Pakistan Economy - News & Updates - Archive

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French envoy stresses on strengthening of trade ties between Pakistan- France

Saturday, 21 April 2007

KARACHI, April 21 (APP): The Head of French Embassy’s Economic Mission for Islamabad and Kabul, Jean-Philippe Quercy has stressed on further strengthening of trade ties between Pakistan and France. He said at present trade between the two countries stands at one billion Euros while 32 French companies are working in Pakistan, most of them being in Karachi.

In a meeting with Naib Nazim Karachi Nnasrin Jalil at her office here Saturday, Jean-Philippe said that a big French trade delegation will visit Pakistan in June 2007. He said the French wants to work in the field of solid waste management.

He informed that UBI France, a French Company is successfully working in the field of solid waste management in Beijing and Hong Kong.

The French Economic Mission head, through Naib Nazim, extended an invitation to Nazim Karachi for a visit to Beijing and Hong Kong to see UBI France working on Solid Waste Management there.

Naib Nazim welcomed Jean-Philippe in Karachi and said the City Government is paying special attention on cleanliness and sanitation and after registering record success in the implementation of development projects, and in health, recreation and other fields during the last 18 months, is initiating new measures with regard to health and sanitation.

She informed that during this month Rs 720 million worth vehicles and machineries have been given to Municipal Services department for improvement in sanitary conditions.

The city government, Nasrin Jalil said, wants to ensure lifting of some 8000 tons of garbage generated here to landfill sites.
http://www.app.com.pk/en/index.php?option=com_content&task=view&id=8057&Itemid=2

 

[Neo]

Pakistan may consider Middle East-to-China gas passage project: Shaukat seeks more Chinese investment

CHENGDU (April 21 2007): Prime Minister Shaukat Aziz on Friday asked the United States to avoid use of 'discriminatory criteria' in the provision of civilian nuclear technology to Pakistan. He also announced that Pakistan would consider transportation of gas from Middle East to China.

"US has announced lifting of the three-decade old embargo on India on cooperation in civilian nuclear technology. We favour non-discriminatory criteria, which will offer equal opportunity to both Pakistan and India to access civilian nuclear technology by meeting the relevant benchmarks," he said while delivering a speech here at the Sichuan University, one of the highest rankings of higher learning in China.

The Prime Minister said that there should be level playing field for access to civilian nuclear technology. About proliferation of weapons of mass destruction, he said that it was an equally serious threat to international peace and security, and reiterated Pakistan's support to the global non-proliferation objectives and expressed hope that the Nuclear Suppliers Group(NSG) countries would adopt objective criteria based approach in this respect.

"Pakistan's policy centres are maintaining a minimum credible nuclear deterrent and the establishment of a strategic restraint regime between India and Pakistan, and the two countries have recently signed an agreement on 'Reducing the Risk from Accidents relating to Nuclear Weapons',"he added.

Talking on other international issues, he said that threats of terrorism, proliferation of weapons of mass destruction and 'clash of civilisations' required 'collective response', more tolerance and understanding of each other's political and social systems, cultures and values.

He said that all outstanding conflicts and disputes between states must be settled on the basis of equity and justice, and called for a just and equitable economic order, tolerance and understanding of other political and social systems and of cultures and values.

Shaukat said that no single country or group of nations alone could address and resolve the threats to international peace and security, and added that common threats and challenges called for collective responses "to work to build a peaceful, prosperous and harmonious world."

The function was largely attended by members of faculty and students including Pakistani students studying in this prestigious university. The Prime Minister covered wide-ranging issues including relations with neighbours, country's role at the global level and issues confronting the world including terrorism and extremism.

About terrorism, he said that Pakistan "is resolved to fight terrorism" firmly and consistently and, for this purpose, it believes that an effective counter-terrorism strategy, including military, political, economic and social dimensions, should be adopted.

He also called for recognising and addressing the root causes and said that the conditions of poverty, deprivation, under-development and longstanding disputes resulting in desperation and hopelessness needed to be resolved for sustainable progress.

He said that Pakistan's geo-strategic environment is currently marked by turmoil on the one hand and vast untapped economic potential on the other. He said that Pakistan has suffered the most from continuing instability in Afghanistan following the Soviet invasion in 1979.

"Our society was deeply affected by the influx of over three million refugees, narcotics production and trafficking, gun-running, and recruitment and training of 'mujahideen' for Afghan 'jihad'," he said.

He said that the real factors of instability lay inside Afghanistan, including "a weak state structure, nexus between narcotics and terrorism, warlords, corruption and inefficiency, and slow pace of reconstruction". He said that since early 2004, Pakistan is engaged in a multi-track dialogue process with India encompassing confidence building measures and a composite dialogue.

"The improved relations between the two countries and conducive international environment provide a unique opportunity that must be seized to resolve Kashmir and ensure a bright future of cooperation, understanding and prosperity in South Asia," he stressed.

He said that China today is the flag-bearer of peace, development and cooperation. The principle of "peaceful development" at the core of China's foreign policy is inspiring and worthy of emulation.

He said that Sichuan is one of the vital economic and cultural centres of China and, as the centre of Ghana's Western development strategy, occupies an important position in efforts to further solidifying the strong friendship.

He informed the students about the desire to establish a 'Pakistan Study Centre' in the University to serve as a repository of knowledge on Pakistan and play its due role in strengthening people-to-people contacts.

Shaukat also had an interactive question-answer session and responded to queries of inquisitive students. He also witnessed the signing of the agreement between Punjab University and Sichuan University, and inaugurated 'Pakistan Study Centre'.

University's President Heping Xie and Vice Governor of Sichuan province Huang Xiaoxiang thanked the Prime Minister for his visit and said that it would further strengthen Pak-China friendly relations.

Earlier, Prime Minister Shaukat Aziz invited the business community of China and of Sichuan province to invest in Pakistan and avail the business-friendly policies offered to foreign investors. He said that FTA provides attractive incentives to the traders to do business with each other country.

The Prime Minister pointed out that there were many entrepreneurs from Sichuan province already active in Pakistan and, as a result of the Joint Investment Company, more investment opportunities would be available for them.

http://www.brecorder.com/index.php?id=553463&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Pakistan and China to broaden strategic economic engagement

BEIJING (April 21 2007): Pakistan and China expressing determination to further elevate their all-weather friendship and strategic partnership, have decided to further deepen and broaden the strategic economic engagement for achieving common development and welfare of their people.

In a joint statement issued at the conclusion of Prime Minister Shaukat Aziz's official visit to China from April 16 to 20 at the invitation of Premier Wen Jiabao, both sides reiterated that the time honoured and traditional friendship between China and Pakistan, is a model of friendly co-existence between developing countries and between neighbouring countries.

Official talks were held with Premier Wen Jiabao. Prime Minister Aziz also met with President Hu Jintao and other state leaders. He also visited Chengdu and inaugurated new Consulate General of Pakistan and Pakistan Study Centers in Peking University and Sichuan University. He had a wide ranging interaction with Chinese corporations and financial institutions.

Talks between the Prime Minister of Pakistan and the Chinese State leaders were characterised by great warmth and friendship. Both were proud of their all weather friendship and all dimensional co-operation.

China considers Pakistan as a good neighbour, good friend, good partner and good brother and views its relations with Pakistan from a strategic and long-term perspective. Friendship with China is the corner stone of Pakistan's Foreign Policy. This time-tested and evergreen friendship is rooted in the hearts of the people of Pakistan. Both sides are determined to further elevate their friendship and strategic partnership.

Pakistan firmly upholds the one China policy and considers Taiwan an inseparable part of the People's Republic of China. China is firmly committed to support Pakistan's efforts to safeguard its sovereignty, territorial integrity and independence, the joint statement said.

In this context, they attached great importance to the 5-year Development Programme on Economic Co-operation, the bilateral FTA, the Joint Investment Company, the Services Sector negotiations and further enhancement of project co-operation, joint ventures, investments and financial and banking sector co-operation.

They attached importance to the early completion of the Joint-Study on China-Pakistan Economic and Trade Co-operation. Both sides agreed to take further effective and pragmatic steps to promote project co-operation under the 5-year development programme on economic co-operation especially in agriculture, manufacturing, automotive, textiles, infrastructure and public works, minerals, energy, IT & telecom services, commerce and education sectors.

Both sides noted with satisfaction the substantive outcome of the 13th session of the Joint Committee on Economic, Trade, and Scientific and Technical co-operation, held in Beijing on April 9, 2007.

They welcomed the signing of the Projects Implementation Regulation for the 5-year Development Programme on Economic Co-operation, which is another major step to promote wider, deeper and higher level China-Pakistan trade and economic co-operation with a view to achieving the goal of mutual benefits, win-win and common development.

Both sides agreed to develop an over-arching framework for different forms of project financing. The two sides will actively facilitate co-operation between the financial institutions of both countries and make effective use of the capital markets of the two countries.

Both sides agreed to hold regular meeting of the Economic Co-operation Group for effective follow-up and implementation of the Five-year Plan.

According to the joint statement, Chinese corporations and financial institutions would be encouraged to participate in the development of hydro-power projects in Pakistan and the Pakistan side would provide detailed information on the concerned projects.The two sides greatly valued the bilateral co-operation in investment and agreed to launch the Pakistan-China Joint Investment Company in July, 2007. It was decided to establish working links between the China Investment Promotion Agency and Pakistan Board of Investment.

It was also agreed to enhance project co-operation in the energy and minerals sectors

Both sides welcomed the commencement of negotiations on trade in services and resolved to speed up the process of negotiations. The FTA on goods will be operationalised on July 1, 2007. It was also agreed to promote balanced growth of trade in an effort to achieve the trade target of $15 billion by 2010. It was agreed to establish electronic data interchange (EDI) system to facilitate the development of trade.

To deepen and broaden their strategic economic engagement with a view to promoting common development, a Co-operation and Consultation mechanism was agreed upon between the National Development and Reform Commission of China (NDRC) and the Planting Commission of Pakistan.

To fully leverage the natural economic complementarities between Pakistan and China, the two sides agreed to work towards promoting the development of adjoining regions. Pakistan would provide overland access to Chinese exports and imports through Pakistani ports. It was agreed to enhance "connectivity" by strengthening communication and transportation networks.

Recognising the importance of promoting financial and banking sector co-operation, both sides agreed to encourage their respective financial and banking institutions to establish co-operative links. Chinese banks were invited to establish operations in Pakistan. The two sides welcomed the signing of a Co-operation Agreement between the Shanghai Stock Exchange and Karachi Stock Exchange.

Pakistan side expressed its gratitude to the Chinese government and people for the humanitarian and reconstruction assistance in the wake of the earthquake and welcomed the decision of the Government of China to support reconstruction projects for Muzaffarabad, utilising the $300 million preferential export buyer's credit. It was further agreed to speed up the construction of school and hospital in Mansehra District.

Both sides agreed to facilitate and strengthen private sector co-operation. The Chinese side will encourage and support competent Chinese enterprises to invest in Pakistan particularly in the areas of auto industry, chemical, fertiliser, light industry, textile, home appliances and machinery.

Pakistan and China agreed to enhance their co-operation in the fields of High Technology and agreed to develop close co-operation between relevant institutions in the field of marine and space sciences, promote joint scientific research and development and its applications in industry and agriculture. It was agreed to implement the project for the upgradation and strengthening of seismic network.

Both sides attached great importance to broadening exchanges and co-operation in education and human resource development. China will extend 130 training facilitate to Pakistan in the field of economic management, trade and investment, finance, tourism and contractual projects. China will also help Pakistan set up an Engineering Technology University.

The two sides will take positive consideration of increasing the number of students and visiting scholars in the exchange programmes as conditions permit. They welcomed the establishment of the Pakistan Study Centers at the Peking University and the Sichuan University and collaborative links between the Punjab University and Sichuan University, Chinese Foreign Affairs University and the Foreign Service Academy of Pakistan and the CPC Party School and the National Defence University of Pakistan.

Two sides agreed to further enhance cultural contacts and co-operation. In this context, they welcomed Pakistan's intention to set up an Arts, Film and Cultural Academy in China and establishing of China Friendship Center and Confucius Institute in Pakistan.

With a view to enhancing people-to-people contact and to develop two-way tourism, it was agreed to further develop bilateral tourism co-operation and expand the tourism market in an effort to achieve common development of their tourism industries.

Both sides expressed satisfaction on the close co-operation between their Defence Ministries. The two sides would further enhance exchanges and co-operation in the defence and military fields as well as co-operation between their respective defence industries.

Both sides reiterated their commitment to combat all forms and manifestation of terrorism and to adopt comprehensive measures in this regard signed the Treaty on Mutual Judicial Assistance in Criminal Matters.

Both sides had a commonality of views on international and regional issues. They agreed to work especially at the United Nations and in other multilateral fora to promote global peace, stability and for the just resolution of conflicts and disputes in various parts of the world. The two sides will closely cooperate and co-ordinate on all important regional and international issues, including United Nations Reforms.

During the visit, following documents were signed:

1. Agreement on Mutual Legal Assistance in Criminal Matters between the Government of the People's Republic of China and the Government of the Islamic Republic of Pakistan.

2. Agreement on Economic and Technical Co-operation.

3. Projects Implementation Regulation for the Five-year Development Programme on Economic Co-operation.

4. The Second protocol to the agreement between the two governments for the Avoidance of Double taxation and the prevention of fiscal evasion with respect to taxes on income.

5. MoU for Co-operation between National Development & Reform Commission of the People's Republic of China and Planning Commission of Pakistan.

6. MoU on Co-operation between the National Development & Reform Commission of the People's Republic of China and Ministry of Industries, Production and Social Initiatives of Pakistan.

7. MoU between Ministry of Education of China and the Higher Education Commission of Pakistan on establishment of an Engineering Technology University in Pakistan.

8. Framework agreement between Pakistan Space and Upper Atmosphere Research Commission (Suparco) and National Space Administration (CNSA) on deepening co-operation in space science and technology.

9. MOU between Pakistan Space and Upper Atmosphere Research Commission (Suparco) and China Great Wall Industry.

10. MOU between Shanghai Stock Exchange and Karachi Stock Exchange.

11. MOU for construction of cross border cables system between China and Pakistan.

12. MOU on the establishment of Center for Pakistan Studies, Peking University through the Support of Pakistan Embassy, Beijing.

13. MOU on co-operation between China Foreign Affairs University and Foreign Service Academy of Pakistan.

http://www.brecorder.com/index.php?id=553505&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Pakistan emerging economy: IBR :flag:

ISLAMABAD (April 21 2007): The latest findings from the Grant Thornton International Business Report (IBR) have identified Pakistan, Mexico, Indonesia and Turkey as the next generation of emerging economies set to have significant impacts on the world economy.

These countries may match or even overtake some of the commonly identified BRIC economies (Brazil, Russia, India and China) which are expected to join the global economic powers, a private TV news channel reported.

According to global leader of privately held business services for Grant Thornton International; "Indonesia and Pakistan, with their large populations, have the potential to grow their labour-intensive exports and could capitalise on the process of low-cost production that mainland China has so successfully exploited."

http://www.brecorder.com/index.php?id=553529&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

World Bank releases $45.65 million for land record computerisation

LAHORE (April 21 2007): The World Bank has released a grant of $45.65 million for the first phase of Land Revenue Record Computerisation project. Punjab Minister for Revenue, Relief and Consolidation, Gul Hameed Khan Rokhari said while talking to different delegations in his office here Friday, stated a handout.

The Executive Committee of the National Economic Council (Ecnec) has subsequently approved the first phase of the larger project to computerise land record of 18 districts of Punjab.

Revenue minister said that approximately Rs 6 billion would be spent on the project, adding he said that the Board of Directors of the World Bank has approved the loan for this purpose. He said that necessary arrangements have been finalised to initiate first phase of the project in which land revenue record of 18 districts would be computerised.

http://www.brecorder.com/index.php?id=553581&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Govt aims to lift Pak ranking

KARACHI: Minister of State for Finance Omar Ayub Khan has said that the government aims to take Pakistan from the current position of 91 on the competitiveness ranking list to among top 60.

Addressing the members of Overseas Investors Chamber of Commerce and Industry on Thursday, he said that the private sector should not give up its habit of demanding subsidies and incentive packages and be competitive in the world.

He listed three challenges for Pakistan in its way to be competitive. Firstly, he said that the country needs to improve its infrastructure. Secondly, Pakistan has to secure energy supplies for its industry. Thirdly, the country has to develop a skilled and qualified workforce.

He said that the Competitiveness Support Fund has approved projects to be financed in different sectors including gems and jewellery and pharmaceuticals.

He spoke at length about the government’s second generation economic reforms and the progress made to date.

Earlier, President OICCI Zubyr Soomro said that Pakistan lacked an effective bankruptcy law and proposed that some thinking should be done in this direction.

He also said that the government should identify and select a few promising non-governmental organisations from among hundreds to be funded for running social uplift programmes. That would be an effective way of delivering service to people, he said.

Secretary General OICCI Adnan Afridi said the country needs to improve infrastructure, secure energy supplies, enforce IPR and invest in human resource development in order to be competitive.

http://www.thenews.com.pk/daily_detail.asp?id=52183

 

[Neo]

Exhibitors see $200m orders

LAHORE: Pakistani exhibitors, who participated in the five-day engineering exhibition in Hanover, are optimistic about obtaining orders worth $150-200 million as their regular participation has instilled confidence among importers. Syed Nabeel Hashmi, who has been participating in the exhibition for the last four years, said many Pakistani manufacturers could easily meet the quality requirement of foreign buyers. He said they need to participate in international exhibitions in large numbers as the foreigners do not visit Pakistan due to travel advice from their countries. He said as a result of the coordination developed among the various exhibitors of the world, Pakistan would be able to secure export orders of $150 million to $200 million. The marketing manager of Syed Bhais was more specific as he disclosed that the company has got orders worth $25 million from Poland.

http://www.thenews.com.pk/daily_detail.asp?id=52195

 

[Neo]

April 21, 2007
Fate of mega projects hangs in the balance

KARACHI, April 20: Has anyone in the country taken care to keep a track on the implementation phases and flow of funds for the mega development projects in different parts of Pakistan? How many of these have been completed and at what cost — at original cost or at inflated cost.

What are the economic benefits and income generation from these projects? A multi billion dollar question is what will be the fate of incomplete projects, if people of Pakistan decide to vote out this government and bring a new one in late 2007 or early 2008?

For more than four years, both the president and the prime minister have been visiting at regular intervals various places in the country, more, particularly Balochistan, either to inaugurate or just review the pace of work of a “mega project”.

The two top Pakistani leaders signed countless agreements, contracts, memoranda of understandings with the governments and private institutions in foreign countries during last four years.

In May 2005, the government spelt out an investment plan of $41 billion for mega projects at the Pakistan Development Forum. Formerly known as World Bank’s Aid to Pakistan Consortium, the rechristened PDF meeting in May 2005 witnessed pledge of several billion dollars by the participants.

Pakistan indicated investment requirement from 2005 to 2008 and beyond. These included $33 billion for the water sector till 2025. A sum of $12 billion was the requirement for the five years - 2006 to 2011. How much of these funds have come and what are the projects? No answer was ever given of this question.

Within days after the PDF in May 2005, the international media reported that donors were demanding strong guarantees and explanation as to how the Pakistan government would pay the loans. “For next 10 years, the donors want sustainable economic growth rate at 6 to 8 per cent each year, narrowing down of trade and current account deficit, stabilisation of inflation and lessening of growing economic disparities,” an official was quoted.

Thanks to the expansion and growth of services sector in last four years, Pakistan has managed to maintain a 6.5 per cent annual growth rate but the trade deficit, the current account imbalance and inflation are showing no signs of respite. The poverty rate might have come down or not but social and economic disparities are becoming more and more pronounced with every passing day.

It was in May 2005 that Pakistan indicated investment requirement of $10 to 17 billion to increase electric power generation by 6,000 megawatts in next five years. The electric power supply in summer 2007 is worse than 2005.

About seven or eight weeks ago Babar Ghouri, the federal minister from Karachi wanted the postponement of general elections till such time all these projects are completed. But no one in the government offered any time schedule and list of mega projects.

While the ministers and leaders of public opinion were giving their views on this proposal, when the events, triggered by a March 9 handout of the government that declared Chief Justice of Pakistan non functional, overtook abruptly the debate and an altogether new situation emerged in which mega projects have been pushed behind some smoke screen.

A 1,400 feet high “Port Tower Complex” project to be built with active collaboration of a Qatar concern at a cost of Rs20 billion (more than $310 million) was a gift from Babar Ghouri for the people of Karachi. It was to be amongst ten tallest buildings of the world.

The project included an Expo centre, low and high residential complexes, community centre, club house, shopping galleries. Does anyone remember when was ground breaking ceremony or foundation stone was laid. The total 90 acres of land for the project was to be reclaimed from the sea. Did anyone take into consideration the environmental hazards from such a project?

A lot has been said and written on the environmental hazards and sufferings of people living in Sindh delta region because of two mega projects — Left Bank Outfall Drainage and the Right Bank Outfall Drainage (LBOD and RBOD).

The two institutions — World Bank and Asian Development Bank - have been criticised for designing bad projects, which have caused miseries to the million of people.

These days, the cities and villages in Pakistan are plunged into darkness after sunset, because the public sector Wapda and the privatised KESC are competing with each other to keep light away from the people. A Rs13 billion investment plan was underway in KESC to upgrade transmission and distribution facilities. What happened to that programme?

The Sindh Finance Minister in his last budget speech in June 2006 announced a development investment of Rs117 billion during last three years. The Sindh government in its rejoinder to a World Bank report on provincial economy gave a figure of Rs133 billion development investments in last four years.

It was in last two to three years that people in Hyderabad and Karachi died of drinking contaminated water. The summer rains literally inundated Karachi and lack of drainage facilities in Hyderabad and other parts made the life of hundreds and thousands of people miserable.

The rural Sindh still reports the lowest enrolment of children in primary schools. The basic health care facilities in many parts of rural Sindh are still missing.

At present there are 10 federal funded projects in Sindh with a total outlay of over Rs103 billion. In last four years, only a sum of Rs28.8 billion has been released from Islamabad. Delay in release of committed funds cause a run over expense, which pushes up the cost.

The much publicised Lyari Expressway was originally designed to cost Rs2.87 billion. More than Rs4 billion has been spent on this project which was expected to complete in the year 2006. It is still incomplete and require more than Rs700 million.

Drainage is the main problem caused by construction of barrages and dams on upper riparian. Slight rains inundate cities and villages. The RBOD was originally designed with an investment of Rs14 billion. It will now cost more than Rs29 billion and only Rs6 billion were released so far. Similarly for revamping drainage and irrigation in Sindh, the federal government released only Rs3.85 billion against an indicated cost of Rs12.96 billion.

Tameer-e-Karachi, Hyderabad and many other mega projects are trailing behind their schedule and showing a rising run over cost and aggravating problems in cities and villages.

http://www.dawn.com/2007/04/21/ebr1.htm

 

[Neo]

April 21, 2007
Pakistan has low export potential for China

ISLAMABAD, April 20: Pakistan has the lower potential in the Asia Pacific region for exploiting the increasing export opportunities to China despite the fact that the two countries have a preferential trade arrangement for the last couple of years, says a UN report.

The report came at a time, when the two countries are ready to implement a comprehensive free trade agreement (FTA) covering trade in goods and investment to be effective from July 1, 2007. The services sector, which is being under negotiation, will also be made part of the agreement.

According to the UN report on “Economic and Social Survey of Asia and the Pacific-2007” released recently, the high and middle-income regional economies have great opportunities to export to China.

This increase in potential for export is measured by a complementarity’s index that shows the overlap between a country’s export profile and China’s import profile. A high index level indicates a higher potential for trade.

The highest overlap is for Japan, the Republic of Korea and Singapore, followed by the middle-income ASEAN economies of Thailand and Malaysia. The lowest overlap is for Mongolia and Pakistan, followed by Indonesia.

Pakistan was the second country after Chile to sign a FTA with China. No other countries of the world have even so far thought about to have an FTA with China because of the cheap labour and high subsidised market of China.

Analysts described the FTA with China a political decision as it did not involve any economics because Pakistani products are not capable to compete with those coming from other countries of the region or with the local Chinese products.

According to the report, China has emerged as a major importer of natural resource related and agriculture products. Major resource exporters include Indonesia, Mongolia and the Russian. Agriculture is a major export for countries such as Thailand, and Indonesia as well as for many low income countries such as Pakistan in the region.

China is still not specialised in sophisticated hi-tech products, for which the high income economies of Japan, Korea and Singapore are the largest exporters and are, therefore, best placed to benefit.

According to the report Pakistan’s exports and imports continued to grow at double digits rates. The trade deficit widened to a record $8.4 billion in 2006, with 45 per cent of the increase due to a higher import bill for crude oil and petroleum products.Imports of raw material and machinery also increased sharply. Even so, the current account continued to benefit from large remittances from the 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.

http://www.dawn.com/2007/04/21/ebr6.htm

 

[Neo]

Saturday, April 21, 2007

Indus Refinery to invest $750 million

ISLAMABAD: Indus Refinery Limited Chairman Mohammad Sohail Shamsi Friday said that the Indus Refinery is planning to invest $750 million in oil sector of the country.

Talking to a private TV channel, he said production would be started in March 2009 and it will produce 4.5 million tonnes LPG.

He said that "we are the first one who came into the field of production and producing 11 million tonnes and no one came before us, adding, it would encourage investment in the country".

While discussing the ongoing projects, Sohail Shamsi said that besides oil refinery project, we are working on cement plant, methanol plant and a construction project. As far as the construction project is concerned, it will be started in a couple of months and methanol and cement project would take one year to start, he added.

http://www.dailytimes.com.pk/default.asp?page=2007\04\21\story_21-4-2007_pg5_11

 

[Neo]

Saturday, April 21, 2007

‘Pakistan-China friendship a model of coexistence’

BEIJING: The time-honoured friendship between China and Pakistan is a model of friendly coexistence between developing and neighbouring countries, a joint statement released by Pakistan and China on Friday stated.

The statement was issued at the conclusion of Prime Minister Shaukat Aziz’s official visit to China. During the visit, Aziz met with Premier Wen Jiabao and President Hu Jintao. He also visited Chengdu. China considers Pakistan a good friend, the statement continued. Friendship with China is the cornerstone of Pakistan’s foreign policy and both sides are determined to further elevate their friendship and strategic partnership. Great importance was attached to the five-year ‘Development Program on Economic Cooperation’, the bilateral FTA and the Joint Investment Company.

Both sides agreed to develop an over-arching framework for different forms of project financing. The two sides will actively facilitate cooperation between the financial institutions of both countries and make effective use of the capital markets of both.

According to the joint statement, Chinese corporations and financial institutions will be encouraged to participate in the development of hydropower projects in Pakistan. Working links between the China Investment Promotion Agency and the Pakistan Board of Investment will also be established. Both sides reiterated their commitment to combat all forms and manifestations of terrorism and shared views on international and regional issues.

Agreements on mutual legal assistance in criminal matters between the governments and the ‘Projects Implementation Regulation’ for the five-year development programme on economic cooperation were signed.

Aziz signed the second protocol to the agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income between the governments of China and Pakistan. An MoU between the National Development and Reform Commission of China and the Planning Commission of Pakistan was also signed as well as a MoU on cooperation between the National Development and Reform Commission of China and the Ministry of Industries, Production and Social Initiatives of Pakistan.

A MoU was also signed between the Chinese Ministry of Education and the Pakistani Higher Education Commission for the establishment of an engineering university in Pakistan. The Pakistan Space and Upper Atmosphere Research Commission also signed agreements with the China National Space Administration and the China Great Wall industry for deepening cooperation in space science and technology. The Shanghai Stock Exchange and the Karachi Stock Exchange also signed a MoU along with the governments signing one for cross-border cables construction.

Finally a MoU was signed for the establishment of the Centre for Pakistan Studies in Peking University and a MoU on cooperation between the Chinese Foreign Affairs University and the Foreign Service Academy of Pakistan was also signed.

http://www.dailytimes.com.pk/default.asp?page=2007\04\21\story_21-4-2007_pg7_22

 

[Neo]

Saturday, April 21, 2007

$1.288 billion returned in eight months

ISLAMABAD: Pakistan has repaid $1.288 billion in foreign debts from July 2006 to February 2007, which included $483 million in interest paid back to 35 multilateral and bilateral creditors, according to documents made available by federal government officials to Daily Times.

The total foreign debts due against Pakistan stood at $36.907 billion on December 31, 2006. During these eight months, the World Bank was paid back a total amount of $240.46 million including a $171 million principal amount and a $69.87 million mark-up.

A sum of $187.37 million was returned to the Asian Development Bank that included $144.14 million in original loans and a $43.22 million mark-up. The European Investment Bank was paid back $2.88 million – $0.90 million principal amount and $1.99 million interest.

Pakistan also returned $139.55 million to private bondholders of which $24.92 million was the principal amount and $114.63 million was the mark-up. Commercial banks were paid back $29.26 million of which $21 million was the principal amount and $8.26 million the interest. The government retired $120.02 million of International Development Assistance including a $82.98 million principal and a $37.05 million mark-up.

The Islamic Development Bank received $189 million – a $175.19 million principal amount and $14.53 million mark-up. China was paid back $64.46 million – a $52.16 million principal amount and $12.30 million interest.

France and Germany were also paid back some debt owed, with France receiving $58.33 million, of which $14.60 million was the principal amount and $43.74 million the mark-up, while Germany was paid $23.43 million – a $7.82 million principal amount and $15.61 million interest.

Japan was paid back $77.90 million – a $30.13 million principal amount and $47.77 million mark-up, South Korea got $47.67 million – a $28.18 million principal amount and $19.49 million interest and the United States was paid back $53.19 million – a $20.38 million principal amount and $32.81 million mark-up.

In certain cases the interest on debts were more than double those of the principal amount paid back during the eight months as Austria was paid $2.46 million of which the principal amount was $530,000 and the mark-up was $1.93 million.

Canada was paid back $3.27 million, comprising $470,000 of the original amount and $2.80 million in interest, Finland received $210,000 with a $300,000 principal amount and $180,000 mark-up and Italy got $540,000– $130,000 loan and $410,000 mark-up.

http://www.dailytimes.com.pk/default.asp?page=2007\04\21\story_21-4-2007_pg7_9

 

[Neo]

Saturday, April 21, 2007

PM wants Pak access to civil N-technology

* Says Iran pipeline could encourage peace between India and Pakistan

CHENGDU: Prime Minister Shaukat Aziz on Friday called for a level playing field for access to civilian nuclear technology and urged members of the Nuclear Suppliers Group to adopt an objective criteria-based approach to end discrimination.

Delivering a talk on ‘Pakistan’s perspective on Contemporary Issues of Peace, Security and Development’ at the Sichuan University, the PM said, “Pakistan favours a non-discriminatory, criteria-based approach that will offer equal opportunities to both Pakistan and India for access to civilian nuclear technology by meeting the relevant benchmarks.”

Discussing terrorism, the PM said it was the most formidable threat to the world. He said, “Pakistan’s resolve to fight terrorism is firm and consistent with our own national interests. We believe an effective counter-terrorism strategy must have military, political, economic and social dimensions.” He said sustainable success against terrorism required recognising and addressing root causes like poverty, deprivation and under-development that resulted in desperation and hopelessness.

Concerning the Pakistan-India dispute, Aziz said Pakistan was pursuing the peace process with renewed vigour for settlement of all disputes including Kashmir, restraint and security balance in South Asia and cooperation for the economic development of the region.

Aziz termed friendship with China as the cornerstone of Pakistan’s foreign policy. He said Pakistan firmly believed in the ‘One China’ policy and recognised the People’s Republic of China as the sole legal government representing the whole of China. In a question-answer session with students, the PM said Sino-Pak relations could be further strengthened through economic ties.

Speaking to the Associated Press later that day at the Boao resort, Aziz said the pipeline that would supply natural gas from Iran to South Asia was critical to Pakistan’s economic growth and political stability. He said the project could help strengthen rapprochement between India and Pakistan. Aziz said, “Whenever you create situations where you create linkages and interdependencies, it helps develop the overall atmosphere between two countries,” he added.

The PM said that with Pakistan’s economic growth at about 7 percent annually, its energy needs were growing at 10-12 percent a year, far outstripping domestic gas supplies.

http://www.dailytimes.com.pk/default.asp?page=2007\04\21\story_21-4-2007_pg1_8

 

[Interceptor]

450MW power plant to benefit factories


By Our Correspondent

FAISALABAD, April 20: A new power plant having a capacity of 450 megawatts will soon be installed in the district to help avert power outages.

Faisalabad Electricity Supply Company (Fesco) chief executive Ahmed Saeed said this while talking to representatives of industrial units here on Friday.

Sources privy to the meeting said that industrialists gave vent to their disquiet over unscheduled load shedding.

They also asked the authorities concerned to set a timetable for power suspension because the industry, in most of the cases, had to suffer an irreparable loss. Besides a heavy monetary loss, they said the persistent unscheduled load shedding might leave countless people jobless.

The Fesco chief, sources said, apprised visitors of the arrangements being made by the company and urged them to follow the schedule of staggering holidays prepared with the consultation of industrialists.

He said the Fesco had been facing problems because most of industrialists were defying the schedule.

Mr Saeed said that Fesco was also well aware about the power crisis and problems faced by industrialists as a result.

He said the government’s plan to install a power plant with public-private partnership near steam power station would help overcome the energy crisis in future.

In addition, he said the government was also considering setting up a power plant of 500 megawatts to fulfill the need of the M-3 Industrial Estate.

About the purchase of surplus electricity from the private sector, he said that Fesco had reached an agreement with the two companies.

Putting forward various suggestions to overcome the power crisis, industrialists said that Fesco should make agreements with private entrepreneurs for the purchase of electricity.

Those who met the Fesco chief executive include, All Pakistan Textile Processing Mills Association regional chairman Mian Aftab Ahmed, secretary Muhammad Ashraf, All Pakistan Sizing Industry Association chairman Shafiq Ahmed, Shahid Ahmed and Amjed Saeed.

http://www.dawn.com/2007/04/21/nat11.htm


Its about time something happened.

 

[Neo]

Pakistan PM Eyes 7%-8% Inflation In 2007; Keeps GDP Forecast

BOAO, China -(Dow Jones)- Pakistan Prime Minister Shaukat Aziz said Saturday the inflation rate in his country will likely slow to between 7% and 8% this year.

"But we feel we should do more, so we tighten monetary policy. Interest rates are up a bit, and that is having the desired effect," he said.

Aziz also reiterated Pakistan's economy will likely grow 7% to 8% in 2007, maintaining the country's steady economic expansion over the past few years.

He was speaking at the Boao Forum for Asia, a gathering of government and business leaders on the southern Chinese island of Hainan.

http://www.nasdaq.com/aspxcontent/N...CQDJON200704210923DOWJONESDJONLINE000398.htm&