Pakistan Economy - News & Updates - Archive

[Neo]

First time after 1950s: wheat export to India to restart this week

KARACHI (April 11 2007): After a long gap of almost half a century, Pakistan will be exporting wheat to India from this week. The Indian traders have approached Pakistan's wheat exporters, as India is reportedly facing acute shortage of wheat, of nearly 5 million tons, traders here told Business Recorder on Tuesday.

"We were approached by some Indian traders in March. They said they wanted to purchase Pakistani wheat, which is being offered at an attractive price, as far as quality is concerned," said a trader.

He said that India is currently facing at least 5 million tons wheat shortage and this wide gap has to be filled through imports. He said that after discussion with Indian importers, a deal of 3,000 tons wheat export to India was finalised, after almost 50 years' gap, as last time when Pakistan had exported wheat to India was in mid-1950s.

Later, a virus, namely 'Karnal Bhand' became a major hurdle in wheat import or exports between the two neighbouring countries. However, now, after 1950s, wheat export to India will be resumed as the first shipment of the commodity would sail to India in the second week of April, he said.

Wheat export deal with Indian importer has been finalised by a Karachi based exporter at the average rate of $218 fob per ton. The wheat would be exported via sea, in containers, which would be loaded from Karachi port and Bin Qasim port and would reach two different ports of India Kandla, he added.

Around 125 containers of wheat would be shipped to India during next one week and first shipment of 45 containers would sail in next two or three days, which would reached India within 24 hours.

India imported around 6 million tons wheat last year, and in the current year it is expected to import more than 5 million tons wheat, as shortfall in wheat production has been forecast there. "This would not be first and the last deal with India, and we are expecting more export orders from there," he said.

He said that indentors have received dozens of wheat import inquiries from Indian buyers and are trying to finalise deals with Pakistani traders. Before Indian wheat export order, Pakistan's exporters had finalised wheat export deals at the price of $215-220 per ton, mainly from Indonesia, Malaysia and Vietnam, in addition to a huge consignment of 0.125 million tons from Dubai, he said.

http://www.brecorder.com/index.php?id=549201&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Cement sector achieves 35 million tons production capacity

ISLAMABAD (April 11 2007): The cement sector has acquired annual production capacity of 35 million tons, with the addition of 2 million tons to be produced by the newly established DG Khan Cement plant at Chakwal, Business Recorder learnt on Tuesday.

Now, total 29 cement plants are in operation, with the addition of DG Khan Cement at Chakwal, and the plant, currently being pre-tested for a month, would contribute to the existing production of 2.2 million tons monthly by 28 units.

The government hopes to achieve over 45 million tons annual production from these units in the next couple of years, as the investors are exploring opportunities for setting up new plants in the sector.

The demand for sulphur-resistant (SR) cement, white cement and blast furnace slag cement from Middle East is on the rise, whereas demand for ordinary Portland cement from Afghanistan is also increasing. Efforts are underway to meet the demand of both sides, sources said.

However, the biggest cement market, Afghanistan, is hard to capture because of the growing competition among Central Asian States, Iran and Pakistan. Pakistan is still in a better position due to low transportation charges. The cement sector has seen splendid growth, bringing the total production to 33 million tons, from 21 million tons in January, 2006.

Attock Cement has completed its expansion program, and the expansion of Bestway Cement would be completed soon. D G Khan Cement's new unit in Chakwal is likely to contribute from next month, whereas other units have either started their capacity enhancement program or are planning to do so.

Cement manufacturers see the demand of the commodity growing at home, days ahead with the materialisation of envisaged construction projects and reconstruction activities in Afghanistan. The prices of cement, as a result of government intervention, have also been brought down. The government hopes that cement prices will remain under control because of capacity enhancement by the manufacturers to increase production.

http://www.brecorder.com/index.php?id=549208&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Coal power, gasification: Jadoon seeks Japanese firm's cooperation in projects

ISLAMABAD (April 11 2007): A three-member delegation from Japanese Itochu Corporation, headed by Chief Executive Hideaki Hirako, called on Minister for Petroleum and Natural Resources Amanullah Khan Jadoon here on Monday and discussed with him investment potential in hydrocarbon and coal projects.

Welcoming the Japanese delegation, the minister said that Pakistan had 175 billion tonnes of coal deposit in Thar area of Sindh and sought Itochu cooperation in coal-based power generation and gasification projects as they possessed hi-tech and expertise in that fields.

He said the government was taking concrete steps for exploiting the untapped oil and gas deposits in 6,27,000 square kilometres sedimentary areas in order to meet the growing energy need of the country.

He informed that the government was also working on the gas and LNG imports from the neighbouring countries to sustain the seven percent per annum gross domestic product growth rate of the country. The Chief Executive of Itochu Corporation appreciated the investor-friendly policies being pursued by the government of Pakistan in the oil and gas sector.

The delegation evinced keen interest in coal power generation refineries and trans-national gas projects. Petroleum Secretary Ahmad Waqar, Senior Joint Secretary (Development), Director General (Minerals) and members of the Itochu delegation were also present during the meeting.

http://www.brecorder.com/index.php?id=549282&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Mobile phone import up six times in 3 years

By Shahid Hussain

LAHORE: Due to increase in cellular subscribers, the import of mobile phones has increased almost six times over the last three years.

During July-November 2006 of last year, mobile phones worth $294.7 million were imported in the country as compared to $51.3 million during the same period in 2003.

The import of advanced technology and sophisticated sets with camera and music facility are on top while Pakistan Telecommunication Authority (PTA) says that this trend looks to grow in the next one year as these features have become standard.

Mobile phone companies have reduced the rates of sets boosting the trend of replacing old mobiles with new ones. Retailers believe that the number of handsets imported currently in the country has crossed the figure of one million per month.

According to an estimate, there are more than 1,50,000 mobile phone shops across Pakistan generating employment for over 6,00,000 people. Mobile phone shops include high end franchise show rooms to small kiosks in markets and shopping malls.

The total value of handsets imported in Pakistan during the last fiscal year crossed $1 billion and expected growth in imports is 25 per cent. The import of other telecom equipment has also increased due to the expansion of telecom network and services.

Nokia is leading in the market as it has holding more than 50 per cent share in the market while Sony has more than 20 per cent users.

According to the figures issued by the State Bank of Pakistan, $268 million was spent on the import of mobile phone and other apparatus during July-November 2004. Mobile phone and other apparatus worth $451 million were imported between July-November 2005.

A cell phone retailer at Hall Road said that the sale of used mobile has dropped after the launch of IMEI system which blocks the snatched mobiles. He said that the people were reluctant to use the old mobile phone as it could create a problem for them. He said that many shopkeepers selling used mobiles, also gave guarantee to remove apprehensions from the minds of customers.

A senior PTA official said that the manufacturing facility of mobile handsets and other telecom equipments was lacking in the country so the entire burden was on the foreign exchange reserves of the country. In view of huge trade deficit of Pakistan, it was need of time to promote and facilitate local manufacturing of telecom equipment, he said and added that the government should attract foreign companies to invest in this area as there was continuous demand for telecom equipments in the country which would decrease the burden on foreign exchange and create further employment.

http://www.thenews.com.pk/daily_detail.asp?id=50477

 

[Neo]

14.14m cotton bales expected next year

KARACHI: Pakistan expects a cotton crop of 14.14 million bales during the 2007-08 fiscal year (July/June), an increase of over 1 million bales from this year’s output, an agriculture official said on Tuesday.

Better water supplies during the sowing period was the main reason for the expected bumper cotton harvest next season, said Food and Agriculture Ministry Commissioner Qadir Bux Baloch.

“The sowing area will remain the same as last year, at 3.26 million hectares, but we expect better yield next season because of sufficient water during the crop season,” Baloch told Reuters.

Cotton output in Pakistan, the world’s fourth-largest producer, reached 12.8 million bales in the current year against a target of 12.1 million bales on improved yield. Cotton and textiles account for about 60 per cent of Pakistan’s exports. Domestic consumption is expected to be 15 million bales in the season that started in July, in line with recent years.

Baloch said water authorities indicated that at least 76 million acre feet of water would be available at the beginning of the summer crop season an increase of at least 25 to 30 per cent from the previous year.

The agriculture sector, the largest contributor to Pakistan’s gross domestic product (GDP), would also get a boost from higher sugar and rice crops, Baloch said.

“Agriculture growth this year is likely to be in the range of 4 to 4.2 per cent and we hope to repeat this performance next year,” he said. Agriculture accounted for 21.6 per cent of GDP during the2005/06 fiscal year.

Pakistan’s farm area is about 113.7 million acres (46million hectares) and 60 per cent of its 160 million people are linked to agriculture.

The economy grew by 6.6 per cent in 2005-06 and the government is aiming for growth of about 7 per cent this year.

The government has set a target for sugar cane output of 54 million tonnes, up from 52.9 million tonnes last season. The rice crop is expected to come in at 5.7 million tonnes, up from 5.4 million tonnes. Baloch said this year’s wheat crop had reached 23 million tonnes, compared with a target of 21.5 million tonnes.

Wheat is Pakistan’s main staple, with domestic demand of 22.5 million tonnes a year.

“A final crop estimate will be available in June and we hope the crop size will further increase by 3 to 4 per cent,” he said.

Pakistan now has a surplus of more than 2 million tonnes of wheat and agriculture officials said the government would export supplies over and above the domestic requirement of 20.5 million tonnes. The government lifted a two-and-a-half year ban on exportsin January when it allowed private traders to sell 800,000 tonnes overseas.

The government set a deadline of June to ship the 800,000 tonnes. So far, deals for up to 200,000 tonnes have been finalised.

http://www.thenews.com.pk/daily_detail.asp?id=50484

 

[Neo]

Pak privatisation plan highlighted

By our correspondent

ISLAMABAD: Pakistan has carried out 61 privatisation transactions amounting to $6 billion (Rs363 billion) during the last seven years (1999-2006) and these proceeds are 86 per cent of the total amount of $7 billion realised since the Privatisation Commission was established 15 years ago.

Federal Minister for Privatisation and Investment, Zahid Hamid stated this while inaugurating the first meeting of the High Level Experts Group of Economic Cooperation Organisation (ECO) on the subject of privatisation and private sector development here on Tuesday.

The meeting was being attended by delegations from the member countries ie Afghanistan, Azerbaijan, Iran, Kazakhstan, Tajikistan, Turkey, Turkmenistan and Uzbekistan. They decided to hold next ECO moot at Baku, Azerbaijan in June this year.

Pakistan’s privatisation policy and programme had made a significant contribution to building foreign investor confidence in the reform process and in investment opportunities in the country, Zahid Hamid said.

He said Pakistan had a very liberal and attractive investment policy, which provided a level-playing field for domestic and foreign investors ie equal investment opportunities for both in all the economic sectors with foreign equity up to 100 per cent without the government’s permission or sanction.

Besides, he added, remittances of capital, profits, dividends and royalties, technical and franchise fees were freely allowed with attractive tax and tariff incentives.

Pakistan was implementing a very comprehensive and broad-based privatisation programme which included different types of transactions for a wide range of public entities. These included strategic sale of oil and gas exploration, production and distribution companies, initial and secondary public offerings of shares of banks and an oil refinery, Global Depository Receipts (GDR) listing in London of three banks and a power generation company, and sale of coal and salt mines and small tourist motels and restaurants, he informed.

He said Pakistan was proud of its successful privatisation record and would be willing to share its experience and expertise with member states in line with the principal objectives of ECO, which included fostering economic development of member states, removing trade barriers, promoting intra-regional trade and stimulating economic liberalisation, privatisation and gradual integration of the region into the global economy.

The minister said under the procedure laid down in the governing law, the Privatisation Commission Ordinance 2000 and rules and regulations prescribed thereunder, 90 per cent of total privatisation proceeds were required to be utilised for retirement of government debt and 10 per cent for poverty alleviation programme.

Mustafa Demirezen, Deputy Secretary General ECO Secretariat, in his opening remarks said the ECO was focused on cooperation among member states in the field of privatisation and private sector development as one of the priority sub-sectors in industrial activities.

http://www.thenews.com.pk/daily_detail.asp?id=50488

 

[Neo]

‘Govt wants industrial revolution’

LAHORE: Punjab Minister for Information Technology Abdul Aleem Khan has said that the government wants industrial revolution in the country and it is making sincere and serious efforts to make that happen.

The provincial minister was speaking at the Annual General Meeting of Lahore Township Industries Association (LTIA) on Tuesday.

He said maximum funds are being provided to the industrial estates to equip them with all necessary facilities. Special attention is also being given to the development of infrastructure to make it of international standards so that foreign investors could get benefit of available business opportunities, he added.

Speaking on the occasion, LCCI President Shahid Hassan Sheikh paid rich tributes to Chief Minister Punjab Ch Pervaiz Ellahi for expediting public-private partnership in the province.

He said that the Quaid-i-Azam Industrial Board has done a marvelous job by spreading a network of roads. He said that the industrial community should work in unison in the larger interest of the country.

The newly-elected President of Lahore Township Industries Association, Fida Hussain, promised to continue work for the betterment of industrialists of the area. He said the LTIA is thankful to the Quaid-i-Azam Industrial Board for improving the law and order in the area.

http://www.thenews.com.pk/daily_detail.asp?id=50491

 

[Neo]

11/04/2007

Agriculture is no exception to overall economy
By Farhan Bokhari, Special to Gulf News

The Pakistani government announced this week its forecast of a recovery in the agricultural sector, which is expected to grow by four per cent up from 2.5 per cent last year.

But by no means is it certain that this recovery will be sustained in the coming years, as the south Asian country lags behind on a number of vital reforms, which afflict the long-term growth of this sector.

Agriculture remains central to the prospects surrounding the Pakistani economy. Almost a quarter of Pakistan's annual gross domestic product is driven by agricultural incomes, while almost half the country's workforce directly or indirectly benefits from farm incomes.

The agricultural sector remains central to industry as well, since the country's largest industry is textiles based on domestically-produced cotton.

The fortunes now expected to surround this year's lift in farm incomes, come mainly from higher than expected rainfall in the past six months which has improved overall prospects for growth.

This week, the Pakistani minister for agriculture and livestock, Sikandar Hayat Khan Bosan, claimed the government was stepping up investments in areas such as increased capacity for grain storage and production of certified seeds as well as fodder, in order to give further impetus to agriculture. But long-term followers of Pakistani agriculture remember other policymakers in the past having made similar claims though without success in future.

The challenge for Pakistan's agricultural sector hinges upon three main factors.

First, the country's long-term failure in reforming its energy supply sector, most notably the electricity transmission network, has come to haunt the agricultural sector in a significant way. Farmers need electricity in order to lift subsoil water. But the spiralling costs of electricity have often made it virtually impossible for farmers to afford escalating bills.

Pakistan's largest power transmission company which provides electricity to almost 90 per cent of the population remains surrounded by continuing issues.

The state-owned Water And Power Development Authority (Wapda) continues to be run with the reputation of being saddled with widespread corruption especially through its lower echelons, and considerable inefficiency. Consequently, consumers including farmers have to bear the financial cost of ever rising expenditure on running of this company, though Wapda remains to be reformed. An estimated loss of more than 25 per cent of Wapda's electricity put through its transmission systems is something that consumers including farmers have to live with and pay for.

Second, Pakistani farmers face a major challenge when it comes to dealing with the poorly-run irrigation system.

It was the recent rainfall which helped to lift farm incomes. On the contrary, if Pakistan would have been in the midst of an unusually dry season, its farm incomes would just not have been similarly robust.

Finally, Pakistan's farmers face the difficult matter of dealing with input costs that have risen considerably over time. The failure of successive governments in allowing some affordability when it comes to prices of inputs like fertilisers, pesticides and seeds, only complicates the debate surrounding Pakistan's farm sector.

The latest turnaround in Pakistan's agriculture this year is more the consequence of luck and fortune coming to aid the country's farmers than any set of reforms unleashed by any government including the present day one.

http://www.gulfnews.com/business/Comment_and_Analysis/10117357.html

 

[Neo]

Indo-Pak trade on a high
10 Apr, 2007

ISLAMABAD: Trade between India and Pakistan is surging despite problems in movement of goods and people.

Pakistan registered a six-fold hike in its exports to India in the last five years. It is expected to go up further with new trade concessions announced by India last week.

Bilateral trade swelled from $235.74 million in 2001-02 to more than $1 billion last fiscal year. The balance of trade remains in India's favour.

Trade analysts see further growth as Pakistan has expanded its positive list of import trade with India to include machinery/equipment, raw materials, chemicals and accessories of a number of manufactured items in great local demand.

Both countries have indulged in protectionism. Their governments are trying to remove the various barriers to better trade.

In recent times, India and Pakistan have opened banks in each other's territory, resumed shipping services and improved cross-border road and rail transport.

"Businessmen of India and Pakistan now trade almost 2,000 items in more than 25 categories," said Raees Ashraf Tar Mohammad, a member of the Pakistan Grocers Association.

"This has built mutual confidence and communication between businessmen. We book orders on telephone or fax and the rest of the formalities follow. In the last 10 years or so not a single dispute was reported," the Daily Times quoted him as saying on Tuesday.

According to a trade analyst, the share of Pakistan's exports to India in overall exports increased from a mere 0.5 percent in 2001-02 to 1.8 percent in 2005-06.

"This is a six-time increase in Pakistan's exports to India in the last five years," an official of the Karachi Chamber of Commerce and Industry said.

Pakistan's exports to India have increased from less than $50 million in 2001-02 to about $300 million in 2005-06.

Simultaneously, Indian exports to Pakistan too surged from $186.52 million to $802 million, up from 1.8 percent to 2.8 percent Pakistan's global imports. In these five years the balance of bilateral trade remained in favour of India. In 2005-06, it rose up to more than $500 million.

"(The deficit) came as a rude shock to the commerce ministry in Islamabad," the newspaper noted.

In July 2006, when the commerce ministry notified to implement concessional tariffs under the South Asia Free Trade Agreement (SAFTA), India was omitted from the list of South Asian countries. Indian Commerce Minister Kamal Nath then issued a veiled threat at a conference at Kathmandu that India might review the tariff concessions offered to Pakistan under SAFTA.

"We are not withdrawing these tariff concessions," said the Indian high commissioner in Pakistan in the Karachi Chamber of Commerce and Industry in March. At the same time, he said, "India does have the option to take back all these tariff concessions if SAFTA was not implemented in letter and spirit. (That) we are not applying this option on Pakistan is another matter."

"Our trade relations with India are based on a positive list of 1,078 items," said Pakistan Commerce Minister Humayun Akhtar Khan.

India wants the most favoured nation (MFN) status that Pakistan has consistently refused, contending that it is a WTO (World Trade Organisation) issue where New Delhi can fight it out.

So far as implementation of SAFTA is concerned, the minister said that India could raise this issue bilaterally at the committee of experts or at the inter-ministerial committee level.

Pakistan is not happy with non-tariff barriers (NTBs) and the overall Indian trade policy. India's stand is that whatever the NTBs or other policy issues of trade, "these are not Pakistan-specific and are meant for global imports".

Despite these differences, the two countries have been helping each other over the last few years to overcome agricultural shortages.

Pakistan supplied chickpeas, pulses, grains and sugar when these were in short supply in India. India supplied onions, potatoes, pulses and other food items to Pakistan.

Market reports suggest that Indian experts are ready to work out a joint plan to exploit fisheries and export value-added fish products.

India's exports of engineering goods now exceed $10 billion. Pakistan meets its 25-30 percent requirements of engineering products from imports. India can be a good source of engineering products with freight advantage and relatively quick delivery and after-sales service.

http://timesofindia.indiatimes.com/...ak_trade_on_a_high/rssarticleshow/1884286.cms

 

[Neo]

April 11, 2007
China, Pakistan to facilitate trade cooperation

China and Pakistan have wrapped up a meeting in Beijing on boosting economic,trade, scientific and technological cooperation, the Ministry of Commerce said Tuesday.

Chinese Commerce Minister Bo Xilai and Dr. Salman Shah, advisor to the Prime Minister of Pakistan on Finance, exchanged views during the meeting on expanding trade, facilitating investment and implementing a development plan on Sino-Pakistan trade which was put to effect last year.

Bo said China hopes to increase imports from Pakistan to promote trade balance and encourages Chinese companies to invest in this South Asian country.

China will also continue to encourage the two countries' small-medium sized companies to strengthen cooperation on agriculture, manufacturing and the service industry, he said.

Dr. Shah said that Pakistan welcomes investment from China, especially in infrastructure facility, water resources, mineral, farming and services industries.

The two countries reached a free trade agreement last year and China established its first overseas trade and economic cooperation zone, Haier-Ruba Economic Zone, in Pakistan.

Dr. Shah said he believes the economic zone, which mainly produces household appliance, would help promote the economic and technological cooperation between the two countries.

The trade volume between the two countries hit 5.25 billion U.S. dollars last year, up 23.1 percent year on year. It is estimated that the volume will increase to eight billion by the end of 2008.

Source: Xinhua

http://english.people.com.cn/200704/11/eng20070411_365325.html

 

[Introvert]

Sri Lanka to import Basmati rice from Pakistan​

Wednesday, April 11, 2007, 13:34 GMT, ColomboPage News Desk, Sri Lanka.

Apr 11, Colombo: Sri Lanka will import 5,500 tonnes of Basmati rice duty free from Pakistan for the year 2007 under the Free Trade Agreement (FTA) with that country.

Sri Lanka public sector is to import 500 tonnes while the rest is imported by the private agencies liable to a “certificate of origin” issued by Trade Development Authority of Pakistan. Sri Lankan importers can now apply for the issuance of letter of recommendation to import Basmati rice through the Ministry of Finance.
http://www.colombopage.com/archive_07/April11133419SL.html

 

[Neo]

UBL to issue $250 million bonds to raise Tier II capital

KARACHI (April 12 2007): United Bank Ltd (UBL) plans to issue an overseas bond worth up to $250 million to raise Tier II capital, a senior official at the country's third largest bank said on Wednesday. Aameer Karachiwala, group chief financial officer of UBL, said plans for the issue to raise Tier II capital were at the final stage.

"We plan to raise $200 million to $250 million in the international market, and it will be done through a bond issue," he told Reuters. "We are looking to closing it in the next two to three months, and will be awarding a mandate in this regard very soon."

According to banking sources, Deutsche Bank is most likely to get the mandate for the transaction. The bond plan comes days after the government appointed Merrill Lynch and KASB Group to manage a global share sale of UBL, to be completed before the 2006-07 fiscal year ends on June 30.

The government, which is only selling part of its roughly 45 percent holding in the bank, is expected to sell a stake worth $200 million to $300 million. Earlier in the day, banking sources said Pakistan's denim maker, Azgard Nine, was also planning to issue a $200 million dollars-denominated bond in the July-September quarter. Citigroup has been mandated to manage this transaction, they said.

http://www.brecorder.com/index.php?id=549547&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

'US providing $600 million grants yearly since 2005'

ISLAMABAD (April 12 2007): National Assembly Standing Committee on Economic Affairs Division was told that in addition to loans, the USA was providing grants to the tune of $600 million each year since 2005. The secretary Economic Affairs Division informed the committee, which met in the Parliament House here on Wednesday that UK's share in this was 100 million pounds sterling each year.

It was also informed that Pakistan is paying interest at the rate of 7.125 percent. Secretary EAD added that Pakistan's current rating in the financial sector was B. The committee constituted a sub-committee to examine the loans for the projects of earthquake, Rawalpindi environmental improvement and Pakistan Railways.

http://www.brecorder.com/index.php?id=549566&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

April 12, 2007
New $500m bond for budgetary support

By Khaleeq Kiani

ISLAMABAD, April 11: Pakistan will shortly make another issue of global dollar bonds to raise over $700 million funds for general budgetary support, according to an official statement.

“Pakistan will return to the international financial market with a Rule 144A/Regulations dollar bond issue for general budgetary support,” announced the ministry of finance here on Wednesday. This rule makes the securities eligible for purchase and trade by institutional US investors.

It said the securities will not be and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act, the statement added.

The statement is a pre-requisite under the US laws before floating bonds in New York where Pakistan plans to issue its sovereign bonds worth $500 million or above according to market conditions.

A team comprising Adviser to the prime minister on Finance Dr Salman Shah, secretary finance and economic adviser to the finance ministry have already left for the United State to attend spring meetings of the International Monetary Fund (IMF) and the World Bank and to try to trigger interest for the Pakistani paper.

Finance Ministry has selected three banks as lead managers for the transactions, including Citibank, Deutsche Bank and HSBC Bank. The government plans to float these bonds in New York most probably in May. The finance ministry has been holding continuous meetings with these fund managers on the subject over the last few weeks.

This will be Pakistan’s fourth international bond in the last five years. Last year, Pakistan sold $800 million in a dual-tranche sovereign bond, comprising $500 million in a 10-year issue and $300 million in 30-year paper. The proposed new sovereign bond is likely to be for 15 and 20 years maturity period.

In 2004 Pakistan raised $500 million through five-year sovereign Eurobond and in 2005 it issued $600 million five-year Sukuk (an Islamic bond) against which it had to pledge certain sections of the Motorway project.

http://www.dawn.com/2007/04/12/ebr9.htm

 

[Neo]

April 12, 2007
Engineering sector’s development assured

ISLAMABAD, April 11: Abdul Hafeez Chaudhary, chief executive officer, Engineering Development Board, has assured that the government will continue policy initiatives taken for development of the engineering sector.

The CEO was addressing officers of the board here on Wednesday for the first time after taking over the charge of the post. He added that the Ministry of Industries, Production and Special Initiatives was keen to improve its interaction with the engineering sector and in pursuance of this policy, former CEO, EDB, Imtiaz Rastgar, an industrialist, has been inducted in advisory council of the ministry.

This will not only ensure continuation of policies but ensure close liaison between the government and the industry. He also underlined the need for completing the ongoing projects with devotion and dedication.

He called upon the officers of the board to work on a team and take a new start for improving the working of EDB.

Referring to his future plans, he said he would hold shortly sectoral meetings to identify problems and remedies. Later, he went round various sections and expressed satisfaction over the facilities available.

http://www.dawn.com/2007/04/12/ebr18.htm