Pakistan Economy - News & Updates - Archive

[Neo]

New Delhi, May 11, 2006

India is seriously considering joining a Central Asian gas pipeline that originates from Turkmenistan by the end of this month, but the decision to join the new project will not detract from its commitment to the Iran-Pakistan-India pipeline.

"We are serious about joining the Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline project. Hopefully, it should happen this month," official sources said.

"But this does not mean that we have given up on the Iran-Pakistan-India (IPI) pipeline. On the contrary, all three countries have stepped up efforts to make it real," the sources added.

The government Thursday admitted that it was keen to join the $3.3 billion TAP project as it "offered the possibility of an alternative source of gas supply to India".

Foreign Secretary Shyam Saran wrote a letter to MS Srinivasan, secretary in the ministry of petroleum and natural gas April 24 in which he sent the external affairs ministry's comments on the TAP project contained in an annexure.

"These are comments on a draft cabinet note prepared by the ministry of petroleum and natural gas concerning a proposal for India to participate in the Turkmenistan-Afghanistan-Pakistan natural gas pipeline project," external affairs ministry spokesperson Navtej Sarna clarified on Thursday.

The annexure lists out issues that need to be considered before a final decision on joining the project is taken, Sarna said, while underlining the point that the annexure should be seen as not containing recommendations, but different options the government has to meet India's burgeoning energy needs.

"In view of the continuing tension over Iran on the nuclear issue, the IPI project may not be easy to implement even if the economies are mutually acceptable," the annexure says.

Sarna clarified that these comments, which form part of the annexure, were erroneously attributed to Saran by a daily.

The petroleum ministry plans to approach the Cabinet to get its nod for a formal request by the end of the month on becoming an official member of the project. In mid-February, the steering committee had given India three months to submit a formal request.

India was accepted as an observer at the TAP committee last year.

However, an array of crucial issues, including the availability of adequate gas reserves in Turkmenistan, third party certification of reserves, project structure/security and gas pricing, remain to be resolved before India takes a final decision on joining the project.

 

[Spring Onion]

Good work Neo.
Hey Mods Neo is doing great work by updating economy news daily as i had noted it so why not you people think over making him the incharge of the economy thread as no one else bother to post or comment,its only him who daily update it.
Sorry Neo i havnt asked u but i said whatever i felt is right.
Jana

 

[Neo]

Saturday May 13, 2006

ISLAMABAD: Advisor to Prime Minister on Finance Dr Salman Shah here on Friday in a meeting with an 11-member team from National War College USA emphasized that Pakistan needed duty free access to the US and EU markets for its products to give future boost to economy and help it cope with the fallout of Afghan war on country’s economy.
Referring to the bilateral Investment Treaty he hoped that it would ultimately lead to a free trade agreement between the two allied countries.

Welcoming members of the delegation comprising senior military and civil officials from various US government organizations who called on him, he gave an overall review of the economic performance of the country which had witnessed rapid growth and transformation over the last six years.

Appreciating the policies of President General Pervez Musharraf and Prime Minister Shaukat Aziz he said the government has taken bold steps by launching structural reforms in the country.

Mentioning of present setups successes he said deregulations, privatization and liberalization along with revenue generation reforms had been the hallmark of the present government economic policies be cause of which macro-economic imbalances had been removed and economic growth has considerably increased.

Mentioning of future goals he said we want to sustain GDP between 6 to 8 percent.

He told that recently Steel Mill and KESC had also been privatized.

He claimed that the steps taken by the government had fetched huge foreign investment.

Dr Salman Shah said that the country’s economy is now driven by the private sector and the role of bureaucracy in running the businesses had been eliminated.

Replying a question the advisor told the government is committed towards rural development and poverty alleviation.

The Advisor told the government has introduced economic reform programmes including Khushal Pakistan Fund and Community Development Projects to ensure availability of basic amenities of life to the rural population.

He said Pakistan is engaged in dialogue with Iran and Central Asian States for development of energy pipelines and building up railway links and roads.

 

[Neo]

Saturday, May 13, 2006

ISLAMABAD: The fundamental strength of Pakistan’s economic recovery was demonstrated this past year when it became clear that October’s devastating earthquake had not derailed Pakistan’s robust economic growth trends.

This was said by the representative of United States delegation in a written statement at the concluding remarks at Pakistan Development Forum Friday.

He said the United States government thanks the government of Pakistan for organizing this sixth Pakistan Development Forum. “Each year this Forum provides our government and other donors the opportunity to exchange views and coordinate priorities, while in turn strengthening partnerships among all those committed to development in Pakistan”, he added.

In the spirit of this year’s Forum theme, he said, “we applaud the government for taking aggressive steps to promote private sector-led development. We share the vision and commitment to building a progressive, modern, prosperous and democratic state”. He said that the fundamental strength of Pakistan’s economic recovery was demonstrated this past year when it became clear that October’s devastating earthquake had not derailed Pakistan’s robust economic growth trends.

The earthquake was the most lethal to ever occur in South Asia, he remarked. The government reached and quickly and responsibly, and the international community responded generously.

The earthquake relief effort was an excellent example of true collaboration and partnership among donors, governments and NGOs. We should all take satisfaction in the results achieved.

The United States government was proud to work with our Pakistan government partners at the federal and local levels in a largely successful emergency relief effort, he added. The representative said that at the November earthquake reconstruction conference the United States Government pledged $ 510 million in grant aid.

That included approximately $ 200 million in earthquake emergency relief assistance. “We have pledged to provide another $ 200 million of assistance over the next several years to help in the transition and reconstruction of the earthquake-affected areas”, he added.

American companies, voluntary organizations and individuals have already contributed over $ 151 million in assistance, he added. He further said since USAID’s return to Pakistan in 2002 “we have focused our development assistance on four major areas: education, health, economic growth and democracy/ governance”.

This year, he said, “We are providing approximately $ 150 million in project aid to those four areas. In addition, we provide $ 200 million each year in budget support that is associated with our shared objectives of macro- economic stability, private sector development and poverty reduction”.

 

[Neo]

Saturday, May 13, 2006

ISLAMABAD: Pakistan is attracting more foreign oil explorers than India, mainly because of the country’s easier procedure of acquiring acreage for exploration wells by the foreign companies.

“When it comes to attracting foreign oil explorers, there is no doubt Islamabad beats Delhi,” it was observed by an Indian Magazine `Patrowatch’ in its recent edition. “In Pakistan it’s much easier to acquire acreage because you do not get into a head-to-head bidding war with someone who has bid a ridiculous amount of exploration wells,” the Magazine quoted one operator.

Pakistan wants overseas companies to get involved so that they can meet their energy requirements. In India you sometimes get the feeling that we are not wanted, that they can do it on their own,” agrees another operator.

“Pakistan’s system is far more organized than you would expect. They have had the courage to see they cannot do it alone and have outsourced it.”

India will probably insist on doing it alone. This is fine but you need the will and drive to make it happen,” the Magazine remarked.

The Magazine also quoted Atif Khan, head of LMK Resources, who set up a national data repository in Pakistan ten years ago that Pakistan has 19 operators, most of them foreigner.

Khan admits early problems in setting up a national data repository. “It’s not a difficult thing to implement,” he says. Atif Khan said setting up a national data repository in Pakistan is cost-effective. The beauty of this system is that it costs the government nothing,” he added.

 

[Neo]

Saturday, May 13, 2006

KARACHI: The board of the national flag carrier, Pakistan International Airline (PIA) will hedge fuel up to 20 percent of the total fuel quantity needed by the airline, said Tariq Kiramani, chairman and chief executive officer of PIA.

While addressing the cockpit crew at PIA head office here on Friday, the Chairman said, “Team work, together with dedication and commitment of all employees, with further take PIA to new heights.”

He said that initiatives taken so far have resulted in accomplishing remarkable progress in the airline and registered a growth and upward trend in all areas of its operations.

The airline performance indicators such as seat factor, yield, passenger traffic, market share, aircraft utilization and share value have shown a significant increase in 2005, he said.

Seat factor increased to 73.1 percent in 2005 as compared to 69.1 percent in 2004, with a 10 percent growth in passenger traffic, domestic market share was up by 65.6 percent and international market share at 50 percent in March 2006, fleet utilization was higher haen in 2004 and even better than industry average.

PIA recorded the highest punctuality rate in the last 26 years of its history that averaged 87 percent.

 

[Neo]

ISLAMABAD, May 12: The government has decided to allocate about Rs12 billion for Diamer-Basha dam in the next year’s development programme to complete infrastructure required for the construction of dam.

A senior government official said on Friday that the allocated amount would be utilised for the preliminary construction works, including a bridge and a road besides residential buildings.

He said the idea was to ensure that the required infrastructure was fully in place before its construction work started after two to three years.

He said there would be no major allocation for any other major dams in the next year’s budget. But, he said, some funds would be made available in the next year’s Public Sector Development Programme (PSDP) for the construction of about Rs100 billion Neelum-Jhelum hydroelectric power project in the Azad Kashmir.

The estimated cost of the Diamer-Basha dam is $6.7 billion, including an updated feasibility report.

 

[Neo]

Saturday, May 13, 2006

CHITRAL: The government has dropped its plan to import electricity from Tajikistan through the Wakhan-Boroghil Pass-Chitral route, sources told Daily Times on Friday.

Sources said that the plan had been dropped despite a number of surveys by the National Engineering Services of Pakistan (NESPAK), which had recommended that the Wakhan-Chitral route was the safest for the import of electricity from Central Asian states.

The decision was taken at a two-day energy ministers’ conference in Islamabad, in which Kabul told Islamabad that the Wakhan route was non-viable. “There is no road access, it remains closed for six months in winter, is financially uneconomical due to mountainous terrain and is very vulnerable to sabotage,” sources quoted an Afghan minister as telling Pakistani authorities. The minister said that his government would support the Kabul route.

 

[Neo]

LAHORE (May 14 2006): Between 2006 and 2009 the Asian Development Bank (ADB) has committed $700 million for various identified projects and programmes, tailor made for Punjab, in the areas of water resources, renewable energy, public resource management, rural and urban development, social sectors and justice support.

Sources disclosed this here on Saturday. They said that from ADB, Punjab would also benefit from a number of national programmes in micro finance, power transmission and distribution, rural modernisation, and private sector development.

According to them, at present the ADB's country strategy and programme is based on three pillars: good governance, sustainable pro-poor growth and inclusive social development, while the ADB's proposed future areas of assistance include economic infrastructure, public resource management and governance, and inclusive social development.

Under the economic infrastructure, various areas have been identified for assistance. In water sector and irrigation, Punjab Irrigated Agriculture Development Sector Project has been formulated, which would provide support for irrigation system rehabilitation and modernisation, integrating farm water management and agriculture activities with canal rehabilitation, and promoting integrated water resource management for surface water, ground water, and drainage.

The Punjab Road Sector Development was another domain, in which assistance would be provided for improving important provincial highways and rural area roads that increase access for rural population to markets and social services, and facilitate trade and provides access to income and employment opportunities.

In power sector, efforts would be made to develop renewable energy, under which the use of renewable energy sources for power generation to meet Pakistan's target of the 10-percent of the energy mix from renewable sources by 2015 would be promoted. This would also include construction of five small to medium hydropower stations in Punjab.

Finally, the ADB also proposes to assist in urban development, specifically developing basic urban services in the southern Punjab, which would include reducing urban poverty, improving community health, and reducing environmental degradation in 21 project towns by improving the water supply, sanitation, solid waste management, and roads for low-income communities.

 

[Neo]

PESHAWAR (May 14 2006): NWFP Governor Khalil-ur-Rehman has said that development process for socio-economic uplift of the people in Fata is progressing at the tremendous speed which can be gauged from the ratio of funds utilisation in the area over the past almost five years.

In fact, he added, allocations for this purpose under the regular annual development programme as well as the special development packages has not only been increased almost ten times over the period of five years but the achievements with regard to their physical consumption on development schemes is also unprecedented in the entire country.

Talking to a group of students of Mass Communication Department of the Islamabad based Margalla F.G. Degree College for Women, who called on him at Governor's House here on Saturday, the governor said, even during the current financial year, almost more than 93 percent of the total allocations have already been consumed which neither have any example in the history of the area nor in the entire country in this respect and Insha Allah by the end of the year, 100 percent achievements would be accrued.

Secretary to Governor, Arbab Muhammad Arif and Additional Secretary Information & Public Relations, NWFP, Muhammad Afzal Khan were also present on this occasion while a known journalist, Sheikh Hafeez-ur-Rehman accompanied the delegation.

Responding to a volley of questions from the budding journalists, the governor said, indeed, the development activities are in progress throughout Fata including those areas where accessibility of the government institutions has been made possible over the past five years.

In this connection, he added, construction of road network together with the establishment of educational and health institutions are being given top most priority and fortunately the response from the respective people is highly encouraging and appreciable.

Talking on another point the governor also admitted that definitely the government is confronting the problem of shortage of staff particularly to manage the health and educational institutions. However, he added, we have been trying to tackle the problem through making appointments on contract basis even from amongst the candidates hailing from outside the Fata. As far as provision of educational facilities are concerned, the governor said, special emphasis is being given towards the promotion of female education which is also receiving great enthusiasm and support from the respective people as well.

Talking on a point regarding law and order in Fata, the governor said, barring certain areas of North and South Waziristan agencies, the situation has always remained quite normal where the occurrence of the untoward incidences during the recent past was too the outcome of the circumstances prevailed across the borders. In fact, he said, the general crime rate in Fata has always been found very negligible and the writ of the government is established under the prevailing laws.

Earlier, during a briefing, Shahzaman Khan, Director General (Media) of Governor's Secretariat highlighted the salient features of the pace of development in Fata as well as the historical background of the administrative system.

In the education sector, he said, the number of degree colleges have already been increased from 7 to 32 out of which 12 are meant for women whereas 1,042 new educational institutions in the school sector have been added in the existing network over the period of past five years.

Similar is the case with regard to the communication sector wherein too, he said, apart from the construction of road network to ensure accessibility of the respective people to the rest of the country, the government has planned to establish one radio station in each agency and out of which four radio station are already working - one each at Wana, Miranshah, Razmak and Jamrud. Besides, he added, written material is also being published under the aegis of the Media Cell to disseminate knowledge amongst the respective circles.

 

[Neo]

By Farhan Bokhari, Special to Gulf News

Islamabad: The latest figures reporting a rising in Pakistan's annual trade deficit last month on a year on year basis provides no comfort for the future of the South Asian country's economic recovery.

The cumulative trade deficit during the first nine months of the financial year (July-June) rose to about $9.5 billion, up from less than $5 billion for the same period a year ago.

This is indeed an alarming trend, though one which has so far received little attention from Pakistan's leaders.

General Pervez Musharraf, the military ruler, and prime minister Shaukat Aziz, still claim publicly that a rising import bill which has principally forced up the deficit is a sign of a healthy and prospering economy.

If imports rise sharply, that must be partially due to increased demand from a recovering industry, goes the official argument.

In this background, the warnings from some participants in the annual Pakistan Development Forum an annual gathering of primarily western donors, who met in Islamabad during the past week, could not have been more timely.

Oil import bill

Representatives of donors have just left Pakistan after calling upon the government to enforce tight controls so that key economic indicators remain well within control.

For Pakistan's friends and donors, the reality of what many describe as an overheated economy is a dangerous development for the country, irrespective of the spin put across by its leaders.

The trade deficit may in part be driven by such realities beyond Pakistan's control as high international oil prices which have added to the woes of many other countries too.

Sharply rising oil import bills may have been beneficial for the world's few large oil exporting economics. But they have added to financial pressures over the much larger community of oil importers.

However, there are many other realities which are hitting Pakistan badly. The so called economic recovery so far appears to have been largely based on a sharp growth in trading activities.

For instance, the fast rising sale of new cars is one trend that is often portrayed by government leaders as a sign of recovery.

However, this is just a sign of increasing consumption and not a parallel fast paced increase in jobs for the large community of Pakistan's unemployed.

Ultimately, Pakistanis have only witnessed a widening gap between the rich and the poor, the haves and the have nots. As Pakistan's roads have choked with a rise in the number of cars, its community of impoverished remain significantly large to cause the danger of havoc for any country.

The Pakistani government claims that the number of Pakistanis below the poverty line has fallen from 33 per cent of the population to a range of 25-26 per cent. This is a figure which is disputed by many.

But even if this statistic was acceptable, it still poses a formidable challenge. Even a quarter of Pakistan's population of about 160 million living below the poverty line is an alarming figure.

Bottom line

The government's resolve to put such priorities on a fast track such as provision of basic needs and social services to the poorest of the poor, remains weak.

Pakistan, notwithstanding claims of reform from its leaders, continues to be a country where the elite enjoy far better access to resources and economic opportunities than the poor.

The bottom line is indeed far too profound to be easily ignored. The rising trade deficit represents an unhealthy trend for at least two equally related reasons.

On the one hand, it represents an economic trend which underlines the reality of a society with its elite continuing to be consumption oriented.

On the other hand, the trade deficit like many other important indicators does not provide any guidance on precisely how Pakistan would ultimately tackle some of its acutest and most difficult challenges.

In the long run, Pakistan lives with the danger of having its economy succumb to the failure of its government and the state of beginning to address the large social divide between its rich and the poor.

In sharp contrast, there may well be far more emphasis on backing the kind of economic recovery which only promotes the status quo. What lies behind the trade deficit is a direction that Pakistan is best left not to take.

 

[Neo]

Sunday, May 14, 2006

ISLAMABAD: Pakistan has asked the Asian Development Bank (ADB) to take a critical look at the financial and non-financial costs to its clients, since these largely influence their borrowing decisions.

Competitive lending charges, with the least possible burden of policy baggage and non-financial costs, facilitated by simplified procedures and innovative lending products, need to be put in place.

Pakistan’s representative attending 39th Annual General Meeting of the ADB, held at Hyderabad, India, last week, said in his address that competing sources of infrastructure financing are available to the major borrowers from the ADB’s ordinary capital resources (OCR) and their public infrastructure entities. These sources are not confined to the multilateral development banks (MDBs) and bilateral agencies. The ADB will need to compete with these alternative sources of financing, including those in the commercial sector, in order to increase its business. Competitive lending charges, with the least possible burden of policy baggage and non-financial costs, facilitated by simplified procedures and innovative lending products, need to be put in place. Reduced costs of doing business with DMCs will play a critical role as they determine the relevance of the ADB. The ADB needs to become more relevant, more responsive, and more result oriented. This challenge requires strong commitments from the ADB and its stakeholders.

Pakistan’s economy has continued to perform strongly in recent years with economic

growth accelerating to 8.4% in 200405, the fastest pace in two decades. The strong economic recovery since 2002-03, accompanied by macroeconomic stability, has been underpinned by prudent macroeconomic policies, wideranging structural reforms, fiscal discipline and consistency and continuity in polices. These policies have contributed to a marked improvement in productivity and in consumer and investor confidence. This has led to growing domestic demand, which should support growth at a robust level over the medium term.

However, Pakistan’s economy has faced headwinds from rising energy prices. The price of oil touched an all-time high at over $70 per barrel from the beginning of the current fiscal year. Pakistan was then struck by the massive earthquake of 8 October, causing widespread destruction of areas and human lives.

 

[Neo]

ISLAMABAD (updated on: May 15, 2006, 17:38 PST): Advisor to the Prime Minister on Finance Dr. Salman Shah has said the government is implementing a comprehensive strategy to sustain current economic growth rate during the next ten years.

He was inaugurating a two-day regional conference on Competitiveness and Economic Growth in Asia in Islamabad on Monday.

The conference has been organised by The Competitiveness Institute (TCI) in collaboration with USAID.

Dr. Salman Shah said we have been able to experience substantial economic growth during the last three years, which has resulted in poverty reduction and improved employment generation. He said, we intend to continue this reformation process for another ten years with an objective to double our economic growth.

To sustain this economic growth, the government, he said, is concentrating on improving human capital through enhancing vocational training, ensuring provision of energy on affordable prices, improvement of mega cities, improvement in basic infrastructure of rural areas, provision of world class network of rail, roads and ports, promoting public private partnership and above all reinforcing public confidence in Pakistan's economic future.

He said, now we are focusing on promoting competitiveness to enhance productivity and create knowledge-based economy.

This practice would go a long way in further improving our economy and create more opportunities for employment besides poverty reduction and upgrading living standards of the masses, he added.

Dr. Salman Shah said, that competitiveness support fund is being launched with the partnership of USAID and European Union costing fifty million dollars.

He said the United States would provide twelve million dollars while European Union will provide ten million dollars and Pakistan government will provide matching amount for this project.

The fund will provide technical and financial assistance to the entrepreneurs in private sector to improve productivity and enhance competitiveness which would help access of Pakistani goods in international market, he maintained.

Speaking on the occasion, US Ambassador Ryon C. Crocker appreciated Pakistan's economic policies and said these are truly impressive, which has resulted in sustainable economic growth despite earthquake devastation.

He said, due to these policies, Pakistani exports have appreciated, foreign direct investment enhanced and poverty has been reduced.

The United States and Pakistan are strong allies and friends, he said, and his country will continue Pakistan for further strengthening its economy and enhance competitiveness.

United States will provide 1.5 billion dollars to assist Pakistan in developing education, health, governance and economic sectors during the next five years, he said. USAID is also providing assistance to Pakistan in improving Dairy sector, Gem and Jewellery, Marble and Granite industry for value addition, he added.

Experts from twenty-two countries are participating in the two-day conference, which is first of its kind in the region.

 

[Neo]

ISLAMABAD (May 15 2006): Pakistan is likely to allow import of 100 more items from India, from next fiscal year, out of the 286 items passed on by New Delhi through diplomatic channels and during the third round of Joint Study Group (JSG) held at the end of March.

In the joint statement issued at the end of JSG meeting, Pakistan had agreed to consider increase in importable items from India, in consultation with the stakeholders and fulfilment of legal requirements.

Sources in the government here told Business Recorder that Commerce Ministry had received a list of 286 items from India (271 through diplomatic channels and 15 at the JSG), whereas local business community had demanded permission to import 900 items.

After detailed comparison of both lists and keeping in view the interests of local industry, the Ministry identified 100 items, which would be included in the positive list, for the time being.

According to sources, preference would be given to those items on which duty is about 5 percent and are not locally manufactured.

They said that the list would be finalised at an inter-ministerial meeting to be held after the budget, after seeking approval from the Prime Minister and the Cabinet.

They further said that with the inclusion of 100 more items, the positive list would reach up to 882 items as the decision to import cement from India could be withdrawn after what the Economic Advisor to Finance Ministry, Dr Ashfaque Hasan Khan, said the prices of cement in the local market would come down in the Rs 270-272 range on sustained basis.

Presently, the trade volume between the two countries stands at less than $1 billion, and is very much in favour of India.

 

[Neo]

KARACHI (May 15 2006): The burgeoning economy, booming financial sector and the ongoing reforms would provide further impetus to the non-life (general) insurance industry of Pakistan and expected that in next five years gross premium of the listed companies would be Rs 63 billion from Rs 25 billion in 2005.

Despite 20 percent annual increase in gross premium during last four years, the penetration of non-life insurance is still very low at 0.4 percent, far lower than regional countries, according to the detailed report on the sector issued by JS Capital Markets.

The brokerage says: "we recommend 'Overweight' stance on the under-researched non-life insurance sector as there is high probability that this sector will perform better than the broader market."

Rising industrialisation, improving per capita income, higher investment in infrastructure projects, soaring trade activities, privatisation of public entities and competition amongst the insurance companies is likely to result in a gross premium Cagr (compounded annual growth rate) of 25 percent for the next five-year as per the said report.

The gross premium of listed (inclusive of state owned NIC) non-life insurers, according to JS analyst, was Rs 25 billion in 2005 and is likely to reach Rs 63 billion by 2010. This will help in enhancing the non-life gross premium to GDP ratio to 0.5 percent.

Due to minimum paid-up capital requirement of Rs 80 million for non-life insurance firms the number of non-life insurers has dropped. "Total paid-up capital and equity of our sample non-life insurance companies has improved to Rs 5.7 billion and Rs 25.4 billion from Rs 4.2 billion and Rs 13.2 billion in 2001, respectively", said the report.

Profitability of these insurers has reached Rs 5.7 billion in 2005 from Rs 1.2 billion in 2001, a CAGR of 47 percent. In 2005 alone, earnings jumped by 95 percent.

Very interesting point mentioned in the JS Capital Markets report was that contrary to common perception, contribution of investment income in total income for Pakistan companies was in the range of 55-65 percent in last three years compared to 75-85 percent of leading international non-life insurance companies.

Writing on the key insurance firms the analysis says that Adamjee is Pakistan's largest non-life insurer with 27 percent share in 2005 gross premium. The new management led by Mansha (Nishat) Group, in last two years has tried to improve company's financial health. With its aggressive plans, the company can take full advantage of the rising insurance market and can regain its lost market share. Besides this, Adamjee's equity base and balance sheet footing is getting stronger due to its equity portfolio. On FY06E and FY07E earnings, Adamjee is trading at PE of 8.3x and 6.8x with PBV (on cost basis) of 4.4x and 3.0x, respectively.