Pakistan Economy - News & Updates - Archive

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Thar power plants: Chinese group willing to re-start work ​

KARACHI (August 10 2007): Shenhua Group of China, which had abandoned the coal-based power project in due to disagreement on power tariff, has again shown interest in setting up two power plants of 350 MW each in Thar.

Sources in Sindh Mines and Mineral Department told Business Recorder here on Thursday that Shenhua Group had sent a green signal that in case of finalisation of agreed tariff rates, it could re-start work on the project. They said ministry, too, wanted the Chinese group to resume the work on the two power plants at the earliest.

This would not only provide much needed 700 MW power to the electricity-deficient areas, but would also save a huge amount of money already spent on feasibility and other works, they said. The other option, which is under consideration, was to resume work on the two power plants by handing them over to newly established Coal Mining Company, which was under the administration of the Federal government, said the sources.

The most viable option, available to the government - Shenhua Group and Coal Mining Company - would be chosen after consultation with the Federal and provincial authorities. It may be pointed out that Shenhua Group started work on Thar coalfield in 2002. It spent over 100 million dollars to conduct two investigation studies about the viability of the project, the sources said.

"After concluding its investigation and preparation of a feasibility report, the group was all set to construct the proposed power plants, but the crucial issue of tariff rate on power generation halted the project," said the sources.

The Mines and Mineral Department sources revealed that the group had stopped work in 2004 prior to the official announcement, which was made in the 2007. The group officials had left the project, but negotiations on tariff rates continued and finally Shenhua announced to abandon the project.

Earlier, Sindh Mines and Mineral Development Minister Irfanullah Khan Marwat held Water and Power Development Authority (Wapda) responsible for withdrawal of Shenhua from coal-based power projects in Thar.

He said the tariff rate was already decided with Shenhua at 5.67 cents per kilowatt hour (KWH), but Wapda disagreed with the rate and revised it unilaterally at 5.39 cents per KWH, compelling the group to leave the project.

It is hoped that Shenhua might re-start work on the project when the committee, set up by President Pervez Musharraf, comprising Irfanullah Marwat and Mukhtar Ahmed of National Electricity Power Authority (Nepra), would finalise the recommendations of tariff rate on coal-based power projects.

Had the Wapda accepted 5.67 cents per KWH rates and not insisted on its revised rate of 5.39 cents per KWH, then it would have been cheaper, sources said. The said that at present the most reasonable tariff rate would be between eight and 10 cents per KWH, which was far higher than the previously decided rates.

http://www.brecorder.com/index.php?id=603571&currPageNo=2&query=&search=&term=&supDate=

 

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'Public-private partnership can accelerate economic development' ​

ISLAMABAD (August 10 2007): The pace of economic development in Pakistan can be accelerated by developing a strong partnership between the public and private sectors, as was done by the developed states of the world to accelerate the tempo of progress in their countries.

These views were expressed by the Chief Executive Officer, Infrastructure Project Development Facility (IPDF), Aijaz Ahmad, while addressing a seminar on "Draft Public Private Partnership Standardised Contractual Provisions" here on Thursday.

The seminar was organised by the IPDF to initiate a consultative process between the representatives of public and private sector organisations for finalising a framework for Public-Private Partnership (PPP).

The IPDF has been established by the government of Pakistan, under the aegis of the ministry of finance and economic affairs, to facilitate PPP projects by providing expertise and hands-on support to public sector implementing agencies. In addition, the government has also constituted a PPP policy task force under the chairmanship of Advisor to the Prime Minister on Finance, Dr Salman Shah to provide a forum for the stakeholders to formulate recommendations on the various components of the PPP framework, ie legislation, risk management framework, standardisation of contractual provisions and viability gap funding.

Besides IPDF CEO Aijaz Ahmed, other speakers included Dr Asad Mi Shah, Member (Infrastructure) Planning Commission Ejaz Ishaq Khan, Legal Consultant IPDF; Ikram ul Haque, Manager Legal Affairs IPDF; and Adil Anwar, Head IPDF's Legal Affairs. A number of leading bankers, investors, chartered accountants, lawyers, insurance executives and other stakeholders attended the seminar and also actively participated in discussions and presented their opinion over the draft PPP framework.

In his welcome address, Dr Asad Ali Shah, Member (Infrastructure) Planning Commission, said that the world progress lies in the strong interaction between the public and private sectors. In Pakistan, the government alone cannot undertake infrastructure projects due to financial constraints and thus there was a need for active participation of the private sector in the national development effort. Infrastructure services can have a direct and immediate effect on living standards and poverty alleviation efforts. Potable water and sanitation can dramatically reduce debilitating and life-threatening diseases, while electricity can transform the quality of life for urban and rural citizens, better roads can connect isolated communities to markets and modem modes of telecommunication can empower poor people by putting them in touch with markets, services and the society at large, he added. Government is also working on the establishment of PPP cells at all terms.

The IPDF Legal Consultant, Ejaz Ishaq Khan, stated that with a view to facilitating the public and private parties to expeditiously achieve financial close and efficiently implements the PPP agreement, IPDF has prepared draft standardised PPP contractual provisions in the light of international best practices.

"A public-private partnership is a medium to long-term relationship between the public and private sectors, involving the sharing of risks and rewards of multi-sector skills, expertise and finance to deliver desired policy outcomes," he explained.

M. Ikram Ul Haque, Manager Legal Affairs IPDF, was of the view that the tight fiscal constraints require innovative approaches, away from the traditional role of the government as the service provider, to ensure that the massive investment needs are financed with the assistance of the private sector.

http://www.brecorder.com/index.php?id=603634&currPageNo=1&query=&search=&term=&supDate=

 

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'Furniture Pakistan' firm to promote furniture clusters ​

KARACHI (August 10 2007): Furniture Pakistan, a company based on the concept of "Private-Public-Partnership" has been established to promote furniture clusters in the country. It is part of the Ministry of Industries, Production and Special Initiatives' (MOIP&SI) initiative to support different industrial sectors of Pakistan.

An initial amount of Rs 590 million has also been approved by the Ministry to start the implementation of proposed development projects in the Furniture Sector Development Strategy (FSDS).

Small and Medium Enterprises Development Authority (Smeda), which was assigned the task to prepare a comprehensive strategy for the development of furniture sector of Pakistan, is leading the project. The process was initiated in June 2006.

As part of this effort, a private sector led Strategy Working Group (SWOG), consisting of all major stakeholders of furniture sector from all major furniture clusters of Pakistan was formed. SWOG consists of 20-25 members from the cities/clusters of Gujrat, Chiniot, Lahore, Karachi, Peshawar, Rawalpindi and Gujranwala. Value chain participation in SWOG was also assured including manufacturers, exporters, retailers, designers, academia, craftsman, associations and forestry, etc.

After a comprehensive consultation process during the last one-year (including visits of some foreign experts and benchmarking with international market leaders), a detailed strategy was formulated and approved by MOIP&SI in May 2007.

In the first phase of the project, one Common Facility, Training and Manufacturing Centre (CFTMC) will be established at Chiniot and one at Peshawar. Groundwork has been initiated and it is expected that these centres will be established in a time period of 1-2 years.

Approval for building 75 solar kilning units for wood seasoning has been given under the same initiative. These units will be installed in all major furniture clusters of the country. The government will also provide financial support to furniture manufacturers/exporters to participate in different international trade fairs and exhibitions so that exports base of the sector could be strengthened through penetration in the international export markets.

Japan International Cooperation Agency (Jica) and International Development Centre of Japan (IDCJ) in their report: "Toward a Vision 2030: Direction of Industrial Development in Pakistan" had observed that promoting clusters can serve to strengthen SME competitiveness and thus promote economic prosperity in the area.

The Japanese study had proposed the promotion of export-oriented SME clusters since they are the most efficient way to upgrade SMEs in Pakistan. Cluster has been defined as a geographic concentration of interconnected companies and institutions in a particular field, encompassing linked industries and other entities important for competition.

Clusters have advantages of forward linkages, backward linkages, technological/information spillover and collective actions. Study reviews the current status as well as issues related to clusters in Pakistan, and examines what sort of support is necessary to strengthen the competitiveness of clusters.

In Pakistan, there are a number of cities where similar kinds of industries are geographically agglomerated. Major clusters in Pakistan exist in: Sialkot - surgical goods, sports goods, Karachi - leather, jems and jewellery, Gujrat - electric fan, Wazirabad - cutlery, Faisalabad - textile, and Chiniot - wooden furniture.

However, according to the study, clusters have several stages of development. If the cluster does not reach the stage where it can enjoy the agglomeration effects, it is just an assembly of individual enterprises, and thus it is not very meaningful to support it as a cluster.

Three categories called export-oriented clusters (surgical goods and sports goods in Sialkot), domestic-centered clusters (electric fans in Gujrat) and under-developed clusters have been identified.

Assisting clusters can contribute to the enhancement of the competitiveness of SMEs in clusters, as well as clusters as a whole, since clusters in Pakistan do have advantages of agglomeration such as easy availability of raw materials and labour, and technology/information spill over, the study said.

http://www.brecorder.com/index.php?id=603651&currPageNo=1&query=&search=&term=&supDate=

 

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'Rs 150 million to be spent on coastal highway repair by March' ​

ISLAMABAD (August 10 2007): Cyclone, flood and rains during June 2007 have severely damaged the Coastal Highway and the repair work would be completed by March 2008 at a cost of Rs 150 million. This was stated by Communication Minister Muhammad Shamim Siddiqui at a press briefing on 'flood damages in Balochistan' here on Thursday.

The Coastal Highway links Lyari with Gwadar and stretches over 639-km. It has 1,794 culvert, three major, and 78 minor bridges. The project was completed three years ago at a cost of Rs 15 billion.

The minister said it was second time that the road had been damaged by floods and rains. In February 2005, just within a year of its completion rains damaged it and Rs 109 million was spent on its repairs. He said an inquiry committee has been set up to investigate and identify the damage.

In order to prevent such damage in future, a specialist team is conducting survey to improve its quality. The National Highway Authority (NHA) will adopt the measures in accordance with report provided by the specialists so that Coastal Highway could resist such calamities, he added. NHA Chairman Major General Imtiaz Ahmad gave details about the damaged Highway.

He told the media that 35 feet high waves hit the highway severely damaging nearly 1.5 percent area whereas the rest of 98.5 percent is intact and in working position. The NHA chief said that 11 culverts out of 1,794 and the approaches of five bridges have been washed away by the cyclone, though not a single bridge was damaged, he added.

http://www.brecorder.com/index.php?id=603604&currPageNo=2&query=&search=&term=&supDate=

 

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Businessmen nervous over political instability​

KARACHI, Aug 9: Industrialists and traders appear to be nervous over looming political crisis after rumours of emergency or martial law. They have urged the government to immediately remove uncertainty so that businesses could flourish.

Although the government has ruled out imposition of emergency, they said “political confusion is still not over and has taken a new turn after rumors of emergency.”

Many industrialists paint a bleak picture of future foreign trade and investment in case of imposition of emergency.

President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Tanvir Ahmed Shaikh, said: “No comments on current political situation when the government has clearly stated that no emergency will be imposed.”

Chairman, Korangi Association of Trade and Industry (KATI), Masood Naqi, said industrialists feel insecure under current political scenario, and perhaps it was the worst situation during the last three to four months.

“Businessmen feel satisfied working under political stability and improved law and order situation. Currently political situation is alarming for last the few months.”

He was of the view that business flourishes in a democratic setup instead of martial law.

He said foreign buyers had already stopped coming to Pakistan for the last four months, and they prefer sending their representatives, based in the Far-East, Middle East, Sri Lanka, Dubai, New Delhi, etc, instead of coming on their own to Pakistan for a quality check of local products destined for exports.

He ruled out any immediate impact on exports in case of imposition of an emergency.

He said its impact would be visible after three to four months and it might result in a decline in exports by 20 per cent.

Chairman, SITE Association of Industry Imran Shaukat, said political situation was definitely not satisfactory, and had resulted in business instability.

“So far, regular foreign buyers are tight-lipped on political instability. But foreign investors will shy away from Pakistan if there was no improvement,” he said, adding the government should take steps to clear political confusion.

He, however, said military regime was not an appreciated form of government in the world today.

Chairman, North Karachi Association of Trade and Industry (NKATI), Faraz Mirza, said imposition of emergency or martial would hit trade and business.

Foreign trade and local business activities had been going on satisfactorily, but again political crisis and hovering clouds of martial law or emergency have created a sense of uncertainty among businessmen.

He said business activities record growth in democratic setups instead of martial law regimes.

The government should resolve issues through mutual understanding; martial law was not the solution of present political uncertainty.

Chairman, F B Area Association of Trade and Industry, Masroor Ahmed Alvi, said it doesn’t matter whether there was a martial law or a democratic government. So far, business has been as usual. Actually smooth business environment depends on good law and order situation.

He said there was no panic among foreign buyers in the wake of worsening political crisis.

Chairman, Karachi Wholesale Grocers Association (KWGA), Anis Majeed, said reports of emergency have created a stir among trading community whose moral had come down.

“Even these kinds of situations are creating doubts among traders for making any future commitment.”

“Emergency or martial law is not good for the country. The government should resolve political chaos and restore democratic atmosphere,” he said.

General Secretary, Karachi Retail Grocers Group (KRGG), Farid Qureishi, said people would not invest if there was an authoritarian regime. Usually business runs quietly in autocratic rule, he added.

He said under a pure military rule, traders remain conscious of making huge profit because of fear of arrests.

He added that trading activities pick up pace in democratic regimes and people make investment.

http://www.dawn.com/2007/08/10/ebr1.htm

 

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Power outages eating away export deals​

KARACHI, Aug 7: Acute power crisis combined with water shortage have crippled production activity in five industrial estates of the city resulting in loss of export contracts worth millions of dollars daily, industry sources claimed.

There are power outages in industrial areas ranging from six to eight hours. This means that the industry loses around 180 production hours per month and is presently running at 60 per cent of its capacity.

Industry sources further said that when there was load-shedding or power breakdown it took hours to restart plants and bring the entire production-line back to normal. Consequently, loss in industrial production in real terms comes much higher.

The industry is suffering on two accounts, firstly because of load- shedding and secondly due to less productivity given by workers, who come to work after sleepless nights owing to unscheduled load-shedding in residential areas of the city.

North Karachi Industrial Area Chairman Faraz Mirza told Dawn that industrial activity was smooth up to June as there was no load-shedding of power in industrial areas. However, since July, besides load-shedding there had been massive power breakdowns causing production loss.

He further said that since most of the units in North Karachi were SMEs, they could not afford to have their own power generating facility and have to totally depend on KESC’s power supply.

There are around 2,000 to 2,500 units engaged in production of home textiles, towels, garments, marble and pharmaceuticals and were mostly export-oriented.

Federal B Industrial Area Chairman Masroor Ahmed Alvi said since last 45 days the industry was facing massive load-shedding and power breakdowns. Despite repeated assurances from the KESC’s high-ups for providing one window service for lodging complains no progress had been made so far.

As a result of this, Mr Alvi continued, even today “our members have to approach different centres for different problems and this adds to our miseries.”

He said there were around 2,000 units of small and medium size with 80 per cent of these export-oriented and 20 per cent vendor industry. Besides losing export contracts the industry’s cost of production has increased by 30 per cent as some units opt for self generation of power.

All these factors add to the cost of production and the industry fails to compete in the world market where cost-effectiveness, quality and timely delivery are the only way to succeed.

Site Association of Industry Chairman Imran Shaukat said that three major problems were being faced by the industry, including power and water shortage and poor quality service of telecommunication companies.

Besides, load-shedding by the power utility, he said, on an average there were breakdowns on regular basis, which completely crippled industrial production and caused lots of hardship.

The industry does not only lose production hours but also has to compromise on quality, which is, in a free market, of paramount importance. The power breakdowns and voltage fluctuations cause severe damage to costly plants and machinery and bring production to a grinding halt at times.

The Site industry needs 25 million gallons of water per day but was being supplied with only 5 million gallons. Most of the industry is export-oriented and engaged in textile processing, which needs a lot of water, he added.

Korangi Association of Trade and Industry (Kati) Chairman Masood Naqi said that owing to load-shedding many industrial units stopped booking export contracts from foreign buyers as they could not meet the delivery deadline.

He said many a times the industry had to send export consignments by air in order to meet the deadline but this added to their cost and resulted in huge losses.

http://www.dawn.com/2007/08/10/ebr2.htm

 

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Agriculture sector gets Rs169bn in five years​

ISLAMABAD, Aug 9: The banking sector has provided a total of Rs169 billion in the last five years to help develop agriculture sector and increase export of its various products.

A meeting, chaired by a senior official of the ministry of finance, was told here on Thursday that the sub-committee on finance (SC-F) was developing a set of guidelines for banking and insurance sectors to further support the agriculture sector.

The new guidelines will include size and types of financing, working capital, term-financing, eligibility, repayment terms, channels, documentation, conditions / covenants, monitoring and recovery.

The SC-F will assist the agricultural support fund of the government, with matters relating to horticulture grants.

It was the first meeting of the finance sub-committee on task force on finance and competitiveness of the horticulture sector held under the chairmanship of Mr Javed Malik, additional secretary, ministry of finance.

The meeting was attended by representatives of relevant ministries, provincial departments concerned and banking as well as non-banking financial institutions.

The aim of the sub-committee on horti-business finance (SC-F) is to help the task force on horticulture finance and competitiveness (TFHFC) achieve its goal by ensuring that all relevant actions are taken in the banking and financial sector to facilitate those wishing to invest in the horticulture sector.

In addition, the sub-committee will pay special attention to exporting and export finance and insurance issues of the sector.

The Competitiveness Support Fund (CSF) was earlier tasked by the Ministry of Finance to undertake a comprehensive study entitled the competitive advantage of the food processing industry: focus on quality, safety and standards.

The CSF is a joint initiative of the ministry of finance, and the US Agency for International Development (USAID).

Support for CSF is part of the $1.5 billion aid that the US government is providing to Pakistan over five years to improve economic growth, education, health, and governance.

The sub-committee on finance will work with stakeholders in horticulture and financial sector to coordinate and facilitate initiatives currently being taken to provide finance to the industry.

Where necessary, the sub-committee will identify areas that require further intervention and liaise with the relevant line ministries, agencies and institutions to bring them about.

In order to achieve the aims and goals of the task force, the sub-committee on finance (SC-F) will establish a profile of financing in the agricultural sector, with particular reference to horticulture.

The SC-F will also identify major participants in the financing of horticulture.

The SC-F will establish a relationship between market pricing of horticultural products and provision of credit.

The committee will also put special emphasis on the fact that horticulture is often undertaken by the poorest of the rural population and will, therefore, establish operations and concerns and issues of micro-credit institutions and the overall provision of micro-credit for horticulture developments.

http://www.dawn.com/2007/08/10/ebr3.htm

 

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Emergency rumours wipe out Rs115bn from stock market​

KARACHI, Aug 9: The KSE 100-share index on Thursday plunged by 385 points as investors indulged in panic-selling on media reports of imposition of emergency. However, the market capital suffered a loss of Rs115bn as official denial came a bit late.

The market, however, could have run into a deeper recession in case the emergency was declared by the president as it would signal the exit of leading foreign investors, but the official denial could put the market back on the rails even on Friday as investors would cover positions at the lower levels, said a leading analyst.

But more optimistic among the investors termed the market fall to psychological factors based on speculation rather than real news and market could bounce back if emergency was not imposed.

“All may not be well in corridors of power in Islamabad,” said a leading analyst, adding “the message has aptly been picked up by all and sundry”.

After having fallen at one stage to session’s low at 12,947.18, off 617 points, it managed to finish partially recovered on active short-covering to stay well above the 13,000-level at 13,179.41.

The market capital plummeted to Rs3,854bn.

All the leading base shares, notably OGDC, MCB, National Bank, Askari Bank and Hub-Power encountered near-panic selling and fell sharply.

The free-float KSE 30-share index shed 432.60 points at 15,848.71 as compared to overnight’s 16,281.31.

Trading resumed amid a terrible panic as investors could not precisely decide how to react to the media reports and held on to their positions but their weaker links hastened to liquidate long positions to avoid fresh financial risks.

Among the leading gainers, Fazal Textiles and HinoPak Motors were leading up by Rs15 and Rs15.50 followed by Premium Textiles, JS Global, Javedan Cement, Pakistan Engineering and KSB Pumps, which rose by Rs2 to Rs7.85.

JS & Co and Siemens were prominent losers, off Rs46 and Rs81 respectively. Other major losers were led by Javed Omer, Arif Habib Ltd, Adamjee Insurance, EFU General, IGI Insurance, Pakistan Resource Company, Sapphire Fibres, National Refinery, Attock Petroleum, Indus Motors, Dawood Hercules, Sanofi-Aventis, Packages and Nestle Pakistan, which suffered fall ranging from Rs10.50 to Rs40.

Trading volume rose to 263m shares from the previous 177m shares as losers forced a strong lead over the gainers at 297 to 47, with 17 shares holding on to the last levels.

Askari Bank led the list of actives, off Rs1.65 at Rs97.15 on 15m shares followed by OGDC, lower by Rs2.55 at Rs118 on 15m shares, Arif Habib Securities, off Rs4.40 at Rs127 on 14m shares and National Bank, easy by Rs6.80 at Rs246.10 on 13m shares.

Hub-Power, lower Rs1.45 at Rs31.80 on 10m shares, Fauji Fertiliser Bin Qasim, off Rs1.80 at Rs44.15 also on 10m shares and Bank Alfalah, off Rs1.75 at Rs53 on 9m shares.

Other actives were led by TRG Pakistan, off 85 paisa on 13m shares, Bosicor Pakistan, lower 80 paisa on 12m shares and Pak PTA, easy by 45 paisa on 8m shares.

FORWARD COUNTER: Habib Bank led the list of actives on this counter, off Rs5.75 at Rs313.30 on 7m shares followed by National Bank, easy by Rs6.15 at Rs2.48 on 7m shares and MCB, off Rs3.60 at Rs311.40 also on 7m shares.

Lucky Cement followed them, off Rs5.55 at Rs119.65 on 5m shares and Fauji Fertiliser Bin Qasim, lower Rs1.65 at Rs44.45 on 4m shares.

DEAFAULTER COS: Nimir Chemical led the list of actives, off 25 paisa at Rs4.15 on 2.758m shares followed by Japan Power, higher by 60 paisa at Rs9.50 on 1.257m shares and Zeal Pak Cement, lower 50 paisa at Rs5.90 on 1.107m shares.S.S. Oil also came in for active support and rose by Rs1.15 at Rs24.25 on 0.724m shares followed by Unity Modaraba, unchanged at 55 paisa on 0.224m shares and Norrie Textiles, easy by 10 paisa at Rs2.25 on 0.175m shares.

http://www.dawn.com/2007/08/10/ebr5.htm

 

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Proposals to attract more industrial investment​

ISLAMABAD, Aug 9: Official planners have proposed to the government to create a market-friendly business environment to enhance industrial investment and the overall economic growth in the country.

“Investment plays a crucial role in growth process by not only adding to productive capacity but also by improving the technological base. Therefore, creation of a market-friendly business environment is absolutely essential,” the planners said in their recommendations contained in the new Industrial Vision also made available to Dawn.

“To develop a viable industrial sector, there is a need to put in place a regulatory and legal environment that is conducive for private business.”

The vision was approved by the federal cabinet earlier this month. It said that the investment rates in Pakistan had been low though in 2003-04 it had increased from 16.4 to 18.1 per cent of GDP. Whereas in the past the resources for investment have been the major problem, at present it is the relatively low levels of demand for investment.

“The investment rates can rise rapidly provided the investors are convinced of long run profitability,” it said.

It added that the business-friendly environment revolved around consistent economic policies, strong macroeconomic fundamentals, deregulation, privatisation, better law and order with credible police, law and judicial system, better regulatory environments, an efficient tax and customs administration and a labour policy that motivates the workers, financial reforms and improvement in infrastructures.

Investment levels exceeded 20 per cent of GDP only in the periods when the investors perceived continuity of policies.

Strong Macroeconomic fundamentals: Lower fiscal deficit, good balance of payment situation, stability of exchange rates, higher foreign exchange reserves, availability of funds at competitive rates, openness of trade etc help a great deal in attracting investment.

At present Pakistan has strong financial macro-fundamentals and can attract investment.

De-regulation and privatisation policies: Pakistan has divested most of public sector manufacturing enterprises and has privatised four out of five public sector banks. It intends to privatise various public utilities. Similar, over the last two decades there has been considerable de-regulation.

“Nevertheless, investors feel that second generation reforms and further de-regulation is absolutely necessary for reducing the cost of business,” the Vision said.

It also pointed out that the law and order situation had deteriorated since the early 1980s and after 9/11 events had deteriorated further. While efforts are being made to improve the situation, more efforts in this direction are absolutely important. “The government may accord priority to police and judicial reforms”.

It also said that the regulatory uncertainty needed to be reduced and that all rules were made transparent by removing discretion from the administration. Regulations relating to labour, health and environment, besides FBR regulations, should be made transparent.

Businesses have to comply with a host of regulations relating to work environment, including health and sanitation, product standards, and taxation etc. Excessive discretionary powers in the hands of the enforcing agencies often lead to harassment of enterprises and opens up avenues for corruption resulting in loss of business confidence.

http://www.dawn.com/2007/08/10/ebr13.htm

 

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Three date processing plants to be set up​

SUKKUR, Aug 9: Three modern date processing plants will be established under the trade policy by the end of 2008, one each in Sindh, Balochistan and NWFP, at a cost of Rs78.6 million.

President of the Dates Exporters Association (DEA) Khairpur, Bashir Ahmed Arain told APP on Thursday that Pakistan Horticulture Development and Exports Board (PHDEB) is ready to invite tenders for construction of date processing plant at Khairpur at a cost of Rs 24.113 million by 2008.

In this regard, he said tenders for two other plants, one each at Dera Ismail Khan and Turbat will be floated within a couple of months.

He said work on Khairpur plant is under way to hold bidding for “up-to-the-mark” plant, which would be established on Public-Private Partnership (PPP) basis. These plants are being built along with cold storage facilities, he added.

Chairman DEA Arain further said Pakistan ranks fourth in dates production and fifth in its exports around the world.

He said under PPP, the Sindh government has provided two acres of land for this purpose.

The Sindh government also released Rs19.946 million from the Export Development Fund (EDF) and would take care of the cost of plant machinery, equipment, vehicles and other civil works, he said.

Presiedent DEA said that day-to-day operations would be entrusted to a team of professionals hired from the private sector, which would also contribute the working capital of around Rs4.167 million while a private limited company had also been formed to accomplish the management work of the plant, which was named as Khairpur Dates Processing Plant (KDPP).

He said the company, duly registered with the Securities and Exchange Commission of Pakistan (SECP), would have its members from PHDEB, Trade Development Authority of Pakistan, Agriculture Research Institute, DRC, Kot Diji Taluka, Khiarpur Chamber of Commerce and Industry (KCCI), investors and growers from the private sector of Khairpur district.

He further said the Board has set 2008 as a deadline for completion of the KDPP, which is estimated to produce more than 2,000 tons of processed dates during the 150 working days.

He said the KDPP for which funds had been transferred to the account of the company would be built to improve the quality of dates and increase the level of value-addition and added that the proposed plant would be based on multiple products, including pitted and stuffed dates and would increase the level of value- addition.

http://www.dawn.com/2007/08/10/ebr18.htm

 

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Emergency not to affect corporate sector ​

KARACHI: While the country remains under apprehension and speculation regarding the threat of emergency laws, leaders of the business sector believe it will not affect investments or the corporate sector. Speaking to The News at the ITCN Asia 2007, SECP Deputy Registrar of Companies Muhammad Naeem Khan said that the emergency laws would have no direct effect on the corporate sector.

He said that the situation would affect the basic human rights and therefore it had nothing to do with businesses. He, however, feared for the stock market as slightest of instability in the economy affects the stock markets badly.

Executive Vice President of PTCL , Tariq J Qureshi opined that the emergency laws were not relevant to corporate sector where it would be business as usual.

Faisal Amin, President of Texas Trade Council said that political situation was not likely to affect investments.

Geoffrey S. Connor, Principal of Texas Global was not ready to comment on the situation though he voiced that he didn’t think that emergency laws had anything to do with external relations of Pakistan with other countries. “These are internal matters of Pakistan and therefore I don’t think they would affect the country or its image. We just want to trade and bring technology into Pakistan and that’s what we are doing even now,” he said.

http://www.thenews.com.pk/daily_detail.asp?id=67648

 

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IT industry size to reach $10bn by 2010 ​

KARACHI: The size of IT industry in Pakistan will reach 10 billion dollars in 2010. To develop IT industry in the country agreements are being undertaken with the international companies, said Yusuf Hussain, Managing Director, Pakistan Software Exports Board (PSEB) at a media workshop at ITCN Asia EXPO centre Karachi.

“We are in Pakistan as we see great potential and opportunities in the software industry of this country,” said Tony Murphy author of “Succeeding in Knowledge Economy”.

“PSEB has done much in software development and such workshops and seminars improve the confidence of companies which in turn bring more IT companies and investment in the country,” he said.

Jutta Schwengsbier of DW Group Germany said Pakistan has a huge network of villages where IT can turn things upside down as it had done in changing the very face of journalism.

Pakistan has to develop and carve its own way to success with the assistance of IT, Schwengsbier said. Speakers of the Workshop highlighted the importance of IT and its role in the development of modern technological world and the revolution that IT has brought in the field of media.

Geoffrey Connor, Principal, Texas Global, Santosh Sinha, Interactive Editor, BBC World Service also addressed the workshop.

http://www.thenews.com.pk/daily_detail.asp?id=67650

 

[Neo]

LSM misses growth target of 12.5%​

* Achieves 9.46% growth, which is lower than the growth of 10.68% in 2005-06

ISLAMABAD: The growth target of 12.5 percent in large scale manufacturing (LSM) for the fiscal year 2006-07 has been missed and final figures show that growth in LSM was 9.46 percent for the July-June period, according to a production data of selected LSM items finalised by the Ministry of Industry and Production.

The Economic Survey 2006-07 had earlier projected a LSM growth of 8.8 percent in the last fiscal year, however, this projection improved to 9.46 percent for the year. LSM growth of 9.46 percent in the last fiscal was less than the growth of 10.68 percent in the fiscal year 2005-06.

Final figures of the LSM items shows that production of sugar registered a growth of 19.13 percent with total production of 3,525.949 metric tonnes in the last fiscal year as compared to the production of 2,959.782 metric tonnes in the previous fiscal year.

The production of fertilisers witnessed a decline of 3.05 percent in the fiscal year 2006-07 with total production of 6,042,180 metric tonnes as compared to 6,232,070 metric tonnes in the previous fiscal year 2005-06. Production of nitrogenous fertilisers declined by 2.03 percent and production of phosphatic fertilisers declined by 10.06 percent in the last fiscal year 2006-07. Decline in the fertiliser sector was broad based and production of urea declined by 1.54 percent, nitro phosphate by 8.63 percent, super phosphate by 7.41 percent, Di-ammonium phosphate 8.79 percent and NPK by 2.03 percent.

Production of bicycles declined by 21.59 percent with a total production of 462,297 as compared to the production of 589,605 in the previous fiscal year. The production of motorcycles registered a growth of 11.65 percent with overall production of 839,224 in the last fiscal year as compared to 751,667 in the previous fiscal year. Production of jeeps went up by 33.41 percent with total production of 3,298 in the last fiscal year against the production of 2,472 in the previous fiscal year. LCV’s production increased by 18.74 percent with a production of 35,124 in the last fiscal year as compared to 29,581 in the previous fiscal year. Trucks production showed a decline of 2.39 percent with total production of 4,410 in the last fiscal year as against the production of 4,518 in the previous fiscal year. Production of buses increased by 20.36 percent with total production of 993 in the last fiscal as compared to 625 in the previous fiscal year. Production of tractors also registered a growth of 10.46 percent with a total production of 54,610 in the last fiscal year as against the production of 49,439 in the previous fiscal year.

The production of cars declined by 0.09 percent with total production of 160,496 in the last fiscal year as compared to the production of 160,642 in the previous fiscal year.

Production of cement witnessed a growth of 22.49 percent with total production of 22,739 thousand tonnes in the last fiscal year as compared to a production of 18,564 thousand tonnes in the previous fiscal year.

Pakistan Steel’s production showed a mixed trend in the fiscal year 2006-07. Production of coke increased by 79.01 percent, pig iron h metal 31.36 percent, cast rolled billets 48.22 percent, hr coils plates 35.78 percent, and however, the production of cr coils declined by 3.27 percent galvanised products 14 percent.

Production of inguts and billets produced by steel melters increased by 8.79 percent and production of steel re-rolled items increased by 2.64 percent in the last fiscal year.

Cotton yarn production showed a growth of 11.75 percent with total production of 2,845,762 thousand kilogrammes in last fiscal year as compared to the production of 2,545,520 thousand kilogrammes in previous fiscal year.

Jute goods also registered a growth of 12.97 percent with total production of 118,059 metric tonnes in the last fiscal year against the production of 104,504 metric tonnes in the previous fiscal year.

Paper and paper board’s overall production registered a negative growth of 2.21 percent in the last fiscal and it production amounted to 466,115 metric tonnes as against 476,653 metric tonnes in the previous fiscal year. Production of paper declined by 3.54 percent, printing paper production was down by 4.46 percent, writing paper by 2.88 percent and packing 4.25 percent, paper board 1.54 percent and chip board by 0.86 percent.

Production of cigarettes registered a growth of 2.87 percent with an overall production of 65.980 million in the last fiscal year as compared to the production of 64.137 million in the previous fiscal year. Production of soda ash showed a growth of 3.74 percent and caustic soda by 10.45 percent in the last fiscal 2006-07.

Production of sheets and float glass showed a growth of 98.89 percent in the last fiscal year 2006-07. sajid chaudhry

http://www.dailytimes.com.pk/default.asp?page=2007\08\10\story_10-8-2007_pg5_12

 

[Neo]

PLHCL receives over $6.665 million as FDI ​

KARACHI (August 11 2007): Pak Libya Holding Company Limited (PLHCL) has received 6.665 million dollars (Rs 401.958 million) as foreign direct investment (FDI) from Libyan Foreign Investment Company (LFICO) to enhance its paid-up capital for compliance of minimum capital requirement (MCR) of State Bank of Pakistan (SBP).

An equivalent amount has also been contributed by the SBP (on behalf of government of Pakistan), which will resultantly raise the paid-up capital from Rs 3,442 million to Rs 4,242 million. At present, the equity of the company has grown to Rs 5,283 million.

The capital injection from the foreign counterpart is a clear indication of their trust and confidence on the economy and government's current policies as well as on the future prospects of the company.

The capital injection will enable the company to expedite the momentum of its operational and business growth together with strengthening its contribution to the economic growth of the country. The performance of Pak Libya Holding Company improved significantly by depicting growth in all operational areas during the half year ended on June 30.

Total assets at the end of the half year registered 87 percent growth to Rs 17,261 million at the end of June 30 this year as compared to Rs 9,220 million at the end of the corresponding period last year, while the net profit went up to Rs 238 million during the half year period this year against Rs 112 million in the same period last year.

The management of Pak-Libya Holding Company is confident that the growth pattern in the key financial indicators would continue, keeping up with their vision to achieve and maintain greater strength within the financial sector.

Pak Libya Holding Company, a joint stock company, commenced its operations in 1980. Equally owned by the governments of Pakistan and Libya, the company operates within the framework of banking laws of Pakistan and its operations are supervised by the State Bank of Pakistan.

Pak Libya Holding Company has a successful track record of over 25 years of consistent growth and performance and is one of the leading non-banking financial institutions of the country, having a distinction of being the first Pakistani financial institution with rating of ISO 9001:2000.

As a result of the operational strengths, Pakistan Credit Rating Agency Limited has maintained the long-term and short-term rating of the company at "AA-/A-1+," a "positive" outlook. These ratings denote strong risk absorption capacity of the institution.

http://www.brecorder.com/index.php?id=604365&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Rs 10.94 billion approved for FATA development schemes ​

PESHAWAR (August 11 2007): The NWFP government is taking special measures to accelerate the pace of developmental projects in the far-flung tribal areas and Rs 10943.453 million have been approved for the sector of regional development.

According to a handout of FATA Media Cell, Rs 466.439 million would be spent during 2007-08. The development of backward and far-flung parts of different tribal areas would be the focus of the government under the package for Regional Development.

Special attention has been given to developmental packages in North and South Waziristan Agencies, and Rs 838.93 million have been sanctioned for development packages in the two remote agencies.

A sum of 678.94 million has been approved for five different Regional Development schemes in South Waziristan Agency. These include allocation of Rs 144.155 million for Shawal inaccessible area, Rs 93.318 million for Shaktoi and Shobi Khel areas of Tehsil Ladha, Rs 65.645 million for Shakai area, Rs 180.774 million for Tehsil Toi Khullah and Rs 195.048 million for Mantoi and Santoi areas.

A sum of Rs 159.980 million has been approved for two schemes in North Waziristan Agency. These include Rs 99.980 million for Madakhel area and Rs 60 million >for Shawal area.

Besides the two Waziristan Agencies, special attention has been given to developmental projects in the remotest Tirah Valley and Bara in Khyber Agency for which a package costing Rs 118.059 million has been approved. Moreover four schemes in Mohmand Agency, four schemes in Kurram agency, three in Orakzai and 27 other schemes in all FATA have been approved to accelerate the pace of developmental work in backward and deprived parts of the FATA.-PR

http://www.brecorder.com/index.php?id=604388&currPageNo=1&query=&search=&term=&supDate=