Pakistan Economy - News & Updates - Archive

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Pak-Tunis trade ties in different sectors to be bolstered
ISLAMABAD: Pakistan and Tunis will boost their trade ties in textile, auto industry, financial and hotel sectors.

Prime minister’s Finance Advisor, Dr. Salman Shah and Tunis Minister for Industry and Energy, Afeef Shalbi in a meeting held here decided this. Afeef Shalbi told the meeting that the Tunis industrial exports valued at $10 billion and Pakistan could export raw materials worth $2 billion to this market.

Dr. Salman Shah on this occasion offered training facility for Tunis industrial workers in textile and financial sectors, while Tunis to Pakistan in hotel industry. The meeting also discussed the possibility of the setting up of Islamic Economic Union under OIC.

Pak-Tunisia sign MoUs to boost economic cooperation

 

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PTDC, IPDF sign deal to develop infrastructure ​

Wednesday, September 05, 2007

ISLAMABAD: In a bid to promote and develop the tourism industry, the government is all set to construct a corporate complex in Islamabad under its Public Private Partnership (PPP) mechanism.

To this effect, an agreement was signed here on Tuesday between the Infrastructure Project Development Facility (IPDF) and the Pakistan Tourism Development Corporation (PTDC). CEO IPDF Aijaz Ahmad and Managing Director PTDC Salman Javed signed the agreement.

It is worth mentioning that IPDF has been recently established under the aegis of the Ministry of Finance and Economic Affairs to facilitate development of infrastructure projects under the PPP modality.

The lack of infrastructure is of the major bottle-necks in promotion and development of country’s tourism industry. Therefore, the government is now making hectic efforts to overcome these deficiencies as experts believe in alleviating these barriers, enabling the government to earn billions of dollars in foreign exchange.

Under the agreement, IPDF would provide technical assistance to the PTDC including provision of qualified advisory firms for constructing a Corporate Complex on an area measuring 7544.44 square yards in sector F-5/1, Islamabad. The advisory team, comprising financial, legal and technical experts, will help it in structuring the best options to implement the Project.

In addition to housing PTDC’s head office, the complex will also house other corporate offices, auditoriums, audio/visual centers, tourism facilitation centers, and additional office floor space.

After signing the agreement, MD, Pakistan Tourism Development Corporation Salman Javed said that the construction of PTDC’s Corporate Complex is part of the business plan drawn to make PTDC self-sufficient within the next two years.

He further said that very soon other similar projects would also be coming up as part of the strategic developmental plan wherein other PTDC assets are also planned to be incorporated into Tourism Complexes such as Motels, Beach Resorts, Spas, etc. under the PPP modality.

Aijaz Ahmad commenting after the signing ceremony that the PPP mechanism would ensure a professional and fast track approach to PTDCíS developmental strategy. “PTDC is marking the ongoing year under the banner of “Visit Pakistan” and today’s agreement would help in promoting tourism activities in the country through structuring the best options,” remarked MD PTDC.

PTDC, IPDF sign deal to develop infrastructure

 

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EU keen to enhance trade with Pakistan​

KARACHI, Sept 4: The EU wishes to increase the quantum of trade and aspire for closer cooperation in fields of mutual interest such as social sector, governance, science and technology. It, however, can not allow Pakistani seafood to enter its markets as it does not meet European food standards.

This was stated by the EU Ambassador to Pakistan Jan De Kok while responding to a question after his brief speech at the Karachi Press Club on Tuesday. He was the first ever EU diplomat to visit the KPC.

He further said that the policy of temporary restriction on the Pakistan International Airlines’ aircraft would also continue till the time qualifying standard requirements to visit European destinations were achieved.

“We are committed to our consumers, who are aware and very sensitive over the quality of supplies in the market, particularly of food and food products. We are not satisfied with the sanitary conditions at preparatory and processing stages of seafood,” he said.

About PIA Mr Kok maintained that it was a similar issue of safety that led to a temporary ban.

“We have no wish to ban either the seafood or your flights to EU but we also can not compromise on our standards. So we hope that standards are obtained for the benefit of both Pakistan and the EU,” he said. He however admitted that there was great potential to enhance two way trade.

Kok made no comment on possibility of a free trade agreement between the EU and Pakistan. He also avoided speaking on the issue of five per cent anti-dumping duty on Pakistani bed linen and exclusion of the country from special preferential treatment that “our other South Asian neighbours, except India, enjoy.”

He, however, claimed that the EU kept a close vigilance on all its programmes in Pakistan that have expanded since September 2004 — three fold after the third generation cooperation agreement was enforced.

He said that projects were monitored and evaluated and pilferage was not tolerated and those found involved in wrongdoings were actually proceeded against.

“I have zero tolerance for two things that are strictly prohibited in my office — corruption and harassment,” he said.

Explaining rationale of projects and programmes that the EU have launched in the country he said, “We do not involve ourselves in bankable projects but are more interested in crucial areas that might not be very lucrative such as literacy, healthcare for dispossessed etc.”

EU keen to enhance trade with Pakistan -DAWN - Business; September 05, 2007

 

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Economy in the driving seat?​

HAVING given a boost to the national economy that has more than doubled the GDP over the past eight years, Pakistan’s policymakers are now keen to ensure that the current momentum of economic growth does not slow down because of political turmoil. Addressing a seminar last week, the prime minister’s advisor on finance, Dr Salman Shah, voiced this sentiment when he observed that economics should be in the driving seat instead of politics. While it is economics that has dominated President Pervez Musharraf’s national agenda, politics has emerged as the driving force since the judicial crisis erupted on the national scene in March this year. Subsequent political developments have undermined the concept of “economy first” as practised by military or quasi-military regimes in this country to depoliticise society.

Technocrats look at the world through what social scientists in the West describe as an “economic prism”. They believe that sustained and high economic growth can reduce poverty and usher in democracy. Until strong democratic institutions emerge, they pin their hopes on powerful individuals to provide stability and ensure economic progress. But which of the two — economics or politics — will be in the driving seat at different times is determined by the dynamics of the political economy. While technocrats can dominate politics for a while, this situation cannot continue indefinitely. Thus President Ayub’s “development decade” could not save the state structure he had instituted. Today, the economic ‘success’ of the last eight years — thanks to deregulation, privatisation and liberalisation — have not paved the way for a stable democracy. The economy is being driven by the market forces that have somewhat lowered the political risk. With no single leader dominating the political landscape, pluralism runs deep. This can lead to the maturing of constitutional democracy in which power is widely dispersed and shared. But can the economy flourish in such conditions?

Fortunately, there is consensus among the major political parties on economic reforms, though they may differ on the details. But this consensus needs the endorsement of the electorate. Economic policies that result in social exclusion and political polarisation are not sustainable. Without constitutional democracy, an independent judiciary and a sovereign parliament, there can be no stability without which economic development suffers. Political reforms have been late in coming and until the current constitutional-political crisis is resolved a congenial environment will not be created for putting the economy back in the driving seat.

 

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'Build Asia 2007' to improve country's economy' ​

KARACHI (September 05 2007): Italian and Turkish private firms are likely to invest over 100 million dollars in the field of granite and marble mining jointly with the country's leading local firms in a span of one year.

In an interview, Dr Khursheed Nazim, President, E-commerce Gateway Pakistan (Pvt) Ltd, told Business Recorder here on Tuesday that Italian and Turkish private firms had signed Memorandum of Understanding (MoU) with the City District Government of Karachi, local marble industry and with other construction sectors.

They also signed MoUs with the local furniture manufacturers, steel and its related products manufacturers during the Build Asia-2007 Exhibition. He said that 247 foreign delegates from 21 countries had participated in the exhibition besides numerous local private firms exhibited their products.

An Italian firm has signed MoU with a local marble industry to provide them latest equipment for granite and marble mining besides assisting them with their professionals to furnish raw marble blocks in line with the international standards, he said. Moreover, these agreements will also scale down the increasing graph of joblessness and poverty in the country and augment Gross Domestic Product (GDP) rate besides helping this sector to evolve sustainable development.

Syed Mustafa Kamal, City Nazim has taken interest in Turkish plastic pipe manufacturing industry and is likely to award a tender to the manufacturing firm for replacing the old sewerage and water supply pipelines with Turkish ones in the metropolis, he said. In addition, to marble and plastic in steel sector Itehad Steel has signed an agreement with EMAAR a Dubai based construction company to provide steel bars for its construction projects in Pakistan, he said.

Business Recorder [Pakistan's First Financial Daily]

 

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'Vision-2007 trade fair to help improve quality of local products': opening on September 6 ​

RAWALPINDI (September 06 2007): The two-day 'Vision-2007' international trade fair, which will open here on September 7 (Friday), will help in creating competition in the local market and improve the quality of products in international markets, said Dr Hasan Sarosh Akram, President of Rawalpindi Chamber of Commerce and Industry (RCCI), here on Wednesday.

While talking to reporters here in his office, he said: "This trade fair will not only enhance the economic stability of the country but will also introduce the local industrial products among the people of this country." He said that public and private sector engineering, automobile, cement, textiles and marble firms would take part in the fair.

All arrangements for the exhibition have been completed which is being held to enhance the trade relations with the Central Asian States, China and Afghanistan, the RCCI president said. He said that Science Foundation has agreed to arrange school children's visits to increase their knowledge about industries and production.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan needs to focus on achieving more inclusive growth: Pasha ​

LAHORE (September 06 2007): The Asia-Pacific region is well on track as a region to achieving the Millennium Development Goal of halving poverty by 2015, however, South Asia remains somewhat off-track and will have to perform better to achieve the target.

This was stated by Dr Hafiz A. Pasha, Assistant Secretary General United Nations while delivering a lecture on the theme of 'Inclusive Growth: The Asian Experience and Implications for Pakistan' organised by the Planning and Development Board as a part of P&D lecture series, here on Wednesday.

Dr Hafiz Pasha, who is also assistant administrator of UNDP, maintained that Pakistan also has the opportunity for bringing down poverty sharply, however, for achieving the Millennium Development Goal (MDG) of halving poverty by 2015, Pakistan will have to focus on achieving more inclusive growth. 'Countries like Bangladesh and Pakistan also have large pockets of poverty and prospects have improved in both the countries of achieving a faster breakthrough in reducing the incidence of poverty', he added.

He said the Asia-Pacific has been the fastest growing region in the world over the last few decades, and has at the forefront of the process of globalisation. In the recent years, the euphoria about Asian economic performance has been enhanced even further by the high growth rates achieved simultaneously by the two largest economies of the region, China and India.

India growth rate has crossed 9 percent while China continues at almost 10 percent. Both the countries also had the largest numbers of the poor and the critical question is how the high rates of economic growth have impacted on the incidence of poverty in these two countries, he said, adding, all countries of south Asia including Pakistan have also seen a significant upsurge in their growth rates by anywhere between half and one and ha1f percentage points. The manufacturing sector, in particular, in these countries is beginning to take off on the back of rapid growth in exports.

Talking about trends in inequality in Asia Pacific, Dr Pasha said there have been concerns about inequality in Pakistan. However, he said the recent ADB study has shown Pakistan not only has had a relatively low level of inequality but has also experienced a very small increase in inequality from 1990 to 2004. 'Rising inequality is demonstrated by the fact that in most countries the top 20 percent have experienced bigger increases than their counterparts in the bottom 20 percent', he pointed out.

He added that the countries where inequality has increased, regional disparities have also widened at the sub-national level. Another important source of rising inequality is the growing gap between rural and urban incomes. Quoting ADB, Dr Pasha said the growing urban-rural gap has contributed more to the overall level of inequality in China than disparities among household within urban or rural areas. In India also, estimates are that the gap is increasing and rural incomes are now only about half the level of urban incomes on a per capita basis, he added.

Citing neglect of agriculture and rural development, failure in employment generation, under investment in human development and consequences of globalisation and liberalisation as drivers of inequality and poverty, Dr Hafiz A. Pasha apprised the select audience about its impact on the growth.

About the Pakistan experience, he said growth in Pakistan has picked up appreciably in the last four years while levels of expenditure of the poorest segments have fallen slightly primarily because of low growth. He added that Pakistan has also a higher rate of economic growth probably being accompanied by rising inequality. The visible consumption boom, especially with the explosion in asset values in the stock market and the urban real estate market have fuelled these concerns about the growing concentration of wealth in the country, he added.

Dr Pasha said that taking lessons from the Asian experience, there is need that growth should take place in sectors in which the poor work. Therefore, an inclusive growth strategy has to focus on sectors, areas, factors of production and items of consumption, which can play a special role in alleviating poverty.

About the policy for resource mobilisation, he said one of the singular failures of many Asian governments has been the inability to use fiscal policy as a strong redistributive mechanism, especially in terms of developing a progressive taxation system. 'Provincial governments in Pakistan have, in fact, been endowed with taxes, which are inherently progressive in character. These include taxes on assets like land, buildings and motor vehicles, which are owned largely by the richer segments of the population.

Business Recorder [Pakistan's First Financial Daily]

 

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Industrial clusters: setting up of production centers recommended ​

LAHORE (September 06 2007): The speakers at a two-day workshop on "Clean Production and Pollution Prevention" have recommended setting up of production centers in the industrial clusters of leather, cutlery, surgical instrument and garment sectors.

Small and Medium Enterprise Development Authority (Smeda) has organised the workshop in collaboration with ministry of industries, production and special initiatives and the World Bank.

The concluding ceremony of the workshop held this evening, which was addressed by Shahab Khawaja, Federal Secretary, Industries, Production and Special Initiatives, Shahid Rashid, CEO, Smeda, Paul Martin, Senior Consultant, World Bank, Walter E Weaver, Ms Ana Oestreich, Ms Kalusm Ahmed and Hammad Naqi Khan of WWF-Pakistan.

The speakers recommended that the World Bank and Smeda should initiate a clean production awareness programme as a public-private partnership project. A series of workshops has also been suggested for capacity building of the human resources involved in clean production. Smeda and World Bank have also been requested to subsidise the consultation regarding clean production and pollution prevention for providing SMEs with methodologies of the clean production systems.

The speakers urged that government should share at least 50 percent cost of the environmental compliance certification to attract SMEs towards this emergent need of the hour. The speakers urged the government to provide incentives for promoting use of environment friendly technology and raw materials along with the technical assistance to encourage pollution prevention in the industry.

Shahid Rashid while speaking on the occasion, said the awareness move on clean production and pollution prevention would be continued with the same zeal and assured further measures in partnership with private, public sector to introduce the technology, raw materials and the modern methods for this purpose. He urged the private sector to play a positive role to help government of Pakistan comply with the regulations and procedures set for clean production and pollution prevention in the country.

Business Recorder [Pakistan's First Financial Daily]

 

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Pak cotton output may rise ​

Thursday, September 06, 2007

LAHORE: The World Cotton Advisory Committee has projected increase in cotton yields in India and Pakistan in 2007-08.

However, production in the rest of the world is expected to decline for the third consecutive season to 10.5 million tonnes. As a result, world cotton production is forecast to fall slightly to 25.4 million tonnes in 2007-08.

Mill-use of cotton in Asia is expected to continue to increase to a record 20.3 million tonnes, showing 75 per cent of world cotton use by mills. Most of the projected three per cent increase in global mill use will be once again driven by China (mainland).

World cotton trade is expected to rise by eight per cent to 8.9 million tonnes in 2007-08 due to larger Chinese imports forecast at 3.4 million tonnes.

Exports by the US, India and Brazil are projected to increase in the year under review. However, exports by Uzbekistan, the African Franc Zone and Australia are expected to decline.

Using the ICAC Price Model 2007, it forecast a season-average Cotlook A Index of 68 cents per pound in 2007-08, nine cents higher than in 2006-07. This projected price increase is the result of an expected significant decrease in stocks-to-mill use ratio in the world less China (mainland).

Pak cotton output may rise

 

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Should the economy be in the ‘driving seat’? ​

The prime minister’s adviser on finance, Dr Salman Shah, said at a seminar in Karachi that the national economy should be “in the driving seat” instead of politics. The subject has been editorialised upon subsequently and the conclusion drawn is that unless the political landscape in the country is made suitable for economic development, economic growth cannot be sustained. Reference was made to “representation” in the democratic process in order to make the people feel that they own the economy and don’t regard it as an enemy.

Some reporting took stock of the business community’s reaction to the upsurge in favour of democratic rule earlier this year, especially in the wake of the judicial crisis caused by a faulty reference against the Chief Justice of Pakistan. It was noted that “the pampered, risk-averse private entrepreneurs of Pakistan do not share the people’s enthusiasm for democracy”. It was also discovered that “businesses, irrespective of size, are either hostile or indifferent to democracy”.

Dr Salman Shah, in an earlier statement, had been more direct in his argument in favour of the primacy of the economic function. He claimed that the national economy functioned better under dictatorship. He pointed to Singapore, Malaysia, China, Taiwan and the UAE, “which flourished economically during a period when they were ruled by a group of men or by one person”. He thus set up an unintentional comparison that doesn’t suit the current mood in Pakistan and could actually be incongruous on many counts.

But it is unfair to say that the business community of Pakistan is “hostile” or “indifferent” to democracy. By their very nature, the “productive” sector of the economy is focused on the creation of products and their export. All ancillary sectors also adhere to the view that their function should remain unthreatened by political events in the country. However, there are some service sectors such as the professional classes — doctors and lawyers, etc — who are unaffected by the risk-prone economic function of investment and production.

Democracy is the domain of politics and politics is not only a “representation” of the people, but also the domain where politicians vie with one another for power. In underdeveloped societies, politicians are less sensitive to the functioning of the economy. In some cases their approach to the question of power compels them to put politics above the economy. They believe that an economic roadmap which consolidates their dominance is better suited for growth. Sometimes they bring in changes that may not be growth-friendly and may in fact be damaging to many businesses in the private sector.

In Pakistan, the business sector did react politically to the policies of state sector dominance involving nationalisation in the 1970s. This was a “reactive” behaviour and it dominated the politics of the country for many years. Unfortunately, it looked as if the business community was not in favour of democracy; but the truth was that it simply wanted to secure stable conditions for its functioning. In the 1990s, however, an across-the-board political consensus on denationalisation and private sector primacy took the business community back to its normal conduct.

No economy likes “transformational” political programmes. Ideological politics is the stuff of high ideals and inflexible principles; but the economy is based on opportunism and linkages with an increasingly globalised world. Honour-based societies vote for political parties promising “honour” through a defiant foreign policy. But the business community wants a non-isolationist foreign policy completely based on material opportunism. This is where the conflict between business and politics emerges. Because it is in a minority the business community keeps quiet while secretly favouring a non-isolationist government facilitating their functioning.

The current “cautionary” attitude of the business community has been moulded by the bad and inconsistent economic policies adopted by the democratically elected political parties in opposition to each other. The ambience of uncertainty created by the tendency of changing the economic goalposts is certainly hostile to the economy. No matter who rules Pakistan the business community would like him to help create a predictable environment for investment and production. That is why it is unfortunate that Pakistani politicians, despite the over-all consensus on the primacy of the private sector, have been myopic in this regard.

Today, the business community is on tenterhooks. It doesn’t look as heroically “decisive” as the lawyers agitating for democracy in the street and getting roughed up by the police. Sensing that the state is plagued by problems of law and order and terrorism, they privately judge the politicians on the scale of their ability to counter these two problems. But such is the nature of politics that the politician finds it strategically more important to downplay terrorism and violence by linking it to the Musharraf government. But the businessman can also see with some trepidation that the old PML-PPP polarity is on its way back.

In the developed world the politician gives priority to the economy. It is only after this priority is granted that the business community becomes directly involved in the politics of democratic governance. But the paradox in Pakistan is that the politicians have not been able to place themselves in subservience to the national goal of economic growth. On the other hand, it is the military dictator — there is lot of grey area here — who shows signs of getting worried over the economy and begins to pay attention to the demands of the business community.

The reluctant Saudi ‘reprimand

The Saudi government, while consulting its legal experts, must have wrung its hands over how to handle the return of Mr Nawaz Sharif and his family to Pakistan. It has issued a “moral” reminder to him that his return is improper. Is any punitive measure implied? No, only that if he came to Saudi Arabia some indeterminate action could be taken.

So what if Mr Sharif had at times said that he had made no commitment about not returning? Equally, as Saudi Arabia is careful about going against the Supreme Court of Pakistan, Mr Sharif is emboldened by it. Has he ruined his relations with the Saudi authorities? No. In the long run, nothing that can’t be set right with intensive diplomacy. Will he still stick to his plan to return to Pakistan on the 10th of September? Has the Musharraf government suffered another reversal by misunderstanding the nature of the papers signed by the Sharifs before their exile? We shall know the answers very soon. *

Daily Times - Leading News Resource of Pakistan

 

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Pakistan and Tunisia sign four bilateral agreements ​

06 September 2007
ISLAMABAD -- Pakistan and Tunisia here yesterday signed four bilateral agreements aimed at increasing volume of bilateral trade to $300 million from $25 million during next four years.

The agreements were signed in the areas of enhancing cooperation in industrial, science and technology fields besides cooperating in cultural as well as tourism sectors. The agreements were signed at the conclusion of two-day Joint Ministerial Commission (JMC) session.

Federal Minister for Textile Mushtaq Ali Cheema, and Nauraiz Shakoor, Federal Minister for Science and Technology signed the agreements on behalf of Pakistan while Afif Chelbi, Minister for Industry, Energy, Small and Medium Size Enterprises, Tunisia signed the agreement on behalf of his government.

The two sides also approved the minutes of the 6th session of Pak-Tunisia JMC. According to the minutes of the meeting, it was decided that constitution of Joint Business Council, in furtherance of MoU signed between FPCCI and UTICA in 2002, would be completed within a period of one month.

Both the countries agreed to exchange list of tradable goods within 90 days.

Constitution of a Joint Working Group (JWG) on Industrial Cooperation was also agreed. The JWG to be notified by December 31, 2007, would provide impetus to cooperation in establishment of joint ventures in the field of industry including SMEs. Constitution of a study group was also proposed to specifically examine and address all issues relating to textile, apparel industry and trade.

Pakistan and Tunisia sign four bilateral agreements - Middle East News

 

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Pakistan, Sri Lanka pledges raising trade to $one billion
COLOMBO, Sept 6 (APP): Traders in both Pakistan and Sri Lanka are looking forward to adopt aggressive approach in achieving the potentional bilateral trade capacity that is over $one billion. While assessments and thorough research show that the existing Pakistan-Sri Lanka bilateral trade capacity is highly encouraging, present trading bring about $250 million only 25 percent of the capacity, said Muhemmed Aejaz, Commercial Counselor of the High Commission for Pakistan in Colombo.

He was addressing the gathering at the opening ceremony of a mini-exhibition of Pakistani products, held here at local hotel.

The exhibition coincides with the visit of a 15 member Pakistani trade delegation, to Sri Lanka, who is currently in Colombo. In the past one year trade between the two countries included some ‘extraordinary activities,’ said the Commercial Counselor. Since January 2007, two trade delegations from Sri Lanka have visited Pakistan. 63 Sri Lankan businessmen had attended ‘Expo Pakistan 2007’ in March and 30 companies had exhibited Sri Lankan products at the ‘My Karachi’ held in June.

The visit is important since it is the first major return visit by the Pakistani business community, he said.

The exhibition was organized to introduce the products of the delegation to interested counterparts in the Sri Lankan market. The delegation represents 15 novel fields of trade, breaking traditional approach of trading a limited number of commodities such as rice, potato and textiles from Pakistan and tea, rubber and beetle leaves from Sri Lanka.

The delegation is lead by Arshad Alam former vice president of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) representing the leather industry in Pakistan.”The market has high potential.

It is time that we convert the good political relations between the two countries to good economic relations,” Alam told APP special correspondent Vimukthi Femando.

Increased per-capita income, expanding middle class population, increasing consumption and consumer base in Sri Lanka are some favourable conditions in the Lankan market which appeal to the businessmen in Pakistan, he said. Previously, trade had been between the two port cities, Karachi and Colombo.

However, the present delegation, representing diversified products as well

as diversified locations in Pakistan, could be considered a “milestone, the first

step in a million mile journey,” he noted. Alam expects that with the

introductions by the delegation, trade between the two countries will meet up the

one billion USD target within five years.

Shakeel Azam representing Pak Cutlery Consortium from Wazirabad said, he was happy with the response he received in Sri Lanka. “I have already received nine major inquiries and have decided to tie up with a major chain store in Sri Lanka,” he said.

Shahid Ahmed, from Karachi’s FD&C Equipment (Pvt) Ltd, presenting machinery used in pharmaceutical industry was hopeful about the potential market in the country. “Sri Lanka at present imports most of the pharmaceuticals to meet the country’s need. So, why not take the opportunity to manufacture own drugs/medication. It can also become a major manufacturing country,” he said.

The delegation that includes prominent Pakistani traders had discussions with Manel De Silva, Director General of Commerce and a team of officials from the Department of Commerce on Monday. They are also scheduled to meet with the members of the Ceylon Chamber of Commerce, National Chamber of Commerce, National Chamber of Industries and Chamber of Exporters.

It is also scheduled to visit Kandy, capital city of the central province situated 112 kilometers Northeast of Colombo on Thursday to hold discussions with the Central Province Chamber of Commerce and provincial trading associations.

Since the ‘Sri Lanka Pakistan Free Trade Agreement’ in June 2005, interest has grown in bilateral trade and business cooperation. The business community had started exploring trading of new commodities, ‘non-traditional’ items of trade as well as trading over 100 tax free items, which enables them earn higher profits

Associated Press of Pakistan - Pakistan, Sri Lanka pledges raising trade to $one billion 

 

[Moin91]

Pakistan’s forex reserves exceed $16 billion​

KARACHI: Foreign exchange reserves of Pakistan have exceeded from $16 billion during the week ended on September 1. During this period, an increase was seen in the reserves of the central bank whereas decrease was seen in the reserves of the commercial banks.

According to the chief spokesman of the State Bank of Pakistan, Syed Waseemuddin, reserves of foreign exchange, after an increase of $260 million during the week ending September 1, reached $16.0789 billion which is the highest level in the history of the country.

During the same period, reserves available with the central bank after an increase of $289.9 billion reached $13.804 billion whereas reserves with commercial banks after a fall of $29.2 million came down at the level of $2.2749 billion.

 

[Moin91]

Infrastructure main obstacle to attracting FDI: OICCI survey​

Friday, September 07, 2007

KARACHI: Pakistan’s role in the global war against terror has heightened domestic security risks.

In a presentation on Thursday, the Overseas Investors Chamber of Commerce and Industry (OICCI) highlighted that 69 per cent of its members found the internal political situation to be poor while 71 per cent of them were concerned about the law and order situation.

“A growing domestic economy and consistent and business-friendly policies have contributed to an overall favourable outlook for Pakistan as an investment destination. However, infrastructure is the key constraint in attracting FDI,” said Zubyr Soomro, the OICCI President.

Announcing the results of the first-ever OICCI’s annual survey on the perception of its members doing business in Pakistan, he said with FDI of over $5 billion last year, Pakistan’s economy had achieved critical mass yet to sustain and increase this level of investment required continuity of the economic reforms process and current government policies.

Nevertheless, 75 per cent of those questioned said the business climate was attractive and had a positive outlook towards their trading partners. Most OICCI members are satisfied with the performance of the Ministry of Commerce, Ministry of Finance and Ministry of Industry and Production; however, the Ministry of Interior needs improvement according to 41 per cent of them.

Among the autonomous bodies the State Bank of Pakistan and the Federal Board of Revenue received the highest percentage of praise from the foreign members.

A major concern is the state of infrastructure facilities available in the country with 89 per cent being highly dissatisfied with the availability electricity and 51 per cent being dissatisfied with water availability in Pakistan. Telecommunications ranked as the most promising sector with over 70 per cent considering it satisfactory.

The foreign business community considers the law and order situation, infrastructure and political uncertainty to be the most significant deterrents to business as these factors received very high ratings of 6.5, 5.3 and 5.7, respectively, out of eight points.

OICCI has 168 members representing all major sectors of the economy. The annual survey conducted by KPMG shows that the OICCI members contribute more than 14 per cent of GNP of Pakistan and nearly 32 per cent of GDP of the manufacturing sector. Between them they contribute 33 per cent of the total tax revenue of the government of Pakistan and directly employ around 100,000 people.

Infrastructure main obstacle to attracting FDI: OICCI survey

 

[Moin91]

EDB consultative meeting today

Friday, September 07, 2007
By Israr Khan

ISLAMABAD: Frequently-interrupted power supply, short-range tariff policies and lack of university-based research are major bottlenecks in the country’s industrial growth, especially the chemical industry which remains consistently neglected.

Sensing the importance of the chemical sector, the government has now decided to formulate and finalise a long-term ‘Chemical Vision 2020’ along with an action plan by mid-January 2008, which aims to boost the sector and its exports.

The Engineering Development Board (EDB) in this effect has initiated a process of consultations with industrialists and other stakeholders to overcome hurdles in the development of this sector.

It is worth mentioning that on 28 August, 2007, the EDB held a meeting in Lahore, which highlighted various issues regarding the sector, which needed special government attention.

Now, it has been decided to hold another meeting in Karachi on Friday (today) with the stakeholders.

Industrialists believe that the chemical industry has the potential to raise economic growth, if these major stumbling blocks highlighted were resolved with the assistance of the government.

It would reduce cost of production and make the sector more competitive.

Industrialists complain that the government is always focussing on the textile sector while neglecting the chemical industry, an official told The News on Thursday.

Frequent power outages were another impediment in industrial growth, which also increased the cost of production, he added. Industrialists working in fertiliser sector say that in Pakistan, gas supply in winter season perennially remains cut off which results in low production and higher cost.

There is also a weak linkage between university based research and the industrial sector. To make a strong and worthwhile interaction, industrialists have offered technical and financial assistance to universities carrying out valuable research, which could cater to the requirements of the chemical sector.

Industrialists suggest that there should be tariff protection and it should be long term not of short term because; frequently changes in tariff shake investorsí confidence and their plans of investment.

EDB consultative meeting today