Pakistan Economy - News & Updates - Archive

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Pakistan: Mango exports may jump by 30%

The exports of mango ñ the king of fruits ñ are expected to jump by 25 to 30 per cent on the back of a bumper crop in the current season. At the season’s onset, the exporters have dispatched around 500 tonnes of some early-grown varieties of mango to the United Arab Emirates as fresh harvest has started reaching the local market.

In fiscal year 2005-06, local exporters had shipped only 0.088 million tonnes of mangoes of different varieties to various destinations, including the European Union, US and UAE due to short production caused by multiple reasons.

Compared to this, a year before the country had produced huge quantity of mangoes leading to good exports at 0.110 million tonnes.

This year, the government has changed packaging criteria for mango exports as exporters have been allowed to ship the fruit in one to 10 kilogramme packets. Earlier, they could export the fruit in 1.25 to 1.5kg packets, which increased the packaging cost.

Fruit exporters have welcomed the latest decision, which could save additional cost earlier incurred on small packages.

However, a bad news for exporters is that the airlines have increased freight charges to Rs92 per kg for mango shipment to Europe and US from Rs85 last year.

“The Ministry of Food, Agriculture and Livestock (MINFAL) and Trade Development Authority of Pakistan (TDAP) have not announced freight subsidy on mango exports while last year the ministry had given 15 per cent subsidy per kg. “TDAP has also withdrawn 25 per cent freight subsidy on mango exports on the pretext of duplication, pushing up the cost for exporters,” Chairman Pakistan Fruits and Vegetable Exporters Association Abdul Wahid Memon said.

He dismissed the reason of freight subsidy duplication, saying MINFAL had granted 15 per cent subsidy only for one year, which was not renewed next year.

The exporters allege that despite allocation of Rs250 million for freight subsidy, the ministry did not even release Rs160 million under that head last year.

Exporters are also facing difficulties in monitoring and subsequent planning of fruit exports as Pakistan Revenue Automation Ltd does not release fresh fruit export data on time and the exporters have to rely on data collected by Federal Bureau of Statistics (FBS).

“Despite the assurance given by Chairman CBR Abdullah Yousuf, a mechanism could not be evolved by PRAL to provide data to the exporters every two weeks, which is imperative for the growth of exports,” Abdul Wahid Memon said.
http://www.freshplaza.com/news_detail.asp?id=1536

 

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Socio-economic uplift: Chinese firms given powers to reject projects

ISLAMABAD (May 17 2007): Pakistan has given discretionary powers to Chinese companies to select or reject any project proposed under five-year development programme to be jointly implemented for socio-economic uplift of Pakistan, well-placed sources told Business Recorder here on Wednesday.

The Economic Affairs Division (EAD) has issued project implementation regulations for the development programme, according to which Beijing would finance 61 mega projects in different sectors. The operating procedures were signed during the recent visit of Prime Minister Shaukat Aziz to China, but details had not been made available by the government.

According to the agreed procedure, Pakistan would propose the projects along with pre-feasibility or feasibility study to China-Pakistan Economic Co-operation Group (ECG), which would select projects through or periodic technical committee meeting review.

Projects would include those already enlisted under the development program or included subsequently, the sources added. The selection criteria of the ECG says the group would transfer projects with feasibility study to China Chamber of Commerce for Import & Export of Machinery & Electronic Products and China International Contractors Association as facilitators would be responsible to short list the enterprises that could undertake the projects.

The list would be submitted to both the governments and would simultaneously place the shortlist on the relevant websites. For the projects without feasibility study, ECG would ask Pakistan side to do the needful.

Upon the request by the Pakistan, Chinese side would recommend the competent Chinese consulting companies to carry out the feasibility study whereas Pakistan side would select Consultant Company and have the feasibility prepared. The cost of feasibility study will be borne by the project authorities.

To identify enterprises for project implementation, the facilitators would shortlist the related Chinese enterprises that would be qualified to participate in bidding process keeping in view the feasibility studies and company qualifications and inform Pakistani side, the sources continued.

Pakistan side would choose the enterprise from the list for project implementation through a bidding process and inform the facilitators accordingly. Upon request, Chinese side would render assistance to the Pakistan during the bidding process.

The facilitators would recommend the feasibility study reports and the list of enterprises finalised to implement the projects to relevant Chinese financial institutions for project evaluation, which would inform about the evaluation results to the facilitators.

During regular meetings and technical committee meetings, ECG would select and delete projects according to the following principles:

i) The projects, which qualify the evaluations by relevant Chinese financial institution, would be added to the development programme.

ii) The projects enlisted in the development programme, which the related Chinese enterprises decide to quit or not to participate in, would be deleted from the list.

The new list of projects in the form of ECG agreed minutes would be deemed as the supplementary document of the development programme. The sources further said that relevant Chinese financial institutions would facilitate the financing of the projects evaluated by them through commercial loan, preferential loan, mixed loans, etc and the financial terms of such loans would be mutually agreed between the two sides.

OTHER PROJECTS The Pakistan side would stipulate the implementation of projects without Chinese financial institutions' support.

These regulations would apply to both public and private sector projects, requiring Chinese financial support, the projects would be processed and approved by the domestic authorities where so required, under the rules and laws of both countries, in an expeditious manner. The sources said that these regulations could be amended on the request of either side through mutual discussion and agreement.

http://www.brecorder.com/index.php?id=565217&currPageNo=1&query=&search=&term=&supDate=

 

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Strike, violence: textile industry misses orders worth $70 million

KARACHI (May 17 2007): The country's export-oriented textile industry has missed the potential foreign orders worth at least 70 million dollars due to three days' violence, riots and shutter down strike in the industrial hub of the country, trade sources Business Recorder.

Last week on May 12, the ruling and the opposition parties staged rallies on the arrival of Chief Justice of Pakistan Iftikhar Muhammad Choudhry and Karachi was made to bleed. The violence of the worst kind during the rallies claimed about 45 lives and left over 100 injured, followed by riots and shutter down strikes.

Trade and commercial activities along with export process came to a standstill, besides industrial production in all major industrial areas. Trade sources said that not a single export consignment reached the ports during the three days from May 12 to May 14.

Export consignments to USA, Europe and other countries could not be shipped on time, which inflicted worth millions of dollars due to expiry of 'Letter of Credit' (LCs), while some export orders have been cancelled for delay in shipments, they added.

It is estimated that textile exporters have lost approximately $70 million export orders during the same period in the shape of expiry of LCs and cancellation of shipment date, they said. "We have contacted with our foreign buyers and trying to resettle the export orders and to issue new LCs," they added.

Majeed Aziz president KCCI also confirmed that country has lost million dollars textile export orders in the wake of turmoil in the metropolis. He said that local exporters are striving hard to extend the export dates and in this connection talk with them are underway with foreign buyers.

"It is expected that some export orders would be restored in the future but it needs detail negotiation with foreign buyers and assurance of timely delivery in future," he added.

Naqi Bari, chairman Pakistan Hosiery Manufacturers and Exporters Association (PHMA) said that hosiery exporters have lost around $15 million export orders due to deteriorating law and order situation in the city since May 12. He said that the most of the industries are located in Karachi, and since Friday not a single consignment could reach the ports.

"Our industrialists were not able to even go to their factories and in this situation how was it possible for us to ship our consignments," he added. Readymade garment exporters claimed that they have suffered $20 million losses export orders due to law and order situation in the economic hub of the country.

"We were trying to achieve the readymade garment export target of $3.4 billion but three days, law and order situation in Karachi has badly hit the export process," said Aijaz Khokhar chairman Pakistan readymade garments manufacturers and exporters association.

He said that textile export target is already in jeopardy due to government policies and now the law and order situation is the chief factor behind export regression. Some 50 percent industries of readymade garments are in the Karachi, which completely failed to ship their export consignments in that three days.

"Our foreign buyers are reluctant to visit Pakistan after the last week incident and now we are bound to settle our business deals in Dubai," he added.

Farooq Bhura a leading bed-wear exporter said he failed to dispatch his export consignments worth $0.35 million to Europe due to political activities and chaos in the city. "These shipments were due on Saturday but due to unavailability of labour and transport, my export consignments could not reach the ports, as result, LCs have expired,' he added. The exporters have failed to fulfil their export commitments and it is estimated that around $10-12 million export orders have been cancelled or delayed for a long time.

Exporters said that other textile exports including towel, raw cotton, Art, Silk, Synthetic textile and Knitwear exports also have been badly hit due to the Karachi violence. They have demand that the government should follow other countries' example and should make exigency plans for exports that despite violence export consignments can be shipped.

"We are alone in this crisis and no any government official has contacted to resolve these matters," they added. They said that exporters would bear 9 times high cost if they dispatch their export consignments via airbus, which is not possible for them.

http://www.brecorder.com/index.php?id=565195&currPageNo=1&query=&search=&term=&supDate=

 

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Trade cooperation with Pakistan growing: UK High Commissioner

LAHORE (May 17 2007): British High Commissioner to Pakistan Robert Brinkly and his wife called on Punjab Chief Minister, Chaudhry Pervaiz Elahi at Chief Minister's Secretariat, here on Wednesday. First Secretary of British High Commission James Revill was also present on the occasion.

Talking to the distinguished guests, the Chief Minister said that there were historic and friendly relations between Pakistan and Britain, economic and trade co-operation between the two countries was growing. He appreciated co-operation of Britain towards strengthening of health sector in Punjab.

He expressed gratitude for the assistance extended by Britain for the rehabilitation of earthquake victims in Pakistan. He said that Punjab government was implementing a massive programme for the strengthening of health sector and provision of modern health facilities to the masses.

He said that rural and basic health centers were being upgraded and availability of doctors, medical equipment and medicines were being ensured in these centers. He averred that emergency service had been modernised and free treatment facilities were being provided in emergency wards of all hospitals.

The CM said that in addition to Lahore, new hospitals were also being set up in other cities of the province while a huge amount was being spent on the provision of modern health facilities to the people of Southern Punjab.

He said that special attention was being paid to the training of nurses for their capacity building and centers for training of nurses were being set up throughout the province.

Chaudhry Pervaiz Elahi said that promotion of education could help in ensuring peace, security and tolerance as well as poverty alleviation and achievement of desired results of economic development programme. Therefore, he said, government was paying special attention to the uplift of education sector and through an effective system of monitoring, missing facilities were being provided in 64 thousand educational institutions of the province under Education Sector Reforms Programme.

He said that distribution of free textbooks, stipend to girl students and provision of missing facilities in schools had resulted in increase in the rate of enrolment and lakhs of new students who had have got admission in schools under educational programme of the government. He said that required standard of construction and timely completion of development projects in education, health and other sectors was being ensured through an effective system of monitoring.

He said that international financial and economic institutions were making huge investment in Punjab due to investment-friendly atmosphere prevailing in the province, which had helped in overcoming unemployment problem.

The Chief Minister further said that a strong economy, poverty alleviation and development of education sector could help in elimination of extremism. He said that strengthening of education sector was essential for economic development, establishment of peace and promotion of progressive trends in the society.

He deplored the incidents of terrorism and extremism and said that these were aimed at creating political and economic instability. The CM warned that elements involved in such incidents would never succeed in the achievement of their nefarious designs.

British High Commissioner Robert Brinkly lauded effective implementation of educational programme in Punjab and observed that it had shown positive results. He said that it was his first official visit to Lahore and he was deeply impressed with the cultural heritage of the city. He said that trade and economic relations between Pakistan and Britain were strengthening.

http://www.brecorder.com/index.php?id=565242&currPageNo=1&query=&search=&term=&supDate=

 

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'Energy Plan offers opportunities to investors'

KARACHI (May 17 2007): Pakistan's indigenous gas resources are insufficient and unlikely to meet the increasing demand of gas beyond 2009-10 with demand projections for gas in the energy plan indicating an increase in the requirement of natural gas from 1.5 tcf/year currently to 4.5 tcf/year in 2025.

In this regard, Pakistan has formulated a comprehensive 25-year Energy Plan outlining sectoral demand that presents a window of opportunities to global investors.

This was stated by SSGC Managing Director Munawar Baseer Ahmad, while inaugurating the fifth Pakistan Oil and Gas Conference (Pogee) as its chief guest. Baseer was nominated by the Ministry of Petroleum and Natural Resources to represent the Ministry for the inaugurating the exhibition as its chief guest.

Munawar Baseer Ahmad said that keeping in view the present gas demand-supply and future requirements, the import of gas has become a necessity to cover the demand-supply gap beyond 2010. Gas import options range from developing LNG terminals to transitional pipelines, he explained.

He said Pakistan by way of being uniquely placed geographically is an ideal point of convergence for major transitional oil and gas pipelines in the region.

Pakistan's growing demand for energy, lends support to the idea for it to assume the role of an effective and cost-efficient energy hub for India, China and other landlocked Central Asian Republics (CARs), which are home to 50 percent of the world's gas reserves and 70 percent of the oil reserves, he said.

Cumulatively, Asia's demand for energy will exceed more than that of Europe and the USA combined and that is a point to ponder for the conference delegates, he said.

He said that with the development of the Gwadar port, the concept of energy corridor will gain further strength and the budding port city will transform into the most convenient location for presenting upstream and downstream opportunities for foreign investors in the form of refineries, LNG plants and mega-storage facilities for sectoral products.

Munawar Baseer Ahmad also dilated on Pakistan's first LNG project, known as Pakistan `Mashal' LNG project for which the Government of Pakistan has appointed the SSGC as the facilitator/project proponent. The LNG-1 project has been conceived to supplement Pakistan's natural gas supply in 2011 by 500 mmcfd equivalent to 3.5 mtpa LNG which is planned to be followed by LNG-II with an additional capacity of 3.5 mpta, he explained. The LNG sector opens numerous opportunities for foreign investors interested in setting up terminals and laying pipelines, he said.

There is a world of opportunity for equipment suppliers, engineering consultants, pipeline companies for the Iran, Pakistan and India (IPI) pipeline which without India envisages an investment of $1 to $1.5 billion and if India decides to join it there would be a further investment of $500 million, he observed.

He said the government of Pakistan has provided 1,000 acres of land free of cost as an incentive for setting up a $3 billion coastal refinery project, which is a joint collaboration of Parco and Abu Dhabi joint venture partners.

Munawar Baseer Ahmad said the SSGC is proceeding ahead with its five-year strategic Rs 45 billion rolling plan laid out in fiscal 2004-05 for developing both gas distribution infrastructure and ensuring an adequate transmission network in Sindh and Balochistan.

Earlier, in his inaugural address, Asim Siddiqui, chairman and managing director, Pegasus Consultancy, said that Pogee, now in its fifth year, has become the perfect interactive platform in bringing together the leading suppliers of machinery and technology for this emerging regional energy industry. Later, he presented a memento to the chief guest after which Munawar Baseer Ahmad visited the entire stalls set up in the four halls of the Expo Centre.

http://www.brecorder.com/index.php?id=565320&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Pak-US investment treaty in doldrums

By Israr Khan

ISLAMABAD: The proposed Pak-US Bilateral Investment Treaty (BIT) is in the doldrums as the two sides have differences in certain areas and are showing no flexibility in their stances.

A number of differences persist on issues of considerable importance to Islamabad. The United States wants Pakistan to include in the draft treaty some aspects which the latter is not ready to accept. As a result, both have failed to strike a compromise formula.

The Bush administration is asking Islamabad to accept its version on major issues, including reinvestment, arbitration mechanism, intellectual property rights and grant of MFN status.

Negotiations on Pak-US bilateral investment treaty, as a stepping stone towards an FTA, have been quite problematic.

During President George Bush’s visit to Pakistan in March 2006, it was anticipated that the BIT would be sealed, but it did not, and to-date lies in cold storage.

Following this visit, two ministerial-level meetings took place: United States Trade Representative (USTR) Susan Schwab met Pakistan’s Commerce Minister Humayun Akhtar Khan in August 2006, and again in Cairns (Australia) in September 2006 in this regard.

Then in October 2006, Assistant United States Trade Representative (AUSTR) Douglas A. Hartwick co-chaired the second meeting of the US-Pakistan Trade and Investment Framework Agreement (TIFA) Council in Islamabad with Pakistan’s Commerce Secretary Syed Asif Shah.

It focused on a number of issues, including Reconstruction Opportunity Zones (ROZs), Generalized System of Preferences (GSP), textiles, workers rights, services, facilitation of Pakistan-Afghan Transit Trade and agriculture.

But no negotiations have taken place ever since, nor an exchange of delegations occurred. Progress on the treaty is at a standstill, a well-placed source told The News on Wednesday.

The US wants hard conditionalities to be attached to the treaty, which effectively means it has no intention of entering into a deal, an official remarked.

Under Pakistan’s liberal investment policy, all economic sectors are open to foreign direct investment, 100 per cent foreign equity is allowed, with foreign investment fully protected in the country.

Conditionalities under the treaty were not in the best interest of Pakistan, however; Islamabad wants a treaty which promotes its interests.

A BIT is set to open the door for Free Trade Agreement (FTA) between the two countries. It promises to enhance trade volume, generate more employment and spur business activities.

Since restructuring its investment ties with the entire world, the United States has so far inked BIT with only one state — Paraguay (a banana state).

Despite the fact Pakistan became a US ally in 2001 in its so-called war on terror, it has failed to attract sizeable investment from the US. It could not even gain easy access to the US markets. In contrast, the country suffered a lot in terms of lost investment opportunities and social unrest.

The US also questions Pakistan’s commitment to providing adequate protection to intellectual property. It has concerns about book piracy, weak trademark enforcement, and pharmaceutical patent protection. These issues remain serious barriers to trade and investment.

However, it still praises Islamabad for taking significant steps to shut down optical disc production and export of pirated optical discs over the last two years, and for creating the Intellectual Property Rights Organization (IPO).

http://www.thenews.com.pk/daily_detail.asp?id=56229

 

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Gartner Inc to conduct study on Pak IT industry

KARACHI: Pakistan Software Export Board (PSEB) has signed a contract with Gartner Incorporated the world’s leading information technology research and advisory Company to conduct a study on the Pakistan IT Industry.

“The contract was signed in the presence of Secretary IT, MD PSEB, President PASHA and VP Gartner Consulting,” said a PSEB statement issued on Wednesday.

“Dr Tony Murphy, Vice President, Gartner Consulting arrived in Islamabad to deliver the technology related insight need to boost the IT Industry in Pakistan. He will undertake a review and study of the existing conditions of the Pakistani IT sector with particular emphasis on the software and IT services sector,” the statement read.

It said the study would also develop a practical strategic blueprint for the sector to achieve a step-change improvement in the performance of the IT Industry.

“Dr Tony Murphy would act as Engagement Manager and Chief Author for this study. His recent book ‘Achieving Value from Technology: A Practical Guide for Today’s Executive’ has become an international best seller and is becoming standard practice for many organisations worldwide,” added the statement.

“We are extremely happy with this success in bringing the world’s leading IT research company to Pakistan.” the statement quoted Yusuf Hussain, Managing Director PSEB as saying.

Dr Murphy said the technology based businesses would be the key to national success in the coming years. He said Pakistan had ambitious plans in this regard and Gartner was pleased to assist the country achieve its objectives.

http://www.thenews.com.pk/daily_detail.asp?id=56241

 

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May 17, 2007
Steel mills to use iron ore found in Balochistan: Tuwairqi contacts mining firm

KARACHI, May 16: Two steel mills — the state-owned Pakistan Steel of over one million tons capacity and the upcoming private sector project - Tuwairqi Steel Mills - with same production capacity are exploring the possibility of using local iron ore available in Balochistan as input.

Reports suggest that a third upcoming private sector steel mill project, with a half a million tons production capacity to be built in close vicinity of the two big steel mills, is also exploring to use local iron ore. “This is bound to cut down import bill and help in the development of iron ore mining in the area,” a senior official of the Pakistan Steel said.

The sponsors of all these steel mills are obviously encouraged by the reports coming from the mining area in Balochistan about relatively good quality of iron ore and the Balochistan Mining Company is said to have signed early this month an agreement with a German consultant to carry out engineering studies for setting up a beneficiary plant.

Chairman of Pakistan Steel Major General (retd) Javed said that engineers were in close contact with the officials of the mining company to evaluate industrial worthiness of iron ore and had carried out tests, which appear to be encouraging.

But Project Director of Tuwairqi Steel Mr Zaighan Adil Rizvi was more candid on the issue of exploring the use of Balochistan iron as input on completion. As he puts it the project is based on midrex technology and will require 1.92 million tons of iron ore with minimum of 66 per cent ferrous content annually to produce 1.28 million tons steel products based on Directly Reduced Iron (DRI).

Engineers and research scientists of the steel mills project disclosed that a resource of 50 million tons of magnetite iron has been established at two specified locations at Chigendik and Pachinkoh, North West of Nokundi in Chaghi district of Balochistan.

The lease holder is Balochistan Mining Enterprises, which is a joint venture of Balochistan and the federal government and the PPL. The Tuwairqi Steel is negotiating with the Balochistan Mining.

The company has shown willingness to supply 350,000 tons of lump concentrate and 50,000 tons of sinter concentrates every year for next 9 to 10 years. Subsequently, 400,000 tons of concentrate can be supplied.

“We are very keen to utilise maximum quantity of the indigenous iron ore for our project in Karachi,” Zaigham Adil Rizvi said while making it clear no compromise will be made on production quality.

He said the implementation of the project was well on track and he was confident of putting into operation the first private sector project of steel mill by the second half of next year.

The implementation of the project, he said, is exposing young Pakistani civil, electrical and mechanical engineers to new experiences and is creating a new talent pool that will be an asset for the country in the future.

His engineers — a Japanese and a European — explained that the DRI (Direct Iron Reduction) method on which the plant production is based is now producing about 60 million tons of steel in the world.

Shortage and higher prices of scrap in the world is said to be the main driving force to popularise the DRI technology in which gas and electricity are the main inputs. The production cost depends on the price of gas and electricity.

“Now that steel structures are fast replacing masonry works, steel industry has a big role to play in future,” a steel engineer said while pointing out that many international airport buildings and other structures are all steel built.

http://www.dawn.com/2007/05/17/ebr2.htm

 

[Introvert]

Pakistan to export 1,25,000 tonnes mangoes to Middle East
KARACHI: Pakistan has started mango exports to Middle East region after bumper crop in the country. The authorities have set 1,25,000 tonnes export target for the Gulf region.

The exporters have started mango shipments to Middle East and have sent about 500 metric tonnes of the fruit since last week, exporters told Geo News on Wednesday.

An export target of 1,25,000 tonnes has been fixed for the Middle East region, 37,000 tonnes more than the previous year, exporters said.

The region consumes one million tonnes mangoes in a year with exports from Pakistan, India, Brazil, Mexico and Australia.
http://www.geo.tv/geonews/details.asp?id=6107&param=3

 

[Neo]

$4.5 billion record remittances received in July-April

KARACHI (May 18 2007): A record amount of $4.450 billion were received as workers remittances during the first 10 months (July 2006-April 2007) of the current fiscal year as against $3.629 billion in the corresponding period last year, registering an increase of $820.44 million or 22.60 percent, according to figures released by the State Bank of Pakistan (SBP) here on Thursday.

The amount of $4.450 includes $2.24 million received through encashment and profit earned on the foreign exchange bearer certificates (FEBCs) and the foreign currency bearer certificates (FCBCs). During the last month (April 2007), Pakistani workers remitted $513.35 million as against $401.47 million in April 2006, depicting an increase of $111.88 million or 27.87 percent.

The inflow of remittances during the first 10 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 $1,176.12 million, $827.60 million, $673.51 million, $609.88 million, $354.60 million and $123.08 million, respectively as compared to $994.78 million, $584.64 million, $555.84 million, $477.30 million, $346.40 million, and $97.06 million during the same period last fiscal year.

The remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first 10 months, amounted to $683.09 million as compared to $562.85 million in the corresponding period last fiscal year, showing an increase of $120.24 million or 21.36 percent.

The monthly average remittances for the period July 2006 - April 2007 come to $445.01 million as compared to $362.97 million during the same period last fiscal year, registering an increase of 22.60 percent.

The inflow of remittances into Pakistan from most of the countries of the world increased last month as compared to April 2006. According to the break-up, remittances from USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $141.43 million, $94.12 million, $77.53 million, $71.59 million, $35.35 million and $12.70 million, respectively as compared to the corresponding receipts from the respectively countries during April 2006 ie $101.24 million, $69.05 million, $64.59 million, $47.98 million, $41.05 million and $9.44 million.

The remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during April 2007 amounted to $80.29 million as compared to $68 million during April 2006.

http://www.brecorder.com/index.php?id=565525&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

President for cut in inflation rate

ISLAMABAD (May 18 2007): President General, Pervez Musharraf, on Thursday directed the government to take strict measures in 2007-08, budget to bring down inflation rate, besides creating more jobs to address the issues of poverty and unemployment.

He said next budget should reflect the government's economic achievements in real terms by further reducing poverty and unemployment, besides putting in place a mechanism for ensuring availability of essential items to the poor and low-income group at subsidised rates. The President expressed these views during a meeting held here to give him the first presentation on forthcoming budget.

He wants reasonable increase in the government employees' salaries and retired employees' pension in the budget.

The President asked the authorities to make Utility Store Corporation (USC) network more effective across the country to cater the needs of the people in urban and rural areas. He also wants more funds in the next budget for Bait-ul-Mal to support the deserving people by paying them some amount on monthly basis.

Sources said the President was told by the authorities that economic indicators were showing positive trend and they will finally help the government sustain the current pace of economic growth. The President was informed that this year Pakistan is having record FDI and remittances as well, besides getting sizeable investment from privatisation proceeds.

He was told that the government would increase revenue target for next fiscal year by around Rs 250 billion to provide more resources to the government for development and current expenditures in 2007-08. The president was informed that inflows were enough to support outflows and help the government manage current account deficit. He was told that the government was working out a long-term strategy for the future to enhance exports and reduce trade deficit. The strategy accords priority to a diversified approach in terms of products and markets to give boost international trade in the future.

He was also given a detailed presentation on Public Sector Development Programme (PSDP), covering current year's utilisation and an ambitious plan for 100 percent utilisation in 2007-08. The president was informed that next year's PSDP will be around Rs 505 billion.

http://www.brecorder.com/index.php?id=565517&currPageNo=1&query=&search=&term=&supDate=

 

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Inflation may stay 7-7.5 percent in this fiscal year: Ashfaque

ISLAMABAD (May 18 2007): Pakistan will not be able to bring down inflation to 6.5 percent target for the current fiscal year. It is expected to remain between 7 and 7.5 percent in 2006-07 against 7.9 percent during the last fiscal year, said Dr Ashfaque Hasan Khan, adviser to the finance ministry.

Speaking at regular weekly press briefing on Thursday, he said that inflation was recorded at 7.9 percent during July-April 2006-07 as against 8 percent in the same period last fiscal year. The inflation was 6.9 percent in April 2006-07 compared to 6.2 percent during the same month the last fiscal year.

Dr Ashfaque said that food inflation stood at 10.2 percent in the first 10 months of the current fiscal year against 7 percent in the same period last year. The non-food inflation, however, came down to 6.2 percent in July to April period of the current fiscal year from 8.8 percent during the same period last year.

The non-food and e non-energy inflation remained at 5.7 percent in the first 10 months of the current fiscal year against 8.8 percent in the same period last year, he added.

"This year, the inflation is actually driven by food inflation," he said. Within food, the inflation in perishable food items is 17.6 percent in the first 10 months of the current fiscal year against 5.1 percent in the same period last year. The inflation in non-perishable food items is 9 percent during July-April this fiscal year compared to 7.2 percent in the corresponding period last year.

RUPEE DEVALUATION: Dr Ashfaque Hasan Khan ruled out the devaluation of the Pakistani rupee. "We are in a comfortable position and there is no need to devalue our currency," he said, while responding to a question.

He said the Pakistani rupee appreciated by two percent against the dollar in last 10 months or so while the Indian currency appreciated by over 13 percent and Chinese by around 10 percent.

With such situation where rupee appreciation is only two percent, it is high time for the exporters to take advantage as they are competing the Indian and Chinese exporters at least in the textile sector, he said, adding the tight Monetary Policy maintained by the State Bank of Pakistan (SBP) was doing well.

In reply to another question, the adviser said that interest rates had been increased globally in the last few years. The mark-up rate at 1.5 percent on bank loans some years back was the 45 years lowest. Gradually, this rate has been increased in developed countries, including the US. He said that US had reportedly controlled the inflation, and now the US authorities were expected to bring down the interest rates.

BASE YEAR: Statistics Division Secretary Asad Elahi, who was present at the briefing, said the government had not taken any decision to change the base year. He said the Statistics Division had undertaken 26 different studies and surveys and they would come in the national accounts first. It will take some time.

Ashfaque Hasan Khan said that if surveys and studies were completed this year, and were brought in the national accounts some time next fiscal year, then the 2006-07 could become the base year.

Asad Elahi gave a detailed account of a recent livestock survey, conducted by the Statistics Division and the Agricultural Census Organisation (ACO). According to the survey, the livestock share in agriculture GDP in 1996 was 25.3 percent, which increased to 49.5 percent in 2006, he said.

http://www.brecorder.com/index.php?id=565546&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

China keen to increase import of Pakistan products

KARACHI (May 18 2007): China is interested to increase import of several products from Pakistan along with exploring investment opportunities in various sectors. Sources in Federation of Pakistan Chambers of Commerce and Industry (FPCCI) told Business Recorder on Thursday that China was interested in increasing imports from Pakistan in leather shoe and garments to meet rising demand in its country.

In this regard a high level delegation from Wenzhou City, China planned a visit to Pakistan in June. The delegation would also explore the possibilities of investment in leather shoes and garments, low voltage equipment, magnetic pumps and any other product having demand in Pakistani market. The visit was organised by the Consulate General of Pakistan, Shanghai, China in collaboration with the local China Council for the Promotion of International Trade to foster bilateral economic relations between the two countries.

The sources said that Wenzhou City was one of the largest production bases of light industrial products such as spectacle frames, pens, cigarette lighters, badges, valves, magnetic pumps, leather shoes, low voltage electrical items etc.

http://www.brecorder.com/index.php?id=565564&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Chilean company to invest $1bn in copper project

ISLAMABAD: Chairman of Board of Directors of Chilean Antofagasta Copper Company, Jean-Paul Luksic F. called on Minister for Petroleum and Natural Resources, Amanullah Khan Jadoon here on Thursday and discussed Company’s one billion dollar investment programme for development of Rekodiq Copper Project at District Chagai, Balochistan Province.

Welcoming the delegation, the Minister said the government was taking concrete steps for exploring the mineral deposits at a fast pace and looking forward for speedy development of the Rekodiq by Chilean Antofagasta for the mutual advantage.

Jadoon recalled his fruitful and meaningful visit to Chile in December last as a head of delegation comprising of the Chief Minister Balochistan and Mineral experts which helped to abreast with the Chilean technologies and expertise being used for mining and production of copper gold deposits.

Pakistan, he said, has huge proven coal deposits of 175 billion tones at Thar in Sindh province and informed that government was contemplating to produce 20,000 mw electricity from coal energy by 2016.

He said the government would provide all out cooperation to the Chilean Antofagasta for carrying out their development and production activities at Rekodiq copper field.

The Chairman of Chilean Antofagasta who is currently visiting Pakistan as head of 7-member high-powered delegation, expressed gratitude to the Minister for Petroleum for arranging the visit and warm welcome to the delegation.

He said that Antofagasta was keen to implement this mega copper development project as quickly as possible and briefed him about the arrangements being made in this regard.

Minister of State for Petroleum and Natural Resources Mir Muhammad Naseer Mengal, Secretary Petroleum Ahmed Waqar, senior officials of the Ministry and members of Antofagasta delegation were also present during the meeting.

http://www.thenews.com.pk/daily_detail.asp?id=56398

 

[Neo]

‘Seven months’ effort lost in seven days’

KCCI chief expects a less-than-enthusiastic response to the much-touted My Karachi Exhibition after the May 12 carnage

By Hina Mahgul Rind

KARACHI: All the hard work done over the last seven months to make preparations for an international exhibition in Karachi has gone down the drain in less than seven days, says Majyd Aziz, President of Karachi Chamber of Commerce and Industry (KCCI).

The chamber has been working strenuously to hold “My Karachi Exhibition — Oasis of Harmony” from June 1 to 3 in the city, but, as its president put it, the May 12 outrage in Karachi has shattered the image of Pakistan as the whole wide world witnessed the macabre incidents of that day.

“Our purpose of holding My Karachi Exhibition was to promote the image of Karachi. We invested time, money and effort to persuade foreign investors to come to Karachi, the financial hub of the country.

“The image which had painstakingly been built of the city as conducive to commerce in the last few years has been tarnished. It will take a long time to erase the blot,” he said.

Since that fateful day, he said, consuls-general of various countries have been calling me, asking such troubling questions as why all that happened in Karachi in which 46 precious lives were lost and what the law enforcement agencies were doing.

They have been inquiring about the situation that might develop in the days ahead and are less than sure if they would be able to take part in the planned exhibition.

He said that “I doubt that the exhibition would get the same response as we had thought it would”.

He said how one can reassure them that such incidents will not recur. It was already impossible to convince them that Karachi is a safe and secure place.

He added that Karachi is the financial capital of Pakistan. It has the lion’s share in GDP and revenue growth. It generates approximately 65 percent of the total national revenue. In large-scale manufacturing, Karachi’s share comes to 42 percent, but the whole city was paralysed last week, he said. The financial losses suffered by the city are estimated to be in the region of Rs.24 billion per day.

In February 2007, the World Bank termed Karachi the most business-friendly city in Pakistan but this positive image has been turned into negative within no time, he added.

Shamoon Bakir Ali, Chairman of My Karachi Organization Committee, said that whatever happened last week has shattered every citizen but we have to do our bit to pull it from the edge of a precipice. He, nevertheless, sounded upbeat and said the exhibition would take place as scheduled.

He said some foreign delegates have confirmed their visits. He said the event is also part of Visit Pakistan Year 2007. The Ministry of Tourism has signed an agreement with KCCI to make the event a success.

He added that though the May 12 incidents have “shattered are dreams”, we are still hopeful and would do our best to make it an event of international standing.

“Itís difficult to get customers as we have already a negative image in the international market,” another businessman observed. “After the May 12 bloodbath in Karachi and Peshawar’s bomb blast, people have started cancelling their arrival plans,” he said, and went on to add that the Indian delegation, which was supposed to participate in the exhibition, is among those who have cancelled their trips. He expressed the fear that many more might follow suit.

Zafar Moti, a senior stock broker, said the recent violence has not only hampered our business but also shattered our souls. “Our business depends upon the psyche of investors and such violence badly affects the sentiments,” he said.

“Itís important to motivate the investors but we have been de-motivated so how can we motivate anyone else to invest in a place where security of citizens is not guaranteed.

http://www.thenews.com.pk/daily_detail.asp?id=56397