Pakistan Economy - News & Updates - Archive

[Neo]

'Efforts on to enhance surgical instruments export' ​

SIALKOT (June 25 2007): The chairman, Task Force on Trade and Industry, Mian Muhammad Riaz, has said the government has adopted a far-reaching approach for bringing out the surgical industry from stagnation. In an interview with Business Recorder here, he said the step was being taken for enhancing the export-volume of surgical industry of the country.

The surgical industry was enjoying the monopolistic position globally and the surgical instruments are most economical and coupled with unconditional guarantee of the finest quality, he added. On the pressing demands of exporters and manufacturers engaged in surgical industry the government was considering imposing ban on the export semi-finished and unfinished products for protecting the surgical industry from decline, he said.

The government had allowed the duty-free import of raw material for facilitating the industrial sector but the rates of raw material were increasing apace as a result of which the cost of production was increasing rapidly, he said.

Riaz said that setting up of a 'Raw Material Bank' was under active under consideration of the government aimed at providing raw material to the surgical manufacturers and exports on fixed rates.

He called upon the investors especially the overseas Pakistanis that they should focus on investing in stainless steel sector for improving the production standard of Pakistani steel, adding that quality stainless steel had become more imperative because the foreign buyers had become more quality conscious. Despite various hurdles and rapid variation in the prices of raw materials the business community of Sialkot was making hectic efforts in maintaining the quality and standard of the surgical instruments, he added.

Mian Riaz also said the government had focused its special attention on bringing revolutionary changes in industrial sector of the country with the concept of ensuring strong export base.

Undoubtedly, Pakistan had become a very attractive hub of foreign investment due to the strong and effective economic policies of the government, he said. To cope with the shortage of trained and skilled workforce, the government has taken numerous steps to produce trained and skilled force in the country, he added.

He said that a full-fledged Institute of Surgical Technology costing Rs 160.459 million is being established and this institute would play a pivotal role in the provision of surgical nursery to the manufacturers of surgical instruments. The work on this project would be carried out shortly and this institute would impart training to 250 students in various fields of surgical manufacturing and it will be equipped with latest machinery, he added. He claimed that the institute will usher in a new era in the development of surgical industry.

The step would not only help reduce unemployment graph but also supportive in increasing the overall production of surgical units as well as help in increasing the export volume, he added.

The surgical industry represents manufacturers and exporters of surgical instruments, dental instruments, veterinary, pedicure and manicure items, tailor scissors, barber scissors and beauty saloon instruments, he added.

Riaz also said on government-to-government level and individual level efforts were being made for acquiring instructors from Germany for imparting latest training to the students in the Institute of Surgical Technology.

On the occasion, he suggested that business community of this export-oriented city and hub of cottage industry should formulate a strategy for setting up power generation plant on self-help basis for catering to the industrial needs and keep the economic wheel in full motion.

http://www.brecorder.com/index.php?id=583033&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

Local group sells Mobilink stake to parent company for $290m ​

KARACHI: A local group has its shares in Mobilink - a cellular service with highest number of subscriber - to its parent company in a $290 million deal, making the service a complete subsidiary of a foreign telecom giant.

Saif Telecom - a subsidiary of the country’s Saif Group - has entered into an agreement with Egypt’s Orascom Telecom to sell out its 11.31 per cent stakes in Mobilink at $290 million, industry sources confirmed on Monday.

“Actually the two sides had been in talks for a quite sometime to reach such deal and finally reached the contract,” said a source privy to the development. “Details of the deal have not been disclosed officially but it is estimated that it values around $290 million.”

He said with the latest development Orascom Telecom had become the sole owner of the Mobilink, which had the largest subscriber base compared to other five cellular services in the country.

The Orascom Telecom has shown serious interests in Pakistani telecom, as the company already ventured into its $60 million undersea fibre cable project as a first ever private sector’s project in the particular area, which brought the submarine telecom into the country.

Mobilink, the Egyptian company’s cellular arm in Pakistan, has also been in talks with various local telecoms to acquire their majority stakes, what the experts see an attempt strengthening its presence in the region to capitalise on approaching opportunities.

The company’s deal with the local group is seen in line with the same strategy. “Saif Group and Orascom Telecom have been in partnership in Mobilink since 1994, which finally came to an end with the recent deal,” said the source. “Though the group has ended its commercial ties with Orascom, it has five other telecom ventures, operating in partnership with different local and foreign companies.”

He said Orascom Telecom would fund the acquisition with proceeds from the $750 million Senior Notes issuance closed in February this year. Following the transaction, he said, Orascom Telecom would receive 100 per cent of the after tax proceeds from management fees and dividends paid by Mobilink.

“This transaction confirms our strategy to consolidate our ownership in our subsidiaries through acquisitions of minority shareholder stakes, when appropriate, in order to increase growth, profitability and shareholder value,” the source said quoted the company’s official as saying.

Quality conscious cellular companies have already entered into a new kind but stiff competition, which makes the country to win around two billion dollars investment pledges during 2006-07 for their networks expansion.

“Mobilink topped in making the investment commitments for the current financial year, as the company planned highest figures for network expansion in 2006,” said the source. “Its total budget for 2006 stood at $600 million. It ($600 million) was purely for 2006, as the company decide a separate investment plan for the next (2007) year.”

Mobilink has become the market leader both in terms of business growth and customer base in the country. The company is the first cellular service provider to operate on a 100 per cent digital GSM technology in Pakistan and enjoys almost 50 per cent market share.

“By April 2007 the company (Mobilink) enjoyed 25.21 million out of total 58.39 million subscribers across the country,” said the source citing the figures compiled by the Pakistan Telecommunication Authority (PTA).

http://www.thenews.com.pk/daily_detail.asp?id=61903

 

[Neo]

US reaffirms pledge to help Pakistan meet energy needs​

ISLAMABAD: US Charge d’Affaires Peter W Bodde on Monday said the US was conscious of Pakistan’s growing energy needs and would try to address them.

Addressing the inauguration of a two-day renewable energy symposium organised by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the SAARC Chamber of Commerce, he reaffirmed the US government’s commitment to help Pakistan meet its energy requirements.

“The wind and solar maps provide the people and government of Pakistan and Afghanistan a quantified and qualified assessment of wind and solar energy resources of their respective countries,” said Bodde. He said the US was the largest bilateral donor to Pakistan. Over the course of the next five years, it is providing Pakistan with $1.5 billion through USAID for education, health, economic growth, democracy and governance, and earthquake reconstruction, he added.

Earlier, Federal Minister for Water and Power Liaquat Ali Jatoi, inaugurating the symposium, said the government would continue supporting renewable sources of energy. He said Pakistan was committed to successfully meeting the challenge of providing energy security to the country. The maps of Pakistan and Afghanistan’s renewable energy sources were presented at the symposium. The USAID South Asian Initiative for Energy (SARI/E) had funded the launch of these maps, which were produced by the National Renewable Energy Laboratory of the US Department of Energy. The mapping exercise for both Pakistan and Afghanistan was completed in April 2007.

USAID Pakistan Mission Director Anne Aarnes, FPCCI President Tanvir Sheikh, Advisor to the Afghan Minister of Energy Amin Munsif, and USAID SARI/E Regional Coordinator Robyn McGuckin were also present on the occasion.

http://www.dailytimes.com.pk/default.asp?page=2007\06\26\story_26-6-2007_pg7_10

 

[Neo]

Drug Expenditure Growing Slowly in Pakistan and Should Reach US$1.82bn in 2010, with Per Capita Spending Expected to Be Only Just over US$10 by 2010​

Tuesday June 26, 2007

DUBLIN, Ireland--(BUSINESS WIRE)--Research and Markets
(http://www.researchandmarkets.com/reports/c60765) has announced the addition of Pakistan Pharmaceuticals & Healthcare Report Q4 2006 to their offering.

The Pakistan Pharmaceuticals & Healthcare Report provides independent forecasts and competitive intelligence on Pakistan's pharmaceuticals & healthcare industry.

Drug expenditure is growing slowly in Pakistan and should reach US$1.82bn in 2010, with per capita spending expected to be only just over US$10 by 2010. However, the recently released Pakistan Pharmaceuticals & Healthcare report recognises that the domestic drug sector is still striving to modernise. The country has around 400 licensed pharmaceutical companies including 30 multinationals. Foreign drug-makers account for the majority of the drug market in value terms, with a 53% share, although domestic companies are dominant in volume terms.

Despite having a large population, Pakistan's share of the global pharmaceutical market remains relatively low. Meanwhile, the small-scale nature of the pharmaceutical manufacturing sector and the fact that production consists mainly of basic medicines has meant that Pakistani drug exports are relatively minimal. However, the government is attempting to encourage this sector by offering incentives to local exporters and supporting the improvement of domestic production standards. Entrance to the WTO will also help drug exporters by opening up markets across the globe.

The adjusted Business Environment Rankings for Asia reveal that Pakistan's position is unchanged in 14th place. This is primarily due to the country's poor regulatory system, which we rate as one of the worst in the region. The government does seem to be making some efforts to improve this situation and has recently increased the number of courts dealing with counterfeit drugs from nine to 20. It is hoped that efforts to battle fake and substandard products will boost foreign investor confidence and stimulate local production. The country's long term political risk rating has improved slightly, compared to the previous quarter. Pakistan's alliance with the US is helping to turn sentiment in the international community from hostility to active support. Meanwhile, the US itself is providing billions of dollars in aid and debt forgiveness.

Pakistan is going ahead with plans to implement a new autonomous drug authority. The organisation's main function will be to help streamline the registration process for pharmaceuticals and healthcare ensuring the quality of all medicines. Pakistan has severe problems with counterfeit drugs and the World Health Organisation (WHO) estimates that between 40-50% of drugs in the market are fake or substandard.

Content Outline:

Chapter - Executive Summary

Chapter - Pakistan: Business Environment Ranking

Chapter - Pakistan: Market Summary

Chapter - Regulatory Regime

Chapter - Industry Trends And Developments

Chapter - Industry Forecast Scenario

Chapter - Country Snapshot: Pakistan Demographic Data

Section 1: Population:
Demographic Indicators (2005)
Rural/Urban Breakdown

Section 2: Education And Healthcare
Education
Healthcare: Vital Statistics
Healthcare: Expenditure

Section 3: Labour Market And Spending Power
Employment Indicators
Consumption And Stratification
Wages Per Annum

Chapter - Competitive Landscape

Chapter - BMI Forecast Modelling

Chapter - Appendix: Regional Demographic Data

Companies Mentioned:
- Abbott Laboratories
- Efroze
- Ferozsons Laboratories
- GlaxoSmithKline
- Hilton Pharma
- Merck & Co
- Novartis
- Pfizer
- Sanofi-Aventis
- Wyeth

For more information visit http://www.researchandmarkets.com/reports/c60765

http://biz.yahoo.com/bw/070626/20070626005664.html?.v=1

 

[Neo]

Rally Energy Receives Approval for Provisional Gas Price and Production Commencement in Pakistan and West Issaran, Egypt Drilling Update​

Tuesday June 26, 2007

"RAL" - TSX Exchange "RLE" - Frankfurt Stock Exchange www.rallyenergy.com
CALGARY, June 26 /CNW/ -
SALSABIL, PAKISTAN

Rally Energy Corp. (the "Corporation") is pleased to announce that approval has been received from the Government of Pakistan for an interim gas price for the period up to November 30, 2007 and to start production immediately from the Salsabil Field in Pakistan.

The Salsabil gas price will be US$2.81/MMBTU as governed by the provisions of Petroleum Policy 2001. Until the amine plant installation is completed during the third quarter, an 11% quality adjustment discount pertaining to CO2 content will apply.

The operator of the Safed Koh concession expects to commence gas production this week from two wells at an aggregate rate of 15 to 20 MMCF/d or 5 to 6 MMCF/d net to the Corporation.

WEST ISSARAN, EGYPT

The Corporation is also pleased to announce that it has completed the drilling of two additional oil wells, for a total of four wells, in West Issaran. The table below outlines net pay results in feet, by formation, for the West Issaran area. Included in the discovery area is the Issaran - 24 well drilled in 2003.


Upper Middle Lower
Wells Dolomite Dolomite Dolomite
----------------- ------------ ------------ ------------

West Issaran - 1 220 35 75
West Issaran - 2 78 0 0
West Issaran - 4 164 20 0
Issaran - 24 147 0 84

There was no hydrocarbon present in the Nukhul formation in all 4 wells.
The Corporation expects to drill the West Issaran - 3 well next month and several delineation wells in the fourth quarter of 2007 to determine the reserves potential of the West Issaran discovery.

http://biz.yahoo.com/cnw/070626/rally_energy_update.html?.v=1

 

[Introvert]

$13 million increase in towel exports
ISLAMABAD: An increase of $13 million has been recorded in towel exports from the country during the eleven months of current financial year.

According to the federal statistics bureau, with an increase of $13 million the towel exports from the country went up to $ 544.8 million during the 11 months of the current financial year.

As per the statistics, the towel exports are 2.4 per cent more as compared to the same period in the previous year.

The exporters say that due to increase in prices of cotton and yarn in international market,
an increase was seen in the import orders by the foreign buyers.
http://www.geo.tv/geonews/details.asp?id=7980&param=3

 

[Neo]

ICI plans Rs 600m power plant​

KARACHI: ICI Pakistan plans to invest Rs 600 million in ICI Pakistan PowerGen Limited, its wholly owned subsidiary, for a cogeneration plant that will provide cheap energy to the company.

The company wants to put this item at its Extraordinary General Meeting (EGM) for approval. The approval of Rs 600 investment plan at its EGM, to be held on July 20, 2007 includes Rs 400 million in equity and Rs 200 million in loans, a notice to the Karachi Stock Exchange (KSE) revealed on Tuesday. ICI Pakistan PowerGen Ltd is incurring trading losses because the input cost of furnace oil has increased substantially without a consistent increase in its selling price.

The board of directors of ICI PowerGen after evaluating different options has decided it should install a combined heat waste recovery and power plant normally known as a co-generation or ‘cogen’ plant, which envisages the installation of two gas turbines, a waste boiler and associated equipment with a capital outlay of up to Rs 600 million.

The proposal by the directors of the ICI PowerGen to install the combined heat and power plant will result in significantly reducing the variable cost of the power plant by substituting the expensive production of both the electric power and steam with the relatively low-cost electric power and steam. The new investment will keep the power plant running in order to ensure continuous and uninterrupted power supply to ICI Pakistan’s PSF plant.

http://www.dailytimes.com.pk/default.asp?page=2007\06\27\story_27-6-2007_pg5_5

 

[Neo]

Bestway and Abu Dhabi group acquire UBL GDR worth $200 million ​

KARACHI (June 27 2007): Both Bestway and Abu Dhabi group have increased their shareholding to 29.5 percent in UBL by acquiring GDR's worth 200 million dollars, it is reliably learnt. Both groups have jointly acquired 51 percent stake at the time of privatisation - evenly split among them for 201 million dollars.

The cost of acquisition after bonus share is estimated between Rs 30-40 per share. The low caps maximum holding by a group directly or indirectly in a bank at 29.5 percent. As such, the additional four percent has at the rate of Rs 195 per share is 5.5 times the management buy out price.

Later, the government did a public offering of 10 percent shares at Rs 55 per share, but the offer was under-subscribed and only four percent shares could be listed. After the GDR offering government's holding is reduced to 20 percent in the bank.

Business Recorder understands that a probe has been ordered to ascertain the responsibility for the UBL share dropping from Rs 214 to Rs 206 just before the end of day trading which resulted in the GDR offering at Rs 195 instead of Rs 203. This cost the government a net loss of just under two billion rupees.

Perception given that the Bank of Punjab affair may have caused this is said to be unfounded, as other bank shares did not take a dip. And, instead it was trades by overseas investors, which resulted in the share value dropping by rupees eight in less the five minutes. When trading resumed on the next trading day, UBL share value once again touched Rs 216 per share.

http://www.brecorder.com/index.php?id=583570&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

1100 megawatts Kohala hydel project feasibility pact signed ​

LAHORE (June 27 2007): Wapda signed an agreement with a joint venture Messrs Kohala Hydropower Consultants for preparation of feasibility report, detailed engineering design and tender documents of 1100 MW Kohala Hydropower project here at Wapda House on Tuesday.

Wapda General Manager Manger Hydro planning Zia -ul -Hassan and consultants, representative Robert Goldsmith signed the agreement on behalf of their organisations. Wapda Chairman Tariq Hameed and Member Water Muhammad Mushtaq Chaudhry were also present on the occasion. Kohala Hydropower project, with an installed capacity of 1100 MW will be constructed on Jhelum River in Azad Jammu and Kashmir AJK.

The project on its completion will contribute 4800 million units Kilowatt hour of hydel electricity to the national grid annually. The PC-II of this run of the river project with a 17-km long tunnel for diversion of water has already been approved by the ECNEC tor conducting feasibility study.

The study will be completed in two years with a cost of Rs 312.5 million. Messrs Kohala Hydropower Consultants is a joint venture of three foreign and two national firms led by Messer Snowy Mountains Engineering Corporation of Australia.

The other firms include Messrs Scott Wilson of UK, Messrs Engineering General Consultants of Pakistan Messrs SOGREAH Consultants of France and Messrs Mirza Associates Engineering Services of Pakistan.

http://www.brecorder.com/index.php?id=583608&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

China cuts tariffs on imports from Pakistan, Africa​

BEIJING: China will lower import taxes on 3,975 categories of goods from Pakistan, by 11 percent to an average tax rate of 8 percent, also effective July 1, the statement said.

China will also exempt imports from 26 ‘under-developed’ African countries from tariffs, its Finance Ministry said on Tuesday, in an attempt to promote mutual trade.

The regulation, approved by the state council, or the cabinet, will exempt 256 items China imported from the 26 countries effective on July 1. The move would “further enlarge China’s imports from African countries, and promote the better development of mutual trade,” the ministry said. It did not name the 26 countries or the items. China similarly lowered tariffs on a broad range of imports from 29 African countries effective Jan. 1, 2005. China is broadening trade ties with Africa, an important source of minerals, crude oil, cotton and other natural resources, and has offered its African allies a variety of investments and financial packages.

http://www.dailytimes.com.pk/default.asp?page=2007\06\27\story_27-6-2007_pg5_8

 

[Neo]

Record $2.537bn import of eatables​

ISLAMABAD, June 26: The import bill of eatables has reached record $2.537 billion during the 11 months of the fiscal year 2006-07 as against $2.494 billion over the same period last year.

The low increase in the yield of essential farm produces for the last two consecutive years has encouraged import of food items, like pulses, sugar, etc., which were imported for meeting the domestic consumption.

Moreover, tariff rationalisation and free trade treaties have resulted in the influx of foreign brands in the local market.

Official figures compiled by the Federal Bureau of Statistics (FBS) showed that import of milk products increased by 31.01 per cent to $72.995 million during the July-May period of the current fiscal year as against $55.710 million.

An increase of 54.83 per cent was witnessed in import of pulses to $230.212 million as against $148.691 million, and an increase of 26.13 per cent was witnessed in palm oil $810.933 million as against $642.948 million.

Import of dry fruits increased by 19.15 per cent to $63.108 million during the period under review as against $52.963 million; 3.20 per cent increase was witnessed in spices to $49.986 million as against $48.435 million; and 7.33 per cent increase was seen in import of all other food items to $775.441 million as against $722.473 million.

The analysis of other commodities showed that the import bill of soyabean oil increased by 75.56 per cent to $36.659 million as against $20.881 million.

However, import bill of other food items, like wheat unmilled, declined by 68.38 per cent to $41.538 million during the July-May period of the current fiscal year as against $131.353 million over last year.

Import of tea declined by 1.37 per cent to $198.422 million during the period under review as against $201.173 million over the same period of last year; a decrease of 44.97 per cent was witnessed in import of sugar which stood at $258.338 million as against $469.465 million over the same period last year.

With the current increase in the import bill of food items, the total import bill has reached $27.743 billion during the July-May period of the current fiscal year as against $25.594 billion over the same period last year, an increase of 8.40 per cent.

http://www.dawn.com/2007/06/27/ebr1.htm

 

[Introvert]

Chinese high-ups arriving Islamabad on July 11
ISLAMABAD: A high level delegation of China will arrive in Islamabad on July 11 for the purchase of Pakistani products.

According to Trade Development Authority, the delegation has expressed interest in the provision of 46 classes of products and services.

These products include cotton, draperies, ready-made garments, chemicals, industrial products, minerals, rubber, agricultural produces and financial services.

TDA officials directed the Pakistani traders to get their products registered for the purchase as the earliest, after which their products will be put on display on July 11.

http://www.geo.tv/geonews/details.asp?id=8156&param=3

 

[Introvert]

Pak, Iran agree to boost trade ties
LAHORE: Pakistan and Iran would take further measures to enhance trade between the two countries.

Iranian Counsel General in Lahore Saeed Kharazi said this during a meeting with Chief Executive Officer of Small and Medium Enterprise Development Authority (SMEDA) Shahid Rashid.

Iranian Counsel General said that as a first step to boost bilateral trade, an industrial and investment conference would be organized in Lahore to create awareness about the investment options available in both the countries.

http://www.geo.tv/geonews/details.asp?id=8171&param=3

 

[Introvert]

Austrian Co. to invest in making oil, gas exploration tools
ISLAMABAD: Austrian company will invest in Pakistan for the manufacture of oil and gas exploration equipments.

Voest-Alpine Tubulars’ chief executive Hillkawit told this in a meeting here with the Federal Minister for petroleum and natural resources, Amanullah Jadoon. He said that a study was underway for making investment in Pakistan for the manufacture of oil and gas exploration equipments.

Federal minister MP&NR on this occasion told that with the opening of 17 onshore and offshore blocks in Pakistan, oil and gas exploration activity would get a boost.
http://www.geo.tv/geonews/details.asp?id=8127&param=3

 

[Introvert]

PTA talks with Bosnia soon

ISLAMABAD, June 27: Pakistan will soon initiate talks on Preferential Trade Agreement (PTA) with Bosnia-Herzegovina to increase volume of trade between the two countries. An official source in the commerce ministry told Dawn on Wednesday that the decision of having preferential agreement with Bosnia was taken as part of identifying new markets for exportable products.

The federal cabinet had also approved proposal of the commerce ministry for initiation of talks on PTA leading to Free Trade Agreement (FTA) between Pakistan and Bosnia-Herzegovina.

Through diplomatic channels the date and venue for the first meeting on PTA will be finalised, the official added. The bilateral trade between the two countries stood around $1 million, which is much lower than the potential existed for increasing trade between the two countries, added the official.

Pakistan’s exports to Bosnia declined by 53.4 per cent to $0.214 million during the eight months (July-Feb) period of the current fiscal year as against $0.460 million over the same period of last year.

This would be Pakistan’s first initiative of having a preferential agreement with any Eastern European country.

http://www.dawn.com/2007/06/28/ebr12.htm