Pakistan Economy - News & Updates - Archive

[Owais]

Pharmaceutical industry facing closure

KARACHI (January 08 2007): About 50 percent of local pharmaceutical industry, having $1.6 billion market, is feared to shut down in 2007 following cheaper Chinese and Indian drugs invasion.

Pharmaceutical market sources told Business Recorder that the government's unfriendly policies towards local manufacturers had encouraged the neighbouring countries, where cost of production is much less than Pakistan, making their finished drugs cheaper than Pakistan's products.

Unlike most other countries, drug prices are fully controlled by the government here, which is a major setback for the local manufacturers. The regulators indulge in cutting down prices without knowing the cost of production, which has compelled the manufacturers to stop production, sources said.

Once the import of finished drugs allowed in the country, Indian and Chinese companies would flood the market and it would kill the domestic industry, sources feared. In this regard the government had started to liberalise its import policy and the current year would be very crucial for the local industry, they said.

Pakistan's pharmaceutical industry registered 17 percent growth in 2006, and total market size expanded to $1.6 billion, said Dr Qaiser Waheed, Chairman, Pakistan Pharmaceutical Manufacturers' Association (PPMA).

He said that the phenomenal growth was due to the impact of increase in population in the country and post-effect of earthquake 2005. "But, it does not reflect any government support for the industry," he added.

He said that the country was heavily dependent on imported medicines in the past but now local industry is meeting 90 percent of the domestic demand.

He said that the association was not against drugs price reduction but it sought that price fixation should be viable for the manufacturers.

Dr Waheed said that for the last two years the government's inconsistent policies were killing the industry and several manufacturers had stopped production of life-saving drugs because cost of production had gone beyond limits.

"No other industry in the country has been put under such stringent price control and no other industry has been forced to reduce prices. Given the significant level of foreign investment and international quality of locally produced products, it is only fair that the government should seriously consider the negative impacts of the current economic environment on the industry when making decisions regarding price increases," he said.

The PPMA chief said that the industry imports 90 percent raw material from abroad and several types of duties had increased the cost of doing business, while increase in utilities and labour charges were also harming the industry.

He said that 10 percent raw material was provided from the local market, which is substandard and supported by the government, in terms of different types of tax relaxation.

He said that about 400 units, including local and multinational, were operational in the country and some of them are recognised internationally. In these conditions the industry could not survive, he said, and suggested that the Ministry of Health should take immediate steps to save the local industry.

 

[Neo]

Owais please include links when posting a newsarticle.
Thanks!

Neo

 

[Neo]

Monday, January 08, 2007

Govt to spend $4b on power distribution

By Fida Hussain

ISLAMABAD: The government will spend about $4 billion on power distribution over the next 10 years under the Transmission Sector Roadmap 2007–2017, which has been prepared by the National Transmission and Dispatch Company (NTDC), a senior government official told Daily Times on Sunday.

The official said the programme focused on power transmission and would address the grievances of industrial, commercial and domestic consumers. He also said the plan would help minimise power breakdowns.

The NTDC programme has been presented to several financial institutions and the Asian Development Bank (ADB) has committed spending $800 million or 20 percent of the total investment. The official said NTDC was formed in 1998 as a part of Water and Power Development Authority’s (WAPDA) unbundling to operate, manage, and develop the national power transmission network. He said the growth in demand was about 12 percent in 2006 and that power generation was expected to grow from about 19,540 megawatts (MW) in 2005 to 162,590MW by 2030. He said the bulk of the additional supply would be met through an expansion of domestic and imported thermal and hydropower generation.

The government is currently pursuing a combination of public and private options to make sure new generation can be added as required. ADB is actively working with the government and private power generation developers to finance publicly- and privately-owned generation stations to meet the current and future demand for electricity.

In order to facilitate efficient and effective evacuation of power from existing power stations, NTDC’s roadmap addresses the current shortcomings of the power transmission system by recommending rehabilitation, augmentation and expansion projects and power evacuation from the planned power stations in the least-cost power generation plan.

NTDC’s immediate concern is the capacity of the transmission network to evacuate and transmit generated power to load centres. The 13,051MW peak demand recorded in 2006 was constrained by the transmission system and there was an estimated 800MW of unsatisfied demand. As a result, some transmission sections operated at or above rating limits, thus increasing the risk of transmission failure and costly service restoration. The inability to transmit all available generated power has the same effect as a generation shortage and this results in load shedding to prevent system failure and collapse.

The 500-kilovolt (kV) system provides the main power flow route between the north and south of the country. The bulk of the power is generated in the north (hydropower) and the south (thermal power) with the major load centres being in the middle of the country around Lahore, Faisalabad and Islamabad. As a result, there are always significant power flows from the north or south to the centre, depending on the season and the availability of hydropower.

At the end of 2006, 77 percent of the 500 kV and 69 percent of the 220 kV power transformers were overloaded. This means that security of supply standards cannot be met and NTDC cannot meet its transmission licence obligations.

http://www.dailytimes.com.pk/default.asp?page=2007\01\08\story_8-1-2007_pg7_1

 

[Neo]

Monday, January 08, 2007

$3.5 billion farm investment plan in Punjab from March

* Programme is spread over 10 years
* Will generate jobs, increase incomes, help attain a 7% annual growth rate target in province

By Sajid Chaudhry

A 10-year scheme called the Punjab Irrigated Agriculture Investment Programme (PIAIP) costing $3.5 billion will be launched to generate employment, increase incomes and help attain a target of 6 percent to 7 percent annual growth rate in the province, Daily Times has found.

The programme, which has been presented to donor organisations, will start in March 2007 and be completed by September 2017.

According to the investment plan, the Asian Development Bank (ADB) will give $900 million, World Bank (WB) $600 million, Japan Bank for International Cooperation (JBIC) $400 million, the Punjab and federal governments$200 million, bilateral donors $100 million and $1.3 billion in financing will be negotiated with multilateral or bilateral donors yet to be identified.

Punjab provides about 58 percent of Pakistan’s GDP and its agriculture gross domestic product represents 66 percent of that of Pakistan. PIAIP will not only help improve agriculture in the province, but also speed up efforts to accelerate the growth rate.

Irrigated agriculture in the Punjab accounts for about 28 percent of the province’s GDP output, employs about 54 percent of the labour force, produces about 90 percent of Punjab’s agriculture output and uses more than 95 percent of water resources.

Irrigated agriculture is crucial to generate higher incomes and attain Punjab’s target of 6 to 7 percent growth rate. The Punjab Irrigation and Power Department (PIPD) is responsible for operations and maintenance and managing surface irrigation that covers about 8.4 million hectares. PIPD’s infrastructure has an estimated replacement value of $20 billion and includes 13 barrages, 6,429 kilometres of main canals, 31,214 kilometres of distributaries and minor canals, more than 58,000 field outlets, 3,228 kilometres of flood embankments and 33 small dams.

The infrastructure has seriously deteriorated because of time (much of it is nearly 100 years old), no asset management planning, chronic under funding and ineffective implementation of operations and maintenance. The estimated cost of deferred maintenance is about $2 billion while the estimated cost to upgrade the system is $3.5 billion.

The poor condition of some large infrastructure poses serious risks, yet the deteriorated system more generally means unreliable irrigation service delivery, particularly to the tail ends of canals. Farmers have adapted to unreliable and inadequate canal water by developing private tube wells.

PIAIP will support physical and non-physical investments in water resource and irrigated agriculture. It will finance (i) comprehensive rehabilitation and upgrading of all water resources and irrigation infrastructure; (ii) improved groundwater, conjunctive-use and surface water management strategies and practices; (iii) on farm water management, improved irrigation technologies, and agricultural support services; and (iv) sector reforms, improved management methods, institutional strengthening and restructuring for water resource management, and irrigated agriculture.

PIAIP is expected to support investments in (i) Lower Bari Doab Canal and Balloki Barrage, (ii) Pakpattan Canal and Sulemanki Barrage, (iii) Thal Canal distribution system, (iv) Sidhnai Canal distribution system, and (v) Trimmu and Punjnad barrages. This will impact about 25 percent to 30 percent of Punjab’s irrigated area.

http://www.dailytimes.com.pk/default.asp?page=2007\01\08\story_8-1-2007_pg13_3

 

[Neo]

Pakistan gains $500 million textile orders due to Bangladesh turmoil

KARACHI (January 09 2007): The political instability in Bangladesh has compelled foreign buyers to place their orders in Pakistan. As a result, some $500 million worth of orders have so far been diverted to Pakistan, trade sources told Business Recorder on Monday.

"The general elections process is underway in Bangladesh, which has deteriorated the law and order situation there. As a result, international buyers have turned toward Pakistan to get their orders on time," they said.

Generally, Christmas is rated as peak shopping season in the West, particularly in US and Europe. Therefore, international buyers intend to get their import orders at the earliest to have moved toward Pakistan in the wake of rising law and order situation in the Bangladesh, they observed.

Textile exporters here have captured some $500 million export orders during October-December period of current fiscal year. This increased Pakistan's textile exports by 26 percent during November, against 6 percent to 15 percent decline during July-October 2006, they added.

"Our textile exports, as expected, will show increase during December and January. However, we are expecting fall again from February 2007 onwards, when the existing export orders grabbed from Bangladesh would be completed," sources said. A leading textile exporter said that the orders, which have been diverted to Pakistan due to the election process in Bangladesh, would help salvage the knitwear industry, which was on the verge of collapse.

Home textile and knitwear have received fresh export orders during the last three months, he said. "If the law and order situation did not improve in Bangladesh after elections in January, we may expect more international orders from European and US markets" he added.

He said that it was mere coincidence that the government linked the increasing textile exports in November with its policies, while it was simply a result of the political chaos in Bangladesh. Bangladesh textile industry is at its gradual growth and the low cost of doing business has helped it to win over buyers against Pakistan and other competitor countries like India and Sri Lanka in the international market, he said.

http://www.brecorder.com/index.php?id=515352&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Prime Minister wants Pakistan to become global engineering hub

KARACHI (January 09 2007): Prime Minister Shaukat Aziz inaugurated the Daewoo Assembly Plant at Razzaqabad here on Monday, saying he desires to see Pakistan becoming a hub of global engineering products and industry. The project has been taken up by the Afzal Motors Limited in collaboration with the Korean firm.

Shaukat Aziz said the project is one more addition to the creation of world class engineering products in Pakistan. "This is part of our vision to make Pakistan a hub for global engineering products and global engineering industry", he said.

He assured that there would be consistency and continuity in policies. With co-operation of the private sector the government will make the policy framework and provide a good, sound economic environment, he said. The Prime Minister said it is up to the private sector to build factories, to produce goods, to take technology from wherever they can in the world.

"We are an open society and will produce goods, which will sell here and overseas, keeping with the goal to build Pakistan as a modern enlightened, progressive and peaceful country," he said. He termed the inauguration of the Daewoo Assembly Plant a very important day for the country's engineering and transportation industry.

"We are seeing the opening of yet another engineering enterprise which will assemble and manufacture trucks and buses under the Daewoo International label. This is important for Pakistan because we have tried over the years to diversify our industrial base from the traditional industries which are still very important like textile, leather to the engineering industry which adds value, creates jobs and has a greater demand on skills of the workforce," he said.

Shaukat Aziz pointed out that today's venture has a unique feature that the sponsors have got technical assistance from Korea from Daewoo which is known for its technical skills and engineering capabilities. He was pleased that entrepreneurs in Pakistan are getting the truck and bus manufacturing technology from a global producer of vehicles, which will make the country's transportation sector even more efficient and productive.

http://www.brecorder.com/index.php?id=515394&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Tuesday, January 09, 2007

51.8 million tonnes sugarcane output this year: commissioner

ISLAMABAD: Sugarcane Commissioner of the Ministry of Food and Agriculture Anayatullah Khan said Monday that 51.8 million tonnes sugarcane has been produced this year in the country which is 15 percent more than last year.

Speaking in a PTV programme he said there would be a substantial improvement in availability of the sugarcane to mill owners during the crushing season.

He said level of crushing is 19 percent at this time, which if compared with the past year is up by 4 percent.

The crushing of the sugarcane started within time and hopefully the supply of sugar to markets will improve.

To a question he said that government has to create a balance among the stakeholders for the relief of consumers and this role is befittingly being played.

He said if the mill owners and growers want to revive the zoning system, government would have no objection.

To another question he said that all the experiments made in various parts of country for the promotion of sugarbeat cultivation yielded positive results.

http://www.dailytimes.com.pk/default.asp?page=2007\01\09\story_9-1-2007_pg5_2

 

[Neo]

Tuesday, January 09, 2007

First-ever merger of a Pakistani IT company with a European IT firm

ISLAMABAD: Aqcel Group, which is considered one of the leading exporters of IT-based solutions in Pakistan, announced its merger with Demark-based IT giant Mondo at a press conference here on Monday.

It’s the first-ever merger of a Pakistan-based IT company with a European public-listed IT company.

Aqcel is a pioneer in the IT outsourcing and development market, and since 1997 it has been delivering development solutions based on Microsoft technology worldwide. Aqcel is also among the very largest suppliers of Microsoft CRM solutions. With this merger of Aqcel, Mondo grows at a stroke from employing nearly 80 people to a staff of over 1,000, of which the majority will be based in Pakistan and some in Ukraine.

The Aqcel Group expects a 2007 turnover of nearly 0.8 million US dollars. With the merger, Mondo expects its own turnover for 2007 to be 18 million US dollars (DKK 100-105m), and its net profit to be 5-7%, excluding further expected purchases in 2007.

“We are very excited about the merger. It creates a great opportunity for the Pakistani IT market to create linkages with relatively untapped European IT industry from an outsourcing angle. I am confident that the combined synergies and tremendous demand for IT resources in Europe will put us on the right track to be one of the first IT organizations in Pakistan employing more than 1,000 IT professionals,” said CEO Rana Saad of Aqcel.

“The Aqcel Group suits Mondo perfectly, and brings us a great number of benefits from day one. The most important is that more than 300 highly-qualified and certified employees in Ukraine, Pakistan and Denmark bring us an injection of new expertise that is almost impossible to achieve in Denmark and Scandinavia.

http://www.dailytimes.com.pk/default.asp?page=2007\01\09\story_9-1-2007_pg5_12

 

[Neo]

Monday January 8

StanChart plans to double Pakistan network

KARACHI, Jan 8 (Reuters) - Asia-focused bank Standard Chartered plans to more than double its network in Pakistan in five years to capture a sizable chunk of the country's huge, untapped consumer market, a senior official said on Monday.
Last year, Standard Chartered Bank (Pakistan) Ltd, a subsidiary of Standard Chartered Plc. , acquired a 95.37 percent stake in Union Bank for $487 million, making it the fifth largest bank in the country.

"We plan to have 250-plus branches in the next three to five years, meaning our network will more than double," Mike DeNoma, Group Executive Director of Standard Chartered Plc told a news conference in Karachi.

"We currently have a 6.5 percent share of the market in Pakistan, and we want to take that to 10-15 percent in the next five to six years."

The bank currently has a network of 115 branches in Pakistan's 22 cities.

DeNoma said Pakistan had a huge untapped consumer market, and with the country's economy growing steadily, there were was much to capture. ADVERTISEMENT



"The product-innovation and service-innovation market is under-served, and we are committed to lead these areas," he said.

"We believe in Pakistan. We have been here for 143 years, and we expect to stay at least another 143 years."

Major banking reforms pushed through by Shaukat Aziz, the finance minister President Pervez Musharraf poached from Citibank and then promoted to prime minister, have helped the economy's rehabilitation.

Banks' profits grew 87 percent in 2005 and are expected to grow at about 44 percent this year, according to analysts.

Singapore state investor Temasek Holdings is set to take a controlling stake in Pakistan Industrial Credit Investment Corp. (PICIC) in a deal valued at around $300 million.

Foreign banks, including Barclays Plc. , ABN AMRO and HSBC , are also eyeing investment opportunities in Pakistan, attracted by economic reforms that have laid the platform for rapid growth and rising incomes.

http://asia.news.yahoo.com/070108/3/2vf2b.html

 

[Owais]

Iran and Pakistan to boost annual trade to $1 billion: Mottaki


TEHRAN (January 10 2007): Iranian Foreign Minister Manouchehr Mottaki says annual trade between Iran and Pakistan would be increased to US $1 billion. He said this meeting with visiting Pakistan Senate delegation led by Chairman of its Foreign Policy Committee Mushahid Hussein.

Both sides explored avenues to develop bilateral, regional, international co-operation and discussed issues of mutual interest. Mottaki said senior officials of two countries in recent talks agreed to increase current level of trade exchanges to $1 billion. He stressed execution of Iran-Pakistan-India natural gas pipeline project will turn into a symbol for long-term co-operation among regional states. Noting Iran's growth, advancement of science and hi-tech, he voiced his country's preparedness to expand co-operation with neighbouring and Islamic nations.

He underlined Iran's permanent preparedness to attend negotiations, and said, "We believe Iran's demand for accessing its inalienable nuclear rights and counterparty's expectations for easement of its concerns can form a proper base for dialogues between two sides."

Mushahid Hussein assessed as positive his talks with high-ranking Iranian leaders, and hoped bilateral, regional and international co-operation would further expand and deepen, given their political, economic and cultural commonalities and two Presidents' resolve to expand ties.

http://brecorder.com/index.php?id=515787&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Wednesday, January 10, 2007

Pakistan attracting FDI in other areas besides privatisation: adviser

LAHORE: Dr Salman Shah, Adviser to Prime Minister on Finance, said Tuesday that Pakistan was attracting Foreign Direct Investment (FDI) in areas other than privatisation.

“Pakistan would definitely get $5 billion FDI during the current fiscal and it is important to note that more FDI is coming to the green field sites,” he said.

Pakistan possesses lot more investment opportunities with many demographic advantages, he added. Dr Shah was responding to media queries after addressing the participants of the two-day Water Asia 2007 conference.

Regarding the sugar crisis, the adviser said negotiations with the sugar industry were underway and the sugar price was being managed through market mechanism. However, he warned that legal course would be initiated against the industry in case price fixing is proved against them.

Regarding power deficiency, he said, plans are being prepared to enhance the energy efficiency in the country.

Earlier, addressing the conference, the adviser sketched a comprehensive picture of the economic progress over the last four years and highlighted the promising prospects of it.

According to him, the investment to GDP ratio has reached to 20 percent, which is being translated in creation of new jobs and reduction in poverty.

“It is a universal phenomenon that sustainable growth brings poverty levels down and this is what we have achieved over the last four years.”

The East Asian countries are a prime example of the fact where economic growth has been persistent over the last 30 years, he said.

However, he termed slow growth in infrastructure and human resource development as a major constraint to the economic growth and pointed out that much attention is focused on education and skilled training.

“We have allocated four percent of the GDP on education in this budget,” he said, adding: “Fifty-five percent of the population is below 19 years of age that means that the number of our young generation is 19 million.”

He said Pakistan has a big demographic dividend for the investors who are looking seriously towards it nowadays.

The major foreign companies are coming to Pakistan due to shrinking of markets in other areas and expanding one in South Asia, he said.

He said government has also focused infrastructure development equally and total of Rs 430 billion has been allocated that comes around 4 percent of the GDP against a total demand of 8 to 10 percent of the GDP in Pakistan.

Pakistan is offering tremendous scope of investment in infrastructure development, he said and added that Pakistan is investing heavily on construction of dams both through public as well as public and private partnership.

He termed dams as a matter of life and death for Pakistan and said Pakistan has planned to invest around $6 billion on each dam to be constructed up to 2016. Each dam would contribute 3 percent to the GDP annually, he added.

He also highlighted the importance of water management and stressed on a transparent system ensuring a win-win situation for every stakeholder.

He also gave away shields among water sector experts on the occasion. Earlier, Mian Fazal Ahmed and Ch Mazhar Ali also spoke to the audience.

http://www.dailytimes.com.pk/default.asp?page=2007\01\10\story_10-1-2007_pg5_5

 

[Owais]

First half current account deficit rises to $3.86 billion

ISLAMABAD (January 11 2007): Despite a strong build-up in Pakistan's current transfers, the burgeoning trade deficit pushed the current account deficit (CAD) to $3.86 billion during the first half (July-November) of 2006-07, depicting an increase of 22.7 percent over $3.14 billion in the corresponding period of last fiscal year.

During these five months, in spite of strong build-up in current transfers of about $4 billion, the huge, $6.175 billion, trade deficit in goods and services was instrumental in turning the current account into deficit, the State Bank of Pakistan (SBP) data released on Wednesday said.

Net current transfers rose to $3.97 billion during the period under review, from $3.52 billion of corresponding period of last fiscal year. Current transfers went up as Pakistan received $2.09 billion in remittances or foreign exchange sent home by overseas Pakistanis during the period, up from $1.68 billion a year ago.

However, more worrisome was that during this period, resident deposit holders withdrew $61 million from foreign currency accounts (FCA) against $110 million deposited in these accounts during last year.

Inflows in these accounts could prove a cushion in moderating the current account deficit but unfortunately it turned negative and then dented the current transfers, too. All three multilateral donors--World Bank, Asian Development Bank and International Monetary Fund--have time and again cautioned the government pointing to the burgeoning current account as 'grey area' of the country's economy.

During 2005-06, the deficit had risen to $5.7 billion against $1.784 billion in 2004-05. As percentage of GDP, it rose from 1.6 to 4.4, the highest level in past nine years. And now for 2006-07, the World Bank has forecast it at 5 to 5.5 percent and IMF at 5.6 percent of GDP by the end of the year.

The Asian Development Bank (ADB) in its 'Outlook' a few months back had also projected it at $8.5 billion (5.9 percent of GDP) for 2006-07. On the other hand, the government's economic managers are confident that the current account deficit is manageable by borrowing from abroad, remittances, drawing down reserves and inflow of investment.

Fuelled by huge trade deficit, the country's current account deficit (excluding official transfers) in five months witnessed an increase of $713 million (22.7 percent) to $3.85 billion. The SBP data shows that Pakistan witnessed this current account imbalance as trade deficit (in goods and services) jumped to $6.17 billion during July-November 2006 from $5.40 billion in corresponding period of last fiscal year. The trade deficit figures were arrived at using the freight-on-board value of imports and exports.

Trade deficit (in goods) during the period under review stood at $4.304 billion with $11.22 billion imports and $6.92 billion exports. The services account also witnessed a large imbalance of $1.87 billion, as inflows under this account stood at $1.536 billion whereas outflows totalled $3.41 billion. Thus, on balance, total trade deficit (goods and services) stood at $6.175 billion.

The data shows that the factors responsible for this huge deficit included higher outflows on account of transportation, travel, insurance, royalties and licence fees.

Pakistan had to spend $1.315 billion on transportation account whereas its earning under this head was only $487 million. Thus, the net deficit in the service account due to chartering of vessels for imports/exports was $828 million.

Another factor responsible for big services' account deficit was a net outflow of about more than half a billion ($550 million) on account of overseas travelling. Pakistan had to spend $655 million to finance personal and business-related travelling abroad of individuals and groups whereas it earned only $105 million under this account. The same applied to spending on insurance, royalties and licence fees paid to international organisations and their employees operating in Pakistan.
http://brecorder.com/index.php?id=516067&currPageNo=1&query=&search=&term=&supDate=

 

[Owais]

Exports up 4.8 percent for July-Dec 06-07


ISLAMABAD (updated on: January 11, 2007, 19:39 PST): The country's exports in first half of the current fiscal (July-December 2006-07) were recorded at around $8.437 billion, showing an increase of 4.8 percent over the exports worth $8.047 billion realised in the last corresponding period.

According to provisional trade figures, the exports during the month of December, 2006 totalled at around $1.517 billion as against $1.455 billion realised in the corresponding period of the last fiscal, showing an increase of 4.5 percent in the like period of the last year.

The exports achieved 45.4 percent of the set target of $18.6 billion for the current fiscal while the import achieved 53.2 percent of the set target of the current fiscal.

During the first six months of the current fiscal, the imports also witnessed 9.1 percent growth to $14.886 from $13.651 billion in the same period of the last financial year.

The country's imports in December 2006 were recorded at $2.564 billion, witnessing a decrease of 3.6 percent over imports worth $2.475 billion realised in the corresponding month of last fiscal.

According to the provisional trade figure released here on Thursday the balance of trade has reached -1.394 billion in December 2006 from -1.394 billion in November 2006.

http://brecorder.com/

 

[Owais]

Deutsche Bank arranged $ 1.05 billion debt for Pakistan

KARACHI: Deutsche Bank has arranged a major currency debt worth $ 1.05 billion for Pakistan government and corporates in 2006.

According to an announcement here, in Asia, Deutsche Bank managed a total of 29 deals in US dollar, Euro and Yen Asia bonds, in 2006.

The bank has arranged a major currency debt worth $ 4.73 billion for Asian governments and corporates.

Deutsche Bank was the only house to be involved in both international bond issues out of Pakistan in 2006. This included a$ 250 million deal for Mobilink, which was the first corporate bond to be issued out of Pakistan for over 12 years.

Deutsche also managed a $ 800 million dual tranche issue for Pakistan in March. The deal comprised $ 300million of 30-year bonds.

The first-ever 30 year bond to be issued from Pakistan, and $ 500 million of 10-year bonds.

http://geo.tv/geonews/details.asp?id=617&param=3

 

[Owais]

July-December trade deficit rises to $6.46 billion

ISLAMABAD (January 12 2007): The trade imbalance has gone up sharply to $6.46 billion during the first half (July-December) of the current fiscal which is about 15.3 percent higher than the corresponding period of last fiscal ($5.604 billion), the Ministry of Commerce reported on Thursday.

During this period, Pakistan's exports totalled $8.436 billion and imports $14.896 billion against $8.047 billion and $13.65 billion, respectively, recorded during the same period last year.

The provisional trade data released by the Commerce Ministry revealed that Pakistan economy pulled in 9.1 percent more imports during July-December, while, exports rose only by 4.8 percent. Each month, the import growth exceeds exports steadily widening the trade gap.

It is important to note that previously, in its trade policy for the fiscal 2006-07, the government targeted imports at $28 billion and exports $18.6 billion with a trade deficit of $9.4 billion during the year.

Now in the first half, the country achieved 45.36 percent of exports and 53.19 percent of imports target. The huge import pressure and low exports growth envisages that by the end this fiscal the trade deficit would exceed the set target of $9.4 billion.

It is also feared that if the current trend persists, by the end June 2007, the government may not be able to hit exports target of $18.6 billion. However, imports are likely to cross the target of $28 billion. During the last fiscal 2005-06, the government had missed its exports target of $17 billion by a margin of $531 million.

It is interesting to note that in December 2006, the only month when exports increased while imports declined. The figures reveal that exports during December 2006 increased to $1.517 billion as against $1.38 billion in November 2006, showing a growth of 10 percent. The imports in the same month are down by 7.5 percent to $2.564 billion as compared to $2.774 billion in November 2006.


http://brecorder.com/index.php?id=516427&currPageNo=1&query=&search=&term=&supDate=