Pakistan Economy - News & Updates - Archive

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China Mobile to take 89pc stake in Paktel

By Aamir Shafaat Khan

KARACHI, Jan 22: China Mobile Communications Corporation (CMCC) is all set to buy majority stake in the Paktel held by the Millicom International Cellular SA (MIA). The Millicom International signed an agreement on Jan 21 for the sale of its 88.86 per cent shareholding in the Paktel Limited to China Mobile.

The total cash consideration payable to the Millicom as a result of the transaction (including the repayment of inter-company debt) is approximately $284 million.

According to an announcement here, completion of the transaction is subject to certain regulatory approvals and procedures. If such approvals are obtained, completion is expected to occur in late February 2007.

According to a press release of the MIC available on its website, the transaction implies an enterprise valuation for the Paktel Limited of $460 million.

Merrill Lynch and KASB Securities were advising China Mobile on this transaction, being considered as the first real Chinese strategic investment activity in Pakistan’s cellular market.

Millicom is a global telecommunication investor with cellular operations in Asia, Latin America and Africa.

It currently has cellular operations and licences in 17 countries. The group’s cellular operations have a combined population under licence of approximately 433 million people.

According to Invest Cap, Millicom wanted to sell its Pakistani unit as soon as possible after concluding it would not get the return on its investment because of challenging business conditions and frequency interference issues.

Meanwhile, a source in the Pakistan Telecommunications Authority (PTA), who asked not to be named, said he had only seen the information available on the website of Millicom -- but till Monday the PTA did not receive any intimation or information from any of the buyer and seller over the huge sale of stake in the Paktel.

Market sources said the operators of Paktel had not planned their marketing strategies in view of rising competition in the already overheated mobile phone market which further charged with the entrance of Telenor, Warid etc. Besides, Paktel was already facing stiff competition with Mobilink and Ufone.

http://www.dawn.com/2007/01/23/ebr1.htm

 

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Two wind power plants initiated

Jhampir: The ground breaking ceremony of first two wind power plants of the country was held at Jhampir in Thatta some 110 kilometres off Hyderabad.

The plants costing Rs12 billion will be producing 50 Mega Watt of electricity each and start functioning by the end of 2007. The federal water and power minister termed the ground breaking ceremonies as milestone in the history of country that according to him would significantly help in meeting power shortfall.

A Turkish company Zorlu Enerji invested in first 50 MW wind power generation project while Masters Foam is making the second 50 MW wind power plant under the government Alternative Energy Development Board (AEDB) program.

The Federal Water and Power Minister Liaquat Ali Jatoi along with representatives of both investors and chairman of AEDB Air Marshal (Retd) Shahid Hamid performed groundbreaking ceremonies.

The Consul General of Turkey at Karachi, federal water and power secretary Ashfaq Mahmood and other concerned officials of AEDB and locals of the area also attended the ceremony. The federal minister speaking at the occasion said that the groundbreaking ceremonies of wind power projects are a proof of government’s commitment towards exploring alternative energy sector in the country. He said that under the leadership and vision of President Gen Pervez Musharraf and Prime Minister, the AEDB is working extensively to exploit the alternative energy sector and brining investment both foreign and locals in this sector.

He said that the production of wind power would help in meeting the shortfall of electricity in the country and more investment is being expected in this sector. Liaquat Jatoi said that cheap electricity would be produced out of these wind power projects and asked the people of the country to conserve energy and sought the consumers help to stop power theft.

The minister further said that the investors have been asked to complete these projects on schedule. “We will support the investment and investors would be provided with facilities,” he said.

He said more wind power plants would be set up to generate cheap electricity and improving the living standard of the people. Chairman of AEDB Shahid Hamid addressing the ceremony said that these wind power projects are being installed at the government land of 5 thousand acres.

He said that machine installation for these wind power plants would be started soon and investors have been asked to give jobs to locals on top priority and added that the area would be developed after the completion of project.

He said that the Turkish investors have assured that first production of electricity would be started by the yearend and added that the entire country would benefit of these winds power projects including the local areas.

According to officials of the Turkish company, first cement was laid on Monday with wind measuring station of the plant and total cost of the 50MW plant is expected to be around $80 to $90 million.

They claimed that first production of the plant would be started at the end of 2007 and through its built own and operate project Zorlu Energy would continue to contribute to Pakistan’s electricity generation for 20 years.

The expansion of the plant to up to 300 MW was also submitted to AEDB and hoped that this project would not only increase the country’s electricity production but would also open new employment opportunities.

http://www.thenews.com.pk/daily_detail.asp?id=39944

 

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Pakistan may not achieve textile export target


KARACHI: Country may not succeed to achieve textile export target of $11.5 billion for fiscal 2006-07.

Federal Secretary Textile Masood Alam Rizvi said this at certificate distribution ceremony at Knitwear Institute of Pakistan Hosiery Manufacturers Association (PHMA) here on Monday. “In view of current export statistics it seems that textile industry will not be able to achieve textile export target for current fiscal.”

He added that exports of the country slightly increased during July-December 2006 which was not satisfactory. He maintained that textile sector was under pressure due to rising competition with other countries in the region in post-quota regime but dispelled the impression that sector was in crisis-like situation.

It may be noted that government had fixed a target of $11.5 billion for textile exports during fiscal year 2006-07 against $10.04 billion of fiscal 2005-06, but export figures, released by the FBS a couple of days back showed that the textile exports grew by 4.3 per cent during first half of current fiscal at $5.318 billion, against last yearís $5.097 billion.

Exports of raw cotton, cotton cloth, bed wear and made-up articles, fell to 23.53 per cent, 10.50 per cent, 6.41 per cent and 6.87 per cent, respectively, during this period. However, Masood Alam Rizvi said, India, China, Bangladesh made extra preparations for quota-free market but Pakistan lagged behind in making strategy to meet the challenges in open market competition which brought adverse effects on textile sector of the country.

“Country is also facing shortage of skilled labour thatís why the wastage of textile sector is more than its production,” he pointed out and added that there was also a shortage of recognised training institutes which was the main cause of dearth of effective workforce in the country.

He said that textile ministry was committed to improve skill development institutions in collaboration with private. He said that Prime Minister Shuakat Aziz would inaugurate Lahore Garments City in Sundar Industrial Estate by the end of January or early March this year and added that 40 acres of land had been acquired for Faisalabad Garments City whereas City District Government Karachi (CDGK) had allocated 300 acres of land near Port Qasim and 300 acres near Baldia Town for the proposed garments cities in Karachi.

Moreover, work on proposed Textile City of the country near Port Qasim was underway and 700 acres of land had been acquired out of total 1,250 acres for the said project which would create 80,000 new jobs for skilled and unskilled workers.

http://www.pakistaniforcesforum.com/newreply.php?do=newreply&noquote=1&p=45633

 

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$2.36b record investment received sans privatisation

* Total foreign investment up 68.6% in July-Dec
* Portfolio investment increases by 74.5%

By Arshad Hussain

KARACHI: It is the first time that the country’s total foreign investment has surged to a record level by 68.6 percent to $2.496 billion without privatization proceeds in July-Dec 2006-07 compared with $1.481 billion received in the same period last year.

Portfolio investment surged by 74.5 percent to $627.1 million in the first half against $359.3 million received by the local bourses last year. Pakistan received direct investment of $1.869 billion with privatization proceeds in July-December after surging by $748.3 million, or 66.7 percent, according to data released by the State Bank of Pakistan (SBP) here on Monday.

During the period, the government received only $133.2 million from the privatization proceeds in the telecommunication sector from the United Arab Emirates (UAE).

In spite of frequent decline at the local bourses, portfolio investment has not only significantly improved during the last six months, analysts said, but also indicates stability in the coming six month.

An analyst said: “Direct investment figures announced by the central bank are encouraging for the government and its policies. The country has received an amount of $1.736 billion in the last six months, which shows that the government could easily achieve its FDI target of $4 billion for the current fiscal year.”

The data of the central bank shows that the SBP has received only $223.5 million from the UK under the portfolio investment. This amount could be of the Global Depository Receipt (GDR) of the Oil and Gas Development Company Limited (OGDC) at the London Stock Exchange (LSE) held in October or November last year. The Privatization Commission has completed its first GDR by selling its share of around $812 million. “It would be the highest ever figure of direct investment received during the last six months as compared with the last few years,” the analyst said. Last year, the country had received $1.8 billion from privatization proceeds out of the total foreign investment of $3.872 received in 2005-06.

Recently, the Privatization Commission has announced that it will hold GDR of the government’s holdings in National Bank of Pakistan, Habib Bank and Allied Bank to raise foreign investment.

News coming from the Privatization Commission said the GDR of these banks would be held in the current fiscal year, but did not give the exact date, the analyst said.

The Privatization Commission is also finalizing the sell-off of Pakistan State Oil (PSO), the country’s largest oil marketing company, by March.

Portfolio investment from the USA shot up to $302 million in July-Dec 2006-07 compared with $230 million in the same period last year. Major investment at the local bourses was from Singapore, which stood at $107.7 million in July-Dec 2006 compared with the withdrawal of one million US dollars in the same period last year.

In direct investment, the European Union invested of $541 million in the last six months compared with only $194 million in the same period last year. The United Kingdom invested $460 million in the last six months, while such investment stood at $87 million in the same period last year. During the first half of the current fiscal year, the financial business sector of the country remained on top that received $517 million, the telecommunication sector got $472 million, the storage facilities sector received $495.2 million and the oil and gas exploration sector received $315 million.

http://www.dailytimes.com.pk/default.asp?page=2007\01\23\story_23-1-2007_pg5_2

 

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ADB to study power trade to Afghanistan, Pakistan

ISLAMABAD: An Asian Development Bank (ADB) funded feasibility study will prepare a proposed power trading project that would, in its initial stages, earn revenues for the Kyrgyz Republic and Tajikistan by allowing them to initially export 1,000 megawatts of electricity to Afghanistan and Pakistan, where there are significant energy shortages.

In this regard, ADB is providing a $3 million technical assistance grant to study the potential for regional electricity trading that would help optimise the utilisation of power resources in both Central and South Asia, according to an ADB decision made public on Monday.

The ADB, European Bank for Reconstruction and Development, Islamic Development Bank, and World Bank along with bilateral and private sector stakeholders have been participating and assisting the Multi-Country Working Group in their consideration of the project.

“The Multi-Country Working Group has taken important steps toward regional cooperation in power trade and ADB is pleased to contribute through this study to support their efforts to progress to the next stage in project development,” says F. C. Kawawaki, an ADB Senior Investment Specialist.

“Although there is some existing interconnection between Afghanistan and Central Asia, and additional bilateral projects are under development, there is considerable scope for expansion of regional cooperation in the power sector. This project marks the beginning of the process to bring the demand and supply sides together.”

The study will look into the feasibility and viability of the proposed project, including assessment of power availability and demand in the countries, possible transmission routes, economic and financial costs, and environmental and social safeguard assessments.

The countries have also requested World Bank to provide technical assistance focusing on the Commercial Assessment study, which together with ADB’s assistance will be utilized by the four countries to determine the way forward.

http://www.dailytimes.com.pk/default.asp?page=2007\01\23\story_23-1-2007_pg5_3

 

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Lubricant Marketers Should Not Overlook Pakistan as Alternate Source of Growth, According to Kline Study
January 17, 2007

LITTLE FALLS, January 17, 2007 -- While many of the world's lubricant marketers focus on opportunities in India, Pakistan should not be overlooked as an alternate source of growth and a key player in the region's future economic success, according to a recently published study by Kline & Company.

Data from the study, BUSINESS OPPORTUNITIES IN THE EMERGING LUBRICANT MARKETS OF SOUTH ASIA, THE MIDDLE EAST, AND NORTHERN AFRICA, 2005-2015, shows that Pakistan will exhibit the highest growth rates for lubricant consumption in the region over the next decade, albeit from a smaller base than the Indian market.

"Lubes marketers shouldn't write off Pakistan just because it's not on the scale of India," says Geeta Agashe, director of Kline's Petroleum and Energy Practice. "Pakistan is still a sizable market, has less competition and fewer barriers to entry than India, and has the best projected growth rates for lubricant consumption in the region."

In South Asia, a region that includes India, Pakistan, Nepal, Bangladesh, and Sri Lanka, Pakistan accounts for less than 20% of total lubricant consumption and is a distant runner-up to India, which accounts for 75%. However, Kline predicts that lubricant consumption in Pakistan will advance by more than 5% annually over the next ten years, exceeding 550 kilotonnes a year by 2015.

Despite Pakistan's past conflicts with India and the political instability in Afghanistan that has entangled Pakistan's government, its economic growth potential, open markets, and less crowded playing field should warrant serious consideration from lubricant marketers looking for another growth arena. While Pakistan State Oil Company controls a significant market share, Shell, Caltex, and Total all have a significant presence.

These multinationals are servicing the needs of Pakistan's growing population of foreign-made vehicles that require sophisticated, higher-quality oils. Kline's study indicates that there is currently a large unorganized market segment for reclaimed, adulterated, and counterfeit oil, but as the country's vehicular base moves further toward motorcycles, cars, and trucks that use higher-quality lubricants, a prime opportunity exists for grabbing significant new market share as the unorganized market is unable to serve those vehicles.

Overall, Pakistan's consumption of lubricants is largely for products made from Group I basestocks, and this is expected to remain the case through 2015, making the country an all-around good target for marketers of base oils, additives, and finished lubricants.

"If you're a supplier that is new to the region, Pakistan has lower barriers to entry than India or China in many respects and could be a better entry point. And if you're a major lubes company that's already doing business in the region, it's important that you don't let the bright light of India obscure the opportunities for growth in Pakistan," says Bill Downey, vice president and head of Kline's Petroleum & Energy consulting practice.

BUSINESS OPPORTUNITIES IN THE EMERGING LUBRICANT MARKETS OF SOUTH ASIA, THE MIDDLE EAST, AND NORTHERN AFRICA, 2005-2015 is a series of country and supplier profiles for these developing regions, including information on market segments, trends, developments, forecasts, supplier market shares, distribution channels, leading end-use segments, promotional techniques, and other topics. The report includes 10 country profiles and 8 profiles of leading multinational lubricant suppliers to these regions.

http://www.chempoint.com/industrynewsdetails.asp?DocumentName=20070117_Lubricants&index=8

 

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Pakistan reaches 48.21 million mobile subscribers

Monday 22 January 2007

The number of mobile phone subscribers in Pakistan rose to 48.21 million in December 2006, from 46.42 million in November. Mobilink remained the largest operator with 22.38 million subscribers at the end of the year versus 22.03 million in November. Ufone grew to 10.02 million users from 9.65 million the previous month, while Warid remained in third place, with 7.61 million versus 7.28 million in November. Telenor grew to 6.62 million customers in December from 5.833 million a month earlier, while Paktel's base fell to 1.33 million from 1.38 million.

Over the year 2006, the total number of mobile subscribers grew from 36.78 million in July to 48.21 million in December. The mobile density increased to 31.02 percent of the population in December 2006 from 29.87 percent in November and 23.67 percent in July.

http://www.telecompaper.com/news/article.aspx?id=154924&nr=&type=&yr=

 

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Telecom imports breach $1 billion mark in July-December

KARACHI (January 24 2007): The country's telecom imports during the first half of the current fiscal year exceeded the dollar-one-billion mark on the back of high mobile phone demand, whose imports went up by 46 percent as compared to the same period last year.

According to the data provided by the Pakistan Federal Bureau of Statistics, the telecom imports reached $1.0834 billion during 1HFY07, registering an increase of 25 percent as compared to $867.286 million in the same period previous year.

The major contributor to this remained the cellular phones whose imports reached $445.257 million, registering an increase of 46 percent as compared to $305.9 million in the same period previous year.

While the imports of other telecom-related apparatus registered a growth of 14 percent to reach $638.13 million against $561.39 million during 1HFY06 The market experts have defined the tremendous growth in the country's cellular industry to be the major reason behind the elevating imports of mobile phones.

According to the Pakistan Telecommunication Authority (PTA), about 30 percent of Pakistan's 169 million population had mobile phones at the end of November 2006, compared with 22 percent in June. While the number of cellular subscribers rose to 46 million at the end of December 2006 from 12.8 million a year earlier, it said.

The spokesman for the Karachi Electronics Dealers Association (Keda) said the tough competition among the telecom operators had brought the cellular tariffs within the reach of a common man, which was one reason of escalation in the tele-density. Besides the service, the technology was getting cheaper day by day and a new mobile phone set could be purchased for less than Rs 2000.

He said the trend of changing cellular sets was very much in these days, as this had become a status symbol. On the back of this tendency of changing cells and keeping more than one cell had raised the demand manifolds. He said in order to meet the demand, the cellular sets were being imported from China and USA mainly and the rest of the world as well.

In addition to this, almost all the telecom operators in the country are going through expansions requiring advanced equipment and apparatus, which is imported from various countries thus adding to the import bill.

http://www.brecorder.com/index.php?id=520604&currPageNo=2&query=&search=&term=&supDate=

 

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Readymade garment exports up 15 percent in December

KARACHI (January 24 2007): Country's ready-made garment exports was up 15 percent during December 2006 due to increasing demand in the international market as compared to the same period last fiscal year, official statistics revealed on Tuesday.

According to the current statistics, during the month of December 2007 country's readymade garment exports stood at $132.26 million as compared to $114.969 million during the same period of the last fiscal year 2006, denoting an increase of $17.291 million or 15.04 percent during December 2006.

In December 2006, readymade garment exports also showed an increase of $31.994 million or 32 percent against November 2006 during which country's textile exports were recorded $100.266 million. During the first half (July-December) of the current fiscal year country's ready-made garment exports have increased by around 3 percent, as compared to the same period of the last fiscal year.

Readymade garment exports stood at $691.928 million during the first half (July-December) of the current fiscal year as compared to $675.108 million exports during the same period of the last fiscal year, depicting an increase of $16.82 million.

Chairman Pakistan Readymade Garment Association (PRGMEA) Ijaz Khokhar told Business Recorder that this sudden increase in the value-added garments had occurred only due to Christmas. "It is not a positive indicator for the textile sector because during the same season it goes upward every year," he said.

He pointed out that current figures should be compared with the next two months figures to assess the situation of the textile exports. He said readymade garment would certainly go down during next two months owing to decreasing sales of textile items and other products in the West.

This boost in the readymade garments exports also did not take place due to continued political turmoil in Bangladesh, because foreign textile orders diverted from their to Pakistan would come into effect three months from now, he added.

Khokhar said that the continuously increasing utility charges should capped on a permanent place to allow the exporters to make their export deals for at least one year in advance.

http://www.brecorder.com/index.php?id=520608&currPageNo=1&query=&search=&term=&supDate=

 

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International property show attracts $50 million business

KARACHI (January 24 2007): The first international property expo has attracted around $50 million business in terms of bookings and confirmations, said a press release received here on Tuesday.

The exhibition 'Metro World' held on January 20-22 at the Karachi Expo Centre, which was attended by foreign exhibitors from Gulf region and shown their gratitude. Over 25,000 Karachiites visited the Metro World exhibition and took keen interest in projects by local and foreigner builders and developers.

The exhibition was also participated by real estate agents, commercial and residential property developers, construction companies, consultants, architects and designers, interior decorators, property marketing companies, hotels and resorts, leisure clubs, farms, officer towers, shopping malls and investment companies.

The exhibition provided a highly effective networking opportunity for international and local exhibitors to showcase their projects and services on a unique platform with a truly international appeal.

http://www.brecorder.com/index.php?id=520681&currPageNo=2&query=&search=&term=&supDate=

 

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KPT to build deep seaport on self-finance basis

ISLAMABAD (January 24 2007): Pakistan will have another port soon as the government decides to build Karachi groyne as a deep seaport, a few kilometres away from the exiting Karachi Port, to handle long liners/vessels and provide the best facilities to the regional countries for international trade.

The survey and other initial work have confirmed that water depth at the selected site for Karachi groyne is ideal for the deep seaport and it will be developed on fast track basis. The new port will cost the KPT billions of dollars. However, KPT is confident to complete the mega project on self-finance basis.

Sources said the Karachi Port Trust (KPT) had presented the plan of the new deep seaport at a meeting chaired by Prime Minister Shaukat Aziz, sometimes back. Minister for Ports and Shipping, Babar Khan Ghauri, Naval, KPT and other security agencies' chiefs and senior officials of the concerned departments/ministries attended the meeting.

Sources added that the KPT authorities informed the meeting that it has sufficient funds to finance the Karachi groyne project and would complete it within the given timeframe of 5 to 6 years without any financial help of the federal government.

Sources said the Prime Minister approved the plan and directed the KPT authorities to float the international tender to hire consultants for preparing design and other works of the project.

Sources said the Karachi groyne would be developed in two phases. The first phase will be developed up to 14 meters depth and in the second phase it will be further developed up to 18 meters depth.

The sources added that KPT would utilise its financial resources to build the project and complete it by 2012-13.

They said the construction of the Karachi groyne would make Pakistan even more important strategically. The Karachi groyne project will be the alternative source for Pakistan to handle long liners after Gwadar Port.

Gwadar Port is becoming operational by March this year and it's going to be the deepest port in the region. Pakistan is expecting great commercial activities when its Gwadar Port becomes fully operational.

http://www.brecorder.com/index.php?id=520615&currPageNo=2&query=&search=&term=&supDate=

 

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UAE to expand investment in Pakistan

ISLAMABAD (January 23 2007): United Arab Emirate's investment in Pakistan will witness a major boost in 2007 in various sectors such as energy, investment, trade, and manpower. UAE is the largest foreign investor in Pakistan's public and private sectors, with $1.456 billion investments, a private news channel reported.

These investments will expand to areas such as agri-business, tourism, hospitality services and food packaging. Pakistan has developed a strong base of trained, educated, skilled and professional manpower, which could meet the growing workforce needs of the UAE. Pakistan expects $5 billion FDI inflows in the current fiscal year 2007, up from $3.8 billion in 2006.

http://www.brecorder.com/index.php?id=520264&currPageNo=3&query=&search=&term=&supDate=

 

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Record FDI expected this year: Zahid

KARACHI: “Pakistan is heading for new records for total Foreign Direct Investment (FDI) this year, which has already exceeded $3.3 billion during the first half of the current financial year.

Zahid Hamid, Federal Minister for Privatisation & Investment and Chairman of Privatisation Commission stated this while addressing the Privatisation Commission Board meeting at Islamabad on Tuesday.

The minister informed the PC Board that Foreign Investment figures continued to reach record levels during the current financial year. The FDI during the first half July-December 2006 was $1.87 billion, which is 69 per cent higher than the amount during the corresponding period last year. Portfolio investment in this period was $627 million while GDR receipts of MCB and OGDCL are $150 million and $731 million respectively. Hence total Foreign Investment during the first half of FY 2006-07 exceeded $3.3 billion, he said.

The PC Board reviewed the progress regarding privatisation of Pakistan State Oil Company Limited (PSO) through the proposed sale of 51 per cent shares along with management control.

The PC Board expressed satisfaction over encouraging response from reputable local and foreign investors to the PC notice inviting fresh EoIs, which was an indication of their appreciation of the country’s economic performance and confidence in the privatisation and investment policies of the government.

Board constituted a six-member Transaction Committee to supervise various stages of the process including pre-qualification of parties to enable them to enter into the data room for necessary due diligence. The Committee will make every effort to expedite the process so as to bring the transaction to the bidding point as soon as possible.

Meeting noted with appreciation that the domestic retail offering of OGDCL have been oversubscribed by 38 per cent following the successful GDR offering last month. The Board reviewed the progress on transactions relating to IPO of HBL and GDRs of UBL, NBP, KAPCO and HBL and gave necessary directions to expedite the same.

The Jamshoro Power Company transaction was also discussed in depth and it was decided to expeditiously resolve all pending matters so as to bring it to the bidding stage.

The Board was informed that the PC had received ten Expressions of Interest (EoIs) and Statements of Qualification (SoQs) from the interested parties to participate in the privatisation process of Heavy Electrical Complex (HEC), while eight EoIs and SoQs had been received in respect of Hazara Phosphate Fertilizers Ltd (HPFL).

The Board was also informed that the process had been initiated for the privatisation of Pakistan Mineral Development Corporation’s (PMDC) Coal and Salt mines by inviting EoIs for appointment of Financial Advisor.

The PC Board also discussed the work of the ‘Future Portfolio Committee’ constituted to formulate recommendations for processing new transactions from the approved list of the Council of Common Interests (CCI).

The PC Board members and senior representatives of the respective ministries and departments were present in the meeting.

http://www.thenews.com.pk/daily_detail.asp?id=40076

 

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Pak-UAE trade to reach $5bn

ISLAMABAD: Trade between Pakistan and the UAE is set for a major growth and to reach $5.1 billion by the end of June, a 20 per cent increase over $4.1 billion in 2005-06. Pakistan embassy commercial attache Bilal Khan Pasha is quoted to have said in a report in the Gulf News. The first six months of this financial year have yielded a strong performance. Exports to the UAE have risen to $700 million compared with $1.3 billion for full-year 2005-06, a private TV News channel reported. During the last fiscal year the UAE’s exports were $2.8billion and imports from Pakistan were $1.3 billion. Pakistan’s exports to the UAE were petroleum products worth $400 million, rice $250 million, textiles $200 million, engineering $60 million, leather $120 million and others. The growth trends in two-way trade are very encouraging and both governments are determined to work closely with the private sectors to enhance co-operation in trade, commerce, investments and other sectors.

http://www.thenews.com.pk/daily_detail.asp?id=40097

 

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Government wants to develop investor-friendly environment: Sindh Revenue Minister visits CDC

KARACHI (January 25 2007): The government intends to develop a clean, safe and investor-friendly environment in the country to attract more foreign investment, especially in Karachi which is the investment hub of the country.

This was stated by Sindh Minister for Revenue Dr Irfan Gul Magsi on his visit to Central Depository Company of Pakistan Limited (CDC) on Wednesday. He met representatives from the capital market for an informal discussion on matters of mutual concern.

He appreciated the efforts of CDC for development of the capital market and investor-protection and the extension of investment facilities all over the country by opening branches in cities like Hyderabad. He encouraged CDC to open more offices in cities like Sukkur, etc. He also deeply appreciated CDC's Investor Account Services meant for retail investors and said that these services should be promoted further. He said that the expected revenue from stamp duty on shares was insignificant and the negative perceptions in the market were based on misconception. However, the government has decided to withhold the imposition of stamp duty for two years, ha added.

Moreover, Dr Magsi remarked that the government would seek help from CDC in developing its IT infrastructure owing to CDC's experience as a large IT-based organisation of the country. Hanif Jakhura, CEO of CDC, briefed minister and others about the core functions and developments in CDC. He also thanked the government for putting the levy of stamp duty in abeyance.

He said that CDC has come a long way on its road to progress since it became operational. Time and again, it has proved as adherent of good corporate governance by continuously adapting its services to emerging market needs as well as equipping the present and potential generation of investors with knowledge and convenience in order to broaden the country's investor base, he said.

From holding educational road shows on capital market investment in distant cities of the country as well as in the UAE, CDC has come as far as hosting events of international significance like the recent, widely-acclaimed 10th Annual Meeting of Asia Pacific Central Securities Group (ACG). CDC is also acting as Secretariat of the ACG for this year.

CDC Chairman Basheer Janmohammed extended a hearty welcome to the minister appreciating his visit and praised him for his concern for the investment sector.

Jakhura said that CDC started operations in 1997, introducing paperless and instantaneous settlement of securities' transactions carried out at the country's stock exchanges by means of an electronic book-entry system offering the following benefits through its state-of-the-art IT infrastructure:

Reduced workload & manpower requirements due to paperless settlement Instantaneous transfer of ownership & direct credit of bonus, rights and new issues:

-- No risk of damage, loss, forgery or duplicate certificates

-- No impact in case of sudden increase in settlement volumes

-- Convenient pledging of securities

Today, the Central Depository Company is the only depository and one of the largest IT based companies in Pakistan, boasting over 37 billion securities worth over 1 .2 trillion rupees in its Central Depository System(CDS), which is around 73 percent of the total issued capital at KSE (excl GoP holdings).

Owing to its consistent efforts towards achieving the goal of a thriving capital market in the country, CDC boasts a position of prestige in the financial sector as the 'The Ultimate Custodian' of securities. The future seems even more promising for CDC as it is adhering to its core values of 'Reliability, Integrity, Transparency and Efficiency' and boasts a position of prestige in the financial sector remaining at the forefront of the capital market development.

http://www.brecorder.com/index.php?id=521285&currPageNo=1&query=&search=&term=&supDate=