Pakistan Economy - News & Updates - Archive

[Neo]

Leader Universal developing power plant in Pakistan

PENANG: Leader Universal Holdings Bhd is developing a US$204mil heavy fuel oil diesel engine power plant in Gujranwala near Lahore in Pakistan, and construction is expected to commence next year.

Leader managing director Sean H'ng said at a press briefing that the tariff is being finalised now.

"We have been in negotiations with international banks. Seventy-five percent of project cost amounting to US$153mil would be raised via project finance.

"We expect to commence construction of the power plant next year. The target date for commercial operation is either in late 2009 or early 2010," he said.

H'ng said the power plant project was a joint-venture project undertaken with Gulshan Spinning Mills Limited, a member of the Gulistan group of companies in Pakistan.

The Gulistan group is one of the three large industrial business houses invited by the Government of Pakistan to fast track the development of new power generation plants, as the country needs an additional 5000 megawatts of power by year 2010.

"A company, Gujranwala Energy Limited, has been established to undertake the project.

"Leader holds a 49% equity stake in the company, while our partner holds the remaining 51%.

"The power generated will be sold to the National Transmission and Dispatch Company of the Pakistan government.

"The tenure of the power purchase agreement, in the form of 'take or pay' agreement, is for 25 years.

"The 'take or pay' agreement means that the Pakistan government will pay us regardless of whether they require us to generate electricity from the power plant.

"The estimated revenue from the project is about US$160mil per annum," he said.

http://biz.thestar.com.my/news/story.asp?file=/2007/3/8/business/20070308183927&sec=business

 

[Janbaz]

Trade deficit touches $8.8bn

By Israr Khan

ISLAMABAD: Pakistan’s trade deficit has gone up sharply to a new record high of $8.89 billion during the first eight months of the current fiscal year, which is about 18.47 percent higher than the corresponding period of last fiscal ($5.604 billion), The Federal Bureau of Statistics (FBS) reported on Thursday.

During July-February 2006-07, Pakistan’s exports totalled $10.90 billion and imports $19.79 billion against $10.5 billion and $18 billion, respectively recorded during the same period last year.

The provisional FBS data released reveal that during the period under review, Pakistan economy pulled in 9.95 percent more imports over the same period last fiscal, while, its exports rose only by 3.86 percent. Each month, the import growth exceeds exports steadily widening the trade gap.

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

The current trend of fast growth in imports and slow pace of exports indicates that the country would be unable to meet export target and surpass import target resulting in higher than expected trade gap.

In the first half of current fiscal, the country achieved 48.63 percent of exports and 70.70 percent of imports target. The huge import pressure and low exports growth envisages that by the end this fiscal the trade deficit would exceed the set target of $9.4 billion. It is pertinent to note that during the last fiscal 2005-06, the government had missed its exports target of $17 billion by a margin of $531 million.

The World Bank last week has also shown concern over Pakistan’s soaring trade deficit and cautioned, if not capped it may hurt sustainability of economic growth.

John Wall, former country director World Bank suggested Pakistan to take appropriate measures to augment its exports to achieve sustainability in economic growth.

Though trade deficit is considered as a good omen for growing economy (as our economic managers think) yet in Pakistan’s case John Wall said it is very large and requires immediate attention.

During February 2007, the local goods worth $1.29 billion have been exported, recording an increase of 5.45 percent against exports of $ 1.23 billion in the same month last year.

Imports have been recorded at $2.57 billion during February 2007, an increase of 16.37 percent as compared to $1.21 billion registered in February 2006.

However, comparing exports of February 2007 with the previous month, the bulletin reveals an increase of 8.24 percent as against exports of the previous month, which stood at $1.19 billion. While, the imports increased by 10.39 percent from $2.33 billion in January 2006.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=46061

 

[Janbaz]

Bad stuff, trade deficit hikes are not cool. 18.47% increase is just too much, better strategies should be initiated. If this goes on our growing economy will bear huge debts in the future? How can all this be balanced in harmony with our economic development?

 

[Owais]

Sino-Pak trade crosses $5 billion mark in 2006


BEIJING (updated on: March 10, 2007, 01:15 PST): The Sino-Pak trade crossed the $5 billion mark in the year 2006. According to figures provided by China Customs to Pakistan Mission here, Pakistan's exports to China registered a 21 per cent increase from $832 million in 2005 to over $1 billion in 2006.

The China's export to Pakistan also increased by 24 percent, from $3.42 billion in 2005 to $4.24 billion in 2006.

The major items that contributed to the export from Pakistan included Fish Product 18 percent , Leather and Leather goods 20 percent, Textile, Cotton and Cotton products 22 percent, plastic and articles 63 percent, ore and minerals 20 percent, Sports goods 39 percent, while copper registered 53 percent increase.

According to Commercial Counsellor, one of the reasons of the quantum leap in the trade between China and Pakistan was the successful implementation of Early Harvest Programme by the two countries.

brecorder.com

 

[Owais]

Minfal to facilitate $2 billion rice exports

KARACHI (March 10 2007): The Ministry of Food, Agriculture and Livestock (Minfal) has announced concrete measures, including an awareness campaign, to facilitate the achievement of $2 billion rice export target.

The media campaign is soon going to be launched to create awareness among farmers and all other stakeholders to get better yield and quality for export of cotton and rice and to earn more foreign exchange.

Minfal Minister Sikandar Hayat Khan Bosan during a meeting with members of Rice Exporters Association of Pakistan (Reap) announced allocation of required funds for the media campaign.

Mehboob Ahmed, Reap Managing Committee member briefed the minister about the issues regarding rice sowing, harvesting, milling, trading and exporting. He said that the Reap performance remained exceptionally well as the country's rice export crossed $1 billion mark during last fiscal year. New markets were explored and now the Pakistan's rice is being exported all over the world. The defunct Rice Export Corporation of Pakistan (RECP) had faced huge losses. However the Reap members paid millions of rupees to government on account of taxes.

He said that the Reap members had created 'export culture' in the country, especially in the villages. New opportunities were created for business and jobs in the country. The rice exporters also provided support to other related industries as the rice is packed in bags made of jute and cloth. "Indirectly, we are also exporting cloth and jute-made products and earn more foreign exchange for the country", he added.

Mehboob, who is also a leading rice exporter, said that the country's rice production was badly effected due to some reasons including poor shelling and milling, defective harvesting, deteriorating quality of seed and cultivation of different un-approved varieties of seeds.

He suggested that both rice research institutes should be run under private-public partnership. He said that absence of consistency in brand development was one of the major reasons, which was badly effecting rice exports. "The rice exporters develop a brand of rice and when it becomes popular the cultivation of the branded rice is ended", he said, and added that this was the major reason that Pakistani rice could not develop any permanent brand of rice in the international market.

The minister assured the rice exporters that the government would take all necessary steps to resolve these issues. He urged the exporters to ensure quality standard of rice to maximise exports from the country.

The minister said that meetings with the officials of Research Council and all stakeholders of rice would be called in next few days in Islamabad and Karachi to consider progress in research work on farming, harvesting, transportation, availability of quality seed and milling of rice in order to resolve the issues of all stakeholders, as the government intends to evolve a system where in all stakeholders would remain satisfied. Rice Commissioner Inayatullah Khan, Reap Chairman Abdul Aziz Maniya and other leading rice exporters were also present in the meeting.
http://brecorder.com/index.php?id=536829&currPageNo=1&query=&search=&term=&supDate=

 

[Owais]

Gawadar port to be functional by March 20: Ghauri
GWADAR (March 10 2007): Federal Minister for Ports and Shipping Babar Ghauri on Friday said the Gwadar Deep Sea Port would be functional from March 20. Talking to journalists during his visit here, he said on March 19, 2007 a meeting of the federal cabinet would be held at Gwadar with Prime Minister Shaukat Aziz in the chair.

He said that on March 20, 2007 after formal inauguration, the Gwadar Port would be functional. He said that a PNSC ship Sibi carrying cargo from Western Africa would anchor at the port.
http://brecorder.com/index.php?id=536888&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

July-February trade deficit stands at $8.89 billion: exports post 3.86 percent growth

ISLAMABAD (March 09 2007): The country's exports have posted $406 million or 3.86 percent growth while trade deficit has been $8.899 billion during the first eight months (July-February) of the current fiscal against the corresponding period last year.

The provisional foreign trade figures released by the Statistics Division here on Thursday show that exports attracted $10. 907 billion as compared to $10.501 billion of the same period last year indicating $406 million increase or 3.86 per cent growth.

Imports, which are on the high side for the last one-year, showed a growth of 9.95 per cent to $19.797 billion against $18.006 billion, adding $1.97 billion in the total volume against the corresponding period of last fiscal. The data indicates that trade deficit has increased by 18.47 per cent to $8.899 billion as compared to $7.505 billion during this period.

The comparison of February with January shows 8.24 per cent growth in exports to $1.293 billion from $1.197 billion while imports took away $2.572 billion from $2.330 billion, showing an increase of 10.4 per cent. This indicates trade deficit of 12.67 per cent from $1.133 billion to $1.276 billion.

However, exports improved by 5.46 per cent to $1.296 billion from $1.229 billion when data of February is compared with January, while imports increased by 16.37 per cent.

The soaring oil prices import of machinery for textile and power sector and mobile devices, besides raw material took the trade deficit to unprecedented level. Official sources told Business Recorder that the authorities had discussed a long- term exports policy at a meeting with Prime Minister Shaukat Aziz a couple of days ago wherein exports target of 15 per cent of the GDP is thought to be achieved after investment in the key sectors.

Asked how much investment is required to achieve $45 billion exports mark, one federal minister said that this is yet to be finalised. But according to him, a fundamental change can be seen in government's thinking in this regard. " It is good that exports are increasing but now we have to improve our quality and move forward," he added.

Deputy Chairman Planning Commission, Dr Akram Sheikh has prepared a long-term export policy but without consulting the Secretary of the Planning Division. "We have to look into the mechanism how exports would grow by 15 per cent of the GDP and how much investment is required in different sectors," an official quoted Prime Minister Aziz as saying in the meeting on exports strategy.

http://brecorder.com/index.php?id=536485&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

PPL plans to add new reserves in 10 years

LAHORE (March 09 2007): Pakistan Petroleum Limited (PPL) has chalked out a 10-year strategic plan encompassing various spheres, including exploration of new wells and developing the existing exploration/production facilities with a view to improving financial health of the company, during 2007-2016-17.

PPL authorities believe the successful implementation of the plan will add new reserves of 9.079 TSCF of gas and gas equivalent during the stratplan period, with the expected remaining reserves of about 7.554 TSCF at the end of the plan period.

According to information made available to Business Recorder, the company has asked all its operating departments to provide financial data for incorporating in financial projections for the envisioned strategic plan. The proposed plan would be presented before the board of directors of the company for approval expected to meet in April this year.

After approval of the board, work to implement the plan will kick off that includes vigorous exploration and development programmes and addition of new oil and gas reserves.

Under the exploration programme, the company over the next 10 years will acquire over 18,886 line km 2D and 10,740 square km 3D seismic, both in existing and new areas. The company will also drill 100 exploratory (50 operated and 50 non-operated), including six offshore wells, with expected discoveries in 27 areas and acquisition of around 2.2 TSCF reserves.

Under the development programme, it plans drilling 69 development wells in operated areas and 143 wells in non-operated areas; work over 42 wells in operated areas and 27 wells in non-operated areas.

The Company's exploration strategy is aimed at replenishing and if possible increasing its existing petroleum reserves through continuation of its vigorous exploration efforts, both within and outside the country. PPL also plans acquisition of new areas to maintain a manageable portfolio of about 20 to 25 exploration areas at any point of time (10-15 each in operated and non-operated areas). Drilling 100 exploration wells, of which 50 are planned as operated wells in the next 10 years, is also part of the strategy.

PPL further envisages continuing with the evaluation of international new business opportunities, both in the direction of new venture exploration, as well as buying undeveloped and developed reserves of around 2.2 TSCF, which will enable it to secure additional reserves, enabling the country to earn valuable foreign exchange.

The company's Production and Development Strategy is meant for optimising reservoir recovery in most efficient manner by using latest technological advancements to achieve operational excellence. As a result of exploration efforts, 27 new oil and gas fields are expected to be discovered. It is planned to bring the oil discoveries on-stream within 18-24 months and the gas discoveries within 24-36 months. It is further planned to drill 212 development wells and 69 workovers during next 10 years.

To maintain the objective of maximum gas production from the Sui Gas Field, the largest gas producer in the country, the strategy to be implemented for the plan period includes:

Filling/workover of seven wells, two vertical and five horizontal wells in Sui Main Limestone (SML) and Sui Upper Limestone (SUL) formation; two vertical wells in Pab formation; three development wells; and workover of 21 wells. Besides other initiatives, due to high pressures and different composition of Pab gas, an independent 16" diameter pipeline is proposed to be laid parallel to the existing SML Western Gas Gathering Main for Pab gas.

Procurement is planned in the year 2009-10 and installation / commissioning in the year 2010-11. Kandhkot gas field is the second largest gas production site of PPL and contributes 13 percent to its total gas production.

To efficiently drain the reserves by the expiry of extended lease in 2022, efforts will be made to increase current gas production from 118 MMscfd (average) to 200 MMscfd for the Plan Period. Drilling of three horizontal wells in SML / SUL formation; and work over of 12 wells.

To have 100 percent standby capacity of the Dehydration Plant, the company, according to the strategy, plans installation of an additional unit of 130 MMscfd capacity. The unit will be commissioned by the year 2008-2009.

To enhance gas sales to 200 MMSCFD a purification plan of 110 MMSCFD capacity of raw natural gas will be installed for which the Front End Engineering Design (FEED) will be completed in 2007-08.

One Development Well (MAZ Well-4) during 2007-08; workover of one well (Well - 3) in 2007-08 to rectify the downhole leakage problem, while two workovers are also planned for Mazarani Field.

Similarly, at Qadirpur Field, drilling of 8 development wells; workover of three wells are confirmed while nine workovers are anticipated. For Miano Gas Field, drilling of two development wells, three workovers are anticipated while filed compression will be completed in 2009-10.

Meanwhile, drilling and workovers of wells and other activities are also to be carried out at Sawan Gas Field, Block-22, Tal Block, under the envisioned strategy.

Under the plan, the company will lay emphasis on human resource and information technology development to effectively manage the business growth in a more regulated and competitive corporate environment.

http://brecorder.com/index.php?id=536562&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

March 10, 2007
Chinese firm keen to invest in minerals

ISLAMABAD, March 9: President of MCC Tongsin Resources of China Zou Jianhui has expressed the desire to further invest in mineral projects of Pakistan.

Mr Jianhui who called on Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon here on Friday informed the latter that China Metallurgical Construction Company (MCC) has set up a subsidiary company - MCC Tongsin Resources, which would participate in metallic and non-metallic projects in Pakistan to be financed by the China Development Bank.

He said that MCC Tongsin Resources and Pakistan had recently signed a draft MoU in Beijing to cooperate in the mineral sector, which would be finalised during the forthcoming visit of Prime Minister Shaukat Aziz to China. Under the agreement a consortium comprising MCC tongsin Resources, China Development Bank and Pakistan would be formed.

Welcoming Mr Jianhui, the minister said that Pakistan and China enjoyed historic friendly relations, which had strengthened and flourished with the passage of time.

He said that there existed a lot of investment opportunities for Chinese companies in mining of huge deposits of iron ore, granite, lignite and precious stones found in various parts of the country. He said that Tongsin Resources`s investment in the mineral projects would be warmly welcomed.

Senior Joint Secretary (Development) Jehangir Khan and other officials of the ministry were also present in the meeting. Ends.

http://www.dawn.com/2007/03/10/ebr5.htm

 

[Neo]

Saturday, March 10, 2007

Trade deficit in services sector fell by 63.65% in Jan

By Tanveer Ahmed

KARACHI: The trade deficit in services decreased by 63.65 percent to $172.66 million during the month of January in the current financial year, as against $474.93 million in the corresponding month of the previous year.

The export of services in January 2006-07 registered a phenomenal growth of almost 160 percent to $517.46 million, as compared with $199.21 million of services exported during the same month of the financial year 2005-06.

However, import of services depicted a marginal increase of 2.37 percent during the month under review to $690.12 million, as compared with $674.14 million worth of services imported in the corresponding month of the previous year, the latest statistics of external trade of services showed on Friday.

The export of services in January recorded an unprecedented increase of 108 percent against the preceding month of December, which earned $248.92 million worth of exports.

The import dipped by almost 10 percent in January as compared with December, when $763.56 million worth of services were imported.

Based on the strong performance of exports in January, the deficit in services trade rose only by five percent in the July-January period of the current financial year, as compared with the same period of the previous year. The deficit stood at $2.54 billion in the period under review, over $2.42 billion of the corresponding period of the previous year.

The export of services in the first seven months of this financial year stood at $2.30 billion, as against $2.23 billion of the same period of the previous year, registering a growth of 3.16 percent.

The import in the said period also grew by 4.07 percent to $4.85 billion, over $ 4.66 billion worth of imports in the same period of the previous year.

The strong performance of export of services in January minimized the negative impact of the poor performance of this sector in December, when it registered a substantial fall.

Analysts said that although, the performance of export was remarkable in January, there is a need to sustain this trend in the coming months.

“The export performance was higher compared with previous months, however it is still below the huge potential that exists in this sector for export,” Samiullah Tariq, an analyst at Invescap noted.

He believed that as major investments have been pouring in the banking and communication sectors, especially IT call centres, further growth in exports is expected.

The share of country in world services sector has remained around 0.23 percent over the years.

The country’s services export are confronted with a number of issues, which obstructed to tap the vast potential of the export in this sector like quality, acceptance of professional credentials, visa problems and the most importantly the image problem, which the country has been confronted with since long.

http://www.dailytimes.com.pk/default.asp?page=2007\03\10\story_10-3-2007_pg5_1

 

[Neo]

Saturday, March 10, 2007

Report on Pakistan’s competitiveness on Monday

ISLAMABAD: The first ever report on the State of Pakistan's Competitiveness will be launched here on March 12.

Official sources told APP here on Friday that the report has been prepared by the Competitiveness Support Fund (CSF), a joint initiative of the Ministry of Finance, Government of Pakistan and the U.S. Agency for International Development (USAID).

The economists and industry experts, both in and outside Pakistan, have been eagerly waiting for such a document, which can put light on Pakistan's competitiveness and the report is expected to identify the current strengths and weaknesses in Pakistan's competitiveness standing, they added.

Official sources believed that the report would be highlighting areas where Pakistan has improved as well as lagged behind in the nine pillars of the World Economic Forum, namely; institutions, infrastructure, macro economy, health and primary education, higher education and training, market efficiency, technological readiness, business sophistication and innovation. The report also compares Pakistan's progress in terms of other countries in the region.

The World Economic Forum recognised the economic achievements of the Government of Pakistan in its latest Global Competitiveness Report, in which Pakistan ranked 66th on the Business Competitiveness Index, showing its market efficiency.

In the 2006-2007 Global Competitiveness Report, it ranked 91st out of 125 countries on the Global Competitiveness Index that includes governance, health and education.

Sources further said that the ceremony would be attended by cabinet members, corporate and business leaders, legislators, senior civil servants and intellectuals from academia and research institutes.

This will also provide a platform to address the competitiveness issues to the key stakeholders in Pakistan, the sources added.

http://www.dailytimes.com.pk/default.asp?page=2007\03\10\story_10-3-2007_pg5_2

 

[Neo]

Saturday, March 10, 2007

Export Plan Pakistan: Rs 45b exports targeted by 2013, says official

By Sajid Chaudhry

ISLAMABAD: Planning and Development Commission (P&D) Deputy Chairman Dr Akram Sheikh has said that the Export Plan Pakistan aims at enhancing current exports-to-GDP ratio from 13% to 15% of GDP or $16.5 billion to $45 billion by 2013.

He said that the Export Plan Pakistan would help develop the country’s export base to diversify and be competitive. This would also provide a sound base for the development of exports in short, medium and long-term.

Akram Sheikh, head of the committee which finalized the Export Plan Pakistan, told Daily Times that Prime Minister Shaukat Aziz has approved the Export Plan Pakistan which would provide a short, medium and long-term road map for enhancing the country’s exports from $16.5 billion to $45 billion during 2006-2013, through diversification and achieving competitiveness.

Prime Minister Shaukat Aziz would assign, within next two weeks, relevant ministries targets for implementation of Export Plan Pakistan 2006-2013, which would be implemented in true spirit.

Talking to this scribe, Dr Akram Sheikh said that he has utilised all of his 45-year experience in planning and development to finalise the plan. He hoped that this plan would ensure availability of legal and administrative infrastructure for rapid export growth.

The PM has approved all measures and incentives proposed in the draft plan which would help the country to achieve its desired results. About the implementation of the export plan, he informed that the PM would assign individual assignments to the relevant ministries and divisions within next two weeks and would also fix deadlines for implementation of targets.

He informed that along with existing export base, the plan would ensure development of other sectors, where Pakistan has competitive edge over the competitors. This would diversify export base through development of non-traditional products along with capacity enhancement of existing export sectors.

In the Export Plan Pakistan, it has been estimated that at present, the GDP stands at $128.90 billion with export to GDP ration of 13%, which will be growing and is expected to reach at $288.70 billion with exports to GDP ration of 15% by year 2013.

The exports are to be enhanced with Annual Compound Growth Rate (ACGR) percentages under the Export Plan for Pakistan 2006-2013.

The textile and garment sector’s exports are projected to increase from $9.98 billion in the fiscal year 2006 to $24.36 billion by fiscal year 2013 with ACGR 14% per annum. Rice exports, which stand at present at $1.11 billion, would be enhanced to $2.5 billion by year 2013, with annual ACGR of 12%.

Leather and leather products had fetched $1.09 billion last fiscal year, which would be increased to $2.26 billion with annual ACGR of 11%. The exports of engineering sector, which at present stand at $0.21 billion, would be enhanced to $2.40 billion with ACGR of 42% by year 2013.

Fruits and vegetables would be enhanced from $140 million to $370 million with ACGR of 15%, meat and meat preparations from $20 million to $100 million with 26% ACGR, fish and fish preparations from $200 million to $990 million with 26% ACGR, carpets, rugs and tapestry $250 million to $370 million with 6% ACGR, sports goods from $350 million to $920 million with ACGR of 15%, surgical instruments from $160 million to $420 million with 15% ACGR, cutlery from $30 million to $110 million with 20% ACGR, furniture from $10 million to 500 million with annual growth rate of 75%, pharmaceutical products from 80 million to 290 million with growth rate of 20%, marble and granite from $20 million to 680 million with growth rate of 66% and gems and jewelry $20 million to $690 million with 12% ACGR and other products including services and defence exports from $2.89 million to $6.32 million with 12% ACGR.

http://www.dailytimes.com.pk/default.asp?page=2007\03\10\story_10-3-2007_pg5_3

 

[Neo]

Saturday, March 10, 2007

‘Punjab to be hub of Chinese investment’

LAHORE: Senior Advisor, Nanjing Municipal people's government, Nanjing City, Jiangsu, Miao Helin, has said that Punjab will become a hub of Chinese investment in the near future, as both the governments of Jiangsu province and Punjab had already signed an MoU to this regard during Chief Minister Chaudhry Pervaiz Ellahi's visit to Jiangsu.

Miao Helin expressed these views while speaking at Lahore Chamber of Commerce and Industry on Friday. LCCI President Shahid Hassan Sheikh, Senior Vice President Yaqoob Tahir Izhar, Vice-President Mubasher Sheikh and former Senior Vice-President Sohail Lashari also spoke on the occasion.

Miao Helin said that Jiangsu, for being the fastest growing province of China, has a large number of opportunities for Pakistani businessmen who can initiate joint ventures in various sectors with their Chinese counterparts. He said that textile equipment, appliances manufacture and agriculture sector are potential areas, where businessmen from both the sides can join hands for the rapid economic growth of Pakistan and China.

http://www.dailytimes.com.pk/default.asp?page=2007\03\10\story_10-3-2007_pg5_9

 

[Neo]

US Congressional bill may impact Iran-Pak-India gas pipeline
Saturday March 10, 2007

WASHINGTON: A bill has been introduced in the US Congress aimed at enforcing punitive action against companies doing business with Iran that may impact Indo-US nuclear pact and create obstacles for Iran-Pakistan-India gas pipeline.
Chairperson of the US House Foreign Affairs Committee Tom Lantos introduced the Iran Counter Proliferation Act of 2007 yesterday that will plug loopholes on allowing the US administration to waive sanctions and get tough with companies doing business with Iran.

The Iran Counter-Proliferation Act (H.R. 1400) will "exponentially increase economic pressure on Iran and empower our diplomatic efforts by strengthening the Iran Sanctions Act," Lantos said.

"Until now, by shamelessly exploiting its waiver authority and other flexibility in the law, the Executive Branch has never sanctioned any foreign oil company which invested in Iran. Those halcyon days for the oil industry are over," the California Democrat said.

The proposed legislation will also prohibit nuclear cooperation between the US and any country that provides nuclear assistance to Iran.

It will also increase economic pressure on Iran by expanding the types of investment subject to sanctions, severely limiting the export of US items to Iran, ending all imports from Iran, and preventing US subsidiaries of foreign oil companies that invest in Iran`s oil sector from receiving US tax benefits for oil and gas exploration.

"Iran`s theocracy must understand that it cannot pursue a nuclear weapons programme without jeopardising the political and economic future of the Iranian state," Chairman Lantos said in a statement.

http://www.paktribune.com/news/index.shtml?171449

 

[Neo]

Alarm bells over economy’s slide
Saturday March 10, 2007

KARACHI: After some dire warnings by economic experts, the major donor agencies ñ IMF and World Bank — too have sounded alarm bells over the pathetic state of Pakistan’s economy during the current fiscal year.
John Wall, the World Bank’s country director, has very recently showed his concern over the burgeoning trade deficit and dwindling textile exports.

John Wall has cautioned the Pakistan government to take appropriate measures to augment its exports to achieve sustainability in economic growth. He further said that Pakistan’s trade deficit is very large and if not capped it will hurt the nation’s economy.

While pointing to the downslide in textile exports, which remains an area of chief concern, he also advised putting in place a tight monetary policy to arrest the ever-rising inflation.

According to the figures released by the Federal Bureau of Statistics (FBS) on Thursday, trade deficit has climbed to $8.899 billion during the first eight months (July-February) of the current fiscal against the corresponding period of last year.

The provisional foreign trade figures released by the Statistics Division here on Thursday show that exports attracted $10.907 billion as compared to $10.501 billion in the same period last year, indicating $406 million increase or 3.86 per cent growth.

As compared to a meager increase in exports, the imports, which were on the high side for the last one year, showed even a higher graph as the total volume was worth $19.797 billion, a jump of $1.97 billion or 9.95 per cent over last year’s total of $18.006 billion

The data indicates that trade deficit has increased by 18.47 per cent to $8.899 billion as compared to $7.505 billion during this period.

The economic experts have blamed free import-oriented policies of the present government for causing the worst-ever trade deficit in Pakistan’s 58-year history.

“Even bread, cakes, fish, beef, hotdogs, butter, cheese, fruits, cereals, canned foods, all kinds of general merchandise, footwear, and stationery items are being imported into the country and in return we are selling our precious assets like PTCL, PSO, Steel Mills, Railway land, refineries and now the national carrier ñ PIA - is being destroyed to sell it cheap,” said Chairman, Union of Small and Medium Enterprises, Zulfikar Thaver.

He said that it is very disturbing and shameful to see that even bread and cakes are being imported in bulk from various countries and in view of the alarming increase in luxury and non-productive imports the trade deficit has risen to 18.47 per cent and if this trend is not discouraged, the local industries would have a very serious setback.

Experts wonder where the economy is headed, and lament that even after witnessing the disturbing trends the government has failed to come out with any concrete policy to arrest the declining textile exports and mounting imports in order to minimize trade deficit.

The government had given a task to the Planning Commission to formulate a plan to boost the country’s exports to $45 billion in next five years. But even after a lapse of few months the Deputy Chairman Planning Commission, Dr Akram Shaikh, is yet to come out with any blueprint to give exports the much-needed shot in the arm.

The newly-established Trade Development Authority (TDAP) too has miserably failed to make any positive contribution as much-touted export promotion activities and market research at the organization have yet to bear visible fruit.

The performance of our trade negotiators posted in European Union, WTO, USA, etc. is often called into question.

EU has refused to sign a free trade agreement with Pakistan on a vague reason.

Is it not high time Pakistan reviewed the performance of its trade negotiators posted in the strategically important world capitals?

http://www.paktribune.com/news/index.shtml?171474