Pakistan Economy - News & Updates - Archive

[Neo]

Coal exploration: UK-based Pakistani firm to invest in Badin project joint venture ​

KARACHI (August 18 2007): A UK-based Pakistani firm, Oracle Coalfields, will make a substantial investment in coal exploration work with a local partner, Sindh Koela Limited, and start work from October. The company also planned to set up a 150 megawatt power plant after the coal is explored in Badin coalfield.

This was revealed by sources in Sindh Mines and Mineral Development Ministry to Business Recorder here on Friday. According to the sources, senior officials of Oracle Coalfields Plc, including its Director Anthony Scutt held a meeting with the ministry officials on Thursday to finalise the details of the project.

Sources quoted Anthony Scutt as saying: "This is the first ever project of his firm in Pakistan." The joint venture with Sindh Koela had been named as the Sindh Carbon Energy (SCE) to execute the project without any difficulty, said the sources.

Although, the company had not submitted its final financial model, which was expected to be submitted by mid of September, it had chalked out one-year exploration programme to develop the Indus east coalfields in Badin to provide coal fuel to coal-based power projects, they said.

Assessment of the commercial viability would be finalised after the completion of the drilling work, which was being undertaken by deep drilling in rocky land, Anthony was further quoted as saying.

He hoped that the work on the project would be initiated by mid of October, which would create hundreds of new jobs for local people. Meanwhile, the provincial Mines and Mineral Development Department sources said that the delegation of Oracle Coalfields, which had left for London, was expected to return by next month for final discussion with the department on the project.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Kyrgyzstan asked to expedite power export to Pakistan ​

BISHKEK (August 18 2007): Foreign Minister Khurshid M Kasuri has asked Kyrgyzstan to expedite electricity export to Pakistan, which is in grip of acute power shortage. He said this during his meeting in Bishkek on Friday with his Kyrgyz counterpart Ednana Karabaev.

In the meting, the two Foreign Ministers took stock of bilateral relations. They noted with satisfaction the excellent political understanding that characterises ties between the two countries. However, they stressed the need for giving greater economic and commercial substance to relations.

The Foreign Minister of Kyrgyzstan conveyed keen interest of his country to acquire a terminal for Kyrgyz imports at Gwadar. A detailed proposal outlining the Kyrgyz request would be conveyed to Pakistan shortly.

The Foreign Minster of Pakistan agreed, in principle, to the request of the Kyrgyz side and underscored that one of the major purposes of building Gwadar Port was to provide trade and transportation corridors to the land-locked Central Asian states.

On Pakistan's part, the Foreign Minister probed the possibility of import of hydro-electricity from Kyrgyzstan, since it has the potential to export hydropower.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Exports to EU move up by 8.77 percent ​

KARACHI (August 18 2007): Overall exports to the European Union (EU) have gone up by 8.77 percent or 295.39 million dollars during the 2006-07 fiscal year as compared to the 2005-06 fiscal year due to rising demand of textile finished products in many EU countries, industry sources said on Friday.

However, the exports to the EU and other countries had dwindled manifold as compared to the regional countries' exports, including Bangladesh and Sri Lanka.

Official statistics, issued by the Trade Development Authority of Pakistan (TDAP), revealed that the country's exports to the EU countries stood at 3,664.10 million during the 2006-7 fiscal year against 3,368.71 million dollars during the 2005-06 fiscal year. This shows a growth of 295.39 million dollars.

It is pertinent to mention that exports to Irish Republic had declined by six percent or 2.271 million as they stood at 33.094 million dollars during the 2006-07 fiscal year against 35.365 million dollars during the 2005-06 fiscal year.

Moreover, exports to Austria surged by 25.55 percent, as they stood at 29.869 million dollars during the 2006-07 fiscal year as compared to 23.791 million dollars during the 2005-6 fiscal year, showing an increase of 6.078 million dollars.

Export to Belgium during the 2006-07 fiscal year was 11.39 percent or 295.286 million dollars against 265.093 million dollars during the 2005-06 fiscal year with 30.193 million dollars increase.

Exports to Denmark grew by 21.58 percent or 9.525 million dollars during the 2006-07 fiscal year. They stood at 53.664 million dollars during this period against 44.139 million dollars during the 2005-06 fiscal year.

During the 2006-7 fiscal year, Finland's imports from Pakistan stood at 39.334 million dollars with boost of 6.56 million dollars or 20 percent against 32.774 million dollars during the 2005-06 fiscal year.

In addition, exports to France witnessed a growth of 2.95 percent or 8.178 million dollars during the 2006-07 fiscal year. The country made exports of 285.111 million dollars during this period against 276.933 million dollars during the 2005-06 fiscal year.

Rise in exports to Germany was 1.23 percent or 7.013 million dollars during the 2006-07 fiscal year, which were 579.406 million dollars against 572.393 million dollars during the 2005-06 fiscal year.

Greece imported goods worth 79.459 million dollars during the 2006-07 fiscal year against 68.158 million dollars during the 2005-06 fiscal year, which depicted a growth of 16.58 percent or 11.301 million dollars.

During the 2006-07 financial year, the country exported goods worth 518.808 million dollars to Italy against 472.182 million dollars during the 2005-06 fiscal year, showing an increase of about 10 percent.

The lowest exports were made to Luxembourg during the 2006-07 fiscal year, which stood at 1.140 million dollars against 730 million dollars. However the exports grew by 56.16 percent or 410 million dollars.

Exports to Netherlands grew up by 11 percent or 35.927 million during the 2006-07 fiscal year, which stood at 365.893 million dollars against 329.966 million dollars during the 2005-06 fiscal year.

Exports to Portugal surged by 41.96 percent or 38.831 million dollars during the 2006-07 fiscal year, which were 131.376 million dollars as compared to 92.545 million dollars during the 2005-06 fiscal year.

Spain's imports from Pakistan stood at 382.366 million dollars during the 2006-07 fiscal year as compared to 330.685 million dollars, witnessing a boost of 16 percent or 51.681 million dollars.

Exports to Sweden registered a growth of 2.65 percent or 2.034 million dollars during the 2006-07 fiscal year, which stood at 78.853 million dollars as compared to 76.819 million dollars during 2005-06.

Lastly, exports to United Kingdom have augmented by 5.76 percent or 43.046 million dollars during 2006-07, which rose to 790.183 million dollars from 747.137 million dollars during 2005-06.

Meanwhile, Central Chairman of Pakistan Hosiery Manufacturers Association (PHMA) Naqi Bari termed this growth of 8.77 percent unsatisfactory, saying that the textile exports of the regional countries like India, Bangladesh and Sri Lanka to the EU were much higher than Pakistan.

He said that export growth should have been at least 20 percent during 2006-07, and urged the government to evolve a compact plan to reduce high cost of business to accelerate this lower rate of exports.

President of Karachi Chamber of Commerce and Industry (KCCI) Majyd Aziz, has said that this increase was significant, and added that anti-dumping duty on bed-wear products had hit the country's exports to the EU, which could be 20 percent during 2006-07.

Strong marketing, country's image building and government and private sector co-ordination would help augment the country's exports manifold, he added.

He said increasing demand of the country's textile finished products in the EU had given rise to the country's exports.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

ADB to release second tranche of $100 million ​

FAISALABAD (August 18 2007): Asian Development Bank has agreed to release the second tranche of $100 million, keeping in view the progress made in implementing the Punjab Resource Management Programme, considering earlier compliance reports.

According to official sources the Asian Development Bank (ADB) approved a cluster of loans of $500 million to the Government of Pakistan for the Punjab Resource Management Program (PRMP). The purpose of the PRMP is to support the Punjab government to implement the development agenda outlined in the Government's poverty reduction strategy (PRS).

At the provincial level, the PRMP is integrated with other governance-related initiatives. The immediate objectives of the PRMP are to assist the Punjab government through reforms in systems, processes, and governance. Further the aim is to (i) strengthen its finances, (ii) realign provincial institutions for providing service to poor and (iii) create opportunities for growth and income generation in the private sector.

The PRMP cluster of loans is supported by a technical assistance (TA) loan in the amount of $4 million equivalent of which shall be completed by 30 June 2008.

The PRMP cluster is structured within three programmes (SP) and covers the period from 2003 to 2008. Sub-programme-1 of the PRMP, for $200 million, has successfully been completed with the release of the second tranche on 27 June 2005.

PRMP Sub-programme-2 consists of: (i) loan of $200 million from ADB's ordinary capital resources (OCR) for public resource management reforms; and (ii) a TA grant of $150,000 to support the preparation of Sub-programme-3 of the PRMP. Sub-programme-2 relates to effectiveness conditions and tranche release conditions, and made it a requirement for the Government to comply fully with the four conditions of Sub-.program-1.

Sub-programme-2 was approved on 14 December 2005 and became effective on 5 April 2006. Full compliance with first-tranche requirements was achieved on 30 June 2006, and the first tranche for $100 million was released on 3 July 2006.

The goal of Sub-programme-2 is to improve fiscal and financial governance and public service delivery, leading to poverty reduction in the Punjab. The purpose and policy objectives of sub-programme 2 are to assist the Punjab government through reforms in governance structures, systems, and procedures and.provide "fiscal space" for sustainable development and improve monitoring mechanisms to ensure that the allocation and utilisation of funds is effective and transparent,and conducive for private sector development, growth, and income generation.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Solid waste management: ADB may release $50 million by month-end ​

KARACHI (August 18 2007): The Asian Development Bank (ADB) has completed feasibility work on solid waste management (SWM) project of the Karachi City District Government (CDGK) and is likely to release around $50 million in the first tranche by end of this month.

Sources in CDGK told Business Recorder on Friday that after green signal from the Bank about release of the tranche the city government would hire a consultant with sufficient expertise in solid waste disposal work.

"The CDGK has worked out feasibility of the project with an okay report and ADB is likely to give a response by month-end", they said. "We would then make an international call for hiring a consultant, local or foreigner, to go ahead with the project", they added.

After hiring a consultant, the CDGK would issue tenders for completion of the project. The bidding process is likely to start some time in the beginning of 2008, they said. "We have received expressions of interest (EoIs) from many local and international firms, but we will be able to issue tenders towards the start of 2008."

Sources said that so far companies from the United States, France, Norway, China, Iran, Malaysia and some from Pakistan have expressed interest to undertake the project.

They said that the city government would expect the successful bidder to complete the project within two years of its startup date. "If work on the project starts in the first quarter of 2008, we would expect it to go not beyond the beginning of 2010", sources said.

In the first tranche of the ADB credit the CDGK would build five garbage transfer stations (GTSs) so that the garbage packed on modern methods could be transferred to landfill sites, they said.

"Each garbage transfer station would be established at a cost of around $9 million", they said. Sources said that the five stations would be built at Mewa Shah, Orangi Town, Korangi Town, Mehmood Abad and Gulshan-e-Iqbal. In Gulshan-e-Iqbal, decision was yet to be finalised on the two proposed sites.

Of the second tranche of ADB loan, sources said the money would be invested to upgrade the two landfill facilities at Surjani Town and Hub River Road with a new landfill site to be constructed at National Highway in Razzaq Abad.

"CDGK would establish a new landfill site at National Highway besides upgrading the existing two which are located in Surjani Town and Hub River Road", they added. They, however, expressed concern that the people were selling out to scavengers from the informal sector their "combustible" garbage, like rubber, paper, tires, clothes, plastic, wood etc which are a prerequisite for the energy generation.

"For generating energy we must have garbage with an extensive calorific value or in other words combustible material but people are prone to sell this type of wastes to the informal sector", sources said, adding that "what they leave for us is the inert material which can not be used for the energy generation purpose".

It must be recalled that the CDGK is working on the SWM project under a comprehensive strategy to keep the city clean and build a power plant, which would generate 30 to 60 megawatt electricity using 1000 tons of garbage per day.

Karachi produces 10,000 tons of garbage daily therefore the CDGK has planned to sign agreements with different firms which could arrange for lifting of garbage from each home with modern machinery and then make it to transfer to the landfill sites after packing it by modern methods. The city government has also procured machinery of a worth Rs 700 million to re-organise SWM on modem scientific methods.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Pakistan's future lies with emerging economies of region ​

ISLAMABAD (August 18 2007): Speakers at a one-day seminar here on Friday said that Pakistan's future lies with emerging economies of the region and stressed to avail the current opportunities for prosperous future of the country.

The seminar titled, "An Analysis of Stock Market and Monetary Policy in Pakistan from a Global Financial Market's Perspective," was organised by the Pakistan Institute of Development Economics to overview the progress of financial markets in the country.

Professor Mangla of Haworth College of Business, Western Michigan University presented the subject and focused on various aspects to make Pakistan's monetary policy more effective. He said, Pakistan must get involved in regional economies and strengthen economic co-operation and trade relations with regional countries for better prospects.

"As compared to the world trade there are more benefits in regional trade, Pakistan will have to strengthen economic co-operation with China and India for long term economic benefits," Professor Mangla said adding, "China, the 3rd largest economy of the world at present, has very promising future."

He also said that India, too, has potential to play pivotal role in the regional economy and a healthy regional co-operation would ultimately produce fruitful results for all the countries. Mangla termed, "Chindia" (China and India) has almost witnessed double digital real growth, adding that this would effect us even if we do not join them.

However, he observed "We cannot ignore these economies so we have to join them for our own interests. He further explained in his paper, "Initially it may seem that Pakistan's imports excel regional exports and some companies may also face difficulties, but in the long run, it would benefit Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Integrated plan to electrify far flung areas of AJK ​

MIRPUR (August 18 2007): An integrated plan has been chalked out for the electrification of far flung and remote areas of Azad Jammu and Kashmir (AJK) including various parts of Mirpur division, official sources said.

The sources told APP here on Friday that plan is being executed under the phased programme and all the ten percent remaining areas of Mirpur, Bhimbher and Kotli districts of this division will be electrified by the end of next year.

The sources continued that under the plan two 132KV-grid stations at the cost of about Rs 130 million each have so far been installed in Dadayal sub-division of Mirpur District and Khuiratta in Kotli district. Both of the grid stations would not only help in to electrify more and remaining rural and far flung areas of Dadayal sub-division and Khuiratta but would also help in to ensure the smooth and stable power supply to the existing and upcoming power consumers.

Over 90 percent of the areas of Mirpur and Bhimbher districts have so far been electrified. The sources said that priorities have been fixed to improve the power supply system in this division side by side other parts of Azad Kashmir in view of the mounting load on the lines. About 450 transformers of different strength have been added in the plan to replace the old ones who have or going to complete their age. Special attention is being given to overcome the problem of low voltage to ensure the smooth and uninterrupted supply of electricity to the consumers.

Under an integrated plan for electrification of the remote areas, the department has electrified the far flung villages of Kadiala, Rahel and Haripur, close to the Line of Control in Samani sub-division of Bhimbher district. Five more 132-KV grid stations are proposed to be installed in various parts of Mirpur districts under the gigantic Mangla Dam raising project.

They said that a liaison would be managed with Wapda to ensure the modern network for supply of electricity to the consumers in the proposed New Mirpur city. The sources revealed that the electricity billing system is also being computerised in entire Azad Jammu Kashmir in the near future. This would help in to ensure the correct billing of the consumed power besides removing the problems in the manual system.

The electricity department is providing electricity to the consumers in Azad Jammu Kashmir at the same tariff as being enforced in Pakistan. The sources said that the number of power consumers in Mirpur city has reached to over 55,000 at present. The department has fixed the priorities to resolve the problems of the consumers.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

External liabilities rise to $40bn ​

ISLAMABAD: Pakistan’s external liabilities, external debt plus foreign exchange liabilities, soared to $40.17 billion at the end of June 2007 from $37.24 billion at end-June 2006, depicting an increase of $2.931 billion in one year.

Interestingly, in the same time, official liquid reserves with the central bank also increased to $13.33 billion by end-June 2007, compared to $2.568 billion in the last fiscal.

Of the total liabilities, the external debt has surged by $3.04 billion to $38.7 billion at the end of June 2006-07, against $35.65 billion recorded at the end of June 2006. While the foreign exchange liabilities declined to $1.473 billion as compared to $1.586 billion recorded at the end June 2006.

The State Bank of Pakistan (SBP) data says that the government during the fiscal also retired foreign debt of $2.98 billion.

Accumulating the figures i.e. increase in total debt of more than three billion dollars and payment of $2.98 billion as debt servicing indicates that in the fiscal year 2006-07, Pakistan has borrowed about $6 billion from external sources if they are multilateral or bilateral donors.

In absolute terms, external debt is increasing, but according to the government economic planners the debt to GDP ratio was on the decline. They say that increase in absolute term was not worrisome phenomenon as its burden on the economy was not increasing.

On the other hand, independent economists say that floating of euro and dollar bonds were a source of building up country’s reserves.

They say that floating of bonds on one hand is increasing government liabilities while on the other adding to the country’s reserves.

According to the bank’s data during the last five years, the country’s public and publicly guaranteed debt has been on the rise.

On June 30, 2003, it was $29.23 billion, June 2004 ($29.87 billion), June 2005 ($31.08 billion) and at the end of the same month of 2006 it increased to $32.58 billion. And now, at end fiscal 2006-07, the publicly guaranteed debt further inched up with big margin to $35.29 billion.

In public and publicly guaranteed debt, the medium and long-term debt (more than one year) during the period under review augmented by $2.85 billion to $35.26 billion as it was $32.41 billion at the end of June 2006.

According to the break-up of the medium and long-term debt, the multilateral debt by end-June 2007 grew by $2.157 billion to $18.687 billion and bilateral debt up by $155 million to $1.002 billion compared to June 2006 when these stood at $16.53 billion and $847 million respectively.

While during the period under review, the volume of military debt declined by $47 million to $83 million, Paris club debt by $137 million to $12.694 billion as compared to $130 million and $12.83 billion respectively in June 2006. Euro bonds/Saindak bonds up by $747 million to $2.655 billion as compared to $1.908 billion recorded in June 2006.

The significant feature of SBP data was that the short-term external debt (less than one-year) from Islamic Development Bank (IDB) declined to $25 million at end June 2007, as at the end of last fiscal, it was $169 million.

The Private non-guaranteed debts (more than one-year) during the period also inched up to $2.002 billion from $1.585 billion at the end of FY-2005-06.

The State Bank’s data also depict a decline of about $84 million in the International Monetary Fund (IMF) debt.

At the end of June 2007, it declined to $1.407 billion as compared to $1.491 billion recorded at the end of June 2006.

The foreign exchange liabilities excluding foreign exchange bearer certificates, foreign currency bearer certificates and Dollar bearer certificates (which stand at $5 million) declined by $113 million during the period under study to $1.473 billion from $1.586 billion at the end June 2006.

Of this, during the period under review the special US dollar bonds declined by $91 million to $156 million, as it was $247 million at the end of the fiscal 2006.

Besides, foreign currency bonds (NHA/NC) declined by $21 million to 88 million from $109 million end June 2006.

While the central bank deposits, NBP/BOC deposits and other liabilities (SWAP) remained unchanged for the last five years at $700 million, $500 million and $30 million respectively.

External liabilities rise to $40bn

 

[Neo]

Remittances reach $495.69m ​

KARACHI: Remittances sent home by overseas Pakistanis continued to show a rising trend as $495.69 million were received in the first month (July) of the current fiscal year 2007-08, showing an increase of $118.68 million, or 31.48 per cent, over the same month of last fiscal year.

The amount of $495.69 million includes $0.29 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs), the State Bank said on Friday.

The inflow of remittances into Pakistan from almost all countries of the world increased last month as compared to July 2006.

Remittances in July 2007 from the US, Saudi Arabia, the UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), the United Kingdom and EU countries amounted to $127.99 million, $106.55 million, $77.35 million, $70.30 million, $39.50 million and $14.81 million, respectively.

In July 2006, these were $90.73 million, $80.92 million, $59.62 million, $57.48 million, $31.70 million and $10.53 million, respectively.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during July 2007 amounted to $58.90 million as against $45.35 million in July 2006, showing a rise of 29.87 per cent or $13.55 million.

It may be mentioned here that in the fiscal year 2006-07, the country received the highest-ever amount of $5,493.65 million as workers’ remittances compared to $4,600.12 million in the preceding fiscal year 2005-06, showing an increase of $893.53 million or 19.42 per cent.

The monthly average of remittances during the last fiscal year remained at $457.80 million, up 19.42 per cent when compared to $383.34 million during fiscal year 2005-06.

Remittances reach $495.69m

 

[Neo]

IT sector may create 30,000 jobs ​

ISLAMABAD: Pakistan can generate 30,000 jobs for the unemployed youth in the Information Technology (IT) sector after reducing 10 per cent piracy rate from the current 86 to 76 per cent,” said Microsoft-Pakistan Licence Compliance Manager Farhan Junejo on Friday at a training programme.

He said this while addressing a week-long “IPR Law Enforcement and Cyber Investigation Training,” organised by the American embassy.

The law enforcement personnel from FIA, police and judiciary are being trained to help them investigate and prosecute Intellectual Property Rights (IPRs) related crimes in the country.

He said nearly every sort of software piracy is present in Pakistan including commercial piracy, corporate end user piracy, internet piracy, casual copying and CDs compilation, which needs to be addressed.

He said Pakistan is also a signatory to the World Intellectual Property Organisation (WIPO) conventions for protecting the copyright works of the software developers.

Quoting the International Data Corporation (IDC) report Farhan said a 10 per cent reduction in the global software piracy rate could in fact add 1.5 million jobs, increase economic growth by $400 billion and generate $64 billion in new taxes to help governments fund public programmes like education, health care and law enforcement.

In 2006, he said the IT industry provided almost a trillion dollars revenues to the global economies. The hardware sector contributed $330 billion, the packaged software $180 billion and the services generated $420 billion in revenues.

IT sector may create 30,000 jobs

 

[Neo]

Three million to have micro-credit facility by 2010, says PM​

ISLAMABAD: Prime Minister Shaukat Aziz on Friday said the government has envisaged extending the coverage and outreach of micro-finance facilities from the present one million to three million borrowers by 2010 as part of its poverty reduction strategy.

He was chairing a high level meeting which approved in principle the action plan on expanding the micro-credit facility to poor households here at PM’s House.

Mr Aziz said the grassroots lending to the poor through bank credit would help them increase their income. Micro-financing, he said is the best way of reaching out the marginalised and the forgotten which can change their destinies as experienced in a number of developing countries. This model is based on the strategy that poverty decreases by increasing the income.

He said the government is focusing on improving the standard of living of common man and added lack of resources is a major impediment in their efforts to have a better standard of living. Micro credit facility is an effective enabler to generate economic activities, reduce poverty and improve living standards.

He expressed confidence that this facility would provide them with opportunities to augment their income and move up the social ladder. The government is promoting public-private partnership and encouraging them to come forward and involve themselves in organising micro-finance credits to the less-privileged sections of society.

The meeting approved in principle the action plan to create a micro-finance bank under the National Rural Support Programme (NRSP). It was emphasised that NRSP’s lending operations as a bank should be sustained through raising funds by attracting deposits for which the rural community in particular has to be mobilised.

The delivery cost could be reduced through efficiency while the staff, to be recruited, has to be committed with a mission to serve the poor.

Earlier in his presentation, Dr Rashid Bajwa, CEO NRSP, explained the salient features of the action plan to increase the number of active borrowers from one million to three million by 2010 as well as opening up the lending operations by establishing a micro-finance bank. He elaborated that out of the existing number of borrowers 60 percent are in rural areas and 40 percent in urban areas, which has helped increase the income of the poor people through availability of credit for establishing new sources of income.

He further said the utilisation of micro-finance in the rural areas would help develop the agriculture, livestock and allied sectors.

Dr Bajwa informed the meeting that the micro-financing efforts of the government have been a success, particularly the NRSP growth which was recorded at 105 percent for the year 2006-07 over 2005-06. Explaining the financing and growth strategy, he said the NRSP is working all over the country reaching union council level and its operation would be further expanded in future. app

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Telecom sector creates 80,000 jobs​

LAHORE: About 80,000 jobs have been created by the telecom sector while people have also benefited from the sector in many ways, a recently launched research study revealed on Friday.

The study said more than 500,000 indirect jobs have been created through the telecom sector. The study is entitled, ‘Telecom Liberalisation in Pakistan: Implications for a Common Man’ and the author is Ali Salman of a Lahore-based consultancy firm called Development Pool with support from a German foundation.

The study further reveals that telecom sector is presently providing more than 10 percent of total employment while the share of telecom in GDP for 2005-06 was 2 percent.

The study maintains that liberalisation agenda is considered as a welcome change. According to findings of the survey done under the study, 46 percent users of the telecom services believe that Internet charges are low and affordable while 40 percent users are indifferent to Mobile Number Portability and 80 percent users now benefit from value added services as compared with 34 percent four years ago.

Around 60 percent users benefit from tele-banking nowadays as compared to 36 percent in 2003, 73 percent believe that mobile phones have helped them significantly in cutting the time required to arrange a meeting by at least 50 percent. Around 80 percent users believe that their social contacts and networking has enhanced by 100 percent through regular use of mobile phones and 75 percent business customers believe that their profitability has been enhanced with the use of mobile phones.

The study has also identified best practices for possible liberalisation in various economic and business sectors providing directions for vital policy making and planning.

The study recommends that policy makers would do well by carefully considering the citizens - or end users - and consulting them before launching any reform agenda ostensibly in the name of citizens. The success of telecom liberalisation offers an illuminating example.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Troubled Pakistan aims for a larger share of outsourcing ​

By John Ribeiro

San Francisco (IDGNS) - Pakistan, which has been affected by Islamic extremist violence and civil unrest against the current government, is trying hard to compete for a share of the offshore outsourcing business.

The country's highly skilled, English-speaking people provide a key advantage, said Yusuf Hussain, managing director of the Pakistan Software Export Board (PSEB), a government agency set up to promote the IT, BPO (business process outsourcing), and call center industries in Pakistan. Some multinational companies have centers in Pakistan, while others are outsourcing work to IT and services companies in the region, he added.

Salaries in Pakistan are lower by 30 percent than in neighboring India, said Ashraf Kapadia, president of the Pakistan Software Houses Association (PASHA), an association of software, call center, and BPO companies in Pakistan.

On the downside, the country has an image problem, according to Kapadia. "There is this perception abroad that Pakistan is politically unstable," he said.

However, these problems have not scared away customers, Kapadia said. His software and BPO company, Systems Limited, has a number of large multinational customers, including Bank of America and Citigroup, which continue to do business with his company, despite the country's unrest, he said.

A customer that has never done business in Pakistan may hesitate to outsource to a company in the country, Kapadia said. But regular customers understand that Pakistan is large, and trouble in a corner of the country will not affect their operations in another part of the country, he said. Software, BPO, and call center companies have in place disaster recovery strategies, and centers in many locations, to ensure that work does not get disrupted, he added.

Pakistan's exports of IT and services have grown by 50 percent year-on-year for the last three years, Hussain said.

The PSEB now has an ambitious target: to boost exports of software, IT services, call center, and BPO from $1.4 billion in the fiscal year ended June to about $4.5 billion by 2010. By then, the overall IT and services industry in the country is also expected to grow to $10 billion from the current $2.4 billion a year.

In computing its IT and services export figure, Pakistan includes exports by Pakistani companies, salaries of its people with work permits working on IT jobs abroad, as well as sales of services to operations in Pakistan of foreign companies and foreign government agencies.

Several challenges abound. Pakistan has similar characteristics that have made India successful as an outsourcing hub, such as its low-cost, skilled, English-speaking staff, said Siddharth Pai, a partner at sourcing consultancy firm, Technology Partners International in Houston. But the IT industry in Pakistan is still in its early stages, and companies have very little experience in the business and lack the ability to scale their operations, he added.

To boost the country's outsourcing industry, PSEB and other Pakistan government agencies have launched a multipronged strategy covering infrastructure, cheaper communications, investment in education, quality certifications, and a data confidentiality law.

The PSEB is also investing in promoting Pakistan as an offshore location to European and U.S. companies. Most of the media coverage of the country so far has focused on law-and-order problems, rather than on its thriving economy, Hussain said.

Not many people outside Pakistan know, for example, that the country has over 63 million mobile phone subscribers for a population of about 164 million people, Hussain said. The percentage of Pakistan's population using mobile phones is more than that of India, which is seen as a key Asian market for mobile-phone vendors.

Besides helping to earn foreign exchange and provide large-scale employment in Pakistan, the country expects a booming IT industry to change the nation's business culture from "industrial age" to a more modern, "knowledge age" industry, Hussain said. Growth of the IT sector will also help increase productivity in local agriculture and industrial sectors, he added.

The PSEB has introduced a package of incentives including tax breaks for the IT sector until 2016, and low-rent facilities for IT companies. The PSEB already operates 750,000 square feet of software technology parks in eleven building across Pakistan, with large IT parks planned in Islamabad, Karachi, and Lahore. For the Islamabad park, the PSEB has invited global developers to bid to set up and operate the park under a "build, operate, transfer" model.

Other government agencies are also pitching in. The country is investing in education with an eye to avoid the shortages of staff that have affected India's outsourcing industry. The annual budget of the Higher Education Commission has gone up to about 30 billion Pakistan rupees ($497 million) from 600 million rupees seven years ago, Hussain said. Nine engineering universities are being set up with foreign collaboration, and will have foreign faculty, curriculum, and certification, he added.

"We don't have staff shortages now, but that could change in the next three years, as the industry is growing very fast," Kapadia said.

The PSEB is also setting up a venture capital fund, which will be run by international venture capital, Hussain said. The fund will invest in both IT services and products companies, he added.

Troubled Pakistan aims for a larger share of outsourcing - Yahoo! News

 

[Neo]

Rs 725 million allocated for Balochistan district governments ​

QUETTA (August 19 2007): Share for the district governments in the current Balochistan financial budget has been increased from Rs 82.9 million to Rs 725.5 million with the objective to make the system a success in the province and virtually devolve power to grass roots level, sources in the provincial Finance department told APP here on Saturday.

They said the share of the district governments has been increased manifold in the budget, as present government is keen to resolve the long-standing problems of the people. The local government will spend funds mainly on health, education and water sector schemes, which on one hand ensure these facilities to the people deprived of these facilities while on the other improve their financial condition.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

'Latest technologies can help double exports' ​

MULTAN (August 19 2007): Pakistan can double its exports as it has the potential to do so, but the manufacturers and exporters would have to modernise their machinery, adopt modern technology and fresh designs, improve quality, and curtail prices to compete with India, Thailand, Bangladesh and other countries, said Muhammad Younas, Muhammad Tayyab, Tariq Nawaz Deputy Secretary ministry of Textiles.

Muhammad Mohsin, Registrar of Trade Mark Registry, Muhammad Iqbal Secretary Garments City, Mehmood Shamsul Haq, Assistant Director SBP, Ikramullah Director Trade Development Authority (TDAP) and Taj Din Manshah at a seminar on 'Export of Home Textile Items and Incentive Extended by the Government', jointly organised by All Pakistan Bedsheet & Upholstry Manufacturers Association (APBUMA) and TDAP.

They said ,"We should pay special attention to the research and development, exploring new markets, capturing maximum number of buyers, taking part in international fairs, exhibitions, and festivals to introduce the products."

They said that exporters should investigate the markets thoroughly and must acquaint themselves with the laws, rate of taxes, demands of buyers, colours, designs, etc.

Tariq Nawaz spoke at length on 'Incentives extended by the Government for export of Home textile items', and said that Government would give three percent incentive on the export of white yarn and five percent on dyed yarn and this incentive would help in adopting modern technology.

Muhammad Mohsin, Registrar of Trade Mark, threw light on the significance of export of textile items with brand name after textile quota regime in international markets.

Muhammad Iqbal spoke on export marketing for home textile items and demand in international markets, while Mehmood Shamsul Haq of SBP gave lecture on claim of R & D supports amount, while Ikram-ullah explained the role and importance of Trade Development Authority of Pakistan and said that it was a gift of the present regime for the exporters as well as manufacturers who wanted to bring revolution in their products and exportables.

Business Recorder [Pakistan's First Financial Daily]