Pakistan Economy - News & Updates - Archive

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'Abu Dhabi Group helps strengthen economy' ​

RAWALPINDI (September 13 2007): The Abu Dhabi Group has invested billions of rupees in telecommunication, financial services and banking, and has played vital role in national economic growth, said Mian M.A. Shahid, president, United Insurance Company (UIC) here on Wednesday.

"The group owns mainstream organisations in these sectors, including Wateen Telecommunication, Warid Telecom, and Bank Alfalah", said Shahid, while talking to, Abu Dhabi Group CEO Tahir Bashir during a meeting.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan to export 10 million tons cement to India in 2008 ​

ISLAMABAD (September 13 2007): Seventeen companies of Pakistan would export 10 million tons of cement to India in 2008. According to Indian state trading company MMTC, it is expected that the production by the cement companies in Pakistan will grow by 50 percent to synchronise with the 50 percent increase in coal imports into the country, privet TV reported.

The local consumption of cement in Pakistan ranges from 22 to 24 million tons annually. However, the total production of cement in Pakistan is expected to surge to 35 million tons thanks to the bulging volume of exports. According to MMTC, the cement prices in India rose by 45 percent since December 2005.

Business Recorder [Pakistan's First Financial Daily]

 

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$54.52 million loss likely in kinnow exports ​

KARACHI (September 13 2007): The country's kinnow exports are likely to face a loss of around $54.52 million due to almost a lost Indonesian market with Russian ban on Pakistani agricultural imports still intact, exporters said. Pakistan had exported around 2,000 containers, or 52,000 tons kinnows to Indonesia in 2003.

Which last year dipped to a meagre 250 to 300 containers, or 7800 tons worth $4.68 million marking a decrease of around $26.52 million, a leading exporter told Business Recorder on Wednesday. "Despite losing such a big kinnow market--Indonesia--which cost millions of dollars to the national exchequer, nobody even took notice of it", he lamented.

He expressed fear that similar situation was likely to take place in the Russian case, which has put an embargo on agricultural imports from Pakistan as an insect, known as 'khapra beetle', was found in rice consignments during inspection at Russian ports. "If the government of Pakistan does not go for reforms in the horticulture sector from grass-roots level we will soon face an unaffordable setback in fruit exports", he warned.

Pakistan used to earn around $28 million annually by exporting around 1400 containers, or 36,400 tons kinnows to Russia, which he feared would be lost if the Russian ban persisted. "The country would have to face a loss of around 28 million dollars if grass-roots level measures are not taken by Islamabad to allay their (Russians) concerns", he said.

Of reforms needed to make improvement in the horticulture sector he said: "Good agricultural practices (GAP) should be introduced at growers' level. Instead of spending billions of rupees on holding exhibitions and sending trade delegations abroad the government should regulate the use of urea, pesticides, and irrigation water. It should also ensure implementation of sanitary and phytosanitary (SPS) rules in the country". Appealing to President Pervez Musharraf for taking personal interest in the matter he urged the government to raise the standard of agriculture produces to the level of quarantines set by the importing countries as per Geneva Convention.

The exporter said that Pakistan should make reforms as per demands of the 'sensitive markets', namely Europe, Eastern Europe and Russia, who stress implementation of GAP. "To make our exports sustainable and to avoid situations like Russian ban we need to regulate the use of pesticides and residual level on the growers level as the exporters have already made remarkable progress in it", he suggested.

Another area of improvement, he said, was use of 'cool treatment', which is an affective tool to disinfect the fruit-flies, which can not survive in temperature below 3 degree centigrade.

He claimed that the benefits of 'Cool Chain Policy, 2003' could not trickle down to all exporters, as only 7-8 parties have the cool storage facilities with more than 100 others still without them. "Every year, a great part of the country's fruits goes in wastage due to the non-availability of cool storages for majority of the exporters", he said.

He said that only 7 or 8 Pakistani factories are recognised in the international markets like China, Iran, Philippines etc for kinnow exports, while the rest have no proper equipment to standardise their products as per demand of the importers.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan accepts US terms on BIT​

ISLAMABAD, Sept 12: Pakistan has accepted all those conditionalities of the US on Bilateral Investment Treaty (BIT) that it had been resisting for over a year for being against its national interests, Dawn has learnt.

The all of a sudden acceptance came from Islamabad following mounting pressure from Washington asking for finalisation of the much-awaited treaty. This softness in position would now likely lead to early signing of the BIT.

Informed sources told Dawn on Wednesday that a final meeting will be held with the attorney general of Pakistan shortly for a legal input.

Already the relevant ministries held the first meeting on the clauses with the Attorney General.

The two sides held several rounds of meetings since 2004 for reaching a conclusion to ink the agreement, which was termed a first step for initiation of talks on FTA between the two countries.

Sources said Pakistan has no other option but to accept the US demands under the treaty. The issue will be discussed during the second round of Pakistan-US strategic negotiations.

The two sides seemed nowhere closer on the five clauses of the agreement — scope and coverage, transparency, claims on behalf of an enterprise, investment agreements and arbitration rules.

The sources said under the five clauses, the US side had agreed only on two clauses with the proposals of Pakistan.

The US has been showing flexibility on claims on behalf of enterprise. Pakistan needs to draft specific language to take care of its concerns, like beneficiary ownership etc.

The sources said that the US side has noted concerns of Pakistan and required to provide language, but it has not been received as yet.

The second clause, where some flexibility has been shown by US was the issue of arbitration procedures in addition to international centre for settlement of investment dispute (ICSID).

Pakistan has also communicated its position on additional procedural rules and coverage of dual nationality under the United Nations Commission on International Trade Law (UNCITRAL) for the response of US side but no response received from the US side.The sources said that the US side had not shown any flexibility in three clauses of the proposed treaty. On transparency issue, Pakistan explained its position for issuance of ordinance without its advance publication. The SROs can be placed on website a week prior to their enforcement where such notifications, in the subjective opinion of Pakistan, will not have any adverse effects or implications for Pakistan.

Another controversial clause related to investment agreement. Pakistan proposed that it could not be made responsible for an act committed under investment agreement.

Contract as per agreement has its own mechanism to settle dispute which arose as the forum provided in the contract.

Pakistan accepts US terms on BIT -DAWN - Business; September 13, 2007

 

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Help for engineering sector assured​

ISLAMABAD, Sept 12: The Ambassador of the Netherlands to Pakistan, Willen Andreae, has urged Pakistani manufacturers to improve competitiveness of their products for increasing exports to European countries.

The envoy was talking to representatives of Pakistan Foundry Association (PFA) here on Wednesday.

Mr Andreae referred to the Free Dutch scheme under which retired and experienced persons are sent to other countries. Many Pakistani business organisations have utilised these services, but there was an ample room for expansion.

The envoy assured full support of the European countries for development of engineering sector, especially foundry in Pakistan.

Pakistan PFA chairman said that European companies were shifting their production units to other countries due to high cost of production and environmental problems. He said Pakistan was interested to get her share in this shifting.

Meanwhile, the delegation also met the Chief Executive of Engineering Development Board.

Help for engineering sector assured -DAWN - Business; September 13, 2007

 

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Mobile phone market to grow​

KARACHI, Sept 12: Pakistan, the third largest growing mobile phone market in the world, is poised to grow manifold by the year 2010.

This was stated by Saleem Mobhani, CEO, Hungama Mobile, India. He is also CEO of FM India and currently on a visit to Pakistan on an invitation from Converge Technologies (Pvt.) Ltd., their strategic partners in Pakistan.

Addressing a press conference along with Qazi Fakhir Jamil, CEO, Converge Technologies (Pvt.) Ltd. and Imran Ahmed- Emu of Fuzon (prominent musical group), he said collaboration between Pakistani and Indian company was to form a common platform to provide security to artistes of both the countries to get theirs due share of profit out of what they had produced in the music and other form of entertainment.

Qazi Fakhir Jamil, CEO, Converge Technologies (Pvt.) Ltd, expressed his common resolve with the Indian company to uproot piracy in the country by providing quality content to the people at an affordable price.

Mobile phone market to grow -DAWN - Business; September 13, 2007

 

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Pakistan, US enhance cooperation: Teams formed to finalise trade, economic issues​

ISLAMABAD: Pakistan and United States (US) on Wednesday constituted sub-groups of high officials from both the countries to pave the way for early finalisation of issues regarding trade and economic cooperation, a government official told Daily Times on Wednesday.

The strategic dialogues between the government of Pakistan and US were held here on Wednesday at the foreign office between the US Deputy Secretary of State John Negroponte and local officials.

The official informed that during the meeting sub-groups have been constituted to discuss matters with the concerned ministries. The US delegation discussed in detail issues relating to different ministries including money laundering, intellectual property rights, bilateral investment treaties, Reconstruction Opportunity Zones in FATA and data exclusivity on pharma products.

The meeting also finalised the arrangement for the Economic Forum meeting to be held in October 2007 at Washington DC. The roadmap has been developed to resolve the bilateral issues, which will be expanded after the Economic Forum.

The official informed that the US government has placed Pakistan in its priority watch list due to IPR violations in Pakistan. It was decided by the US authorities that mid-term review would be held in Pakistan during September to review the updated situations to rate the country’s standing in the countries protecting Intellectual Property Right (IPR).

The current visit of the US authorities would help them reach a conclusion that whether Pakistan should remain in priority watch list or anywhere else.

Explaining the pending issues relating to the Bilateral Investment Treaty (BIT), the official informed that the US is urging Pakistan to accept a harsh provision in BIT that all economic decisions are vetted at Washington well before formal issuance of the notification by Pakistan’s concerned ministry.

This has been demanded as a metre of transparency to be ensured in BIT implementation period, which is still being negotiated between the two countries. Pakistan has not accepted this harsh provision due to its negative effects on Pakistan and its decision making process in bilateral issues. The US wants arbitration under proposed Pak-US BIT at US under Pakistani law.

The BIT negotiations between Pakistan and US have shown no positive results and more rounds of consultations at top levels between the two countries would be held to narrow the differences, said an official.

Daily Times - Leading News Resource of Pakistan

 

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Pakistan A Major Source Of Trained Manpower Export ​

ISLAMABAD, Sept 13 (Bernama) -- Pakistan will become a major source of export of trained manpower to global market by exploiting potential of country's budding youth, said President General Pervez Musharraf.

He said youths below 19 years age form about 55 to 60 percent of country's 160 million people.

"This burgeoning young population is a challenge and opportunity as well," PPI reported Wednesday quoting Musharraf as saying here.

He said government's main policy thrust is aimed at job creation and poverty alleviation through harnessing potential of its human resource, skilled young workforce is declining in industrialized states which projects Pakistan as a foremost source of skilled workers with far lesser wages as compared to advanced countries.

The President said it would be a challenge for the government to provide skill training to about 90 million youngsters who would be looking for jobs in local market in next few years.

This challenge has to be met through concerted policy of providing technical education and vocational training in sync with demands of industry.

General Musharraf said focus to hire skilled labour is now shifting towards East which offer services on much less wages as compared to Western industrialized states and Pakistan stands to benefit from this opportunity.

Pakistan A Major Source Of Trained Manpower Export :: Bernama.com

 

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'Over 10,000 Pakistanis visit Hong Kong annually' ​

ISLAMABAD (September 14 2007): Hong Kong has very liberal visa policy for genuine visitors, especially for the business community and over 10,000 people visit Hong Kong annually from Pakistan taking advantage of this policy.

This was stated by Assistant Director Enforcement and Litigation, Immigration Department of the Hong Kong Special Administrative Region, Eric K.K Chan while talking to newsmen here at Chinese embassy on Thursday.

Giving details of liberal visa policy for all genuine visitors including business community, he said, Chinese embassy in Islamabad was fully co-operating to grant Hong Kong visa without any delay.

He said visa of Hong Kong, which was initiated in 2003 for Pakistani nationals was processed without any delay however 14 days were required to complete the process. Regarding introduction of the visa policy for Pakistanis, Eric K.K Chan said the decision had to be taken in 2003 after increase in number of "asylum seekers" from Pakistan.

He explained that there were two kinds of asylum seekers coming to Hong Kong, one related to political cases and the others related to torture. These two categories were under 1951 UN Convention on Refugees and UN Convention against torture, he added.

Eric Chan said Hong Kong was not signatory to UN Convention on Refugees while it was signatory to UN Convention against torture, therefore, it had to take up the cases in these both categories.

He said there were 2,500 cases under refugees convention and 1,500 under Torture Convention under process and 700 and 300 respectively are Pakistanis and their number is increasing every month.

Eric said the Hong Kong government had to spend a huge amount to fight the cases of these asylum seekers, on legal fee and providing shelter and other facilities to the applicants, although not a single case under Torture Convention had been justified so far.

He explained that visa policy had been introduced only to check such abuses and assured that if these abuses would be controlled, Hong Kong could again offer Pakistan a visa free travel because both the countries had very warm, cordial and friendly relations.

Over 15,000 Pakistani expatriates were also living in Hong Kong and contributing positively to the economic conditions and they were living there as a law abiding citizens of Hong Kong, he added. Replying to a question, he said, most of the asylum seekers were from Pakistan, other Asian and Africa countries.

He said during his recent visit to six countries including Pakistan, Bangladesh, India, Nepal, Sri Lanka and Vietnam, he had been explaining the same problem of asylum seekers.

Many Pakistanis coming from main land China as they first visit China on visa and then slipped to Hong Kong through different means for getting asylum, he added. He said in 2006 illegal entry from China was 213 while in 2007 so far 363 persons have reached to Hong Kong for asylum and the number is increasing every day.

Business Recorder [Pakistan's First Financial Daily]

 

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Cotton output target to be achieved: Bosan ​

Friday, September 14, 2007

KARACHI: Federal Minister for Food Agriculture & Livestock Sikander Hayat Bosan has said the country will achieve the cotton production target of 14 million bales despite mealy bug and cotton leaf curl virus (CLCV) attack.

He was talking to media persons after chairing a meeting of the Pakistan Central Cotton Committee (PCCC) here on Thursday.

“Though 0.1 million acres area of cotton crop has been affected by mealy bug and CLCV, blooming hopes and strong anticipation are still there that the country will achieve the production target,” the minister said. However, he noted that the current month was very important because chances of pest attacks on cotton crop were there till the end of September.

Mealy bug attack on cotton crop in Pakistan had been taking place in recent years, so there was no pesticide which could effectively eradicate this deadly pest, Bosan said and added scientist were working hard to develop effective pesticides to control mealy bug, whereas foreign experts were also being hired to evolve an efficient mechanism to eliminate this menace. Similarly, no preventive method could be developed so far in order to treat CLCV, however, scientist were developing disease resistant seed varieties in order to curb these threats.

Earlier, addressing PCCC members he said that cotton was the main stay of national economy, so the government was putting special focus on research & development for betterment of cotton quality and its production.

In order to enhance production agriculture credit had been increased manifold, whereas Rs470 per bag subsidy was being provided on phosphate and potash fertilisers to encourage balance use of fertilizers. However, he said that per hectare yield in the country was still much lower than other major cotton growing countries such as Australia, China, Greece, Turkey and Syria. “Our national average yield is almost stagnant due to vagaries of nature, absence of virus resistance varieties, and limited scientific cultivation methods.

He advised PCCC to collaborate with the federal and provincial agriculture departments in order to establish develop high yield seed varieties in the country.

He said that government was in favour of introducing BT cotton cultivation in the country, but through formal means and in this regard MINFAL had finalised a strategy to regulate genetically modified (GM) plant varieties, including BT cotton. He said the Ministry of Environment had notified bio safety rules and guidelines 2005, and all GM plant varieties were to be required to get environment clearance. He said that the BT cotton varieties developed by National Institute of Biology& Genetic Engineering and Centre of Excellence for Molecular Biology (CEMB) would be released soon after fulfilment of necessary obligations, whereas multinational companies were also been approached to bring the technology to Pakistan.

He highlighted that Organic cotton production was another important area where the country needed to progress, particularly in Balochistan.

Cotton output target to be achieved: Bosan

 

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ABC concerned about law, order in Pakistan ​

Survey reveals 92pc ABC members positive about business climate, 76pc consider law, order poor

Friday, September 14, 2007
By Muhammad Farhan Zaheer

KARACHI: The American Business Council (ABC) has described law and order as well as external and internal political conditions in Pakistan as negative for foreign investment in its annual survey on members’ perception of economic and investment climate of the country.

“Economic fundamentals in Pakistan are very attractive as this country offers 100 per cent equity, and very few countries offer this opportunity,” said Iqbal Bengali, the ABC president, here on Thursday.

“We cannot expect a 100 per cent business-friendly atmosphere, so one should look at opportunities as well as the downsides such as economic conditions and taxes in Pakistan,” he added.

ABC released the results of its annual survey on members’ perception of business, economic and investment climate in the country as well as the performance assessment of relevant government ministries and departments, including the provincial and city governments.

Ninety-two per cent of the ABC members are positive about the overall business climate in the country, and 76 per cent of the members considered law and order to be poor, said Bengali.

“This year’s survey results revealed a positive outlook on the overall business and economic climate, and 75 per cent pf the members said they were planning to invest over the next 12 months,” he said.

Overall members were satisfied with the performance of the Sindh and Punjab governments and the city governments of Karachi and Lahore. However, the Punjab provincial and Lahore city governments have received better ratings than the Sindh provincial and Karachi city governments.

The survey results provide the ABC members with current assessment and are based on responses from 85 per cent of its members. Members gave high ratings to SBP, CBR, SECP, income tax and customs departments. They have very favourably rated the ministries of industries and production and commerce. The Ministry of Labour and Manpower received a satisfactory rating. However, the Intellectual Property Organisation of Pakistan got an unfavourable rating. In addition, 38 per cent of the respondents expressed concern about the international perception of the country.

“ABC has been releasing its annual reports on the economy of Pakistan for the past 15 to 16 years. The Overseas Investors Chamber of Commerce and Industry (OICCI) issued its economic report the first-time ever this year. There could be some similarities in our results as our members are also present in OICCI,” said Bengali.

ABC is the ambassador which tries its best to bring investment in Pakistan and United States investment is the highest in Pakistan, he said.

ABC members contribute a sizeable amount to the national exchequer every year in direct and indirect taxes with last year’s contribution exceeding Rs43 billion. Memeber companies provide direct and indirect employment opportunities to nearly a million people.

ABC is affiliated with the Federation of Pakistan Chambers and Commerce and Industry and is a member also of the US Chamber of Commerce (USCC), Washington DC, and the Asia Pacific Council of the American Chambers of Commerce.

ABC has also close working relationship with the USñPakistan Business Council, Washington, which is a component of the USCC. ABC members have cumulative revenues of about $3.3 billion and an investment of over one billion US dollars in Pakistan.

ABC concerned about law, order in Pakistan

 

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Gems, jewellery exports may rise to $500m ​

Friday, September 14, 2007

KARACHI: Pakistan Gems and Jewellery Development Company (PGJDC) Chief Executive Officer Fawad H Khan has said the company’s target is to increase the exports of gems and jewellery to $500 million by 2011 and up to $1.5 billion by 2017.

In a statement, the CEO said Pakistan’s current gems and jewellery exports stood at $40 million, which could be increased through concerted efforts for skill development, technology upgradation, marketing and branding.

The PGJDC will participate in the 40th Bangkok Gems and Jewellery Fair 2007 to be held in Thailand from September 18 to 22.

The PGJDC will have a pavilion called ‘Gems & Jewellery Pakistan’ which will have 18 stalls. The exhibitors, including two women entrepreneurs, have been given the stalls on subsidised rates by the company.

Pakistan participated in this fair in 2005 and 2006, attracting a large number of people from across the world and managed to get orders worth US$6 million and $12 million respectively.

Gems, jewellery exports may rise to $500m

 

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CNG sector attracts Rs70bn investment​

ISLAMABAD, Sept 13: Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon said on Thursday that the CNG sector attracted over Rs70 billion investments during the last few years owing to liberal and encouraging policies of the government.

Chairing the sixth meeting of the board of governors of Hydrocarbon Development Institute of Pakistan (HDIP) the minister said the government would encourage private sector to set up CNG equipment manufacturing plant in the country.

As a result of introducing investor friendly policies and deregulation of the petroleum sector the oil and gas exploration in the onshore and offshore areas attracted an unprecedented direct and indirect investment in the country.

The minister said that Rekodiq Copper project being undertaken by the Chilean Antofagasta company with an investment of $6 billion in Chagai district of Balochistan province would place Pakistan on the world copper map shortly.

He said that the country was endowed with enormous energy potential and underlined the need to promote the research and development activities on modern line to tap the explored oil, gas and mineral deposits to meet the growing energy needs of the country.

He said that HDIP would introduce latest technologies to boost the oil, gas and mineral exploration activities in the country. He said that the government would provide better incentives package to the professionals engaged in the hydrocarbon research and development activities aimed to raise their living standard in a competitive environment.

CNG sector attracts Rs70bn investment -DAWN - Business; September 14, 2007

 

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Pakistan on world copper map shortly​

ISLAMABAD: Rekodiq Copper Project, being undertaken by the Chilean Antofagasta Company with investment of $6 billion in Chaghi District, would place Pakistan on the world copper map shortly.

This was informed in the 6th meeting of Board of Governors of the Hydrocarbon Development Institute of Pakistan (HDIP), presided by the Federal Minister for Petroleum and Natural Resources Mr Amanullah Khan Jadoon here on Thursday.

The minister said that the CNG sector has attracted over Rs 70 billion in investment during the last few years as a result of liberal and encouraging policies of the government. He said that Pakistan now stands as the second largest CNG users country in the world.

He said that the government would encourage the private sector to set-up CNG equipment manufacturing plants in the country in order to save heavy foreign exchange on the import of CNG equipment. The minister said that as a result of introducing investor friendly policies and deregulation of the petroleum sector, the oil and gas exploration in the onshore and offshore areas has attracted unprecedented direct and indirect investment in the country.

He said that the country is endowed with enormous energy potential and underlined the need to promote the research and development activities on modern line to tap the unexplored oil, gas and mineral deposits to meet the growing energy needs of the country. He said that HDIP, which is the prime research and development organisation in the petroleum sector, should introduce latest technologies to boost oil, gas and mineral exploration activities in the country.

Mr Jadoon said that government would provide better incentives to the professionals engaged in the hydrocarbon research and development activities that are aimed to raise their living standards in a competitive environment. staff report

Daily Times - Leading News Resource of Pakistan

 

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Good to see a lot of Pakistani companies exporting cement to India. Overall, the economy looks strong and hopefully will maintain it's 6%+ growth in the coming years.