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AJK to have new airline soon

MIRPUR (September 03 2007): The Azad Jammu and Kashmir would be air-linked soon with rest of the world through launching new airline service. The air link with rest of the world would not only boost business activity in the area but also provide facilities to the passengers living abroad.

AJK Premier said this while addressing a big gathering at formal inauguration of new commissionerate at Poonch (Rawalakot) late Saturday. Rawalakot - the district headquarter of Poonch, was elevated to the status of divisional headquarter after the Prime Minister formally inaugurated the commissionerate of the newly-carved Poonch division -third one in AJK next to existing Muzaffarabad and Mirpur divisions.

The opening ceremony was presided over by the Premiers Special Assistant and President Poonch district Muslim Conference Dr Muhammad Haleem Khan.

Besides others, Ministers Dr Najib Nuqqi, Qayyum Niazi, Colonel (R) Nasim, Deputy Speaker Sardar Farooq Tahir, MLAs Sardar Yaqub, Chaudhry M. Aziz, Dr Mahmood Riaz, Advisor to Pakistan Premier Raja Iftikhar Ayyub, ex-Speaker Sardar Siab Khalid, ex-Minister Sardar Khan Bahadur, Presidential Advisor Syed Naseebullah Gardezi and others also addressed the ceremony. This would be the first airline of Azad Kashmir having lucrative prospects as 1.5 million Azad Kashmiris are working abroad, the AJK PM said.

The matter of launching new air service with the name of Air Kashmir would be taken into the next cabinet meeting for its formal approval, he said.

The AJK PM also announced construction of two highways with double lanes, expansion of Rawalakot airport to accommodate at least 50 aeroplane at a time. He also gave details of overall development projects, which would be completed in the liberated territory.

Business Recorder [Pakistan's First Financial Daily]
 
Power projects: additional $500 million loan from ADB sought

FAISALABAD (September 03 2007): The government of Pakistan is negotiating with the Asian Development Bank (ADB) for an additional $500 million loan for Power Transmission Enhancement Project II and III to promote the Investment Program, which will improve the energy efficiency and provide institutional capacity including implementation and monitoring support programme, said ADB sources.

The Medium-Term Development Framework envisages additional power generation, transmission, and distribution capacities in order to ensure sufficient electricity supply to meet the projected 8% per annum growth in demand over the planning period. The growth in demand was about 12% in FY2006.

According to an ADB report, Power Generation is expected to grow from about 19,540 megawatts (MW) in 2005 to 162,590 MW in 2030. The bulk of the additional supply is expected to meet through an expansion of domestic and imported thermal and hydropower generation. The Government is currently pursuing a combination of public and private options to ensure new generation to be added as required. The ADB is working with the Government and private power generation developers to finance public- and private-owned generation stations to meet the current and future demand for electricity.

This Investment Program focuses on power transmission. In order to facilitate efficient and effective evacuation of power from existing power stations, the National Transmission and Despatch Company (NTDC), in co-ordination with the Ministry of Water and Power (MOWP), has prepared a Transmission Sector Road Map, 2007-2017. The road map addresses the current shortcomings of the power transmission system by recommending rehabilitation, augmentation, and expansion of projects and power evacuation from the planned power stations in the least-cost power generation plan.

The total cost of the NTDC investment plan is estimated at $3.9 billion. It is envisaged that ADB will finance $800 million (20%) of the total investment plan, ADB report disclosed. As per the report, the 13,051 MW peak demand recorded in 2006 was constrained by the transmission system and there was an estimated 800 MW of unfurnished demand. As a result, some transmission sections operated at or above rating limits, increased the risk of its failure and costly service restoration. The inability to transmit power already available is similar to generate it to overcome the shortage that results in load shedding.

The 500 kilovolt (kV) system provides the main power flow route between the North and South of Pakistan. The bulk of the power is generated in the North (hydropower) and the South (thermal power) with the major load centres being in the middle of the country around Lahore, Faisalabad, and Islamabad. As a result there are always significant power flow from North and South to the centre, depending on the season and the availability of hydropower.

At the end of FY2006, 77% of the 500 kV and 69% of the 220 kV power transformers were overloaded. This means that security of supply standards is insufficient and the NTDC cannot meet its transmission license obligations. The expertise of NTDC operating staff has prevented the situation from becoming worse, but they are constrained to deal with the system under current stress.

Additionally, the key load centres are functioning at a very low power factor combined with long transmission lines, places a very high reactive power requirement on the power transmission system. The reactive power results in a high current flow, which does not contribute to efficient power transmission, reduces the effective transfer capacity of the system causing the transmission system voltages to fall below acceptable limits.

There are plans to increase power generation, but development of the transmission system has not received sufficient attention so far. The increase in power generation will strain the transmission system still further, and the full benefits of the extra power generation will not be achieved without urgent investments in the transmission system.

The ADB also observed that, planning and project development capacity is essential for transmission investments since the system reinforcement lags behind and has a longer lead time than new generation (gas-fired generation plants can be operational within two years of initiation). This further emphasises the importance of advance planning and accelerating the transmission system reinforcement process.

A support component is an integral part of the proposed Investment Program. This component will strengthen the NTDC's project (i) planning, (ii) design, (iii) implementation, (iv) operations, and (v) monitoring capabilities. The total cost of the Investment Program support component is estimated at $10 million for the duration of the Investment Program.

Business Recorder [Pakistan's First Financial Daily]
 
Neelum and Jhelum power project: contract given to Chinese firm: AJK Prime Minister

RAWALPINDI (September 03 2007): Prime Minister of Azad Jammu & Kashmir (AJK), Sardar Ateeq Ahmed Khan has reiterated his government's firm resolve to promote hydro power generation in AJK, saying that every drop of water would be converted into energy.

"Contract for construction of 969 MW Neelum and Jhelum Hydro Power Project has been given to a Chinese company and work on this multi billion project will be executed soon", the prime minister said in an exclusive interview with Business Recorder.

Ateeq Khan said that the potential of more than 7,000 MW Hydro power generation was identified on different rivers of AJK and government would exploit these resources to produce hydro power. "We will be in a position to export electricity to India and other neighbouring countries and strengthen the economy of AJK", he maintained.

"Work is under progress on a 84MW power project costing $120 million in private sector being funded by Islamic Development Bank (IDB) and Asian Development Bank (ADB)", he told adding that an MoU was signed with a Canadian Company for construction of 36MW power project.

Terming the Mangla Upraising Project, as a project to strengthen Pakistan's economy, the AJK Premier said that the capacity of Mangla Dam would be doubled with completion of Rs 60 billion upraising project.

Rs 30 billion have been spent so far on the project and steps are being taken for rehabilitation the affected people, he said.

The AJK Prime Minister reiterated the strong resolve of his government to fulfil the dream of "Green and Skilled Kashmir" to address the poverty, unemployment, illiteracy and environmental issues of the state. "This is a project of economic stability and improving the living standard of people," he observed.

Under this campaign, he said that students from class 8 to 10 would be given technical training in schools, while these schools would be used to impart technical training to non-school going youths. Chinar and other local species of trees would be planted in every school and government building, he said.

"We will be in a position to arrest unemployment by catering a skilled work force," he said. Sardar Ateeq said that AJK Government was encouraging the private sector in hydropower, tourism, agriculture and communication sectors and Private Public Partnership would be preferred. He said that AJK was better place for tea and a tea-growing project of Rs 3.5 billion was launched in partnership with Qarshi Group, Khwaja Foods and Janu Group.

He said that the government had increased the budget of tourism by 1900 percent while 1300 per cent in Environment. The budgets of these two sectors were nominal in past and it was imperative to increase the budget.

Business Recorder [Pakistan's First Financial Daily]
 
Good to read about an increase in tax collection. It's shocking how many people in Pakistan don't pay their taxes. Also good to read that economy is stable. Great thread, keep it up Neo :pakistan:
 
Pakistan: Graft 'rampant' in building of transport network

Karachi, 3 Sept. (AKI) - (by Syed Saleem Shahzad) - The plan to build a transport network from Almaty in Kazakhstan to Karachi in Pakistan in order to develop trade routes between the Central Asian and the Indian subcontinent, could be threatened by corrupt building practices.

A former chief engineer with the Karachi Metropolitan Corporation, which handles public building projects in the southern port city, told Adnkronos International (AKI) that there is rampant corruption in the way in which construction contracts have been awarded to companies to building the flyovers that are part of the transport network.

“Ironically, this practice [corruption] is rampant in this whole project to build the trade communication infrastructure which will link Central Asia to the warm waters of Gwadar and Karachi," Nadeem Ansari, the ex-chief engineer of Karachi Metropolitan Corporation, told AKI.

"Within Karachi, the two main communication corridors have been developed. One corridor, comprising three flyovers and three underpasses was finished last year at a cost of 23.33 million US dollars and another corridor comprising five flyovers costing around 24 million US dollars is underway," he said.

"The contracts have been awarded without pre-qualifications and to those contractors who never built flyovers in the past," said Ansari.

One of the most important flyovers in this project was the Northern By-Pass flyover, in Pakistan’s southern port city of Karachi which connects the trade traffic from northern Pakistan to the south and is part of the trade corridor to link to Afghanistan and the Central Asian republics.

The Northern By-Pass Flyover collapsed on Saturday killing at least six people. The incident reportedly occurred because of a design fault in the project. Initial official inquires revealed that project was awarded without a tender.

It is believed that other transportation networks are under also serious threat as corruption is the major factor behind the poor construction of the flyovers.

“The project's contracts should have been tendered at a larger scale and foreign consultants s should have been encouraged to participate in the contracts," he said.

"But ironically the demands for kickbacks is as much as 40 percent which no professional firm with an international reputation can afford to pay that amount and that’s why such a high profile consultancy contract was awarded in contravention of all tender rules and in some cases to little known companies,” Nadeem said.

Pakistan began to work on improving road and trade links in 2001.

The then Pakistani finance minister and current prime minister Shaukat Aziz had announced that a rail link would be built in Baluchistan province from Dalbandin via Panjgur to the Gwadar deep-sea port with Chinese cooperation and pledged to renew the prospects for an alternate land-sea trade outlet for Central Asia through Pakistan via the Indus Basin corridor.

The project would initially cost approximately 142 million dollars, relying partly on traffic through Pakistan's existing road rail facilities.

The entire project would be completed in two phases at an estimated cost of 1.42 billion dollars.

There was the plan of a Almaty-Karachi road/railway networks to be extended and linked through other Afghanistan-Pakistan routes surrounding Bolan, Gomal, the Khyber Pass and Pakistan’s northern areas.

This would allow Turkmenistan, Uzbekistan and Tajikistan to trade through the Arabian Sea on the doors of South and Southwest Asia and the Middle East with distances reduced by approximately 1200-1400 kilometers.

Diplomatic circles and government officials in the participating countries value the importance of Almaty-Karachi and related link roads as economically cost-effective, and relatively safe and uncontested when compared to other turbulent routes.

AKI - Adnkronos international Pakistan: Graft 'rampant' in building of transport network
 
Pakistan determined to develop nuclear energy: Aziz

By IANS
Monday September 3, 2007

Islamabad, Sep 3 (IANS) Pakistan 'with its high growth trajectory' is determined to develop and utilise nuclear energy, among other resources, to meet its growing requirement, Prime Minister Shaukat Aziz said, according to Online news agency.

Every country has the right to develop and use nuclear energy for peaceful purposes under the appropriate international safeguards and guidelines, the prime minister said in address to a conference on 'Energy: Sources of Regional Cooperation' at the Institute of Strategic Studies here.

'We believe there needs to be a level playing field for all countries to have access to civilian nuclear technology without prejudice or discrimination', Aziz said.

To meet future energy challenges the international community faced, he said there was no option but to cooperate with one another.

'Competition between us will not only be counter-productive but would be immensely destructive,' he said, adding that the 'fragile international political system, which is already faced with serious challenges, may well collapse as a result of conflicts over energy resources'.

'We must act now to save the world and especially our region from such a disastrous fate', Aziz maintained.

About Iran's nuclear programme, he said: 'It is also desirable to reduce tensions between Iran and the Western countries, as these threats will not only undermine regional peace and security but would also derail efforts to ensure energy security for the entire world.'

Commenting on the Iran-Pakistan-India gas pipeline, the premier said: 'The project is now at an advanced stage of negotiations and we are confident that it will be launched in the near future.'

'Similarly, we are exploring the possibilities of a pipeline from Turkmenistan to Pakistan through Afghanistan, which could be extended onward to India. Import of LNG from the Gulf countries is also a growing option for Pakistan as well as for countries in our region,' he said.

Pakistan determined to develop nuclear energy: Aziz - Yahoo! India News
 
Japan firm to invest in new steel mill

KARACHI, Sept 3: Japan’s Metal One Corp., a subsidiary of Mitsubishi Corp, will have a 26 per cent stake in Aisha Steel Mills (ASM), a joint venture firm being set up in Pakistan to meet growing demand, a venture official said.

Pakistani firms — Universal Metal Corp and Arif Habib Ltd - will have a 49 per cent and 25 per cent stake, respectively, in the venture, being established in Karachi at a cost of $100 million, said Hasib Rehman, chief executive of ASM.

“The plant is expected to be completed in two years and it will have an initial capacity of 220,000 tons per annum,” Rehman told Reuters.

“The steel mills will cater to the growing demand of cold-rolled coils (CRCs) in the country and cater to the automotive and engineering industries, as well as value-added products for the home appliances sector,” he said.

The capacity of the mills will be later increased to 350,000 tons, said Rehman.

Annual demand for CRCs in Pakistan is about 450,000 tons, most of which is met through imports, analysts said.

ASM would be the second Pakistani firm to manufacture CRCs after the state-run Pakistan Steel Mills.-Reuters.

Japan firm to invest in new steel mill -DAWN - Business; September 04, 2007
 
NADRA among top 50 IT companies of world

Wednesday, September 05, 2007

LAHORE: The National Database and Registration Authority (NADRA) has for the third consecutive year been acclaimed as among top 50 IT companies of the world.

The NADRA has been placed amongst the Top 50 e-Passport Technology Suppliers for the third consecutive year by one of the leading IT magazines entitled ‘ID World’ that highlights “the players of the auto ID industry”. The NADRA is in its list of top 50 e-Passport technology suppliers that includes mostly the companies from the US and Europe.

It is interesting to note that NADRA has not been associated with the issuance of driving licence but it won the Bangladesh Driver’s License Project in February last year. Similarly the Database Authority won the contract for Kenya Passport issuing system this year after eliminating six renowned firms from United Kingdom, USA, Canada, Germany and Israel.

Keesing the Journal of Documents & Identity, a world renowned bi-monthly magazine for developments in the security document industry also commended NADRA’s multi-biometric passport, an achievement that placed the organisation among the top 50 IT companies of the world.

NADRA was established in 2000 to provide integrated homeland security solutions for Pakistan. NADRA has successfully issued 62 million Multi-Biometric National ID Cards in the last five and a half years and over 4.3 million Multi-Biometric Electronic Passports, containing an RFID chip, facial and fingerprint images of the bearer, PKI and other security features compliant with ICAO standards, since October, 2004.

NADRA among top 50 IT companies of world
 
ABN to lend Rs500m to microfinance institutions

LAHORE, Sept 3: ABN Amro plans to lend Rs500 million market rates to micro-finance institutions to support the micro-finance market in Pakistan.

“The amount will be increased to Rs2 billion later on,” bank’s chief executive officer Naveed Khan told reporters at a news conference on Monday.

The call for the conference was given to announce formal re-branding of branches of the Prime Commercial Bank, which ABN Amro has acquired for $230 million.

In terms of rupee, the bank paid Rs54 per share to acquire 96.4 per cent shareholding in the Prime Commercial Bank, which is its first acquisition in Asia. With the acquisition, ABN Amro becomes the second largest foreign bank operating in Pakistan. Mr Khan said his bank was committed to Pakistan and its economy, which he described to be very lucrative for the banking sector.

ABN to lend Rs500m to microfinance institutions -DAWN - Business; September 04, 2007
 
Japanese investments, exports to Pakistan rise

Wednesday, September 05, 2007

KARACHI: According to trade statistics of Japanese Ministry of Finance imports from Japan into Pakistan stand at $1.76 billion showing a 15.9 per cent increase as compared to the previous year.

In the same period, Pakistan’s exports to Japan increased 44.8 per cent to $0.281 billion. Initially a major exporter to Japan, Pakistan is now a major importer from the country.

Associated transport equipment and machinery and mechanical appliances hold 70 per cent share in total imports from Japan. Transport equipment showed an increase of 21.6 per cent from 2005 mainly due to the surge in market demand for cars and the subsequent import.

Machinery and mechanical appliances mainly include textile machinery and have shown a small increase of only 4.8 per cent as compared to last year. The Japanese trading houses in Pakistan and the textile associations are of the view that the textile industry is currently not thinking of heaving investments and expansions as the exports have not been increasing up to the mark.

Textiles constitute 37.6 per cent of the total Pakistan’s exports to Japan. In 2006 textile exports to Japan were $ 78.2 per cent million, which showed a 7.6 per cent decrease as compared to the previous year.

Direct investment recently has shown a very encouraging trend in the last couple of years increasing by 41.4 per cent in 2006-07 to 68.3 million. The foremost area of investment is the automobile sector.

According to PAMA statistics, production of cars stood at 0.160 million units per year 2005-06. Share of Japanese carmakers in the domestic market is an overwhelming 96 per cent. Pak Suzuki, the leading market holder in Pakistan increased its production from 70,000 units per annum in 2005 to 150,000 units per annum by 2007.

Indus Motors and Honda Cars both increased their production capacity from 43,000 and 25,000 units respectively to 50,000 units by 2006.

Japanese motorcycle manufacturers have also increased their production capacity. Recently Atlas Honda, the leading market share holder in motorcycles built a new factory with increased production capacity from 0.4 to 0.5 million units per year.

Apart from Automotives, huge Japanese investment is coming in the textile sector as well. YKK Zippers have started constructing their factory at the Karachi Export processing Zone (KEPZ). The Release Contract for the factory is for a premise 50,000 sq meters. The first phase of development is being done on 8,600 sq meter facility at a cost of $15 million investment since January 2007 including the cost of the contract.

Recently, NYK Group South Asia Pte. Ltd., a Singapore based wholly owned subsidiary of Nippon Yusen Kabushiki Kaisha, Japan has established NYK Line Pakistan Pvt. Ltd. The new company began operations on 20th August.

The annual container handling volume at the port of Karachi has reached one million TEUs and growth is expected to continue. The purpose of the establishment of this local company is to respond to increasing demand in this region.

However, Japan External Trade Organization is concerned about the economic situation in Pakistan. It is very unclear as to what the future will unfold and many private inquirers from Japan are being hesitant till the election time is over.

Japanese investments, exports to Pakistan rise
 
Airblue takes record passengers

Wednesday, September 05, 2007

KARACHI: Airblue has announced the record monthly travel of over 100,000 passengers and the highest revenue ever on its network in August.

Managing Director Syed Nasir Ali stated that the airline had been able to achieve this performance due to continuous growth in its network and induction of the latest in industry systems. He cited the addition of Islamabad to Manchester flights, the first-ever long-haul flights by a private sector Pakistani airline, as a major contributor to these record revenues and number of passengers flown.

Airblue has unveiled extensive growth plans with the purchase of 14 new-generation aircraft, with deliveries starting in 20 months, and route network growth with additional frequencies on existing destinations and opening of new routes in Europe and the Middle East in addition to the domestic market. The airline plans to increase its flights from Islamabad to Manchester to daily frequency and start flights on the Islamabad to Lahore sector in the near future.

Airblue takes record passengers
 
EU investing in social sector uplift programmes: envoy

KARACHI (September 05 2007): Ambassador European Union (EU), Jan De Kok on Tuesday said that EU has been investing in a number of social sector development programmes in the four provinces of Pakistan. Addressing the newsmen at 'Meet the Press' arranged by Karachi Press Club (KPC) here on Tuesday at the KPC, he said the concentration of resources remains on the social sector.

"We are mainly focusing on education and in this regard about 40 to 45 million euros are being spent on educational projects in Sindh," Jan De Kok informed. He said rural development is another area of focus in Pakistan and projects are being executed in NWFP, which according to him has the largest number of poor people of the country.

The ambassador said EU has finalised a funding programme for co-operation with Pakistan in the next seven years and under this programme 50 million euros will be invested here. He also mentioned the formation of a joint commission of EU under which assistance will be extended in trade, science and technology and co-operation to Pakistan.

Replying a question, he said EU looks after the money it spends in different projects extremely carefully and ensures payment directly to the contractors involved. Giving historical account of the EU, he said the community started with six countries in the fifties and now comprises 27 member countries. Croatia and Turkey have aspirations to become members of EU, he added. "The EU will be celebrating its 50th anniversary this year," he announced.

He said during the last 50 years, the EU has made huge success in terms of improving the socio-economic and political environment across the world, particularly in the European countries.

Business Recorder [Pakistan's First Financial Daily]
 
Airblue takes record passengers

Wednesday, September 05, 2007

KARACHI: Airblue has announced the record monthly travel of over 100,000 passengers and the highest revenue ever on its network in August.

Managing Director Syed Nasir Ali stated that the airline had been able to achieve this performance due to continuous growth in its network and induction of the latest in industry systems. He cited the addition of Islamabad to Manchester flights, the first-ever long-haul flights by a private sector Pakistani airline, as a major contributor to these record revenues and number of passengers flown.

Airblue has unveiled extensive growth plans with the purchase of 14 new-generation aircraft, with deliveries starting in 20 months, and route network growth with additional frequencies on existing destinations and opening of new routes in Europe and the Middle East in addition to the domestic market. The airline plans to increase its flights from Islamabad to Manchester to daily frequency and start flights on the Islamabad to Lahore sector in the near future.

Airblue takes record passengers

Can we please privatize PIA now? Sell a management stake to these guys and take a large part public after a couple of years.
 
I agree AM, only pravatisation can save PIA from the current crisis. Atleast the management stake should come under foreign leadership to end corruption and nepotism in the enterprise.
 
Cement exports register record growth of 144 percent

KARACHI (September 05 2007): Cement exports registered a record growth of 144 percent during August 2007 due to huge exports orders, over production and better quality, industry sources told Business Recorder on Tuesday.

They said that the cement industry in the country was growing rapidly for the last two years and its production capacity had raised by around 40 percent to 30 million tonnes from 21 million tonnes. Statistics, made available from All Pakistan Cement Manufacturers Association (APCMA), show that during August the country's cement export reached 575,987 tonnes as compared to 236,098 tonnes during the same period of 2006, depicting an increase of 339,889 tonnes or 144 percent during the last month.

Local cement shipments reached 1,963,123 tonnes during the last month from 1,561,979 tonnes in August 2006. Last month, overall cement dispatches totalled 2,539,110 tonnes, or 41.21 percent as compared to 1,798,077 tonnes during the same period last year.

In addition, the cement exports have crossed one million tonne-mark in just first two months (July-August) of the current fiscal. During July-August, the cement exports depicted an upsurge of 139 percent to 1,015,084 tonne against 424,260 tonne during same period of last fiscal.

The local dispatches during the first two months of 2008 fiscal year have reached 3,912,254 tonnes from 3,064,957 tonnes during July-August, depicting an increase of 28 percent. Overall dispatches have gone up by 41.23 percent to 4,927,338 tonnes during July-August from 3,488,857 tonnes during the same period of last year.

"Cement export would further increase in the future, as the export to India would resume within the next few days," said APCMA Secretary Shahzad Ahmed. He said that the Bureau of Indian Standard (BIS) had issued quality and export certificate to the two leading Pakistani cement manufacturers, Lucky Cement and Maple Leaf Cement.

"The issuance of BIS certificate was the major hurdle in the export to India," he said. He said the cement manufacturers had made massive investment under their expansion plans during the last three years, boosting the performance of the cement sector.

He said that the reconstruction process in Afghanistan and fast development work in Dubai had given rise to cement demand. Besides, the demand from Iraq had also pushed the country's cement export to the all time high level during July-August of the current fiscal year.

Business Recorder [Pakistan's First Financial Daily]
 
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