Pakistan Economy - News & Updates - Archive

[Introvert]

Iran plans investment moot in Lahore

LAHORE: The Consul-General of Iran in Lahore, Saeid Kharazi, has announced that the Iranian government will organize an exhibition and investment conference in Lahore to create awareness among the business communities of the two countries of the potential of joint ventures and trade.

He was addressing officers of the Small and Medium Enterprise Authority (SMEDA) during his visit to its office on Wednesday.

He said Iran was serious about enhancing trade between the two countries.

He suggested utilizing cooperation of the Joint Economic Commission, Joint Trade Commission and Joint Investment Company formed by the two governments.

He observed that there existed a great potential in Punjab for joint ventures and external trade with Iran. He asked SMEDA to identify areas of joint business interests in the SME sector of Pakistan.

The Iranian diplomat observed that unemployment was a common problem both in Iran and Pakistan.

He praised Pakistan’s efforts aimed at creating employment opportunities through an effective SME development programme. He said the government of Iran was working on the same line to overcome the problems of unemployment and poverty.

Earlier, SMEDA chief Shahid Rashid welcomed the Iranian consul-general and apprised him about the role of SMEDA in the development of the SME sector in Pakistan.

He emphasized the need to identify new product line for joint ventures in promoting trade and investment between Iran and Pakistan.
http://thenews.jang.com.pk/daily_detail.asp?id=62219

 

[Neo]

Pakistan willing to extend 'commercial guarantee': IPI talks in Delhi today ​

ISLAMABAD (June 28 2007): Pakistan has shown its willingness to offer commercial guarantee as an alternative to sovereign one in Iran-Pakistan-India (IPI) working group meeting, scheduled for June 28-29 in New Delhi.

Sources said that Pakistan's official delegation, which left for New Delhi on Wednesday to attend the working group meeting, would try to convince the Indian side that commercial guarantee would be as workable and solemn as sovereign since the companies or groups which would extend the assurances would be acting on behalf of the respected states.

Sovereign guarantee issue is impeding progress on IPI talks as none of the parties to the project is ready to buy this idea, in the given situation, when it's very difficult to foresee the future developments in the region.

Sources said that Pakistan's delegation, headed by Petroleum Secretary Ahmed Waqar, would float the new concept of commercial guarantee at the working group meeting.

India is demanding sovereign guarantee from Pakistan to make sure that gas supply to the project remains smooth and uninterrupted for specified timeframe. Pakistan is not ready to accept New Delhi's this demand unilaterally. Its argument is that since all parties to the project would enter into a back-to-back agreement it would not accept sovereign guarantee unless it got the same from Iran in case of any interruption in supply to the pipeline occurred on its part.

The working group meeting is also important as it's going to finalise the pricing formula for the project. India and Pakistan are very close to reach an understanding on gas pricing formula for IPI. However, they are yet to go through extensive talks to reach some understanding on other tricky and difficult questions.

Some of such issues are transit fee that Pakistan is demanding from India to provide it a route for gas supply, timely completion of the pipeline in respective areas and bring it to the border of next neighbour to connect it to his distribution system.

There are certain issues on individual basis for each partner as well. Each country will have to raise funds from the donors to guarantee money to timely lay down the part of the pipeline in its respective territory and them workout a mechanism for foolproof security to avoid any damage and at the same time penalty from the next door buyer.

http://www.brecorder.com/index.php?id=583912&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

75 percent textile units cease production: power, water crises worsen ​

KARACHI (June 27 2007): While about 75 percent textile processing units have ceased production, other industries are running at a slow pace due to frequent power breakdowns and acute water shortage in industrial areas.

Disturbed over the performance of Karachi Electric Supply Corporation (KESC), industrialists said that voltage was one of the biggest problems in operating units on full strength. They pointed out that a number of units, which were running normally, were using their own power generating capability to honour their commitments to foreign buyers.

Industrialists from North Karachi industrial areas complained that KESC and other higher-ups in the government were repeatedly pursued to solve their problems, but no body came forward to solve their problems.

Talking to Business Recorder, pattern -in chief of North Karachi Association of Trade and Industry (NKATI) Captain A Moiz Khan said that there was no electricity in North Karachi industrial area for the last eight days. Around 2,500 units were lying idle, he said, adding only those industries were operating which have their power captive power generating capability.

He feared that if the situation continued and no remedial measures were taken, Chinese textile importers might cancel their import orders worth rupees four to five billion. Korangi Association of Traded Industry (Kati) Chairman Masood Naqi said that around 75 percent textile processing units had gone out of production due to low voltage, irregular power supply and water shortage caused by power failure.

He said that other industries, operating in the industrial area, are working below capacity due to voltage problem and frequent power failures.

Site Association of Industry (Sai) Chairman Imran Shaukat said that with the onset of heavy rains, out of 56 KESC feeders, 22 got out of order. However, the KESC has managed to reactivate 13 feeders, while nine were still out of order. He said that due to unannounced frequent power breakdowns and thin attendance, industrial production was reduced to around 48 percent.

http://www.brecorder.com/index.php?id=583583&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

Tourism price index up 11.3 percent ​

ISLAMABAD (June 28 2007): The general tourism price index increased by 11.3 percent during 2005-06 over the previous year, giving an impetus to the flow of tourism after 9/11.

The report was released here by the Economic Analysis Wing of the Ministry of Tourism, which shows 0.8 percent increase in food price, 13.4 percent in accommodation and transport cost increased by 7.4 percent. Tourism being a price-sensitive industry and responsive to changes in income, prices and taste, hence price plays a considerable role.

The study being based on printed rate, has not taken into account the group and corporate rates, which are highly competitive and benefit group tourists visiting Pakistan on all-inclusive packages. The tourism accommodation tariff index shows overall increase 17.2 percent for single room and 10.2 percent for double room during 2005-06 over the previous year.

The price index of food items served in restaurants increased by 11.3 percent in 2005-6 over 2004-05, while increase of 8.8 percent was recorded in food served in restaurants located outside hotels during the same period.

Tourism price index in 5-4 star hotels located in Islamabad, Faisalabad, Multan, Murree, Lahore, Rawalpindi, Karachi, Peshawar and Quetta, where accommodation price index increased by 13.4 percent, increased in single room was 21.5 percent and in double room was 14.1 percent.

In the same hotels, food price index increased by 3.3 percent in restaurants located inside hotels, whereas the tourism price index of 1 to 3 star hotels located in Islamabad, Faisalabad, Multan, Murree, Lahore, Rawalpindi, Karachi, Peshawar and Quetta. Accommodation price index in these cities increased by 10.5 percent.

Food price in these hotels increased by 8.3 percent in restaurant located inside hotels and 9.7 percent in restaurants located outside the hotels. Besides, tourism price index in tourist resort areas such as Kaghan, Naran, Balakot, Kalam, Swat, Chitral, Ziarat and Murree, where accommodation price index increased by 20.7 percent, food prices 12.2 percent increased in restaurants inside the hotels and 12.6 in restaurants located in outside the hotels.

Tourist price index in the Northern Areas-Gilgit, Hunza and Skardu, where accommodation price increased by 21.2 percent and food price index increased by 15.7 percent. Tourism price index in Sukkur, Hyderabad, Bahawalpur, Gujranwala, Sialkot, Mardan and D.I Khan, where accommodation price index increased by 4.4 percent and food price increased by 9.1 percent.

Besides, the transport price index increased by 7.4 percent during 2005-06 over the previous year. The domestic air fare index increased 25.8 percent, rail fare index increased by 5.4 percent and the highest increase of 27.3 percent was recorded in the road fair.

During the period, index of currency value in case of US dollar increased by 1 percent and Euro decreased by 5.1 percent during 2005-06 over the previous year.

http://www.brecorder.com/index.php?id=584018&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Landi Renzo to set up CNG kits assembly plant in Karachi ​

KARACHI (June 28 2007): Landi Renzo will soon set up a plant to assemble kits of compressed natural gas (CNG) here, said Italian Consul General Domenico Benincasa on Wednesday. Addressing third annual meeting of the Diplomatic Affairs Sub-committee of Karachi Chamber of Commerce and Industry (KCCI), he said that Italian oil and gas giant, ENI, was planning to further expend extraction and exploration activities in Pakistan

Furthermore, SNAM Progetti, another engineering giant, had signed a contract to build a huge urea plant, he said, adding that there was a big potential for Italian investors in Pakistan in sectors like tanning and leather products, textiles, jewellery, marble and granite, woodworking, agribusiness etc.

In all these sectors, he said, Pakistan was endowed with raw material, craftsmanship and a manufacturing tradition that could provide a good base for investment and Italy had world-famous technology and know-how.

Unfortunately, the structure of Italian enterprises, that were mostly small and medium sized, were hesitant to them make investment in such a distant and not well known country as Pakistan.

In other words, the risk involved in investment in Pakistan was too high for average Italian companies, he added. The Italian Consul General said that during the last three years, Pak-Italian trade had increased from 600 million to one billion Euro or by 40 percent. Last year only (2006), Italian exports to Pakistan reached an all-time high of 550 million Euros.

This was an encouraging figure, but since Pakistan was undergoing a process of industrial growth and technological up-gradation that might create an increasing demand for Italian products and ultimately raise that figure much higher, he added. Despite huge potential, Italian exports might be too expensive for this market, as the Euro was much stronger than dollar, he said.

As for Pakistan exports to Italy, he said that Pakistan exports were also at a significant level of 430 million Euros last year, but the trend of growth was much slower due to harsh competition from other Asian countries that had aggressively increased their exports to Italy.

He pointed out that Italy was a rich and quality conscious market and the potential was certainly there for Pakistani exporters to increase their trade volume, provided they concentrated on research and development so as to manufacture medium and high quality products. These would find more eager buyers in Italy and easily beat competitors from countries supplying products of low quality, he added.

Replaying to a question, he said: "We have to admit that Pakistan's security situation is not considered to be good in Europe, and that our investors, being generally very cautious, will tend to stay away from countries that are not regarded as peaceful and stable, however exaggerated this perception may be."

He said that recently he was posted in India and during his stay there, his perception about Pakistan was very bleak. However, after being posted in Pakistan, his perception had changed, he said, and added that ground realties were much different as compared to what was projected abroad.

Speaking on the occasion, KCCI President Majyd Aziz said that in Italy too, there were many industries, which facing problems due to high cost and moving to some other countries, and suggested that Pakistan was the best place to re-locate them.

Welcoming the guests, Chairman of the Diplomatic Affairs Sub-committee Arshad Islam sought Italian companies help in small and medium enterprise (SME) management, training and skill development.

http://www.brecorder.com/index.php?id=584038&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Ministry seeks Rs 3.664 billion for power for Gwadar from Iran: CDWP to consider uplift projects on Saturday ​

ISLAMABAD (June 28 2007): The Ministry of Water and Power has sought an allocation of Rs 3.664 billion for importing power from Iran for Gwadar and this will be one of the important projects out of around 32 development schemes costing over Rs 55 billion that will be considered by the Central Development Working Party (CDWP), when it meets on Saturday.

The CDWP will consider power import from Iran that also would include foreign exchange component (FEC) of Rs 1.934 billion. The Pakistan Atomic Energy Commission (PAEC) project of setting up Nuclear Fuel Enrichment Plant (NFEP), costing Rs 13.708 billion, is also on the agenda of the meeting, sources told Business Recorder on Wednesday.

The FEC in all projects has been estimated at over Rs 30 billion, according to sources. In the energy sector, the CDWP would also consider development scheme of Pakistan Nuclear Regulatory Authority (PNRA), which is aimed at strengthening regulatory infrastructure by applying innovative radioactive waste management technology. The project will be implemented at a cost of Rs 338 million, that would also include Rs 80 million FEC.

The project of adoption of social accountability (SA-8000) costing Rs 144.3 million, up-gradation and additional works of Expo Center, Lahore amounting to Rs 1.37 billion and Agro-food processing facilities in Multan will come under consideration of the meeting, which will be chaired by the Deputy Chairman of Planning Commission, Dr Akram Sheikh.

The establishment of oceanographic research vessel for coastal waters of Rs 1.3 billion, construction of office building for Ministry of Science and Technology and its organisations of Rs 620 million; upgradation of facilities to produce silicon solar modules upto 80 KW annual capacity of Rs 262 million and establishment of cast metals and foundry technology centre (revised PC-I) of Rs 326 million will also come up for consideration of the CDWP. The Ministry of Science and Technology is the sponsoring agency of these projects.

In transport and communication sector, four projects costing over Rs 14 billion would be taken up. Prominent in these projects are Rs 3.596 billion scheme of land acquisition for Faisalabad-Khanewal Motorway (M4); Rs 1.775 billion project of construction of bridge over River Sutlej connecting Pakpattan with Minchinabad.

In telecommunication, the rural telecommunication and E-Services Development project of $134 million would also come up for consideration of the CDWP. In environment sector, the CDWP would consider three projects, namely establishment of emission testing/motor vehicles examination system, Islamabad of Rs 294.3 million, establishment of combined effluent treatment plant and construction of conveyance system for carrying waste at Hattar industrial estate for phase-IV of Rs 225 million and Rachna Doab afforestation project costing Rs 212.182 million.

In physical planning and housing sector, a total of six projects costing over 2.4 billion would be considered by the CDWP. In higher education, four schemes costing over Rs 13.4 billion are also on the agenda of the meeting. Other important projects include establishment of federal drought recovery assistance program project (DRAPP)/ DERA-II (second revision), costing Rs 215 million and construction of sports stadium at Taxila at a cost of Rs 178.3 million.

http://www.brecorder.com/index.php?id=583980&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Saudi Pak real estate firm being launched​

ISLAMABAD, June 27: The Saudi Pak Real Estate Development Company is being launched in the first quarter of 2008 aimed at meeting the growing housing requirements of Pakistan by having joint ventures with China, United Arab Emirates (UAE) and Malaysia.

Informed sources told Dawn on Wednesday that the board of directors of the Saudi Pak Agricultural and Investment Company — a 50:50 joint venture of Pakistan and Saudi Arabia - has decided to launch their new real estate company by March next year after having received a formal approval by the State Bank of Pakistan.

The company is being set up at an initial Rs500 million paid-up capital which is expected to be stretched to Rs1 billion during the second quarter of next year.

It will concentrate on low-cost housing besides catering to the requirements of commercial buildings, service apartments and hotels.

Sources said a number of international companies, especially from China, UAE and Malaysia, have expressed their willingness to enter into joint ventures with the Saudi Pak Real Estate Development Company by substantially investing in the real estate sector of the country.The new company will also finance infrastructure projects and housing schemes beside providing funds for development of new tourist resorts, shopping malls, hotels and office blocks.

It will have a complete corporate and management structure for promoting long-term investment horizon for which it will follow draft rules of the Securities and Exchange Commission of Pakistan (SECP) as being the regulator.

The company will be fully operational in March next year for which Mr Javed Kalia has been appointed as its chief executive officer (CEO). The company will be based in Karachi, having offices in Lahore and Islamabad as well.

A long-term regulatory approval has been given by the central bank for the company, but rest of the matters will be regulated by the SECP.

Sources said this would be a first-ever any organised company to cater to the requirements of housing, infrastructure etc. by offering significant loaning to the interested people.

The objective is to fund top quality residential apartments and other office buildings. All the market segments will be adequately covered by the real estate company.

There will be a wide collaboration with foreign companies in the services and technical fields.

Sources said more funding for the real estate company would be raised from the banking sector and the capital market.

A world-wide modern concept will be utilised for building housing and other projects through the real estate company.

Sources said a regional office has been set up in Riyadh after having a formal approval of the Saudi government.

It will be a liaison office the purpose of which will be to study the raising of funds for the Saudi Pak Investment Company and its subsidiaries.

Sources also confirmed that the Saudi Pak Investment Bank would be sold soon due to experiencing financial constraints and particularly to meet Rs6 billion paid-up capital requirement by 2009. It has not earned a profit like other banks last year, a source said, adding that the parent Saudi Pak Investment Company has to increase its paid-up capital to Rs6 billion by 2009 and under these circumstances, it was becoming difficult to retain the investment bank. The Bank has created a good image due to its fine infrastructure, good branch network and IT and Human Resource departments.

It was stated that funds were spent on capacity-building as bank was preparing itself for future and that caused a lot of loss and that was why Saudi Pak company did not celebrate its silver jubilee in 2006.

Sources said a number of investors have approached the company to buy Saudi Pak Investment Bank.

“A lot of liquidity is roaming around in our part of the world to purchase banks and other companies which is why the Saudi Pak bank is likely to get a better price,” a source said. He added that the bank has a good network of branches and its share is currently being trading at Rs24 per share in the Karachi stock market.

A decision, sources said, has also been taken by the board of directors of Saudi Pak Agricultural and Investment Company to convert it into a “public limited” company within this year so that it could issue public securities.

The central bank has allowed the company to become a public limited company.

Sources also said that financial approval of the Saudi Pak Investment Company has significantly increased, as by May 2007 total approvals reached Rs3.683 billion as against Rs2.541 billion of last year, registering an increase of 44.9 per cent.

Similarly, disbursements in the first five months of 2007 were amounted to Rs2.116 billion against Rs2.019 billion of last year, having an increase of 4.8 per cent. Also, recoveries stood at Rs2.007 billion in the first five months of this year against Rs1.113 billion of last year registering an increase of 32 per cent.The new sectors which got major financing included steel, fertiliser, cement, power and constructions.

Similarly, the Saudi Pak Insurance Company has achieved a gross income of Rs236 million and is expected to wipe out its accumulated losses in 2007. The company is considered a robust entity having a potential to raise its business in profitability.

The Saudi-Pak Leasing Company is also doing fine as its assets have grown to over Rs6 billion as the year 2006 was good for it.

Overall, group assets of the Saudi Pak Company have reached Rs82 billion and were helping it to further improve its operations across the country.

http://www.dawn.com/2007/06/28/ebr6.htm

 

[Neo]

$400m ADB loan to help rebuild homes hit by quake​

ISLAMABAD, June 27: The Asian Development Bank on Wednesday announced to provide $400 million in soft loans to Pakistan to rebuild homes hit by the 2005 earthquake.

The loan, approved by the ADB’s board of directors in Manila, is part of a $1 billion pledge the bank had made after the 7.6 magnitude quake on Oct 8, 2005, which killed at least 80,000 people. The loan would be a new initiative to house some 30,000 people still living in tents and 3.5 million others in non-permanent dwellings, an ADB announcement said.

The loan carries an interest rate of 1 per cent per year and a maturity of 40 years, including a grace period of 10 years.

“With the last two winters having been extremely harsh, ADB is fully supportive of the government’s push to make the upcoming winter the last one without proper homes for most of those displaced by the quake,” said C.C. Yu, the Asian Development Bank Mission Leader. “We are moving this forward as fast as possible.”

The injection of funds will be a boost for the region’s economy. It will create jobs for reconstruction workers and help businesses supplying reconstruction materials.

In addition to the new loan, the Asian Development Bank will provide a $2 million grant to increase the capacity of Pakistani institutions helping to rebuild quake-affected areas. It will provide training in seismic construction, strengthen financial and strategic management and support environmental and social protection.

The loan will be released in two parts. The first tranche of $200 million will provide support on a retroactive basis for significant housing expenditures already incurred by the government. The second tranche, expected to be released within six months of the first, will be used to meet additional financing needs of the housing reconstruction programme.

Home owners will be given money directly to repair or rebuild their own homes in accordance with approved designs to make them more resilient to earthquakes in the future.

People whose homes have been completely destroyed will receive Rs175,000 (about $2,900) in four instalments. For a partially damaged house, the owner will receive Rs75,000 (about $1,230) and for houses with minor damage, Rs25,000 (about $410). The payments will be made on the basis of progress reports from field inspections by appraisal teams with representation from the local government, communities, army and non-government organisations.

An extra Rs75,000 will be provided to about 6,000 households, whose land was destroyed by quake-triggered landslides, to acquire new land to rebuild their homes.

The new loan is the latest in a long list of funding the ADB has provided toward the reconstruction effort. Within three months of the quake striking, the Asian Development Bank had approved $405 million. This was followed by a $5 million grant, $12.5 million increase in financing and $62.5 million reallocation of loan savings from other projects. In addition, the ADB has helped mobilise about $97 million in additional grant funding.

http://www.dawn.com/2007/06/28/top6.htm

 

[Neo]

Portfolio investment crosses $1b, or does it?​

KARACHI: Foreign investment in the country’s equity markets has crossed $1 billion; this was the buzz making rounds at the Karachi Stock Exchange on Wednesday.

Although the State Bank’s data showed that the portfolio investment stood at $978 million on June 26, $4 million down from June 25. Rumour had it that it went past $1 billion on Wednesday, June 27.

The correct situation can only be found Thursday evening when the central bank updates data for investment up to June 27.

Aqeel Kareem Dhedi, a leading stockbroker of the country, said he expected that the foreign portfolio investment would cross the $1 billion mark within this week, which is the last of the current financial year.

He said he expected the inflows from abroad into the shares of Pakistani companies to continue during the next year.

“There is a lot of foreign interest in the market and it is expected to continue because prices in our markets are at discount to those of other regional markets,” he said.

Apart from the large trade deficit, the economy is doing very well and that is the reason the stocks business is attracting money, he said.

Atiq Ahmad, an analyst at Capital One Equities, said he expected the portfolio investment to cross $1 billion by the end of this week and this fiscal year. The market could take slight correction on Thursday and might again surge on Friday, he said and added that portfolio investment is likely to fly past the $1 billion mark during last trading day of the week.

Data showed that there was a net outflow of $4.245 million on June 26, caused by a total outflow of $9.651 million against inflow of $5.405 million.

The country received $228.050 million during the first 26 days June 2007. Of this amount the largest chunk, $128.993 million, came from the United Kingdom. Investors from the United States invested $100.913 million in stocks during this period. The country attracted $5.935 million, $6.823 million and $2.553 million from Hong Kong, Japan and France, respectively.

The US investors have put in $684.313 million so far this year. UK investors who invested $265.179 million in the country’s stocks followed them. The investors from Hong Kong, Kuwait, Netherlands and Germany put in $32.722 million, $14.176 million, $44.124 million, and $7.193 million, respectively till June 26.

Investors of Singapore invested $8.248 million in our stocks.

http://www.dailytimes.com.pk/default.asp?page=2007\06\28\story_28-6-2007_pg5_2

 

[Introvert]

Pakistan wants share in $5 billion global flower trade
29th Jun, 2007 11:45:23 AM

ARTICLE: Pakistan may soon be in a position to claim a share in the global flower trade, which is at present in excess of $5 billion annually, and increasing every year. In recent years, China, India, Kenya, Columbia and Israel have done exceedingly well in this field and are among the leading exporters now.

Since not much emphasis had been given in Pakistan to this lucrative business in the past, the Pakistan Horticulture Development and Export Board has taken the initiative to promote this important area of horticulture with the objective of making "Floriculture exports as one of the sunshine sectors of the country."

With this objective in mind, the Board would establish Floriculture Common Facility Farms (FCFF) in each province to enable the farmers grow export quality flowers on a large scale.

Growing flowers and selling them in the international market is at the moment a huge industry with billions of dollar sales and employing millions of people world-wide. However, to support this international industry, it is necessary to have open trade borders and the bringing down of trade barriers.

Cultivation under controlled environment of greenhouses is recommended to overcome weather conditions and to provide most suitable growing environment for top quality and high yield.

Greenhouse cultivation is an expensive proposition and can be out of reach of individual farmers. Under FCFF, the cost for each farmer would be substantially low, as key facilities would be provided by the zone. The Punjab FCFF would be taken as a model, and later replicated with slight modifications as per the geographical conditions of each province.

It has been proposed that the size of the first FCFF should be 30 hectares (75 acres). Each farm, within the zone, would be of two hectares (1.5 hectare greenhouse + 0.5 hectare open space). Total investment of the FCFF shall be in the range of Rs80 million. This would include development of land, provision of common facilities like drip irrigation, cold storage, packinghouse, etc, on nominal charges. Sale and marketing would also be the responsibility of the FCFF, which, after deduction of expenses and nominal margin, would pass on the balance to the individual farmers.

Profit earned by the FCFF shall be used to develop the zone, provide technical training to farmers through local and foreign consultants, establishing a modern laboratory and marketing. Internal Rate of Return (IRR) of the project is approximately 24 per cent. The FCFF zone would be managed by a private limited company.

The flower trade world-wide is changing very rapidly. Many more flowers are needed round the year for the fast developing impulse sales in the mass-market. These will have to be produced under the most competitive conditions. Many countries are getting into 'cut flower' production both for domestic consumption and for export. Each country has its own limitations in the form of logistics, which could dictate where the flowers are sold.

Looking at the international situation in the flora culture industry, Holland is market leader with about 65 per cent of total sales of flowers and plants. Not only that, Holland is also market leader by supplying all kinds of young plant material, seed, equipment and they have a very high standard and updated with the latest trends and techniques.

Holland is also the middle point of the daily market in selling flowers and plants. The two big auctions 'Aalsmeer' and 'Flora Holland' which are operating five days a week, play a major role in the international selling of flowers and plants. What Wall Street in New York is for the International Financial World, these auction houses have the same importance.

On these auctions, the daily world market prices are settled and in a few minutes people all over the world could follow this by high communication systems and latest techniques. In the last 40 years, Holland has created a big floral culture industry and now more than 100 countries are sending their flowers and plants to this market from where wholesalers send them to customers all over the globe. These wholesalers are able to supply each customer with a wide range of products.

Every day, millions of different flowers and plants in all kind of colours are available for the international buyers and all according to international standards which took about 40 years to develop and at the moment everybody in the world is following these international standards.

These international standards are providing customers all over the world with guaranteed fresh product. By modern cooling systems and logistics systems people all over the world, order in the morning and the same day or early morning next day flowers arrive fresh and healthy.

http://paktribune.com/business/newsdetail.php?nid=3396

 

[Neo]

IPI pipeline: Pakistan and India agree on gas transport fee principles ​

NEW DELHI (June 29 2007): India and Pakistan have agreed on principles to calculate a transportation fee for Iranian gas to be supplied via a pipeline, but were yet to reach an agreement on the transit fee, a top Pakistani official said on Thursday.

"We have agreed on principles under which the transportation tariff will be computed," Mukhtar Ahmad, Energy Adviser to Prime Minister, told reporters.

"All the elements that contributed to the cost of the infrastructure will need to be taken into account, and clearly that cost would need to be recovered through a transportation tariff," he said.

However, the two countries were yet to reach an agreement on a transit fee for the gas moving across Pakistan into India, Ahmad said. "But we do not expect this will be a road block in our way to concluding agreements regarding this project," he said.

India, Pakistan and Iran are negotiating a proposed 7 billion dollars gas pipeline deal for supplies of natural gas from Iran to feed the energy-hungry south Asian economies.

Iran has the world's second-largest gas reserves after Russia. But sanctions, politics and construction delays have slowed its gas development, and analysts say Tehran is unlikely to become a major exporter for a decade.

The proposed pipeline will initially carry 60 million cubic metres (2.2 billion cubic feet) of gas to be exported daily to Pakistan and India, half for each country. The capacity would be raised to 150 million cubic metres at a later date. The delivery point would at the Iran-Pakistan border.

http://www.brecorder.com/index.php?id=584643&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Pakistan's Foreign exchange reserves now $15.18 billion ​

KARACHI (June 29 2007): Country's total liquid foreign reserves reached ever-highest level of 15.18 billion dollar. According to State Bank of Pakistan (SBP), the country's total liquid foreign reserves stood at 15.1822 billion dollars on June 23, out of which 12.7546 billion dollars has been held by the State Bank of Pakistan and 2.4276 billion dollars held by other banks.

http://www.brecorder.com/index.php?id=584676&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Conversion of 1pc surcharge into FED to generate Rs20bn ​

ISLAMABAD: The governmentís decision to convert the 1 percent special surcharge on imports into a 1 percent federal excise duty (FED) will generate Rs20 billion revenue during the financial 2007-08, as the tax will also be applicable on locally-manufactured goods.

The government has decided to withdraw the one percent special surcharge owing to violation of WTO rules and bilateral trade agreements. The decision will be beneficial for the CBR in terms of generating revenues, and 1 percent special FED will be applicable both on imports and locally-manufactured goods from July 1.

It was the projection of the CBR to generate Rs13 billion through the 1 percent special surcharge on imports, but the decision to convert it into a 1 percent special FED will help to collect Rs20 billion in the next fiscal year.

Earlier, the 1 percent special surcharge was not meant for locally-manufactured goods, but now it will be levied on it, helping the CBR to generate around Rs20 billion during the next fiscal

“The 1% FED will be levied on duly-notified imports and locally-manufactured goods from July 1, as per the decision of the government and amendment made in the Finance Bill, 2007,” said a CBR official on Wednesday.

When the official was asked about the reason to impose special 1% FED on locally-manufactured goods as well as imported goods, he said the CBR did not want to create distortions in the economy. He was of the view that the CBR would collect less than Rs20 billion revenue through this tax as the demand would decrease after increase in prices. So the tax authorities should also keep in mind the demand factor, which would help to curtail imports and, resultantly, the countryís trade deficit would also narrow down.

The CBR has issued instructions to all its field officers to stop collection the of 1 percent surcharge on imports with effect from 21-6-2007. However, special FED is being levied on goods with effect from July 1.

According to WTO rules and bilateral trade agreements in shape of Free Trade Agreement (FTA) and Preferential Trade Agreement (PTA), one percent surcharge on imports was in violation of these agreements.

Sources said the government had imposed the 1 percent surcharge on imports without consulting the ministry of Commerce, which is the ministry concerned relating to ensuring implementation of FTA and PTA signed by Islamabad with a number of countries.

Pakistan has signed FTA with Sri Lanka, PTA with Iran and Early Harvest Programme with China and Malaysia and these agreements were in jeopardy because of the imposition of a 1 percent surcharge. Earlier, the CBR chairman was of the view that the 1 percent special surcharge was not in violation of the WTO, or bilateral trade agreements. But finally tax gurus changed its mode in such a way that would help them more in achieving an ambitious tax collection target of Rs1.025 trillion by the end of the next fiscal year.

http://www.thenews.com.pk/daily_detail.asp?id=62471

 

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Pharma exports to touch $600m by 2010: exporters​

KARACHI: Pharmaceutical sector of Pakistan is capable to enhance its exports to the tune of more than $600 million by 2010, the manufacturers and exporters said on Friday.

A senior member of Pakistan Pharmaceutical Manufacturers Association (PPMA), Dr Kaiser Waheed said currently Pakistan was exporting pharmaceutical worth $85 million while the industry was aiming to expand and this would only be possible when government puts a ban on the import of medicine, produced by the country.

India and China are two low-cost drug manufacturers. Pakistan, unfortunately, is located between these two countries. But now, Pakistan is all set for the action. For the past 10 years, the nation has been establishing its drug-manufacturing units, infrastructure and export capabilities.

He said around 22 international pharmaceutical players and about 380 registered national units are functioning in Pakistan. The total worth of pharmaceutical industry of Pakistan is estimated at $1.9 billion.

He said the country has a low-cost base and the cost of converting generic drugs into their more famous derivatives is among the lowest in the world.

He pointed out that the ideal location of the country at the world’s centre makes it cost-efficient in terms of freight costs.

Also, a number of drug courts are working in Pakistan to ensure the quality control of the manufactured drugs and to govern the authentication of exported drugs, he added.

We are exporting medicines to Sri Lanka, Vietnam, African countries and Philippines, he added.

A report on ‘World Pharmaceutical Market (2007)’ by RNCOS’ Research Analyst puts forth his views that Pakistan is already trading its pharmaceutical products abroad to highly organised markets.

Also, the country is a part of TRIPS agreement and since 2000, it has its Intellectual Property Legislation duly placed, its pharmaceutical industry is waiting to fly high.

He said the manufacturers were importing blister units, tablets and capsules making machinery from Korea, China and Germany due to their quality and cost effectiveness. The government should provide incentives to pharmaceutical exporters in shape of cost sharing for registration of pharmaceutical products in foreign markets.This would result in enhancement of the export of pharmaceutical products in the foreign markets and help government to achieve the set target of the export during the fiscal year 2007-08.

http://www.dailytimes.com.pk/default.asp?page=2007\06\30\story_30-6-2007_pg5_2

 

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Pak-Russia business cooperation urged​

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and National Chamber of Commerce and Industry of the Russian Federation signed an agreement to explore the business opportunities between the two countries.

On this occasion, Vladimir V Seliverstov, Consul General of Russian Federation, Karachi and Tanvir Ahmad Sheikh, President FPCCI stressed the need to activate cooperation in business and industry, a statement issued by the FPCCI said on Friday.

During the meeting they agreed that the Pakistan-Russia Business Council and its counterpart Russia-Pakistan Business Council could play a positive role in the promotion of trade and economic cooperation between the two countries.

President, FPCCI said that Pakistan was faced with acute shortage of electricity and there were several private sector parties were eager to put up power generation plants but the manufacturers in Europe and other countries were giving delivery dates after three to four years and said that if there were any Russian suppliers who could make immediate deliveries, they should come forward.

He said that Pakistan was rich in natural gas and Russia could help Pakistan in the expansion of its gas distribution network. It could also help in modernisation and expansion of Pakistan Steel.

The Consul General said that Pakistan was very dear to Russia and it has offered to help in modernisation and expansion of Pakistan Steel. He said that a Russian company has also offered to construct the Iran-Pakistan-India gas pipeline project.

He said that the Russian company, which built a power plant in Multan has offered to put up other power plants, ranging from 50 MW to 600 MW. There was also an offer from a Russian company to put up high-tension lines for the transmission of electricity from Central Asia to Pakistan.

The Russian Consul General in reply to a query said that there was a difference in tariff on goods imported from India and Pakistan because Pakistan did not have free trade agreement with Russia.

“It is our ultimate goal to have a free trade agreement with Pakistan as well”, he added.

http://www.dailytimes.com.pk/default.asp?page=2007\06\30\story_30-6-2007_pg5_13