Pakistan Economy - News & Updates - Archive

[Neo]

99pc mango export targetachieved​

ISLAMABAD, Sept 24: Pakistan exported 118,000 tons of mangoes till Aug 25 as against a target of 120,000 tons.

The country achieved almost 99 per cent of the total target set for the current fiscal year, and mainly exported the commodity to the UAE, Saudi Arabia and other Gulf and Far Eastern countries and Europe.

An official report of the Horticulture Development Export Board said this year mango exports were started on May 20 and it continued till mid-September. It is expected that the target will be achieved when the figures for the remaining period are compiled by the ministry of commerce.

The mango production stood at 1.6 million tons this season, out of which 0.12 million tons, worth $39.99 million might be exported, which would be a mere seven per cent of the total output.

The UAE was the leading market for Pakistani mangoes followed by Saudi Arabia. The new weight standardisation brought credibility to export process in the European Union member countries.

According to the report, efforts were under way to create better marketing conditions for Pakistani mango in the world, in general, and in Europe, in particular.

Pakistan has succeeded in getting due market share for export of mango in Germany by displaying it in the superstores and the same would be done in other European countries.

The reasons behind low quality mango export to UAE include issues like quality standards set by the World Trade Organisation or Eurep Gap but they related to logistics problems.

Besides, higher air freight for mango export to Europe, the cargo aircraft has low capacity as compared to that of the ships, which were used for exports to the Middle Eastern Countries.

It was pointed out that less capacity in the aircraft and higher freight rates minimise quantity of mango exports to Europe.

99pc mango export targetachieved -DAWN - Business; September 25, 2007

 

[Neo]

TDAP for strategic plan to develop trade sector, enhance exports​

KARACHI: As part of its export development strategy, the Trade Development Authority of Pakistan (TDAP) wants a strategic plan to develop trade sector and enhance exports.

“There is a need of a long-term strategic plan of the authority for export development,” the authority mentioned in the draft of financial regulations finalised by the authority on Tuesday. The draft of the regulations will be put up before board of the authority for approval.

Among the other key components of these regulations, development of Annual Financial Plan of the authority in the context of the strategic plan of the authority has also been envisaged.

According to draft of financial regulations, this strategic plan should not be taken as a numbering exercise, but as a planning and qualitative exercise, supported by the top down estimates and numbers.

This plan will both serve as an input to the National Planning Commission and also to various members and stakeholders as well as for national socioeconomic plans and requirements.

Apart from the strategic plan, the draft of the financial regulations also envisages resource allocation and utilisation policy of the authority.

“It should resource generation, allocation, utilisation and results to have a strong strategic policy,” the draft mentioned.

According to officials, the approval of the financial regulations from the board has become important for the smooth sailing of related affairs in TDAP, which replaced Export Promotion Bureau (EPB) last year.

Meanwhile, the 2nd meeting of the board has been scheduled on September 27 and will take up a heavy agenda regarding policies for administrative and financial affairs of the authority.

It is pertinent to mention that the first board meeting was held in February this year, however it did not accord approval of financial matters, HR Policy, administrative and financial delegation of authority and pay and perquisite of the authority, which are now agenda of the second board meeting.

TDAP board is comprised of 27 members from government and private sectors. Federal minister for commerce heads the board. The high-powered TDAP board includes the chief executive of TDAP, secretaries of ministries of commerce, finance, industries production and special initiatives, textile industry, food and agriculture and livestock, chairman Central Board of Revenue, secretary Board of Investment (BOI), Deputy Governor State Bank of Pakistan (SBP), chief secretaries of Punjab, Sindh, NWFP, and Balochistan and AJK, presidents of the Federation of Pakistan Chambers of Commerce and Industry and the Overseas Chamber of Commerce and Industry, and 10 members from the private sector.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Portfolio investment down by $84m​

ISLAMABAD: The total portfolio investment in the country registered an outflow of $84.3 million during July-August period of current fiscal 2007-08 as against an inflow of $31.9 million in the same period last year, the Ministry of Finance said on Monday.

According to a report released here, the Investor Relations Desk of the finance ministry said that during the first two months (July-August) of the new fiscal year 2007-08, foreign direct investment (FDI) amounted to $460.3 million during this period against $375.5 million in the same period last year, showing an increase of 22.6 percent. staff report

Daily Times - Leading News Resource of Pakistan

 

[haviZsultan]

Thanx Neo... we rarely hear any good news about Pakistan in this forsaken place! Thanx for the information! Hate it here in Canada... just don't belong here and don't even wanna study...

I wanna be back in Pakistan where I can hang around with the sweet pakistani pariyan, attend all the underground music events and can borrow my my freinz mustang and drive it at 220 km without a stupid Canadian policeman stopping me on the way. I miss Pakistan... and then you admins don't even take mercy on me and get girls on the site...

 

[Neo]

Non-tariff barriers hampering Indo-Pak bilateral trade​

* Indian commerce ministry issues pro-forma to cement exporters

LAHORE: Lahore Chamber of Commerce and Industry (LCCI) has said that non-tariff barriers imposed by the Indian government are hampering bilateral trade between India and Pakistan as is evident from a 200-page pro-forma given to Pakistani cement exporters.

In a joint statement issued on Tuesday, LCCI President, Shahid Hassan Sheikh, Senior Vice President, Yaqoob Tahir Izhar and Vice President, Mubasher Sheikh said that contrary to its claims, the Indian government was increasing non-tariff barriers with every passing day.

Recently, they said, the Indian Ministry of Commerce has issued a 200-page pro-forma for Pakistani cement exporters and considering the contents of that pro-forma it is very difficult for any Pakistani cement exporter to export the commodity to India.

The LCCI office-bearers while stressing the need for removal of non-tariff barriers said that in the presence of such non-tariff barriers, even the MFN status would not work.

India and Pakistan together have a population of 1.295 billion (Indian 1.13 billion and Pakistani 165 million). Their total international trade amounts to $347.55 billion, out of which the trade between the two countries amounts to only $1.095 billion, which is only 0.315 percent of their total international trade.

They said that while Pakistan’s imports from India through proper channels had increased from $382.2 million to $802 million during the last three years, Pakistan’s exports to India had increased from $93.8 million to $293.3 million. Pakistan has always experienced a deficit balance of trade with India, which had increased from $288.4 million in 2003-04 to $508.7 million in 2005-06. The deficit would increase manifold if the trade through third countries such as Dubai and Singapore were taken into account.

LCCI Senior Vice President, Yaqoob Tahir Izhar and Vice President, Mubasher Sheikh said that while the businessmen of the two countries are interested in gains from trade, an unfriendly visa policy of the two countries is hampering the businessmen of the two countries to visit each other’s market and negotiate trade deals.

They said that the talks between the Commerce Secretaries of the two countries in July-August, 2007 in which all trade barriers between the two countries were discussed have raised hopes that trade between our two countries can increase to $10 billion in the next three years.

They hoped that Joint Study Group of the two countries would help develop a policy framework to maximise benefits of geographical proximity, identify opportunities for enhancing economic cooperation and create a framework to boost trade in goods including such as custom cooperation, standards and certification system.

They said that Indian companies can come forward by entering into joint ventures in the fields of software development, telecommunication, information technology, computer engineering, bio-technology, light engineering, foundry machinery items, metallurgy, precious and semi precious gemstones and petrochemicals. Joint ventures will increase interest in each other’s countries and provide opportunity to utilise potential available in India and Pakistan.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Private sector’s borrowing declines 9.86%​

KARACHI: The borrowing of private sector from the banking sector declined by 9.86 percent during the last financial year, indicating a slowdown in the economy.

Banks’ credit to the private sector declined to Rs 365.718 billion from Rs 401.797 billion after rising continuously for many years.

This fall reflects a slowdown in industrial and trading activities. This may be attributed to a sharp surge in interest rates for the private sector during the last two years. The central bank of Pakistan had started raising interest rates about two years ago in order to check inflationary trends in the economy. Although the decision has so far failed to have any major impact on the prices of commodities and consumer items, it has slowed down the credit off-take of the private sector.

Economic observers say sectors like textile and auto consumed less than what was expected from them. Both these sectors have been the largest consumers of credits. Export-led textile sector has reduced consumption of credit which is reflected by its below target exports. Also, the booming auto sector has started moving downward, resulting in the lower consumption of credit.

This lower credit off-take is also significant because the credit disbursements to agriculture sector were above the central bank’s target last year. This may imply that the condition for doing business has become worse in the country while the untaxed agriculture sector continues to produce bumper crops.

During the year net domestic assets of the banking sector rose by Rs 383.699 billion while net foreign assets surged by Rs 274.551 billion.

Reserve money grew by 20.88 percent during 2006-07 owing to robust inflows from abroad. Broad money grew by 19.32 percent during the same period.

Federal government’s budgetary borrowing rose to Rs 138.4 billion in 2006-07 from Rs 107.9 billion in 2005-06.

The government borrowed Rs 195.3 billion from scheduled banks, but repaid Rs 56.9 billion to the State Bank of Pakistan.

Currency in circulation rose by Rs 99.79 billion in 2006-07. It had increased by Rs 74.48 billion in 2005-06.

Demand deposits increased by Rs 1.558 trillion, but time deposits declined by Rs 1.013 trillion.

Bank deposits with SBP increased by Rs 97.59 billion to Rs 305.16 billion.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Private sector’s borrowing declines 9.86%​

KARACHI: The borrowing of private sector from the banking sector declined by 9.86 percent during the last financial year, indicating a slowdown in the economy.

Banks’ credit to the private sector declined to Rs 365.718 billion from Rs 401.797 billion after rising continuously for many years.

This fall reflects a slowdown in industrial and trading activities. This may be attributed to a sharp surge in interest rates for the private sector during the last two years. The central bank of Pakistan had started raising interest rates about two years ago in order to check inflationary trends in the economy. Although the decision has so far failed to have any major impact on the prices of commodities and consumer items, it has slowed down the credit off-take of the private sector.

Economic observers say sectors like textile and auto consumed less than what was expected from them. Both these sectors have been the largest consumers of credits. Export-led textile sector has reduced consumption of credit which is reflected by its below target exports. Also, the booming auto sector has started moving downward, resulting in the lower consumption of credit.

This lower credit off-take is also significant because the credit disbursements to agriculture sector were above the central bank’s target last year. This may imply that the condition for doing business has become worse in the country while the untaxed agriculture sector continues to produce bumper crops.

During the year net domestic assets of the banking sector rose by Rs 383.699 billion while net foreign assets surged by Rs 274.551 billion.

Reserve money grew by 20.88 percent during 2006-07 owing to robust inflows from abroad. Broad money grew by 19.32 percent during the same period.

Federal government’s budgetary borrowing rose to Rs 138.4 billion in 2006-07 from Rs 107.9 billion in 2005-06.

The government borrowed Rs 195.3 billion from scheduled banks, but repaid Rs 56.9 billion to the State Bank of Pakistan.

Currency in circulation rose by Rs 99.79 billion in 2006-07. It had increased by Rs 74.48 billion in 2005-06.

Demand deposits increased by Rs 1.558 trillion, but time deposits declined by Rs 1.013 trillion.

Bank deposits with SBP increased by Rs 97.59 billion to Rs 305.16 billion.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Pak-German trade to touch $2 billion mark ​

KARACHI (September 27 2007): The Germany's trade with Pakistan will touch two billion dollars by the end of this year, said Consul General of Germany in Karachi, Hans Joachim Kiderlen, while talking to reporters at an Iftar dinner hosted by him here on Wednesday.

The Consul General said that of the total trade volume, Pakistan's exports to Germany were to the tune of about 800 million dollars and the imports from Germany were 1.2 billion dollars.

He spoke of the good economic ties between the two countries and was of the view that these should be enhanced further. Kiderlen said that Pakistan should diversify its exports to Germany.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Promotion of tourism to project country's true image: President ​

ISLAMABAD (September 27 2007): President General Pervez Musharraf has said Pakistan is promoting tourism which provides an opportunity to project the country's true image in the international community.

In a message on World Tourism Day falling tomorrow (September 27), President Musharraf said Pakistan joins the international community in celebrating the day, with its theme 'Tourism opens doors for women' that highlights the issue of prime importance - promoting gender equality and women empowerment. The President said tourism is a sector of economy that not only employs significant number of women, but provides enormous opportunities for their advancement.

"Pakistan is proud of having an unparalleled combination of history, culture and adventure. As a nation we may be young, but as a land we are custodians of the legacies of ancient civilisations of Indus Valley, Gandhara and treasures of the marvellous Moghul heritage," he said.

President Musharraf said Ministry of Tourism's campaign 'Destination Pakistan 2007' was able to create awareness among fellow citizens as well as foreign tourists about the immense tourism potential of Pakistan.

He said as a result of the government's consistent pursuit of the UN's third millennium development goal of promoting gender equality and women empowerment, women are actively playing role in country's political, social and economic spectrum.

"More and more women are joining Pakistan's tourism industry in professions like travel agents, tour operators, guests relations officers, housekeepers etc. There are a number of tour and travel companies in Pakistan which are being successfully run by women chief executives," he added.

Prime Minister Shaukat Aziz in his separate message said by actively participating in every social and economic activity, Pakistani women have already proved that they are even better than their fellow male citizens.

"Whether it is the field of education, engineering, medicine, computer sciences, social sciences, arts and crafts, business administration or financial management, Pakistani women have excelled in every field of national economy."

Prime Minister Aziz said Pakistan is blessed with matchless natural beauty and it is the cradle of many ancient civilisations and religions. He said the country's cultural diversity and architectural heritage are unique and its mountains present opportunities for all types of adventure sports.

He mentioned 'Destination Pakistan 2007' campaign and the several events organised in this regard including Lahore Marathon, First Women Rock Climbing Expedition, National Ski Championship, Cholistan Jeep Rally, in which Pakistani women showed dedication and courage.

The Prime Minister said during last three years, the government brought many positive changes in the country's social and economic set up. He said many discriminatory laws are now history and many new avenues of national development had been opened as a result of gender reforms.

He said with more and more women opting for higher education in social, management and computer sciences, the socio-economic fiber of the society is taking a modern and progressive look.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Abu Dhabi investor to set up hotel in Lahore ​

ISLAMABAD (September 27 2007): The Chairman of Abu Dhabi based Capital Investment Overseas has said that the company is planning to build a five-star hotel in Lahore, with an estimated investment of $341 million.

He said that the construction of 602-room hotel would be the second big venture by the company during the last two years investing huge amount in Pakistan's hotel industry, Khaleej Times reported. He added that UAE investors are looking for more opportunities in Pakistan as a major destination for their investments as it has stable economic policies in addition to consistent growth.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Rs 120 billion SDP for Fata approved ​

ISLAMABAD (September 26 2007): President General, Pervez Musharraf and Prime Minister, Shaukat Aziz, on Tuesday approved a priorities' list for Rs 120 billion Sustainable Development Programme (SDP) for Federally Administrated Tribal Area (Fata). SDP spans over 9 years and will be completed by 2015.

The two leaders deliberated over SDP with the officials of the federal government and Fata Secretariat at Presidency for more than three hours. Under the programme, construction of small dams in Fata will be the government's top priority. The president and Prime Minister were informed that over 100 sites have already been identified in Fata, which suit for construction of small dams. These dams will generate power to meet demand in Fata, besides providing water to a vast acreage for irrigation. The next comes infrastructure in the priorities' list.

The meeting was informed that the federal government will provide funds from Public Sector Development Programme (PSDP) for the construction of quality infrastructure to facilitate the people in that area. In order to attract public and private sector investment for setting up industries to supplement government efforts to provide job opportunities to the people and eradicate unemployment.

SDP's other priorities will be development of road network, setting up of health units, schools for quality education, small and medium enterprises (SMEs), training centres to impart training to unskilled people to meet the requirement of the industries and other businesses. SDP is also meant to develop Fata and bring it at par with the developed areas of Pakistan and improve living standard of the people there.

The administrator of Fata secretariat gave a detailed presentation to the meeting on potentials of Fata in different sectors. He said Fata was enriched in different natural precious stones and the government should encourage private sector for their exploitation. According to the administrator, Fata has confirm resources of copper, gold silver and other previous stones.

The meeting also reviewed the progress of the on-going development projects in Fata and expressed satisfaction that utilisation of PSDP allocated for it was 99.7 percent. The meeting was informed that Fata will get Rs 7.5 billion from PSDP this year. In addition to it, Fata will be given special grant for ensuring adequate funds to ensure that its development projects complete well in time.

SDP will also supplement the US sponsored programme of ROZs from where exports to US and Europe will be free of duty and taxes.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Balochistan development: Netherlands, IUCN to sign MoU ​

ISLAMABAD (September 26 2007): Kingdom of Netherlands and International Union for Conservation of Nature (IUCN) would sign Rs 450 million agreement for "Balochistan Partnerships for Sustainable Development." A ceremony for signing this contribution agreement would be held at Embassy of Netherlands on Wednesday morning.

The agreement would be signed by Ms Aban Marker, the regional director for Asia, on behalf of IUCN and Willem Andreae will represent the Embassy of Netherlands. The amount to be provided under this agreement would be spent on the execution of second phase of the Balochistan water programme, through the IUCN.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Thermal power plants: portion of ADB funds to be used for feasibility study ​

FAISALABAD (September 27 2007): A portion of the funds $51 million under Power Sector Component of Infrastructure Development Project assisted by the Asian Development Bank (ADB) will be used for the feasibility study for thermal power plant based on gas from small gas fields of Pakistan.

This was disclosed by the sources of Private Power and Infrastructure Board, here on Wednesday. Additional funding, over and above the ADB's allocation for this project, will be provided by Pakistan Government. The Private Power Infrastructure Board (PPIB), a one-window facility of Pakistan Government on matters related to private power projects development is the implementing agency (IA) of the subproject.

PPIB is now seeking expressions of interests (EOIs) from suitable engineering consulting firms/joint ventures to carry out the Feasibility Study for Thermal Power Plant(s) based on Gas from Small Gas Fields of Pakistan.

There are gas fields in Pakistan which are offering limited gas supply and as such are not feasible to be connected to the main gas pipeline due to economic reasons. These reserves are either not being utilised optimally (gas being flared) or in some cases, the gas-fields are dormant.

The feasibility study is aimed at identification of such gas-fields offering limited gas supply for limited periods, authentication of gas availability and development of thermal power plant(s) based on gas from these gas-fields. One of the alternatives is to pool gas at some central point from nearby gas-fields, which otherwise is uneconomical to produce and/or transport.

This gathered gas could be used to feed a medium to large-scale power plant of about 150-200 MW. The other alternative is to set-up small-scale portable power generation plants operating on gas from such small fields, so that these can be relocated to another such site upon diminishing of the gas reserves at a particular site.

The cumulative capacity would be in the range of 150-200 MW. According to official sources, the Feasibility Study is proposed to be carried out by a joint team of Local and Foreign Consultants to be appointed by Private Power and Infrastructure Board (PPIB) in consultation with Asian Development Bank (ADB) and Infrastructure Management Unit (IMU). PPIB will be the main agency for execution of the study.

PPIB will oversee the study implementation, envisaged over a period of 15 months, with the advice and assistance from the Panel of Experts (POE). PPIB and/or POE, as the case may be, will review the drafts of various reports/technical memoranda of the Consultants before final approval. Regular formal meetings will be held so that there is no ambiguity on the layout of the scheme, design and work progress.

Pakistan has received financing from the Asian Development Bank to assist the Government to create an enabling environment for infrastructure investments for domestic public and private participation as well as bilateral and multilateral agencies and to increase infrastructure services in Pakistan, by implementing an infrastructure investment programme in the power, transport, and water resource sectors. The Loan is being administrated by Infrastructure Management Unit (IMU) established within the Planning and Development Division (PDD).

According to official sources, the feasibility study must explore for optimum power project, keeping in view the fuel availability, interconnectivity with transmission grid, system reliability, efficiency, availability, flexibility for power purchaser to opt for different combinations.

In case a single power project is to be implemented by pooling gas at some central point, the envisaged capacity would be 150-200 MW. However, in case, the other option of setting up small-scale portable power generation plants operating on gas from such small fields, so that these can be relocated to another such site upon, the cumulative capacity would be 150-200 MW.

The works covered under this study will include, but not limited to, data collection, technical and economical analysis and detailed feasibility level design of equipment, power optimisation, transmission, economic, financial, social and environmental investigations, cost estimates with detailed bill of quantities (BOQ).

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

165 megawatts Morgah plant: Attock General achieves financial close ​

ISLAMABAD (September 26 2007): Attock General Limited (AGL) on Tuesday of its 165 MW thermal power plant to be set up at Morgah, near Rawalpindi. Liaquat Ali Jatoi, Minister for Water and Power, witnessed the signing of the financial close documents executed between AGL and the Private Power Infrastructure Board (PPIB) Managing Director.

Jatoi, in his remarks, appreciated the financial close of AGL which, according to him, was the fifth project which had achieved financial close under the 2002 power policy. "This," he said, "shows confidence of the investors in the policies of the government, committed to team up with the private investors for developing the power sector of the country, for a prosperous Pakistan."

The estimated cost of the project is $148.60 million, wherein 20 percent equity will be invested by the sponsors--Attock Refinery Limited and Attock Oil Company Ltd (UK)--and 80 percent debt will be financed through lenders (Faysal Bank Limited, Allied Bank Limited and Meezan Bank Limited). The power plant is expected to start its commercial operation by August, 2008.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

IT industry grows manifold: Netsol chief executive officer ​

LAHORE (September 27 2007): The size of the IT industry in Pakistan has grown manifold, and besides Karachi, a good number of IT companies are operating in Lahore, Islamabad and some other major cities of the country. NetSol Technologies Chief Executive Officer Salim Ghauri said in a statement here on Wednesday.

"Out of 1,056 IT companies, over 100 companies are ISO-certified and the industry's total size, in terms of volume, has crossed the mark of two billion dollars and its exports are close to touching 100 million dollars". He said 2007, like last year, registered robust growth in IT sector of Pakistan. Starting with a comparatively slow pace, it gained momentum gradually to compete internationally, he added.

Salim Ghauri said the workforce involved in this sector had crossed the 100,000 mark and an impressive number of foreign qualified youngsters were aggressively returning Pakistan to tap the potential of the sector.

He said that every growing industry, anywhere in the world, came across with issues like resource management, adding that pace of growth in Pakistan's IT industry was much higher than the number of IT professionals being produced by the universities and colleges.

"We can be facing a critical situation in case academic institutions are unable to provide sufficient number of IT professionals," Salim Ghauri warned. He said that both Pakistan Software Export Board (PSEB) and Ministry of Information Technology had chalked out an Internship Programme to meet the industry's demand of human resource.

PSEB is also investing to assist IT companies in certifications, including CMM and CMMI levels. It has allocated sufficient budgets for this purpose and its efforts would start showing results in the next three years.

Business Recorder [Pakistan's First Financial Daily]