Pakistan Economy - News & Updates - Archive

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Pakistan likely to achieve cotton production target​

KARACHI: Pakistan would likely achieve the target of 15 million cotton bales for the crop season 2007-08 as the country has already achieved production of 14.6 million bales a few years back.

The cotton growers said on Friday, the cultivation, which was kicked off from May 1, was getting momentum in cultivation areas of Punjab and Sindh.

A senior trader Ghulam Rabbani said the federal government has fixed the cotton production target at 15 million bales for the new crop. He said the major role in achieving the target is the cultivation of BT type cotton in the country.

BT cotton with having greater resistance value against cotton virus is being cultivated in many parts of cotton sowing areas in Sindh including Sajawal and Tando Adam and in Dera Ghazi Khan, Dunyapur and areas adjoining river belts in Punjab as this variety needs large quantity of water.

He said BT cotton requires far less pesticide application and is more productive than conventional varieties. He said National Institute of Biotechnology and Genetic Engineering (NIBGE), Faisalabad has developed IRFH-901 and Centre of Excellence for Micro Biology (CEMB) has evolved CIM-482 BT seed varieties.

He said around 45 percent of the total cultivation in the country is BT type cotton. Nearly 90 percent of this type is cultivated in Sindh and about 30 percent is cultivated in Punjab.

He said irrigation water is abundantly available in the canals and the cultivation is continuing at full pace in the cotton belts of Punjab and Sindh. Dry weather conditions are conducive for the cotton plant and the country would be able to harvest a bumper crop next crop season, he added.

He said September is crucial for the cotton crop as it bears fruit these days, therefore it is important for the cotton growers to handle the cotton virus attacks with utmost care and help of agricultural scientists.

He said this variety first introduced in Australia, then it comes to India, where Dupont got rights and allocated around Rs 24 million for research and development in order to make this variety, environmental friendly. He said India’s cotton variety, Shanker 6 is the outcome of the research, a division of Bayer Pharmaceutical, and Germany also got rights for Fibre Max variety of cotton.

He said the federal government has fixed cotton sowing target at 8.031 million acres, 6.326 million acres for Punjab and 1.581 million acres for Sindh. NWFP and Balochistan will share the remaining 0.14 million area for cotton production. He said Punjab is likely to produce over 11 million bales while Sindh will produce three million bales.

He said in Punjab, cotton would be sown on 6.326 million acres and Sindh cultivate cotton on 1.581 million acres. NWFP and Balochistan will share the remaining 0.14 million area for cotton production in 2007-08.

He said the cotton researchers have recommended several seed varieties, which need less irrigation and their produce, is of better quality. They are MNH-786, NIAB-111, CIM-496, 543, 473 and BH-160. He said two institutes of the Pakistan Atomic Energy Commission (PAEC), NIBGE and CEMB, Lahore are working on the project.

He said the growers also followed the instruction of spraying weeds standing in the fields with effective weedicides in order to fight the mealy bug pest, which attacks the tiny cotton plants.

He said the growers followed the instructions of agriculture scientists as they used one litre of chloropyriphos mixed with 100 litres of water to spray on the crop besides minimise the use of water while fighting spotted and American bollworm.

http://www.dailytimes.com.pk/default.asp?page=2007\07\28\story_28-7-2007_pg5_1

 

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100% equity participation for foreign insurance firms​

ISLAMABAD: The Ministry of Commerce has allowed 100 percent equity participation to foreign companies to undertake life and non-life insurance business in Pakistan.

In this regard, the commerce ministry on Friday issued Order No. 1(43)/2007, stating that in continuation to ministry’s Public Notice Nos. 1(38)/89-Ins.I, dated 21st August, 1990 and 1(19)/92-Ins-I dated 24th September, 1993, the federal government has decided to allow 100 percent equity participation to foreign companies to undertake life/non-life insurance business in Pakistan. But the companies will be subject to fulfill some conditions.

Foreign companies shall be required to bring in a minimum of $ four million in foreign exchange; out of which not less than $ two million should come from abroad.

There will be no restriction on the number of branches and no restriction of foreign companies as to whom they shall employ. They shall be given national treatment in extending all the facilities to them as enjoyed by local companies.

All other conditions, under Insurance Ordinance 2000 and instructions issued there under from time to time will apply.

New insurance policy had sought that accident and health business of general insurance companies be exempted from levy of both federal excise duty of five percent and federal insurance fee of one percent. However, the federal government, in the budget 2007-08, has allowed exemption from five percent federal excise duty to the health insurance sector to expand the health insurance sector in the country.

The participation of foreign insurance companies in the life and non-life insurance sector would help broadening of base of the insurance services to the local as well as foreign investors.

New insurance policy aims at increasing penetration, removing impediments to insurance industry’s development and outlining a more rational role of the public sector in line with international practices. The percentage of life insurance in the country, which presently is 0.28 percent, is among the lowest in the region and the immediate goal has been set at to enhance it to one percent in a period of three years. Under the new insurance policy insurance cover against terrorism, crop insurance, cover against earthquake and micro insurance facilities would available in the country. An analysis carried out by the Ministry of Commerce indicates that insurance industry had failed to penetrate rural areas and provide insurance cover to socially deprived people. In order to address this, two initiatives would be taken. Firstly group insurance would be made compulsory, so that all workers would be compulsorily insured under the labor laws.

http://www.dailytimes.com.pk/default.asp?page=2007\07\28\story_28-7-2007_pg5_2

 

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Total foreign investment rises to $8.42 billion

ISLAMABAD: Total foreign investment reached 5.9 percent of GDP during 2006-07 as against 3.5 percent of GDP in the same period last year 2005-06, said a report released by the Investors Relations Desk, Debt Office, Ministry of Finance on Friday.

Total foreign investment reached at an all time high in the country’s history and amounted to $8.42 billion or 5.9 percent of GDP during this period as against $4.49 billion or 3.5 percent of GDP in the same period last year. When viewed against last year’s figures for the same period the current performance appears to present a totally different picture. Total investment has registered an astounding growth of 87.6 percent over an already high base of last year.

Further break down of foreign investment shows that foreign private investment (a major component of overall foreign investment) amounted to $6.94 billion against last year’s figure of $3.87 billion – an increase of 79.3 percent. Similarly, foreign direct investment amounted to $5.12 billion or 3.6 percent of GDP in the fiscal year 2006-07 as against $3.52 billion or 2.8 percent of GDP in the same period last year, showing an increase of 45.6 percent. Portfolio investment, on the other hand, stood at $1.82 billion or 1.3 percent of GDP (which include GDRs of MCB Bank and UBL Bank amounting to $150 million and $559.7 million, respectively) as against $0.35 billion last year – a staggering increase of 417.9 percent.

http://www.dailytimes.com.pk/default.asp?page=2007\07\28\story_28-7-2007_pg5_7

 

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EU ban on seafood export costs $20m​

KARACHI: The suspension of seafood export to European Union (EU) has deprived the country of over $20 million during the current financial year.

If the ban is not lifted, the country will suffer a loss of $80 million in foreign exchange cause closure of many processing plants would create problems for employment and hundreds of thousands of fishermen will be deprived of their livelihood, Pakistan Seafood Industries Association (PSIA) warned.

Speaking at a press conference Chairman PSIA Hanif Khan accompanied by Vice Chairman PSIA Faisal Iftikhar and others said that industry has suffered heavy losses and lost potential buyers due to this ban. They said that real adverse impact of the suspension would appear in peak season like August, September and October when there are bulk landings of brown shrimp and kiddy shrimp, which have no market other than Europe. “In absence of approval to export to Europe, the processors and exporters will not be able to buy these items from the market,” they added.

They declared that seafood industry has reached on a point of no return due to the negligence and unsuitable approach by the concerned government departments. Marine Fisheries Department (MFD) had suspended the approval of all eleven processing plants for export to EU for small deficiencies, which have since been removed and compliance report have been submitted to the MFD but no sign of revival of export is in sight before the season starts from August.

In fact, most of the deficiencies are related to MFD itself, conditions in harbour and on board the fishing vessels for which the responsibility lies with the MFD, they noted. Mr Khan described the action by MFD only against the processing plants is unfair and unjustified and said that traceability and cold chain are new issues and they have been implemented when auctioning/processing starts.

He rejected the impression by MFD that the ban has been imposed by EU as the final report of EU says ‘non compliant establishments should be suspended from the list of EU approved establishments until such time as deficiencies have been corrected’. Mr Iftikhar said that the problem lies with the concerned departments which are unable to discharge their responsibilities as the maintaining hygienic conditions is the job of the provincial departments, however seafood processing plants had to suffer for the faults of other stakeholders. It is on part of Fishermen Cooperative Society (FCS) and Karachi Fish Harbour Authority (KFHA) to maintain cleanliness in the entire harbour and upgrade fishing fleet. Our industry has always to suffer due fault at their end, he said. Association representatives said that is seems that MFD is unable to understand the difficulty of the industry and the importance of the issue as the export of seafood stands fourth after textile, rice and leather, but no government authority is bothered to come to its rescue.

http://www.dailytimes.com.pk/default.asp?page=2007\07\28\story_28-7-2007_pg5_8

 

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Rs eight billion Wapda Sukuk bond deal signed: three power projects to be financed ​

LAHORE (July 29 2007): An agreement between Wapda Second Sukuk Company Limited and lead arrangers National Bank of Pakistan, Standard Chartered Bank and Dubai Islamic Bank Pakistan was signed at Wapda House here on Saturday. The ceremony was witnessed by Wapda Chairman Tariq Hameed and other senior officials.

Member Wapda Abdul Qadeer Chaudhary, National Bank of Pakistan (NBP) Senior Executive Vice President Masood Karim Sheikh, Dubai Islamic Bank (DIB) Country Business Manager Zafar Masood and Standard Chartered Bank Pakistan Head of Client Relations Imran Ahad signed the agreement on behalf of their respective organisations.

Wapda Chairman Tariq Hameed told media men at the agreement signing ceremony: "This is the second issue being launched by Wapda to raise a sum of Rs 8 billion required for three projects. The first Sukuk bond was launched for the Mangla project."

He expressed hope that the Sukuk issue would be beneficial for both Wapda and the banks acting as lead arrangers. Tariq said that total tenure period of the issue was ten years, with a grace period of four years. The projects, to be financed by raising this bond, are Khan Khwar (72 megawatt), Allai Khwar (121 megawatt) and Duber Khwar (130 megawatt). Total cost of these projects is Rs 13.449 billion.

He said that individuals, institutions, trusts, employees' funds, corporate bodies including Islamic banks, modarabas, insurance companies and non-Islamic banking financial institutions can purchase the certificates. Sukuk is the plural of an Arabic word 'Sek', which means 'shariah compliant financial instrument'.

http://www.brecorder.com/index.php?id=597874&currPageNo=1&query=&search=&term=&supDate=

 

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Dispute over estimated gas reserves: Ministry locked horns with Planning Commission ​

ISLAMABAD (July 29 2007): The Ministry of Petroleum and Natural Resources has denied the allegations of Planning Commission that the former did not obtain independent view on the estimated reserves of Manzalai field, located at Gurjuri area in District Karak (NWFP).

The joint venture comprising MOL Pakistan Oil and Gas (operator 10 percent, OGDCL 30 percent, PPL 30 percent, POL 30 percent and Government Holdings Limited 5 percent, had discovered gas and condensate at Manzalai-I.

The Economic Co-ordination Committee (ECC) of the Cabinet on June 17, 2004 has already allocated 215 mmcfd gas from this field to SNGPL. After undertaking further appraisal through extended well test (EWT), the MOL firmed up gas reserves on the basis of which full field development plan has been planned according to which the field is capable of producing at plateau rate of 340 mmcfd gas.

According to official documents seen by Business Recorder, when the petroleum ministry had sought the comments of the Planning Commission on a summary regarding allocation of additional gas from this field to SNGPL, it doubted gas estimates.

"In the summary, the gas production of Manzalai Gas Field has been estimated by the MOL and no independent view has been solicited," the Planning Commission observed.

According to the Planning Commission, in the 'Energy Security Action Plan' it was decided that Pakistan must develop capability of determining the size of underground reserves and not permit any unscrupulous element to under estimate and inflict the losses to national exchequer.

Therefore, the ministry had been advised to develop reserves estimate capabilities so that production profile could be established. However, the petroleum ministry is of the view that in the light of 'Energy Security Action Plan' it adopted three-pronged strategy for reserve assessment in a prudent manner which is as under:

(i) The OGDCL has been asked to induct reservoir specialist capable of such assessments.

(ii) The petroleum ministry has started taking third party reserve certification from experts of international repute before declaration of commercially of fields.

(iii) The Petroleum Concessions director general is also trying to develop in house skill for reservoir estimation through capacity building program.

The ministry also claimed that development plan of Manzalai field was based on an independent third party reserves certification by the Exploration Consultants of UK besides JV partners in the block, including the OGDCL which were actively involved in the process.

It is pertinent to note that the ECC had approved the proposal of the ministry in which it was suggested that 125-mmcfd additional gas from Manzalai Gas Field be placed at the disposal of SNGPL.

http://www.brecorder.com/index.php?id=597857&currPageNo=1&query=&search=&term=&supDate=

 

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2006-07 textile products exports up by 5.27 percent ​

ISLAMABAD (July 29 2007): Exports of textile products amounted to $10.757 billion in 2006-07, up by 5.27 percent from $10.218 billion of previous year. Official figures released here by Federal Bureau of Statistics (FBS) on Saturday showed that export of raw cotton, cotton cloth and bedwear declined, while a marginal growth was witnessed in other products during the year.

On monthly basis, the exports of textile products witnessed a negative growth of 3.13 percent to $931.140 million in June from $961.221 million over May. The data showed that raw cotton export was down by 53.03 percent in June against May; cotton cloth 21.42 percent, cotton corded or boomed 87.57 percent, bedwear 19 percent, towels 17.62 percent, and tents, canvas and tarpaulin 30.76 percent.

Annual export data for 2006-07 showed that export of cotton yarn witnessed a growth of 3.10 percent, cotton corded or combed 24.33 percent, yarn other than cotton yarn 82.92 percent, knitwear 12.17 percent, towels 1.25 percent, tents, canvas and tarpaulin 77.53 percent, readymade garments 5.32 percent, artificial silk and synthetic textile 114.55 percent, made-up articles excluding towels bed wear 13.40 percent, and other textile material 16.53 percent.

Statistics showed that export of raw cotton declined 25.58 percent last year from 68.151 million in 2006 to 50.720 million in 2007. Export of cotton cloth declined by 4.30 percent from $2.108 million in 2006 to 2.017 million in 2207 while export of bedwear declined from $2.038 million in 2006 to 1.9558 million in 2007.

According to monthly export data, the export of cotton corded or combed declined from $330 million in May 2007 to $115 million in June 2007 and cotton cloth from 155.839 million to $144.427 million.

http://www.brecorder.com/index.php?id=597866&currPageNo=1&query=&search=&term=&supDate=

 

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SPI up by 7.41 percent year-on-year basis ​

ISLAMABAD (July 29 2007): The weekly-based SPI inflation was up 7.41 percent over the same period of last year, hitting hard the low income group, as on week ending July 26, it remained 9.85 percent for low income group and 5.03 percent for those earning over Rs 12,000 per month.

Moreover, there was a perpetual rise in the prices of core food items such as wheat, tomatoes, pulses, oil and vegetable ghee. The statistics released by Federal Board of Statistic (FBS) showed Sensitive Price Indicator (SPI) up by 7.40 percent compared to the same period of last year, with 0.23 percent surge in a week. The SPI inflation was recorded 155.79 on July 26 against 154.75 on June 28.

The inflation was 9.41 per cent during the week under review for the income group of Rs 3000 to Rs 5000 and 8.21 for those having income between Rs 5000 to Rs 12,000.

The SPI bulletin, based on data collected for about 53 items from 17 centres showed that 17 items registered increase, 11 declined, while price of 25 items remained unchanged.

Further analysis of data showed that 20 items were dearer by double-digit over last year. These included wheat flour 13.20 percent, masoor pulse washed 26.20 percent, gram pulse washed 10.66 percent, rice Irri-39.37 percent, vegetable ghee loose 42.38 percent, milk powder 21.59 percent, vegetable ghee (tin) 27.34 percent, cooking oil (tin) 27.17 percent, match box 26.15 percent.

Among these items, in a short span of one week, the prices of tomatoes increased by 29.82 percent per kg, masoor pulse washed 1.40 percent, mustard oil 0.69 percent, wheat flour 0.08 percent, gram pulse washed 0.59 percent, and washing soap 0.69 percent.

The average price of cement in various cities remained around Rs 232.25 per bag. Cement price was recorded Rs 238 in Rawalpindi, Rs 240 in Islamabad, Rs 215 in Lahore, Rs 245 in Karachi, Rs 235 in Hyderabad, Rs 213 in Peshawar and Rs 270 per bag in Quetta.

http://www.brecorder.com/index.php?id=597869&currPageNo=1&query=&search=&term=&supDate=

 

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Banks recover Rs 156 billion agriculture loans ​

KARACHI (July 29 2007): Banks have recovered Rs 156 billion agriculture credit, up by 29 percent during 2007 as compared to Rs 120 billion in the 2006 fiscal year. On the instruction of the State Bank of Pakistan (SBP), the banks stepped up agri loan disbursement, which is up by 24 percent during the 2007 fiscal.

"Bumper production of different crops has contributed a major role in the increase of agri credit recovery, while commercial and specialised banks also took some measures to raise the recovery," said a banker.

The statistics show that despite the record disbursement of Rs 168 billion, overall outstanding amount has declined by two percent, as the commercial and other agri loan provider banks have improved their recovery, they added.

The central bank statistics, made available to Business Recorder, showed that during the 2007 fiscal, overall recovery of agriculture loan had gone up by Rs 35.542 billion to Rs 156.136 billion during the 2007 fiscal, as compared to Rs 120.594 billion during the 2006 fiscal year.

Five leading commercial banks, including Allied Bank Limited (ABL), Habib Bank Limited (HBL), MCB Bank, National Bank of Pakistan (NBP) and United Bank Limited (UBL) have contributed major share in the overall recovery, as they have recovered Rs 76.77 billion during the 2007 fiscal as compared to Rs 56 billion in 2006 fiscal, depicting an increase of Rs 20.73 billion during the last fiscal.

Loan recovery by the country's largest specialised bank for agriculture loans, Zarai Taraqiati Bank Limited (ZTBL) has increased by Rs 7.82 billion to Rs 54.08 billion during 2007 as against the recovery of Rs 46.25 billion during the 2006 fiscal year.

Agriculture loans recovery of Punjab Provincial Co-operative Bank Limited (PPCBL) stood at Rs 6.48 billion up by Rs 493 million from Rs 5.99 billion. In addition, other 14 domestic private banks have recovered Rs 18.797 billion during the last fiscal as compared to 12.307 billion, depicting an increase of Rs 6.94 billion during the 2007 fiscal.

http://www.brecorder.com/index.php?id=597863&currPageNo=1&query=&search=&term=&supDate=

 

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Petroleum, machinery and food dominate $30.540 billion imports ​

KARACHI (July 29 2007): Petroleum, machinery, food, agriculture and chemical, metals and transport groups are the heavy weights in country's more than $30.540 billion imports during fiscal year 2006-07. According to the data of Pakistan's external trade compiled by the Federal Bureau of Statistics released here on Saturday.

Import recorded a rise of 6.85 percent during July-June 2006-07 over last year's $28.580 billion. Exports also recorded a minimal rise of 3.40 percent to $17.011 billion during July-June 2006-07 compared to last year's $16.451 billion.

The yawning trade gap has touched $13.528 billion due to rising imports during the last fiscal year. Pakistan imported petroleum products worth $7.339 billion during July-June of 2006-07 including $3.733 billion of petroleum items and $3.606 crude oil.

Machinery imports stood second in the list amounting to $6.605 billion, followed by import of fertilisers, pesticides, plastic goods and medicines worth $4.385 billion during the period under review. Palm oil, sugar, pulses and tea were dominant in food group imports which was valued at $2.711 billion during July-June of last fiscal year.

Similarly, iron and steel and its scrap secured lion share in the import of metal group. Transport group imports stood at $2.364 billion during last fiscal. Textile group imports surged by 21.28 percent to $1.556 billion during the period under review.

Exports during June, 2007 amounted to Rs 94.436 billion as against Rs 97.457 billion in May, 2007 and Rs 90.849 billion during June, 2006 showing a decrease of 3.10 percent over May, 2007 but an increase of 3.95 percent over June, 2006. In terms of dollars the exports decreased by 3.03 percent in June, 2007 $1.557 billion when compared with May, 2007 $1.606 billion but increased by 3.15 percent as compared to June, 2006 $1.510 billion.

Exports during July-June, 2006-2007 totalled Rs 1.031 trillion as against Rs 984.841 billion during the corresponding period of last year showing an increase of 4.73 percent. Imports into Pakistan during June, 2007 amounted to Rs 169.551 billion as against Rs 166.867 billion in May, 2007 and Rs 179.659 billion during June, 2006 showing an increase of 1.61 percent over May, 2007 but a decrease of 5.63 percent over June, 2006.

In terms of dollars the imports increased by 1.69 percent in June, 2007 $2.797 billion as compared to May, 2007 $2.750 billion but decrease by 6.35 percent as compared to June, 2006 $2.986 billion. Imports during July-June, 2006-2007 totalled Rs 1.851 trillion as against Rs 1.711 trillion during the corresponding period of last year showing an increase of 8.22 percent.

Based on the provisional figures of imports and exports the balance of trade in June, 2007 was (-) 75,115 million in terms of Rupees and (-)1,239,006000 in US dollars. The balance of trade figures cumulative from July-June, 2006-2007 were (-) 820,388 million in terms of Rupees and (-)13,528,762000 in US dollars.

http://www.brecorder.com/index.php?id=597891&currPageNo=2&query=&search=&term=&supDate=

 

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Grand Hyatt Hotel construction: BNP signs contract with Chinese company ​

ISLAMABAD (July 29 2007): A leading Pakistani developer, BNP (Pvt), Limited, part of Bismillah Group, has signed a contract worth millions of dollars with the largest Chinese construction company, China State Construction Engineering Company Corporation, for the construction of 380 room Grand Hyatt hotel, service apartments, office complex and a retail village adjacent to Convention Centre.

Explaining the details at the signing ceremony of the contract at a local hotel Jeff Evans, the Project Director said that the main tower would be 45-storey high, the tallest building in Islamabad. This tower would house the world-renowned 5-star Grand Hyatt hotel. Each of the other two towers would be 23 storey high and will have luxury apartments including pent houses and first rate office space. Besides, retail outlet, housing world brands, would also be developed which is primarily meant to serve Islamabad and adjoining areas.

http://www.brecorder.com/index.php?id=597905&currPageNo=2&query=&search=&term=&supDate=

 

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Exploring investment opportunities: German high-level trade team coming in November ​

LAHORE (July 29 2007): A high-level business delegation of the German Near and Middle East Association, Germany's oldest organisation for bilateral economic relations between Germany and countries of the Near and Middle East region will visit Pakistan in November 2007 to explore business and investment opportunities.

This was stated by German Near and Middle East Association Chief Executive Ms Helene Rang, while addressing eight-member LCCI delegation to Germany. Helene Rang informed the LCCI delegation, being led by LCCI Executive Committee Member Kashif Younas Mehr that besides bilateral trade opportunities, both Pakistan and Germany have huge potential for investment in various sectors and this potential could be tapped with a little sector-specific effort.

The LCCI delegation, comprising Mian Misbah-ur-Rehman, Mian Muzaffar Ali, Mohammad Ayub, Mian Shahid Raza, Hakim Ali Bhatti, Faisal Saud and Bilal Arshad Bajwa, also had meetings with German Association of small and Medium-sized Enterprises and the Foreign Trade Department of Chamber of Commerce, Berlin state.

A large number of businessmen and representatives of various German industries attended the meeting. The presence of German businessmen was enough to make the point that they want to do business with their Pakistani counterparts.

Both sides expressed their satisfaction over the overall outcome of the visit since direct business to business contacts are very essential for exploring new opportunities and establishing long-term contacts with German economy. There was a general agreement that there is a great potential for further growth, especially in imports into Germany.

Earlier, Ms Barbara Bonrath Kaster, Head of Asia, Americas, Western Europe division, gave a detailed briefing to LCCI delegation on German Association of Small and Medium-sized business and stressed the need for chalking out a joint strategy to promote business-to-business interactions.

Speaking on the occasion, Kashif Younas Mehar said that a lot of progress could be made on trade front through identification of new tradable items and this is possible through the active engagement of the chambers of commerce and industry of the two sides and by arranging single country exhibitions.

The participation of Pakistani exporters in the international trade fairs in Germany and vice versa can also expand trade between the two countries. He said Pakistan offers good scope for investors in information technology, telecommunication, infrastructure, textiles (value addition), oil & gas, water & power, food & food processing, SMEs, engineering, tourism & services. We are particularly keen in German investments that could provide transfer of technology to Pakistan.

Mehar said that Pakistan is energy deficient and cannot sustain 7.8 percent GDP growth rate without meeting its energy needs. He urged the German businessmen to invest in energy projects in the designated industrial parks.

He said the Lahore Chamber of Commerce is particularly keen in German investments that could provide transfer of technology to Pakistan and help Pakistan become a knowledge-based economy. The LCCI delegation also visited KaDeWe, a major department store in Berlin and appreciated the way the goods were put on display.

http://www.brecorder.com/index.php?id=597971&currPageNo=1&query=&search=&term=&supDate=

 

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Borrowing only for funding main projects, reforms: Prime Minister ​

ISLAMABAD (July 29 2007): Prime Minister Shaukat Aziz on Saturday said that ongoing reforms are essential for economic progress and prosperity. He was talking to his financial team members including Advisor to the Prime Minister on Finance Dr Salman Shah, Minister of State for Finance Omar Ayub Khan.

New Secretary Finance Ahmad Waqar and Special Secretary Finance Dr Ashfaq Hassan Khan in a meeting at the Prime Minister's House here on Saturday afternoon. The Prime Minister said that the economic turnaround achieved by Pakistan is largely due to the prudent structural reforms in every facet of economic activity that has created opportunities, jobs and growth.

He said that some examples in this regard are the telecom sector, financial services, agriculture, oil and gas, that have resulted in increased investment, creation of large number of jobs and emergence of a growing middle class, which is fuelling demands.

Shaukat Aziz said "consistency and continuity of policies will ensure that the benefits we have achieved so far will increase even further, both in creating opportunities and enabling equitable growth so that all segments or society see an improvement in their quality of life".

The Prime Minister said that much more needs to be done that will require continued efforts by all ministries and departments including the very crucial role by the Ministry of Finance.

He said that the Finance Ministry has to re-orient and modernise its working so that available resources are utilised in a prudent manner and the processes are made simple.

The Prime Minister also appreciated the fact that Pakistan is no longer under any IMF programme and is becoming a more self-reliant economy. He said "while we are borrowing for funding important projects and reforms, we are doing so prudently and we are improving our overall debt and economic indicators."

Shaukat Aziz also appreciated the working of the Debt Management Unit and its interaction with investors all over the world. He also appreciated the Unit's efforts to update the Bond and Equity investors on latest developments in Pakistan and keeping them abreast of changing developments in the country.

Dr Salman Shah and his team updated the Prime Minister on the latest economic indicators as well as the revenue and expenditure patterns and the various initiatives being undertaken to improve the functioning of the Ministry of Finance.

The Prime Minister appreciated these measures and assured the Ministry of his full support. He congratulated the new Finance Secretary Ahmed Waqar and Special Secretary Finance Dr Ashfaq Hassan Khan on their appointment to their new assignments.

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Trade ties with Mauritius to be consolidated: minister ​

ISLAMABAD (July 29 2007): Commerce Minister Humayun Akhtar Khan has said that the bilateral relations between Pakistan and Mauritius would be further consolidated with the signing of Preferential Trade Agreement (PTA).

He stated this at a reception held to mark the Sixth Round of Joint Working Group (JWG) on Trade and Investment established between two brotherly countries of Pakistan and Mauritius at Port Louis on July 27 and 28.

Humayun Akhtar was received at the SSR International Airport by Minister for Foreign Affairs Madan Dulloo, International Trade and Co-operation, High Commissioner of Pakistan to Mauritius. Syed Hasan Javed and other high officials of International Trade and Cooperation.

The Pakistani side was led by Additional Secretary, Ministry of Commerce Nasim Qureshi whereas the Pakistan delegation was included Jamshed Khan, Joint Secretary, Ministry of Commerce, Khalid Mahmud, Chief (Export) Central Board of Revenue, Mrs Raheela Tajwar, Deputy Secretary, Ministry of Commerce, Tariq Nawaz Janjua, Deputy Secretary, Ministry of Textile, Muhammad Qazafi Rind, Section Officer, Ministry of Commerce and Azhar Saeed Butt, Vice President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

The Mauritius Broadcasting Corporation (MBC) and journalists from all leading newspapers were present at the SSR International Airport. All the leading newspaper, have given wide coverage to this highly significant visit of the Federal Commerce Minister. Press clippings along with their unofficial English translations are being sent to all the relevant quarters by this Mission.

Tauritian side was led by Anand P. Neewoor, Secretary for Foreign Affairs who had led the Mauritian delegation for the Fifth Session of the JWG which took place in Islamabad 11-13 January, 2007.

The Mauritian side comprised of Asad Bhuglah, Director Trade Policy, Amedee Darga, Chairman Enterprise Mauritius (EM), K. Dhabee, Solicitor General of the Attorney General's Office, representatives from the Customs Department, Ministry of Finance and other relevant Ministries.

Anand Neewoor in his opening remarks stated that the signing of the PTA signifies of the qualitative upgradation of the bilateral relations between Pakistan and Mauritius. Nasim Qureshi, in his opening remarks said that the early conclusion of the PTA negotiations and the eventual signing of PTA underlines the goodwill that exists between the two countries.

Before start of the formal proceedings of the 6th round, the Pakistani delegation led by Nasim Qureshi called on the Minister of Foreign Affairs International Trade and Co-operation Madan Dulloo.

The minister appreciated the work of technical experts of the PTA from both the sides and expressed the hope that bilateral relations between Pakistan and Mauritius will be further cemented with the signing of the PTA on Monday, July 30, by the two ministers.

The Minister for Commerce is expected to pay courtesy calls on the Prime Minister of Mauritius, Dr Navin Ramgoolam, Deputy Prime Minister, Dr Rasheed Beebeejaun and other high political dignitaries on Monday, July 30.

Commerce minister will also unveil the name plate of the Quaid-e-Azam Mohammad Ali Jinnah street in Plaine Verte, Port Louis in the presence of Asraf Dullul, Minister of Housing and Lands, James Burty David, Minister for Local Government and Hon. Reza Issack, Lord Mayor of Port Louis.

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Uplift schemes in Balochistan being implemented ​

QUETTA (July 29 2007): Provincial General Secretary Pakistan Muslim League, Saifuddin Kibzai on Saturday said the government was implementing development schemes worth billions of rupees in the province. Taking to a delegation here, he said the government was taking effective measures to resolve problems of the people.

The government would take all possible steps to ensure timely rehabilitation of flood victims, he added.

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