Pakistan Economy - News & Updates - Archive

[Neo]

Pakistani exporters asked to explore huge Chinese market

KARACHI (April 15 2007): Newly appointed Consul General of China in Karachi Chen Shan Min said on Friday that China had a potentially huge market and its exports would exceed 1,000 billion dollars by the year 2010.

Speaking at a reception, hosted in his honour by Ijara Financing Inc at a hotel, the Chinese Consul General said competitive products of Pakistan could enter the Chinese markets with joint efforts of both the countries.

He pointed out that presently China's exports to Pakistan stood at four billion dollars, whereas Pakistan exported more than one billion dollar worth of goods to China.

"There is an imbalance in our trade," Chen Shan Min said, and wanted Pakistan to embark upon an aggressive advertisement campaign to introduce its products in China. "Let the Chinese people know you have better products", he added. He said the total trade value of the two countries reached 5.247 billion dollars in 2006.

The Chinese Consul General suggested that Pakistan should arrange a trade fair in China to showcase its top brand of products. He also invited businessmen from Pakistan to China to participate in their biggest trade fair organised twice a year - one from April 15 to 30 and the other from October 15 to 30.

"I will also encourage Chinese companies to come to Pakistan," he said, adding China had sent a large delegation of businessmen to Karachi international trade fair.

He said products like traditional garments (Shalwar-Kameez), bronze items and other handicrafts would get better response from Chinese people. "We should also work towards promotion of border trade and tourism," the Chinese Consul General stressed.

He said he would encourage Chinese companies to invest in Pakistan where there was conducive business climate, better security and friendly environment. China's steady economic success was attracting a number of other countries to enter into its markets for exploring new business and trade opportunities besides developing economic co-operation with China, he said.

Federal Tax Ombudsman Justice Munir A. Shaikh, Consul Generals of Saudi Arabia, United Arab Emirates (UAE), Switzerland, Bangladesh, Sri Lanka, Honorary Consul Generals of Yemen and Morocco, Mirza Ikhtiar Baig and Mirza Ishtiaq Baig, Karachi Chamber of Commerce and Industry President Majyd Aziz, Ijara Financing Inc Managing Director Farrukh Ansari, business elite and others were present.

http://www.brecorder.com/index.php?id=550561&currPageNo=1&query=&search=&term=&supDate=

April 15, 2007

China to increase imports from Pakistan

KARACHI, April 14: Consul General of People’s Republic of China Chen Shanmin has assured to encourage Chinese companies to import more from Pakistan to reduce the trade imbalance, which is presently heavily in favour of China. For achieving this goal, he said visit of trade delegations and holding of fairs in both the countries will be undertaken.

Speaking at a dinner reception organised by Ijara Finacning Inc the newly designate Chinese diplomat said that the trade growth between China and Pakistan increased by a big margin of 30 to 40 per cent per annum. Last year, he said, the volume of two-way trade swelled to $5.247 billion, which was in favour of China.

There were exports to the tune of $4.424 billion against imports of partly amount of $1.007 billion. In order to correct the situation Chen Shanmin listed a number of measures, including encouraging Chinese companies to visit Pakistan, import more and actively participate in Pakistan’s trade fairs.

The Chinese diplomat also asked Pakistani businessmen to visit China and participate in such trade fairs like Canton for exploring Chinese markets. He said that Canton fair is the biggest trade fair held in China twice a year, from April 15 to 30 and from Oct 15 to 30.

Mr Shanmin also suggested that Pakistani business community should organise single country exhibition in China to introduce their products to the Chinese people. He said border trade and tourism will also be promoted to match the strong bondages being enjoyed by both the countries in political and diplomatic relations.

He said globally it is being seen that China hold bright prospects in future development and many nations are interested in entering Chinese market. Many nations are in favour of strengthening their economic relations with China but some are suspicious as they only want to enjoy the profit from cooperation with China and are equally afraid of its development and economic strength.

However, the Chinese diplomat cautioned that peaceful development of China will be more beneficial for the world as it will contribute towards security and stability. China accounts for one fifth of world population with 1.3 billion people bordering 14 neighbouring countries.

Ever since joining the WTO in 2001, China imported foreign goods worth $500 billion every year, thereby creating 10 million job opportunities for the countries and regions concerned.

Chen Shanmin said that in 2010, China’s import will exceed $1,000 billion. He said his country provides cheap and good quality products, which benefit consumers of importing countries.

In his address of welcome Farrukh Ansari, the chief executive officer of Ijara Financing spoke about strong and time-tested bondage between Pakistan and China. He also briefly highlighted the role being played by his institution in promoting trade and industry by arranging funds for the corporate and private sector entities.

Federal Tax Ombudsman Justice (retd) Munir A Sheikh also addressed the select gathering which was also attended by diplomats from European and Middle Eastern countries.

http://www.dawn.com/2007/04/15/ebr11.htm

 

[Neo]

Sunday, April 15, 2007

World Memon Organisation: Pakistan to be one of higher economic growth countries: PM

KARACHI: Pakistan will be, this year again, one of higher economic growth countries in Asia.

Prime Minister Shaukat Aziz declared this here on Saturday. He was speaking as chief guest at the inaugural session of Fifth Annual General Meeting of the World Memon Organization (WMO) at a local hotel on Saturday.

The PM said the country achieved this growth owing to the present government’s policies and reforms.

Shaukat Aziz said that almost eight years ago when President Pervez Musharraf took charge, the country’s situation was not good and it was going nowhere and we were worried about paying next month’s bills and that we were at the brink of what could have been a serious situation. “But we took the challenge,” he remarked adding that we joined the team of President Pervez Musharraf with the aim of restoring the glory of the country.

“Today by the grace of Almighty Allah Pakistan is Mashallah Pakistan is stronger and growing,” he added.

The PM declared that Pakistan this year again would be one of the higher growth country in Asia.

He recalled that couple of years ago, people would say that this economic improvement was 9/11 related. The 9/11 has come and gone and the people have forgotten it and Pakistan is still growing.

About the role of the government in the world of today and tomorrow, Shaukat Aziz said his role is to create opportunities for the people and it is up to them to take advantage. He pointed out that because of government’s reforms and improvements that have been brought about the country is heading in the right direction. There is creation of wealth and jobs as well as opportunities, which were never seen before.

The PM pointed out that more than 60 percent population lives in rural areas and added that this year we will see one of the highest growth in the rural economy ever in the country’s history.

He said we are heading for bumper crops, which will create income for the farmers, and this is good news for the country and the people. Shaukat Aziz said that we are creating a larger middle class and reducing people living in poverty.

He said we still have 25 percent people living in poverty and need to improve their future and give them a better future. The PM announced that our target of seven percent growth this year would be met and this would be met which will create more investment than before.

He pointed out that level of investment was up to 20 percent of the GDP, which is the highest in history since the country’s independence. The PM announced that the country will have the higher foreign investment this year which will be close to five billion dollars which is the highest since the Pakistan became independent 60 years ago.

He said that now we have to make sure that we give the people better education, healthcare, infrastructure, law and order and security.

http://www.dailytimes.com.pk/default.asp?page=2007\04\15\story_15-4-2007_pg5_5

 

[Neo]

Islamabad and Beijing to sign 20 MoUs: Shaukat

ISLAMABAD (April 16 2007): Prime Minister Shaukat Aziz on Sunday said that Islamabad and Beijing would sign 20 Memoranda of Understanding (MoUs) during his six-day visit to China. Talking to reporters, he said a high-levelled delegation comprising ministers and businessmen would visit China on Monday.

China has invited Pakistan to attend the BOAO Economic Forum besides Nobel laureate Dr Younas, Philippines' President and Bill Gates. Prime Minister Shaukat Aziz would be the keynote speaker at the Forum.

The Prime Minister said he would also hold a series of bilateral meetings with Chinese officials and businessmen. Terming his visit as 'significant,' Shaukat Aziz said the Memoranda of Understanding (MoU) would be signed in various fields including energy, defence, security, commerce, science and technology, culture and trade. He said that he would also visit defence installations and witness the making of JF-17 Thunder aircraft.

He told reporters that Pakistan would open new consulate general's office at Chengdu. He said that Pakistan and China have time tested ties and were eager to further cement their relations. Aziz said private businessmen from Pakistan were also visiting China and they would also materialise their plans of co-operation with the Chinese authorities.

Prime Minister Shaukat Aziz who is starting his five-day visit to China (April 16-21) to China would witness manufacturing process of JF-17 Thunder aircraft in Chengdu, official sources told Business Recorder.

Prime Minister would be accompanied by a strong delegation comprising private as well as public sector representatives.

Official sources told Business Recorder that Prime Minister's visit would mainly focus on three tiers ie Free Trade Agreement (FTA) promotion, special economic processing zones and financial joint investment banking.

They said that Secretary Commerce, Secretary Board of Investment (BoI) and Secretary Finance had been assigned the responsibility to finalise the agreements with Chinese counter parts.

According to sources, the Prime Minister had asked the commerce ministry and the Trade Development Authority of Pakistan (TDAP) to recommend 20-25 businessmen for accompanying him during the visit.

The Prime Minister has also agreed to consider creation of an Economic Minister's post in the embassy in China to facilitate investors.

http://www.brecorder.com/index.php?id=551309&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

April 16, 2007
Coping with record trade deficit

PAKISTAN has incurred a deficit of $10 billion in its external trade in the first nine months of the financial year — an average deficit of over a billion dollars a month.

That has happened as imports during the period rose to $22.42 billion while exports just increased to $12.345 billion -- a nominal increase of 3.5 per cent against the federal budget projection of 12 to 14 per cent rise.

The situation began deteriorating from September last after the year began well and improved marginally last month, but there is no assurance of improvement being sustained during the last quarter of the financial year. After the first nine months exports recorded a deficit of $9.985 billion. The fear is that the total deficit for the year may reach $12 to $13 billion by June, close to the foreign reserve.

Commerce minister Humayun Akhtar says the situation is not that bad as the exports this year are still larger than last year, but the fact is that the deficit has increased by 15.1 per cent from $8.687 billion this time last year.

The export performance is far less than what the country desperately needs. The scope for exports is far larger if approached the right way. Anyway Pakistan cannot afford to lose its markets to China, India and Bangladesh.

The large trade deficit which has also created a record current account deficit is now covered by the inflow of home remittances from Pakistanis overseas, foreign investment and privatisation funds. But this year the grace period extended by the group of 26 Paris Consortium after 9/11 comes to an end and the lenders expect us to resume the scheduled repayments. That will exercise pressure on the balance of payments of the country and the World Bank has reminded Pakistan of that now.

Meanwhile, the rise in trade deficit is caused by the high price of oil, which may cost $7 billion this year and the rising international prices of many essential imports, including all metals led by steel and major food items like powder milk and vegetable oil, particularly palm oil.

In the area of exports, after the European Union has cancelled fish imports from Pakistan due to unhygienic conditions at the fish harbour and diverting its fish imports to India and Bangladesh, we are losing poultry exports as well because of bird flu. Already 47,500 birds have been culled in Karachi alone to avoid bird flu.

Now while Pakistan is seeking FTA agreements with China, US and other countries, we are thinking only of the larger opportunities for exports to their markets and not of the possibility of tax-free or reduced tariff goods from those countries flooding our markets. That is happening already in respect of Chinese goods in Pakistan and Pakistan has been forced to levy heavy anti-dumping duties against two kinds of very cheaply sold tiles.

We have to be ready for protective measures against cheap imports as well and have to reduce our cost of production and sale of goods so that we can withstand imported competition as well while competing with foreign goods abroad successfully. Our businessmen have to learn to accept moderate rates of profits instead of opting for high profits all the time.

Meanwhile, there are rejoicings in Malaysia over the non-conclusion of negotiations for the FTA before the US deadline for reaching the agreement expired. And there are widespread protests in South Korea over the FTA agreement which has concluded by its powerful trade unions for fear of massive loss of jobs. The agreement is concluded but is not ratified by the parliament of the two countries.

In Pakistan there is utter complacency or lack of understanding over the full implications of FTA agreements with developed countries. The FTA is a sharp double- edged sword. It offers as many opportunities for larger exports as it offers to the other parties for exporting tax-free or reduced tariff items to Pakistan in plenty.

At the same time, we have made a mess of our fish exports risking $80 million export earnings because of our cussedness and the belief that anything can pass despite stern earnings from the European Union. We have now placed the responsibility for managing the fisheries on the provinces. Let us hope they will do better than under the divided management.

We are also hoping to export wheat to India after an interval of 50 years. Our wheat production is expected to rise to 23 million tones with two million tones surplus while the Indian deficit is five million tones. It is hoped that a good use of the situation would be made. We are also trying to export cement to India after the first consignment ran in to some difficulties.

If we have to achieve our export target of $18.6 billion we have to try far harder and rationally than we have been doing and try to limit our imports to the ceiling of $28 billion.

We do not know at the moment how far the Chinese industrial estates, which are to come up in Pakistan in collaboration with Pakistani businessmen, will be helpful in increasing our exports particularly to China. It depends on the kind of industries on which the Chinese invest and develop competitively.

While the import budget at $28 billion is very large, the government does not want to reduce it as apart from oil, it consists of industrial machinery, electrical equipment, raw material for industries and automobiles which bring large revenues to the state. Reducing imports would also mean a drop in the revenues which the government does not like but also the reduction in the import of machinery and raw materials will affect economic growth and increase unemployment which the government cannot risk.

But it is wrong to say that the key players in the government do not know the reasons for the small exports and its creeping increase and the commerce officials have kept the government in the dark regarding the real reasons. The newspapers are full of the reasons why the exports are poor. And the top officials are told the reasons at numerous seminars workshops they attend which include the high cost of production in Pakistan and the heavy price of doing business.

The international financial institutions have spot lighted the reasons for the poor exports and have offered financial help to implement the necessary reforms. The fact is that while there is so much talk about reforms, first generation reforms and second generation reforms, there is a reluctance to change, to break away from old habits and bureaucratic traditions. There is a reluctance to trust non-officials despite massive privatisation programme of the government and the new public-private partnership.

A report on the state of commerce in Pakistan, largely in respect of the private sector, has been on the table of the commerce minister for two years he says, but since decisions have not been taken on the report, it has been gathering dust although it may be the first official study of the domestic commerce which needs detailed scrutiny now.

Radical changes are essential in the commercial sector, both on the part of the government and the private sector. The earlier such changes occur the better, in a highly competitive international market world where the weak and the vacillating are left far behind.

http://www.dawn.com/2007/04/16/ebr11.htm

 

[Neo]

Kuwait Energy To Invest In Pakistan Oil, Gas Operations -Pakistan

ISLAMABAD -(Dow Jones)- Kuwait Energy Co. will invest $45 million in oil and gas exploration in Pakistan, Pakistan's Petroleum Ministry said Monday.

Kuwait Energy Chairman Manssour Aboukhamaseen met with Pakistan's Petroleum and Natural Resources Minister Aman Ullah Jadoon Monday about investing in the country.

He expressed his company's "keen interest in investing $45 million in oil and gas exploration activities in Pakistan," the ministry said in a statement.

Pakistan has a vast onshore and offshore sedimentary area spanning 827,000 square kilometers, of which around 25% is under exploration, according to the minister.

Last week Pakistan unveiled a draft oil and natural gas exploration policy that includes allowing foreign and domestic exploration and production companies to sell oil and gas at higher prices in the domestic market.

http://www.nasdaq.com/aspxcontent/N...CQDJON200704161244DOWJONESDJONLINE000476.htm&

 

[Neo]

Highest raise in remittances during March

ISLAMABAD (April 17 2007): Workers' remittances registered the highest ever increase in Pakistan's history when a record amount of 520.24 million dollar was remitted last month (March 2007) as against 423.56 million dollar in March 2006 showing a jump of 96.68 million dollar or 22.83 percent.

The previous highest amount remitted in a single month was recorded in May 2006, when an amount of 506.57 million dollar was received in the country from overseas Pakistanis.

Pakistan received an amount of 3,936.77 million dollar as workers' remittances during the first nine months of the current fiscal year (July 2006 - March 2007) as against 3,228.21 million dollar received in the corresponding period of the last fiscal year registering an increase of 708.56 million dollar or 21.95 percent.

The amount of 3,936.77 million dollar includes 1.90 million dollar received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

The monthly average remittances for the period July 2006 - March 2007 was 437.42 million dollar as compared to 358.69 million dollar during the same period of the last fiscal year depicting an increase of 78.73 million dollar or 21.95 percent.

The inflow of remittances into Pakistan from all countries of the world increased last month (March 2007) as compared to March 2006. Remittances from USA Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to 142.72 million dollar, 92.69 million dollar, 82.29 million dollar, 70.43 million dollar, 37.75 million dollar and 12.88 million dollar respectively as compared to 108.13 million dollar, 72.50 million dollar, 71.96 million dollar, 57.96 million dollar, 38.63 million dollar and 9.79 million dollar in March 2006.

Remittances received from Canada, Australia, Norway, Switzerland, Japan and other countries during last month (March 2007) amounted to 81.13 million dollar as against 64.47 million dollar in March 2006.

The inflow of remittances during the first nine months of the current fiscal year from USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to 1,034.69 million dollar, 733.48 million dollar, 595.98 million dollar, 538.29 million dollar, 319.25 million dollar and 110.38 million dollar respectively as compared to 893.54 million dollar, 515.59 million dollar, 491.25 million dollar, 429.32 million dollar, 305.35 million dollar and 87.62 million dollar during the same period last fiscal year.

Remittances received from Canada, Australia, Norway, Switzerland, Japan and other countries during the first nine months amounted to 602.80 million dollar as compared to 494.85 million dollar in the corresponding period of the last fiscal year.

http://www.brecorder.com/index.php?id=551545&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

IFIs extol Pakistan's macro-economic stability

WASHINGTON (April 17 2007): The International Financial Institutions (IFIs) view with great appreciation Pakistan's macro-economic stability and attractive conditions for doing business, adviser to Prime Minister on Finance and Revenues Dr Salman Shah said.

Record inflows of foreign investment into Pakistan signify global investors' growing trust in the long-term strength of the country's economy, he said while briefing journalists about his meetings with officials of the World Bank, IMF and other financial institutions.

Shah, who is heading a delegation of economic managers at the annual spring meetings, described his interaction as very positive.

He said the International Finance Corporation officials told him that they see Pakistan as having best indicators for doing business in the South Asian region. They are also studying the reforms that have helped Pakistan facilitate doing business in the country.

On the state of the economy, the country is on course to recording a robust 7 percent growth this year while foreign exchange reserves will touch an unparalleled US dollars 15 billion mark. Strong foreign and portfolio investments are pouring in and will cross US dollars six billion for the first time. Exports have shown a 6.5 percent growth, a little below the target. The core inflation is down to 5.5 percent. Shah particularly highlighted the importance of foreign investment being widespread, taking place in several sectors of the economy including banking, finance, oil and gas, energy, telecommunication, manufacturing and construction.

Dr Shah, flanked by Dr Ashfaque Hassan Khan, Adviser Finance Ministry and Director General Debt Office.

Pakistan is poised to attract huge investments in the years ahead as fundamentals of the economy are strong, reforms are underway and new initiatives are being taken, he stated. He referred to Prime Minister's visit to China, during which Dr Shah said Pakistan would particularly stress interaction with the Chinese corporate sector.

About the current account deficit, he said it is manageable and has increased due to enormous economic activity which has seen rising oil and machinery imports to propel further growth. On the agrarian side, he said this year the country will be having a bumper crops of wheat, sugar cane as well as pulses. The wheat production will be 23 million tones, according to conservative estimates, he said and added this has been possible due to a combination of factors including wider usage of fertilisers, timely announcement of support price and good weather.

The adviser said senior IMF leaders the delegation met have commended Pakistan's debt profile and added that debt to GDP ratio is 53 percent, better than India, Egypt and Turkey and other economies in the category.

Pakistan, he stated, will reap demographic dividends as global investors not only eye its 160 million population market but also realise that about 100 million people are under the age of 25 years. The investors look at their economic life cycle and the government is committed to developing its tremendous human resources as well as putting in place requisite infrastructure for fast-paced development.

However, he said, every segment of the society owes a role in making Pakistan an attractive and congenial destination for investment. Regarding improvement in PIA, he said the government intends to revamp PIA and replace its fleet of old planes over a period of time and has devised a five-year plan to improve its efficiency. The PIA, he said, has potential to be a major airline as it has committed customers who prefer to fly it.

Dr Shah underlined the importance of power sector in sustaining higher economic growth in industrial and agricultural sectors and said water projects are the best as they provide both water and energy. He saw increasing prospects for investment in small hydel projects.

http://www.brecorder.com/index.php?id=551625&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Pak, China sign 15 cooperation agreements

BEIJING: Pakistan and China Tuesday inked 15 private sector agreements for constructing a new Gwadar airport and an automobile plant besides collaboration in tourism, agro industry and housing sectors.

The agreement signing witnessed by ministers from both the countries also deal with establishment of technology and Industrial zone, and Pakistan and China Friendhsip Park, black plates shipment, power, housing and mega infrastructure.

Minister for Industries, Production and Special Initiatives Jehangir Khan Tareen speaking on the occasion urged the Chinese investors to come forward and avail the opportunities offered to them in various sectors in Pakistan.

He said that under the FTA 85% of goods traded between the two countries will be either totally tariff free or under preferential tariff and added this will greatly expand the scope for further growth in trade and investment.

"We have not stopped at the EHP and the FTA, but have also taken further steps to increase cooperation and both the government in this regards have signed the 5 year programme for Trade and Economic Development under which both governments will encourage their private sectors. He said that 61 projects have been enlisted in which public and private sector companies from both countries can participate.

The minister pointed out that Pakistan has also approved preferential policies for Chinese businessmen investing such Industrial Parks, which include total exemption of customs duties on import of machinery and equipment and Income Tax Holiday for 5 years. He said Pakistan has announced a number of preferential incentives for Chinese investors and added that the two governments have also agreed to establish a Pak-China Joint Investment Company with a capital of US $ 200 million.

Elaborating further, Tareen said that this company will have equal partnership of Pakistan and the China development Bank and will play a leading role in facilitating Chinese enterprises to come and invest in Pakistan.

"Private sector has been a major factor in the rapid economic growth of Chinese economy and the All Chinese Federation of Industries and Commerce (ACFIC) being the representative body of the nearly two million Chinese enterprises can play a very important role in expanding the cooperation between the private enterprises of both the country", the minister said.

Referring to the rapid economic development of China, the minister said that it has not only brought prosperity to the Chinese people but it also acted as an engine of growth for the global economy and said that the economic growth of China will contribute to greater stability in the world. .

He said last November Chinese President Hu Jintao visited Pakistan and now Prime Minister of Pakistan Shaukat Aziz is visiting China.

http://www.thenews.com.pk/updates.asp?id=21023

 

[Neo]

Pak economy far better than India: Ishrat

Tuesday, April 17, 2007

KARACHI: Chairman National Commission for Government Reforms Dr Ishrat Hussain has said the performance of Pakistan’s economy is far better than India if compared in relative terms instead of absolute terms.

Speaking at a luncheon meeting with the members of American Business Council on Monday, he said Pakistan’s exports were larger than India’s if difference of their size and population is considered. “If our export today stands at $18 billion, theirs should be at $144 billion. But they are standing at $95 billion,” he said.

Similarly, he said, Pakistan had been more successful than India in attracting foreign direct investment. “As we are likely to have received $5 billion as FDI by the end of this fiscal, India should attract $40 billion, but its FDI stands only at $12-15 billion,” he said.

Hussain said it was easier in the first three years of Musharraf government to get things done because there was no elected government. “We took many decisions in that period and implemented them very easily through ordinances,” he said. “Now the situation is quite different. It looks like a one-man dictatorship from outside, but the fact is that everything is discussed in cabinet committee and the cabinet. It also goes through standing committees of parliament and is debated on the floors of Senate and National Assembly, which takes a lot of time. However, we have to respect the authority of the elected representatives.”

He said the ultimate aim of the NCGR is to make the lives of ordinary citizens easier by ensuring better education, health and other services to them through reforms at the government level.

The former governor of SBP said there are too many ministries and then these ministries have different departments. “In Islamabad officers keep holding meetings all the time to coordinate their matters, but that coordination is difficult to achieve. There is too much fussiness today; we need clarity,” he said. “We have decided the areas of education to be overseen by different levels of government. Higher education is to be overseen by federal government, college level education by provincial governments and primary level education by district level governments,” he said.

He said that there was need to replicate the experience of petroleum ministry in the other ministries. He said petroleum ministry had given autonomy to public sector corporations like OGDC and SSGC and had formed OCAC to decide prices. It is now concerned only with policy-making and in projects like IPI gas pipeline, he said. He said the government’s only job should be to plan, make policies, implement and monitor their respective areas. It should not be involved in running enterprises, he said.

The chairman NCGR said there were some commercial services being run by officers who were unable to compete because of government restrictions. He said there was no need to retain the civil servants’ groups of commerce and trade, postal service and railway.

He said officers should be paid according to market conditions and their performance instead of grades. “These things may have worked in 1950s, but you cannot solve today’s problems with instruments of the past,” he said.

He advised the ABC members to form a group, which should identify problems companies face in dealing with ministries and make recommendations for his commission. President ABC Iqbal Bengali said the ABC members wanted the government to ensure protection for intellectual property rights, patents, and trademarks and eliminate counterfeits. He said the government must also work towards ensuring data exclusivity.

He stressed level playing field for market players and said for this the government must eliminate smuggling. He said the ABC members advocate access to information and expect transparency in the government decisions.

http://www.thenews.com.pk/daily_detail.asp?id=51563

 

[Interceptor]

R & D is yet another sector that needs serious attention since demand for consumer goods will increase due growing desposible incomes.

We want to learn from the mistakes of other growing economies where this aspect has caused chaos and pollution due negligence.

Pakistan developed the Adam car which is said to be a Pakistani car but after studying the report the engine is chinnese origin but it also said that the Pakistani engine factory is in development and later the car will have a pakistani engine. My view is that if the engine is forign origin than it is in my sense a forign car even though the entire car was built in Pakistan. The report was a few mounths ago so the factory must have been developed by now. There are alot of Pakistani car manufacturers that have developed energy saving cars, hope this carries on. The R&D this has been a problem in the past but I hope they are spending more on the R&D sector for better quality and more reliance.

 

[Interceptor]

This agian a historic agreement with China a long time friend, this has made both counteries more closer, the implecation of this agreement can help Pakistan make more bigger impact in its economy. More companies can be created as money is coming in to the country it will help create more jobs in Pakistan.

 

[Interceptor]

I wont entirely agree with the the source but I believe it good thing that Pakistan has competition with its Bigger neighbor India it will encourge Pakistanis to struggle and aim higher for the more brighter future for Pakistan. The details indicating the export is very good news for Pakistan.

 

[Neo]

This agian a historic agreement with China a long time friend, this has made both counteries more closer, the implecation of this agreement can help Pakistan make more bigger impact in its economy. More companies can be created as money is coming in to the country it will help create more jobs in Pakistan.

China is a timetested all weather friend of Pakistan and the best is yet to come. New proposals by Hu-jintao ti extend bilateral trade to approx 20 billion by 2015 would cereate millions of jobs throught the country. Proposed energy corridor is another mega project designed to enhance trade bewteen the countries and the region.

 

[Neo]

27 accords, MoUs signed with China

BEIJING (April 18 2007): Pakistan and China on Tuesday signed 27 agreements and memorandum of understandings (MoUs) in the public and private sectors besides extending co-operation in defence, space technology, establishment of a joint investment company and avoidance of double taxation.

However, Pakistan side remained tight-lipped on issues like setting up of more nuclear power stations and the fate of much delayed 969 mw Neelam Jhelum hydropower project in AJK.

"We are re-energising our existing relations and my one on one talks with the Chinese premier were very constructive and productive," said Prime Minister Shaukat Aziz, while briefing journalists after his first day of hectic engagements. Foreign Affairs Secretary Riaz Muhammad Khan and Pakistan Ambassador to China Salman Bashir were also present in the press conference.

Shaukat Aziz, who was looking very happy after the meeting, said the issue of Thar coal and railway engines did not come under discussion, but he asked Chinese banks to invest in Iran-Pakistan-India (IPI) gas pipeline which is a viable project.

Asked if Pakistan discussed establishment of more nuclear power plant, the prime minister said that both sides discussed several issues, but these discussion held within the room.

Fourteen agreement and MoUs which were signed between the two governments are: Co-operation between the Karachi Stock Exchange (KSE) and the Shanghai Stock Exchange (SSE), MoU on construction of cable system between China and Pakistan, treaty on mutual judicial assistance in criminal matters, agreement on implementation regulation for five-year development programme on economic co-operation.

MoU on co-operation between the National Development and Reform Commission (NDRC) of China and the Planning Commission of Pakistan, Protocol-2 to the agreement on avoidance of double taxation, MoU on co-operation between the Ministry of Industry and Production and the NDRC, framework agreement between China National Space Administration (CNSA) and Suparco on deepening co-operation in space science technology.

Both countries also inked MoU on co-operation between the Foreign Service Academy and the Chinese University of Foreign Affairs, MoU on establishment of Pakistan Study Center at the Peking University, agreement on economic and technical co-operation, and MoU on establishment of engineering university in Pakistan.

"We had written things as I read before my counterpart said OK and even at some stage when I missed one thing he reminded me," he added. Shaukat Aziz said that both countries would achieve the target of $15 billion bilateral trade in five years as trade and investment relations are becoming more stronger.

He also met with the heads of Bank of China, China Development Bank(CDB) and Exim Bank and invited them to invest in Pakistan. The CDB governor, in his remarks, said that there was a broad range for co-operation between the two countries and a consortium could be formed for joint investments in various areas.

The prime minister was of the view that there was need for close co-operation between the private sector of both the countries, adding that Chinese private sector is very keen to invest in Pakistan.

Shaukat Aziz, who held 40 minutes one on one talks with Chinese Premier Wen Jiabao was more than happy with the outcome of the meeting. "Today, I will meet Chinese President and the Vice Prime Minister to discuss further co-operation in different fields," he said.

The prime minister also held a meeting with CEOs of China mobile and telecom operators who showed interest in investing in Pakistan. "We are open economy and welcomes investors, providing a level playing field to both the local and foreign companies," he maintained.

Both Wen Jiabao and Shaukat Aziz also discussed Pak-India relations, international issues like Iran, Afghanistan, North Korea and terrorism. "We are very close in several areas and have similar thing on issues like Iran," he said, adding that both countries would work together in such matters.

Earlier, the private sector of China and Pakistan signed 13 agreements for setting up automobile plant, power, industrial zone, construction of new Gwadar airport dairy development, power sector besides collaboration in agro industry, real estate tourism and other mega infrastructure projects.

The agreement signing ceremony was witnessed by Industries and Production Minister Jahangir Khan Tareen and Chinese Deputy Minister Huang Yue Jin. Speaking on this occasion, Tareen said the private sector has been a major factor in rapid economic growth of Chinese economy and the All China Federation of Industries and Commerce (ACFIC) being the representative body of the nearly two million enterprises could play a very important role in expanding co-operation between the private enterprises of both the countries. He also said that 61 projects have been enlisted in which public and private companies from both countries could participate.

Tareen said that Pakistan has also approved preferential policies for Chinese businessmen investing in such industrial parks, which include total exemption from customs duty on import of machinery and equipment and income tax holiday for five years.

He emphasised that the private sector of both the countries should take advantage of the opportunities available and create win-win situation both for their businesses as well as for their respective countries.

Earlier, the Chinese Deputy Minister of the United Front Work and Deputy Chairman of China society of promotion of the Guangcai programme said that the friendship of both the countries is time-tested. Privatisation and Investment Minister Zahid Hamid, Planning Commission Deputy Chairman Akram Shaikh, Navtec Chairman Altaf Saleem were also present during the agreement signing ceremony.

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[Neo]

Shaukat wants CDB to invest more in Pakistan

BEIJING (April 18 2007): Prime Minister Shaukat Aziz said on Tuesday that Pakistan was keen to see more investment from the China Development Bank (CDB) into infrastructure development, energy, banking, dams and agro industry for the mutual benefit of the two countries.

Talking to CDB Governor Chen Yuan, Prime Minister Shaukat Aziz expressed confidence that its co-operation with Pakistani banks and financial institutions would be very beneficial for the two countries. The CDB Governor said there was a broad range for co-operation between the two countries and a consortium could be formed for joint investments in various areas.

Prime Minister Aziz, appreciating the CDB's interest in Pakistan, said there was a need to identify long-term and sustained co-operation between the two countries. He said he was on one of his longest foreign visits, as it was part of the vision of both the countries to increase collaboration in all areas and the two enjoyed a strategic partnership.

He said about 50 percent of the banks in the country were in private hands and the overall reform in the financial sector had helped attract huge foreign direct investment (FDI) of over 5.5 billion dollars during the current financial year.

He also appreciated the signing of a memorandum of understanding (MoU) between the Karachi Stock Exchange and Shanghai Stock Exchange for enhanced co-operation.

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