Pakistan Economy - News & Updates - Archive

[Neo]

'Kotler's interaction useful for Pakistan's business community'

LAHORE (April 10 2007): Professor Philip Kotler, world's top most marketing Guru's interaction with Pakistan's business community will prove to be a major breakthrough in the field of modern marketing in the country.

Sultan Tiwana, General Manager, Business & Sector Development Services of the Small and Medium Enterprise Development Authority (Smeda) stated this while addressing a press conference here on Monday.

Dr Fahim Raza Kibria, CEO Centre of Management and Marketing Excellence (Comme) also spoke on the occasion. Sultan Tiwana, while speaking on behalf of Smeda's CEO highlighted the significance of Dr Kotler's marketing concepts for SMEs of Pakistan. He said that the SMEs in Pakistan needed to fill in the knowledge gap with world's business community so as to gain international competitiveness.

He termed Kotler's attention to Pakistan a major breakthrough in this direction and hoped that the first-ever interactive workshop to be conducted by Dr Kotler himself for Pakistan will not only transform value added marketing knowledge to Pakistan but will also help divert world's attention towards Pakistani market. That is why the real marketing experts and business community consider Dr Kotler's interaction with Pakistan a historical event, he added.

Dr Fahim Raza Kibria, while giving a brief profile of Dr Philip Kotler said that Dr Kotler is a distinguished professor of international marketing at the Kellog School of Management at Northwester University, and has hailed by the Management Centre Europe as 'the world's foremost expert on the strategic practice of marketing'. Dr Kotler has provided consultancy services to many major US and foreign companies including IBM, Michelin, Bank of America, Merck, General Electric, Honeywell and Motorola - in the areas of marketing strategy, planning, marketing organisation and international marketing.

"Holistic Marketing Paradigm" is a specially designed content in which Philip Kotler will be holding a live interactive session for the first time, not only on international and multinational brands but also the local brands operating in Pakistan. The seminar will teach you how to apply the dynamics of international marketing practices with relevance to Pakistani market and brands. It will develop a global mindset so that future leaders can address the challenges of global competition, he added.

The event will be conducted via video conferencing from Florida, USA, simultaneously in an interactive session in Karachi, Lahore and Islamabad and a captive audience in Quetta, Multan and Peshawar on April 27, 2007.

http://www.brecorder.com/index.php?id=548945&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Wheat output target set at 23 million tonnes

ISLAMABAD (April 10 2007): The government on Monday set 23 million tonnes estimated wheat production target for 2006-07 against last year's 21.7 million tonnes. The cotton production target has been fixed at 14.14 million bales cotton output target for 2007-08 against 13 million bales for 2006-07.

The Federal Committee on Agriculture (FCA) in its 86th meeting here reviewed the performance of agriculture sector in 2006-07 and set target for Kharif 2007-08. The meeting noted that the sector grew by around 4 percent during the last four years, said the Minister for Food, Agriculture and Livestock, Sikandar Hayat Khan Bosan while addressing a news conference along with the secretary following the meeting.

To a question, the Minister said that the government would export wheat over and above the domestic requirement of 20.5 million tonnes without specifying any country and arrangements in this connection. He, however, underlined the need for paying more attention to the basic issue of seed where the flow of investment is urgently required.

Giving details of the decisions taken in the FCA, the Minister said that the (2006-07) wheat production estimate is 23 million tonnes, which indicates 6 improvement against 21.7 million tonnes for last year. The production level also surpassed the set target of 22.5 million tonnes by 2.

The gram (2006-07) production is 846,500 tonnes with an increase of 76.5percent against 479.5 000 tons for last year as the production is 20percent above the set target of 706.5 000 tons. Lentil (2006-07) production estimate is 24,240 tonnes showing an increase of 35.4 percent against 179,000 tonnes with 9.2 percent increase. The Potato (2006-07) estimated production is 2.43 million tonnes whereas onion at 1.6 million tonnes with a decline against last year's 2.0 million tonnes target.

The Kharif 2007 (April-September) water prospects are quite encouraging with provincial allocation at 76 Million Acre Feet (MAF). The availability of cottonseed is 53 percent of the total seed requirement of 62,000 tonnes and fertiliser availability against the expected consumption of 2.5 million tonnes of urea during Kharif 2007 more than 2.70 million tones will be available leaving a surplus of approximately 200,000 tonnes.

For 2006-07 agricultural credit disbursement target has been set at Rs 160 billion. The credit disbursement for the last 8 months (July-February) is Rs 92 billion. The credit improvement of 14 percent in disbursement compared to the same period of last year disbursement of Rs 81 billion.

Cotton production targets for 2007-08 crop are fixed at 14.14 million bales from an area of 3.26 million hectares whereas the sugarcane (2006-07) production is estimated at 52.9 million tonnes. This indicates improvement of 18 percent over the last year's achievements of 44.7 million tonnes. Targets for 2007-08 crop are fixed at 54 million tonnes from an area of 1.015 million hectares.

Rice production targets from 2007-08 crop are fixed at 5.72 million tonnes from an area of 2.6 million hectares. Maize production targets for 2007-08 crop are fixed at 3.2 million tonnes from an area of 1.0 million hectares. Mung production targets from 2007-08 crop are fixed at 162,000 tonnes from an area of 262,000 hectares. Mash production targets for 2007-08 crop are fixed at 20,000 tonnes from an area of 38,000 hectares. Chillies production targets for 2007-08 crop are fixed at 130,000 tonnes from an area of 66,000 hectares.

http://www.brecorder.com/index.php?id=548839&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

IT sector growing at incredible rate’

KARACHI: The IT sector in Pakistan is growing at an incredible 50 per cent per annum, and the Networked Readiness Index rankings published in the Global Information Technology Report are often misleading, especially when reported in the context of developing countries, said a statement issued by the Pakistan Software Houses Association (PASHA) on Monday.

“The IT sector in Pakistan is growing at a rate far faster than ever before, at a phenomenal 50 per cent year-on-year,” the statement quoted Ashraf Kapadia, the PASHA president, as saying.

“This is supported by the figures published by the State Bank for remittances made by IT firms during the last 3 years. The sector comprises more than 900 IT & ITeS companies operating in Pakistan, of which more than 125 are either ISO-certified or CMMI-appraised.” It said the IT industry in Pakistan was estimated to be $2 billion per year with almost $1 billion of it being export related. The industry employs a workforce of over 90,000 professionals which is also growing exponentially, added the statement.

“Many PASHA member companies have developed and are exporting world-class products which are acknowledged leaders in their domain,” said the PASHA statement. The PASHA chief said the most fundamental measure of IT readiness was the telecom infrastructure and the reach of network services, and the bandwidth consumption in Pakistan had increased from 800MB in 2003 to 2,500 MB.

“This indicates a robust growth and is extremely encouraging for Pakistan’s readiness for the networked world,” he added. “In terms of IT awareness, most private schools are well equipped with IT facilities and the government has also provided computer labs and staff to 1,100 government schools.”

He said large private sector organisations were using state-of-the-art IT solutions as IT usage in the business sector in Pakistan had proliferated and even small establishments were using IT for competitive advantage. “Use of IT in the public sector has also grown significantly and the IT spend by the government has registered a healthy growth,” said Kapadia.

http://www.thenews.com.pk/daily_detail.asp?id=50429

 

[Neo]

April 10, 2007
Pakistan eyeing Indian cement market
By Dilawar Hussain

KARACHI, April 9: Cement manufacturers are paving the road of “confidence building” measures with India through exports. An official statement issued in New Delhi by the Indian Prime Minister’s office on April 4, following a meeting between Prime Minister Shaukat Aziz and his counterpart Manmohan Singh on the sidelines of the 14th summit meeting of Saarc, Mr Shaukat had expressed Pakistan’s readiness to export cement to India.

The country aimed at taking advantage of the Indian Finance Ministry’s decision of only a day earlier, to abolish 16 per cent countervailing duty and 4 per cent special duty on cement, to make import of the construction material duty free.

Under those happy happenings, a report last Friday by a little-known Mumbai-based paper that cement consignments of 125 tons imported in five containers from Pakistan were awaiting at Nhava Sheva port for want of quality clearance certificate from Bureau of Indian Standards (BIS) had raised many eyebrows. But Mr Abur Razzak Thaplawala, executive director at Lucky Cement contradicted the report saying that the consignment was only 50 tons in one container shipped a week ago. He said that the formalities required by the BIS had been completed, which included making an application; appointment of agent, etc.

Mr Thaplawala was confident of release of consignment to the importer in a day or two.

The executive director claimed credit for 85 per cent of cement exported by sea from Pakistan. He said that to facilitate handling of bulk exports, his company had imported 25 ‘bulkers” from Germany, which were employed for loading cement on ships in bulk quantities.

He said that the company’s expansion plant at Karachi was operating at full capacity. Besides the captive markets of Afghanistan and Iraq, Mr Thaplawala counted at least a dozen destinations where Pakistani cement had made their first foray. Those included: Abu Dhabi; Qatar; Yemen; Morocco; Muscat; Iran; Dubai; Turkey; South Africa; Madagascar; India; Sri Lanka; Djibouti and Umul Qasr.

As for India, D.G. Khan Cement had earlier exported a consignment of 1,500 tons through Gujarat’s Mundra port. Where exports were concerned, Askari, Bestway; Pioneer; Maple Leaf and others big fish in the industry shared the pie.

Figures released recently by All Pakistan Cement Manufacturers’ Association (Apcma) showed highest ever local and export sales for any single month in March 2007 at 1.9 million tons and 371,000 tons, respectively.

“Export dispatches have accelerated further on the back of increase in bulk shipments through sea route. Stable prices and commencement of peak construction season (March-Sept) also saw strong local cement demand,” stated a report by AKD Securities.

Another report by Taurus Securities commenting on company-wise performance said: “Lucky remained the market leader and sold around 2.5m tons in the local market while exported nearly a million tons (including clinker) during nine months (July-March) of FY07. This increased its market share in both local and export markets to 16.0pc and 42.8pc during the period under review respectively compared to 11.0pc and 22.2pc in FY06.

D.G. Khan retained its second position in the local market with sales of 1.7m tons and market share of 10.9pc followed by Askari Cement with sales and market share of 1.5m tons and 9.8pc respectively. Furthermore, Bestway Cement captured second position in exports with export sales of 229,000 tons followed by Askari Cement with 140,000 tons of exports”.

On account of its burgeoning demand Pakistani exporters of cement had come to dictate prices and terms. “On average our export prices range between $64-65 per ton,” says Mr Thaplawala.

Industry sources pointed out that only four months ago in Jan, importers were willing to pay no more than $47 — 48 per ton for cement from Pakistan.

http://www.dawn.com/2007/04/10/ebr3.htm

 

[Neo]

Tuesday, April 10, 2007

Cement sales, exports set to rise this fiscal

By Tanveer Ahmed

KARACHI: On the back of upbeat local demand and bright export prospects, the cement sector is expected to have another windfall year in sales as well as in exports.

Analysts and industrialists of the cement sector say the last quarter of fiscal year has always proved a boon for the industry because of an increase in construction and development activities across the country with the onset of the summer season.

Due to strong expectations of high consumption in the days to come, the estimates for the whole-year sales are being revised upwards.

Based on the cement dispatches in the first nine months of the current financial year, the full-year cement sales is being forecast at 24-24.5 millions tons against earlier estimates of 23.5 million tons of sales in the whole year.

The local demand for cement is expected to remain upbeat as usually in the fourth quarter (April-June) of fiscal year demand peaks with the start of summer season, which also brings major infrastructure and construction activities in the country, analyst Atif Malik at Jahangir Siddiqui Capital Markets believes.

The government is likely to try to utilize the maximum of record development budget in the remaining months of the current financial year and would initiate and complete a number of development projects, which would be consuming more cement.

On the export side, the shortage of cement in the region also bodes well for Pakistani cement manufacturers, which would not only result in export of a major quantity, but would also bring in high export price. The country exported 1.305 million tons of cement in the first eight months of the current financial year, showing a 16 percent growth compared with the corresponding period of the previous year.

“Cement export will pick up in next few moths with the high export price, and the consumption of cement in the country is also set to register a rise in the coming days”, Abdul Razzaq Thaplawala said.

He also expressed optimism that Pakistani cement would also find its way into neighbouring India, which has abolished countervailing duty and additional customs duty on cement imports in a bid to curb local cement prices in the country. “This bodes well for Pakistani cement manufacturers as with removal of these duties, the Pakistani cement would become competitive in the huge Indian market,” analysts noted.

They calculate that the landed cost of Pakistani cement in India would come to around $93-107 tons at retail, which would be competitive compared with Indian cement at $109 dollar per ton in the northern parts of India and $95 dollar per ton in southern parts.

Investor confidence in the booming cement sector was also reflected in Monday’s trading at the Karachi Stock Exchange (KSE), where cement scrips dominated trading with huge trading volumes.

The three top volume leaders in the stock trading on Monday were from the cement sector with total four cement sector companies in the top 10 volume leaders in the session.

Analysts also recommend buying shares of major cement companies listed at the stock market because of burgeoning sales and high earnings in coming months, which is likely to attract investors.

http://www.dailytimes.com.pk/default.asp?page=2007\04\10\story_10-4-2007_pg5_1

 

[Neo]

04/10/07

Chinese firm may set up truck manufacturing plant in Pakistan

Islamabad (ANTARA News/Asia Pulse) - A Chinese firm is considering investing US$100 million to set up the first-ever heavy-duty truck, dumper and carrier manufacturing plant in Pakistan, Ma Xiaoyan, representative of China National Heavy-Duty Truck Group Company (CNHDTGC) said at a briefing for reporters Sunday.

Ma said Sino Pak Truck Private Limited had been established in Pakistan to introduce a wide range of heavy-duty vehicles manufactured by CNHDTGC, meeting demand in oil, construction, food (cold storage), logistics, sundries, and military sectors.

The company has been manufacturing heavy-duty transport vehicles for the last five and a half decades.

Source:
Business in Asia Today - April 10, 2007

http://www.antara.co.id/en/arc/2007...set-up-truck-manufacturing-plant-in-pakistan/

 

[Janbaz]

Pakistan and Russia to enhance economic cooperation: foreign office

ISLAMABAD (April 10 2007): Pakistan and Russia are expected to reactivate the inter governmental commission on trade, economic, scientific and technical cooperation during the Russian Prime Minister's visit this week, foreign office spokesperson Tasnim Aslam said here on Monday.

The Russian Prime Minister Mikhail E. Fradkov who will be visiting from 11 to 13 April, is the first Prime Minister of the Russian Federation to visit Pakistan. Earlier Premier Alexey Kosygin visited Pakistan in May 1969 as Prime Minister of the Soviet Union.

President Pervez Musharraf visited the Russian Federation in February 2003. Prime Minister Fradkov and Prime Minister Shaukat Aziz have met on two previous occasions during the Shanghai Cooperation Summits in October 2005 in Moscow and September 2006 in Dushanbe.

The spokesperson said that the Russian Prime Minister would hold in-depth discussions with Prime Minister Shaukat Aziz. He will also call on the President and address a gathering of businessmen. She said that the major focus of the visit would be on bilateral relations with particular emphasis on ways and means to enhance economic cooperation.

She said that the two countries are committed to establish a strong relationship based on solid foundations. There are a number of opportunities for Russian participation in various projects in Pakistan. The emphasis during the visit would be on establishing a substantive economic agenda to mutual benefit of both the countries.

She said that both sides are cognisant of each other's importance. Russia is a major international player. It is a permanent member of the United Nations Security Council and of the G-8. Russia's clout and influence has considerably been enhanced in the last few years. Today Russia is in the midst of remarkable economic recovery. There is a growing convergence of interests between the two countries on issues of regional and international importance.

Bilateral trade presently stands at $520 million, which is heavily in Russian favour. She said that good prospects exist of joint collaboration between Pakistan and Russia in sectors such as oil and gas, railways, construction of coal, thermal and hydel power generation.

A number of agreements are expected to be signed during the visit relating to Railways, Narcotics control and exchanges in cultural, educational, sports and scientific fields.

AFP adds: Foreign ministry on Monday denied reports that a Briton held over a plot to bomb transatlantic jets would be extradited to Britain in exchange for six separatist leaders.

The arrest of British national Rashid Rauf in August by Pakistan sparked a world-wide security alert and arrests in Britain amid fears of a conspiracy to blow up airliners flying from London to the United States. Rauf's family last week filed a legal petition alleging that Islamabad was negotiating with London to extradite him in return for six wanted Baluch nationalists who are based in Britain, and seeking to stop such a move.

"No," foreign ministry spokeswoman Tasnim Aslam replied when asked if Pakistan had any such plan, which was first reported by Britain's Guardian newspaper in March. Aslam said that currently Pakistan and Britain had no extradition treaty but that a draft accord was in its final stages. The 25-year-old Rauf faces charges including impersonation, carrying a fake identity card and fake documents, which he denies. He is still being held by security forces under special anti-terror legislation.

http://www.brecorder.com/index.php?id=548935&currPageNo=1&query=&search=&term=&supDate=

I just love a increase of trade with Russians! They are a very strong economy and Pakistan a benifit a lot form their ties to Eastern European nations. Also if we get closer to them we can acquire military equipment from their firms like MIG, Sukhoi etc besides gaining a lot in the business sector. The Russians can prove to be a very beificial strategic, economic and military ally in the 21st century with China. :flag:

 

[Janbaz]

Pakistan loses ground to India in poultry export

OUR STAFF REPORTER
LAHORE - The poultry industry representatives have expressed their concern over bird flu discovery in Pakistan once again, arguing that the industry already bruised after the February 2006 scare cannot withhold any new crisis.
They feel that; what they called unsubstantiated claims can play havoc with the industry, still recovering from losing ground to India.
Poultry farmers told The Nation said that the industry was still recovering from the last year bird flu crisis and could not withhold another shock. Abdul Basit who deals in the one-day poultry production said that the last scare cost many potential export destinations for poultry products. Elaborating his point Basit said that before the February 2006 crisis, Pakistan was exporting eggs to Afghanistan, Saudi Arabia, Iran, Yemen and UAE with an average price of 22 to 24 cents. After the crisis Basit argued that the ban on Pakistan based products opened opportunities for the Indian poultry industry, selling the same eggs at 36 cents per one egg.Unlike India, Pakistan has no quality certification infrastructure for poultry products in place.
The reason that despite the fact Indian and Pakistani climatic conditions are the same, the Indian poultry exports have been able to get through by the dint of the fact that the Indians have been able to convince the importing countries about the health quality of their poultry products.

The Nation.
http://www.nation.com.pk/daily/apr-2007/11/bnews3.php

 

[Janbaz]

Reserves to touch 14.3 billion dollars by June

SYED JAFAR ASKARI
KARACHI - The country’s foreign exchange reserves are expected to further surge to 14.3 billion dollars by June 2007, The Nation learnt on Tuesday.
The federal government is launching international bonds and GDRs of the United Bank Limited in next few days that would further augment the foreign exchange reserves by June 2007.
From January-March 2007 the foreign exchange reserves of the country had already increased by $ 677 million as reserved mounted to $ 13.624 billion by March 31, 2007, from $12.947 billion in Dec 2006. The statistics showed that out of $13.624 billion total reserves, State Bank of Pakistan (SBP) holds $ 11.329 billion and domestic banks of the country hold the rest of the foreign reserves worth $ 2.295 billion.
While, three months back in Dec 2006 the SBP had $ 10.630 million and the banks had $ 2.316 million out of total liquid reserves of $ 12.947 million. The statistics also revealed that the total foreign liquid reserves in January, the seven month of the current FY-2007, were $13.212 billion, while on Feb 3, 2007 the reserves increased to $13.253 billion. The foreign exchange reserves were also increased on Feb 17 and on Feb 24 as $ 13.280 million and $ 13.342 million respectively in current FY-2007.
The experts are of the view that increase in the outflow of remittances, foreign investment and launching of GDRs of OGDC and MCB Bank are the main factors causing for considerable increase of reserves in the country. In eight months of FY07 the country had received $ 3.414 billion on account of home remittances in the current year, while this figure was $ 2.794 billion in the same period of last fiscal. However, $ 620 million was augmented in the country on account of home remittances during last three months. It is expected that the home remittances will reach $ 5 billion dollar by June 2007.
The foreign investment, including portfolio and foreign direct investment is the important factor causing for notable increase in foreign exchange reserves of the country. While, the foreign investment is expected to touch $ 6 billion by June of this year. In eight months of FY07 the country had already received $ 3.952b, showing about one hundred per cent increase when matched with $1.96b foreign investment received during the corresponding period of FY06.
The country had received more than $ 900 million form the sale of GDRs of the OGDCL and MCB Bank, which stabilised investment and augmented the foreign exchange reserves.
The government is floating international bonds that would also help in raising foreign exchange and stabilising the reserves at the end of current FY-2007.

The Nation.
http://www.nation.com.pk/daily/apr-2007/11/bnews5.php

 

[Janbaz]

Pak, Iran to hold talks on mega projects

JAVAID-UR-RAHMAN
ISLAMABAD - Pakistan will enter into dialogue with Iran to develop the coordination and research work on different mega projects.
In this regard Federal Communication Minister Shamim Siddiqi is leaving for Tehran on a three-day official visit to attend Joint Ministerial Meeting at Tehran to be held from April 13-16. The Minister is leading a 10-member delegation.
“Both government will discuss the maritime issues, Pak-Iran bus service and other related projects”, said Federal Minister Shamim Siddiqui while addressing a high-level meeting comprised representatives of different Ministries.
The Minister said that imparting Railway training by Pakistan would also be discussed in the Joint Ministerial Meeting. “Both the governments intend to develop coordination and research work on maritime issue”, he added.
It also came under discussion in the meeting that the issue of 65 kilometers missing railway link (which Iran has already offered) would be raised in the meeting.
“If this railway gap is filled then the trade between the two countries would be more comfortable”, he said, adding that the Iran and Pakistan are brotherly countries and would become stronger with the passage of time.
Pakistan and Iran agreed to run the bus service for which the initial modalities have already been settled and the final date to start the bus service will be announced in the Joint Ministerial Meeting.
The NHA representative informed the meeting that the work on Quetta-Noshki road is under way with full pace and will be completed as early as possible.
Discussing the trade issues, the Minister said, “To meet the future trade challenge, our trucking industry should also be equipped with modern fleet.”

The Nation.
http://www.nation.com.pk/daily/apr-2007/11/bnews9.php

 

[Janbaz]

Govt in the dark about poor growth in exports

JAVED MAHMOOD
KARACHI - The Commerce Ministry has kept the Federal government in the dark about poor growth in exports in the current financial year, The Nation learnt on Monday.
The exports of the country have shown only 3.86 per cent growth in first eight months of the current financial year as against the 14 to 15 per cent average per annum growth during the previous three financial years. In foreign exchange the exports stood at 10.906 billion dollars from July-February 2006-07 as against 10.50 billion dollars in the corresponding period of previous financial year, depicting a paltry increase.
Official sources disclosed that growth in the exports of Pakistan started showing deterioration from September 2006.
During a high-level meeting in Islamabad that was chaired by Prime Minister Shaukat Aziz, the Commerce Ministry promised to update the high ups of the federal government in October or November last year about the factors that have dampened growth in the exports of the country. However, despite the lapse of five months, the ministry had neither informed President Pervez Musharraf nor Prime Minister Shaukat Aziz nor the economic team of the government about the causes of slowdown in exports in the current financial year.
Sources said that the country would lose around one billion dollars worth foreign exchange in FY-07 as the exports had been showing much below the projected growth.
In the current budget, the government had estimated 12-14 per cent growth in exports, but during first eight months of FY07 (July-Feb period) the exports have shown only 3.86 per cent growth. The exports were projected at $ 18.60 billion in FY07 as against $ 16.40 billion in FY06. But, the current trend of less than four per cent growth in exports indicates that the overall exports would remain much below the desired target in this financial year.
Believe it that in its recent quarterly report the State Bank of Pakistan had used the word of ‘puzzle’ about the poor growth in exports, said sources, adding that the Ministry of Commerce must have apprised the key officials of the government about the factors that have pre-empted expected growth in exports.
The poor growth in exports would give boost to the trade deficit in this fiscal that had already expanded to 8.8 billion dollars in eight months and further expected to surge to 12-13 billion dollars by June 2007, said the officials. The foreign exchange reserves would also remain under pressure because of the widening trade imbalance and current account deficit.
“Our trade deficit and current account deficit could have shown a minimum decline of one billion dollars in FY07 had the exports shown projected 12-14 per cent growth,” said the official. Had the Commerce Ministry intimated the government well in time (at the start of this financial year) about the key factors that have decelerated growth in exports, the government could have taken remedial measures to achieve the target, official further said.

The Nation.
http://www.nation.com.pk/daily/apr-2007/11/bnews1.php

 

[Neo]

Trade deficit swells to $9.985 billion

KARACHI (April 11 2007): The country's trade deficit further widened by 15.1 percent to $9.985 billion during the first nine months (July-March) of the current fiscal year as compared to $8.674 billion during the same period of the last financial year.

According to the official statistics made available to Business Recorder, total exports of the country amounted to $12.435 billion during July-March period of current fiscal year as compared to the exports of $12.014 billion in the same period last fiscal year 2005-06, projecting a nominal increase of 3.5 percent.

While the imports of the country for the period jumped by 8.9 percent to $22.420 billion as against the imports of $20.688 billion in the same period of last fiscal year.

However, the deficit declined by 6.8 percent during March 2007 with a deficit of $1.090 billion as compared to the trade deficit of $1.169 billion in March 2006. The exports of the country during the month of March 2007 were 1.533 billion as compared to the exports of $1.513 billion in March 2006 indicating an increase of just 1.3 percent.

Imports of the country during March 2007 were $2.623 billion as compared to the imports of $2.682 billion in March 2006, showing a decrease of 2.2 percent. Exports of the country have increased by 18.3 percent in March 2007 with total exports of $1.533 billion as compared to the exports of $1.296 billion in the month of February 2007.

Imports growth have shown declining trend in March 2007 with total imports of $2.623 billion as compared to imports made during February of $2.572 billion projecting a marginal increase of 2 percent. Trade deficit of the country declined by 14.6 percent during March 2007 with a total deficit of $1.090 billion as compared to a deficit of $1.276 billion in the month of February 2007.

The exports of the country remained at 66.6 percent during July-March period of the export target of $18.6 billion fixed for the current fiscal year 2006-07. However, the imports have surged to 80.1percent of the target of $28 billion fixed for the current fiscal year.

An analyst of the foreign trade said that although the imports showed declining growth trend with a nominal increase of 2 percent, but if imports continue to grow the whole year trade deficit would not only be higher compared to last year, but would also exceed the projected trade deficit for the current financial year.

He said that if this trend continues in the coming months, it would have a serious impact on the country's balance of payment, as well as having a negative impact on the health of the rupee. However, he said that increase in foreign direct investment and growth in remittances would help in making up the losses caused by this burgeoning trade deficit.

Although the category-wise data of the export would be released later in the month, the analyst said that figures indicated that there was some improvement in the export as it grew by 18.3 percent compared to the preceding month. The accomplishment of the whole year export target would depend on how the export grow in the coming months.

Soaring trade deficit has further aggravated the situation of country's negative current account balance threatening to even offset the positive impact of foreign direct investment and inflows by the overseas Pakistanis. The experts have expressed concerns that in the wake of rising foreign debt and slow export growth, the widening of current account deficit could create unbearable burden on the economy.

http://www.brecorder.com/index.php?id=549179&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

I just love a increase of trade with Russians! They are a very strong economy and Pakistan a benifit a lot form their ties to Eastern European nations. Also if we get closer to them we can acquire military equipment from their firms like MIG, Sukhoi etc besides gaining a lot in the business sector. The Russians can prove to be a very beificial strategic, economic and military ally in the 21st century with China. :flag:

I know what you mean, I too am optimistic about this visit and new opportunities that it will bring.
Lets peneterate Russia and get closer.

Russian Prime Minister's visit to open huge business avenues

ISLAMABAD (April 11 2007): Russian Prime Minister Mikhail Fradkov's two-day visit beginning today (Wednesday) will open many business avenues for companies of the two countries besides making significant progress in bilateral relations.

Official sources told Business Recorder that this is for the first time after 39 years that a high level official Russian delegation is visiting Pakistan which also includes a large number of Russian businessmen.

They said Evgeny V. Dod, Director General of Inter Rao UES, Russian energy giant, along with the top managers of his company are also part of the Premier Fradkov's delegation.

Inter Rao UES is one of the leading companies of the world with a turnover of $30billion in its business of export and import of energy. Russian energy firms including Inter Rao UES have expressed deep interest in investment opportunities in Pakistan particularly in Hydel power sector.

Sources said that in continuation of sound relation building process with Pakistan's power sector through earlier visits starting two years back, Evgeny V. Dod will be meeting Federal Minister for Water and Power, Liaqat Jatoi. He will also meet federal Minister for Privatisation and Investment Zahid Hamid, Chairman WAPDA and Chairman Private power Infrastructure Board to discuss prospects of co-operation between Pakistan and Russia in energy sector.

The Russian Prime Minister will hold in-depth discussions with Prime Minister Shaukat Aziz to set a substantive economic agenda for mutual benefit of both the countries. He will also call on the President and address a gathering of businessmen.

A number of agreements are expected to be signed during the visit relating to Railways, Narcotics control and exchanges in cultural, educational, sports and scientific fields.

Sources said that good prospects exist of joint collaboration between Pakistan and Russia in sectors such as oil and gas, railways, construction of coal, thermal and hydel power generation. Pakistan and Russia are also expected to reactivate the inter-governmental commission on trade, economic, scientific and technical co-operation during the Russian Prime Minister's visit.

http://www.brecorder.com/index.php?id=549159&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

IT industry worth $2 billion now, says Shaukat

ISLAMABAD (April 11 2007): Prime Minister Shaukat Aziz on Tuesday said that Information Technology (IT) industry, which was virtually non-existent seven years ago, has grown to be worth US $2 billion of which US $1 billion is export related.

The Prime Minister made these remarks while presiding over a meeting held here to review the profile and performance of the country's IT industry.

Shaukat Aziz said that information and communication technology is the wave of the future and Pakistan is well positioned to become a major global player.

He said that US $10 billion is our export target for IT and telecom services which will be achieved by developing adequate human capital, improved fiscal regime, necessary infrastructure and an enabling environment for ICT companies. The Prime Minister said that the sector is open to local and foreign companies.

He approved in principle the setting up of a Venture Capital Fund in the private sector.

The Prime Minister said IT Ministry should make efforts to attract venture capital in the IT sector and reputed international companies should be approached for this purpose.

Shaukat Aziz said that all-out efforts are needed to provide IT skills to the youth as Pakistan will need 2,30,000 trained IT personnel by 2010. Presently, the sector employs 90,000 professionals, he said. Shaukat said that the IT industry is growing at 50 percent per year, which is truly phenomenal and one of the fastest in the world.

He said there is a need to promote the vast potential of software export and also to promote domestic software houses, which is a huge source of job creation. The Prime Minister said that the services and expertise of the Pakistani community living abroad should be leveraged to further expedite the growth of IT in the country.

Shaukat Aziz appreciated the excellent work done by the ministry to promote IT industry in the country. Minister for Information Technology Awais Ahmed Leghari informed the meeting that the IT Ministry has set up a special fund to provide and enhance IT skills to the youth.

He said that the Ministry has an excellent internship programme under which IT companies are imparting training to the youth, expenditure for which is being borne by the Ministry. All IT related services have also been outsourced, he said.

Managing Director of Pakistan Software Export Board Yousaf Hussain in his presentation informed the meeting that the IT sector comprises over 950 companies of which 125 are either ISO certified or CMMI appraised. He said that bandwidth consumption in Pakistan has increased from 800MB in 2003 to 2.5GB at present.

The meeting was attended among others by Minister of State for Information Technology Ishaq Khan Khakwani, Secretary IT and Telecommunications Farrakh Qayyum and senior officials.

http://www.brecorder.com/index.php?id=549164&currPageNo=1&query=&search=&term=&supDate=

 

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Decrease in tax-to-GDP ratio: World Bank advisors helping CBR to identify factors responsible

ISLAMABAD (April 11 2007): World Bank (WB) advisors on tax policy are assisting Central Board of Revenue (CBR) to identify key factors responsible for decrease in tax-to-GDP ratio in Pakistan. Sources told Business Recorder on Tuesday that World Bank experts have convened meetings with CBR Members to collect data on various taxes and trends in different sectors.

It is a tax policy mission to give advice on measures to raise tax-to-GDP ratio. Primarily, the mission would identify reasons responsible for low tax-GDP ratio. However, this mission has nothing to do with Tax Administration Reform Project (TARP), as it is exclusively helping the tax authorities in policy matters.

In the first phase of technical assistance program, Professor Jorge Martinez Vazquez, Georgia State University had visited Pakistan and submitted the preliminary report, "preliminary assessment of tax system in Pakistan". The report concluded that there was a need for medium and long-term tax policy reforms in Pakistan.

In the second round of technical assistance program, Kaspar Richter, Senior Economist World Bank is working on modern long-term tax policy reforms in Pakistan.

Sources said that the WB has given a detailed preliminary assessment of tax system and also compared it with the taxation models of countries having similar economic situation. The assessment focused on analysis of the tax-GDP ratio and documentation of Pakistan's economy.

Meanwhile, official spokesman of CBR, Habib Fakhruddin, said that Tax Administration Reform Program was going on in full swing and a number of reforms units have already been put in place and started functioning which include establishment of Large Taxpayers Units (LTUs) at Karachi and Lahore, Regional Tax Offices (RTOs) at Rawalpindi, Abbotabad and Peshawar, Medium Taxpayers Units at Lahore, Faisalabad, Quetta and Karachi, a fully automated Pakistan Customs Computerised System (PACCS) at KICT, PICT and QICT, Karachi.

Besides, a number of initiatives have been taken under reforms programme which included Self-Assessment Scheme, automation of reform units, e-filing of returns, introduction of One-Customs, simplification of rules and procedures, facilitation and taxpayers' education, introduction of Alternate Dispute Resolution System etc. These measures have already produced very encouraging results in promotion of tax culture in the country, elimination of corruption, reduction in human intervention and resultantly enhancement in revenue collection.

Moreover, many initiatives are in progress like refurbishment of remaining RTOs which are at different stages of completion, nation-wide roll out of PACCS, acquisition of integrated Tax Management System for domestic taxes (Income Tax, Sales Tax & Federal Excise), etc.

The spokesman said that TARP, funded by the World Bank, DIFD and Government of Pakistan, was being implemented with the required pace and would be completed by December 2009.

He said that the WB has not expressed dissatisfaction over the programme, or stopped its funding. Rather, in its recent meeting with CBR authorities, it expressed complete satisfaction over the pace of its implementation, he added.

http://www.brecorder.com/index.php?id=549215&currPageNo=2&query=&search=&term=&supDate=