Pakistan Economy - News & Updates - Archive

[Neo]

March 16, 2007
Qatar gas pipeline project shelved

By Khaleeq Kiani

ISLAMABAD, March 15: The $3.5 billion plan for importing natural gas from Qatar through a 1,830-kilometre-long pipeline has been put on hold because of “non-availability of required gas quantities”.

“It is not on the forefront,” said Secretary Petroleum Ahmed Waqar, adding: “We are concentrating on IPI (Iran-Pakistan-India pipeline project) at the moment.”

The sources said that India had not yet taken a decision whether to join the IPI project at a delivered price of $4.25 per MMBTU (million British thermal unit) on its border. They said Pakistan had agreed with Iran on gas pricing formula based on Japanese crude oil that roughly translated into less than $3.85 per MMBTU. It involved indexation at $10 change in Japanese crude price with a crude price band of $30-70 per barrel. Mr Waqar declined to comment about the formula.

Sources in the petroleum ministry, however, told Dawn that the project sponsors – Crescent Petroleum of Sharjah – had informed the government of Pakistan that gas quantities required for the project were not available in Qatar in the next 8-10 years. They said Qatar had long-term commitments for liquefied natural gas (LNG) exports and could not spare enough volumes for a pipeline project.

Pakistan, the sources said, had asked Qatar to enhance gas availability for the project up to 2.6 billion cubic feet of gas per day (BCFD) but it was not ready to go beyond 1.6 BCFD. A gas sales and purchase agreement (GSPA) has been under consideration of Pakistan government for the past few years but it could not be signed.

The gas import plan from Qatar was originally floated by the Sharjah-based Crescent in 1999 but talks failed in 1995 over gas tariff between the two nations and the project could not take off. The project re-emerged and in 2000 Crescent Petroleum signed a fresh heads of agreement for exclusive rights with Qatar government to export of gas to Pakistan.

It did not get top priority in Pakistan because of its relatively higher cost and technical complexities because of its deep sea route when compared with its competing import pipeline options from Iran and Turkmenistan.

Mr Waqar said that Pakistan was still in the process of in-house consultations on the question of transit fee to be charged from India to let the gas pipeline pass through over 650-km territory in Pakistan.

Another official said a separate idea floated by Iran a few years ago of common user gas highway to dovetail Qatar’s gas with Iranian for transportation to Pakistan and India had also been shelved.

Pakistan’s current gas shortfalls hover around 300-350 mmcfd (million cubic feet of gas per day) and are likely go up to 778 MMCFD by 2009-10 and rising to more than 11,000 MMCFD by 2025 because of rising needs and slowing down supplies at home coupled with no discoveries expected to be on line in the short-run.

http://www.dawn.com/2007/03/16/top9.htm

 

[Neo]

Unexpected development which hopefully will boost the IPI paipeline.

India has been pushing for its own direct link to Qatar via the Arabian Sea, a plan likely to be affected by this news.

 

[Janbaz]

Unexpected development which hopefully will boost the IPI paipeline.

How will the IPI work? Meaning who will give gas to whom and how the payment system will work?

 

[Neo]

How will the IPI work? Meaning who will give gas to whom and how the payment system will work?

IPI - Iran - Pakistan - India gas line will run from eastern Iran via Pakistan to India. Both India and Pakistan will be buying directly from Iran via a quite complicated pricing system that is still under study and being negotiated by the three parties.

India will have to pay a slightly higher price since Pakistan will be earning $0.7 - 1.0 billion per annum in transit fee...

 

[Janbaz]

Pakistan studying options to buy gas from Uzbekistan: PM

16.03.2007 14:24:42
Pakistan was studying several options to meet its growing energy requirements and was interested in buying gas from Uzbekistan, Prime Minister Shaukat Aziz said.

Addressing a press conference here late Wednesday night, the Prime Minister said Pakistan was keen to utilize the surplus gas reserves in Uzbekistan however pointed that stability and peace in Afghanistan was vital to achieve this objective.

Uzbekistan is the eighth-largest producer of natural gas in the world. Pakistan is currently discussing the laying of over US seven billion dollars gas pipeline from Iran to Pakistan, going up to India, besides another one from Turkmenistan, passing through Afghanistan to meet the demands for its growing industry.

"We would like to see a stable, peaceful Afghanistan as it is the conduit for transport, energy and trade between Pakistan and Uzbekistan," the Prime Minister added.

He said peace in Afghanistan was not only vital for Pakistan, but also for the regional countries. He said Afghanistan has a "major role to play" to ensure that the economic and trade linkages for trade and energy cooperation in the region were possible in a conducive and peaceful environment.

Prime Minister Shaukat Aziz who is on a three-day visit to Uzbekistan said his talks with Prime Minister and President Islam Karimov were very "constructive" and both the countries expressed their desire to expand relations in a broad range of areas including banking, investment, agriculture and transportation.

He said both sides realized that the existing low levels of trade between the two countries need to be enhanced.

About his meetings, he said the tension over the Iranian nuclear issue, the OIC and the SCO and other issues of common concern came under discussion. To a question about SCO, the Prime Minister said Pakistan shared its vision how to help the organization achieve its objectives.

The Prime Minister said Pakistan was one of the member states with observer status along with Iran, India, Mongolia and others and it was Pakistan's policy to join any organization that has an important position in the region, was working for economic growth, prosperity and peace in the region and was fighting extremism.

About OIC, the Prime Minister said Pakistan believed that the member states must stand together to resolve the disputes facing them. He said Islam is a religion of peace, abhors violence and extremism and propagates harmony and brotherhood.

The Prime Minister said in his talks both the sides noted that the quantum of trade between the two countries was very little and there was wide scope of expanding it through greater interaction between the two private sectors, joint ventures and investment.

He said the two sides also identified several new areas for cooperation which can be further explored for helping the two growing economies and for the mutual interest of their people.

He said Pakistan desires that Uzbekistan also benefits from the quadrilateral road transportation arrangement it has with China, Kazakhstan and Kyrgyzstan, through the Karakoram Highway, besides utilizing the facilities at the newly constructed Gawadar and Karachi Port.

Blend of Education

Prime Minister Shaukat Aziz on Thursday called for a blend of religious, spiritual and academic education to bring greater harmony and moderation in the Ummah.

Talking to reporter here after visiting the 16th century complex, built along the ancient silk route and housed a grand mosque and an adjacent 'madrassa', the Prime Minister said this combination of education was very powerful and lead to creation of a more tolerant society.

He said Pakistan too was trying to mainstream its madrassas * schools of religious education, by imparting the young children a balanced education covering all aspects of modern life and scientific knowledge.

Shaukat Aziz said such a form of education was the first step towards creation of a society that excels in all areas including sciences and arts. He mentioned the great Muslim scholars of the past who made tremendous strides in all areas.

About his visit to Samarkand and Bokhara the Prime Minister said the region has produced great scientists, mathematicians and religious scholars and Sufis who spread Islam and promoted harmony and tolerance.

"These are the values that the entire Muslim world has to learn from and practice because Islam is our faith and propagates peace and harmony and is against violence and extremism."

He said this is what we have to let the world know and our people so that the world of tomorrow is far better and more prosperous, he added.

The Prime Minister soon after his arrival in Bokhara visited the Bahauddin Naqshbandi Complex. He paid his respects at the Mausoleum of great religious leader and founder of the Naqshband school of thought.

He prayed for progress, prosperity of Pakistan and the Muslim Ummah.

Keepint the traditions two lambs were also sacrificed for blessings of the Allah Almighty.

The Prime Minister also visited the Mausoleum of Ismail Samani, another religious scholar popular for his Islamic teachings.

Pak-Uzbek Tourism

Prime Minister Shaukat Aziz Thursday said there was a great potential of boosting tourism between Pakistan and Uzbekistan and both the countries were working on it to achieve this objective.

Talking to newsmen here after visiting "Rajestan" - a group of ancient 'madrassas' dating back to 15th and 17th century, the Prime Minister said a number of flights have started between the two countries and said with more flights trade and tourism between the two countries will further intensify.

The Prime Minister said both the countries have so much in common including their heritage, ancient links and a history that they share.

"It all is well worth the visit to each others' country and shows the bonds and ties which existed centuries ago."

He recalled visits of President Pervez Musharraf and that of Islam Karimov preceding his that will bring the two countries further closer.

"Visit to Uzbekistan would not be complete without visiting Samarkand - an ancient capital and on silk route and manifestation of Islamic teachings, thought, philosophy. Contributions made by scientists, scholars and thinkers from this part of the world to the entire world is very significant," he said.

The Prime Minister commended the government of Uzbekistan for maintaing the sites in an excellent manner and promoting the heritage and history for the entire Muslim world.

The Prime Minister said the people of Uzbekistan are warm and friendly and tourists from each country should visit the other.

He pointed that Pakistan's history stretching back to the Harrapa and Gandhara civilisations was a favourite for tourists interested in world history.

He said Pakistan offers a rich mosaic of natural beauty, history and culture that needs to be seen and invited tourists from Uzbekistan to visit. He also said Pakistani tourists can visit the historic places in Samarkand and Bukhara only a few hours away from their homes.

The Prime Minister soon after his arrival in Samarkand visited the Musoleum of Hazrat Imam Bokhari the renowned writer of Hadith. Penning down his impressions on the visitors book, the Prime Minister described it as a "real privilge".

"He was a scholar, researcher and religious leader who spent forty years collecting and authenticating the Hadith, covering the life and sayings of Holy Prophet (Peace Be Upon Him)."

Aziz lauded the Uzbek government for mainting this "precious site of our history". "We all need to follow Islamic teachings of brotherhood, peace, harmony an tolerance," he stated.

The Prime Minister, accompanied by the Governor of Samarkand also visited the Quran Museum and saw the artifacts and copies of Holy Quran from all over the world.

Uzbekistan was overrun by Genghis Khan in 1220. In the 1300s Amir Timur or Tamerlane the Great (1337-1405) built an empire with its capital at Samarkand, founded after conquering what is today known as Iran, Iraq, Syria, Turkey, the Caucasus, Northern India and the Golden Horde of Mongols.

His capital was a welcome abode for for scholars and artists.

Prime Minister Shaukat Aziz and members of his delegation later visited the famous observatory made by Timur's grandson Mirzo Ulugbek, who also was the first to design a sextant. He was briefed about the working of the observatory, termed by some as one of the world's wonders, and was used to precisely measure the movement of stars and planets.

Ulugbek is known in the world of science as one of the greatest in Middle Ages, astronomer and sponsor of art and knowledge.

Uzbekistan was one of the 15 member Republics of the Soviet Union between 1922 and 1991. In September, 1991 following the collapse of the Soviet Union, Uzbekistan became one of Central Asian Republics to proclaim independence. Uzbekistan's heritage goes back about 2,500 years. Besides its economic importance, it flourished as the medieval intellectual center of the Muslim world.

UzReport.
http://business.uzreport.com/uzb.cgi?lan=e&id=29220

 

[Owais]

Musharraf opens Asia's largest milk processing plant


KABIRWALA (updated on: March 16, 2007, 20:47 PST): President General Pervez Musharraf has said that the country's economy is doing well and the benefits of the economic turnaround are being passed on to the common man.

He was speaking at the inaugural ceremony of Asia's largest state-of-the-art milk processing plant here on Friday.

Nestle Pakistan, a subsidiary of Nestle S.A. Switzerland, has made an investment of $70 million for this project.

The ceremony was attended among others by Punjab Governor, Lt. Gen (R) Khalid Maqbool, Chief Minister Chaudhary Pervaiz Elahi, Federal Minister for Food, Agriculture and Livestock, Sikandar Hayat Bosan, Industries Minister, Jahangir Khan Tareen, provincial ministers and district nazim, Khanewal, Sardar Ahmad Yar Harraj.

President Musharraf said that the dairy development was a guarantee to the uplift and prosperity of the rural population in the country.

He said that the government had recently introduced a new livestock and dairy development policy with an objective to exploit the real potential of this vital sector of the national economy and help sustain a high economic growth rate.

The president said that Pakistan Dairy Development Company and Livestock and Dairy Development Board had been set up to expedite the process of development in the dairy sector.

He said that artificial insemination centres had been set up across the country to help improve the breed of the milch animals.

He said that embryo transfer technology centre had also been established to achieve this goal.

President Musharraf urged the rural community to adopt new techniques of dairy management to raise for their own economic benefits and the national development.

brecorder.com

 

[Owais]

From textile to heavy industry: Planning Commission backs diversification idea

ISLAMABAD (March 17 2007): The Planning Commission has strongly supported the diversification of investment in engineering goods, electronics, automobiles, machinery and supporting industries to broaden the country's industrial base in the next 20-25 years.

In a draft study the Commission says that diversifying investment from textile to other sectors could only ensure sustainable economic growth in the next over two decades.

The study says that exports of machinery, engineering and other manufacturing goods have 65 percent share in the total world exports whereas the share of engineering goods in Pakistan's exports is only 3 percent. The major component of our exports remains cotton-based and low technology products where we have the potential to compete, but world trade is shifting towards medium and high technology goods and services, according to the study.

Pakistan's traditional industries such as food and textile units still accounts for 13.8 percent and 24 percent of the total manufacturing value addition respectively. On the other hand, industries for machinery, electrical, non-electrical and automobile accounts for just 4.4 and 4.7 percent of the value addition respectively. Even though chemical industries accounted for around 15.2 percent of the manufacturing output most the chemical product are low-tech, according to the study.

Pakistan requires massive structural changes rather than a marginal change, a shift in the production paradigm to technology and knowledge-based industrialisation, with a focus on the quantitative and the qualitative growth of an integrated and competitive industry in the private sector. The inefficiencies of import substitution must give way to an export led strategy. Therefore, the investment must be diversified from traditional industries and services.

The Commission is of the view that diversification is unlikely to take place without government action and policies to embed private initiative within a framework of public action that encourages restructuring and diversification. The key instrument in this regard must be introducing the concept of pioneering industry which encourage new investments, increased productivity and diversification into areas such as machinery, electronics, biotechnology, industrial automation, food processing, pharmaceuticals and vaccines.

Pakistan's strength, at present, lies in textiles. However, the automobile sector, pharmaceuticals, electronics, electrical and home appliances are showing great promise on the basis of fast growing middle class, consumer financing and capacity utilisation. The prospect of exporting these goods also looks promising in the future, said the study.

According to the study, Pakistan is blessed with extremely large deposits of several important and strategic minerals. Copper is one such mineral and it is quite possible for Pakistan to be called a "copper country" 8 -10 years down the line than a "cotton country."

http://brecorder.com/index.php?id=539081&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Pharmaceutical sector open for 100 percent foreign equity: minister

ISLAMABAD (March 17 2007): Minister for Privatisation and Investment Zahid Hamid said on Friday that numerous opportunities exist in pharmaceutical sector of the country and this sector is open for 100 percent foreign equity.

He stated this in a meeting with Director, Glaxo Smith Kline (GSK) Biological, Belgium Stefan Vranckx, Chairman, GSK Pakistan Salman Burney and Trade Commissioner Abid M Hussain who called on him today in Board of Investment (BoI).

The minister assured all support and assistance from the government to Belgium Investors. He said the macro economic indicators are improving every year. He briefed them regarding increasing FDI inflows.

The delegation leader Stefan Vranckx speaking on the occasion said that they are willing to invest in the field of vaccine production in Pakistan on Private Public Partnership basis as Pakistan has quite big market for the product. They are also studying the potential of investing in dairy and gems and jewellery, he added.

Delegation leader said that GSK is one of the world's leading vaccine manufacturers. They are discovering new vaccines and developing more cost effective and convenient combination products to prevent infections that cause serious medical problems world wide, he added.

http://brecorder.com/index.php?id=539135&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Oil consumption rises 17.6 percent in eight months

KARACHI (March 17 2007): The oil consumption in the country has increased by 17.6 percent to 11.116 million tons in the first eight months of FY07 as compared to 9.452 million tons in the same period last fiscal. According to figures available here the consumption of MS stood at 738,000 tons in the first half of FY07 as compared to 788,000 tons in the same period in FY06, down by 6.3 percent.

Kerosene consumption stood at 141,000 tons against 152,000 tons, down by 7.5 percent. JP-1 consumption was 694,000 tons against 754,000 tons, down by 3.1 percent and HSD consumption declined by 3.1 percent to 4,643,000 tones against 4,793,000 tons. On the other hand LDO consumption increased by 20.4 percent in the first eight months of FY07 to 98,000 tons against 82,000 tons in the same period in FY06. Fuel Oil 4,663,000 tons against 2,786,000, increased by 67.4 percent. The consumption of other oil products increased by 43.7 percent to 140,000 tons in the first eight months of FY07 against 97,000 tons in the same period in FY06.

Khurram Schehzad, an analyst at Invest Capital Securities said that Black Oil demand has been continuing its upward march with a stunning 66 percent growth on year-on-year basis. FO consumption has increased due to galloping electricity demand (rising by more than 10 percent per annum).

LDO demand rose due to improved agricultural activities observed in Rabi season. Conversely, the demand for White oil products (MS, HSD, JP-1-8, HOBC and Kero) continued their decline of 3 percent on year-on-year basis in the first eight months in FY07.

Continuous decline in HSD and Mogas is attributed to muddy rains and continuous penetration of alternates like CNG and LPG. Also, the smuggled Iranian cheaper Mogas in Balochistan/South region has also tarnished local Mogas consumption.

JP-1's decline has been aggravated due to sealing of Islamabad airport (in recent past) and change in flights schedules. JP's exports were also halted due to documentation anomalies at Afghanistan's border.

February-07 volume maintains 18.9 percent growth YoY: During February 2007, the overall petroleum products' volume stood at 1.31 million tons against 1.10 million tons recorded in February 2006. Consumption of Black Oil (up 66 percent) in February 2006 has driven the uninterrupted growth.

PSO recorded a 66 percent market share in the eight months of FY07, down from 70 percent observed in seven months of FY07. APL has also shown a shave-off in its market share to 4.2 percent in the eight months of FY07. Shell's market share settled at 14 percent.

Soaring electricity demand (with gas shortages to power plants) and inadequate water reserves coupled with Parco's shutdown would keep FO demand in the high range in the coming months as well. This trend would likely continue until gas supplies by way of imports or local discoveries are restored. In contrast, the demand for major white oil products' like Mogas and HSD would continue to decline amidst alternate fuel's presence, Khurram Schehzad added.

http://brecorder.com/index.php?id=539055&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Workers’ remittances up by 21.82pc in eight months

KARACHI: Pakistan received an amount of $3,416.53 million as workers’ remittances during the first eight months (July 2006 - February 2007) of the current fiscal year as against $2,804.65 million in the corresponding period of last fiscal year, registering an increase of $611.88 million or 21.82 per cent.

The amount of $3,416.53 million includes $1.55 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

A press note issued by the central bank on Friday said that inflow of remittances during the first eight months of the current fiscal year from USA, GCC countries (including Saudi Arabia, United Arab Emirates (UAE), Kuwait, Oman, Qatar and Bahrain), UK and EU countries amounted to $891.97 million, $640.79 million, $513.69 million, $467.86 million, $281.50 million and $97.50 million respectively as compared to $785.41 million, $443.09 million, $419.29 million, $371.36 million, $266.72 million and $77.83 million during the same period last fiscal year. Remittances received from Canada, Australia, Norway, Switzerland, Japan and other countries during the first eight months amounted to $521.67 million as compared to $430.38 million in the corresponding period of the last fiscal year.

The monthly average remittance for the period July 2006 - February 2007 comes to $427.07 million as compared to $350.58 million during the same period of the last fiscal year registering an increase of 21.82 per cent.

During last month (February 2007), Pakistanis working in foreign countries remitted $457.18 million as against $358.13 million in February 2006, depicting an increase of $99.05 million or 27.66 per cent.

According to the break up, Pakistan received workers’ remittances during February, 2007 from USA ($123.96 million), Saudi Arabia ($88.26 million), UAE ($69.82 million), GCC countries - including Bahrain, Kuwait, Qatar and Oman ($60.50 million), UK ($33.64 million) and EU countries ($11.89 million) as compared to the corresponding receipts from the respective countries during February, 2006 i.e. $89.98 million, $58.80 million, $59.44 million, $45.73 million, $30.27 million and $7.12 million.

http://www.thenews.com.pk/daily_detail.asp?id=47129

 

[Janbaz]

Micro credit schemes to assist low-income groups

KABIRWALA (APP) - President General Pervez Musharraf has said that the country’s economy is doing well and the benefits of the economic turnaround are being passed on to the common man.
He was speaking at the inaugural ceremony of Asia’s largest state-of-the-art milk processing plant here on Friday. Nestle Pakistan, a subsidiary of Nestle S.A. Switzerland, has made an investment of $70 million for this project. The ceremony was attended among others by Punjab Governor, Lt Gen (R) Khalid Maqbool, Chief Minister Chaudhary Pervaiz Elahi, Federal Minister for Food, Agriculture and Livestock, Sikandar Hayat Bosan, Industries Minister, Jahangir Khan Tareen, provincial ministers and district Nazim, Khanewal, Sardar Ahmad Yar Harraj.
President Musharraf said that the dairy development was a guarantee to the uplift and prosperity of the rural population in the country. He said that the government had recently introduced a new livestock and dairy development policy with an objective to exploit the real potential of this vital sector of the national economy and help sustain a high economic growth rate.
President said that Pakistan Dairy Development Company and Livestock and Dairy Development Board had been set up to expedite the process of development in the dairy sector. He said that artificial insemination centres had been set up across the country to help improve the breed of the milch animals. He said that embryo transfer technology centre had also been established to achieve this goal.
President Musharraf urged the rural community to adopt new techniques of dairy management to raise for their own economic benefits and the national development. President Pervez Musharraf said the government was introducing micro credit schemes to assist the low-income groups in rural areas for livestock farming and dairy business.
He urged the farmers to utilise the facility of chillers for the storage of milk so that they could sell their produce to the milk plants at price higher than the one in the local market.
General Musharraf said the poverty would be eliminated by the masses themselves. However, the government would facilitate them through all the possible means.
Talking about government’s efforts to improve water availability in the country, he said that all dams including Kalabagh Dam would be constructed to enhance country’s water storage capacity for irrigation use.
He said the Mangla dam upraising project would increase the storage capacity by three million acre feet. The President said the Nestle milk processing plant at Kabirwala (district Khanewal) is the largest milk plant in Asia with world’s largest milk collection centre.

The Nation.
http://www.nation.com.pk/daily/mar-2007/17/bnews2.php

 

[Janbaz]

President inaugurates mega pipeline project

Pakpattan (PR) - President General Pervez Musharraf has inaugurated a mega pipeline project undertaken by Sui Northern Gas Pipelines Limited for the supply of natural gas to the southern districts of Punjab, said a press release issued by SNGPL Managing Director here on Saturday.
This project is of significant importance and a milestone towards government’s commitment for the welfare and prosperity of people of Pakistan, as it would not only supply gas to three district namely Pakpattan, Bahawalnagar and Vehari, but would also benefit twelve tehsils It is estimated that about 1.3 million people of the area will benefit from the facility of natural gas, which would enable them to change their living style. The proposed project will enhance industrial and commercial development in the area including setting up of numerous CNG filling stations for providing less expensive and environment friendly fuel to the masses.
Energy plays a vital role in the national development. The present government has kept it on top of its priority list. The government has framed petroleum policies, which facilitate and encourage foreign companies to invest in Pakistan’s energy sector. The government is trying its best to provide energy resources to maintain the GDP growth of 6.5-8 per cent in the country.
The Ministry for Petroleum and Natural Resources is playing a significant and important role in our national development and has made sure that the governmental policies are properly implemented, so that the common man benefits from these policies. As a result of promising and successful petroleum policy, the indigenous gas production has increased from 2.3 billion cubic feet per day to 4 billion cubic feet per day during the last 7 years.
The use of natural gas in a country reflects its growth of national economy. At present, natural gas is contributing about 51pc of Pakistan’s primary energy requirements. The location of Pakistan has its strategic importance. Iran, having world’s second biggest gas reserves, is located in the South West of Pakistan. India, the second biggest population in the world and energy deficient, is located in its east, whereas China and Central Asian States are located in northern borders of Pak. As such, Pakistan is being termed by the energy experts as the future “Energy Hub”.
By virtue of its geographical location, Pakistan can act as energy corridor for supply of gas from Iran to India as well as China, after meeting its own requirements. A considerable work towards proposed Iran - Pakistan -India (IPI) pipeline project has been done and recently the pricing mechanism of gas has been agreed by the three stakeholders. On the other hand, the newly developed Gawadar port can conveniently be used for the export of natural gas to the Far East in the form of LNG. Similarly, energy resources from Central Asian States can be brought to Pakistan and Gawadar through Afghanistan for export to Far East countries.
The present Government is committed to supply gas, electricity and safe drinking water to the people of Pakistan. In terms of gas supply projects the government has funded projects worth Rs 30 billion comprising 1900 schemes on which the work is in progress at more than 700 locations. Both the Sui companies are engaged in the implementation of these projects under government’s Khushhal Pakistan Schemes.

The Nation.
http://www.nation.com.pk/daily/mar-2007/18/bnews1.php

 

[Janbaz]

Foreign investment to cross $5bn: PM

ISLAMABAD: Prime Minister Shaukat Aziz on Saturday said that Pakistan has become a destination of choice for foreign investment which is expected to cross $5 billion this year, highest in the country’s history.

He was talking to Dr Yousef Al-Zalzala, Chairman of Kuwait Gulf Link Petroleum Company, who called on him here at the Prime Minister House on Saturday. The prime minister said that the sharp upsurge in foreign investment witnessed by the country was due to the successful structural reforms, high growth and macroeconomic stability, achieved by the country.

He said that consistency, continuity and transparency of policies have given confidence to the private sector to plan for future, which has contributed to fast growth and development of the country.

The prime minister said that acting in line with the requirements of the free market economy, the government is facilitating the private sector to play pro-active role while providing necessary regulatory framework and enabling environment for the business community.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=47273

 

[Janbaz]

Pak goods in great demand in Gulf

LAHORE: There is a huge demand for Pakistani products in the Gulf markets especially Saudi Arabia and Kuwait, said Ikramullah, Director TDAP and the leader of Pakistan’s business delegation which returned home after a visit to Gulf states.

“We visited chambers of commerce in Makkah, Jeddah and Riyadh besides meeting businessmen in Kuwait city,” he said while talking to APP here on Saturday. Pakistan’s 12-member trade delegation, arranged by Trade Development Authority of Pakistan (TDAP) had representation from the sectors including pharmaceuticals, surgicals, rice and fruit and vegetables. Ikramullah hoped that the visit would help boost Pakistan’s exports to Saudi Arabia and Kuwait significantly.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=47293

 

[Neo]

From textile to heavy industry: Planning Commission backs diversification idea

ISLAMABAD (March 17 2007): The Planning Commission has strongly supported the diversification of investment in engineering goods, electronics, automobiles, machinery and supporting industries to broaden the country's industrial base in the next 20-25 years.

In a draft study the Commission says that diversifying investment from textile to other sectors could only ensure sustainable economic growth in the next over two decades.

The study says that exports of machinery, engineering and other manufacturing goods have 65 percent share in the total world exports whereas the share of engineering goods in Pakistan's exports is only 3 percent. The major component of our exports remains cotton-based and low technology products where we have the potential to compete, but world trade is shifting towards medium and high technology goods and services, according to the study.

Pakistan's traditional industries such as food and textile units still accounts for 13.8 percent and 24 percent of the total manufacturing value addition respectively. On the other hand, industries for machinery, electrical, non-electrical and automobile accounts for just 4.4 and 4.7 percent of the value addition respectively. Even though chemical industries accounted for around 15.2 percent of the manufacturing output most the chemical product are low-tech, according to the study.

Pakistan requires massive structural changes rather than a marginal change, a shift in the production paradigm to technology and knowledge-based industrialisation, with a focus on the quantitative and the qualitative growth of an integrated and competitive industry in the private sector. The inefficiencies of import substitution must give way to an export led strategy. Therefore, the investment must be diversified from traditional industries and services.

The Commission is of the view that diversification is unlikely to take place without government action and policies to embed private initiative within a framework of public action that encourages restructuring and diversification. The key instrument in this regard must be introducing the concept of pioneering industry which encourage new investments, increased productivity and diversification into areas such as machinery, electronics, biotechnology, industrial automation, food processing, pharmaceuticals and vaccines.

Pakistan's strength, at present, lies in textiles. However, the automobile sector, pharmaceuticals, electronics, electrical and home appliances are showing great promise on the basis of fast growing middle class, consumer financing and capacity utilisation. The prospect of exporting these goods also looks promising in the future, said the study.

According to the study, Pakistan is blessed with extremely large deposits of several important and strategic minerals. Copper is one such mineral and it is quite possible for Pakistan to be called a "copper country" 8 -10 years down the line than a "cotton country."

http://www.brecorder.com/index.php?id=539082&currPageNo=2&query=&search=&term=&supDate=