Pakistan Economy - News & Updates - Archive

[Neo]

Pakistan may get new BMW X5 this month ​

ISLAMABAD (July 20 2007): Perfect combination of driving dynamics, functionality, and exclusivity deliveries of the new BMW X5 to Pakistan are expected in July 2007. BMW not only invented the sports activity vehicle (SAV) sector, it continues to lead the segment through innovation and raises the bar yet again with the launch of the new BMW X5, says a press release.

"Offering enhanced dynamics and even higher standard of all-round supremacy, the new BMW X5 is continuing the victorious success of its predecessor," said Farooq Mustafa, President and Chief Operating Officer for Dewan Motors Private Limited.

"The original BMW X5 created a brand-new segment and set the trend for spacious, luxurious, rough terrain vehicles. We have already recorded high demand for the new BMW X5, which takes the agility, function and exclusivity of the vehicle to a whole new level," he said.

http://www.brecorder.com/index.php?id=594758&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Trade policy focuses on creating export surplus​

ISLAMABAD, July 19: Commerce Minister Humayun Akhtar Khan said on Thursday measures taken in Trade Policy 2007-08 would help achieve the ambitious export target of $19.2 billion set for the current fiscal year.

“The focus of the policy is to encourage value addition and more tax holidays for attracting investment to produce exportable surplus,” the minister said while replying to a question at a post-Trade Policy press conference.

While defending the role of his ministry, Mr Khan said the if there were no surpluses in industrial production, what will be exported as the growth in the large scale manufacturing (LSM) declined from 18 per cent to less than 10 per cent during the current fiscal year.

He suggested for a proactive and balanced policy to encourage industrialisation and create exportable surplus in the country. He said that the government introduced equity fund for brand acquisition, encouraging sanitary and phyto-sanitary (SPS) compliance and provided sectoral investment incentives to trade companies.

Answering a question he said despite several challenges and difficulties exports increased from $8 billion to $17 billion in the last five years. However, he said focus of economic policies on revenue generation, reducing debt-to-GDP ratio has resulted in increase in imports but still there was no cause for alarm.

He said that growing economies do need imports as there happens to be a strong correlation between higher imports and GDP growth.” However, the highest-ever trade deficit will be bridged through remittances and foreign direct investment.

Mr Khan said Pakistan's trade policy was going on right direction adding that the public as well as the private sector can now go to international market and freely raise debt without affecting foreign reserve position.

---He said that efforts were afoot to replace the non-recurrent with the recurrent adding that this would help enhance export growth.

To a question he said that the current account deficit would not affect the government spending. The government has many ways to generate revenue like one per cent federal excise duty (FED)on imports, which would help generate additional Rs20 billion for the kitty.

The minister defended his trade diplomacy, which, he said, had helped in getting preferential market access for Pakistani goods. He said many preferential trade agreements with many East Asian, Middle East and Far East countries are in the pipeline.

Answering a question the minister said the legislation of the Reconstruction Opportunity Zones (ROZs) will be passed by the US congress soon. He said that these zones will be established in the entire NWFP, tribal areas and border districts of Afghanistan. The products produced in these zones will be exported to US duty free.

He said that the expansion of positive list for trade with India has nothing to do with the trade policy. He said that exports to Afghanistan declined only in the POL products.

Mr Khan defended the FTA with Sri Lanka and claimed that the trade with that country had increased. However, he said, that no auto parts are allowed to be imported under FTA from Sri Lanka.

He said that major portion of the country’s imports was in oil and telecom sectors adding that the government has been working on a comprehensive strategy to increase exports and decrease the trade deficit.

http://www.dawn.com/2007/07/20/ebr3.htm

 

[Neo]

Chinese firms sign $300m import contracts​

ISLAMABAD, July 19: Private firms have signed mutual agreements worth around $300 million for exporting Pakistani products to China. The agreements were signed at a function organised by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) for the visiting 43-member Chinese business delegation headed by Assistant Minister of Commerce Wang Chao on Thursday.

Wang Chao told APP that the basic aim of the visit was to promote development of balanced trade with Pakistan and to develop economic cooperation in all sectors.

He said that during the visit Chinese enterprises held trade talks with their Pakistani counterparts on expanding import of Pakistan's advantageous products, such as chrome ore, marble, cotton yarn, leather, Celestite and guar beans.

He said that the Chinese government always attached great importance to the bilateral economic relations and trade with Pakistan.

“China does not want trade surplus with Pakistan and will approach the bilateral trade imbalance issue in a serious and pragmatic manner,” he said.

On this occasion stalls of Pakistani advantageous products were also set up for the Chinese delegation members, who appreciated the fine and exportable quality of products.

http://www.dawn.com/2007/07/20/ebr9.htm

 

[Chrome9]

Daimler-Chrysler abandons Mercedes plant project ​

ISLAMABAD (July 20 2007): Daimler-Chrysler and its UAE-based Coastal Group has walked out of Pakistan with their $1.1 billion Mercedes Benz manufacturing plant project as the government's last ditch efforts to save the investment plan have failed.

Daimler-Chrysler, a group of two auto sector global giants and manufacturers of Mercedez Benz, had formed a joint venture with Coastal Group of UAE to set-up a Mercedez Benz manufacturing plant in Pakistan. The joint venture was to make initial investment of $1.1 billion for the project.

Obvious loss of winding up of the project is that Pakistan missed a big investor with $1.1 billion sure investment, but the real loss is non-realisation of an opportunity to establish industrial zone for Mercedez Benz from where Pakistan could secure at least $5 billion exports annually.

The government was fully aware of the importance of the project and for the same it opened up the diplomatic channel to bring the joint venture back to Pakistan with its project. It made direct and in direct contacts to the joint venture during the last few weeks, but could not convince its management to rethink of its decision of winding up the project from Pakistan.

In today's open-sky investment world. a group like Mercedez Benz manufacturer can play very significant role in making other groups/ investors feel that the destination it selected for investment was better than the others. This type of project could bring many other companies to invest in Pakistan. Some one year back, the joint venture entered in Pakistan with a big bang and, as was expected it got very encouraging response from the authorities.

Things were moving smooth and in the right direction. The joint venture was making all possible efforts to make sure that its project comes on ground as early as possible and then not only caters to Pakistan's market demand but also export its products from here to the regional countries.

It overcame many obstacles and managed to secure a piece of land stretching over 1200 acres near Shaikhupura in Punjab for the project as well. It was a good development and no one could believe that such a big project will hit snags and one day can finish altogether specially when president general, Pervez Musharraf and, prime minister, Shaukat Aziz, were directly involved and interested to make sure that the joint venture does not face any problem in completing the project.

It happened and subsequent developments forced the joint venture to wind-up its project which, of course, was still on the papers and go back to Germany.

The officials blame media for unceremonial exit of the joint venture from Pakistan and claim that some elements with vested interested played in their own way to create problems for the joint venture. They also claim that the elements damaged the credibility of the joint venture through a malicious campaign in print media.

http://www.brecorder.com/index.php?id=594661&currPageNo=2&query=&search=&term=&supDate=

NEO do you have any idea why they walked out in the last minute? I mean was it due to any fault of Pakistan or was it something more econmic-orientated?

 

[Neo]

Export Policy Order to be amended for nuclear arms provision ​

ISLAMABAD (July 21 2007): Pakistan will amend the 'Export Policy Order' for incorporating provisions of nuclear and biological weapons which can only be exported with the permission of 'Strategic Export Control Division (SECDIV), a wing of Ministry of Foreign Affairs.

Sources told Business Recorder here on Friday that proposal had been placed before the Cabinet specially convened to approve 'Trade Policy 2007-08' on July 18. They said that the Cabinet discussed the proposal in detail and allowed Commerce Ministry to amend 'Export Policy Order', incorporating the amendments.

Commerce Ministry in its summary had elaborated that "in pursuance of the export control of goods, technologies, material and equipment related to nuclear and biological weapons and their delivery systems Act, 2004, a Strategic Export Control Division has been created in the Ministry of Foreign Affairs with the authority to implement and enforce provisions of the Act".

The controls on export of nuclear and biological weapons would continue as per procedures and NoC/licence issued by the SECDIV. The ministry had proposed to amend Export Policy Order to incorporate provisions of the "Export control of goods technologies, material and equipment related to nuclear and biological weapons and their delivery systems Act, 2004".

Pakistan's export control legislation contains the following provisions:

-- Establishes controls over export, re-export, trans-shipment, transit or diversion of goods, technologies, material and equipment that may be used in the development of nuclear or biological weapons.

-- Affirms broad jurisdiction over Pakistani citizens, nationals abroad, foreign nationals within Pakistani territory, as well as any ground, ship, or air transportation registered in Pakistan, regardless of location.

-- Affirms central government's authority to administer rules and regulations of the export control law and the required licensing of exports, as well as an oversight committee to monitor the implementation aspects of the law. The law also provides plenary power to government officials with regards to inspection and confiscation of suspicious exports.

-- Establishes a comprehensive and wide ranging list of federally controlled goods that may be used in the design, development, production, stockpiling, maintenance, or use of nuclear and biological weapons. The law cannot be construed to restrict or prohibit "basic scientific research in Pakistan or other peaceful applications or relevant technologies." Basic scientific research is defined as "theoretical- or experimental work undertaken principally to acquire new knowledge of the fundamental principles of phenomena or observable facts."

-- Provides for licensing and record-keeping and monitoring provisions. The government maintains authority in framing and notifying licenses, with the power to approve licenses for goods and technologies for peaceful civilian intentions, unless the government determines otherwise. All exporters have a legal obligation to notify relevant authorities of suspicious exports or activities.

-- Provides for punitive provisions ranging from a 5 million-rupee (approx. $80,000) fine to fourteen years in prison, as well as forfeiture of property and assets. Any person who aids in such prohibited activities will be tried as if they actually committed the offence. Any person who diverts controlled goods or technologies to unauthorised users will be denied further export of those technologies or goods, as well as the privilege of exporting products into Pakistan for a specified period of time.

In 2004, National Assembly had passed legislation tightening controls on the export of weapons-making nuclear and biological technology, as well as missile delivery systems.

http://www.brecorder.com/index.php?id=594989&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Trade deficit swells to $13.528 billion ​

KARACHI (July 21 2007): Country's export target has been missed by 1.6 billion dollars, while its trade deficit has grown by 11.53 percent to all time high level of 13.528 billion dollars during the 2006-07 fiscal year in the wake of rising imports of cars, mobile phones and some other luxury items.

Official statistics revealed on Friday that the country's overall trade deficit jumped to the highest ever level of 13.528 billion dollars during 2007 as against 12.12 billion dollars during 2006, depicting an increase of 1.399 billion dollars.

The last fiscal year's trade deficit was also 4.128 billion dollars, higher than the government's projected trade deficit target of 9.4 billion dollars for the 2007 fiscal year.

According to statistics, the country also fell short of its export target of 18.6 billion dollars by 1.6 billion dollars, as overall exports stood at 17.011 billion dollars during the 2007 fiscal year. However, for the first time in the country's history, exports have crossed 17 billion dollar-mark.

During the last fiscal year, exports witnessed slow growth due to high international competition and overall exports have swelled by 3.40 percent or 556 million dollars to 17.011 billion dollars as compared to 16.451 billion dollars in 2006 fiscal year.

"The country's cost of doing business remained much higher than the other regional countries, including India and Bangladesh, which put a negative impact on the export," exporters said. Political and law and order situation were the other relevant factors, which impeded the country to achieve its export target, they added.

Heavy imports of luxury items have widened imports bill to 30.54 billion dollars during July-June of the last fiscal year as compared to 28.58 billion dollars during the 2006 fiscal year, witnessing an increase of 6.85 percent or 1.96 billion dollars during the 2007 fiscal year. The government had set imports target of 28 billion dollars for the 2007 fiscal year, which missed by 2.54 billion dollars.

Experts believe that imports of luxury items, especially cars, electronic gagets and other items, are the chief reason in giving rise to overall imports. "During the last fiscal year, the government did not take a single supportive step to bring down the increasing imports," they said.

They said the trade deficit in June had gone up by 95 million dollars to 1.23 billion dollars against May 2007, but decreased by 237 million dollars in June 2007 against 1.476 billion dollars of June 2006. In June 2007, exports declined by three percent to 1.557 billion dollars against 1.606 billion dollars in May 2006.

Economists show serious concerns over the rising trade deficit and see it as a serious threat to the country's economy. Criticising the government policies, Dr Shahid Hassan Siddiqui, a prominent economist, said: "The government is encouraging imports of luxury items by providing consumers financing through banks, which is the major reason of failure in the exports and trade deficit targets."

He said that now the various ministries were blaming each other for failing to achieve the export target, rising imports and widening trade deficit during the last two years. "Widening of trade deficit will be harmful in the future for economy and could have a serious impact on the country's balance of payments," he added. He suggested to the government to control the import of luxury items to arrest the raising trade gap.

http://www.brecorder.com/index.php?id=594992&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Thar coal mines development: President and Prime Minister determined to take country forward ​

RAWALPINDI (July 21 2007): President General Pervez Musharraf and Prime Minister Shaukat Aziz on Friday expressed their firm resolve that Pakistan would continue to move forward on the path of progress and development, undeterred by those who wish to create chaos and fear in the country through wanton and indiscriminate acts of terrorism.

The two leaders made these observations during a meeting in Rawalpindi on 'development and utilisation of Thar coal fields', according to a press release issued by President's Camp Office.

The meeting was attended by Minister for Petroleum and Natural Resources Amanullah Jadoon, Chief Minister of Sindh Arbab Ghulam Rahim, Minister of State for Petroleum and Natural Resources Naseer Mengal, Provincial Minister Sindh for Mines and Minerals Irfanullah Marwat and senior officials.

The President said that by the grace of Allah Almighty Pakistan had progressed at an unprecedented pace during the last seven years and has the will and the capacity to combat and defeat the forces of extremism and terrorism. The President underscored the importance of developing Thar coal for the benefit of the country and the province of Sindh.

He said Thar coal cannot only be a major contributor to power generation, energy security and import substitution for the country, but also would contribute to the economic development of the rural underdeveloped areas of Sindh. Through transfer of technology for large-scale mining it would also lead to skill development and job creation, he added. He said that continuous co-ordination between the Federal and Provincial governments was required and simultaneous efforts for studies and practical implementation needed in order to reduce the gap between planning and implementation. The President stressed the need to fast track the processes and remove all bottlenecks so that the full potential of Thar coal could be realised as soon as possible.

In its presentation the Ministry of Petroleum and Natural Resources informed the participants that at present the current share of coal in the primary energy supply was only 7 percent and it had been planned to double this in the energy mix to 14 percent by year 2020.

http://www.brecorder.com/index.php?id=595006&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

UK-based company working on 5.4 gw Bunji project feasibility ​

LONDON (July 21 2007): UK-based consultant, Mott MacDonald, is working with an international team to undertake feasibility study on the proposed 5.4 gw Bunji hydro scheme for the Water and Power Development Authority (Wapda).

The company said that the Bunji scheme had a budget of around $3 bn, and current plans foresee construction of a 180 metres high concrete dam on the Indus river. The project design envisages installation of 12 units of 450 mw capacity each. A further key aspect of the construction challenge is the design of headrace tunnels to be excavated through the main tectonic faults between the Indian subcontinent and Asia.

http://www.brecorder.com/index.php?id=595035&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Projects worth Rs 11 billion to be initiated in Northern Areas ​

ASTORE (July 21 2007): The Northern Areas Planning and Development Department has given approval to 32 development schemes worth Rs 11 billion to bring this backward area at par with rest of the developed areas of the country.

The sources in Planning and Development Department of Northern Areas told APP here Friday that the accelerated pace of development was undertaken at the behest of the federal government, which was taking keen interest in the development of Northern Areas.

Secretary Planning and Development Northern Areas, Attiq-ur-Rehman, gave approval to 32 development projects for Northern Areas at a meeting held here. Giving breakdown of the new development schemes the Northern Areas administration initiated, the meeting was told that power sector was being given priority while according the approval of the projects.

It was decided at the meeting that eight power projects would also be completed in all the districts of Northern Areas to overcome the shortage of electricity. An additional amount of Rs 40 million would be provided to Gilgit for the construction of RRC bridges and Rs 12.5 million would be spent on renovation of roads in the Skardu district.

http://www.brecorder.com/index.php?id=595069&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Engro Chemicals earns Rs 1.103 billion profit in six months ​

KARACHI (July 21 2007): Engro Chemical Pakistan Limited has earned Rs 1.103 billion profit after tax in the first half of 2007 (January-June 2007), translating an earning per share of Rs 6.56 as compared to Rs 944.587 million with EPS of Rs 5.85 in the corresponding period last year.

In an information, sent to Karachi Stock Exchange (KSE), it was said that the net sales of the company was Rs 8.119 billion in the period under review as against Rs 6.933 billion recorded in the same period last year. The company's profit before tax reached at Rs 1.574 billion in the first six months of 2007 as against Rs 1.340 billion in the same period in 2006.

http://www.brecorder.com/index.php?id=595085&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

Oil and gas sector attracts over $700 million during fiscal year 2007 ​

KARACHI (July 21 2007): The oil and gas exploration sector in Pakistan attracted an investment of more than $700 million during the nine months of the last fiscal year 2006-07, up by 23.6 percent over the same period last year.

According to Economic Survey data, 46 wells were drilled during July-March 2006-07, of which 19 wells by the public sector while 27 by the private sector. Out of the total drilled wells, 19 are in appraisal and development phase, 5 of them in public sector and 14 in private sector.

During July-March 2005-06, the public sector had drilled 18 wells while private sector 23, making a total at 41 wells at an investment of $567 million. During July-June 2005-06, the total number of exploratory wells were 64, of which 30 were drilled by public sector and 34 by private sector.

http://www.brecorder.com/index.php?id=595112&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Saturday, July 21, 2007

Pakistan’s merchandise trade up by 5.6% to $47.5 billion​

By Sajid Chaudhry

ISLAMABAD: Pakistan’s total international trade in goods has witnessed an increase of 5.59 percent with a volume of $47.551 billion in the last fiscal year 2006-07 as compared to the total trade of $45.031 billion.

Figures released by the Federal Bureau of Statistics (FBS) on Friday showed Pakistan’s exports during the last fiscal year 2006-07 to be $17.011 billion as compared to $16.451 billion in the previous fiscal year 2005-06 showing an increase of just 3.6 percent. The export target was set at $18.6 billion for the fiscal year 2006-07; however, this target was missed by $1.59 billion.

Imports of the country totaled at $30.540 billion in the last fiscal year as against $28.580 billion in the previous fiscal year projecting an increase of 6.85 percent. The country had a trade deficit of $13.528 billion for trade in goods during the last fiscal year when compared to the deficit of $12.129 billion in the fiscal year 2005-06 indicating an increase of 11.53 percent.

Actual set back was witnessed in exports during the month of June 2007 when country’s exports suffered a negative growth of 3.03 percent when exports dropped to $1.557 billion as compared to the exports of May 2007 of $1.606 billion. However, imports grew by 1.69 percent during June 2007 with a volume of $2.796 billion as compared to $2.750 billion in May 2007. Trade deficit increased by 8.30 percent to $1.239 billion in June 2007 as against the deficit of $1.144 billion in May 2007.

Comparison of trade in goods in June 2007 to June 2006 shows that exports of the country increased by 3.15 percent in June 2007 with total exports of $1.557 billion as compared to the exports of $1.510 billion in June 2006.

Imports in the month of June 2007 stood at $2.796 billion against the imports of $2.986 billion in June 2006 showing a decrease of 6.35 percent. Trade deficit witnessed a decrease of 16.07 percent in June 2007 with a deficit of 1.239 billion as compared to a deficit of $1.476 billion in June 2006.

According to an analysis by the Ministry of Commerce there have been a host of other factors affecting Pakistan’s export growth. These include stiff international competition in Textile products from China, India, Vietnam and Bangladesh in country’s major markets of the US and the EU; regional preferential arrangements such as NAFTA (North American Free Trade Area), CAFTA (Central American Free Trade Area), and the setting up of U.S. sponsored Qualified Industrial Zones (QIZs) in Jordan and Egypt which allow duty free access to their products, have also affected Pakistan’s competitiveness.

Among some other factors are: a fall in unit prices of the textile sector, the 5.8 percent average anti-dumping duties in the European market on Pakistan’s bed-linen exports and negative travel advisories on Pakistan. This last area is of grave concern as large international importers and chains are reluctant to visit Pakistan citing security concerns. This has led to trade diversion from Pakistan to Bangladesh, China and Vietnam who are our product competitors in textiles. In terms of export destinations, the major reduction was of an approximate $300 million in exports to Afghanistan and that too of mostly POL products. In other categories, exports of leather garments decreased by $167 million and exports of rice decreased by $33 million since the crop was not up to the expectations.

http://www.dailytimes.com.pk/default.asp?page=2007\07\21\story_21-7-2007_pg5_1

 

[Neo]

Sindh has become an investor friendly destination: CM​

KARACHI: Sindh has now become an investor friendly destination and the far-sighted policies initiated by the government of Sindh are attracting investment and boosting the process of industrialisation in the province.

Dr Arbab Ghulam Rahim, Chief Minister of Sindh said this while talking to Daily Times. The CM said that local and foreign investment has increased which was a healthy sign for the local industry.

“The policies of the government have restored the confidence of the international trade and investment organisations and massive development schemes bear testimony to this fact. This has also created a lot of jobs for our educated youth”, Dr Arbab added.

The Sindh CM also highlighted the initiatives taken by the government to strengthen the infrastructure development in all cities of the province. He said that new industries would be constructed on vast tracts of unused land in Karachi, which is owned by the government so that rapid development could take place.

“We are trying to provide all amenities and basic facilities to all the industrial estates in Sindh. The Sindh government is focusing on a pro-people agenda and a positive change can be seen in the form of massive industrialisation, increase in foreign direct investment and job creation now,” Dr Arbab Ghulam Rahim said. pr

http://www.dailytimes.com.pk/default.asp?page=2007\07\21\story_21-7-2007_pg5_19

 

[Neo]

Current account deficit crosses $7 billion ​

KARACHI (July 22 2007): Country's current account deficit widened by two billion dollars to 4.8 percent of the gross domestic product (GDP) and all time high level of seven billion dollars during the 2007 fiscal year as compared to around five billion dollars during the 2006 fiscal, mainly due to slow down in exports.

For the first time in the history of the Pakistan, current account deficit has reached 4.8 percent of the GDP against the target of 4.3 percent for 2007, showing the overall position of the country's inflows and outflows of payments.

Officials statistics revealed on Saturday that during the 2007 fiscal year, the country has faced 2.026 billion dollars worth current account deficit, as it has reached at 7.016 billion dollars at the end of the last fiscal previously stood at 4.99 billion dollars during the 2006 fiscal year.

"Increase in current account deficit has been contributed by trade, services and income deficit, besides huge payments of interest and dividends during the 2007 fiscal year," analysts said.

They said the government had failed to achieve the export target of 18.6 billion dollars, besides increasing imports. As a result, the country during last fiscal year faced a trade deficit of over 9.87 billion dollars (as per the balance of payment).

Statistics indicated that principal factors responsible for the widening of current account deficit included a widening trade deficit by 9.87 billion dollars, services deficit by 4.125 billion dollars and tremendous raise of 3.574 billion dollars in income deficit.

The overall deficit, including trade, services and income stood at 17.569 billion dollars against the current account transfers of 10.638 billion dollars. During the 2007 fiscal, the country's altogether income from abroad stood at 937 million dollars as compared to 4.511 billion-dollar payments of income to the overseas.

In addition, services sector payments reached 8.25 billion dollars against the receipt of 4.125 billion dollars in service account. The statistics show the State Bank of Pakistan (SBP) reserves increased by 2.568 billion dollars to 13.333 billion dollars till June 30 from 10.765 billion dollars.

Current account deficit without official transfers climbed to 7.516 billion dollars during the last fiscal from 5.671 billion dollars at the end of the 2006 fiscal year, depicting an increase of 1.845 billion dollars during the last fiscal.

"The major reason behind the rising current account deficit is failure in achieving export target, as the country has missed export target by over 1.6 billion dollars and as compared to it, the current account deficit also witnessed two billion dollars during 2007," said a leading economist Muzammil Aslam.

Had the export target been achieved, the current account deficit would not have exceeded the previous year's figures, he added. He said that during the 11 months of the last fiscal, current account deficit stood at 7.4 billion dollars, but the inflows of international aid in June had reduced the current account deficit.

Due to high inflows of foreign direct investment (FDI), the county's total foreign reserves had touched all time high level of 15 billion dollar-mark, he added. "Now we are back to the position of 1999 as our fiscal and current account deficit reached 10 percent of the GDP," he said.

It may be mentioned here that the State Bank of Pakistan (SBP) was already aware the situation as it had predicted in its third quarterly report that the current account deficit would be raised to seven billion dollars during the 2007 fiscal.

http://www.brecorder.com/index.php?id=595378&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

50 megawatts Lakhra power plant to be made functional in three months ​

KARACHI (July 22 2007): Sindh government has decided to take immediate steps to make the second coal-based power generation unit in Lakhra Power Plant, having a generation capacity of 50 megawatt, sources told Business Recorder on Saturday.

The new coal-fired power plant would be the second unit in Lakhra that would be made functional within the next two to three months. The unit will be the second preceded by another power production unit with a capacity of 50MW already functional in the plant and generating electricity from 25 to 30MW, they said.

The decision to make the second power unit functional at the earliest was taken in a meeting of Lakhra Coal Development Company officials, which was chaired by Sindh Mines and Mineral Development Minister Irfanullah Khan Marwat held on Thursday, to cater to the growing demand of the power in the province. It may be pointed out that there are three power units in Lakhra Power Plant each with a capacity of 50MW. But two units are not functional at present.

It is an economical and dependable source of energy and would be another step to achieve the objective of self-reliance in power sector, sources said while commenting on revival of the unit.

The meeting also reviewed the coal mining activities in the Lakhra coalfield and agreed to expand the coal mining and exploration operation in the field. For the expansion of exploration operation, provision of modern facilities has been decided to new areas of the field for development of coal deposits.

Irfan Marwat also granted the permission for acquiring new vehicles for the Lakhra Coal Development Company (LCDC) on the request of its officials keeping the logistics problems being faced by them in view.

Lakhra coalfield is spread over a land of 1309 Sq kilometres and located at a distance of about 93-km from Karachi. According to studies, it has estimated coal deposits of 1.328 billion tonnes. The coal of Lakhra is considered the most suitable for power generation and other application after the coal deposits in the Thar coalfield.

To accelerate the work pace on coal mining and exploration at Lakhra coal field, new equipment and machinery have also been decided to be purchased in the meeting for the fast pace exploration of the coal, sources said.

http://www.brecorder.com/index.php?id=595403&currPageNo=2&query=&search=&term=&supDate=