Pakistan Economy - News & Updates - Archive

[Neo]

CBR sees tax to GDP ratio at 14.2pc

ISLAMABAD: Chairman Central Board of Revenue (CBR) and Secretary Revenue division, M Abdullah Yusuf said on Friday that his organisation has devised a ten-year vision plan aiming at to enhance current tax to GDP ratio from 9.2 per cent to 14.2 per cent.

He stated this while addressing a press conference at CBR House on Friday.

The chairman told newsmen that President General Pervez Musharraf and Prime Minister Shaukat Aziz held a meeting with the entire economic team of the government here the other day where the performance of CBR and its reforms process and future plans were thoroughly discussed.

Yusuf said that the president and the prime minister were appraised of the performance of the CBR so far achieved and its future plans and reform process which is critical for the success of the organisation.

He said that unless and until if the tax machinery is not properly gear up, equipped and tools of business are not provided whether it is infrastructure or other-thing which it requires you cannot achieve the objective successfully.

The chairman said that his organisation has for the first time produced a medium to long strategy as a recommendation for the government to consider.

He said that under the strategy the CBR has set some projections for the next ten-year tax to GDP ratio will be increased to 5 per cent enhancing the current ratio of 9.2 percent to 14.2 per cent.

He added that if this plan is successfully enforced and implemented the government would be able to achieve the projected target in the next 10-year.

Yusuf said that this will also prove a historic change in the revenue base of the country.

He added the strategy was shared with the president, prime minister that what do “we visualised in terms of the revenue generation and what do we plan in terms of revenue generation”.

Yusuf said, “By and large we were meeting the nominal growth of GDP from year to year our level of mobilisation of revenue was around the same level and that since the independence of Pakistan there was no material difference in the tax to GDP ratio”.

The chairman said that keeping in view this situation this plan is forward-looking and progressive in achieving our goals.

http://www.thenews.com.pk/daily_detail.asp?id=44180

 

[Neo]

February 24, 2007
ADB’s help to reform pension, insurance system sought

ISLAMABAD, Feb 23: Prime Minister Shaukat Aziz has asked Asian Development Bank (ADB) to help Pakistan in restructuring of pension fund and insurance system on fast track.

The prime minister stated this while talking to ADB Director General Juan Miranda, who called on him here on Friday. The ADB delegation agreed to the suggestions made by the prime minister. Juan Miranda told the prime minister that ADB would enhance its role in a number of areas and would provide $400 million soft financing for earthquake housing and $800m for building Expressway in Karachi.

The ADB DG said that his bank would also assist Pakistan in urban development and would assist fund programmes related to water, waste and sewerage management and urban management in Karachi and some towns of Sindh.

An official announcement said that the prime minister told the ADB director general that the successful implementation of wide-ranging structural reforms had put the economy back on the track of sustainable development.

Banking and financial sectors have made good progress and pension and insurance reforms are part of the second generation reforms being pushed by the government, he added.

He asked the ADB to enhance its role in the infrastructure strengthening and construction of water storages. He said the government was focusing on improving logistics chain to improve the competitiveness of local products.

The completion of National Trade Corridor (NTC) and building of North South Corridor will speed up the country’s industrial development, he added.

He said the government would build a series of industrial zones, cold chains and warehouses alongside the highways to expedite industrialisation.

He said Pakistan was using its unique geo-strategic location to promote regional cooperation.

“We are developing a network of infrastructure to leverage our position as a bridgehead for multiple corridors of cooperation involving energy, trade and transportation corridors,” the premier said.

http://www.dawn.com/2007/02/24/ebr5.htm

 

[Neo]

Saturday, February 24, 2007

Export of services unable to sustain growth pattern in Dec

By Tanveer Ahmed

KARACHI: The export of services was not able to sustain the growth pattern in December of the current financial year, compared with its preceding month of November, as export of major categories registered a substantial downturn.

The robust growth in the month of November in the export of government services and royalties & license fees, had helped to reduce the growing trade deficit in foreign trade of services to some extent.

According to the latest details of the services sector export released by the Federal Bureau of Statistics (FBS), the export of government services, which saw phenomenal gains in November, slumped heavily in December and was down by almost 90 percent.

The breakup of export of services in the first-half of the current financial year also showed a dismal performance, due to under-performance of the services export in December.

Overall, the total services export dipped by almost 50 percent in December 2006 compared to its preceding month, while in the first six months, it fell by 12.15 percent compared to the corresponding period of the previous year.

Details show that export of government services, travel services, transportation services and financial services stood in deficit by registering a major fall in December 2006.

The export of communication services, construction services, computer and information services, royalties & licenses, other business services recorded gains in the period under review.

Transportation services export posted a negative growth 7.28 percent in month of December, travel services by 8.30 percent, construction services by 0.82 percent and government services by almost 90 percent.

Communication services export increased by 28.43 percent, insurance services by 4.52 percent, computer and information services by 22.47 percent and other business services by 72.55 percent.

An analyst of foreign trade said that the export performance of services sector in the month of December reflected that strategies to enhance the export of this sector were unable to work out, despite the fact that there is vast potential to increase export in this regard.

Pointing out a number of issues confronting the country’s export of services, he said that the big hurdle so far continued to be the image of the country abroad, which is hindering its growth.

He particularly referred to financial, construction and some business such as computer and information technology, engineering and legal and accounting services, which are in big demand around the world, however the country’s share is almost negligible.

He said that although there was some recovery in the month of November, the dismal performance of the export of services in December depicted that there is lack of sustainability in it and policies regarding it are inadequate.

An analyst said that so far, this sector has remained narrow-based as only government services make a major part in it, which depend largely on defence services, whereas other potential areas in this regard remained untapped.

He pointed out that thriving economic activities also contribute in attracting foreigners to visit the country as more people visit in these conditions, resulting a boost in services export.

The country’s services export is confronted by the issues like quality, acceptance of professional qualifications, visa restrictions and above all the image of the country in the world. Also, the tariff and non-tariff barriers are also big hurdles in the way of Pakistan’s services providers to penetrate in the international market.

http://www.dailytimes.com.pk/default.asp?page=2007\02\24\story_24-2-2007_pg5_2

 

[Neo]

Saturday, February 24, 2007

ADB to provide $1200m for uplift projects

ISLAMABAD: The Asian Development Bank (ADB) will provide $400 million in soft loans for earthquake housing projects and $800 million for an expressway in Karachi and various programmes related to water, waste and sewerage management, ADB Director General, Juan Miranda, said Friday.

He said this while speaking during a meeting with Prime Minister Shaukat Aziz. The prime minister said that the successful implementation of wide-ranging structural reforms had put the economy back on the track of sustainable development. “Banking and financial sectors have made good progress and pension and insurance are part of the second-generation reforms being pushed by the government,” he said.

The PM asked the ADB to enhance its role in strengthening infrastructure development projects. He said that the government was focusing on improving the logistics chain to improve the “competitiveness of products”. The completion of the National Trade Corridor Plan and the building of the North South Corridor will remove roadblocks in industrial development and trade enhancement, Aziz said, adding that the government will build a series of industrial zones and warehouses alongside highways in order to expedite industrialisation.

http://www.dailytimes.com.pk/default.asp?page=2007\02\24\story_24-2-2007_pg7_34

 

[Neo]

Pakistan to achieve seven percent GDP growth target: S&P

KARACHI (February 25 2007): Standard and Poor's has forecast that Pakistan's growth prospects would remain strong during the current fiscal year and it would achieve its Gross Domestic Production (GDP) growth target of 7 percent.

The report on Pakistan's economy, issued on Saturday, said that Pakistan would achieve real GDP growth of more than 7 percent, against 6.6 percent of last fiscal year. However, current fiscal year growth would depend on the continuation of structural reforms and higher private investment, it added. Standard & Poor's Ratings Services reaffirmed its 'B+' for foreign currency and 'BB' for local currency long-term ratings and its 'B' short-term sovereign rating for Pakistan.

In the medium term, the economy should be able to grow at about 7 percent, as structural reforms, privatisation, and the gradual deepening of external trade links are likely to produce incremental gains, the report added.

Growth prospects are also underpinned by the rising participation of foreign direct investors in the economy, which yields knowledge transfer and efficiency gains. The report emphasises, that to boost the growth rates beyond these levels, the government would have to address still significant infrastructure and power supply deficiencies, bureaucratic red tape, and security concerns to improve investor confidence.

It says that during the current fiscal year 2007 Pakistan's exports growth would be 8 percent as compared to 12.9 percent during last fiscal year, while the unemployment rate would be lower than 2006 to 7.1 percent from year's 7.7 percent.

In addition, the country's real investment and consumer price index growth would be 5.7 percent and 6.5 percent, respectively, as compared to 10.3 percent and 8.1 percent, respectively, in same period of last year.

The report said that during 2006-07, Pakistan's growth rate eased back to a still stronger 6.6 percent following the record 8.4 percent in 2005-06. "Pakistan economy's structural transformation thus appears well advanced, and the expectation is that the process will continue under the current administration. Results of these reforms are manifested in the robust growth rates of recent years as compared to the stagnancy of the 1990s, with GDP growth averaging 4.3 percent during past five years," the report said.

It said that despite the fast pace of per capita GDP growth over recent years, Pakistan remains a low-income country with per capita GDP of $806 at the end of fiscal year 2006.

It said that it also reflects the likelihood that Pakistan will continue to enjoy the economic benefits of its close political relationship with the US, including support from official creditors. Looking ahead, the report says that the rating of 'B+' can improve if the government can sustain structural reforms so as to create a virtuous cycle of economic growth, job creation, poverty reduction, and a falling debt burden.

http://www.brecorder.com/index.php?id=532426&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

'Uplift package to herald new prosperous era'

ISLAMABAD (February 25 2007): Prime Minister Shaukat Aziz on Saturday said the unprecedented development package announced by the government for Islamabad will usher in a new era of prosperity in the federal capital and its adjoining areas. He was talking to Dr Muhammad Amjad President, PML Islamabad who called on him this evening.

The meeting was also attended by Chief Whip, Sardar Nasrullah Khan Dareshak and Special Assistant to the Prime Minister, Commander Khalil-ur-Rahman(Retd). The PM said Islamabad being the federal capital along with its surrounding rural areas which are part of the federal capital territory is a focus of government's attention.

He said massive programmes have been initiated for building roads and underpasses and providing basic necessities of health care, education, clean drinking water and sewerage to the people in these areas.

Shaukat particularly mentioned that the development package for Islamabad which totals Rs 8.3 billion provides ample funds for the rural areas of Islamabad as well as the city. He said this will transform the face of the city and make all modern facilities available to its residents both in the rural as well as urban areas.

He said the government is also working on improving traffic management system in the city. He said several new hotels are being constructed in Islamabad which will made the city a hub of conferences, tourism and commercial activity.

He said because of increased development activity in Islamabad, in both urban and rural areas employment opportunities for the people are being created and their access to basic necessities of life is being improved.

Dr Amjad updated the Prime Minister on PML's activities in Islamabad including provision of facilities to the residents, the enrolment drive and the public contact campaign in both urban and rural areas.

http://www.brecorder.com/index.php?id=532463&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

July-Jan 06/07 export increased by 3.86 percent

KARACHI: February 24, 2007: Pakistan's exports during July-January, 2006-2007 recorded an increase of 3.86 percent to $9.630 billion over last year's $9.272 billion.

According to the provisional figures compiled by the Federal Bureau of Statistics, exports from Pakistan, exports decreased by 21.10 percent in January, 2007 to $1.197 billion when compared with December, 2006 $1.517 billion and by 2.24 percent as compared to January, 2006 $1.225 billion.

Exports during July-January, 2006-2007 totalled at Rs 583.521 billion as against Rs 553.873 billion during the corresponding period of last year showing an increase of 5.35 percent.

During January, 2007, exports amounted to Rs 72.887 billion as against Rs 92.389 billion in December, 2006 and Rs 73.284 billion during January, 2006 showing a decrease of 21.11 percent over December, 2006 and of 0.54 percent over January, 2006.

Main commodities of exports during January, 2007 were bedwear (Rs. 8,355 million), cotton cloth (Rs.8,322 million), knitwear (Rs.7,948 million), readymade garments (Rs.6,489 million), cotton yarn (Rs.6,238 million), rice basmati (Rs.3,100 million), art, silk and synthetic textile (Rs.2,929 million), rice others (Rs.2,590 million), madeup (Rs.1,945 million and towels (Rs.1,902 million).

Imports during July-January, 2006-2007 totalled at $17.225 billion as against $15.795 billion during the corresponding period of last year showing an increase of 9.05 percent.

In January 2007, imports decreased by 9.13 percent to $2.330 billion as compared to December, 2006 $2.564 billion but increased by 8.66 percent as compared to January, 2006 $2.144 billion.

Imports during July-January, 2006-2007 totalled Rs 1.044 billion as against Rs 943.599 billion during the corresponding period of last year showing an increase of 10.62 percent.

Imports during January, 2007 amounted to Rs 141.851 billion as against Rs 156.128 billion in December, 2006 and Rs 128.316 billion during January, 2006 showing a decrease of 9.14 percent over December, 2006 but an increase of 10.55 percent over January, 2006.

Main commodities of imports during January, 2007 were petroleum crude (Rs.15,194 million), petroleum products (Rs.13,171 million), other apparatus (telecom) Rs.7,409 million), plastic materials (Rs.5,819 million), raw cotton (Rs.5,597 million), iron and steel (Rs.5,130 million), aircraft, ships and boats (Rs.4,164 million), palm oil (Rs.3,757 million), mobile phone (Rs.3,598 million) and electrical machinery and apparatus (Rs.3,190 million).

The balance of trade figures cumulative from July-January, 2006-2007 were (-) 460,314 billion in terms of Rupees and (-) 7.595 billion in US dollars.

Based on the provisional figures of imports and exports the balance of trade in January, 2007 was (-) 68.964 billion in terms of rupees and (-) 1.133 billion in US dollars.

http://www.brecorder.com/

 

[Neo]

HSBS to invest $20 million in Pakistan

KARACHI: February 24, 2007 Hong Kong Shanghai Bank Corporation (HSBC) is planning to invest $20 to 25 million in next two years in Pakistan to enhance its presence in this fast growing market.

This was stated by the deputy chairman and CEO of HSBC Middle East, Niall S K Booker during a meeting with the chief executive, Trade Development Authority of Pakistan (TDAP).

According to TDAP here Saturday, he discussed the plans of the bank for strengthening its market share and presence in Pakistan over the next 18-24 months.

He said that HSBC had already opened a branch in Clifton as part of their expansion program in Pakistan.

Booker said that HSBC was renowned the world over for its innovative and trade friendly financial products it provides in the export driven economies.

He suggested that Pakistan should have a comprehensive program of managing perceptions about the country's image which will have a direct bearing on its trade promotion success

http://www.brecorder.com/

 

[Neo]

February 25, 2007
Hubco to set up new 210mw power plant

By Dilawar Hussain

KARACHI, Feb 24: The Hub Power Company Limited (Hubco) last week forwarded to the Private Power and Infrastructure Board (PPIB) the pre-feasibility documents for setting up a 210MW new power plant.

The company already operates the country’s biggest independent power plant (IPP) with net capacity of 1,200mw located in tehsil Hub, district Lasbela, Balochistan.

A senior official confirmed that all formalities on the part of the company had been completed and he expected PPIB/Nepra to extend the necessary Letter of Support (LoS) within the next 15 days to a month. He said that for fast-track projects, the upfront tariff was 11.9713 cents, but the company would expect an upward revision in case other competitors were offered higher tariffs. At least five other parties are understood to be looking up for setting up IPPs of their own.

Chief Executive of Hubco, Mr. Javed Mahmood, in answer to a query said that world-wide it was the sellers’ market for power generation machinery since it was the manufacturers who dictated costs and terms. He said that Hubco would have edge in acquisition as well as delivery due to the good reputation that the company and its parent enjoy in skill, efficiency and reliability.

The CEO of Hubco would not disclose the location of the new plant but hinted that it would neither be in Karachi, nor in Balochistan. He also did not say what the cost of the project would be. “It is material information and would be disseminated to all at the right time,” he said. But Mr. Mahmood emphasised: “We are absolutely committed to Pakistan and would like to expand our activities in this country.”

In his annual report for the year ended June 30, 2006, issued on Aug 10, 2006, Chairman of Hubco, Mohammed A. Alireza wrote: “The company is looking forward at active participation in the competitive bidding for the three power projects (in Uch 2, Faisalabad and Lahore) launched by the government last year for which we are already qualified.”

The chairman also said that the company in association with other international companies had submitted documents for pre-qualification in the forthcoming privatisation of Sui Southern Gas Company (SSGC).

The Hubco CEO, Mr Mahmood observed that in case of a new IPP, the pre-development costs were very high. So the question is: Does Hubco has the means to be able to finance all its ambitious projects?

Analysts at Arif Habib Securities in their February 8 report reviewing company’s HY07 accounts, wrote: “Hubco is a cash rich company and profit distribution to its shareholders is based on the free cash flows of the firm (after retiring the financial obligations) instead of following the conventional accounting approach (based on earnings)”

The analysts noted: “As per FY06 accounts, the company has low-leveraged balance sheet with long-term debts accounting for 31 per cent of balance sheet items and the debt to equity ratio at 45:55, hence providing the company ample opportunity for debt financing projects.”

But most analysts thought that the company would not want to rely on just one but opt for a mix of debt and equity.

http://www.dawn.com/2007/02/25/ebr1.htm

 

[Neo]

February 25, 2007
Export of major items down by 20pc

By Mubarak Zeb Khan

ISLAMABAD, Feb 24: Exports of traditional domestic items like rice, carpets, sports goods, surgical instruments, leather, and footwear declined by more than 20 per cent during the first seven months (July 2006-January 2007) of the fiscal 2006-07 against figures for the same period last year.

However, data compiled by the commerce ministry showed an upward trend in exports of other commodities like cement, gur and gur products, jewellery, precious and semi-precious gems and engineering goods. These products’ export recorded a double-digit growth during the same period by comparison with last year’s figures.

Pakistan, once renowned for its exports of high-quality of traditional products like footballs and surgical instruments and leather products, has been losing its foothold in international markets for the past couple of years, but the government has not yet taken any remedial action like granting subsidies to these sectors. At present, subsidy is only allowed to textile-based industries.

Official figures showed that the export of rice, with the exception of Basmati, dipped by 2.87 per cent during the period under review. The export of Basmati rice, however, soared by 24.39 per cent. Export of other rice, however, dropped by 22.67 per cent during the same period.

The export of sports goods declined by 18 per cent during the first seven months of the outgoing fiscal against figures for the same period last year. Football export declined by 20.67 per cent but exports of gloves surged by 120.23 per cent during the same period.

The export of carpets, rugs and mats recorded a negative growth of 13.92 per cent, and leather goods (garments and gloves) by 33.21 per cent during the first seven months of the current fiscal year over the last year’s figures. Leather garments’ exports declined by 32.33 per cent, leather gloves 27.28 per cent and other leather goods by 51.65 per cent.

Footwear export declined by 17.30 per cent during the July 2006-Jan 2007 over the same period last year. Of these, exports of leather footwear dipped 18.34 per cent, canvas footwear 27.49 per cent and other footwear 6.63 per cent. Exports of surgical instruments and medical equipment declined by 34.81 per cent.

The data compiled by the commerce ministry also showed that the exports of engineering goods rose up by 3.76 pc, automobile parts 12.61 per cent, cement 18.85 per cent, gems 14.02 per cent, jewellery 25.41 per cent, gur and gur products 18.62 per cent and molasses 26.36 per cent during the seven-month period of over the last year’s figures.

http://www.dawn.com/2007/02/25/top4.htm

 

[Neo]

A groundbreaking deal

IT’S a win-win situation: the signing of an accord on Friday between Pakistan and India in Islamabad on sharing equal quantities of natural gas to be piped in from Iran in the first phase of the trilateral project is a significant step towards regional cooperation. Iran’s representative was also in Islamabad to witness the groundbreaking India-Pakistan accord. Now that this tricky hurdle has been removed, work on laying the pipeline through Pakistan’s territory is to begin any time soon. The first phase of the project is expected to be implemented in about three years’ time, enabling Pakistan to right away plug into an additional supply of 1.05 billion cubic feet (BCF) of natural gas on a daily basis. This will ease the burden placed on indigenous natural gas whose supplies are depleting as a result of rising demand. The 2,200 kilometre gas pipeline through Pakistan will also enable India to plug into an equal share of a total of 2.1 BCF gas to be supplied by the project initially. India plans to obtain a total supply of 3.2 BCF for the next 30 years, which will necessitate the expansion of the gas pipeline in the second phase of the project.

Pakistan, Iran and India have over the preceding years struggled to arrive at an acceptable formula to see the mega energy project through. Besides an evasive agreement on gas pricing, it was primarily politics that hampered progress on the project for months. India had concerns over the passage of the pipeline through Pakistani territory and an uninterrupted gas supply, for which Iran became a neutral guarantor. This, as in the case of World Bank arbitration through a neutral expert in the Baghlihar Dam dispute, goes to show that involving a third party can help bridge the confidence gap that exists between Pakistan and India. Once both countries accepted Iran’s role as a guarantor of the pipeline, differences with Tehran over pricing were resolved to the satisfaction of all three parties. Iran’s concession over gas pricing to the South Asian neighbours came as a counter move to the pressure the US tried to exert on India and Pakistan, asking them not to go through with the deal. It is good that both Islamabad and New Delhi stood up to American pressure and dismissed any backtracking on a project vital to both the countries’ existing and future energy needs. Not doing so would have made South Asia a party to Washington’s row with Iran over the latter’s nuclear programme which Tehran insists has no military dimension.

The building of the pipeline through Pakistani territory is estimated to cost around seven billion dollars in the initial phase, a project that the country will be able to fund through transit fees to be generated in the initial years by the Indian component of the deal. Any future expansion based on India’s growing needs for energy could likewise be financed, leaving Pakistan with no extra burden in the form of loans from international financial institutions, which are readily influenced by Washington. The successful completion of the Iran-Pakistan-India pipeline project will also mark a new beginning towards regional development and cooperation sidelining the global political ambitions of the sole superpower trying to reshape the world to suit its own exigencies.

http://www.dawn.com/2007/02/25/ed.htm#1

 

[Neo]

Sunday, February 25, 2007

Work on three coal-fired power plants in Sindh begins

KARACHI: Three coal-fired power plants would start operation in Sindh in the next two and half a year, as the physical work on these power plants in Thatta, Jamshoro and Tharparkar district has started.

The physical work on 300MW power plant at Sonda coalfield near Jhirak, district Thatta at a cost of $450 million, 150MW power plant costing $250 million at Lakhra coal field, district Jamshoro and 1000MW power plant costing $1.2 billion in Tharparkar has started.

Sindh Governor Dr Ishratulul Ibad Khan and Provincial Minister for Mines & Mineral Development Irfan Marwat Saturday in a meeting reviewed the progress of the projects.

The foreign investors working on these projects have been made to provide job opportunities essentially to the locals. In case skilled workers are required, the investors would also impart training to the local people.

Governor Ibad said that at least eight thousand people would directly get the jobs after the three projects become operational.

http://www.dailytimes.com.pk/default.asp?page=2007\02\25\story_25-2-2007_pg5_4

 

[Neo]

UAE trade with Pakistan to hit $5.1 billion by June
BY MUZAFFAR RIZVI

25 February 2007

DUBAI — Trade between the UAE and Pakistan is likely to post significant growth during the current financial year to cross $5 billion mark by June following a surge in exports to the UAE.

"The UAE-Pakistan trade is set to reach $5.1 billion (Dh18.71 billion) by the end of June, increased by 20 per cent over $4.1 billion in 2005-06," a senior official said.

"Pakistan's exports to the UAE have risen to $700 million during first half of current fiscal year (2006-07) as compared to $1.3 billion for full-year in 2005-06," he added.

Pakistan's exports to UAE were petroleum products worth $400 million, rice $250 million, textiles $200 million, engineering $60 million, leather $120 million and others.

During the last fiscal year the UAE's exports were $2.8 billion and imports from Pakistan were $1.3 billion, keeping the trade balance in favour of the UAE.

Bilateral trade volume between the two countries surged to $4.5 billion from $1.5 billion within the last five years.

The official further said that growth trends in two-way trade are very encouraging and both governments will continue to work closely with the private sectors to enhance co-operation in various sectors.

Major investment boost: "The UAE's investments in Pakistan will witness a major boost in 2007 in key sectors like energy, investment, trade, and manpower," he said.

A delegation of Pak-UAE Business Council will soon visit UAE to attract top businessmen to benefit from business opportunities in Pakistan. The delegation will specifically discuss opportunities in livestock, dairies, fisheries and mining sectors and invite the UAE businesses to invest in these sectors, he added.

The UAE has already been investing billion of dollars in housing, telecommunication, hotel and banking sectors of Pakistan. It also contributed $1.5 billion in foreign direct investment last financial year out of the total amount of $3.8 billion.

"Major UAE groups are actively participating in Pakistan's privatisation programme in general and energy sector in particular," he said adding that the two countries are also increasing their relations in the manpower sector.

Manpower export: Pakistan has developed a strong base of trained, educated, skilled and professional manpower, which could meet the growing workforce needs of the UAE. The two countries signed MoU in the field of manpower in December last that would enable Pakistan to increase manpower export to the UAE.

"Pakistan exported 166,451 skill oriented persons during the last 11 months, out of which 91,675 went to UAE," a senior government official said.

http://www.khaleejtimes.com/Display...usiness_February749.xml&section=business&col=

 

[Owais]

Pakistan on high growth trajectory, says Prime Minister
ISLAMABAD (February 26 2007): Prime Minister Shaukat Aziz has said that the success of wide ranging structural reforms, consistency and continuity of policies have put Pakistan on a high growth trajectory leading to sustainable development and prosperity.

Talking to a delegation of DLA Piper Associates led by Lord Clement Jones, Member House of Lords at the PM House, he said the economic stability achieved by the country has enabled the government to regain its economic sovereignty and the independence to make decisions which are in the best interest of the country.

According to a press release, the Prime Minister said as a result of the multi-pronged strategy of the government and the enabling environment created by it, Pakistan is fast emerging as a destination of choice for investors and foreign investment reached its highest ever level of $3.8 billion last year.

He said in the first half of current year "we have received foreign investment of over $3 billion and by the end of the current financial year it is expected to cross $5 billion."

Prime Minister said Pakistan is one of the fastest growing economies in the region and hopes to sustain a growth rate of 6 to 8 percent.

He said Pakistan has a big demographic dividend, which is creating a middle class, high demand and high growth. He said this growing middle class with increased buying power presents a lucrative investment opportunity.

He said the success of the reform agenda is being increasingly recognised by various stakeholders and Pakistan has been included in the world's 10 best reformers by many surveys.

The delegation appreciated the progress made by Pakistan in the economic and social fields. They specifically mentioned the investment and privatisation policies pursued by the government and said that the country's economy is showing healthy results, which are globally appreciated.

The meeting was also attended by Minister of State for Information Tariq Azeem, Special Assistant to the Prime Minister Khalil-ur-Rehman and other officials.

http://brecorder.com/index.php?id=532707&currPageNo=1&query=&search=&term=&supDate=

 

[Owais]

9.14 percent increase in SPI over last year

ISLAMABAD (February 26 2007): The Sensitive Price Indicator (SPI) for the week ending on February 22 surged by 9.14 percent as compared to the corresponding week of last year. There was increase of 0.54 percent in the SPI from the previous week, which was 8.59 percent.

The income group up to Rs 3000 showed 10.62 percent increase on YoY, for Rs 3000-Rs 5000 10.14 percent, Rs 5000-Rs 12000 9.99 percent and group above Rs 12000 showed 8.15 percent increase. The Federal Bureau of Statistics (FBS) bulletin, based on 53 essential daily-use items from 17 urban centres, showed that 20 items showed increase in prices, six posted decrease, while 27 items did not show any change during the week.

Onions further increased by two percent from last week and showed 179 percent increase over the corresponding week of last year. Few other items of concern to poor were vegetable ghee, cooking oil and firewood, which were dearer by 12 percent, 12 percent and 13 percent respectively, YoY. Rice Basmati broken, rice Irri-6 have also seen some increase of 6 percent and 4 percent over the week and are higher by 21 percent and 25 percent respectively on YoY. Reports published on Sunday speak of Rs 10 per kg increase in different varieties of rice, though later there was minor decrease of Rs 2 per kilo at the end of the day.

However, tomatoes and potatoes were cheaper by 10 percent and 2 percent over the week and 62 percent and 24 percent respectively, on YoY.

The price of LPG cylinder, though lower during the week, was higher on YoY by 8 percent Its price has dropped by Rs 38 over a week from Rs 641 to Rs 603. But in Quetta it is Rs 670, Sukkur and Larkana also observe high price of Rs 660. The lowest price of LPG is in Karachi ie Rs 517.

Out of 53 items, 45 were costlier on Y-o-Y, of which 27 items showed double-digit increase. The significant items consumed by the lower income groups, which are dearer on Y-o-Y basis are: salt 19 percent; garlic 16 percent; gram pulse 50 percent; moong 21 percent; mash 37 percent; gur 6 percent; milk 13 percent; curd 11 percent; tea 13 percent; match box 23 percent; kerosene 7 percent and gas by 10 percent.
http://brecorder.com/index.php?id=532677&currPageNo=1&query=&search=&term=&supDate=