Pakistan Economy - News & Updates - Archive

[ghazi52]

(APP): Mobilink would invest dollars 550 million here this year.

This was stated by a senior official of the company on Wednesday.

He said with this amount the total investment of Mobilink would be more than dollars 2.5 billion since 1994.

He said this year’s investment of dollars 550 million would be in infrastructure, human resource development, franchise network development and customers’ facilities.

It was also pointed out that the number of Mobilink subscribers across Pakistan is now about 24 million.

 

[Neo]

Pakistan and China agree to strengthen economic underpinnings

BEIJIGN (March 22 2007): Foreign Minister Khurshid Mahmood Kasuri has said that his meetings with Premier Wen Jiabao and Foreign Minister Li Zhaoxing were very productive and successful, as both the sides agreed on the need of strengthening economic underpinnings to their existing very strong political and defence relationship.

In an interview with APP at the end of his official visit to Beijing, he said that his tour was a success, reflecting the feelings of the close brotherhood and friendship between Pakistan and China.

Kasuri said that he was touched by the fact that the Chinese Premier Wen Jiabao during his meeting on Tuesday particularly recalled memorable visit to Pakistan and felt the sort of affection he had received.

During his meeting with Foreign Minister Li Zhaoxing, he thanked for the singular honour being the first foreign leader provided opportunity to visit the China's highly safeguarded space facilities.

Kasuri said that Premier Wen Jiabao during his meeting remarked not many leaders in China had been allowed to visit that space facility.

The fact that he was allowed to visit the China's top facility in space exploration was an indication of the closeness of the relations between the two countries, he said. The minister expressed the hope that during the upcoming visit of Prime Minister Shaukat Aziz, the process for cooperation for peaceful use of space would be carried further.

He said that during his meetings with the Premier and the Foreign Minister Li Zhaoxing both was agreed to strengthen economic underpinnings to their very strong political and defence relationship.

Both sides reiterated their conviction, implementation of 5-year Economic and Trade Programme, the Free Trade Agreement and the Joint Investment Company. These accords were the landmark documents and would pave the ground for further Chinese investment in major projects in Pakistan.

He said that both the sides felt that during the last 2-3 years the relationships, which were always very close in various areas had acquired a new momentum in the economic sector.

The foreign minister pointed out that Pakistan would soon open the Consulate General in Chengdu. "This will yet be another example of Pakistan desire to forge ever closer relationship with China.

China has expressed satisfaction with the induction of JF-17 in PAF while both sides agreed to develop border region by creating trans-border economic zone and on the need for framework agreement on cooperation in mineral and cooperation in banking sectors.

Kasuri said after holding talks with his Chinese counterpart Li Zhaoxing that lasted approximately three hours here on Tuesday.

The two Foreign Ministers expressed, in the spirit of the talks that Foreign Minister Kasuri had with the Chinese Prime Minister, a desire to upgrade Pakistan-China relationship to new heights.

The Foreign Minister Kasuri mentioned the inauguration of first phase of Gwadar Port and thanked China for its assistance in building the deep-sea Port.

The Chinese Foreign Minister Li congratulated the government and people of Pakistan on this development. It may be recalled that China had sent Minister of Communications as a Special Envoy to attend the inauguration ceremony held at Gwadar on Tuesday.

Foreign Minister Li expressed satisfaction on induction of two JF-17 aircraft in Pakistan Air Force. The aircraft has been jointly built by Pakistan and China.

More JF-17 aircraft are under production and these will become the mainstays of Pakistan and Chinese Air Force. The two JF-17 aircraft will fly during the National Day parade to be held on March 23. Foreign Minister Li, in response to a proposal from Foreign Minister Kasuri about developing trans-border economic zone between Pakistan and China on the model of China-South East Asia Economic Cooperation told Kasuri that it was a good model to replicate in respect of China and Pakistan also and said that the experts from two countries would study the proposal.

The two Foreign Ministers held a comprehensive exchange of views on regional and international issues of mutual interest which included the composite dialogue between Pakistan and India aimed at addressing all outstanding issues including the issue of Jammu and Kashmir, the Iran nuclear issue, situation in Afghanistan, Six-party talks on North Korea and a number of other issues. The Chinese Foreign Minister complemented President Pervez Musharraf and the government of Pakistan for showing leadership and vision with respect to Pakistan-India peace process.

http://www.brecorder.com/index.php?id=541936&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Thursday, March 22, 2007

IT industry grows 50pc

KARACHI: The country’s IT industry has registered more than 50 per cent growth over the last one year, the board of directors of Pakistan Software Export Board was told on Wednesday.

“Pakistan’s IT industry has grown to a size of $2 billion, using WTO formula mode 2, the same formula used by India and other countries to calculate the industry size,” said Yusuf Hussain, Managing Director PSEB in a presentation to a board of directors’ meeting, chaired by Awais Ahmed Khan Leghari, Federal Minister for IT and Telecom. He said the PSEB had over 900 member companies including some world-class companies like MIXIT, Scrybe, NetSol, TPS, Pixsense, Folio3 and Si3.

“These companies have benefited from various PSEB initiatives which have helped them track international clients. Some of these companies have also set up their offices in various parts of the world,” a PSEB statement quoted the MD as saying. He mentioned the strategic programmes implemented by the PSEB to promote the industry, which included marketing and PR, industry HR development, company capability development, IT parks, strategy and research, industry finance and public policy. As a result of these programmes, there were more than 125 ISO and CMMI certified IT companies in Pakistan, he added.

The meeting was told the PSEB had also launched apprenticeship and internship programmes for the industry’s HR development and more than 2,500 students had benefited from the programme.

http://www.thenews.com.pk/daily_detail.asp?id=47921

 

[Neo]

Thursday, March 22, 2007

Pak IT industry has grown to $2b: PSEB

ISLAMABAD: The board of directors of the Pakistan Software Export Board (PSEB) was informed here on Wednesday that tremendous growth of 57% was seen in the IT sector over the last one year and Pakistan’s IT industry has grown to a size of two billion dollars.

The meeting of board of directors of the Pakistan Software Export Board (PSEB) was held here at the PSEB head office and was chaired by Federal Minister for Information Technology and Telecom Awais Ahmed Khan Leghari.

Yusuf Hussain, Managing Director, PSEB presented a strategic road map for Pakistan IT Industry. While presenting the profile of the IT industry, Yusuf Hussain highlighted the tremendous growth of 57% in the sector over the last one year. He added that Pakistan IT industry has grown to a size of two billion dollars (using WTO formula mode 2 - the same formula used by India and other countries to calculate the industry size).

The PSEB has over 900 member companies including some world-class companies like MIXIT, Scrybe, NetSol, TPS, Pixsense, Folio3 and Si3. These companies have benefited from various PSEB initiatives, which have helped them track international clients. Some of these companies have also set up their offices in various parts of the world.

Yusuf Hussain mentioned the following strategic areas implemented by PSEB to promote the industry. These include Marketing & PR, Industry HR Development, Company Capability Development, IT Parks, Strategy & Research, Industry Finance and Public Policy. As a result of these programs, there are more than 125 ISO and CMMI certified IT companies in Pakistan.

http://www.dailytimes.com.pk/default.asp?page=2007\03\22\story_22-3-2007_pg5_3

 

[Neo]

Thursday, March 22, 2007

‘Strong market makes Pakistan easier sell abroad’

HONG KONG: Pakistan, which saw foreign investors flee in the wake of the September 2001 attacks on the United States, is an easier sell these days as a bull market enters a sixth year on strong economic growth, privatisations and foreigner-friendly policies.

“It’s the bad perception that is the hurdle,” said Mohammed Sohail, director of equity broking at Karachi-based JS Global Capital Ltd., one of Pakistan’s largest brokers, during a roadshow in Hong Kong to meet fund managers and brokers. While investors still worry about geopolitical instability, sentiment is improving as privatisations move forward, big firms sell stocks and bonds abroad, and overseas companies invest.

“The focus has shifted more towards macroeconomic factors and less towards the political,” Sohail said over lunch.

The benchmark KSE-100 share index has risen nearly nine-fold since the start of 2002.

Foreigners, who do not face ownership caps, account for about 5.5 percent of market capitalisation compared with 3 percent a year ago, and increasingly drive sentiment, Sohail said.

Net foreign portfolio inflows totalled $697.4 million during the July-January period, according to central bank data.

Last month, JPMorgan reopened its equity brokerage in Pakistan, making it the first foreign house to return since leaving earlier this decade. Standard Chartered Plc and ABN Amro recently bought lenders in the country. Privatisations have pushed the market’s free float up to 24 percent from 20 percent a year ago, compared with about 50 percent in typical emerging markets, according to JS Global.

About 70 percent of foreign funds invested in Pakistan through JS Global originate in the United States or Britain, but a large chunk of those orders are routed through Hong Kong given the time difference. While President Pervez Musharraf is expected to win another five-year term later this year, some investors worry the ruling coalition could be weakened, potentially disrupting ongoing pro-market policies.

And resentment among some in Pakistan to Musharraf’s alliance with the United States against the Taliban, as well as two assassination attempts, also give investors pause.

But market players hope the government has succeeded in entrenching reforms that will last whether Musharraf is in power or not. “If the opposition comes into power, the economic policies will be the same,” said G.M. Malkani, chief executive of JS Global.

JS’s top picks for 2007 are National Bank of Pakistan, Bank of Punjab, Oil & Gas Development Co , Pakistan Oil Fields, and Pakistan State Oil.

http://www.dailytimes.com.pk/default.asp?page=2007\03\22\story_22-3-2007_pg5_9

 

[Owais]

EU seafood orders diverted to India and Bangladesh

KARACHI (March 22 2007): Due to European Union (EU) ban on Pakistan's seafood, its export orders are being diverted to India and Bangladesh, sources told Business Recorder on Wednesday. There are two peak seasons of seafood exports.

One is during August-October and the other in March-May every year, but this year it seems impossible for exporters to export seafood to EU countries in the second peak season due to EU ban, sources said.

"We exporters were expecting around $20-25 million more export orders from EU countries during current fiscal as compared to previous fiscal year but after EU ban now these are diverting to India and Bangladesh," said an exporter. He said that after the EU ban, not a single order has been placed by the EU importers with Pakistani exporters. He said Indian seafood price is around 5-10 percent higher than Pakistan's.
http://brecorder.com/index.php?id=541828&currPageNo=1&query=&search=&term=&supDate=

 

[Owais]

Sofitel Tower's groundbreaking: Shaukat for articulately designed tourism packages

KARACHI (March 22 2007): Prime Minister Shaukat Aziz has said that articulately designed tourism package should be offered to outside world where people wait to receive information about a destination which offers, business potential recreation, information and relaxation.

He was speaking at the groundbreaking ceremony of a five star hotel 'Sofitel Tower Karachi' held at the Governor House on Wednesday. Sindh Governor Dr Ishratul Ibad Khan, Chief Minister Dr Arbab Ghulam Rahim, State Minister for Tourism Nilofar Bakhtiar, Sindh Industries Minister Adil Siddiqui, and a large number of business and trade representatives attended the ceremony.

The Prime Minister said that tourism and hotel industry go hand in hand. Better facilities attract business and encourage others to come up with investment proposals.

He said that Pakistan is blessed with abundant historic, religious, picturesque and business sites. "We should package our tourism offer as historic tourism, religious tourism and business tourism and hotels with exquisite cuisine and world class services."

He said that Sofitel would add to the city skyline and showcase the potential of the city to others who are still in the process of making investment decision, or a visit plan.

He said, "Pakistan needs to rebuild its brand as a peaceful destination for business and recreational activities."

He said along with five star hotels there is need of two and three star hotels to suit different pockets. It is availability of affordable hotels that attracts tourism. He asked Sofitel to come up with proposal of cheaper hotels.

Referring to Gwadar Port the Prime Minister said it would change the entire Gwadar City and its adjoining areas. There would be a world class new city humming with business activities.

He said inspired by the success of Gwadar Port the Sindh Chief Minister has asked me to consider KT Bander as the next port site. The Prime Minister said feasibility study would be conducted and if feasible, KT Bander would be the next port in Sindh.

He said that Law and order is improving, business activities are taking place, investment is coming and there should be no doubt about the stability of the government. The Prime Minister also talked about the ongoing protest of lawyers and asked them to maintain the decorum of protests.

This hotel will be in heart of Clifton area at the site of Mideast Hospital. It will have 28 floor, 216 rooms, and parking space for 600 cars. It is the first building of this magnitude in the past 30 years that had been taken up in local and foreign partnership.

http://brecorder.com/index.php?id=541895&currPageNo=2&query=&search=&term=&supDate=

 

[Owais]

France keen to invest in automobile sector

ISLAMABAD (March 22 2007): France has decided to resume negotiations with Pakistan on the possibility of investment in automobile sector by a renowned French car manufacturing company. The negotiations would be held in light of recently approved New Auto Policy, sources told Business Recorder on Wednesday.

The French government, Renault Company and the ministry of industries had earlier abandoned negotiations without reaching any agreement in the absence of New Policy, which is first official document to have determined long-term tariff lines for the existing car assemblers and the new entrants.

In this regard, an important meeting is expected today (Thursday) between French Ambassador and Minister for Industries, Production and Special Initiatives, Jahangir Khan Tareen. This would be the first meeting between the two sides after the approval on the new policy, the sources said.

They said that le ading car manufacturers had shown interest in investing in the automobile sector following the introduction of new policy. Renault is one of these companies and the French envoy's meeting is first step in this regard, the sources said.

A government official said that the French embassy in Pakistan wanted a briefing on new policy. Since French government holds a considerable shares in Renault, it was expected that the company's plan might be discussed once again at the meeting.

He said that new policy offers considerable tariff incentives for new entrants. The French government would be interested in knowing more about the incentives pledged in the policy, he added.

He explained that the policy allows new entrants assembling cars in Pakistan through import of 100 percent CKD (complete knock down) kit at the rate of duty applicable to non-indigenised parts. However, the new entrants must have to provide a commitment to develop and purchase local parts for fitting in local assembled cars.

The new entrant means a potential manufacturer of car/LCV who has no direct or indirect relationship with any of the present assemblers in Pakistan, the official added.

Renault's high ups are of the view that demand for Logan model was strong and Renault International was consequently looking at increasing production capacity for the budget car.

The company is vying for new markets and it eyes on the markets such as South Africa and the Asean [Association of Southeast Asian Nations] region along with India and Pakistan.

Renault and Japanese car maker Nissan already have a global alliance, and Nissan South Africa confirmed in 2005 it would not renew the assembly and parts and distribution agreement it had with Fiat Auto South Africa that was due to expire in July 2008.

According to some media reports, the contract started in July 1998 and the companies jointly announced last year the early termination of the agreement this August, leading to speculation that Nissan SA was about to start making Renault cars.

http://brecorder.com/index.php?id=541915&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

New gas reserves discovered in Sindh

ISLAMABAD (March 23 2007): OMV Aktiengesellschaft, Central Europe's oil and gas group, on Thursday announced a discovery of gas in Latif 1 exploration well in Sindh province. This is an additional discovery to OMV's two major gas fields - Miano and Sawan, which were brought on stream in 2001 and 2003 respectively.

Latif 1 operated by OMV (Pakistan) Exploration GmbH, opens potential of further discoveries in the area close to India Pakistan border in Pakistan. The announcement made by OMV led joint venture said that Latif 1 pressure reached a total depth of 3,520 m and encountered a total of 18.7 meter net gas/condensate pay in three layers at depths of 3,200 to 3,450 meter.

It added that two intervals were successfully tested in February last, confirming potential of the new reservoir units. Preliminary results showed that the well is capable of flowing over 10 MMSCFD from the tested zones. The JV-partners envisage further appraisal activities, including production testing, drilling and acquisition of additional 3 D seismic to delineate the extent of this stratigraphic discovery.

The Joint Venture of the Latif Exploration Licence consists of OMV (33.4 percent operator), ENI (33.3 percent) and PPL (33.3 percent). The new discovery and the existing infrastructure of Sawan, Kadanwari and Miano fields are located directly between the markets of the two Pakistani gas transmission and distribution companies, Sui Northern Gas Pipelines and Sui Southern Gas Company, which enables OMV to deliver to both networks.

http://www.brecorder.com/index.php?id=542184&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Foreign investment reaches record high of $3.952 billion

KARACHI (March 23 2007): The foreign investment (FI) in Pakistan has touched all-time high of $3.952 billion denoting 98 percent increase during the first eight months of the current fiscal. In the first eight months of the last fiscal, the total FI was $1.992 billion. This has also broken the last fiscal year's record of $3.872 billion.

The portfolio investment also reached all-time high of $981.2 million (including $150 million MCB Bank GDR) during the first eight months of current fiscal as compared to $351 million during the fiscal year of 2005-06.

"Although foreign investment figures are healthy but it will not put a positive impact on the GPD or on the economy," said Muzamil Hussain, economist at KASB securities. He said that during the current fiscal no green field investment has taken place, huge investment has gone into the existing businesses in the country.

The statistics released by the central bank on Thursday showed that the total FI including privatisation proceeds rose by $1.959 billion during the July-February period and reached all-time high of $3.952 billion as compared to $1.992 billion during the same period of the last fiscal.

In the last fiscal year (2005-06) all-time high FI of $3.872 billion was recorded, but this has broken all-time record and FI has reached $3.952 billion during the July-February of the current fiscal 2006-07, depicting an increase of $170 million during the eight months as compared to last fiscal 2005-06.

Exclusive of privatisation proceeds FI shows an increase of 133 percent to $3.818 billion during July-February of the current fiscal as previously stood at $1.638 billion, depicting an increase of $2.180 billion during the first eight months of current fiscal year.

Muzamil said that the actual portfolio investment stood at $616 million but the central bank data shows $981 million portfolio investment in which the central bank has included GDR of MCB bank and many other transactions.

During the current fiscal, foreign investors bought Lackson Tobacco and some other running institutions, which means that no fresh industry has been set up and the current foreign investment failed to bring about a positive change in the GDP, he added.

Privatisation proceeds have declined by 62 percent or $220.8 to $133.2 million during the first seven months of the current fiscal year as compared to $354 million during the same period of the last fiscal year.

Total FI compiled on $2.97 billion (including $133.2 million privatisation proceeds) of foreign direct investment (FDI) and $981.2 million (including $150 million MCB Bank GDR) of portfolio investment during July-February 2006-07.

Foreign Direct Investment (FDI) with privatisation proceeds has increased by 95 percent to $2.97 billion during July-February period of the current fiscal year. Previously it stood at $1.521 billion during the same period, indicating an increase of $1.449 billion.

The FDI without privatisation proceed has increased by 143 percent to $2.837 billion during first eight months of fiscal year 2007 as compared to $1.167 billion during July-February period of last fiscal, showing an increase of $1.67 billion during July-February of current fiscal year.

The portfolio investment has surged by 108 percent during July-February of 2006-07, as a result, the portfolio investment reached $981.2 million during the first eight months of the current fiscal year against $470.9 million in the corresponding period last fiscal year, denoting an increase of $510.3 million.

The official figures shows that during the July-February 2006-07 United States (US) is the leading investor in the list of foreign investors with total investment of $1.100 billion as compared to $721.5 million during same period last fiscal year. US portfolio investment and FDI stood at $538.5 million and $562.1 million respectively during the first eight months of current fiscal year.

The Western Europe is second in the list with $1.10 billion investment including $278.1 million portfolio investment and $822.2 million FDI. United Kingdom investment stood at $875 million including $547 million of FDI and $328 million of portfolio investment during the first eight months of the current fiscal.

Similarly, the European Union has invested $988.9 million as compared to $237.3 million last fiscal, China also led with $678.5 million against $1.5 million during the July-February last fiscal.

The United Arab Emirate (UAE) has invested $328.2 million, Singapore $214.5 million, Switzerland $86.5 million, Netherlands $71.5 million, Mauritius $60.6 million, Kuwait $56.1 million, Australia $44 million, Bahrain $37.7 million, Japan $39.3 million and Oman $17.9 million during July-February of the current fiscal.

http://www.brecorder.com/index.php?id=542163&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Eight percent GDP growth in 2007-08 envisaged

ISLAMABAD (March 23 2007): The Planning Commission has envisaged 7.5-8 percent GDP growth in 2007-08 due to strong pick-up in domestic and foreign direct investments and excellent performance of agriculture, manufacturing and services sectors, official sources told Business Recorder.

The Planning Commission (PC), in its mid-year review (July-December 2006) of Medium Term Development Framework (MTDF) to be discussed at a meeting of National Economic Council (NEC) chaired by the Prime Minister Shaukat Aziz on March 27, is confident of achieving 7 percent GDP growth target set for the current fiscal year.

However, the PC has expressed its dissatisfaction over the growth rate of services sector but at the same time termed the information insufficient to assess the overall performance of the sector.

"At present, among the various services sub-sectors, growth of wholesale and retail trade has been revised to 7.2 percent as compared to annual plan target of 8.8 percent," the sources added.

In the annual plan, the GDP growth for 2006-07 was projected at 7 percent, contributed by sectoral growth rate of 4.5 percent in agriculture and 13 percent in Large Scale Manufacturing (LSM) while the services sector growth was projected at 7.1 percent. It is interesting to note that the PC has also projected 2 percent decline in LSM growth to 11 percent against the target of 13 percent.

To attain the projected GDP growth, an investment of Rs 1895.4 billion (21 percent of GDP) was envisaged. About 72 percent of fixed investment was estimated to come from the private sector and remaining 28 percent from the public sector. The national savings were estimated at 17.2 percent of the GDP.

The PC, which in its export strategy papers had projected 6.5 percent GDP growth due to declining exports, is now saying the country would achieve 7 percent GDP growth, which is contrary to its earlier claim.

GDP growth for 2006-07 is estimated to be 7 percent on the basis of preliminary assessment of agriculture growth, LSM data for July-September 2006 and import data for July-January 2006-07.

The sources said the Ministry of Food, Agriculture and Livestock (Minfal) has projected 5 percent growth in agriculture due to bumper wheat crop and accelerated livestock production against the target of 4.5 percent.

They said, the growth of eight manufacturing sector items declined, high-speed diesel by 15.6 percent; furnace oil 12.7; phosphatic fertiliser 7.8; electric meters 19.9; electric fans 9.1; electric bulbs 10.4; TV sets 31.3 and bicycles 1.4 percent.

The PC has also termed the current account deficit not in line with the current year's projections saying that it is likely to surpass the annual plan target of $6.3 billion as it was $4.4 billion during July-December 2006.

http://www.brecorder.com/index.php?id=542209&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

IFC to provide $125 million loan to KESC

KARACHI (March 23 2007): The International Finance Corporation (IFC), the private sector arm of the World Bank Group has signed an agreement to provide $125 million loan to the Karachi Electric Supply Corporation (KESC).

The financing will also support KESC's capital investment programme of $809 million, designed to increase the company's power generation capacity by up to 795 megawatt (MW) in addition to rehabilitation of its existing generation by 220MW and to improve the quality of service to its consumers.

The electricity shortages in the metropolitan have been widespread, with the summer of 2006 proving to be a period of particularly lengthy power outages. The corporation is committed to improve service to its customers and has embarked on a sizeable investment programme to increase its generation capacity and improve transmission and distribution network.

The corporation's investment programme is the largest in country's power sector since the mid-90s and would add 220MW to its existing facility at Korangi and up to 575 MW to its existing facility at Bin Qasim power plant.

The IFC is committed to assisting in a successful turnaround of corporation, which will improve quality of service to consumers and demonstrate the benefits of power sector privatisation.

The IFC has played a lead role in arranging the long-term financing packages for the corporation with a lender group that is expected to include the Asian Development Bank, National Bank of Pakistan, Habib Bank Limited, United Bank Limited and MCB Bank Ltd.

Access to long-term debt to match the long-term nature of its project assets is important for the viability of KESC's investment programme. In addition to its role in the financing, the IFC has shared with the KESC its global experience in investing in recently privatised power utilities and has helped KESC upgrade its environment and social practices.

After the signing ceremony, IFC's Executive Vice President, Lars Thunell said: "IFC is very pleased to be supporting KESC's investment programme, which will play an important role in improving the reliability and quality of service of Karachi's power supply, a city that accounts for a significant share of Pakistan's industrial and economic activity."

http://www.brecorder.com/index.php?id=542169&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

March 23, 2007
Pakistan offers bright chances for US entrepreneurs

WASHINGTON, March 22: Pakistan's continued high growth and attractive business prospects have bolstered international investors' confidence and expanded US-Pakistan cooperation in various fields can help realise the South Asian country's enormous economic potential on modern lines, American and World Bank experts said at a discussion.

“The United States cooperation can be very helpful in building infrastructure in Pakistan, diversifying exports, improving tax system and can also help promote security and stability in the region,” said K. Alan Kronstadt, a specialist in Asian Affairs for the Congressional Research Service.

The discussion on “Sustaining Economic Reform in Pakistan” was jointly sponsored by the Pakistani American Leadership Centre and the SAIS South Asia Studies Programme at Johns Hopkins University.

Kronstadt noted that Pakistan has sustained good macro-economic trends and underscored that human capital development and continuity of reforms would further spur economic prospects in the long-term. In the context of regional stability, he said the US involvement can help facilitate resolution of outstanding issues between Pakistan and India.

Esperanza Gomez Jelalian, executive director of the US-Pakistan Business Council observed that Pakistan's impressive growth rate at an average of 7 per cent of GDP in the last few years was a testimony to its economic potential. She said the council was fully supportive of US-Pakistan strategic dialogue for expanding cooperation in energy, education, science and technology areas.

“American entrepreneurs eye a lot of trade and business opportunities between the two countries,” she said and listed oil and gas, surgical instrument manufacturing, information technology and engineering as among the most prospective sectors.

She noted that all sectors of the economy were open to foreign investment and the entrepreneurs can have 100 per cent equity and Pakistan has a huge market of 160 million people.

Jelalian expressed the council's support for Pakistan-US bilateral investment treaty. She informed the gathering that Pakistan drew $3.5 billion in foreign investment last year and this year the figure is expected to boost substantially.

In the question-answer session she observed that political stability in recent years had been a factor in Pakistan's consistent growth, which she said would touch 7 per cent of GDP this year.

She welcomed the initiative of setting up Reconstruction Opportunity Zones and said these zones would offer hope and economic opportunities to the people.

The participants discussed fiscal and trade reforms, the importance of good governance, transparency and second generation reforms in the context of Pakistan's continued economic progress.

Adnan Hassan, a senior adviser at the World Bank, said Pakistan was witnessing a decline in poverty as was evident in the unprecedented production and spiralling sales of vehicles, TV sets, motorbikes, refrigerators, cell phones and other necessities of modern life.

Pakistan has seen the emergence of a large middle class in urban areas, he said and was confident that it would propel economic growth in Pakistan in the years ahead, laying the basis for sustainable industrial progress.

“The economic reality of Pakistan has a lot of good news to offer: the poverty is reducing, the middle class is growing and a widely spread out organised banking system offers a basis for sustained and fast-paced growth.”

In this respect, he also highlighted the importance of human resource development, particularly quality education and training for Pakistani youth, pinpointing that as much as 50 per cent of its population is below the age of 19 years.

Responding to a question he remarked that the entrepreneurs kept existence of business and growth opportunities as their uppermost consideration. He said Pakistan ranked higher than many major regional economies in terms of ease of doing business.

He said with investors from the Far Eastern countries like Malaysia, European countries and South Africa planning to open up their businesses in Pakistan in a host of sectors. Early elements are in place for Pakistan to grow into a regional hub of trade and economic activity like Dubai.

Gary Clyde Hufbauer, a senior fellow at Peterson Institute for International Economics, saw a good possibility of a free trade agreement between Pakistan and the United States but said that would happen step-by-step and the two countries should first sign bilateral investment treaty.-

http://www.dawn.com/2007/03/23/ebr2.htm

 

[Neo]

March 23, 2007
IFC plans to invest $300m in Pakistan

ISLAMABAD, March 22: The International Finance Corporation (IFC) will invest around $300 million in various projects in Pakistan during the current fiscal year. This was disclosed by Chief Executive Officer of IFC Lars Henrik Thunnell during a meeting with Prime Minister Shaukat Aziz on Thursday at Prime Minister House.

An official announcement said that Mr Thunnell informed the premier that IFC was supporting the private sector in various sectors including banking, infrastructure, hotel industry and energy. He congratulated Pakistan on the progress the country had made in improving the investment climate during the last seven years.

Prime Minister Shaukat Aziz said that the government’s economic strategy had envisaged a greater role for the private sector in all sectors of the economy and IFC could play the role of a catalyst to enable private sector drive the economic development.

He said that as a result of consistency of economic policies and the provision of level-playing field, there was a substantial increase in investment leading to the generation of economic activities, jobs creation and better growth.

Mr Aziz said government welcomed local and foreign investors to take advantage of the improved investment climate in the country.

He said there were opportunities for local and foreign companies to set up asset management activities in Pakistan.

He said that Pakistan had vast potential in the fields of housing and real estate, power generation, oil and gas development, IT and telecom, agribusiness, tourism, coal mining and engineering sectors.

http://www.dawn.com/2007/03/23/ebr8.htm

 

[Neo]

Friday, March 23, 2007

Pak economic growth has bolstered int’l confidence: WB

WASHINGTON: Pakistan's continued high growth and attractive business prospects have bolstered international investors' confidence and expanded US-Pakistan cooperation in various fields can help realize the South Asian country's enormous economic potential on modern lines, American and World Bank experts said at a discussion.

"The United States cooperation can be very helpful in building infrastructure in Pakistan, diversifying exports, improving tax system and can also help promote security and stability in the region," said K. Alan Kronstadt, a specialist in Asian Affairs for the Congressional Research Service.

The discussion on "Sustaining Economic Reform in Pakistan” was jointly sponsored by the Pakistani American Leadership Center and the SAIS South Asia Studies Programme at Johns Hopkins University.

Kronstadt noted that Pakistan has sustained good macro-economic trends and underscored that human capital development and continuity of reforms would further spur economic prospects in the long-term. In the context of regional stability, he said the US involvement could help facilitate resolution of outstanding issues between Pakistan and India.

Esperanza Gomez Jelalian, Executive Director of the US-Pakistan Business Council, observed that Pakistan's impressive growth rate at an average of 7 percent of GDP in the last few years is a testimony to its economic potential. She said the council is fully supportive of US-Pakistan strategic dialogue for expanding cooperation in energy, education, science and technology areas.

"American entrepreneurs eye a lot of trade and business opportunities between the two countries," she said and listed oil and gas, surgical instrument manufacturing, information technology and engineering as among the most prospective sectors.

She noted that all sectors of the economy are open to foreign investment and the entrepreneurs can have 100 percent equity and Pakistan has a huge market of 160 million people.

Jelalian expressed the Business Council's support for Pakistan-US bilateral investment treaty. She informed the gathering that Pakistan drew US dollars 3.5 billion in foreign investment last year and this year the figure is expected to boost substantially.

In the question-answer session she observed that political stability in recent years has been factor in Pakistan's consistent growth, which she said would touch 7 percent of GDP this year.

She welcomed the initiative of setting up Reconstruction Opportunity Zones and said these zones would offer hope and economic opportunities to people. The participants discussed fiscal and trade reforms, the importance of good governance, transparency and second generation reforms in the context of Pakistan's continued economic progress. Adnan Hassan, a senior advisor at the World Bank, said Pakistan is witnessing a decline in poverty as is evident in the unprecedented production and spiraling sales of vehicles, TV sets, motorbikes, refrigerators, cell phones and other necessities of modern life. Pakistan has seen the emergence of a large middle class in urban areas, he said and was confident that it would propel economic growth in Pakistan in the years ahead, laying the basis for sustainable industrial progress. "The economic reality of Pakistan has a lot of good news to offer the poverty is reducing, the middle class is growing and a widely spread out organized banking system offers a basis for sustained and fast-paced growth."

In this respect, he also highlighted the importance of human resource development, particularly quality education and training for Pakistani youth, pinpointing that as much as 50 percent of its population is below the age of 19 years.

Responding to a question he remarked that the entrepreneurs keep existence of business and growth opportunities as their uppermost consideration. He said Pakistan ranks higher than many major regional economies in terms of ease of doing business.

He said with investors from the Far Eastern countries like Malaysia, European countries and South Africa planning to open up their businesses in Pakistan in a host of sectors "early elements are in place" for Pakistan to grow into a regional hub of trade and economic activity like Dubai.

Gary Clyde Hufbauer, a senior fellow at Peterson Institute for International Economics, saw a good possibility of a free trade agreement between Pakistan and the United States but said that would happen step-by-step and the two countries should first sign bilateral investment treaty.

http://www.dailytimes.com.pk/default.asp?page=2007\03\23\story_23-3-2007_pg5_16