Pakistan Economy - News & Updates - Archive

[Neo]

LoI issued to Chinese firm for $350 mln MTC: CDGK

ISLAMABAD: February 15, 2007: City Nazim Karachi Syed Mustafa Kamal on Thursday said that Mass Transit Corridor (MTC) project in the city is no more a dream now because practical work on it would commence during the current year.

Talking to a private television channel he said the study of the project has been completed and Letter of Intent (LoI) has been issued to a consortium of Chinese company which is due here soon to begin work.

He said it will be a big project worth $350 million providing instant travelling facility from Sohrab Goth to Tower area. The project was being talked about for the past 35 years but credit goes to local, provincial and the central governments that the long-standing dream of Karachiites will now materialise.

He said the federal government has committed sovereign guarantee of $150 million in the project adding the talks are underway with Karachi Port Trust (KPT) and Railways for the allocation of land for setting up of yard by the contractors.

The master plan for renovation of Karachi city is 99 percent complete and documents have been handed over to different stake holders to seek their opinion, he said.

He said that de-congestion of old areas, an industrial zone around every residential area, new airport, development of sea beach, provision of basic living facilities and services to the residents are some of the salient features in the plan.

The Asian Development Bank has pledged $800 million funding for the development of Karachi. He said with pragmatic approach of the city government, the ADB has found the master plan appropriate and we have given that plan to their consultant.

Karachi is presently an ideal place where massive infrastructure development is taking place. Keeping aside the assistance of ADB the city government is making efforts with the collaboration of provincial and central governments for infrastructure development, the nazim said.

A number of projects are presently under the process and massive economic activity is going on in the city, he said. He said three big underpasses and three bridges of international standard were built during the past eight months for smooth flow of traffic in the city.

The foreign direct investment worth $1.2 billion has been attracted in the city for three mega projects including 25.5 km Elevated Expressway with the cost of $350 million, Information Technology Tower worth $200 million, Mass Transit Corridor worth $350 million etc, he informed.

He said the mega projects are being run by the city government with fiscal assistance of provincial and central governments. The central government has allocated Rs. 6 billion while the provincial Rs. 5 billion in this respect, he added.

To a question he said there is no hard and fast rule to alleviate poverty overnight adding enhanced economic activity and infrastructure development are the steps which will bring vivid change in the living conditions of the people.

http://www.brecorder.com

 

[Neo]

Qatar keen to invest over $7 billion in Sindh, Ebad told

KARACHI: February 15, 2007: A high-level delegation of investors of Qatar, called on Sindh Governor Dr Ishrat-ul-Ebad Khan at the Governor House on Thursday and hinted at making an investment of over seven billion dollars in the province.

The delegation which was headed by Shaikh J. Yusuf Al-Thani and included Nasir Al-Ansari, Saifur Rehman and others.

Chief Secretary Fazlur Rehman, City Nazim Syed Mustafa Kamal, Principal Secretary Mohammed Saleem Khan, member Land Utilisation, Secretary Livestock and other officials were also present on the occasion.

The governor apprised the delegation about available investment opportunities in various sectors in the province.

The delegation showed interest in making investment in 7 and 5-star hotels, modern shopping plaza, offices and residential apartment buildings, 47-storeyed IT Tower, Mass Corridors and Cement Plants.

The officials identified the land for these projects which was liked by the investors.

The delegation also talked about a Dairy Project on 2000 acres of land in the interior of Sindh.

Governor Ishrat-ul-Ebad informed about the planning for six mass corridors as well as available facilities for dairy farming and cement plant.

Agreeing in principle to the aforesaid projects, decision was taken for undertaking joint ventures and early completion of other formalities.

The governor informed that for industrial purposes, land is being provided at only 25 percent price of market rate while steps have been taken for simplification of laws and regulations and provision of infrastructure.

http://www.brecorder.com

 

[Neo]

ABN AMRO to fund PNSC’s $150m ships deal

CBR exempts the corporation from income tax

By Azhar Mahmood

KARACHI: ABN AMRO bank has agreed to finance up to 90 per cent of total $150 million purchases of two Aframax oil tankers and one Panamax bulk carrier for the state-controlled Pakistan National Shipping Corporation.

Ships classified as Panamax are of the maximum dimensions that will fit through the locks of the Panama Canal. An Aframax is an oil tanker with capacity between 80,000 dwt and 120,000 dwt. It is mostly employed at harbours that are too small to accommodate VLCCs or very large crude carriers.

Sources of banking industry said on Wednesday in order to lower the cost of financing, Central Board of Revenue (CBR) has approved grant of income tax exemption to PNSC.

The CBR has also tax exempted “profit on debt” earned by ABN AMRO. All over the world, the purchase of all types of ships automatically gets exemption from payment of both direct and indirect taxes.

Since the clause 72-1 of agreement and exemption granted pursuant to it constitute a special incentive measure designed to promote economic development, the “profit on debt” qualifies for tax sparing credit set forth in article 22-4 of the agreement.

The tax exemption under these financing arrangements has been granted under Article 22-4 of the agreement for avoidance of double taxation inked between Pakistan and Netherlands.

Sources said the Finance Division, Ministry of Finance has informed the CBR that the nature of the loan will be commercial and it has approved granting of income tax exemption by also concurrently invoking clause 72-1 of part-1 of the second schedule of the income tax ordinance, 2001.

This implies that “all payments (of the loan) to be made by the PNSC under the loan agreement would be exempted from income tax.”

This special clause of the income tax ordinance was inserted as an incentive for projects of national importance and promoting economic development following industrial investment, expansion and modernization.

Consequent upon approval from the ministry of finance, the income from “profit on debt” of ABN AMRO Bank has been exempted from tax.

ABN AMRO funding will be in foreign currency and it will constitute 90 percent of the total acquisition cost.

Government of Pakistan has not granted its guarantee to the loan, which means that the foreign bank has accepted the commercial viability of the state controlled Shipping Corporation.

By 2010, PNSC has to meet the International Maritime Organization regulations and the purchase of oil tankers is necessary and PNSC to induct to double hull oil tankers.

At present federal government controls, 89.13 percent shareholdings of the PNSC, .

To meet the country’s bulk imports of raw materials such as coke, coal, iron ore and grains, PNSC requires more bulk carriers in its fleet.

PNSC has one bulk carrier and the bulk trade handling is being managed through foreign flag vessels, resulting in outflow of foreign exchange.

The acquisition of these new carriers will enhance the share of PNSC in total sea borne trade of the country.

http://www.thenews.com.pk/daily_detail.asp?id=42802

 

[Janbaz]

China Mobile invests $800m in Pakistan

ISLAMABAD (APP) - China Mobile has formally acquired Pakistan’s fifth largest cell phone carrier Paktel, offering an investment of about $800 million.
In this connection, the acquisition ceremony was held at the Chinese embassy that was addressed among others by Federal Information Technology Minister Awais Ahmad Khan Leghari, Minister of State Ishaq Khan Khakwani, Chinese Ambassador Zhang Chunxiang and China Mobile Communication Corporation Chief Executive Wang Jianzhou.
Awais Leghari pointed out that it was highest-ever foreign investment by the Chinese company, to help Pakistan to further develop its telecom industry. This major project between the two countries was matured due to personal interest taken at the level of the President Pervez Musharraf and the Chinese President Hu Jintao.
“It also reflects the growing strategic partnership between the two friendly countries,” the minister said and hoped that more Chinese investment would be coming in Pakistan this year.
Reiterating strong desire of his country’s maximum participation in socio-economic uplift of Pakistan, the Chinese ambassador said their economic partnership would further boost in the years to come, covering all areas of common interest. In this connection, some other major projects are already in the pipeline, he added.
Chief of China Mobile lauded Pakistan rapid economic growth, and said it was attracting Chinese companies to expand their business network in Pakistan.
China Mobile paid $ 400 million in acquiring the Paktel, while it will invest another $400 million this year on running expenditure and for the expansion of the existing mobile network. China Mobile Communications Corp will buy 88.86 per cent of shares in Paktel Ltd, Pakistan’s fifth largest mobile carrier, the company’s listed unit.
As of Sept. 30, Paktel had 1.53 million total subscribers, up 62 percent from 944,718 the year prior, placing it fifth in terms of active subscribers.
China Mobile, how now acquired the Paktel with a commitment to provide best possible service to the subscribers, making it more efficient and effective. China Mobile Corporation had struck a deal with Millicom International Cellular under which the company would by 88.86% shares of Paktel limited.
The sources told APP that China Mobile Communications made its first cross-border acquisition, buying Paktel in Pakistan at an enterprise value of $460 million. It will pay Millicom of Sweden - which owns 88.86% of Paktel - a cash consideration of $284 million. The deal has been concluded in almost record time since Millicom announced it in November last year.
China is the world’s largest cell phone market measured in terms of number of users and China Mobile is at the forefront of that revolution with the world’slargest mobile subscriber base. It provides mobile telecommunications and relatedservices in 31 provinces in mainland China.
China Mobile China Mobile Communications is the largest mobile phone
operator in the world. This is the first entrance of any Chinese mobile company in the Pakistani market. Beijing is encouraging its leading business organizations to expand their businesses. As a result, China Mobile is expandingits operations and Paktel is its first successful acquisition, the sources added.
The sources further said that this is the first time that China Mobile has acquired a foreign telecommunication company of “strategic significance”. Last year, the Chinese telecommunication giant acquired all shares of Hong Kong’s fourth largest mobile operator.

The Nation.
http://www.nation.com.pk/daily/feb-2007/15/bnews2.php

 

[Neo]

ADB To Provide $3 Billion To Improve Pakistan's Power, Water Systems

KARACHI -(Dow Jones)- The Asian Development Bank, or ADB, will provide $3 billion to Pakistan over the next three years to improve the country's power and water infrastructure, a government statement said Thursday.

Peter Fedon, the Manila-based bank's country director, made the commitment during a meeting in Islamabad with Liaquat Ali Jatoi, Pakistan's minister for water and power, Pakistan's Ministry of Water and Power said in a statement.

The statement quoted Fedon as saying that the ADB's assistance will include $ 500 million for renewable energy development, $1.2 billion for power transmission enhancement, $800 million for water irrigation and $250 million for power distribution enhancement.

The rest of the money will be given for a number of technical assistance programs for capacity building and relevant studies, it added.

-By Imran Maqbool; Dow Jones Newswires; +92300-8229939; imran.maqbool@ dowjones.com

http://www.nasdaq.com/aspxcontent/N...CQDJON200702150953DOWJONESDJONLINE000740.htm&

 

[Janbaz]

Canadian firm may invest in oil

ISLAMABAD: President of Canadian Mustang Global Group Sheldon E Benson accompanied by members of his delegation called on Minister for Petroleum and Natural Resources, Amanullah Khan Jadoon here on Thursday and expressed his company’s desire to invest in fuel-related technologies. The Minister said the government was specifically focusing on the promotion of the oil and gas sector on modern lines and exploiting the indigenous resources aimed at cutting down the oil import bill. He said in order to overcome the environment pollution problems the government was encouraging the use of low sulphur content petroleum products in the country for achieving the Millennium Development Goals by December 2008.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=43017

 

[Janbaz]

'Trade between Pakistan and Switzerland up 50 percent during last year'

RECORDER REPORT
KARACHI (February 16 2007): Under Secretary of State of the Swiss Federal Department of Economy, Monika Burzi has said that Pakistan and Switzerland enjoyed good business relationship and the bilateral trade had grown at a rate of 50 percent during the past year. She is heading a high-level four-member trade delegation from Switzerland, which is visiting Pakistan.

In a media briefing, she said her visit was a fact finding mission about the business opportunities for Swiss businessmen in Pakistan. Swiss ambassador to Pakistan Markus Peter and Swiss Consul General in Karachi Martin Bienz were also present. The delegation spent a busy day in Karachi on Thursday, she said and added that the delegation called on Overseas Investors Chamber of Commerce & Industry (OICC&I) chief Salman Burney, who gave a presentation.

In presentation, Burney said the volume of investment in Pakistan has increased. He said legislation and its market size made the country the infrastructure. He said huge funds are assigned to upgrade facilities in industrial zones. These measures had made Karachi an ideal place to set up industries. The delegation met prominent businessmen of the city at a lunch where Karachi Chamber of Commerce and Industry President Majyd Aziz briefed them about what the city had to offer foreign investors.

The Swiss team also called on Chairman, Trade Development Authority of Pakistan (TDAP) Tariq Ikram, who briefed the Swiss visitors and said TDAP was set up to facilitate the trade and assist the businessmen explore and achieve new economic opportunities. He asked the Swiss team to tell the world that Pakistan was an excellent place for investments. He also asked the under-secretary of State of the Swiss Federal Department of Economy to inform Swiss businessmen about the opportunities in Pakistan.

Business Recorder.
http://www.brecorder.com/index.php?id=529188&currPageNo=1&query=&search=&term=&supDate=

 

[Janbaz]

Czech investors keen to invest in various sectors: envoy

RECORDER REPORT
PESHAWAR (February 16 2007): The ambassador of Czech Republic Alexander Lange said on Thursday that Czech investors are keen to invest in energy, hydropower generation, mines & minerals, oil & gas, textile and marble sectors.

Addressing a meeting of businessmen here at Sarhad Chamber of Commerce & Industry (SCCI) he said that Northern Areas (NAs) in general and some areas of NWFP in particular enjoy big potential for promotion of tourism. However, he called for taking measures for improvement in law & order and initiating of effective steps for provision of security to foreign tourists.

The SCCI president, Liaquat Ahmad Khan presided the meeting while senior vice president, Haji Mohammad Israr Saraf, members of executive committee, industrialists, traders and exporters also attended.

The Czech ambassador while expressing apprehensions regarding law and order situation said that the Republic of Czech termed incidents as accidents while in Pakistan every terrorist act has been linked with the activities of al Qaeda resulting in creation of concern amongst foreigners interested in coming to Pakistan.

He agreed on promotion of bilateral trade between Pakistan and Czech Republic and said that barter trade and imports would strengthen the economies of both countries. On recommendation of SCCI, he announced the issuance of Czech visas to the local business community on priority bases.

In his welcome address, the SCCI president, Liaquat Ahmad Khan said that as both countries had restored diplomatic relations with opening of embassies, therefore, the exchange of trade delegations, promotion of investment opportunities and co-operation in other sectors was also need of the hour.

He invited Czech investors to invest in marble, gems & jewellery, minerals, hydropower generation and other important sectors, saying Pakistan in general and NWFP in particular offer vast potential of investment in these sectors.

The SCCI chief stressed for simplification of the issuance of Czech visas for the investors of NWFP for promotion of trade relations between both states. He said that the promotion of trade relations would help improve economic and financial ties between both friendly countries.

Liaquat Ahmad Khan said Peshawar enjoy the status of golden gateway for trade relations with Afghanistan and Central Asian Republics (CARs). He said that a large number of daily use goods and construction materials are exported to Afghanistan every day from NWFP.

Business Recorder.
http://www.brecorder.com/index.php?id=529171&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Plan to enhance motorcycle manufacturing, export

ISLAMABAD (February 16 2007): The government has started negotiations with the stakeholders of motorcycle industry to develop a long-term plan, similar to the automotive policy, giving a clear roadmap for enhancing both the production and exports to the regional and African countries, sources told Business Recorder on Thursday.

To this effect, they said a meeting with the representatives of industry was held here at the Engineering Development Board (EDB) to discuss and workout a plan with a five-year pre-announced tariff policy.

When contacted, the sources in the industry said they were utilising less than half of the installed production capacity and sought reduction in input cost for export competitiveness. The industry has said they could enhance motorcycles export from 10,000 to 100,000 units by next five years, provided input cost was decreased, they added.

The government may also extend freight subsidy to the motorcycle industry on exports besides research and development allowance as the matter will be taken up with the Pakistan Trade Development Authority, Planning Commission and Competitiveness Support Fund, a joint fund developed by the Ministry of Finance and USAID to develop different sectors.

The EDB following a demand by the industry had prepared the freight subsidy proposal and sent it to the Ministry of Commerce. The motorcycle industry also sought research and development allowance at least five percent of the freight on board (FOB).

The Honda Japan had allowed the Honda Atlas Pakistan to export to the regional countries and the EDB wanted to get some freight subsidy for the company enabling it to increase its exports. An official of the EDB said the motorcycle was a heavy commodity and could be exported only in limited numbers with a huge cost impact. Hence, a proposal of getting some freight subsidy on the export of motorcycle was put up, he added.

They said that the motorcycle industry had outlined a five-year investment plan worth Rs 16.5 billion to raise its production to 1.2 million units by 2010-11. The plan is to export at least over 0.1 million by 2011 to Saarc, Gulf and African countries. At present, a limited volume of motorcycles, 7,062 are being exported to Bangladesh and export to Afghanistan will start soon.

The total strength of the industry, according to the statistics, is 48 assemblers and 1,530 vendors that employee 9,000 direct and 200,000 indirect employees for the production target of 740,000 units by 2006-07 with an investment of Rs 2 billion. The projected demand for 2007-8 is 830,000 and industry estimates another Rs 2 billion investment to meet the demand.

http://www.brecorder.com/index.php?id=529139&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

'Pakistan needs to improve image abroad to attract investment'

KARACHI (February 16 2007): German Consul General Hans-Jhoschin Kiderlen has said Pakistan needs to improve its image abroad to attract investment and recognition as a liberal, modern and progressing state.

He was talking on "Perception of Pakistan in German Public Opinion" at the SZBASIT Institute of Science and Technology on Thursday to highlight the weaker areas where co-operation was needed to augment relationship between Pakistan and Germany.

He said Pakistan doesn't carry a good image in Germany, as it is not exposed fully. The media of the two countries were still to work hard and project Pakistan. He said the German media covers Pakistan on specific occasion, which is not sufficient to depict the right picture of the country.

He said Pakistan is an ideal destination for investment but German investors know little about it. They need guidance and support, he added. The CG said Pakistan's image was bleak at the moment as people who matter didn't know about 'this' country and the potential it had which could be explored for mutual interest.

He said a country, which had not preserved its cultural heritage and had failed to come up to the international standard, needed a lot of support. "You have not been able to preserve your architecture and monuments. This may not be a worrisome situation for you but abroad it has its impact. People think a country unable to protect its cultural past is likely to be unable to maintain contacts with its friends."

He said, "Conserve your past, your monuments and your culture and projects it abroad so that your image could be changed." The CG said lack of interest in your own culture is a negative signal for outsiders. He said, "You need to project your culture to create interest in it among others." It would increase tourism, trade and commerce and would go a long way in changing perception of Pakistan among the people of Germany.

The consul general spoke at length about students, German language, need to learn it and exchange of opinion leaders among the two countries. "This will serve as ambassadors from one country visiting another," he added.

The CG said that media of the two countries should play its role and project Pakistan in Germany and Germany in Pakistan so that the people of the two countries could be educated properly. He said Pakistan's role in the fight against terrorism has been recognised in Germany. "But still a lot has to be done."

He said efforts should be made to portray a positive image of Pakistan highlighting the efforts against terrorism, its role in Afghanistan and its desire to develop an Islamic society tolerant to alien ideas in Afghanistan and in Pakistan. He said Pakistan was a misunderstood country. Little had been done to portray its image, which was correct, and existed in reality.

He said there should be exchanged of people specially students, media men and opinion leaders to foster relationship, and to facilitate depiction of right image of the two countries.

Kiderlen said he wanted improvement in the system so that the academics from Pakistan could get recognition in Germany. Dr Javaid Leghari, vice president and project director, SZABIST, also spoke on the occasion.

http://www.brecorder.com/index.php?id=529172&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

'Pakistan ranks 91 among 125 states in global competitiveness'

ISLAMABAD (February 16 2007): Pakistan's competitiveness is ranked 91 among 125 countries of the world. Its rating can improve by six to eight rankings annually, if it follows Competitiveness Support Fund's (CSF) Action Plan.

This was stated by CSF Chief Executive Officer Arthur Bayhan, while addressing a seminar at Pakistan Institute of Development Economics (PIDE) on "Initiative to upgrade competitiveness of Pakistan's economy" here on Wednesday.

According to the Global Competitiveness Report, Pakistan's position was 94 in 2005. It can achieve 60-65 ranking by the year 2010, with smooth progress of 6-8 ranking improvement per year, he added.

Competitiveness is very important and is the only answer for sustained economic growth as the world has entered globalisation and to tackle poverty, economic growth is the only solution, he stressed.

He said the World Economic Forum (WEF) and other such institutions provide a platform, which could help Pakistan improve its ranking. The Davos moot, regularly attended by the President Pervez Musharraf or Prime Minister Shaukat Aziz is encouraging and would help Pakistan achieve sustainable economic growth.

Presently, Pakistan's economic growth is advancing at 6.57 percent each year. This has an impact on the poverty by 1 percent every year, which means 1.6 million people each year come out of poverty.

He disclosed that first Competitiveness Report on Pakistan would be launched on March 3, 2007.

He said, the governments should not involve themselves in the business and termed the nationalisation of industry in Pakistan in 1970 as a big mistake. This, as a result, sent a negative message across the world that Pakistan is still a "poor" country, he added.

He pointed out that data dissemination in Pakistan is very poor and departments hesitate in supplying correct information. This attitude must be changed for identifying the problems, he said.

He presented analysis of the Pakistan's competitiveness ranking based on individual components: institutions-79; infrastructure-67; macro economics-86; market efficiency-54; technical readiness-89; innovaiton-60; business sophisticaiton-66 and education-104.

The ranking of health, he added, is also close to education.

When asked how market efficiency is placed better in the ranking, he said, there is dynamism in the private sector. Despite low rating, Pakistan business has dynamism, ability of innovation and business sophistication, which are good signs. Institutions, infrastructure, technical readiness and macro economy need more focus.

Giving some comparisons, he said, according to Global Competitiveness Index, Switzerland is number one, Finland 2, USA 6, Thailand 35, India 43, China 53 and Turkey 59.

While comparing with India on individual components of competitiveness, he said, it stands at 49th position in education, 31 in macro economy, 21-market efficiency, 26-innovation, 25-business sophistication and 49-education. However, in terms of infrastructure, India is ranked close to Pakistan showing 62nd position.

India is looking forward to achieving GDP growth of double-digits by virtue of accelerating its economic growth.

The comparison reveals that Thailand, which holds 35th ranking and has very improved status in most of the components, lacks in macro economy and its position is 88. Macro-economy is directly related to inflation, Bayhan said. Answering a question, he believed 85 percent of these indicators were correct.

Talking about CSF Action Plan, it aims at promoting broad understanding and support for government's economic reform agenda including provincial government leadership workshops, presentation on competitiveness to business leaders and orientation for local and international press. Moreover, it looks forward communicating priorities to relevant ministries and institutions ensuring timely provision of data to international sources. It is also meant ensuring accurate implementation of Executive Opinion Survey for the next Global Competitiveness Report-March 2007 and to focus CSF activities on high impact areas.

Giving details of CSF working, he said it focuses on three windows: technical assistance (sectoral and regulatory), matching grants (cluster development) and business incubators (venture capital). CSF is incorporating government, industry and academia in its projects for sustainable economic growth.

Under technical assistance, it focuses on removing obstacles from motorcycle industry, food processing units, fisheries, automotive industry and gender contribution to economic growth.

On a question, why textile is not included in its projects, he remarked that textile sector is standing on its own and is an established sector. Moreover, lot of investment has been made in this sector and it is not wise to put all your resources in one entity, he added. He stressed on human development skills, which are urgently required to meet the economic growth goals.

Responding to a question on skills of gems cutting, design, he said, CSF is running seven projects of technical institutes of gems cutting, design in Balochistan, marble in NWFP, and surgical instruments in Sialkot.

He strongly condemned private sector of always blaming and criticising the government for its non-supportive attitude and urged them to adopt research and training and having middle and long-term strategies to remain competitive internationally.

He said government role in business is only to provide conducive environment to business operated under regulatory frameworks. When asked if education alone is looked after properly, would Pakistan's ranking improve, he said that health and education both have 15 percent weightage and Pakistan lacks behind in both. If these two sectors are focused upon, Pakistan can achieve much better position in the competitiveness index. However, sustainable economic growth is possible when a balance between all components is maintained.

Arthur Bayhan said competitiveness of the country is measured through innovations and foreign investments. He said CSF is working with Smeda, Chambers of Commerce, corporate sector etc and also assisting regulating authorities and SECP etc for creating a better business environment.

http://www.brecorder.com/index.php?id=529158&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

UK to provide £480 million to fight social ills

ISLAMABAD (February 16 2007): The British government on Thursday praised Pakistan's economic management and progress on poverty alleviation initiatives and economic growth, but feared that the risk of corruption is substantial. The country still has a daunting task ahead to fight illiteracy, high mortality rate and pulling 38 million population out of poverty, it hinted.

Dr Yousaf Samiullah, the head of Department For International Development (DFID) while briefing newsmen here at his office said to fight these social ills, the British government, for the period 2008-11, would provide about million 480 pound sterling, but with some conditionalities, which Yousaf termed as benchmarks ie ensuring meeting Millennium Development Goals (MDGs), human rights and accountability.

Illiteracy is rampant in Pakistan; 30,000 maternal deaths occurs each year; polio cases resurfaced and over half a million children die each year before reaching their fifth birthday. DFID want to bring it to zero, Yousaf said and negated a common conception found among some poor segments by saying "polio eradication is not a western domination plan".

DFID and Pakistan have recently signed a ten-year Memorandum of Understanding (MoU) according to which the former would provide financial assistance for poverty reduction in the country. This is a roll on plan, and its financing would depend on meeting some social obligations regarding MDGs, human rights and anti-corruption activities.

To a question, he said that 'war on terror' was not an explicit part of the plan and DFID is regulated for sustainable poverty alleviation through enhancing literacy, health and other social interventions. Yousaf said that during the last five to six years in Pakistan, accountability, responsiveness and service delivery has comparatively sound and the general trend is moving in right direction.

http://www.brecorder.com/index.php?id=529214&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Shell to invest Rs 3 billion in retail stations' expansion

KARACHI (February 16 2007): Shell Pakistan Ltd will invest Rupees three billion in the expansion and upgrading of its retail stations in Pakistan. The managing director Shell Pakistan Zaivji Ismail Bin Abdullah stated this while briefing the newsmen about company's new future strategy here on Thursday.

He said Shell Pakistan will soon launch an exciting initiative for the motorists using compressed natural gas (CNG) in the country. He said Shell has been leading the way amongst the major oil marketing companies to meet the growing demand of CNG customers. The CNG expansion programme continues to be a part of Shell Pakistan's core strategy, he added.

He said, recently Shell Pakistan has also introduced the first ever state of the art CNG quantity assurance and systems at its CNG sites across the country.

http://www.brecorder.com/index.php?id=529176&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

February 16, 2007
Abu Dhabi to set up $5bn oil refinery

By Shahid Iqbal

KARACHI, Feb 15: Abu Dhabi will establish a $5 billion crude oil refinery in Pakistan, having a refining capacity of over 100 million barrels per year, reported Middle East’s leading newspaper Arab News on Thursday.

The newspaper quoted a senior official of the Consulate-General of Pakistan saying that Abu Dhabi-owned International Petroleum Investment Company (IPIC) will establish a $5-billion crude oil refinery in Pakistan.

A powerful delegation from Pakistan, led by the petroleum secretary, Ahmed Waqar, held talks with high-ups in the IPIC.

The newspaper quoted Press Consul Dr Mohammad Zafar Iqbal as saying that the Abu Dhabi IPCI agreed to set up Khalifa Coastal Refinery in Hub, Balochistan.

The refinery will have a capacity to refine 102.7 million barrels of crude oil per annum.

The IPIC will hold 74 per cent while the Pakistan government will own 26 per cent stake in the project, Iqbal said.

The ground-breaking ceremony of the project will take place next month. General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, is expected to visit Pakistan to lay the foundation for the mega project.

Iqbal said the refinery would substantially boost Pakistan’s capacity to refine crude and also create job opportunities for thousands of skilled and unskilled people in the country.

Iqbal said the ground-breaking ceremony would be attended by senior officials from the UAE, including Abu Dhabi’s Crown Prince.

Pakistan Ambassador to the UAE Ahsanullah Khan, Pakistan’s Ministry of Petroleum director-general Sabar Hussain, Parco Managing Director Rasheed Jhang and senior IPIC officials, including Khadim Al-Kubeisi, attended the meeting.

The economic growth in Pakistan has created vast opportunities for oil refining companies to make money as energy demand is rising sharply. It is not only the oil and gas but the power sector has also great potential to yield huge profits for investors.

Pakistan mostly depends on imported crude oil to get refined products.

Experts said that Pakistan provides great support to refineries as the government does not tax crude oil at import stage and tax is imposed on sales in the market. Pakistan pays largest import bill to import petroleum products.

Pakistan is also desperately looking for huge investment in power sector as the demand for electricity is increasing and may turn into crisis if the demand is not met by 2009-10.

http://www.dawn.com/2007/02/16/ebr2.htm

 

[Owais]

Indian cotton demand in Pakistan increasing: huge shipments ordered

ISLAMABAD (February 16 2007): Pakistan textile industry prefers Indian lint over local cotton as almost all major groups are placing orders to Indian traders for huge cotton shipments. Indian cotton costs more in Pakistan but better quality and comparatively more finished product in term of weight makes it attractive for the textile industry.

A textile industrialist said, "The Indian cotton costs Rs 150 to Rs 200 per maund more in Pakistan but it gives a fine product at the end with better weight and these things are now increasing Indian cotton demand in Pakistan."

Indian cotton shipments are making their way into Pakistan through Mumbai-Oman-Karachi route as option of Wagah route is still not available for cotton trade between India and Pakistan. Nishat Textile Mills and Riaz Textile Mills purchased 50,000 tonnes in two different deals from Indian Cotton Houses and their partial shipments have already reached Pakistan.

Sources said Nishat Textile Mills used Wagah border option and its shipment was withheld by the Customs at the border. The controversy persisted for three weeks. The importer took the matter up with the higher authorities in Islamabad, whose intervention worked in his favour and finally the customs allowed entry.

This has given hopes to other Pakistani textile groups that the government may allow import of cotton from India via Wagah once the local picking season ends by the end of the current month.

The textile industrialists claim that they prefer Indian cotton over the local production this year for two reasons-better quality and less contamination. Quality matter to textile industry perhaps more than other sectors and for the same reason major Pakistani textile groups are looking towards India and other markets such as Brazil and South Africa to get better quality cotton for making quality products.

Quality cotton is a question mark for Pakistan, although the government tried invain recently to educate the growers and ginners to produce contamination free cotton. Their end result was zero. The government growers and ginners blame each other for the failure but the fact is that contaminated cotton is harming their interest.

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