Pakistan Economy - News & Updates - Archive

[Neo]

BIT negotiations: Pak-US officials to achieve consensus on unresolved issues ​

WASHINGTON (August 09 2007): Pakistan and the United States have resolved to make efforts for progress in bilateral investment treaty (BIT) negotiations, Commerce Minister Humayun Akhtar Khan, who met with senior US Administration officials, stated at a press briefing.

We have resolved to focus and try to make progress in the bilateral investment treaty negotiations, which had been static in the last several months, he said. Minister Humayun Akhtar Khan was hopeful that the two countries would be able to achieve a consensus on a few unresolved issues in BIT negotiations but added no timeframe has been fixed as yet.

The minister, who also interacted with the American entrepreneurs, expressed satisfaction with the American investors growing confidence in the Pakistani economic potential and its consistent policies and in this context cited continued increase in US investment in various sectors in recent years. However, he added, the conclusion of a bilateral investment treaty would give additional comfort to the new investors.

The fact that Pakistan received a record 8.4 billion dollars investment last year signifies the tremendous trust and confidence of the international businesses in the strength of the economy. Pakistan, he said, expects greater inflows of American investment into potential areas of oil and gas, service sector and power generation. At the same time, the Commerce Minister noted Pakistan has also bolstered its exports from a mere 7 billion dollars a few years back to over 17 billion dollars last year.

Khan, who discussed progress towards creation of Reconstruction Opportunity Zones (ROZs) in Pakistan with senior American officials, sounded confident that these would help spur further growth in the Pakistani exports to the United States. A draft legislation on materialising ROZs initiative is expected to be tabled before the American Congress next month.

We are in touch with the House and Senate Finance Committees, which would handle the issue of ROZs, said Khan while also reporting US administrations full support for the initiative. The products from these special zones would enter the United States duty-free and are expected to boost Pakistan's efforts to reduce poverty as well as curb the problem of extremism through economic development.

http://www.brecorder.com/index.php?id=603211&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Government committed to facilitate investors: President ​

RAWALPINDI (August 09 2007): President General Pervez Musharraf on Wednesday said that the government was committed to facilitating all investors and would ensure the provision of every possible assistance and incentives to them.

The President was talking to a delegation of Merrill Lynch International led by its Chairman Kevan V Watts, who called on him at the camp office here on Wednesday. The President welcomed the delegation and appreciated their move for investment in Pakistan.

Kevan V Watts lauded the far-reaching economic reforms introduced by the Pakistani government, which not only helped stabilise the economy but also served as tremendous incentive to attract valuable foreign investment.

He said there was an excellent investment-friendly environment in Pakistan and thanked the Government of Pakistan for facilitating his group. Federal Minister for Privatisation and Investment Zahid Hamid was also present on the occasion.

http://www.brecorder.com/index.php?id=603257&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

German Consul General for boosting trade with Pakistan ​

SUKKUR (August 09 2007): German Consul General (CG) Hans Goachin Kandrelan has stressed the need to boost existing two billion dollars trade between Pakistan and Germany. In a meeting with District Nazim Syed Nasir Hussain Shah at the DCO Office here on Wednesday, he noted that textile machinery, chemicals, instruments and a lot of other goods could be imported to Pakistan from Germany.

Similarly, he said, rice, dates, leather goods and many other things could be exported from Pakistan to Germany. Hans Goachin mentioned several projects were initiated in Pakistan as joint venture, and there was great potential for more joint investment projects.

Syed Nasir Shah, on the occasion, apprised German CG that there was a scope for establishing agriculture-based industries in Sukkur. He assured investment environment for foreigners was suitable in the country. He said complete safety would be provided to investors besides required infrastructure facilities for setting up industrial units.

http://www.brecorder.com/index.php?id=603258&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Surveys on family budget, small home industries planned ​

ISLAMABAD (August 09 2007): The government has planned to conduct surveys on family budget, small and household manufacturing industries, water supply and sanitation and on wholesale and retails trade, hotel and restaurants to provide government the accurate statistics for planning, it is learnt.

Sources said that the Federal Bureau of Statistics (FBS) would conduct these surveys besides studies on forest products, input-output structure of crops including horticulture and floriculture, stockbrokers, money changers, exchange companies and inland water transport. The purpose of these studies and surveys is to have the exact statistics about these sectors. No government could have the concrete planning if it does not have the exact figures about different sectors, they added.

It is further learnt that the FBS has to conduct census in 2008-09 on construction and rent, rebasing of producer price index (PPI) and enhancing its coverage, social, recreational, community and personal services, mining & quarrying, electricity & gas distribution (including CNG, LPG) non-governmental organisations (NGOs), warehousing and storage besides study on use of agriculture machinery.

The National Education Census, that covers over 0.245 million educational institutions of all categories from primary to university level run by public, private, NGOs, autonomous bodies, armed forces & community & deeni madrassas etc from all over the country including FATA, Northern Areas and AJK, was conducted in 2005-06. The survey was completed in 7 months at a cost of Rs 100 million against provision of Rs 185 million.

A project on Rebasing of National Accounts at a cost of Rs 283.104 million has been approved by the CDWP, involving 25 surveys and studies to be carried out during the period 2006-07 to 2008-09 in areas not henceforth covered as well as updating of data which had not been updated since many years. List of surveys and studies include Pakistan Social and Living Standard Measurement (PSLM) survey.

The PSLM 2007-08 has been planned and field operation is in progress from July 2007 whereas time use survey 2006-07 is being conducted in collaboration with Finance Division in the country with a sample size of 20,000 households.

The overall aim of this survey is to find out the macroeconomic implications of unpaid care work (such as caring for children and sick people and general housework). Field operation and data processing of the survey is in progress. Preparations for National Population and Housing and Mauza Census are in progress. Mauza census will provide frame for the Agriculture Census 2010 along with information about social conditions and facilities available in Mauzas/Dehs.

The coverage of data on trade has been improved to cover all custom entry and exit points at the national level. Arrangements have been made with the SBP for releasing data on import & export of services and a business register is proposed to be set up to keep up-to-date data on industrial sector.

http://www.brecorder.com/index.php?id=603239&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

5,500 workers being trained for South Korean market ​

ISLAMABAD (August 09 2007): Overseas Employment Corporation (OEC), Ministry of Labour, Manpower and Overseas Pakistani is imparting training to 5,500 workers in line with market requirements to send them South Korea. Official told APP here on Wednesday that Korea is expected to import 5, 500 skilled Pakistani labour in this year.

He said OEC has so far trained over 3,800 Pakistani workers about Korean language and culture, adding, the remaining workers would be trained soon. After the training, official said Korean delegation will visit Pakistan to hold the test of applicants for recruitment.

He said the Korean Labour Ministry has already lauded the performance of Pakistani labour as they are facing quite less problems of Pakistani working force as compare to labour from other countries like India and Sri Lanka. He advised the people to avoid unauthorised technical trade test centres and private agents who are misleading the people for employment in Korea.

He added some private test centres and agents are charging huge amounts for conducting Korean language training test on pretext of sending them to Korea for employment.

Under a Memorandum of Understanding (MoU) inked between the governments of Pakistan and Republic of Korea, he said only Overseas Employment Corporation (OEC), a public sector organisation, has been authorised to recruit, train and send Pakistani workers to Korea on work visa. Around 7.5 million overseas Pakistanis live in various countries including United States, Canada, Europe, Middle East and Far East.

http://www.brecorder.com/index.php?id=603296&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Reforms create enormous growth in telecom sector: Prime Minister ​

ISLAMABAD (August 08 2007): Prime Minister Shaukat Aziz on Tuesday said deregulation and reforms in the telecom sector accompanied by high disposable income has created enormous growth in this field.

The Prime Minister was talking to the Chief Executive Officer of PTCL, Walid Irshaid who called on him at PM House. The Prime Minister said as a result of reforms, the foreign investment had rapidly increased, with a total number of mobile phones crossing 60 million, teledensity increasing by 40 percent and tariffs reduced dramatically for local and foreign calls thus benefiting the people.

The Prime Minister said thousands of new jobs had been created in the telecom sector and more would be created in future as this sector expands and grows. Walid Irshaid updated the PM on growth plans for PTCL on fixed lines and cellular business. He said the company would continue to expand and serve the market with new services and products. He said Pakistan telecom sector was attractive, growing and the de-regulatory and policy framework was world-class.

http://www.brecorder.com/index.php?id=602871&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

94,000 tons mango exports fetch $31.33 million ​

KARACHI (August 09 2007): Pakistan has earned $31.33 million till July 31, 2007 by exporting 94,000 tons mangoes to United Arab Emirates (UAE), Saudi Arabia and other Gulf and Far Eastern countries and Europe.

Sources in Pakistan Horticulture Development & Export Board (PHDEB) told Business Recorder on Wednesday that the country had achieved almost 75 percent of its 120,000 tons mango exports target.

They said that this year mango exports were started on May 20, 2007 and may end by September 15. About production of the mango crop, sources said that it might come to around 1.6 million tons this season, out of which 0.12 million tons, worth $39.99 million, may be exported, which would be a mere 7 percent of total output.

Sources said that UAE has been top importer of Pakistani mangoes with 45, 000 tons, worth $14.99 million, followed by Saudi Arabia with 16,000 tons, worth $5.33 million.

According to sources, 15,500 tons mangoes, worth $5.16 million were exported to the Gulf countries like Iran, Oman, Muscat, Kuwait, etc, while 11,500 tons, worth $3.83 million, went to the United Kingdom.

They said mango exports to European countries like France, Germany, Norway, etc, amounted to 4,000 tons, which fetched $1.33 million worth, and the rest 2,000 tons mangoes, worth $0.66 million, had gone to the Far Eastern states like Singapore, Malaysia, etc.

Sources said the country had two months viz August and September ahead to achieve the export target, which was increased by 20,000 tons with an additional worth of 6 million dollars this year.

Referring to the monthly 'Friday Meetings' of PHDEB with mango exporters, which was held on August 3 last, sources said that participants of the meeting expressed their satisfaction over mango exports to Europe as per new "weight standardisation" rules and urged Islamabad to extend the application of new laws to other countries, too.

They said that the exporters were appreciative of the new rules and asked the government to ensure the implementation of new laws more strictly, adding that in the wake of tough competition world-wide Pakistan should focus on infrastructure development, which covers plucking, pre-cooling, treatment, packing and logistics.

The meeting also urged the growers and exporters of the 'king of fruits' to use latest technology, coupled with proper technical know-how, to make the perishable produce more qualitative, sources said.

Future of mango export is bright, as the newly promulgated rules on the weight standards and fixation of exporting date by Islamabad were decisive to avoid irregularities in the export process, the meeting observed.

Meanwhile, Mohammad Iqbal, Chief Operating Officer (COO), PHDEB, said that efforts were underway to create better marketing conditions for Pakistani mango in the world in general and in Europe in particular.

"We have kicked off promotion of mango exports in Germany by displaying it in the superstores, and the same would be done in other European countries soon", he said.

About reasons behind low quantity mango exports to Europe, he said: "Reasons are not concerned with the issues like quality standards set by the World Trade Organisation (WTO) or EurepGap (European retailers protocol for good agricultural practices) but they are related to the logistics problems". He said: "Besides higher airfreight for mango export to Europe the cargo aircraft has low capacity as compared to that of the ships, which are used for exports to the Middle Eastern countries.

"Less capacity in the aircraft and higher freight rates minimise the quantity of mango exports to Europe", he added. "What they (Europeans) want us to ensure is the application of EurepGap from growing to exporting stage and certified farms and orchards", Iqbal said.

"We are going to audit certification of EurepGap in Punjab by the end of August and would soon make it possible in Sindh", he added. It may be recalled that the ministry of commerce had introduced new amendments {S.R.O 397 (1)/2007} in the Export Policy Order, 2006 to ensure a better value of the Pakistani produce in European markets and clear the image of country across the globe.

Being encouraged by the new set of rules about packaging and weight variations the mango exporters had demanded of the ministry of commerce to also introduce legislation on the standardisation of the quality of commodities.

http://www.brecorder.com/index.php?id=603212&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

All set to start second phase of constructing 20 dams in NWFP ​

ISLAMABAD (August 08 2007): The NWFP government is all set to start second phase of constructing 20 small dams in the province, which will be funded by the federal government from the Public Sector Development Programme (PSDP), sources told Business Recorder on Tuesday.

The sources said that the Frontier government will inaugurate the construction work of Loughar Dam Project in District Karak on Wednesday. The sources said in the first phase the NWFP government had inaugurated the Dur Malik Dam in Lachi, Kohat district. The Rs 336 million project will irrigate 2,500 acres of land and would provide drinking water to a population of 11,200 of the area, the sources said.

The total cost of constructing 20 small dams is over Rs 3.6 billion. However, the individual cost of each project is not more than Rs 500 million. The total area to be irrigated by the dams has been estimated at 9, 250 acres of land in various districts of the province. The sources said 20 small dams projects have already been approved in principle by the Planning Commission.

Ministry of water and power is the sponsoring agency of Loughar Dam Project that would cost Rs 227 million. The NWFP irrigation and power department is the executing agency of the project, the sources said.

The proposed reservoir, with a storage capacity of 3860-acre feet will provide assured supplies to a command area of 1,274 acres throughout the year. The project envisages the construction of 650 feet long and 100 feet high embankment dam, the sources added.

According to the sources, the NWFP government is of the view that an amount of Rs 276 billion has been allocated to the water sector projects in the Medium Term Development Framework (MTDF) 2005-10 including an amount of Rs 218 billion for federal development programmes and all the 20 small dams should be funded from this allocation. This demand has been accepted by the Deputy Chairman Planning Commission Engineer Dr Akram Sheikh in principle. However, the Planning Commission would look into the dams individually after the compilation of PC-I of the each project.

The sources said the NWFP irrigation system comprises 83 flow irrigation schemes, 45 lift irrigation, 7 water storages and 762 tube wells. The total length of canals is about 4335 kms covering 2.277 million acres of agriculture land. About 0.284 million acres area will also come under the cultivation by completion of Gomal Zam Dam, Pehur High Level Canal, Gandialli dam and some other small dams.

The sources said small dams could attract funding from international donors like World Bank (WB) and the Asian Development Bank (ADB). However, the sources gave no detail that how much amount has been pledged by the ADB or WB for the 20 small dams' project. However, the sources said Loughar Dam Project has no foreign funding either from the ADB or the WB.

http://www.brecorder.com/index.php?id=602883&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Wapda forms company to raise Rs50 billion: 969MW project​

ISLAMABAD, Aug 8: The Water and Power Development Authority (Wapda) has set up the Neelum-Jhelum Hydroelectric Project Company (NJHPC) as a special purpose vehicle (SPV) to raise about Rs50 billion for the 969MW project in Azad Kashmir for protecting Pakistan’s priority rights over the Neelum River.

A senior Wapda official told Dawn that the estimated cost of the project on its completion was expected to increase by 41 per cent to $2.14 billion, although its contract had been awarded to a Chinese consortium, comprising China Gezhouba and the CMEC China, at Rs90.90 billion ($1.5 billion).

He said a meeting presided over by Minister for Water and Power Liaqat Ali Jatoi was informed on Tuesday that the NJHPC had been registered with the Securities and Exchange Commission of Pakistan as an SPV to raise about half of the project cost in foreign exchange through bonds and loans.

The company will be run by a seven-member board of directors led by Wapda Chairman Tariq Hamid.

The remaining amount – half of the project cost – will be provided by the federal government. The official said a lot of efforts made by Wapda and the federal government could not succeed in arranging foreign exchange component of the project cost and hence the new project company was established for the purpose.

Based on the bid price of $1.5 billion (Rs90.90 billion), the actual project cost phasing over a period of eight years would in effect reach Rs128.4 billion ($2.14 billion) on completion. This also included interest payments of more than Rs29 billion, he said.

The plan also suggests that the final cost of the project will be more than 105 per cent higher than Wapda’s contract estimate of Rs62.25 billion ($1.04 billion).

The government has released Rs5 billion as mobilisation advance to the executing agency to start the project without further delay. Pakistan will need to spend $87 million for the start-up operations in the first year of the project’s implementation.

On completion, the project will generate electricity at a cost of Rs1.91 per kilowatt hour (unit), which is much higher than the engineers’ estimate of Rs1.42 per unit, but significantly lower than the tariff currently being offered by the government for thermal power projects.

According to Wapda’s cash plans, the project will require $125 million (Rs7.5 billion) in the second year of implementation, followed by another $235 million (Rs14 billion) in the third year.

In the fourth year, Wapda will spend $271 million (Rs16.3 billion) and $382 million (Rs23 billion) in the fifth year. In the sixth year, $444 million (Rs26.6 billion) will be spent on the project and then about $348 million (Rs21 billion) in the seventh year.

In the final year of implementation, the project will eat up another $248 million (Rs14.8 billion), leading the total cost of the project to $2.14 billion (Rs128.37 billion), although the bid quoted by the lowest contractor is Rs90.9 billion.

The fate of the 969MW Wapda project has been hanging in balance for eight years although it is considered crucial to secure Pakistan’s priority rights over Neelum waters – a tributary of the Jhelum River – threatened by the Indian move to use its waters for power generation and diversion.

Bidding for the project was held about a year ago. Wapda received three bids for the project. The lowest $1.3 billion bid given by the Chinese consortium was recommended by Wapda to the federal government for approval.

The project has already been delayed by more than eight years because of lack of public sector allocations for the project. Several rounds of bidding were held and cancelled for one reason or the other. The project should have been started in 1999 as originally planned. It is estimated to take at least eight years for completion.

Pakistan had stopped India more than a year ago from completing a 22km tunnel that sought to construct a storage-cum-power project and divert Kishanganga (Neelum) waters to Wullar Lake in violation of the Indus Waters Treaty 1960.

Later, India offered to alter its project design but Pakistan rejected that plan as well. Like the Chenab, the Jhelum River of which Neelum is an integral part, belongs to Pakistan under the 1960 treaty.

Under the treaty, India could not change the flow of the Jhelum River even for power generation that may affect any Pakistani power project. But if Islamabad fails to construct the project and there is no power project in Pakistan for that particular river, India could divert the river for run-of-the river project but without any storage.

Under the treaty, Pakistan has exclusive rights to use water of western rivers – Indus, Jhelum and Chenab – and eastern rivers – Ravi, Sutlej and Beas – have been assigned to India.

http://www.dawn.com/2007/08/09/ebr1.htm

 

[Neo]

ADB links $400m loan to SECP restructuring: Market reforms​

ISLAMABAD, Aug 8: The Asian Development Bank (ADB) has linked the release of $400 million loan for the Pakistan’s second generation market reforms to institutional independence and capacity-building of the Securities and Exchange Commission of Pakistan (SECP), changes in some of its laws and the commission’s conversion into the Financial Services Commission of Pakistan (FSCP).

The bank has asked the government to draft and submit to the parliament a law codifying the FSCP. This law would establish FSCP based on SECP and strengthen its enforcement powers by enhancing its independence, governance and accountability.

The law should be a framework law that incorporates by reference to sector-specific laws such as those governing securities markets and intermediaries, insurance, private pension funds, and non-banking financial companies. The FSCP will have the powers to administer these laws.

Under the ADB conditions, the government will have to continue with the exemption from capital gains tax on income earned from individual investment in shares to facilitate long-term capital formation. However, a turnover tax on such investment will be introduced to reduce the high volume of speculative short-term investment by individuals.

The second generation reforms also seek the FSCP to be in charge of regulation and supervision of non-banking financial institutions (NBFIs) by clearly codifying its powers, functions, governance and accountability in line with international best practices.

In recent years, financial sector regulatory bodies have been granted greater independence in many countries to ensure that they can professionally perform their statutory functions in the public interest and be largely free from political interference. “An agency responsible for regulation and supervision of NBFIs and markets should, in general, have authority and capacity comparable to that of the agency in charge of banking and for similar reasons,” the board of directors of ADB said in its recommendations for the release of the loan.

The SECP has to introduce competitive remuneration for senior officers to fill all existing vacant positions. The commission has been asked to designate specific positions for commissioners responsible for law, accounting and auditing given the importance of these areas for effective financial sector regulation and supervision.

Another commissioner should be charged with assessing the economic impact of regulatory initiatives.

By June 2009, FSCP will undertake a self-assessment of compliance with international best practices in the regulation and supervision of securities markets and private pension funds.

“This assessment could provide the basis for formulating another round of policy reforms to address remaining weaknesses, if any,” the bank said.

The government will have to address tax policies that impede the formation of holding companies. This is likely to encourage the establishment of holding companies, including financial institutions to facilitate sound risk management practices and supervision.

The FSCP will adopt regulations on the reporting requirements of holding companies that own or control NBFIs. The reporting should comprise ownership structure and relationship of companies within the holding company group, disclosure of inter-company and related party transactions and public disclosure of audited financial reports in accordance with international accounting standards.

To facilitate investor protection and capital formation, ADB seeks replacement of the Securities Ordinance of 1969 with a new substantive law that provides a legal framework for modern securities markets. The FSCP has to be mandated with adequate legal powers and responsibilities for the regulation and supervision of the securities markets and intermediaries, private placements, public offers of listed and unlisted securities, corporate governance practices and related matters in line with international best practices.

For this, the government will have to grant FSCP the power to approve or disapprove audit firms authorised to audit NBFCs, listed companies and publicly tradable companies. This will strengthen SECP’s (FSCP) capability to ensure quality and consistency in the financial information available to investors and the regulator.

The FSCP is to enhance market transparency and best execution of customer orders by requiring the stock exchanges to establish an inter-market surveillance committee. The committee would meet regularly to coordinate stock market surveillance and oversight of securities that are traded on more than one stock exchange.

The ADB also seeks the stock exchanges to prepare plans for self-regulation for SECP (FSCP) approval. These plans would identify the functions to be performed by the exchanges in their capacity as self-regulatory organisations under the Securities Law and clearly define sub-plans for areas such as listed companies, market surveillance and on-and-off-site inspections of professional market participants.

These sub-plans should lead to the adherence to sound business practices and applicable laws and regulations including financial responsibility requirements and quality of execution of trade on behalf of customers.

The government is to clarify SECP’s legal mandate for its powers, functions and responsibilities over NBFCs and services.

As an intermediate solution, amendments will be made in the Company Ordinance to empower SECP to regulate mutual funds and strengthen SECP’s powers to establish prudential requirements for NBFCs, the ADB demands.

http://www.dawn.com/2007/08/09/ebr3.htm

 

[Neo]

Europe offers huge market to boost exports ​

LAHORE: Europe is the most lucrative business destination with a huge market for Pakistani exports. “The market is so enormous that Pakistan’s exports could be doubled within a short period and with modest efforts”.

This was stated by Kashif Younas Mehar, head of a 10-member delegation of the Lahore Chamber of Commerce and Industry on return from a nine-day successful business tour of Germany and France.

Kashif Younas said that the IT sector of Pakistan alone could boost exports, but a lack of proper information was a major impediment.

“Not only would Pakistan gain from a huge European market but vice versa Europe too would gain access to Afghanistan and the land locked Central Asian States through Pakistan once both the sides develop bilateral trade relations at the desired levels.”

It would be a win-win situation for both sides, he added. Kashif said that the biggest trouble, now-a-days being faced by Pakistan is the Western media’s negative and biased news coverage which is tarnishing the image of Pakistan.

“The government would have to work on a war-footing to counter this situation otherwise Pakistan would lose business in the European Markets.”

The head of the LCCI delegation said that the Europeans have no doubts about Pakistan’s potential but only due to the tarnished image of Pakistan thanks to the western media they hesitate to undertake any joint venture or invest in this country.

“The Europeans, particularly the Germans are much impressed with the GDP growth witnessed by Pakistan and its economic reforms.”

They know well that Pakistan’s economic growth is the fastest in the region but the media avoids highlighting this achievement.

Kashif said that the LCCI delegation had visited a number of business organisations besides having a number of one-to-one meetings and in all these meetings the core issue was Pakistan’s falsely tarnished image.

The head of the LCCI delegation lauded the role of commercial attaches appointed in Pakistan embassies in Germany and France saying that these people are putting in their best efforts but all their endeavours are defeated by negative portrayal of Pakistan in the west.

Viqar Khilji, Commercial Consular at the Pakistan Embassy in Berlin, Feroze Junejo, Head of Commercial Division at the Pakistan Consulate in Frankfurt, Tariq Puri Economic Minister in Brussels and Jehanzeb Khan, Commercial Consular in Paris deserve much appreciation for their commendable job. These people are serving the country wholeheartedly he said.

“Marble, steel, mining, heavy machinery meant for construction and port handling, copper extraction, energy, textiles and fruits; particularly mangos, are a few strong areas through which Pakistan could earn billions of dollars in foreign exchange. He said that Brussels, the capital of the European Union, has a huge demand in IT sector, and with a little focus on the IT sector our exports could reach unprecedented levels. Pakistan could be a befitting market after China and India, he reiterated.

The head of the LCCI delegation said that the visit was so successful that a high-level business delegation of 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.

The LCCI delegation also had meetings with German Association of Small and Medium-sized Enterprises and the Foreign Trade Department of the Chamber of Commerce, Berlin State.

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

Ms Barbara Bonrath Kaster, Head of Asia, Americas, Western Europe division, gave a detailed briefing to the LCCI delegation. stressing the need for chalking out a joint strategy to promote business-to-business interactions.

http://www.thenews.com.pk/daily_detail.asp?id=67498

 

[Neo]

Mega projects discussed ​

LAHORE: Punjab Chief Minister Chaudhry Pervaiz Elahi and State Bank of Pakistan Governor Shamshad Akhtar in a meeting on Wednesday discussed the ongoing development process, mega projects and financial discipline.

The SBP chief called on Punjab chief minister at the chief minister’s secretariat and discussed the financial matters of the province.

The chief minister said available resources are being utilised in a transparent manner through an effective system of monitoring for consolidating the process of social development in the province. He said Punjab has become a focus of attention of international financial institutions due to which a record increase has been registered in local and foreign investment.

He said the development budget for education, health, agriculture, infrastructure and other sectors had been increased substantially. He said all-out efforts had been made for eliminating poverty and unemployment and to make Punjab prosperous in the light of Vision 2020.

He said reforms introduced in education, health, industries and other sectors of development have resulted in relief to the masses. He said the government has taken practical measures for the development of the agriculture sector and socio-economic uplift of farming community.

He said subsidy on the power tariff for tube well, fixation of flat rate of Abiana, due returns to the farmers for their produce and soft-term loans to the cultivators at union council level have left a positive impact on agri-economy of the province.

The chief minister further said in order to provide better health facilities to the people, emergency service has been modernized while all health centres in the province have been upgraded and availability of doctors, paramedical staff and medicines have been ensured. He said the Rescue-1122 has been very successful in providing relief to the victims of accidents and calamities and now its scope is being extended to all major cities of the province.

He said the monetary policy will be helpful in maintaining financial discipline.

The governor appreciated the reforms process introduced in education, health, agriculture, industries and other sectors in the province. She said Punjab is playing an important role in socio-economic development of the country due to which jobs are being generated and poverty rate has been reduced.

http://www.thenews.com.pk/daily_detail.asp?id=67506

 

[Neo]

Incentives for manufacture of telecom equipment in Pakistan ​

ISLAMABAD: The government will soon offer a 10-point incentive package to foreign investors for manufacturing telecom equipment in Pakistan to save foreign exchange, a senior official said Wednesday.

The official from the Telecommunication Ministry said consultations have been held with foreign investors and a special committee is finalising a package in the light of their suggestions.

“The incentive package will be announced soon after its approval at the highest level,” he said, pointing out that if the plan was implemented it would be first time telecom equipment including mobile sets would be manufactured locally.

“The incentives will include duty free import of machinery, smooth availability of raw material, reduction in corporate taxes, concession in power supply rates, human resource development, consistency in policies and other measures,” said the official.

According to statistics, telecom equipment worth around $1 billion was imported by Pakistan during fiscal 2006-07, 26.7 percent more than the imports during the year before that.

Imports of mobile phones alone amounted to $506 million during July to March in the last fiscal year, showing an increase of 26 percent over imports in the corresponding period during 2005-06.

The official said a Centre would be established in Islamabad at a cost of $4.5 million to develop human resource to cater to the needs of manufacturing of equipment in the telecom sector.

He said Nokia has already established a testing facility and similarly facilities would be set up at other places across the country.

The official said the ministry has also evolved a strategy to set up centers of excellence in universities to impart training in the field of telecom industry.

He said over 400 scholarships have so far been awarded to students in the top-level universities such as Ghulam Ishaq Institute and National University of Science and Technology.

The students of far-flung areas would be provided with opportunities to bring them into the mainstream and enable them to utilize their potential to optimum level in the industry.

As a result of promotion of manufacturing sector thousands of jobs would be available for trained people in the competitive sector, he said.

According to business circles, there are more than 1,75,000 mobile phone shops running their business across Pakistan, generating employment for over 6,45,000 people.

Telecom sector is becoming a major employer of skilled jobs as its exponential growth has resulted in creation of 80,000 jobs directly and 500,000 jobs indirectly in the recent years. At present, telecom sector accounts for two per cent of Pakistan’s GDP.

http://www.dailytimes.com.pk/default.asp?page=2007\08\09\story_9-8-2007_pg5_9

 

[Neo]

Pakistan to import 1,100MW electricity from Iran in 2009, NA told​

* Some members walk out from session over power outages

ISLAMABAD: The Water and Power Development Authority (WAPDA) will import 1,100 megawatts of electricity from Iran in 2009 for supply to Gwadar and other coastal areas of Balochistan, Water and Power Minister Liaqat Jatoi told the National Assembly on Wednesday.

Jatoi said the contract for import of electricity had been given to Iran’s Tavanir Company. The minister was responding to questions by opposition members on what steps the government was taking to check the frequent power outages in the country.

Jatoi told the house that the country was expected to produce 8,728MW a year by 2010. He said that the public and private sectors were carrying out several hydroelectric and thermal projects to meet Pakistan’s electricity demand. He said that his ministry planned to increase power generation in the current year by installing two rental gas turbine power stations. He said one power station of 150MW capacity would be installed in Lahore and another of 136MW capacity at Bhikki. He said the Lahore power station had been commissioned, while the Bhikki power station would be commissioned in October.

Jatoi said that Larkana Division-II had reported 44.4 percent line losses in 2005-06 and 43.5 percent in May 2006-07. He said that WAPDA had fined power thieves Rs 1120.212 million in 2005-06, Rs 725.728 million in 2004-05 and Rs 683.831 million in 2003-04. He said that 28,652 electricity theft cases and arrest of 1,289 power pilferers were recorded in the last three years.

He said the Lahore Electric Supply Company had reported Rs 170,66.67 million line losses and the Gujranwala Electric Power Company Rs 6,132.22 million in line losses in the last two years.

To a question, Jatoi said the Multan Electric Power Company (MEPCO) had received 3,390 applications for agricultural tube well connections between June 1 and December 2006. He said that MEPCO had issued 742 tube well connections so far and planned to issue another 4,400 connections in the current financial year. He said the ministry had no plans to fix uniform rates of electricity up to 500 units.

Some members from the Muttahida Quami Movement, the MMA and the PML-N staged a token walkout from the session to protest against the lingering power shortage in Karachi.

http://www.dailytimes.com.pk/default.asp?page=2007\08\09\story_9-8-2007_pg7_15

 

[Neo]

Growth momentum may hold: Banks warned of Basel II challenge ​

KARACHI (August 10 2007): Future growth projections of the economy suggest that the current growth momentum in the banking system may prevail in the near future, while the implementation of Basel II would be a great challenge, both for the regulator and the banks.

The central bank, in its Banking System Review (BSR) for the 2006 calendar year, said: "The banks are expected to maintain their previous growth trend during the 2007 calendar year on the back of steady flow of workers' remittances and substantial foreign exchange inflows in the form of foreign direct investment (FDI)".

The higher loan growth during the last couple of years, which also resulted in outstanding performance of the banking system, might have become a concern as well as a challenging target, the central bank said. "The expected slow down in loans' demand in near future may put some pressure on net interest margins of the banks," said the central bank.

Besides weeding out the smaller banks, they helped in increasing the healthy competition, improving the governance standards, and promoting efficiency and productivity, the BSR said.

Going forward, the implementation of Basel II would be a great challenge both for the regulator and the banks. Basel II is not only aimed at strengthening the risk management standards, but is also helping the banks to align their risk with the capital, it said. The BSR further said: "In line with the roadmap, the parallel run has started in July 2006."

The central bank said the demand from the small and medium enterprises (SMEs) and agriculture segments of the economy, which had great potential, would also pave the way for loan growth. However, the promising growth in deposits and the increasing capital base might encourage banks to increase their business volumes in their core business activity to maintain the trends in their profits and return on assets (RoE).

On capital front, the central bank said since the banks would further need to increase the capital base to meet the rupees four billion requirements by the end of 2007, the strengthening of solvency profile of the banking system was expected to continue for this year too.

The maintenance of the growth trends would become a challenge for the banks in their quest of maintaining the RoE, especially when the capital base was also increasing, it said.

The central bank said that capital position of the banks was expected to further fortify the enhanced minimum capital requirement (MCR) for the next couple of years and sustained earnings support. Growing mergers and consolidation, which had greatly shaped our banking system during the last few years, were expected to further consolidate and contribute towards the stability of the banking system, said the central bank.

http://www.brecorder.com/index.php?id=603542&currPageNo=1&query=&search=&term=&supDate=