Pakistan Economy - News & Updates - Archive

[Neo]

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.

July-February car industry FDI far less than needed

ISLAMABAD (April 18 2007): The inflow of foreign direct investment (FDI) in the local car manufacturing sector has been recorded at $26.7 million during July-February period of the current fiscal year, which is far less than the investment required for expansion of the industry to bridge the demand-supply gap, sources told Business Recorder.

"The FDI volume in local car manufacturing is not sufficient to bridge the gap between demand and supply of cars, especially the small units," sources said. This would dent government efforts of persuading the local car manufacturers to increase their yearly production capacity to 500,000 units in the next few years.

For this purpose, the local car industry is required to invest around Rs 250 billion by the year 2011. Keeping this figure in view, the car industry is required to invest around Rs 50 billion per year.

However, in the first eight months of the current financial year, the investment under the expansion plan has been far less than government expectations, sources said. This would not help the government to give any kind of relief to the consumers, who have been facing delays in vehicles' delivery by local car companies, they added.

The government plan has received a serious setback despite the fact that it has already approved the first ever long-term Auto Policy, which has been a longstanding demand of the car industry. Under the plan, investment by car industry was also required for improvement in quality of the product. "The government actually wants the manufacturers to produce vehicles of the same quality as produced by the Japanese manufacturers," sources said. However, the amount of investment suggests that the car assemblers are "not really interested" to consider even this very important issue, they added.

However, an official in Pakistan Automobile Manufacturing Association (Pama) told Business Recorder that the inflow of investment in car manufacturing was slow due to the fact that long-term Auto Policy was yet to be implemented in full spirit. "It is encouraging that Auto Policy has been approved. However, the car industry is yet to have it as final document for implementation," he said.

Sources said that in the last fiscal year, around $26.6 million was invested in local car industry. The volume of FDI in the same sector in the first eight months of the current fiscal year suggests that local car manufacturers have been least moved by the long-term Auto Policy, they added.

They said that investment in motorcycle manufacturing actually declined to $0.7 million. An investment of $3.4 million was recorded in motorcycle manufacturing in the last fiscal year. The FDI in buses, truck and van making was slightly up at $5 million, which was also not up to the expectations of the government, sources said.

http://www.brecorder.com/index.php?id=551968&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Karachiites facing severe power outages

KARACHI (April 18 2007): The power demand of country's economic engine touched 2200 mega watt (MW) on the start of summer season that compelled the city to remained electricity deficient which looms between 120 to 150 MW on Tuesday.

Due to this situation, the people experienced sudden power breakdowns that hit the metropolis during the last 48-hour resulting in low voltage and leaving citizens at the mercy of power utility which is presently managing group-wise load-shedding for their consumers.

The power utility - Karachi Electric Supply Corporation (KESC) is conducting group-wise load-shedding as during the day (Tuesday) the electricity shortage recorded at 120MW and after 7pm evening, the demand increased to 150MW restraining the utility to opt for load-sharing.

The month started with a big bang as far as power supply from Water and Power Development Authority (Wapda) is concern as on April 2, KESC received sudden cut of about 350 megawatts shortfall from the authority compelling it to immediately resort to load-shedding for one to one-and-a-half hours on a rotation basis in the metropolis.

Since then, the corporation remained handicapped from the authority's side to receive less power that the Wapda was supplying to the KESC. The authority (Wapda) was given deadline by the federal government to streamline transmission-system before May 1, after that the authority has to supply 700MW of electricity to the corporation.
http://www.brecorder.com/index.php?id=552020&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Mobilink to invest $700m

KARACHI: President and CEO Mobilink Zouhair A Khaliq said on Tuesday the company had planned to invest US$700 million in the next 18 months in Pakistan to meet capital expenditure.

Addressing newsmen after the closure of Rs7.5 billion syndicated loan facility for the company, he said the capital increase would be used to expand and enhance capacity.

He said the company had planned to cover new cities and emphasis would be on rural areas of the country.

Replying to a host of questions, he said signal towers of mobile phone companies did not pose any health problems to residents, adding there was no scientific reason that SMS or mobile phones were injurious to health.

However, he admitted the spread of rumours initially hit the number of calls, but after two to three days normal call traffic was restored. He described the rumours as a ‘bad joke’.

President and CEO MCB Bank Aftab Manzoor called the mobile phone company a leader in the telecommunications industry and congratulated it on successful completion of the loan facility.

Out of two syndications, Rs4 billion medium-term financing has been exclusively arranged by MCB Bank through participation of more than 14 financial institutions. The remaining Rs3.5 billion syndicated finance has been jointly arranged by MCB, Habib Bank, United Bank, Allied Bank, HSBC and NIB.

http://www.thenews.com.pk/daily_detail.asp?id=51697

 

[Neo]

Karachiites facing severe power outages

KARACHI (April 18 2007): The power demand of country's economic engine touched 2200 mega watt (MW) on the start of summer season that compelled the city to remained electricity deficient which looms between 120 to 150 MW on Tuesday.

Due to this situation, the people experienced sudden power breakdowns that hit the metropolis during the last 48-hour resulting in low voltage and leaving citizens at the mercy of power utility which is presently managing group-wise load-shedding for their consumers.

The power utility - Karachi Electric Supply Corporation (KESC) is conducting group-wise load-shedding as during the day (Tuesday) the electricity shortage recorded at 120MW and after 7pm evening, the demand increased to 150MW restraining the utility to opt for load-sharing.

The month started with a big bang as far as power supply from Water and Power Development Authority (Wapda) is concern as on April 2, KESC received sudden cut of about 350 megawatts shortfall from the authority compelling it to immediately resort to load-shedding for one to one-and-a-half hours on a rotation basis in the metropolis.

Since then, the corporation remained handicapped from the authority's side to receive less power that the Wapda was supplying to the KESC. The authority (Wapda) was given deadline by the federal government to streamline transmission-system before May 1, after that the authority has to supply 700MW of electricity to the corporation.
http://www.brecorder.com/index.php?id=552020&currPageNo=1&query=&search=&term=&supDate=

18, 2007
Markets suffer huge losses due to power cuts

By Aamir Shafaat Khan

KARACHI, April 17: Shopping centres and bazaars in Karachi are facing massive power breakdowns and according to representatives of various market associations shopkeepers are reporting 40-50 per cent drop in sales, especially in peak business hours, which start after the sunset due to scorching heat wave.

On the contrary except for two industrial areas -- Site and Korangi, industrial areas like North Karachi and F.B. Area are facing power breakdowns. Representatives of various market bodies said that very few shopkeepers had stand-by generators and UPS but they did not work in longer duration of power failures. Even low voltage and power fluctuations had almost suspended the working of lifts and air conditioners. They said that traders return their home without any substantial income from sales.

Chairman Tariq Road Action Committee (TRAC) Siddiq Memon said that the area had been suffering six-hour power outages daily for the last one week.

Even at the peak hours of shopping when consumers throng the markets after sunset the area plunges into darkness. Tariq Road has 40 shopping centres and 45 different kinds of bazaars. As many as 250,000 workers are employed in these markets and bazaars. “The cumulative loss of all shopkeepers in the area comes to Rs50 million a day,” he added.

“Only 30 per cent shopkeepers have power generators but one cannot run these for the whole day as it consumes petrol and diesel whose prices are also high,” he said adding that out of 40 some six shopping centres have power generators.

The Tariq Road traders have given 72 hours ultimatum to the KESC to rectify the situation otherwise traders will bring out rallies to record their protest, he said.

Chairman Alliance of Market Association (AMA) Atiq Mir said that city’s markets undergo load shedding three times a day of various durations. “Shopkeepers have lost 40 per cent of their business,” he said. He claimed that hardly five per cent shopkeepers in city’s total 500 markets have got their own generators while there are hardly few shop owners who rely on UPS. The loss per day in terms of sales ranges between Rs1 billion to Rs1.5 billion due to load shedding.

President Saddar Cooperative Market Society Mohamamd Feroz said that the market has been facing twice load shedding of two hours each (morning and evening at peak business hours). Out of 900 shops, including the basement – some 70-80 shops have generators while the Society has also got the market generator but it cannot be run for longer hours.

Senior Vice-Chairman Saddar Alliance of Market Association Abdul Samad Khan said that hardly 10 per cent shopkeepers on Abdullah Haroon Road and Zainbunisa Street have their own generators. Areas like Zainab Market, Victoria Centre, Panorama Centre and Rex Centre have been facing three to four hours power failure twice a day including one after the sunset. “Our business has reduced by 50 per cent,” he added.

INDUSTRY: Chairman Site Association of Industry Imran Shaukat said that Site area has so far been free from any load shedding.

He added that the KESC higher ups had planned to maintain frequent power supply to the industrial areas aimed at maintaining a momentum in daily productivity. Site has 3,500 industrial units in which 15-20 per cent large units have power generators.

Chairman Korangi Association of Trade and Industry (KATI) Masood Naqi said that the area has not been facing load shedding. Even on Tuesday power supply has been normal and satisfactory.

President Karachi Chamber of Commerce and Industry (KCCI), Majyd Aziz said that the Chamber has invited the new KESC boss to discuss the future strategy aimed at controlling frequent power breakdowns and voltage fluctuations.

Chairman North Karachi Association of Trade and Industry (NKATI) Faraz Mirza said that there have been power breakdowns of three hours twice a day. He said out of 2,000-2,500 units only 40 per cent units have power generators.

Vice-Chairman F.B. Area Association of Trade and Industry (FBATI) Muzzamil Hussain said that area has been facing one and a half hour power failure twice a day. He added that there has been a problem of voltage drop in which sophisticated machines cannot be operated.

http://www.dawn.com/2007/04/18/ebr3.htm

 

[Neo]

April 18, 2007
Pakistan to get equal export opportunities

LAHORE, April 17: World Trade Organisation Director General Pascal Lamy has said that Pakistan will be provided a level-playing field for marketing its agriculture products in the developed world.

At a meeting of the Lahore Chamber of Commerce and Industry here on Tuesday, he appreciated Pakistan’s role in all areas of negotiations, and said he fully understood the sensitivities of the country, and would be extending all-out support on the issue of tariff cuts on its exports such as textiles and clothing in current negotiations.

He said though there was not much progress made on issues in Doha Round, a five-year programme had been chalked out to deal with 20 items directly related to environmental goods. “The programme aims at facilitating reduction in tariffs on environmental goods and services. The discussion on industrial and agricultural tariffs as well agricultural subsidies have picked up momentum that would have a visible bearing on the trade of many countries,” he said and added that the WTO was trying to reach out all stakeholders to take them on board on the new developments.

He said there was a strong camp pushing for removal of subsidies on agriculture and fisheries sectors which was being resisted by some countries.

He suggested countries like Pakistan that have great potential to enhance their trade must prepare themselves to reap benefits of tariff reductions and removal of agriculture subsidies. He, however, made it clear that unless and until the US and the United Kingdom cut rate of subsidies and tariffs, the WTO Agri-talks would not move ahead.

He also urged Brazil, India and China to curtail their industries’ tariffs. “The issues of subsidies and industry and agriculture tariffs should be resolved in the larger interest of the developing world,” he said.

Expressing his concern over delay in provision of a level-playing field to the developing countries for marketing their agricultural products to the developed world, the LCCI President Shahid Hassan Sheikh said that Pakistan had fundamental interests in further strengthening the rules governing international agricultural trade, as agriculture was the backbone of its economy.

He said Pakistan enjoyed comparative advantage with regard to a number of agricultural commodities such as wheat, rice and cotton. However, the country had not been able to translate the advantage into enhanced production and exports due to inadequate infrastructure, lack of value addition technologies and restricted access to markets of developed countries, such as USA and EU.

He said Pakistan’s agricultural exports faced competition from the local products in developed countries, which were subsidised not only at the market stage but also at the production level. Besides these subsidies, he said, the developed countries had high tariff and non-tariff barriers that barred Pakistan from increasing its agricultural exports to these countries.

He said anti-dumping duty were another area of serious concern for Pakistani business community. “We are often been subjected to anti-dumping duties. How can the private sector industries sell below cost?. We hope that the Doha round can make the necessary changes so that there is no arbitrary levy of anti-dumping duties.”

http://www.dawn.com/2007/04/18/nat5.htm

 

[Neo]

UN Says Pakistan Needs Reforms To Sustain High Econ Growth

ISLAMABAD -(Dow Jones)- Pakistan needs more reforms to maintain high gross domestic product growth ranging from 6% to 8% and reduce poverty, the United Nations said in a report published Wednesday.

"Reform needs to be maintained to sustain high growth and rapid poverty reduction," the Bangkok-based U.N. Economic and Social Commission for Asia and the Pacific (ESCAP) said in its Economic and Social Survey of Asia and Pacific 2007.

"With fiscal adjustment still a challenge, more progress is needed in tax collection and resource mobilization to reduce large budget deficits," it said.

These reforms would allow redirecting resources from servicing public debt to economic development and social progress, while at the same creating an enabling environment for private investment, it said.

In the 2006 fiscal year, Pakistan's fiscal deficit was estimated at 4.2% of GDP, higher than the 3.3% posted in the previous year due to an increase in spending on reconstruction following the October 2005 earthquake.

Following a debt reduction strategy, the country's public debt-to-GDP ratio fell to 59% in June 2006, from 65% in June 2005, and 85% in June 2000.

"Growth prospects for Pakistan are fairly promising and an increase to 7% or even higher in 2007 is expected following a recovery in agriculture and improved performance of the manufacturing sector," the U.N. survey said.

"To sustain future growth rate of 7-8% more investment is needed to develop human resource and physical infrastructure", survey indicates.

Pakistan is also striving to keep a lid on inflation.

"Increase in consumer prices is a genuine concern in most countries in South Asia," the U.N. said.

"In Pakistan, the government's anti-inflationary policies included effective managing of supply and demand for essential consumer goods and raw materials by means of a liberal imports policy and strengthening of the public distribution system through the Utility Stores", it said.

http://www.nasdaq.com/aspxcontent/N...CQDJON200704181117DOWJONESDJONLINE000839.htm&

 

[Neo]

OGDCL Reports Gas, Condensate Discovery in SE Pakistan

Wednesday, April 18, 2007

Oil and Gas Development Company (OGDCL) has discovered Gas & Condensate from its Chak 66 North East Exploratory Well No. 1. The well is located in Sinjhoro Block in District Sanghar of Sindh Province, Pakistan. The Sinjhoro Block is held by a joint venture comprising Oil & Gas Development Company Limited (Operator), Orient Petroleum Limited International Inc., and Government Holdings (Pvt.) Limited having 76%, 19% and 5% (carried) pre-commercial working interest, respectively.

Chak 66 North East Well No. 1 was drilled down to its Target Depth 3435 meters. Based on electric logs, geological & drilling data the production testing was started on 16th April 2007. Initial short duration test of 41 meters interval on ½" choke size has produced condensate having an API gravity of 50.56o and gas at a wellhead flowing pressure of 1400 psi. The short-duration preliminary testing results are as follows:
--Choke size: 32/64"
--Gas (MMSCFD): 4.14
--Quantity of water (BWPD): 38
--Quantity of condensate (BCPD): 1600

Build up is in progress, one more zone is yet to be tested.

OGDCL is the largest petroleum exploration and production, or E&P, company in the Pakistan oil and gas sector, with a primary focus on gas. It holds the largest portfolio of the recoverable hydrocarbon reserves of Pakistan, at 32% of gas and 37% of oil, respectively, as of June 30, 2006, and contributed 22% of the country's total natural gas production and 48% of its oil production for the year ended June 30, 2006 on a net basis (based on data compiled by the Directorate General of Petroleum Concessions, or DGPC).

With a portfolio of 46 exploration licenses, the company has the largest exploration acreage in Pakistan, covering 39% of the total awarded as of June 2006. While its focus to date has been on onshore exploration, the company has also recently begun conducting offshore exploration activities, an area that the company believes has significant untapped potential.

OGDCL had a net profit PKR 45.8bn for the year ended June 30, 2006 and PKR 12.0bn for the three months ended September 30, 2006.

http://www.rigzone.com/news/article.asp?a_id=44030

 

[Interceptor]

Pakistan has been in this political problem for building energy sources like Dams or Nuclear Power by corrupt people in the country not wanting these systems to increase the Pakistani need for electricity, the few dams built and planned during 1971 are the main suppliers of electricity in the country comparing other counteries to Pakistan ability to build dams is shocking, India and China have build allot of dams for their need because of their fast growing economy, if Pakistan is fast growing economy then it needs the fuel to do so this should be the governments first objective to build more dams and power stations if Pakistan is to overcome the huge need of electricity shortage, in some parts of the country there has not been electricity since independence.

 

[Neo]

Pakistan has been in this political problem for building energy sources like Dams or Nuclear Power by corrupt people in the country not wanting these systems to increase the Pakistani need for electricity, the few dams built and planned during 1971 are the main suppliers of electricity in the country comparing other counteries to Pakistan ability to build dams is shocking, India and China have build allot of dams for their need because of their fast growing economy, if Pakistan is fast growing economy then it needs the fuel to do so this should be the governments first objective to build more dams and power stations if Pakistan is to overcome the huge need of electricity shortage, in some parts of the country there has not been electricity since independence.

Unfortunate but true.
Last mega dam was built three decades ago and despite having enormous hydro potential provinced haven't been able to put their indifferences aside and come forward with a workable solution resulting in serious shortage in power supply including their own.

Mush if he's allowed to stay longer, which I certainly hope happens, will move ahead with the proposed five mega dams.
Other alternative is full utilisation of coal reserves in Sind, est 145 billion ton to generate electricity.

 

[Neo]

Growth prospects promising

ISLAMABAD (April 19 2007): Growth prospects for Pakistan economy are fairly promising and an increase to 7 percent, or even higher, in 2007 is expected based on strong recovery of agricultural sector and improved performance of manufacturing sector, Sarfraz Khan Qureshi, Chief Executive of Innovative Development Strategies, said here on Wednesday.

He was addressing a press conference on the occasion of the launching of 'Economic and Social Survey of Asia and the Pacific' (Escap). The Escap survey stated that large-scale manufacturing grew by 9 percent, down from 15.6 percent in the previous year. Services improved from 8 percent in 2005 to 8.8 percent in 2006, and investment hit a record high of 20 percent of GDP.

It added that to sustain future growth rate of 7-8 percent, more investment was needed to develop human resources and physical infrastructure. Highlighting the major problems to the economic growth of the country, he said that increasing population, high inflation and poverty were the main obstacles.

"Striking an appropriate balance between promoting economic growth and price stability remain as challenge because inflationary pressures accompany rapid economic expansion. Moreover, the current account deficit will have serious negative effect on the balance of payments", he added.

The survey 2007 states that Pakistan's economy grew at an average of more than 7.5 percent over the last three years, although it moderated to 6.6 percent in 2006. The slowdown in 2006 reflected the extraordinary surge in oil prices, the devastation caused by the October 2005 earthquake, and adverse weather conditions.

Agriculture grew at just 2.5 percent in 2006, down from 6.7 percent in 2005, with negative downstream impacts on the textile and sugar industries. Large-scale manufacturing grew by 9 percent, down from 15.6 percent in the previous year. Services improved from 8 percent in 2005 to 8.8 percent in 2006 and investment hit a record high of 20 percent of GDP.

It added that most countries in South Asia felt inflationary pressures in 2006 on the back of high oil prices. Consumer prices in Pakistan rose to 7.9 percent as a result of higher aggregate demand compounded by shortages of principal commodities.

Food prices also rose significantly, hurting the poor particularly. Prices of some essential food items such as sugar, pulses, milk, beef, mutton and some vegetable items witnessed sharp increases.

Most of the items are part of minor crops, livestock and dairy products. The survey stressed that these sub-sectors of agriculture should be given due importance as they play an important role in stabilising overall inflation in general, especially food inflation.

To contain inflation, most countries in the subregion pursued tighter monetary policies. In Pakistan, the Government's anti-inflationary policies included effective managing supply and demand for essential consumer goods and raw materials by means of a liberal imports policy and strengthening the public distribution system through Utility Stores.

The survey added that in fiscal year 2006, Pakistan's fiscal deficit was estimated at 4.2 percent of GDP, higher than the 3.3 percent of GDP in the previous year. The higher deficit in 2006 owed to an increase in expenditure following the October 2005 earthquake. Following the debt reduction strategy, the public debt-to-GDP ratio fell from 85 percent in June 2000 to 65 percent by June 2005 and to 59 percent by June 2006.

In Pakistan, exports and imports continued to grow at double-digit rates in 2006. The trade deficit widened to a record $8.4 billion in 2006, with 45 percent of the increase due to the higher import bill for crude oil and petroleum products. Imports of raw material and machinery also increased sharply.

The current account continued to benefit from large remittances from expatriate workers, estimated at $4.6 billion in 2006. On the financial account, foreign direct investment, at $3.5 billion in 2006, was the highest ever recorded.

Reform needs to be maintained to sustain high growth and rapid poverty reduction. With fiscal adjustment still a challenge, more progress is needed in tax collection and resource mobilisation to reduce large budget deficits.

This will allow redirecting resources from servicing public debt to economic development and social programmes, at the same time creating an enabling environment for private investment.

Increase in consumer prices is a genuine concern in most countries in South Asia. Striking an appropriate balance between promoting economic growth and price stability remains a challenge because inflationary pressures accompany rapid economic expansions.

As the current account deficit is becoming a serious concern, this will have implications for the balance of payments. If oil prices remain high, there will be need to devise ways to contain the current account deficits, the survey said.

Sarfraz said that the Asia-Pacific region is losing $42 billion to $47 billion per year because of the lower labour force participating rates of women and another $16 billion to $30 billion per year only because of gender gaps in education resulting in lower productivity of women.

"The results in Pakistan regarding this issue are encouraging as it is among the six countries in entire Asia having shares of women in parliament equal to or exceeding 20 percent", he said.

http://www.brecorder.com/index.php?id=552737&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Prime Minister seeks China's help to increase export

BEIJING (April 19 2007): Prime Minister Shaukat Aziz has asked the Chinese government to help increase Pakistan's exports under the Free Trade Agreement (FTA) to give it due share in trade for achieving $15 billion trade target.

Talking to Pakistani media after a day-long engagements especially after having met with Chinese President Hu Jintao, Vice Premier Wu Yi and the commerce minister, Shaukat Aziz expressed satisfaction over the progress he made during these high contacts.

The prime minister said the Chinese president was also satisfied with the progress both Pakistan and China made during formal talks between the two premiers a day earlier. The Chinese president has termed the meeting between them (Shaukat Aziz and Wen Jiabao) as very productive and positive from all aspects, he added.

The main focus of his meetings was on enhancing co-operation in trade, business and investment besides, space science and technology, which according to Prime Minister Shaukat Aziz was far ahead of launching of a joint satellite in space. "Projects like Paksat-IR are far behind the co-operation we discussed in the meeting and my visit to Chinese space facility," said Shaukat Aziz, adding that progress made by China in space technology was very impressive.

Asked how many satellites Pakistan would purchase from China, the prime minister said that the numbers of satellites would be negotiated by Suparco and the Chinese Space Centre for which a working group would be established. China is committed to forging strategic relations between the two countries and President Hu Jintao went on to say "Pakistan and China are all-weather friends and strategic partners."

Referring to his meeting with Chinese Vice Premier Wu Yi, he said: "We discussed issues like implementation of FTA, investment in mega dams especially Diamar-Bhasha dam, China-specific industrial zones and opening of Chinese banks branches in Pakistan." With regard to China-specific economic zones, Chinese vice premier expressed that let the first zone be successful and then establish new ones.

When Shaukat Aziz was asked if he took up the issue of illegal trade of Chinese goods to Pakistan, he replied in negation and also clarified that he would say nothing about those issues, which he did not discuss. An official told Business Recorder that Pakistan and China would start negotiations on services in August for which a Pakistani delegation would visit Beijing.

Addressing a dinner hosted by Pakistani Ambassador Salman Bashir, he said he invited Chinese investors to come to Pakistan and invest as they would be provided incentives.

The dinner was attended by a large number of Chinese businessmen and officials, a majority of businessmen were already familiar with Pakistan. Replying to a question, he said that Pakistan would attract $1.8 billion investment to be made by the Chinese companies as a result of agreements and MoUs signed a day earlier.

Earlier, addressing the Chinese Party School, Prime Minister Shaukat Aziz said that Sino-Pak relationship now spans over five decades that had stood with the test of time and remained unshakeable in the face of international vicissitudes. "It is characterised by harmony, vibrancy and vitality and in essence, it is a living example of the Confucian philosophy of harmony without uniformity," he added.

The topic of Aziz's speech was "Pakistan-China Partnership for Harmonious Development in the 21st Century." He said that our friendship has over the years, matured into a comprehensive strategic partnership and is a source of peace and stability not only for Asia, but also beyond it.

"We must endeavour to create a prosperous and harmonious Asia, at peace with itself and the world. We must work towards a framework for Asia-wide co-operation", he said. He pointed out that the present leadership of both the countries continues to enjoy close relations and this expresses the deep-rooted nature of our bilateral ties.

Shaukat Aziz said that friendly relations between Pakistan and China are based on principles of peaceful co-existence. He said Pakistan is becoming economic, energy, trade and communication hub linking the neighbouring regions of South Asia, Central Asia and West Asia and we are actively promoting multi-sectoral and intra-regional co-operation.

Regarding Sino-Pak economic co-operation, the prime minister said there are some 100 Chinese companies functioning in Pakistan while over 3,000 engineers, technicians and Chinese entrepreneurs are working on various projects.

He said t like China, our national priority is socio-economic development and wished to create an environment of peace and stability for ensuring unimpeded progress. On Pakistan's role on fight against terrorism, he said that Pakistan remains in the forefront of the international campaign against terrorism and the fight against terrorism and extremism is in line with our national interest.

"Terrorism, in fact, has become a global problem which is responsible for destabilising societies, engenders fear and destroys individual lives and its pernicious effects were being felt all over the globe", he said. He said that more than ever before, there is a need to promote global harmony and understanding and build bridges between different cultures, countries and the people.

The prime minister while welcoming China in Saarc said that Pakistan hopes to realise co-operation in the field of energy, poverty alleviation and a free trade regime under the auspices of Saarc.

"We are engaged in promoting peace and security in South Asia and have taken several initiatives to that end. Pakistan is engaged in dialogue with India to address all issues, including Jammu and Kashmir, he said.

On Afghanistan, Shaukat Aziz said that we desire to see a peaceful and stable Afghanistan, which is in the vital interest of the region. Pakistan, he said, wishes to play a constructive role in promoting security in the Indian Ocean and continues to contribute positively to the Asia-Pacific security.

The jam-packed audience listed speech of the prime minister with pin-drop silence. Earlier, an MoU on co-operation between Communist Party of China School and the National Defence University was signed. Chinese Communist Party School Executive Vice President Professor Su Rong, in his address of welcome highlighted the deep-rooted relations between Pakistan and China.

http://www.brecorder.com/index.php?id=552706&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Dewan group to set up world class super stores

KARACHI (April 19 2007): Dewan Group, Pakistan's major investment group, has planned to invest three to four billion rupees in the establishment of world-class Dmart super stores all over the country. The group has already invested Rs 500 million in the establishment of three Dmart outlets in the city at Bahadarabad, Defence and in Millennium Mall.

Speaking as the chief guest at a trail motorcycle balllot ceremony at Bahadarabad Dmart outlet, Dewan Mohammed Yusuf Farooqui, Managing Director Dewan Mushtaq Group and a former Provincial Minister, said the group would establish three more outlets in the city at Clifton, Gulshan-e-Iqbal and Federal "B". Area.

http://www.brecorder.com/index.php?id=552758&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

UAE, Pakistani groups may acquire ISPs

By Imran Ayub

KARACHI: Business groups of Pakistan and the United Arab Emirates have entered into a deal with a local telecom consultant to explore investment opportunities in the country with $275 million in purse.

The groups of two different destinations have finally come up with plans of investment in Pakistani telecom which industry sources believe may trigger competition of a new kind and witness stakes’ sell-off by local companies.

“There are strong chances of these two groups acquiring local and small ISPs (Internet Service Providers),” said a source privy to two different deals but wanted to keep the concerned parties unnamed.

“The two groups have committed $55 million each over a period of five years as per business plans agreed by the concerned parties.” He said the two business groups hired the services of the local consultant, who would pinpoint potential areas in the telecom sector of Pakistan with history of higher returns and services of higher demand.

“Potential areas in Pakistan are Internet broadband, data communication services and managed IT and telecom services,” said the source. “But the groups would solely rely on the feedbacks and studies carried out by their consultant. It may take a month or more before a clear picture could emerge.”

Telecom has emerged as one of the fastest growing areas in the country over the last more than three years as it attracted more than $3.5 billion since late 2003 mainly by the cellular companies.

“The telecom shared more than 2 per cent in the overall GDP growth during 2005-06,” said the source citing official figures. Analysts say 2005-06 witnessed a little decline in telecom development compared to previous fiscal but it still offers a lot as the majority of the rural areas in the country lack basic telecom facilities, which attract the attention of both local and foreign operators.

“While being the world’s most rapidly growing market for mobile telephony, Pakistan still has among the world’s lowest penetration rates for the Internet and broadband,” said Ansar ul Haq, an expert in Internet and data communication industry.

“Overall Internet and broadband penetration is very low due to limited fixed-line infrastructures, high domestic and international bandwidth tariffs, inadequate focus of the authorities on Internet and broadband, numerous PTCL (Pakistan Telecommunication Company) issues, but demand is high, and the proliferation of broadband using various mediums including new technologies is expected to deliver a major boost.”

He said local and foreign investment was flowing in as this sector offered significant growth opportunities to service providers, equipment vendors and investors. “But 2006-07 could prove different in terms of telecom development and its share in GDP growth, as the companies in the deregulated environment would focus more on better infrastructure to improve service quality,” Haq added.

The telecom sector topped with the energy sector in attracting foreign and local investment during last financial year, which led to a rise by over 100 per cent in foreign direct investment. The boom in telecom sector managed to attract more than $1.10 billion as total foreign direct investment from July 2005 to June 2006, out of a total of nearly $3 billion, the Board of Investment (BoI) figures show.

http://www.thenews.com.pk/daily_detail.asp?id=51859

 

[Neo]

Thursday, April 19, 2007

Pak growth rate to decline in 2007: UN

By Irfan Ghauri

ISLAMABAD: The United Nations Economic and Social Survey Report for Asia and Pacific, which was released on Wednesday, predicts that Pakistan’s economic growth rate was will decline during 2007.

The report, which projected the average economic growth of Asia and Pacific region at 7.4 percent, stated six points that could disturb the economies of the entire region including oil price stocks, abrupt cooling of housing markets in the US, a reversal of the sustainability of the Japanese economic recovery, economic “overheating” in China and an avian flu pandemic. It stated that the emerging Pakistan and Russian economies were the most vulnerable to these.

The report stated that Pakistan’s economy has grown at an average rate of more than 7.5 percent over the last three years and has slowed down to 6.6 percent in 2006. The decline in 2006 was caused by the surge in oil prices and the devastation caused by the October 2005 earthquake, it stated.

The report stated that low agriculture growth of 2.5 percent in 2006 from 6.7 percent in 2005, with negative downstream impacts on the textile and sugar industries and decline in large scale manufacturing from 15.6 percent in 2005 to 8.9 percent also contributed significantly to the declining trend. In fiscal 2006, Pakistan’s fiscal deficit was estimated at 4.2 percent of GDP, up from 3.3 percent of GDP in 2005.

The report said prices for food items in Pakistan rose by 7.9 percent with higher aggregate demand compounded by shortage of principal commodities. Shortfall in cereal production contributed to inflation in neighbouring Afghanistan.

The report said that while the current account continued to benefit from large remittances from expatriate workers, estimated at $4.6 billion, and the highest ever foreign direct investment of $3.5 billion, the trade deficit increased to a record $8.4 billion, with 45 percent of the increase due to a higher import bill for crude oil and petroleum products.

It stated that reforms were needed to sustain high growth and poverty reduction. With fiscal adjustment a challenge more progress is needed in tax collection and resource mobilisation to reduce large budget deficits, it added. This, the report stated, would allow redirecting resources from servicing public debt to economic development, while at the same time creating an enabling environment for private investment.

The report mentioned an increase in consumer prices as a ‘genuine’ concern in most countries of South Asia. It called for building physical infrastructure in rural areas, as it would promote growth.

The report termed the pricing of power as “complex” and said tariff rates should be competitive and reflect market conditions, with some provisions for poor households. The tariff rates of electricity should be kept affordable for small consumers, the report said, and suggested that a more targeted approach of giving vouchers to the poor so that they can pay electricity bills at market rates is worth considering. Poor households can be asked to pay fixed a percentage of the electricity bill, with the remainder covered through the voucher, it suggested.

http://www.dailytimes.com.pk/default.asp?page=2007\04\19\story_19-4-2007_pg7_3

 

[Introvert]

Pakistan, Switzerland to Accelerate Trade
​

HYDERABAD: The Consul General of Switzerland Martin Bin has said that there is a great scope to accelerate bilateral trade, relation between Pakistan and Switzerland.

He maintained this during his meeting with District Nazim Hyderabad Kanwar Naveed Jameel here at the Circuit House on Wednesday.

MPA advocate Pervez Aslam, Taluka Nazim Hyderabad City Javed Jabbar, Taluka Nazim Latifabad Sabir Hussain Qaimkhani and other officials concerned were present on the occasion.

The Consul General of Switzerland said Pakistan and Switzerland enjoy strong bilateral trade relations which need to be strengthened in a sustainable manner.

He said there were a number of Swiss companies functioning across Pakistan including Hyderabad and Jamshoro.

Martin Bin said Hyderabad was more suitable city for foreign investment as compared to other cities of Sindh due to its peaceful atmosphere.

The Swiss Consul General assured that recommendations will be made for Swiss investment in Hyderabad.

Talking about successful functioning of Swiss pharmaceutical and chemical companies in Jamshoro, he said dozen of Swiss firms were successfully working throughout Pakistan.

He said the Swiss investors intended to establish more industries in Pakistan.

Swiss CG Martin Bin pointed out that trade relations between the two countries have strengthened further during the last few years.

He said Switzerland imports textile garments from Pakistan and exports textile machinery, medicines and chemical to Pakistan.

Evincing interest in archaeological sites of Hyderabad, he suggested to restore the beauty of the sites for promoting tourism at international level.

District Nazim Hyderabad briefed the guest about the ongoing development projects being executed by the district government.

He said development projects at an estimated cost of Rs 6 billion have been launched to revamp the entire infrastructure of the district.
http://www.pakistantimes.net/2007/04/19/top12.htm