million to boost irrigated agriculture’s productivity in Punjab and a programme to remove transmission bottlenecks to power delivery through a multitranche financing facility amounting to $800 million.

The power transmission sector funds will rehabilitate and expand parts of the country’s transmission system to meet the present and anticipated future demand and ensure the system’s continued operation and maintenance.

Excess load on transmission lines at substations is one of the critical factors causing transmission and distribution losses in Pakistan’s power system. At the end of FY2006, more than three quarters of the country’s 500 kilovolt (KV) and 69% of its 220KV transformers were overloaded.

Recognizing these issues, the country’s sole transmission company, the National Transmission and Dispatch Company (NTDC), in coordination with the ministry of water and power, has prepared a Transmission Sector Roadmap for 2007-2016. Through an investment plan estimated at $3.9 billion, this will address the system’s current shortcomings.

The ADB financing will support the NTDC project, planning, design, implementation, operations and monitoring for the duration of the entire programme. All financing from OCR resources will have a 20-year term, including a grace period of three years. Interest is to be determined in accordance with the ADB’s LIBOR-based lending facility. The ADB loan will have a 32-year term, including a grace period of eight years, interest will be charged at 1% per annum during the grace period and 1.5% per annum subsequently. The executing agency for the programme is the NTDC.

According to another announcement of the ADB, to help improve the management of Punjab’s water resources and increase productivity of the province’s irrigated agriculture the ADB will provide through a multitranche financing facility up to $900 million. The programme will meet about a quarter of the estimated total cost of $3.5 billion to upgrade the province’s irrigation and water resources infrastructure to modern standards.

Irrigated agriculture in Punjab accounts for more than a quarter of the province’s gross domestic product output, employs about half of the labour force and uses more than 90% of water resources. However, its service level has been adversely impacted by demographic pressures, new production technologies, climatic changes, cropping patterns, floods, etc. Cropping intensities have also increased significantly since original development of the irrigation systems. In response to these developments, farmers have adapted in various ways, including developing private tubewells, which provide more than half the irrigation water in some areas – but which are using groundwater resources at a higher than desirable rate.

To address such problems, the programme will finance comprehensive rehabilitation and upgrading of Punjab’s irrigation infrastructure, improve strategies and practices for groundwater management and facilitate improved irrigation technology.

Recognizing the sector’s importance to generating higher incomes and growth, the Pakistan government hade asked the ADB to extend financing through a multitranche financing facility of over 10 years that can be converted into separate loans. The first two loans will total $227.8 million – $217.8 million from the ADB’s ordinary capital resources and a one-off $10 million loan from its soft loan instrument, the Asian Development Fund (ADF), to finance the Lower Bari Doab Canal Improvement Project. This project will improve Balloki Barrage and the Lower Bari Doab Canal system that supply irrigation water to more than 700,000 hectares. This initial project will help define the approach and modalities governing subsequent investments.

The Lower Bari Doab Canal system was built before 1917 and has created an important agricultural area serving the markets of Lahore and Multan. The project will increase irrigation water supply and enhance the equity of its distribution, improve infrastructure safety, mitigate flood risks, as well as develop and strengthen water management and irrigated agriculture institutions. Other investments expected to be supported by the facility over the 10 years include rehabilitation and upgrading and institutional reforms for the Pakpattan, Thal, and Sidhnai canal systems and improvements for Sulemanki, Trimmu and Punjnad barrages.

The executing agency for the programme is the Punjab irrigation and power department, which is responsible for operation and maintenance, and management of surface irrigation systems that cover 8.4 million hectares in the province and is part of the largest contiguous irrigation system in the world.

http://www.dailytimes.com.pk/default.asp?page=2006\12\21\story_21-12-2006_pg5_2

 

[Owais]

Huge oil, gas reserves found in FATA, multinationals to explore more: Shah


PESHAWAR (updated on: December 22, 2006, 12:51 PST): The Oil and Gas Development Corporation (OGDC) will start drilling in FATA, while number of multinational companies have shown keen interest in this region for oil, gas and other minerals exploration, an official said here on Friday.

Yaqoob Shah, Director FATA Mineral, told APP that the environment of FATA is suitable for all kinds of minerals adding that huge reservoirs of oil and natural gas have been explored in Khyber agency, North and South Waziristan agencies, Kohat, Peshawar and Bannu.

He said that these reservoirs could be found two kilometres deep inside the earth, adding, that the mineral production from FATA has reached up to 2.4 million tones in the year 2005-06.

He said that Oil and Gas Development Corporation (OGDC) would start drilling in these areas for the exploration of oil and gas reservoirs. He said the foreign oil company, Tullow, has obtained a license for the exploration of the reservoirs of oil and gas in the North Waziristan Agency and Bannu while the oil company of Ireland, MOL, has shown interest in the Khyber agency, Kohat and Peshawar regions.

Yaqoob Shah disclosed that 800 gram per ton reserves of copper has been explored in the tribal areas adding that there are 90 percent chances of the presence of gold in the area, however, he said that no work has been started yet towards that end.

He said that the price of copper in the international market is Rs 7000 per ton adding that the copper export can help earn millions of rupees revenue for the country.

He said that China is the biggest market of copper in the world and according to the experts 2007 can be called the year of copper.

The Director FATA Mineral said that vast reservoirs of marble have been located in the tribal belt.

He said that 80 percent of marble is wasted due to the blasting method in these mines and added that FATA Mineral Directorate is taking measures for installation of Block Cutting Machinery in the mines of marble so as to stop the wastage of this precious asset of the country.

Coal mines have been discovered in Sherai area of Dera Ismail Khan and a joint venture of Pakistan Mineral Development Corporation (PMDC) and FATA Mineral Directorate have already been started there.

The exploration of coal would help stabilising the soaring prices of the commodity. Coal is used in 22 out of 25 cement factories of the country.

He said that exploration and excavation of minerals would usher in a new era of development and prosperity in the tribal areas and would generate new job opportunities.

He informed that Rs. 178.537 million have been earned as revenue from the mineral production of FATA in the last ten years. He added that Rs. 250 million have been earmarked in 2006-07 ADP out of which Rs.86 million would be spent on the ongoing schemes of the mineral sector whereas Rs.164 million will be utilised for the six new schemes.

For the first time in the history of the country, Mine Rescue Safety and Labour Welfare Station in Orakzai Agency have already been established for the safety of the miners.

Similarly, geochemical studies are in hand for establishment of a model quarry for marble in Mohmand Agency for exploitation of marble deposits on scientific methods.

The number of ongoing activities in the mineral sector is 11 and includes strengthening of minerals directorate, exploration & Evaluation of precious stones in Mohmand and Bajaur agencies, investigation and evaluation of Manganese in Bajaur agency, model quarry for marble in Mohmand agency, development of soapstone in Kurram agency, construction of shingle road in Mohmand agency, construction of 20 KMs shingle road in mineral bearing area in Kurram agency, Mines/Rescue/Safety and Labour Welfare Station Bowa Orakzai agency, construction of shingle roads in mineral bearing areas of Orakzai agency, development of coal in Orakzai agency and construction of five kilometre shingle roads in mineral bearing areas of S.W. Agency.

The fresh schemes, he said includes development of infrastructure in mineral bearing areas in FATA, source rock mapping and investigators for hydrocarbon potential in FATA, establishment of mini marble city in Mohmand agency, feasibility study for coal briquetting in Orakzai agency, exploration/estimation & exploitation of coal reserves in tribal areas and exploration and development of copper in North Waziristan Agency.

Copper exists mostly in Mohmand agency, North Waziristan and South Waziristan agencies and its total deposits are estimated at 35 million tones. Marble is found in Bajaur, Mohmand and Khyber Agencies with total reserves of 7000 million tones.

Similarly, proven reserves of Chromite are mostly found in Bajaur, Mohmand and North Waziristan agencies. Likewise, the deposits of Soapstone are mostly found in Kurram agency and have been estimated at 3.6 million tones.

Coal reserves gauged at eight million tones have been explored in Orakzai and Kurram agencies whereas 20.000 million tones reserves of Gypsum are present in Dera Ismail Khan.

The inexhaustible reserves of Limestone have been discovered in Kohat, Peshawar ad Dera Ismail Khan while reserves of Manganese have been found in North Waziristan and Bajaur agencies. Moreover, the estimated reserves of Dolomite, Quartz and Silica Sand have been discovered in Mohmand agency.

 

[Janbaz]

Singapore to run Gwadar port management

ISLAMABAD: Pakistan has decided to give the management control of its upcoming deep-sea port in southwestern Baluchistan province to Port of Singapore from next year, a cabinet minister said Friday.

China, a close strategic and economic ally of Pakistan which has already co-built several projects including two nuclear power stations, has financed around 75 percent of the 250 million dollars it has taken to build the port.

"Today Prime Minister Shaukat Aziz approved a summary to hand over the management of Gwadar port to Port of Singapore," Pakistan's federal ports and shipping minister Babar Ghauri told media.

"We have formed a committee which will negotiate with Port of Singapore and within 15 days the port would be handed over to them," Ghauri said, adding that Arabian Sea port was expected to be in operation in March.

Ghauri declined to give further details about the financial aspects of deal.

Asked why close ally China was not given the management of the port, Ghauri said "China did not apply" for it when international tenders were called.

The News Pakistan.

 

[Owais]

ADB approves $320 million for financial reforms
ISLAMABAD (December 23 2006): The Asian Development Bank (ADB) has approved a $320 million loan and two million dollars technical assistance for 'Improving Access to Financial Services (Phase-I) Programme' to help Pakistan in financial reforms. The programme would support the poor ensuring access to financial services and increase its outreach to rural and remote areas of the country.

Increased access to a range of financial services on a sustainable basis will enable the poor to engage in income generating activities, thereby reducing poverty and vulnerability. The Bank says that though, Pakistan has achieved average economic growth rate of over 7.5 percent for the last three years, yet it has to pursue economic reforms to bring its 24 percent population out of poverty.

During the period of high economic growth, Pakistan had already pursued reforms, which have led to better and more predictable public and private investment environment, job creation and higher incomes, it praised.

Micro-finance in Pakistan has reached fewer than one million people, but the potential market is many times this size, about 20 million people. The sector has improved but still does not touch a vast number of people.

Building a more inclusive financial sector means deepening the quality of the service and expanding the coverage, while at the same time striving for efficiency, says a statement.

"To ensure that growth is inclusive and sustainable, more reforms are needed backed by specific actions targeting those left behind," says Julie Rogers, team leader for the project. Out of total amount, $300 million would come from Bank's Ordinary Capital Resources (OCR) with a 15-year term (including a grace period of three years) and $20 million from its concessional Special Funds resources with a 24-year term (including a grace period of 8 years).

Two million-dollar grant would be financed by Japanese government from their Japan Special Fund to support implementation of strategic measures under the programme.

The goal of the proposed Programme is to assist the government to reduce poverty, build an inclusive financial sector, and promote sustainable economic growth by using technology and applications to lower cost of delivery of financial services and to improve the efficiency of these services.

Private sector participation and innovation in the delivery of products and services will be supported including savings services, transfer remittance services, and products and services that are Shariah (Islamic law) compliant. The Ministry of Finance will execute this two-year programme.

 

[Janbaz]

Cell phone users cross 46m
By Imran Ayub

KARACHI: Cell phone subscribers crossed 46 million figure and officials as well as operators see it touching 50 million mark within next couple of months for the first time ever on continued popularity of the service across the country.

Latest figures compiled by Pakistan Telecommunication Authority suggest cellular phone connections stood at 46.45 million by November 2006, which had crossed 41 million by the end of the first quarter of 2006-07.

“By November 30, 2006 total number of cellular subscribers stood at 46.45 million,” said a PTA official. “It reflects almost a 12 per cent growth in total cellular subscriber base from October 1 to November 30, 2006.”

He said during first five months of the more than 12 million new connections were sold out on the back of comparatively cheaper tariff offers due to rising competition among the cellular service providers.

“So there was over 27 per cent mobile density rate by November 2006,” said the PTA official. “Almost all the four major companies Mobilink, Ufone, Al Warid and Telenor grabbed better market share during the first five months of 2006-07, which also brought different tariff packages for the subscribers.”

The figures gathered by the telecom watchdog, shows by November 2006 Mobilink led the market share with 22.03 million subscribers followed by Ufone, which was serving to 9.6 million people across the country.

With the arrival of UAE-based Al Warid Telecom and Norwegian Telenor both competition and subscriber base grew at much faster pace, as the last year’s entrants attracted 7.3 million and 5.8 million subscribers respectively by the end of November 2006.

The PTA data says by November 2006 Paktel, which offers both AMPS (advanced mobile phone system) and GSM (global system for mobile communications) services enjoyed 1.4 million subscribers and the only AMPS service Instaphone had a share of 0.25 million by November 2006.

The cellular density witnessed phenomenal jump in the last two years as mobile phone grew by staggering 170 per cent during 2005-06, which outnumbered almost six-decade old fixed telephony service by more than 500 per cent in 15-year operations.

Analysts see growth in cellular subscribers in line with expectations, but say the current fiscal the mobile phone service providers may not witness such phenomenal jump in customers’ numbers, which have already reached to a higher level.

“The growth is likely to remain slow in percentage term during 2006-07,” said Anwaar Ahmed Khan, a telecom analyst at Capital One Equities. “The companies may enter into those areas where they have yet to initiate service, which would need network expansion and investment.”

He said a cutthroat competition was expected among the operators during 2006-07, after the mobile number portability (MNP) was implemented by all the six cellular operators across the country.

“The MNP would decide the real market leader,” said Khan. “After the MNP implementation the companies must have to improve their service quality to keep their subscribers intact.”

MNP is a system, which enables a mobile phone subscriber to carry the same number while changing the cellular mobile operator. The project, which requires Rs600 million, was earlier decided to implement in January 2006 but later the deadline was extended to November 2006. The service, however, is not in place yet and no new deadline has been announced.

The News Pakistan.

 

[Neo]

'Pakistan one of 11 topmost emerging economies'

LAHORE (December 22 2006): Governor Punjab Lieutenant-General Khalid Maqbool (Retd) speaking in a conference held under the auspices of Pakistan Institute of Development Economics here on Thursday said that efforts of the Punjab government had geared up the economic development endeavour in the province.

He said economic experts were of unanimous opinion that with efforts being undertaken on the economic portfolios, GDP and GNP envisaged targets of the country would be achieved.

The governor quoting a foreign clipping he read recently said that it quoted a top economic expert terming Pakistan as one of the 11 top most emerging economies.

The governor said that better share to provinces from NFC Award had been also instrumental in boosting up economic activity. He said provincial government had deregulated economy and its good effects were being witnessed now.

He said private-government partnership endeavour at provincial level had resulted in establishment of a number of industrial schemes including that of Sundar.

Appreciating the role of CBR, Khalid said that it was investor friendly and in his opinion he had found that business community was happy with the revenue collection authority efforts.

Referring to towering contribution of Punjab in economy, the governor said that its overall contribution in national economic effort was 58 percent. He said province was contributing 60-percent to agriculture sector effort in the country.

Earlier, former federal minister for privatisation Hafeez Shaikh appreciating devolution programme being undertaken in the country at present said he was strong supporter of that. He termed it as a programme of far reaching consequence.

He disclosed that in 90's, $950 billion privatisation occurred in the world. He stated that economic growth increases with gearing up of effort in education. This effort generates macro economic stability, he added.

Hafeez Shaikh pointing towards importance of structural policies said that viable structural policies and institution building were very vital for economic results. He said in three episodes of development occurring in the country during 60's, 80's and 2000,their period lasted hardly for four to five years.

http://www.brecorder.com/index.php?id=510299&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

CDWP approves Rs 23.2 billion for 20 projects

ISLAMABAD (December 22 2006): The Central Development Working Party (CDWP) on Thursday approved Rs 23.2 billion for 20 development projects, out of which Rs 5.64 billion were sanctioned for construction of two medical towers in Karachi and Islamabad.

Muhammad Asif Sheikh, spokesman of the Planning Commission while briefing reporters after the CDWP meeting said that in Karachi, a 13-storey medical tower would be constructed at JPMC, costing Rs 3.418 billion while the other 14-storey tower to be built at PIMS Islamabad with Rs 2.225 billion.

The other projects in health sector were provision of 64 Slice Helical Scan Angiography equipment at Karachi institute of heart disease worth Rs 120 million and up-gradation of District Hospital Chillas from 100 to 200 beds, costing Rs 200 million.

The CDWP, which met here with deputy chairman planning commission Dr Akram Sheikh in the chair, approved 10-infrastructure projects costing Rs 15.3 billion, seven social sector projects worth Rs 7.2 billion and three others worth Rs 0.7 billion. Out of these 20 projects, two projects pertaining to water and higher education in Balochistan were revised.

These revised projects were extension of Pat Feeder for utilisation of Indus water in Balochistan. Its cost was revised from earlier R 2.2 billion to Rs 4.5 billion due to escalation in prices and increase in command area of the project.

The other project Strengthening and Development of University of Balochistan, Quetta whose cost has revised to Rs 277 million from its earlier Rs 191 million.

Giving area-wise detail Asif said seven projects of Rs 6.9 billion were approved for Punjab. Three projects of Rs 4.0 billion approved for Sindh, one project worth Rs 0.5 billion for NWFP. Three projects of Rs 4.9 billion approved for Balochistan. One project worth Rs 0.2 billion for northern areas, and five projects all over the country approved with an allocation of Rs 6.7 billion.

He said in infrastructure sector the recommended projects include construction of Chaudhry Zahoor Ellahi Shaheed bridge over river chinab at Shahbazpur in district Gujrat with Rs 1.132 billion, amended PC-I/cost estimates for dualisation of Lahore-Kasur Section Khana to Kasur (phase-II) Rs 2.103 billion, amended PC-I/cost estimates for dualisation of Kasur Ganda Road Section (Phase-III) Rs 545.27 million, construction of additional bridge near Salgran on Rawalpindi Murree Kashmir road Rs 35.12 million, construction of dual carriage way Gujrat to salam interchange (motorway) Trough Mandi Bahauddin Rs 2.88 billion and rehabilitation, up-gradation and conversion of 400 coaches with total cost of Rs 3.43 billion.

In the water resources, Trichan to Attahk irrigation scheme at Aulkoh District Chitral worth Rs 429 million was approved including Rs 4.47 billion for extension of Pat Feeder for utilisation of Indus water in Balochistan.

Three projects pertaining to higher education totalling Rs 1.227 billion were as under: Up-gradation and Moderation of existing Laboratories and Libraries at DOW University of Health Sciences, Karachi (Rs 464 million), Up-gradation and strengthening of Quaid-i-Azam University, Islamabad, Phase-II (Rs 485.46 million) and a Rs 277 million project of strengthening and development of University of Balochistan, Quetta, were approved.

In science and technology Rs 712 million two projects ie development and promotion of biogas technology for meeting domestic fuel needs of rural areas and production of Bio-fertiliser (Rs 89 million) and Faculty Development at University of Illinois at Urbana Champaign, USA (Rs 484.38 million) were approved by CDWP.

In industries and commerce one approved project of Rs 138.93 million was construction of boundary wall and site office for Gwadar EPZ. Two projects worth Rs 235.2 million for Okara city approved were; sewerage and drainage scheme for Ssmooth disposal worth Rs 185.16 million and drainage scheme and sewerage system-of Okara city costing Rs 50.02 million.

http://www.brecorder.com/index.php?id=510217&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

Rs 1 billion to be spent on HMC's restructuring

ISLAMABAD (December 23 2006): Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen said that Ministry would spend Rs1 billion on restructuring of Heavy Mechanical Complex (HMC).

Addressing a gathering of management and workers at HMC, Taxila on Friday, he said,the Ministry is working on its restructuring for the last one month and a comprehensive plan would be ready within 3 months. He said that Government has excluded HMC from the privatisation list due to its sensitive and strategic location.

The minister said that HMC is located near Pakistan Ordnance Factory, Aeronautical Complex and other defence related establishments, which has forced the government to drop it from privatisation list.

The privatisation policy otherwise will continue to be followed in normal course, he added.

The minister urged the management and the workers of HMC that they should work with extra zeal and dedication to avail this opportunity and make HMC a competitive organisation. He warned them that they should not exploit this favourable situation taking undue advantage of the shift.

He said that HMC would be restructured in a way to compete with the private sector and fulfil industrial and economic needs of the country.

In order to meet the objectives, minister said, the HMC management of would be complemented with extra decision making powers to avoid unnecessary delays.

He informed the workers of raising their wages, and the revised minimum wage would be Rs4,000 per month from January 1, 2007. Minister for Labour and Manpower Ghulam Sarwar Khan congratulated the HMC workers on exclusion of HMC from the privatisation list stressing them to put more efforts in making their organisation very competitive.

Managing Director, HMC Syed Ali Ansar and worker's leader Syed Iftikhar Hussain also spoke on the occasion.

http://www.brecorder.com/index.php?id=510637&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

MoU signed to increase manpower export to UAE

ISLAMABAD (December 23 2006): Minister for Labour, Manpower and Overseas Pakistanis Ghulam Sarwar Khan and his UAE counterpart Dr Ali Bin Abdullah Al Kaabi here on Friday inked a Memorandum of Understanding (MoU) for increasing manpower export to the Gulf state. Ghulam Sarwar Khan said that UAE is the main market for Pakistani skilled and semi-skilled workers.

He said that UAE's growing trend to import more Pakistani manpower was the result of mutual confidence and reliability between the two countries. "Pakistan exported 166,451 skill oriented persons during the last 11 months, out of which 91,675 went to UAE," Sarwar Khan added. He said the present figures revealed 28 percent increase compared to the same period of last year during which 129,834 workers went abroad.

Ghulam Sarwar said the government had introduced foolproof security system by issuing computerised identity cards, machine-readable passports and police clearing certificate to ensure the dispatch of eligible workers abroad. Besides, under integrated border control system, machine readable visa system is being developed in the country to improve security and check irregularities in its migration system, he added.

The agreement would be in force for four years and would be automatically extended for four years consecutively, unless either party gave three months notice in advance denouncing it in writing. He said that recruitment of manpower in Pakistan and its entry in the UAE would be regulated in accordance with the relevant laws, rules and procedures of the two countries.

The minister said that Pakistan and UAE would set up a joint committee to take care of the follow up of the implementation of this MoU. He said the composition of committee would be in the form of at least three members from each country and would meet annually or when it deemed necessary, alternatively in Pakistan and UAE.

Later, Dr Ali Bin Abdullah Al Kaabi appreciated the efforts and policies of Pakistani government and said that Pakistani workers are playing vital role for the socio-development of UAE. Over 0.8 million Pakistani families are living in UAE, he added.

http://www.brecorder.com/index.php?id=510673&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

After a decline in recent years its good to see an increase in labor export, we'll see a surge in remittences next year.

 

[Neo]

Kuwaiti firm eyes hotel, solid waste projects

KARACHI (December 23 2006): Kuwait Investment Company (KIC) has expressed keen interest to invest in solid waste management and in construction of a five-star hotel in the metropolis. This was said by the Managing Director Kuwait Investment Company Sheikh Hamid Al Sabah and Consul General of Kuwait H.E. Hasan Bader Al Oqab who called on City Nazim at his office on Friday.

They observed the rapid development of Karachi's infrastructure and of development projects have created huge opportunities for investment as a number of Kuwaiti firms were eagerly considering to invest capital in various sectors in city.

Mustafa Kamal extended complete cooperation to them and assured them protection. He apprised that the city government would establish two more industrial zones in the city to provide basic civic facilities to industrialists, in addition to setting up garment and textile cities and other trading zones.

Mustafa highlighted the features of signal-free corridor from airport to Site industrial area and underline the need of a five star hotel on the corridor. A chain of five star hotels is badly needed to facilitate the foreign visitors attending various exhibitions in Karachi, he said and added that City District Government Karachi (CDGK) had also allocated around nine acres of plot to build a five star hotel.

City Nazim said Karachi is the engine of Pakistan's economy and is a regional hub of all commercial activities where huge opportunities for investors are available. The construction work on the Elevated Expressway from Quaidabad to Jinnah Bridge and IT Tower will soon start, he announced. The Light Train Mass Transit will also be initiated soon, he maintained.

http://www.brecorder.com/index.php?id=510629&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Two Swiss firms to start business in Karachi

KARACHI (December 23 2006): Two Swiss multinational companies having state-of-the-art technologies, one in pharmaceuticals and the other in engineering sector, will set up their business in the metropolis by the end of January or the beginning of February 2007.

Speaking at an exclusive dinner reception hosted by Farrukh Ansari, managing director and chief executive officer, Ijara Financing Inc (Private) Limited at a local hotel on Friday, Consul General of Switzerland Martin Bienz said that all formalities to make investment in Pakistan have been completed and the operations would be started by the end of January or the beginning of February.

He said that cultural, tourism and educational activities were other areas for Pak-Swiss cooperation and possibilities of investment in these sectors looked bright.

Bienz gave brief overview of trade relations of the two countries and said that both enjoyed good bilateral trade relations.

He said that he had been in Karachi for the last seven months and had enjoyed hospitality of the people of this city. He said that the economy of Pakistan had shown upsurge and potential for business opportunities was enormous.

He referred to the visit of Swiss Foreign Minister to Pakistan, which was another step toward better understanding and cooperation in a number of areas of mutual interest. Earlier, Farrukh Ansari introduced the consul general to the guests including diplomats, high ranking civil and army officials, businessmen and bankers.

http://www.brecorder.com/index.php?id=510628&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Saudi-Kuwaiti group to invest $4 bln in Pakistan

KARACHI: December 23, 2006: A Saudi-Kuwaiti joint venture, MidRoc Tussonia Ltd, will invest $3 to 4 billion in Pakistan over the next seven years in power generation, refining and real estate sectors.

This was stated by the MidRoc Group President, Sheikh Humoud Al-Sabah at the launching of the joint venture here on Saturday.

Managing Director of MidRoc Zafar Ali and Kuwaiti Consul General Hasan Bader Al-Oqab were also present on the occasion.

He said that his company will set up two wind power generation plants at Mirpur Sakro at a cost of $200 million.

"We have signed a Memorandum of Understanding (MoU) and the first power plant of 50 megawatts costing $100 million will be set up in the first phase while second of a similar capacity and cost in the next phase," he added.

Sabah pointed out that 2500 acres of land has been acquired for this purpose and ground breaking ceremony was held on Thursday.

He said that his company was also setting up 350 MW power generation plant in Lahore.

He said that his company will also establish lube-based oil refinery at Port Qasim over 500 acres of land at a cost of $1.5 billion.

He said that the ground breaking for this project will be held in March next year. This unique refinery will have a production capacity of 200,000 metric tons of all kinds of lubricants per annum.

Sabah said that his company was operating three large refineries, two in Sweden and one in Morocco. We have acquired Swedish technology in oil refining and will the same in Pakistan, he added.

Talking of other interests in Pakistan, he said that Midroc will also develop a modern gatted community housing scheme in Islamabad for overseas Pakistanis.

Similarly, we will build a five-star hotel in Karachi.

http://www.brecorder.com