Pakistan Economy - News & Updates - Archive

[Neo]

OGDCL and NBP among world's 2000 high performers

LAHORE (April 01 2007): Two Pakistani companies have been included in 2000 high performing companies in the world for faring well in terms of turnover, profits, assets and market value. According to 'Global 2000' ranking released by American magazine, "Forbes," this week, the companies included in the list are Oil and Gas Development Company Limited (OGDCL) and National Bank of Pakistan (NBP).

Forbes Global 2000 enlists world's largest companies based on composite ranking of sales, profits, assets and market value. Most of the high-ranking companies belong to the United States with Citigroup on the top of the table.

http://www.brecorder.com/index.php?id=545456&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Pakistan, China to enter Transit Trade Agreement

By Khalid Mustafa

ISLAMABAD: Pakistan and China are to kick off parleys for joint study to enter into Transit Trade Agreement (TTA), on April 10-12 in Beijing besides initiating talks for FTA in services sector.

Under the TTA both the countries would be able to use each other’s territory for transit of their goods for export to other countries. Both the sides will discuss the entry and exit points, mode of transportation of goods and security of containers under customs procedures. For this particular purpose, both the countries would carry out study on Transit Trade Agreement.

Pakistan wants to grab the Central Asian markets by using the transit route of China and in return Beijing would be allowed to use Gwadar port and Karachi port for export of its goods to other countries.

Both the countries have taken this initiative after the Quadrilateral Transit Trade Agreement (QTTA) signed in 2004 between Pakistan, China, Kyrgyzstan and Kazakhstan.

Since the initiation of trade under QTTA, only 8 trucks have been passed on through Pakistan’s territory. He highlighted as to why the trade under QTTA could not pick up mentioning the irritant, which include visa and quarantine issues. Keeping in view the no progress in trade under QTTA, both Pakistan and China have decided to enter into bilateral Transit Trade Agreement.

“This will be the second Transit Trade Agreement which Islamabad would enter, as Pakistan and Afghanistan have already had Pak-Afghan Transit Trade Agreement (ATTA).”

Pakistan and Afghanistan signed the Afghan Transit Trade Agreement in 1965. According to the agreement, the goods can be transited through only two land routes ie Peshawar-Torkham and Chaman-Spin Baldakh. Now both the countries are pondering to revise the Transit Trade Agreement, as such agreement needs to be revised after every 10 years, but the existing ATTA is operational since 1965.

http://www.thenews.com.pk/daily_detail.asp?id=49227

 

[Neo]

Exporters ignore Chinese market

KARACHI: Traditionally, throughout in its trade relations with China, Pakistan has had a chronic trade deficit. It is primarily because China is a competitor in most of the major sectors of Pakistan’s potential export area, said Danish Saeed, Chairman of the Special Committee on Regional Economic Affairs. He was addressing a meeting of the committee at the Karachi Chamber of Commerce and Industry. Saeed added that after formal signing of Pakistan-China FTA, bilateral trade between the two countries surged by 44pc in the previous fiscal year. But the balance remains overwhelmingly in China’s favour, whose exports to Pakistan amounted to $2.7bn, compared to Pakistan’s exports worth $464m in 2005-06. “This is a very critical situation, which shows that Pakistan is increasingly becoming an importing partner of China.” He expressed grave concern that business community is ignoring the export potential to China and focusing on its established export destinations ie US and Western Europe.

http://www.thenews.com.pk/daily_detail.asp?id=49250

 

[Neo]

Sunday, April 01, 2007

Pakistan unlikely to give India ‘most favoured nation’ status

By Sajjad Malik

ISLAMABAD: Pakistan is unlikely to grant ‘most favoured nation (MFN)’ status or other trade-related concessions to India under the South Asia Free Trade Agreement (SAFTA) during the 14th SAARC summit in India on April 3-4, sources told Daily Times.

The sources said that although trade talks would be central to the summit, the dream of a free-trade area would continue to remain hostage to the rivalry between Pakistan and India for the foreseeable future, as Pakistan had made it clear that trade depended on the resolution of outstanding issues.

“But as a face saver, Pakistan will never say at the SAARC forum that progress on SAFMA should be linked to progress on the core issues, including Kashmir,” said the sources, adding that Pakistan had been discreetly exploiting various technical issues to withhold the MFN status for India.

When Daily Times asked an official about Pakistan’s obligations under SAFTA and its comparison with the signing of a free-trade agreement with China, he said, “No SAFTA and MFN status for India, as Pakistan would suffer. No comparison with the agreement signed with China, as it does not make things that can compel us culturally to buy. The Indians can use airwaves to change consumer patterns. Secondly, China is not a strategic competitor.”

The sources said that India’s non-tariff barriers, hidden levies and surcharges had been helping Pakistan confront its assertions. India has one of the most secretive non-tariff barriers, and many countries, including the US, have already sued it at the WTO, they said.

SAFTA came into force on July 1, 2005, and aims to establish free-trade areas by 2015. So far, tariffs have been reduced twice among the SAARC members, and a third cut in rates will take place on July 1. Where other countries apply across-the-board tariff cuts, Pakistan only reduces taxes on a list of 1,074 items from India.

The sources said that India’s efforts to bring Pakistan into a trading arrangement to blunt political issues would certainly fail, but Pakistan had apparently no objections to easing travel restrictions.

“An important agenda item of SAARC would be multi-model transportation across the region, which would facilitate road, air and rail links, and Pakistan has shown willingness to hold talks on it,” they said.

http://www.dailytimes.com.pk/default.asp?page=2007\04\01\story_1-4-2007_pg7_25

 

[Neo]

Sunday, April 01, 2007

Microfinance integral to Pakistan’s poverty reduction strategy, says Shaukat Aziz

ISLAMABAD: Prime Minister Shaukat Aziz has said that microfinance is an integral part of Pakistan’s poverty reduction strategy, and that the government is making all out efforts to expand this programme from the present 1 million to 3 million households by 2010.

Talking to Micro-Credit Summit Campaign Director Sam Daley Harris, who called on him here on Saturday, the prime minister said that micro-credit was the best way to reach out to the marginalised and could change the destinies of people in developing and underdeveloped countries.

“The government is making multiple interventions to reduce poverty. We are focusing on creating income-generating avenues for the poor and the disenfranchised, especially women, through micro-credit institutions,” said Aziz.

The prime minister said the government was promoting public-private partnerships and encouraging civil society organisations and enterprising philanthropists to organise microfinance for the society’s less privileged sections.

He said Pakistan’s regulatory environment presented all the major features of an encouraging policy environment for microfinance institutions (MFIs), including the government’s sustained commitment and substantial investment to help develop the sector, a responsive regulatory framework and an apex institution to extend on-lending and institutional building funds to NGOs and MFIs. There is a growing trust between policy makers and practitioners to work jointly to develop the sector, he added.

http://www.dailytimes.com.pk/default.asp?page=2007\04\01\story_1-4-2007_pg7_16

Microfinance important pillar, integral part of Pakistan`s poverty reduction strategy: PM Aziz
Sunday April 01, 2007

ISLAMABAD: Prime Minister Shaukat Aziz has said that microfinance is an important pillar and integral part of Pakistan`s poverty reduction strategy and the government is making all out efforts to expand its coverage and out reach from the present 1 million to 3 million households by 2010.
The Prime Minister was talking to Mr. Sam Daley Harris, Director Micro Credit Summit Campaign who called on him here on Saturday

"Micro-credit is the best way of reaching out the marginalized and the forgotten and can change the destinies of the people of developing and under developed countries", the Prime Minister said.

The Prime Minister said the government is making multiple interventions to cause a dent in poverty. As part of our lasting and sustainable poverty reduction strategy, the Prime Minister said, we are focusing on creating income-generating avenues for the poor and disenfranchised and specially the women through micro credit institutions.

The Prime Minister said the government has adopted a holistic and all-inclusive strategy for the spread of micro-credit. The government, he said, is promoting public-private partnership and encouraging civil society organizations and enterprising philanthropists to come forward and involve themselves in organizing microfinance credits to the less privileged sections of society.

He said the banks and entrepreneurs should also setup micro finance institutions to help the less privileged sections of society improve their living standards.

He said in Pakistan microfinance is poised for growth, as the regulatory environment for Micro Finance Institutions (MFIs) in the country presents all the major features of a conducive and enabling policy environment for MFIs. This includes sustained commitment and substantial investment by the government to help develop the sector, a responsive regulatory framework and an apex institution to extend on-lending and institutional building funds to NGO & MFIs . He said there is a growing trust between policy makers and practitioners to work jointly to develop the sector.

Giving an overview of the economic situation the Prime Minister said as a result of the efforts made during the last seven years, the economic landscape of the country has completely transformed. The size of economy and per capital income has doubled and poverty has declined by 10 percentage points.

He said the government is acting on a policy of growth with equity. It has undergone a paradigm shift in its approach to planning and policy formulation. The shift is towards formulating people centric- plans and policies that benefit the common at the grass roots level.

He said the thrust on Millennium Development Goals (MDGs) with emphasis on growth and enhanced pro poor allocations is an important part of the vision 2030 adopted by the government. The government, the Prime Minister said is focusing on eradication of poverty and hunger, universal primary education, gender equality and women empowerment, reduction in child mortality, better maternal health and on ensuring environmental sustainability.

He said during the last four years public expenditure on education and health has grown by 21% and 19.5% respectively.

Mr. Sam Daley Harris appreciated the efforts made by Pakistan to upscale the outreach of microfinance.

He said Pakistan is effectively using microfinance for income generation and employment creation opportunities for the deprived sections of the society.

The meeting was attended among others Secretary General Finance, Mr. Nawid Ahsan, Principal Secretary to the Prime Minister Mr. Khalid Saeed and senior officials.

http://www.paktribune.com/news/index.shtml?173790

 

[Owais]

EXPO to signify national progress: Humayun
KARACHI: Federal Minister for Commerce, Humayun Akhtar Khan has said that the objective of EXPO Pakistan 2007 was to introduce foreign investors and businessmen with progress in Pakistan.

He was speaking at a banquet hosted by Sindh Governor Dr. Ishrat ul Ebad Khan in the honour of foreign delegates here.

Humayun Akhtar said: “ We want to inform the world about changing life of the people in Pakistan.” Amid the event seminars would also held to underline economic profile of the country, he said.

Akhtar said that the visit of Pakistan would definitely change views of newcomers about the country and its people.
http://www.geo.tv/geonews/details.asp?id=4116&param=3

 

[Janbaz]

Domestic debt up by Rs85.150 billion

ZAMIR SHEIKH
KARACHI - The domestic debt has increased by Rs 85.150 billion during the current fiscal year. The domestic debt which stood at Rs 2.384 trillion during June 30, 2006 to Jan 07 against Rs 2.299 trillion during the same corresponding period of the last fiscal, showing upward trend to the tune of Rs 85.150 billion.
In percentage, the domestic debt had shown 3.69 per cent increase in seven months of the current financial year. In foreign exchange, the growth in domestic debt is higher by over $ 1 billion from July-January 2007.
The domestic debt comprises three major categories; permanent debt, floating debt and unfunded debt.
The permanent debt consists market loans, federal government bonds, income tax bonds, government bonds, special government bonds for SLIC (Original), special government bonds for SLIC (capitalization), bearer national funds bonds (BNFB), special national fund bonds, government bonds (issued to HBL for settlement of CBR refund), federal investment bonds (auction), federal investment bonds (TAP), Pakistan investment bonds (PIBs) and prize bonds. The floating debt that was registered at Rs982.70 billion in 30 June2006 to Jan 07 against Rs940.23 billion during the comparable corresponding period depicting an increase of Rs42.472 billion. The unfunded debt consisted of defence saving certificates, national deposit certificates, khas deposit certificates, special saving certificates (Reg), special saving certificates (bearer), regular income certificates, bahbood saving certificates, khas deposit accounts, saving accounts, special saving accounts, mahana amdani accounts, pensioner’s benefit accounts, postal life insurance and GP funds.
The unfunded debt which was recorded at Rs 887.714 billion during June 30 2006-Jan 07 against Rs 859.16 billion during the same last correspond period showed an increase of Rs 28.552 billion.
The federal government moped up Rs 14.177 billion through issue of Special Saving Certificates during June 30, 2006-Jan 2007 as compared to Rs 13.984 billion during the corresponding period of last fiscal, showing an increase of Rs1.938 million.
The Federal government wants to maintain domestic debt within the prescribed limit in the current budget. In the past the annual growth of domestic debt had been around 10 per cent, but it had now dropped to below five per cent.

The Nation.
http://www.nation.com.pk/daily/apr-2007/3/bnews3.php

 

[Janbaz]

Pak-China bilateral trade volume may hits $15 billion

RAWALPINDI (updated on: April 02, 2007, 23:27 PST): President Pervez Musharraf on Monday expressed the hope that the volume of bilateral trade between Pakistan and China will reach $15 billion from the existing $5 billion after the signing of a free trade agreement (FTA).

He was talking to Chinese Foreign Minister Li Zhaoxing who called on him here.

The president said Pakistan-China friendship is all weather and time tested and expressed the hope that it will further flourish with the passage of time.

He particularly referred to Gwadar port project and the production of latest fighter aircraft JF-17 Thunder as a shining example of strong Pakistan-China friendship.

The president conferred Hilal-e-Pakistan on Chinese Foreign Minister in recognition of his services for promoting Pakistan-China relations.

The Chinese foreign minister said China is proud of having a friend like Pakistan. He said multifaceted co-operation with Pakistan will continue in future as well.


http://www.brecorder.com/

 

[Neo]

IMF rates Pakistan after India on budget openness

ISLAMABAD (April 03 2007): Pakistan stands next to India in the region on open budget index prepared by the IMF to rate countries on how open their budgget books are to the citizens Pakistan, India and Sri Lanka scored 51, 52 and 47 percentage points respectively and achieved while Bangladesh scored 40 percent. However, UK scored 88 percent and USA scored 81 percent.

The IMF Budget Transparency and Accountability provides minimal, some, substantial and extensive rating on percentage of scores a country achieves out of 100. Pakistan and India have been bracketed in "some" category while Britain and US in the "extensive" category.

The index evaluated the quality of information provided to the citizens in the seven key budget documents including pre-budget statement, executive budget proposal, citizens' budget, in-year reports, mid-year review, year-end review, auditors report that all government should enable public during the course.

Pakistan's performance indicates that the government provides citizens with some information on the central government's budget and financial activities, but there is much room for improvement.

The executive budget proposal is one of the most important documents released during the budget year. Pakistan's proposal provides some information to the public, scoring 59 percent out of 100 percent information needed to present the public with a comprehensive picture of the government's financial activity. This suggests that there is substantial room for improvement.

The IMF suggest in its new imitative that "Pakistan should report to citizens regularly during the budget year on their spending, revenue collection and borrowing in yearly reports. Pakistan provides some information in its in-year reports, but it would greatly strengthen public accountability by publishing more comprehensive in-year reports as well as mid-year reviews".

This document provides the public with updates on what can be expected for 'some' in rating during the second half of the budget year. A year-end report by the executive is released in a timely manner, but lacks some details needed to facilitate comparisons between enacted levels and actual outcomes.

While Pakistan does make its audit report public, it does not provide any information on whether the audit report's recommendations are successfully implemented. Citizens require both accesses to information, and opportunities during the consideration of the budget to use that information to ensure their informed participation in budget debates.

Pakistan's score on the Open Budget Index suggests that the public's access to information could be improved. The researcher also found that opportunities for citizen participation could be increased. For example, the legislature does hold public hearings on the budget-but there are no hearings in which the public can participate.

Research to complete the open Budget Questionnaire was undertaken by: Dr Qazi Masood Ahmed, Associate Professor Institute of Business Administration; and Technical Advisor, Social Policy and Development Centre. When contacted, Qazi Masood said that he has been striving to have a seminar on open budget index in Pakistan. He hoped that the seminar could be held in a month's time.

http://www.brecorder.com/index.php?id=545717&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

April 03, 2007
Causes for slow performance in export identified

By Mubarak Zeb Khan

ISLAMABAD, April 2: The lack of export diversification — for products and markets — is the main reason for recent sluggish performance in Pakistan’s merchandise exports, said Asian Development Bank report.

Trade policy should therefore focus on developing strategies for diversification and enhancing export competitiveness. There is also a need to devise a comprehensive policy for increasing production of various products, which currently is highly concentrated on textile products.

According to the report, Asian Development Outlook 2007, Pakistan’s textile export prospects could further weaken in the wake of abolishing of China specific safeguards in the year 2008 imposed by the US and EU against textile and clothing imports.The main issue is exports’ heavy reliance on textiles as well as limited geographic diversification. Between them, textiles and clothing, cotton, leather, rice and sports goods account for over three quarters of total exports. Thus a downturn in these segments has a significant overall impact.

Conversely, immediately after the ending of quotas, textile exports accelerated strongly, to 16.8 per cent in fiscal year 2006 from 6.6 per cent the year before.

Increasingly, however, textile exports have come under competitive pressure from Bangladesh, China and India, specifically in the higher value-added categories that have traditionally not been strength of the Pakistani textile sector. This pressure, in turn, has led to a fall in international export prices.

Consequently, Pakistani textile exports increased by only 4.3 per cent by value in the first half of fiscal year 2007. The low expected local cotton production in 2007 and removal of restrictions on textile exports from China in 2008 will further hit Pakistan textile exports.

Similarly, the export of rice grew by 1.2 per cent during the period under review. However, export of leather and its products dipped by 26.3 per cent and sports goods by 14.4 per cent, respectively.

Another issue is that the bulk of Pakistan’s trade is with a handful of countries, particularly in Europe and North America. It is expected that the growth in trading volumes in those regions will decline in 2007, hitting Pakistan’s exports there.

Exports too will rise, but the high domestic cost of production in the textile and garment sector as well as stiff competition from the China and India is likely to restrict total export growth to about 8 per cent.

Over the past five years, merchandise exports have delivered over 12 per cent average annual growth, as they have benefited from an enabling policy environment, low inflation, the low cost of credit, and general upturn in economic activity.

In fiscal year 2005 and 2006, they grew by 16.6 per cent and 15.4 per cent, respectively, but started decelerating in the second half of fiscal year 2006, to just over 6.5 per cent, and to 5 per cent in the first half of fiscal year 2007. Some of the deceleration stems from the high base effect, but the underlying causes appear structural, added the report.

http://www.dawn.com/2007/04/03/ebr2.htm

 

[Neo]

Impact of inflation

THE second quarter report of the State Bank of Pakistan released on Friday shows that while the broad inflationary pressures on the economy have somewhat eased, the consumers continue to suffer from rising food prices. The food inflation rate, which dipped in January, returned to double-digit level in February. The average annual inflation as measured by Price Consumer Index (CPI) during July-February 2007 at 7.7 per cent is above the official target of 6.5 per cent set for the current fiscal year. The high food inflation price is attributed mainly to an increase in the prices of rice, flour, some vegetables and fruits. Abnormally high food prices have kept the CPI inflation above eight per cent for most part of this fiscal year. While the tight monetary policy has helped subdue the non-food and non-energy inflation, government policies have failed to tackle the high consumer prices and have left the middle and lower income groups at the mercy of a volatile market. To manage trade and current account deficits, the government is focusing on foreign capital and financial inflows that are creating excess liquidity. These depress the rate of savings for financing investment and contribute to inflationary pressures on the economy. In its report, the central bank has stressed that inflation needs to be contained to provide positive real returns to savers that would lower the country’s dependence on what the regulator describes as “potentially fickle foreign investment.” It is the small savers who provide the bulk of the money for investment.

There is also so much excess money in the domestic market unable to find productive outlets and is parked in speculative trading in commodities, stocks and real estate. Unfair trade practices which contribute substantially to a high inflation rate have been normally curbed by imports to improve supplies in a market cornered by hoarders and speculators. But the government continues to drag its feet on promulgating a competition law and setting up of a Competition Commission to tackle monopolies, cartels and oligopolies indulging in rampant market abuse. While inflation is eroding the purchasing power of the rupee in the domestic market, its real effective exchange rate index has appreciated by 2.5 per cent during the first eight months of the current year because of rising inflows of loans, foreign investments and remittances. The State Bank says that it indicates the loss of external competitiveness of the rupee and reinforces the need for bringing down domestic inflation. Much neglected, the problem needs to be tackled properly and on a priority basis, particularly when the growth in exports has plummeted to a mere four per cent.

In the absence of effective social safety nets and any policy on income distribution and not enough jobs, the overarching issue is the misery that a persistent high rate of inflation inflicts on the fixed income groups particularly the poor. The vulnerable are getting more impoverished and their quality of life is deteriorating. Many often go without meat for weeks. With all hopes dashed, some commit suicide in desperation. The development strategy needs to be reviewed and altered to ensure a high growth rate with low inflation. The poor and vulnerable do not have a voice in the military-led government to seek solutions to their problems as the regime is not accountable to the people. Democracy is very much a bread and butter issue for the ordinary citizen.

http://www.dawn.com/2007/04/03/ed.htm#1

 

[Neo]

Tuesday, April 03, 2007

Pakistan Steel sales cross Rs 3.3 billion

KARACHI: Pakistan Steel’s sales during the month of March of the current year, has crossed the Rs 3.3 billion mark, which is great landmark achievement in the history of this vital national institution.

A press statement issued here Monday, said the sale figures for the third quarter of fiscal year from January, to March 2007, stood at Rs. 8614.88 million which is the highest ever sale figure achieved during any third quarter of previous financial years. The previous highest for this quarter was Rs 7762.68 million.

The total sale during July–06 to March–07 stood at Rs 21035 million whereas the sale of corresponding period of the previous fiscal year was Rs 13113 million. The sale of for the current year is higher by more than 60% as compared to corresponding period of last year.

http://www.dailytimes.com.pk/default.asp?page=2007\04\03\story_3-4-2007_pg5_5

 

[Neo]

Shaukat presents liberal trade roadmap: Saarc summit opens

NEW DELHI (April 04 2007): Prime Minister Shaukat Aziz on Tuesday, addressing the Saarc summit here, presented a roadmap based on a liberal trade regime for more and open trade and putting in place an effective mechanism for resolution of disputes through dialogue to secure a bright future for the South Asia region.

The roadmap calls for promotion of an environment of genuine peace and security in South Asia and for solution of the differences and disputes among member countries through dialogue and compromise. It attaches great importance to mutual trust and confidence for meaningful cooperation in the region.

It calls for reinforcement and upholding the principles of peaceful coexistence, especially to ensure respect for sovereign equality among Saarc members. It recommends for building up of inter-dependencies and sharing of best practices to help each other and calls for practical steps to make Saarc agenda of cooperation and ground reality It stresses need for a level playing field for effective regional division of labour and production. It also calls for true and open environment for regional trade through level playing field, market access and requirements of development in each member state. It also calls for cooperation to improve infrastructure for region-wide transportation and communication links and promotion of energy security.

Prime Minister Shaukat Aziz highlighted Saarc's importance and said it was high time to make the dream of putting the South Asia region on a course of peace and development.

He said he was all out for meaningful use of the Saarc forum to change the destiny of its over billion people. He said: "Let's use the potential that South Asia is blessed with, and make it free of hunger and disease."

He recalled that Saarc has achieved much but has potential to achieve even more. He called for an independent analysis of strength and weaknesses and said that it was necessary to seize the moment to leverage potential and overcome the challenges confronted by South Asia.

The Prime Minister said that Pakistan was committed to the Saarc process and it was member states' collective responsibility to demonstrate courage and commitment, and the wisdom and foresight, to transform South Asia into a vibrant, progressive and prosperous region. He said that the achievement of the goals would require a paradigm shift in the thinking and attitudes of Saarc countries' leadership.

He expressed confidence that South Asia's ingenuity, determination and imagination would transform to make it an ideal region for other regions. He said that islands of affluence and centres of excellence already exit in the region. Saarc was attracting remarkable interest and support from many countries and welcomed Afghan President Hamid Karzai's participation in Saarc summit.

He said that historical linkages and cultural affinities with the region made Afghanistan a natural and indispensable ally. He said he hoped for a very positive role from Afghanistan for making Saarc more effective in the future.

He also welcomed China, Japan, Korea, the United States and European Union for formal association with Saarc and said that their participation in the Saarc summit underscored growing relevance. He added that Pakistan always advocated such interaction, as it believes that Saarc expansion would open up vast possibilities and opportunities for mutually beneficial cooperation.

He said that Saarc should focus on social uplift, poverty alleviation, enhanced people-to-people contacts, establish a free trade regime and environmental protection. He said that Saarc has travelled a long distance, but much remains to be accomplished. He said that progress remains short of aspirations, as South Asia is yet to forge quality and intensity of regional cooperation that exits in many other regions to bring about revolutionary transformation in the lives of their people.

He observed that Saarc was slow in catching up with other regional organisations, and linked it to disputes and mistrust. He listed poverty alleviation and promotion of health and education as high priority areas and stressed for achievement of these goals through Saarc framework. He suggested setting up of a Saarc 'Food Bank' for achieving food security in the region.

http://www.brecorder.com/index.php?id=546070&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Metro Cash & Carry to invest euro 150 million

LAHORE (April 04 2007): Provincial Minister for Industries, Muhammad Ajmal Cheema has said that German's multi-national company "Metro Cash & Carry" would invest 150 million Euro in Pakistan by setting up 10 wholesale stores in big cities besides Lahore.

He expressed these views while talking to a 5-member delegation of Metro which called on him at his residence, here on Tuesday. Ajmal Cheema said that the ground-breaking ceremony of first wholesale store of German's multi-national company "Metro Cash & Carry" will be held on April 4. The Chief Minister of Punjab Chaudhry Pervaiz Elahi will be the chief guest on the occasion.
http://www.brecorder.com/index.php?id=546144&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

IPIC plans to build refinery with Parco

DUBAI (April 04 2007): IPIC plans to build a new 260,00 bpd refinery with Pakistan's Pan-Arab Refinery (Parco). In November last year, a Pakistani diplomat estimated the refinery would cost $4-$5 billion. The IPIC sources on Tuesday declined to give an updated cost estimate and said it hopes to award a feasibility study for the project soon.

IPIC was also looking at other potential refinery investments globally, they said. "We are downstream investors, and actively looking at more refinery projects world-wide," the source said. Among the projects IPIC was studying is to build a new refinery in Morocco's port of Jorf Lasfar. It was too early to give details on the size or cost of that refinery, he said.

The company aims to complete an oil pipeline that will bypass the shipping checkpoint of the Strait of Hormuz by 2010, one source said. The 1.5 million bpd, 320 km pipeline will allow the United Arab Emirates to pump more than half of its crude exports to the port of Fujairah, outside the Strait, direct from Abu Dhabi National Oil Company's Habshan oilfields. Around 20 percent of the world's daily crude supply passes through the Strait.

Germany's ILF will manage construction of the pipeline. The line will be built by China Petroleum Engineering Construction Corporation. IPIC is reviewing its 70 percent stake in South Korea's Hyundai Oilbank, but is pleased with the way the asset has performed, one source said. "We are committed to our investment in Korea," he said. "It's part of our strategy keep our portfolio under constant review as any investor would."

Last year, an industry source said IPIC was in talks to sell a 20 percent stake in Hyundai to Conoco. Hyundai is South Korea's fourth largest refiner. IPIC has held a stake in Hyundai since 1999. It raised its stake to 70 percent from 50 percent in February 2006.

IPIC invests in oil-related projects for the government of Abu Dhabi, the capital of Opec member the UAE and the emirate which controls more than 90 percent of the state's oil reserves. Abu Dhabi's IPIC will go ahead with plans to build a new oil refinery in the United Arab Emirates despite reservations from partner Conoco Phillips, the sources said. Conoco Chief Executive James Mulva said on Monday that construction would be delayed and that his company might withdraw from the project due to rising costs.

http://www.brecorder.com/index.php?id=546131&currPageNo=1&query=&search=&term=&supDate=