Pakistan Economy - News & Updates - Archive

[Neo]

March 15, 2007
Investors worried about political instability

By Shahid Iqbal

KARACHI, March 14: Foreign investors are showing signs of anxiety over the prospects of political stability in Pakistan. What foreign investors have started asking from their advisers was quite interesting and at the same time a message for the economic and political managers of the country.

The Pakistani private sector advisers, who protect the interest of the foreign entities and investors, said they cannot afford to give a false picture to their clients as ‘it is the business of true information.”

What used to be the first question of a foreign investor? “Will President Musharraf continue to rule the country?” Analysts, who sell their knowledge and skills in the form of ‘working papers’ said the reply was easy a year before. But the question became more and more difficult in the election year.

They said general elections had been a sign of political instability in Pakistan as the country witnessed frequent change of governments during late eighties and nineties resulting in ‘abrupt policy changes on economic side.’

“As the time approaches closer to general elections, it appears that the elections are rather a problem that became bigger with the dispute of re-election of the president,” said Abbas Jameel, a business analyst.

He said the analysts have to sell complete knowledge about the political scenario and possibilities of changes in future to their overseas clients or investors.

A leading researcher said that investors had become more inquisitive about the political change expected by the end of this calendar year.

“The question regarding the future of President Musharraf has been increasing in number while its convincing reply to give them a positive picture is becoming more difficult,” said the researcher.

“In fact, the foreign investors are interested in persistency of the economic policies and they feel that persistency is linked with the current setup of the government,” he said.

The foreign investments have been increasing in the country and it apparently dispels the impression that the foreign investors are concerned over the political situation.

“Pakistan may end up with record foreign direct investment in the current fiscal year till June 2007 but the impact could be felt in the fiscal 2007-08, which will cover the expected troubled period of general elections and the new setup of government in Islamabad,” said Saqib Aleem, a researcher.

He said it was also difficult to answer that whether the economic policy would continue to prevail or not ‘as we are in the dark about the future set up of the government’

However, they used to convince the investors that Pakistan is a part of global economy and it is extremely difficult to leave the track on which the economy is growing with a rate of 7 per cent annual growth.

The second question being asked by the foreign investors is about independence of institutions in Pakistan. “They used to ask that whether the institutions are free from the government influence or not,” said Jameel. “Our answer is clear that we have free institutions and that are free from the government influence,” he said.

However, the third main question, which the foreign investors used to ask is about the independence of central bank (State Bank of Pakistan).

“When we reply that the SBP is independent and autonomous central bank, they like to know who appoints the governor of the SBP,” he said.

When they are told that the president of the country appoints the governor of SBP, the foreign investors refuse to accept the independence of the central bank and its policies.

He said the recent dispute regarding the Supreme Court has also started attracting attention of the foreign investors and they are watching it closely.

http://www.dawn.com/2007/03/15/ebr7.htm

 

[Neo]

March 15, 2007
Govt plans $300m UBL GDR sale

HONG KONG, March 14: Pakistan’s government plans to sell a stake worth up to $300 million in United Bank Ltd. (UBL) through a global share sale, and it has invited six investment banks to pitch for the deal, people familiar with the matter said on Wednesday.

Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan and Merrill Lynch are all bidding for the $200m to $300 million global depository receipt (GDR) sale, the sources said.

A government source said the decision for the deal's lead manager would be made by early April, and the deal should be completed by the end of June. The government is only selling part of its roughly 45 per cent stake in UBL.

Pakistan’s government has been trying to offload part of its stake in UBL since June 2005, when it tried to sell 15 per cent through an initial public offering that eventually failed to draw enough subscribers.

A consortium of UAE-based Abu Dhabi Group and British conglomerate Bestway Group bought 51 per cent of UBL from the government in 2002.

The government was planning a 20 per cent stake sale in February 2006, according to a government source, but the deal never made it to the market.

Pakistan is being tipped by foreign investment bankers as a potential hotbed of equity issuance activity as the country's economy is growing at nearly 7pc and the government is pushing to privatise some of its biggest companies.

The country's largest listed firm, the Oil and Gas Development Co. (OGDCL) raised $813 million through a GDR sale in December, and the government is also planning a stake sale of top oil marketing firm Pakistan State Oil.

http://www.dawn.com/2007/03/15/ebr16.htm

 

[Neo]

Musharraf for value addition to boost economy

GUJRANWALA: March 15, 2007: President General Pervez Musharraf on Thursday called for creating synergy between industry and the educational institutions to help expedite the process of economic development in the country.

Addressing the inaugural ceremony of sub-campus of Punjab University here, he said, "Natural resources alone are not sufficient to bring about prosperity in a country; We have to go for more value addition and optimisation of resources as these are pre-requisites for an economy in the present-day knowledge driven world."

Earlier, the President unveiled a plaque to inaugurate the sub-campus and also planted a sapling there.

Punjab Governor and PU Chancellor Lt. Gen. (r) Khalid Maqbool, Chief Minister Chaudhry Pervez Elahi, Vice Chancellor Arshad Mahmood, Gugranwala Campus DG Prof. Dr. Liaqat Ali, Registrar, Prof. Dr. Naeem and other faculty members as well as students in a large number attended the ceremony.

President Musharraf said that the Punjab University was the oldest seat of learning in the sub-continent, adding that the establishment of new sub-campuses was indeed a great step.

He said that 13 campuses of various universities had been set up in Punjab, which would definitely help ensure provision of quality education to the people of the province.

The President said that huge funds were being spent for the improvement of education and health sectors which had become possible only due to better performance of national economy with an average growth rate of 7% over the last four years.

He announced Rs 5 million grant for the Gujranwala sub-campus of the Punjab University.

"I have directed the chairman of Higher Education Commission (HEC) to support and provide funds to the new campuses," he said, adding that HEC was receiving Rs 600 million annually till the year 1999. However, he said, the annual budget of the commission had reached up to Rs 22 billion this year, reflecting a 4,600 per cent increase in the allocations. "I think this amount for education is still less. We will increase this fund every year. Currently, 2.7 per cent of the GDP is being spent on education and we will enhance it up to four per cent," he said.

He also commended the initiative of online lectures at the campus and said this should be replicated at other educational institutions of the country as well.

Lectures through video conferencing is an effective means to use faculty properly and to impart education to a maximum possible number of students at the same time, he added.

President Musharraf congratulated the PU Chancellor and VC for their efforts in establishing the sub-campus and lauded the Chief Minister for support and keen interest in acquisition of land and building for the sub-campus and hoped that he would continue with the same spirit for acquisition of land for other campuses.

President Musharraf said Punjab University is focusing well on increasing capacity as well as disciplines.

The University has enhanced its capacity from 45,000 to 120,000 students, and increased various academic disciplines from 43 to 68, he said. New courses such as polymer engineering, ceramics, metallurgy and agricultural technology etc. are being taught at the university.

The President observed that value addition resources is a must to achieve economic prosperity.

He said big Islamic countries have $ 200 billion GDP and the entire Muslim world has two trillion dollars economy with 70 per cent natural and 40 per cent energy resources. Contrary to this, Germany alone has $ 3 trillion economy and other small European countries have up to $ 400 billion GDP, he said, pointing out that they have achieved this economic development through knowledge and value addition.

Unfortunately, no attention was paid to this important factor of value addition in Pakistan for 50 years and the focus was on textile and agriculture while ignoring all other sectors, he said.

He said the country has best gemstones and marble but lacks proper infrastructure for their mining, cutting and polishing.

Similarly, Pakistan is one of the major milk-producing countries in the world but the value-added dairy products like cheese, butter and yoghurt are not being exported.

"Where we have resources, we will have to develop expertise in those fields to ensure prosperity and economic development in the country and we have strategized the way forward."

President Musharraf said that nine new universities were being established with the assistance of Germany, France, Sweden, China, Italy, Austria, Japan and South Korea. These universities would issue degrees to students in Pakistan, which would be equal to those being issued in their parent countries.

He said these new universities would create a competitive environment which would help improve quality of education in all the educational institutions, especially of public sector. The government would spend Rs 250 billion on public sector universities in next ten years and technology parks would also be set up in these institutions.

The President said, "I have launched National Internship Programme the other day, which will help reduce poverty and unemployment in the country."

Under this programme, a graduate, who has a degree from any HEC recognised university, would be given job at Rs 10,000 per month in public sector offices, ministries and institutions at province and district level for one year. During this period their performance would be monitored and 20,000 graduates would be provided jobs, he said.

http://www.brecorder.com/

 

[Janbaz]

Pak seeks access to EU market

OUR STAFF REPORTER
ISLAMABAD - Foreign Minister Khurshid Kasuri on Wednesday asked for equitable access for Pakistan in the EU market while emphasising the need for a Free Trade Agreement between the two sides. Austrian Foreign Minister, Dr Ursula Plassnik, who is currently in Islamabad for the first ever visit of an Austrian Foreign Minister to Pakistan, met Foreign Minister Kasuri, said a Foreign Office statement issued here.
The talks, which lasted nearly three hours, covered the whole gamut of Pakistan - Austria relations as well as regional and international issues of mutual interest, it added.
Within the context of bilateral relations, the discussions focused on enhancing economic and development cooperation. The two Foreign Ministers welcomed the significant rise in bilateral trade in the recent years.
Pakistan and Austria also have meaningful cooperation in diverse fields including railways, oil and gas exploration, power generation, Education and Tourism Development.
About 150 Pakistan students are studying in Austrian universities under a joint arrangement.
The two countries have also entered into a partnership to establish a University of Engineering Sciences and Technology (UESTP) in Lahore.
It was agreed to further strengthen the ongoing development cooperation as well as educational and technological exchanges.
Kasuri appreciated Austrian support to Pakistan within the EU. He underscored the need for equitable access for Pakistan in the EU market particularly in the form of a Free Trade Agreement between Pakistan and EU.
He updated Ursula Plassnik on Pakistan-India relations and the composite dialogue for resolution of all outstanding issues including the Jammu and Kashmir dispute. The Afghanistan situation was discussed in detail and Kasuri underlined Pakistan ‘s commitment towards Afghanistan ‘s stability, progress and reconstruction, which was in Pakistan ‘s own national interest.
Among the other issues discussed included Iran, Iraq, interfaith harmony, and counter terrorism.

The Nation.
http://www.nation.com.pk/daily/mar-2007/15/bnews3.php

 

[Janbaz]

$65bn investment needed over six years

By Mansoor Ahmad
LAHORE: Though Pakistan is diversifying its export markets, it needs investments of $65 billion in the next six years with an average growth rate of six to eight per cent to achieve the export target of $40 to $45 billion by 2013.

A study of the presentation of the next six years’ export targets made by Deputy Chairman Planning Commission Akram Sheikh to Prime Minister Shaukat Aziz early this month reveals that the achievement of 2013 export target is tied to many conditions.

It includes factors like macro-economic stability to diversification of export products and markets. The achievement of the export target is also linked to sector-specific measures that the government is required to take in one to two years.

According to the presentation, Pakistan’s dependence on the US market would remain almost the same as its exports are projected to increase from $4.2 billion last year to $11 billion in 2013. The share of Pakistani exports to the US would remain the same at roughly 25 per cent of total exports.

This increase in exports to the US is based on the assumption that earthquake-affected regions of Pakistan would get a duty-free access to the US market. As a result, the planners expect enhancement of the product range from textiles and carpets to sports goods, gems and jewellery, marble and granite and furniture.

The exports to the European Union are projected to increase from the current $4.5 billion to $9.5 billion by 2013.

The biggest increase in exports may be to China from the current $500 million to $5 billion by 2013. In this way, the share of exports to China will rise from 3.5 per cent to 8.5 per cent of total exports.

According to the presentation, Afghanistan would replace the UAE as the third largest market of Pakistani products after the US and the EU. Exports to Afghanistan are projected to move up to $3.2 billion, three times the current level of $1.1 billion. Exports to the UAE are likely to double from $1.3 billion to $2.6 billion by 2013.

Planners have pinned their hopes on textiles and clothing to lead the exports in the next six years, expecting their exports increasing from $9.89 billion to $22 to $25 billion by 2013. The highest increase in exports may come from the engineering goods from the current $208 million to $2.4 to $3 billion, a ten times’ increase.

The exports of rice, fish and fish preparation, sports goods, fruits and vegetables are projected to cross the $1 billion mark each.

In order to achieve the export targets, the planners have underscored the need of fresh investment in every export sector plus sector-specific human resource capacity enhancement and some vital government interventions and facilitations.

Out of $65 billion fresh investments required in export-oriented sectors, the textile sector would need at least 30 per cent or $22 billion.

The engineering sector would require $16 billion investment to boost its exports to the level of $2.4 billion by 2013. Chemicals and pharmaceuticals would need investment of $8-12 billion; leather goods, sports and surgical instruments $5-10 billion by 2013.

The Planning Commission’s presentation also attached the achievement of the export target to average growth of six to eight per cent and inflation rate of seven per cent over the period under review.

However, it failed to touch the interest rate scenario. Investment under the current interest rate scenario is on the decline, particularly in the key textile sector. The interest rates are not likely to fall much, but these may not turn out to be the main impediment in the way of investment.

The Planning Commission also warned of greater competition from China, India and Bangladesh. It pointed out that in the post-quota era, China and India had grabbed a major share of the textile and clothing markets, whereas amongst other Asians, Pakistan is the loser. One reason for that was irrational price reduction by the exporters that should be curbed.

The Commission hoped Pakistan’s total GDP would jump from the current $128 billion to $270-280 billion if the country maintained its current growth rate.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=47017

 

[Janbaz]

Great scope for Pakistan exports to Cuban market

Our Staff Reporter
LAHORE - The Cuban Ambassador in Pakistan Mr. Gustavo Machin Gomez has said that there is a huge potential of Pakistani rice, textiles, leather and sports goods in Cuba and Pakistani businessmen can avail the opportunity with the help of Cuban embassy in Pakistan. The ambassador was talking to LCCI President Shahid Hassan Sheikh and Senior Vice President Yaqoob Tahir Izhar at Lahore Chamber of Commerce and industry on Thursday.
The Ambassador said that the Chamber of Commerce and Industry in Cuba was ready to sign MoU with Lahore Camber of Commerce and Industry to further strengthen the bilateral relations and to ensure the exchange of information between the two sides. The Ambassador, who spent well over an hour with the LCCI office-bearers and the Executive Committee, was of the view that the Lahore Chamber of Commerce and Industry should arrange a delegation to Cuba so that the Pakistani businessmen could have first-hand
knowledge about the available opportunities there. He said that Cuba has a history of 52 years of excellent relations with Pakistan and this is the high time the business communities of both the sides should join hands in the larger interest of the peoples of the two countries. Speaking on the occasion, the LCCI President Shahid Hassan Sheikh welcome the Cuban diplomat for his first-ever visit to the Lahore Chamber of Commerce and Industry and assured him of his full cooperation for strengthening the bilateral relations between Pakistan and Cuba.
He said that there is a little trade between Cuba and Pakistan. During the year 2005 goods worth only $ 1.78 million were traded between two countries. Only 3 items were exported by Pakistan to Cuba, which were textile articles ($ 0.20 million) cotton ($0.16 million) and optical photo, technical & medical apparatus ($ 0.13 million). The only item, which Pakistan is importing from Cuba is pharmaceuticals products.
He said that in addition to that Pakistan could supply good quality products of daily use such as electric fans, washing machines, sports goods, leather products, pottery, furniture, cutlery, carpets etc. being produced in Lahore, Sialkot, Gujrat, and Gujranwala.
In return Pakistan could import more pharmaceutical products, nickel & articles thereof, inorganic chemicals, ores, copper & articles thereof etc. from Cuba. This is possible through exchange of trade delegations, interaction between the Chambers and Diplomatic Missions of the countries.

The Nation.
http://www.nation.com.pk/daily/mar-2007/16/bnews6.php

 

[Janbaz]

Very nice, another market for our products. Pakistan and Cuba both can benifit alot with increased trade and i would love cooperation in military sectors if rrelations with US sour. Nothing like antics to piss Uncle Sam off. Also it can be noted that Pakistani products will reach Latin America and the Carribean with ease after Cuba. It is a region untouched by us and i hope that we proceed with better policies in the coming years.

 

[Owais]

President performs ground-breaking of 500 KV grid station


GUJRANWALA (updated on: March 15, 2007, 23:31 PST): President General Pervez Musharraf on Thursday performed the ground-breaking of a 500 KV grid station, to be built at Gakhar at a cost of Rs. 4.5 billion.

The project, to be completed in a period of one and a half years, will help improve the smooth supply of electricity in the rural areas of Narowal and Hafizabad, the President said while addressing a big public meeting here.

The President assured that every village in District Gujranwala having over 10 houses would be provided electricity.

Governor Punjab, Lt. Gen. (R) Khalil Maqbool, Chief Minister, Chaudhry Pervaiz Illahi and District Nazim Gujranwala, Muhammad Fiaz Chatha also addressed the public meeting, which was attended by a number of federal and provincial ministers, parliamentarians, Tehsil and Union Council Nazims.


brecorder.com

 

[Owais]

President announces Rs7 billion for Gujranwala uplift


GUJRANWALA (updated on: March 15, 2007, 23:36 PST): President General Pervez Musharraf on Thursday announced a Rs. 7 billion package for Gujranwala for development of roads, sanitation, disposal of solid-waste, parks and library facilities.

Addressing a big public meeting here, the president also announced Rs. 10 million for each Union Council of Gujranwala district for increased development works in rural areas.

Every Union Council will get Rs. 5 million during the on-going fiscal year, while Rs. 5 million would be made available to them in the next financial year, he said and added the government would provide more resources for development as per requirement.

Governor Punjab, Lt. Gen. (R) Khalil Maqbool, Chief Minister, Chaudhry Pervaiz Illahi and District Nazim Gujranwala, Muhammad Fiaz Chatha also addressed the public meeting, which was attended by a number of federal and provincial ministers, parliamentarians, Tehsil and Union Council Nazims.

The president said it was the right of people to demand funds for development and the government was duty-bound to provide the same, adding, the present government has ample resources unlike the past when the national kitty was empty.

He also announced the provision of sui gas supply to Francis Town, a residential colony of minority community and said the country's minorities have also equal rights on resources.

He said, owing to the present government's prudent economic policies the national economy has been strengthened and unlike past now there are abundant resources for development.

The president said, in contrast to the 1988-99 period when the development budget was to the tune of around Rs. 70 billion, the present government has allocated Rs. 415 billion for development during the current fiscal year.

Only Punjab province has Rs. 100 billion for development, he said and remarked that in the past there were only empty slogans.

The president said as against the past, the democratic system has strengthened, with true democracy where women have secured their due status in the political arena and the development works for communication system, roads, highways, sea-ports, airports, dams etc. going on across the country at a fast pace.

He in this respect also mentioned the mega development projects like Gawadar Seaport, Gawadar Airport, Islamabad Airport, night landing facility at Quetta airport, Dams and Water Storages.

The president said the Mangla Raising project, to be completed by the end of current year, will help improve the water availability for irrigation purposes.

President Musharraf said the present government also started a Rs. 66 billion project for lining of 86,000 water courses across the country, adding, the work on 40,000 water courses has been completed with the spending of Rs. 30 billion so far while the remaining work would be completed in two years.

The president said the government was committed to transform the benefits of economic growth to masses.

He said, the government has also initiated a big programme of skills enhancement and vocational training across the country to enable the unemployed youth to get suitable jobs.

Besides, the president also referred to the National Internship Programme launched by him on Wednesday and said under the programme 20,000 masters degree holders would be provided jobs at Rs. 10,000 per month salary, adding, billions of rupees would be spent on this programme.

He also called upon the people to benefit from the government's Rozgar Scheme under which up to Rs. 100,000 easy loans are available for small businesses like Riksha, Mobile Utility Stores and PCOs.

This programme will help check the unemployment and poverty, particularly in rural areas, he added.

The president said the government was committed to provide electricity and gas facility across the country, adding, work is in progress to provide gas facility to every Tehsil and the villages that come in the way of gas pipeline.

Similarly, he said, the government will provide safe and clean drinking water and water filtration plants would be installed in every village across the country having over 100 houses.

The president said, various projects of health and education are being carried out in every part of the country.


brecorder.com

 

[Owais]

Iran offers help in oil and gas exploration

PESHAWAR (March 16 2007): The ambassador of Islamic Republic of Iran, Masha Allah Shakeri, on Thursday offered that his country could help Pakistan in exploration of gas and oil and other allied activities for its industrial and economic development.

Talking to Chief Minister Akram Khan Durrani here at Frontier House, he termed friendly ties between the two countries as a good omen for the entire Ummah. The Iranian envoy was accompanied by Peshawar-based Iranian Consul General Mohammad Eghbal Ali Asghari. He said Iran was utilising oil and gas deposits for betterment and development of its people and there was a great potential of town planning expertise in the country.

The Iranian government, he said attaches great values to its relations with Pakistan and its people particularly and emphasised on further bolstering bilateral ties between the two brotherly Islamic neighbours. He said Iran after Islamic Revolution had gained progress in various spheres of life and the country was generating hydel power from its small dams with use of modern technology.

They remained with Chief Minister for some time and discussed matters of mutual interests in particular reference to situation in Afghanistan and the problems the Ummah confronting with.

Speaking on the occasion, Chief Minister Akram Khan Durrani stressed for co-ordinated efforts by Pakistan and Iran for the resolution of Afghan issue and stop 'outsiders' from materialising their interests in the region.

"Non-stop violence in Afghanistan is a clear evidence of the fact that use of force is no more worthy to bring normalcy to the war-shattered country. It is a high time for international community to choose the path of negotiation and dialogue otherwise there is no hope for peace in neighbouring country," Durrani suggested.

The chief minister said that the enemies of Islam would never want to see the Muslim countries get united and they were out to enlarge the gulf among them by creating misperception and misconceptions against each other through different means.

He said that Pakistan and Iran were enjoying cordial and friendly relations and the people of both the countries were tied with unbreakable religious, cultural and political bonds, adding development or destruction of one country has a direct bearing on another. Durrani said that in the prevailing international circumstances, strong and friendly relationship between the two countries was the need of hour.

He said Iran-Pakistan-India gas pipeline project was in the larger interest of all the stakeholders and it would lead to bring positive changes in the lifestyle of the people of Pakistan. Durrani told the guests that there was a complete religious harmony in Frontier province, adding with formation of Muttahida Majlis-i-Amal (MMA) the religious harmony in the country had further groomed.

He said other Islamic countries should also form such religious alliances in order to reduce threats of sectarian clashes in their respective countries and discourage the elements fuelling such clashes among different sects for their own vested interests.

The chief minister said his government came into being after striking unity among religious groups and he wanted to see the entire Ummah get united and suggested exchange of high level delegations among Islamic states to help reduce misunderstandings against each other and put positive signs on unity efforts.

http://brecorder.com/index.php?id=538724&currPageNo=1&query=&search=&term=&supDate=

 

[Owais]

Pakistan has achieved good economic growth rate: Omar


KARACHI (updated on: March 16, 2007, 02:36 PST): State Minister for Finance, Omar Ayub Khan has asked the banking sector to open up its mind and look for the entire market in the country.

"Identify the diamond and educate the management's because clients of today will become the better clients of tomorrow", he said while speaking at the launching of Reliance Income Fund by Noman Abid Investment Management Limited here on Thursday.

He pointed out that de-regulation, liberalisation and privatisation were the major corner stones of the government's economic policy and philosophy. "Government is putting importance to open up its economy, trying to be transparent and reliable", he added.

The minister said the world was moving fast and the globalisation offered the best opportunity for progress if availed.

He said that Pakistan has achieved a good economic growth rate.

Now it is 6 to 8 percent per anum. While GDP has doubled during the past seven years rising from $ 60 billion to $ 135 billion.

Omar Ayub Khan noted that country's all economic sectors including services, industrial and agricultural were producing added values, which meet the criteria of WTO.

He said that human resource development, infrastructure and energy resources were the key factors for development and the government was focussing of the development of these sectors.

Referring to energy requirements, he said cheapest source of energy are the dams. "Government is determined to construct more and more dams and becomes self-sufficient in energy production. ECNEC has also approved the different development projects including the water dams and has allocated funds for them", he added.

He said the government was also negotiating Pak-Iran Gas pipe line and exploring other sources which will help Pakistan in achieving economic stability.

Chairman of Noman Abid, Investment Management Limited Adnan Abid in his welcome address appreciated government policies regarding banking sector. He read out the message of Prime Minister of Pakistan Shaukat Aziz.

brecorder.com

 

[Owais]

Qatar to construct City Centre in Karachi


KARACHI (March 16 2007): Government of Qatar will construct City Centre, a grand commercial centre in Karachi with the estimate investment of 2 billion dollar including the seven star hotel, shopping centre and offices. This was stated by ambassador of Qatar Hamad bin Ali Al-Hinzab who called on City Nazim Syed Mustafa Kamal in his office on Thursday.

He also presented invitation of Qatar to City Nazim from the Ruler of Qatar Sheikh Hamad bin Khalifa Al-Thani. The ambassador of Qatar while talking to newsmen said the co-operation of trade and investment are being increasing between the two countries which will also extend maximum facilities to the citizens of Pakistan and Qatar.

He said the visit of Qatar's Amir of Pakistan is expected soon and he will visit Karachi to lay down foundation stone for the projects of Qatar's government. He further said the invitation from Qatar's Amir have been given to City Nazim Syed Mustafa Kamal and hoped that he will visit Qatar soon which will increase relations between these two countries.

The City Nazim Syed Mustafa Kamal on this occasion said the Amir of Qatar is being visiting Pakistan on the invitation of President of Pakistan and he will lay down foundation stone for City Centre in Karachi. The project of City Centre, a grand commercial centre will be completed with the estimated cost of 2 billion dollar by Qatar government.

He also assured that he will visit Qatar before the Amir of Qatar and it is expected in this current month. He further mentioned that during his visit to Qatar, the projects of Qatar government to invest in Karachi will be finalised.

He pointed out that this will be a major investment in Karachi which is also being made on the present government's policies of public/private partnership.

He also mentioned that the City District Government Karachi under the public/private partnership will grant land for the purpose of constructing City Centre and it will be a joint venture to increase revenue for city government while commercial and trade activities in city will boost. He further added that the work on this project will start within weeks.-PR


http://brecorder.com/index.php?id=538790&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

Growth rate rises to eight percent: Omar

KARACHI (March 16 2007): The State Minister for Finance Omar Ayub Khan has said that Pakistan has a good economic growth rate which is now 6 percent to 8 percent per annum, while economy has doubled during the past seven years from $60 to $135 million.

Speaking at the inauguration ceremony of Noman Abid Investment Management Limited (NAIML) and celebration of the successful launch of its first mutual fund, Reliance Income Fund, at a local hotel on Thursday.

Pakistan's all economic sectors like services sector, industrial sector, agricultural sector, etc are producing added values, which meet the criteria of WTO. He said that deregulation, liberalisation and privatisation were the ethics of the government's economic policy and philosophy. Government is putting importance to open its economy to be transparent and to be reliable.

"World is moving fast and the globalisation is the best opportunity for progress, if we availed it", he added. The minister said that human resource development, infrastructure and energy resources were the key factors for development and the government was putting importance on the development of these sectors.

Pakistan has immense Human resources and infrastructure while it needs energy sources. Cheapest source of energy are the dams. Government is determined to construct more and more dams and becomes self-sufficient in energy constraints. ECNEC has also approved the different development projects including the water dams and has allocated funds for them, he added. He said that government was also negotiating Pak-Iran gas pipeline and exploring other sources which would help Pakistan in achieving economic stability.

The Minister also said that banking sector had to open its mind, look the whole market, identify the diamond and educate the management because today's clients could be better ones for tomorrow.

The state Minister lauded the efforts of President General Pervez Musharaf and Prime Minister Shaukat Aziz whose untoward efforts have gained economic stability for the country and an information technology boom occurred in Pakistan. Now the youth of Pakistan had excess to the world and could explore more and more opportunities for Pakistan, he said.

The state Minister emphasised on the business community to be competitive and comparative with the economy of China. The minister congratulated NAIML for its achievement in such a brief period of time. The Minister stressed on the importance of the mutual fund sector for the development of the economy and appreciated the transformation of the sector from a state domination to an increasingly efficient, competitive and thriving industry. The minister reminded the audience about the proactive stance of the government in supporting this sector and announced the promulgation of regulations for Real Estate Investment Trusts, shortly.

He said that the government was aware of the need to increase the number of listed companies, in specific the Privatisation Commission was cognisant of this issue and was working on this in letter and spirit. He noted with satisfaction the improvement in corporate governance in the financial sector.

Adnan Abid, Chairman NAIML in his speech said that the Noman Group had over three and a half decades of business experience in Pakistan and the group was presently operating in three areas including; financial services, real estate investments, construction & development and education.

In the financial sector, Noman Group activities include Equity & Money Market Investments, Equity brokerage, investment banking, private equity, underwriting, private placement, portfolio management and asset management. The group's financial services side, presently has assets under management of about Rs 3 billion and client advisory assets of over Rs 20 billion.

The group rose to prominence in the construction and development industry in the late 80's and has sustained its dominance in this sector. The group has expertise in the construction of commercial and residential complexes and has directly and indirectly constructed over 10,000 units.

The group has also extended its construction activities to the Middle East where it has recently launched a residential project. It is also coming up with a commercial project in Clifton, Karachi worth Rs 1.5 to Rs 2 billion. In education industry, the group has established the Institute of Business and Technology (Biztek), which is one of the top ten universities in Pakistan. Biztek has been ranked as category "A" by the Higher Education Commission (HEC), given its excellence in Business and Technology education.

The group's investment in this sector is approximately to the tune of Rs 1 billion. The institution is managed by the Global Educational Consultants (GEC) Society and the Sindh Governor, Dr Ishrat-ul-Ibad is the patron of the university.

NAIML is licensed by the Securities and Exchange Commission of Pakistan (SECP) to carry out asset management activities and it commenced formal operations in April 2006 and floated its first mutual fund in October 2006. The fund presently stands at about Rs 1 billion.

The company's core strengths are a professional management team and an experienced board of directors. NAIML is in the process of floating its second fund, viz Reliance Balanced Fund, a closed-end fund, expected by early April. In addition, NAIML intends to float a second open-end Islamic Fund, by the end of the current fiscal year.

In future NAIML has plans to float REITS, Private Equity Fund, Principal Guaranteed Fund and such other sophisticated investment products. Sardar Azmat Babar, CEO of NAIML also spoke on this occasion while the ceremony was attended by a number of dignitaries, senior corporate executives and executives from the financial industry. The minister distributed momentos to representatives of investors in Reliance Income Fund, eg National Bank of Pakistan, Allied Bank, Bank of Punjab, Fauji Fertiliser Bin Qasim, Orix Investment Bank, etc.

http://www.brecorder.com/index.php?id=538772&currPageNo=1&query=&search=&term=&supDate=

 

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March 16, 2007
Govt consolidating banking reforms

RAWALPINDI, March 15: Adviser to the Ministry of Finance and Economic Affairs Dr. Ashfaq Hassan Khan has said that while the implementation of reforms in the banking sector continues, the government is now moving towards consolidating these reforms.

Country’s economy has now become resilient and quite able to sustain shocks, he said while referring to the earthquake of October 2005 and three-fold increase in oil prices in the international market.

While the economy is growing, challenges are also increasing. In an environment of shocks the challenge is big to sustain the economic growth, he said adding that a certain level of inflation was necessary for growth of economy.

Dr Khan was speaking at a seminar organised by the Institute of Bankers Pakistan (IBP) on ‘Emerging challenges in Pakistan banking, their effects on economy and role in nation-building’ held at the State Bank of Pakistan in Rawalpindi.

In his 90-minute presentation Dr. Ashfaq focused his address on consumer financing, saying that there was a direct link of the development of banking sector with the growth of economy. “Financial sector is the lifeblood of economy, and if it is bleeding, economy is weak,” he remarked.Referring to the presence of more and more foreign banks in Pakistan, the adviser said this investment was an example of confidence in economy. Dr. Khan made an analysis of the performance of Pakistani banks during pre-reforms period before 1988 when banking sector was operating on a very different mode following selected credit target.

The reforms shifted the operation of banking sector from selected control monetary policy to an era of open market competition. In other words, direct control of money supply has now been converted into indirect control supply, he said.

He said that reforms in the banking sector, which has brought a healthy competition will continue. As a result of reforms, the government has started to privatise banks in the public sector. Over 85 per cent of banks are now in the hands of private sector, while 100 financial institutions were in operation throughout the country, he said.

Dr Khan explained in detail the merits of consumer financing and said benefits of such financing had now been brought down to the level of common people resulting in the growing of consumer financing.

Explaining the fruits of consumer financing, he said it has brought change in the quality of life, growth of income and tax culture, picking up of industrial growth, creation of employment opportunities and many other benefits.

Dr. Khan also spoke on micro financing saying that these will bring changes in the life pattern of low income group. About four to five micro financing banks were operating while more are in the pipeline, he said.

Talking about inflation, he said a certain level of inflation was necessary for the growth of economy. The government’s monetary and fiscal policies are designed to contain the rate of inflation at certain level so that the economy and the people should remain unaffected, he said adding people should understand the difference between prices and inflation.

Taslim Kazi, chief manager SBP Rawalpindi, who is also director of IBP, spoke on aims and objectives of the institute and its programmes to develop human resources in the banking sector.

http://www.dawn.com/2007/03/16/ebr3.htm

 

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March 16, 2007
Harbour pollution costs navy $1bn a year

By Sher Baz Khan

ISLAMABAD, March 15: Severe pollution in Karachi harbour, caused by untreated industrial affluent and municipal waste, is not only taking its toll on marine life and civilian population but also causing $1 billion worth of losses to Pakistan Navy (PN) every year.

All the navy platforms including surface ships, fleet tankers, mine hunters and missile boats berthed at Karachi’s upper harbour and PN Dockyard had been severely damaged by the seawater, the composition of which has changed for the worst due to unbridled pollution in recent years, Commander PN Rear Admiral Mehmood Ahmed Khan told the Senate Standing Committee on Defence here on Thursday.

He expressed fears that some of the vital PN assets would not be available to it at ‘crucial times’ if the low conductivity and increased chloride and sulphate in seawater continued to inflict damages.

He said Indian navy had the edge to move from east to west and south while the PN was mainly dependent on the Karachi harbour.

“This is indicative of losses. If we count on other variables, the losses can be in billions and billions of dollars,” Secretary Defence Tariq Wasim Ghazi said, expressing concerns that the pollution could damage the defence capability of not only the PN but the PAF as well.

Air Vice Marshall Rao Qamar Sulaiman said the failure of the Ministry of Environment as well as provincial and city governments to implement the Pakistan Environmental Protection Act, 1997 in letter and in spirit had converted Karachi into one of the most polluted cities of the region.

He said Karachi was a strategic target for the enemy due to its industrial and commercial importance. He feared that due to air pollution, the PAF could face sever difficulties in defending this vital city in times of wars.

He said due to solid waste, industrial affluent and illegal mushrooming of slaughter houses and poultry farms, the Karachi skyline was full of smoke and big birds. The PAF had lost 10 aircraft and three pilots since 1985 in some 3,500 accidents caused by birds, he said, adding that in financial terms, the air force suffered losses to the tune of $200 million due to damage to its aircraft.

Senators Dilawar Hussain and Prof Khurshid Ahmed described as ‘shameful’ and ‘horrible’ the air and water pollution in Karachi and their damages to the national defence capabilities, marine life and civilians.

The committee also formed a taskforce that would complete recommendations for checking environmental degradation in Karachi and its harbour. The taskforce will hold its meeting next week and complete recommendations within two months. Cases against the industries and authorities responsible for pollution in Karachi would also be filed by the PAF and the PN in environmental tribunals.

The committee and defence ministry asked for a complete damage assessment survey of the pollution in Karachi. It feared that the real picture could be even more gruesome and the damages beyond thinking.

Minister of State for Environment Malik Ameen Aslam Khan drew the attention of the committee towards a recent World Bank report that stated that every year the losses caused to Pakistan by pollution were equivalent to 3-5 per cent of its Gross Domestic Product (GDP).

“This is alarming for a country which has a GDP growth of just 7 per cent,” Mr Khan said, expressing resentment over the performance of the Pakistan Environment Protection Agency. He said the government was facing losses worth billions of dollars every year due to its inability to spend just millions of rupees for controlling pollution.

According to PN officials, the National Environmental Coordination Committee (NECC) had been formed in September 2001 after the abolition of the Marine Pollution Control Board (MPCB).

http://www.dawn.com/2007/03/16/top10.htm