Pakistan Economy - News & Updates - Archive

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Sindh government, CDGK at odds over Rs 1.263 billion World Bank loan ​

KARACHI (October 10 2007): The Sindh Government and Karachi City District Government (CDGK) have locked horns on the issue of repayment of the Rs 1.263 billion World Bank (WB) loan, Business Recorder learnt on Tuesday.

The bone of contention is the longstanding issue of handing over of the 10 depots of the now defunct Karachi Transport Corporation (KTC) to CDGK by Sindh government, official sources in Transport & Communication Department of the City Government said.

They said that in a meeting on August 22, 2005 at Sindh Governor House, it was decided that vacant possession of all 10 KTC depots would be handed over to CDGK, which would, in return, ensure re-payment of all liabilities of KTC, particularly a WB loan amounting to Rs 1.263 billion (without interest) in 36 equal monthly instalments.

The KTC, which ceased operation in 1997, had borrowed Rs 1.263 billion from the World Bank under Sindh Social Development Program (SSDP) to give Golden HandShake to its employees, sources recalled.

But, as the CDGK has not been able to fulfil its commitment under the agreement, the Section Officer (Vigilance), Labour, Transport, Industries & Commerce (LTI&C) Department of Sindh government, has issued a notice to City Nazim Mustafa Kamal and District Coordination Officer (DCO) Karachi demanding their special attention to the lingering issue.

Sindh government is now constantly pressing the CDGK to repay the first instalment of Rs 283 million to the former, with a warning that in case of non-compliance it may invoke provision of 'at source deduction', sources said. The Sindh government is also asking CDGK for signing an agreement with its Transport Department for completing the formality to hand over/take over the defunct KTC properties, they added.

On the other hand, the city government contends that it would pay the WB or any other loan after bringing in use the depots, majority of which are occupied by various government agencies like Pakistan Rangers (Sindh), Sindh Police, Town Municipal Administration etc, sources said.

The CDGK has plans to establish inter and intra city bus terminals, CNG stations for urban buses and develop parking facilities etc on the said properties, and then the revenue so generated would be used for repayment of former KTC liabilities, sources said. "Of course, the CDGK has no money reserves. It would be able to pay after generating revenue from the KTC depots, which are still not vacant", they added.

According to sources, in October 2004 a summary was initiated by the Labour, Transport, Industries & Commerce Department of Sindh government with the proposal that the CDGK could be handed over all the depots of the KTC, if it agrees to pay WB loan and all liabilities of KTC. On December 20, 2004, the summary was approved by Sindh Chief Minister, and the CDGK was asked to take further action as per approval. But the matter remained inactive, they said.

After getting approval from the Advisor to the Chief Minister Sindh for Finance in a meeting held on December 27, 2005 it was decided that ex-KTC depots be handed over to CDGK, while the mode of payment would be decided later on.

The DCO Karachi on July 31, 2006 informed the LTI&C Department of Sindh government that a meeting was held on July 21, 2006 at Sindh Governor House wherein it was decided that CDGK may take over ex-KTC depots immediately after completion of the formalities, sources said.

The CDGK is now demanding of Sindh government to ensure transfer of the ex-KTC depots with no occupation by whatsoever agency with the latter asking for an immediate repayment of the first tranche of the WB loan, sources said.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan and Iran to revise gas prices periodically ​

TEHRAN (October 10 2007): Iran and Pakistan have agreed to periodic revision of gas prices as part of the pipeline deal to carry Iranian gas, via Pakistan, to India, the Isna news agency said on Tuesday, quoting local export company.

"The two parties have agreed that each side submit its demands for gas price revision to the other side every three years, taking into account the situation on the international market," said a statement from the National Society for Gas Exports from Iran.

The two countries have also agreed on other terms, particularly dealing with "situations of force majeure and the law governing the agreement." According to the statement quoted by Isna, the Indian side--opposed to a price review system--may take part in future talks.

Late in September, Ganimifard, Iran's deputy minister in charge of the project, said that Iran and Pakistan had reached an agreement, in the absence of India, on the pipeline. He added that the two countries should meet in Pakistan in mid-October to approve a final version of the agreement, with a probable signing of the accord at the end of the month. Talks on the $7.4 billion project to supply gas to India through a 2,600 km (1,615 miles) pipeline began in 1994 but suffered from tensions between India and Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

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'Terrorism poses threat to foreign investment in Pakistan' ​

ISLAMABAD (October 10 2007): Minister for Communications, Muhammad Shamim Siddqui said on Tuesday that terrorism and suicide attacks were threat to foreign investment in the country. Speaking on a resolution moved by MNA Yasmeen Rehman about the eradication of poverty in the country, the minister said that the economic policies of the present government aimed to eradicate poverty from the country.

He said that increase in agricultural support prices directly benefited the farmers. He further said that investment in agriculture, infrastructure, banking, energy sectors has directly and indirectly benefitted the lower class of the society.

Shamim Siddiqui said that PSDP in the present fiscal year has reached record figure of Rs 520 billion as compared to Rs 100 billion in 1999. About flour availability situation he said that it was available at Utility Stores Corporation (USC) at Rs 13.80 per kilogram while in open market it was now available at Rs 16.

He said that masses have trust in the economic policies of the government and poverty has been reduced. Earlier, opening the debate on the resolution, Yasmeen Rehman said that poverty is main issue of our country. She claimed that ground reality was far from the figures of poverty reduction given by Federal Bureau of Statistics (FBS).

She said that during last couple of years inflation has risen rapidly, which has eroded the purchasing power of the middle and lower class of the society. Syed Zafar Ali Shah blamed weak institutions for what he called unjust distribution of resources in the country. He alleged that local government system was a source of corruption in the country.

Business Recorder [Pakistan's First Financial Daily]

 

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Continuity of economic policies promised ​

KARACHI (October 10 2007): Sindh Governor Dr Ishrat-ul-Ibad Khan has assured the business community of the continuation of the economic policies being pursued by the present government. He was Speaking at a ceremony held to rename Road 8000 as "S.M.Farooq Road" in Korangi industrial area on Monday evening.

He said that as a result of pursuing the present economic policies, investment climate had improved a lot which attracted foreign direct investment (FDI).

He said the federal Board of Revenue (FBR), which was once known as thieves, had now become businesses-friendly. The governor informed the business community that the government had approved a project of re-building Rs 800 million Jam Saddiq Bridge, which had completed its age. He also said that beside the bridge, a causeway would be constructed at a cost of Rs 200 million.

The Governor announced that the government had decided to change the names of some of the roads, bridges and parks in the city and rename them against the names of those who had done some important work in past.

Taking about recent presidential election, the Governor has criticised the media in general and electronic media in particular, and said that they had created hyper, giving impression that something very big was going to be happened. He said that it was most important that a government completed its tenure and new election process had been initiated.

Dr Ishrat-ul-Ibad advised the business community to get united for the betterment of the country. City Nazim Syed Mustafa Kamal, speaking next, announced establishment of Korangi industrial zone (KIZ), which will be manned by the Chief Engineer of Karachi Water and Sewerage Board (KWSB), officials of land, tax and other department to provide better services and resolve complaints on the site.

He also announced imposition of municipal tax, which would be peanut for the business community, but it was necessary for the maintenance of infrastructure in the area.

He said that the city government had incurred an expenditure of Rs 4.5 billion on infrastructure development in the area and now needed finance to maintain it.

Sindh Minister for Culture and Tourism Rauf Siddiqi suggested that a university would be established in the name of late S.M.Farooq Former President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) S.M.Munir, speaking on the occasion, stressed the need for unity in business community for the betterment of the country. Welcoming the guests, Masood Naqi praised the services of late S.M.Farooq for the people of the country, and said that the road had been named to recognise his services for the people in the country.

Business Recorder [Pakistan's First Financial Daily]

 

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Over one million vehicles converted to CNG mode ​

ISLAMABAD (October 10 2007): As many as 1,080,000 vehicles were converted to the Compressed Natural Gas (CNG) mode by June this year as compared to 500,000 in June 2004, thus marking an increase of 116 percent. Encouraging the use of CNG as an alternate fuel for automotives is the government's policy to control environment degradation and save foreign exchange in import of liquid fuels.

Also, the number of operational CNG stations by June 2007 has risen to 1,488 against 546 in June 2004, hence increasing by 172 percent, according to a three-year performance report of the government. In last three years, the government has taken various policy initiatives to enhance the overall availability of gas for domestic, industrial and other economically important uses such as power generation.

During the same period, supply of gas was increased from 1,197 to 2,466 towns and villages, thus marking an increase by 106 percent. Under Khushhal Pakistan Programme, 1,190 projects were launched under the government's directives at a cost of Rs 35 billion, with 19 billion funded by the government. About 715 projects have been completed while 475 are being implemented.

Production of gas in last three years has increased by 188 MMCFD, which is equivalent to about 1.64 million metric ton of furnace oil per year worth 0.59 billion dollars at an average price of 360 dollars per metric ton. In the power sector, 16 works of 500 KV costing to Rs 21.228 million have been completed during last three years to improve the capability of transmission system.

As many as 18 works costing Rs 34.869 billion for improvement of Transmission System, are under progress and are expected to be completed by June 2008. The Water and Power Regulatory Authority has given a record of 28,82,671 new connections during last three years. The connections include 25,67,744 domestic, 2,41,068 commercial, 28,866 industrial, 44,253 tube-wells and 740 other connections.

The Alternate Energy Development Board (AEDB) has launched a policy for development of new-able energy for power generation, which has been approved by the Economic Coordination Committee.

The AEDB is pursuing the target of implementing 700 MW of wind power projects through private sector by 2010. Letters of Intents have been issued to 90 national and international investors for 50 MW wind power projects.

Business Recorder [Pakistan's First Financial Daily]

 

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Power companies to provide one million new connections ​

LAHORE (October 10 2007): Power Distribution Companies (Discos) will provide one million new connections during the current fiscal year. In addition, 7,500 villages will also be electrified during July-December 2007.

According to details, Discos have been assigned the target to provide one million new connections including 900,000 domestic, 80,000 commercial, 9,750 industrial, 10,000 tube-well and 250 other connections during the fiscal year 2007-08.

In pursuance of the target, as many as 183,975 connections have already been made during first two months of the current fiscal. The connections, provided in July-August 2007, included 166,167 domestic, 14,522 commercial, 1,636 industrial, 1,630 tube-well and 20 other connections.

Maximum number of connections, ie. 54,104 has been provided by Multan Electric Power Company (Mepco) followed by Fesco with 33,413, Lesco with 29,356, Iesco with 19,827, Pesco with 18,380, GEPCO with 18,012, Hesco with 7,958, Qesco with 2,904 and Tesco with 21 connections.

Business Recorder [Pakistan's First Financial Daily]

 

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HP unveils dynamic range of computing products ​

LAHORE (October 09 2007): HP unveiled an innovative line-up of personal mobile and desktop computing products that have been designed to reflect consumers' personal and professional lives through meaningful innovations and the next-generation designs.

HP's broad range of new personal computing products includes two special edition consumer notebook PCs; a Designed-in-Asia-for-Asia notebook PC; as well as the HP Pavilion Elite m9000 Series Desktop PC and the latest high definition widescreen monitors, a spokesman of the company said here on Monday.

According to him, Chin Hon Cheng, vice president, Consumer Products and Mobile Business Group, Personal Systems Group, Asia Pacific & Japan, HP said: "A new energy at HP is creating an ever more personal experience in computing.

HP is innovating and designing PCs and delivering experiences that are reflections of consumers' personal and professional lives." Chin added, "The concept of 'personal' takes many forms. It can be a more natural user interface using touch, or the beautiful high gloss finish that personifies elegance and has become an HP trademark."

Business Recorder [Pakistan's First Financial Daily]

 

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Creating job opportunities: Minfal planning to invest in rural areas ​

ISLAMABAD (October 10 2007): The Ministry of Food, Agriculture and Livestock (Minfal) is planning to invest in rural areas to create job opportunities for young generation as the rural poverty is continuously increasing joblessness through migration of unskilled youth to the urban areas, Business Recorder learnt here on Tuesday.

Sources said that a huge investment in agriculture sector can cause reduction in poverty as 70 percent population of the country is living in the rural areas, of which mostly depends on agriculture while rest of 30 percent directly or indirectly dependent of agriculture.

They said growth in agriculture helps in reducing poverty and hunger more than industrial development. Looking back at the investment data during the last three decades, it could be seen that countries that have invested or continued to invest most in agriculture, both public and private, now experience the lowest levels of under-nourishment.

Sources said Minfal is already working on introducing its first ever agri-business policy funded by the Asian Development Bank and for the purpose, a survey has been carried out through agri-business development and diversification project all over the country, including Fata, Fana and AJK to identify the problems the private sector is facing and to find out their solution aimed at alleviating poverty especially in the rural areas.

All the relevant stakeholders, including farmers, traders, small and medium entrepreneurs, researchers, extension workers, policy-makers and experts of agriculture sector are being involved in the project as the agricultural sector has the potential to be a source of economic growth and income generation, they maintained.

They said the agriculture sector would be revolutionised through enhancing investment in agriculture, technology interventions and policy support. High value crops and value addition processes are mainly under focus to make the agriculture a profitable profession and business in addition to making investment in rehabilitating other production factors such as water, agriculture credit, fertiliser and pesticides for improving crop productivity. Livestock sub-sector is also being strengthened and facilitated especially by involving the private sector.

Sources said that steps are also being taken to reduce poverty through macroeconomic adjustments to foster economic growth, improve governance and initiate reforms in key sectors, including human resource and rural development for accelerating the pace of development of the agriculture sector and betterment of the poor living in the rural areas.

The government has funded various projects this year for adoption of efficient agricultural technologies in all the four provinces to increase agricultural productivity, water management, livestock promotion, horticulture development, quality assessment, and agri-business interventions in a bid to overcome the nuisance of poverty, they added.

Business Recorder [Pakistan's First Financial Daily]

 

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LSM registered growth of 6.26pc during July ​

Wednesday, October 10, 2007

ISLAMABAD: Large Scale Manufacturing (LSM) industries grew by 6.26 per cent during the first month July of the fiscal year 2007-08 over the corresponding month of the last fiscal 2006-07.

The Federal Bureau of Statistics (FBS) provisional Quantum Index Numbers (QIM) of LSM Industries released here for the period of July, revealed that the eleven Petroleum products witnessed a growth of 11.15 per cent and the data compiled by Ministry of Industries for 35 manufacturing goods showed a growth of 5.4 per cent.

54 LSM industries data compiled by FBS also witnessed growth of 6.73 per cent, thus, the overall growth of 100 recorded LSM industries remained at 6.26 per cent during the month under review.

Production of the petroleum products increased by 11.1 per cent in July 2007 as against the same month of the 2006. The manufacturing of steel products and cement grew by 32.2 per cent and 21.6 per cent during the period under review.

On the other hand tractors, trucks and jeeps cars, television sets and bicycles manufacturing declined by 13.5 per cent, 15.3 per cent and 4.6 per cent, 9.84 per cent and 8.69 per cent respectively during the first month of the current financial year over the corresponding period of the last fiscal year.

During July 2007, cotton yarn production witnesses growth of 3.71 per cent, cigarette 0.77 per cent, phosphorus fertilizers 24.6 per cent, nitrate fertilizers 7.27 per cent, caustic soda 20 per cent, soda ash 16.86 per cent while the production of cotton cloth and paper and board production declined by 3.68 per cent and 6.83 per cent respectively.

Besides, vegetable ghee production declined by 3.35 per cent, tea blended 2.36 per cent, sole leather 10 per cent, diesel engines 8.19 per cent, electric bulbs 13.6 per cent and electric tubes 25 per cent and electric meters manufacturing declined by 26.5 per cent over the same month of the last fiscal. Beverages production goes up by 89.4 per cent, tablets 24.4 per cent, capsules 27 per cent, injections 72 per cent, cycle tubes 8.37 per cent, motor tyres 8.67 per cent, motor tubes 31.75 per cent, wheat thresher 530 per cent, power looms 54 per cent, sewing machines 9.9 per cent, refrigerators 11.2 per cent, deep freezers 27.3 per cent, electric fans 23.5 per cent and electric transformers production up 11 per cent during July 2007 over July 2006.

LSM registered growth of 6.26pc during July

 

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Govt collects Rs350bn through privatisation ​

Gas production increased by 188mmfcd in three years

Wednesday, October 10, 2007

ISLAMABAD: Around Rs 350 billion have been collected through 20 privatization transactions during the last three years.

This was 72 per cent of the total amount (Rs475 billion) realized from privatization since the Privatization Commission was set up around 16 years ago.

In December 2006, 9.5 shares of OGDCL were divested through an international offering of global depository shares.

According to data available with APP, as the economic fundamentals have been set right, Pakistan has become one of the most attractive investment destination. There are 48 bilateral investment treaties which are now becoming part of Free Trade Agreements (FTAs).

The objective of the present government is to promote domestic and foreign investment and has also created an enabling environment, which is conducive to the participation of the private sector in sharing efforts for catering to the energy needs of the country.

Currently out of 20 million households, 5 million are connected with natural gas network and approximately 1.8 million are using LPG.

Production of gas during the last three years has increased by 188 MMCFD, which is equivalent to about 1.64 million metric tons of furnace oil per year worth $0.59 billion on an average price of $360/metric ton.

A number of reforms in the oil sector have been initiated during the last three years and criteria for setting up of new oil marketing companies have been approved.

In order to implement the National Sanitation Policy, strategy and action plans are under preparation in consultation with all stakeholders including the provincial governments, district governments and the private sector.

The National Energy Conservation Policy enumerates broad guidelines to enhance end-use efficiency in various energy consuming sectors of the economy.

Furthermore, in communication sector a lot has also been achieved during the last years. The strategic framework for the National Trade Corridor Implementation Programme (NTCIP) has been developed based on a holistic and integrated approach.

Due to effective vigilance National Highway & Motorway Police have been able to recover a number of stolen or hijacked vehicles, illegal sophisticated or lethal weapons, narcotics and drugs. Their presence and timely action foiled 54 decoities and 467 culprits were arrested.

The National Highway Authority completed projects having a total length of 1,462 km at a cost of Rs35.291 billion during the last three years.

Work on railway track rehabilitation, doubling to track from Lodhran to Khanewal and onwards to Raiwind, procurement of 144 locos, 775 passenger coaches and 2300 high capacity wagons continued with further acceleration during the period.

Gwadar Port was inaugurated on March 20 this year and the Port of Singapore Authority has been entrusted with its operations.

The total fixed and mobile phone tele-density has crossed 45 per cent in the country with further increase in this sector is envisioned.

Govt collects Rs350bn through privatisation

 

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Shift in investment policy sought ​

Economists call for focus on export-oriented industries

Wednesday, October 10, 2007

LAHORE: Economists have urged the government to make a paradigm shift in its investment policy in order to attract investment into export-oriented industries instead of encouraging investors who produce goods for domestic consumption only.

They pointed out that the policy of allowing investment and then protecting the production through protective duties had proved counter-productive. They said local industries were unable to compete globally in all those items for which foreign investors had installed small units in Pakistan, which were sufficient to cater to domestic demand.

The production cost of these units, they added, was high due to lower production capacities and the products could not compete globally. However, they have found domestic markets as the government has slapped 15 to 50 per cent protective duties on their production. This impacts the competitiveness of those local industries which buy their products for use in manufacturing. The protection also hurts consumers who pay higher than global prices.

Another adverse impact of this policy, according to the economic experts, is that foreign investors make huge profits on their production which are repatriated to their headquarters abroad.

They said the local textile industry was suffering due to the protection given to PTA produced by ICI. Though global use of blended textiles has reached 50 per cent cotton and 50 per cent manmade fibre (polyester), the ratio in Pakistan is 25 per cent fibre and 75 per cent cotton. It is extremely difficult for the local manufacturers to export blended fabric or yarn due to higher cost.

The car manufacturers have kept vehicle prices much above the global levels due to this protection. They are making huge profits which are being transferred to their home countries.

Soda ash and plastic polymer manufacturers, enjoying similar duty protection, have kept glass and plastic manufacturers from the world market.

Ironically, none of the protected investors are exporting their products as they either make more profits by selling them locally or are not competitive in the global market due to low production capacity which increases the production cost.

They warned that if the present investment trend continued Pakistan would face a huge outflow of foreign exchange in the form of profits.

Leading industrialist Tariq Saigol in fact questioned the wisdom of allowing fast-food outlets, which “neither create much jobs or investments but take away foreign reserves when profits are sent abroad.”

This year, the outflow of foreign exchange is expected to cross $1 billion compared to only around $200 million four years ago.

All economists advised the government to make the country a manufacturing hub for exports to Central Asia and the Middle East. They said the government might give unlimited tax concessions to the investors provided they exported 60 per cent of their produce.

Indians do not allow investment until a phased plan of exports is presented to the government which the country ensures will be fully implemented.

Auto-vendor Almas Hyder said anything which could be exported would be globally competitive, adding the manufacturers would need no protection and the local consumers would not be unduly taxed.

Small foreign investors are currently investing in Pakistan just to benefit from the high domestic consumption-based economy. If the present trend continued, outflows would match home remittances, Hyder added.

Shift in investment policy sought

 

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Cotton export surges by 47% in July-Sept​

KARACHI: Cotton export from Pakistan has surged by 47 percent in July-September 2007 as compared to the same period last year, the exporters said on Tuesday.

“In the international market, Pakistani cotton is getting more attraction due to higher quality from the traditional and non-traditional cotton importing countries”, a senior trader Ghulam Rabbani said.

During July-September 2007, Pakistan registered an export figure of 4,788 metric tonnes against 2,936 metric tonnes in July-September 2006.

Mr Rabbani said “another shipment of lint from fresh crop is ready after Eid-al-Fitar to Far East, as we have already completed two shipments of the cotton season 2007-08 some week ago”.

He said the international lint buyers consider Pakistan cotton number one in quality as well as on competitive rates in the international market besides it is the only new harvest in the international market available.

He said our nearest competitor, the Indian cotton merchants are offering a bit higher price while their quality does not confirm to the demand of international buyers. He said still the rates in domestic market are cheaper as compared to the prices in other international markets in the world as Indian type J-34 offered at 65-66 cents per pound which accumulated to around Rs 3,225 per maund.

He said, “a sizeable export will not affect the domestic market’s requirements as the country’s import of PIMA grade (US) and other qualities cotton are still a regular feature, as we are already facing a shortfall of around 3 million bales”.

Indian cotton exports are expected to continue to expand to over one million tonnes, making India the second largest cotton exporting country, the ICAC said.

The ICAC forecast a season-average Cotlook A index of 71.00 cents per pound in 2007-08, 12 cents higher than in 2006-07, because of an expected significant decrease in the 2007-08 stocks-to-mill use ratio.

The ICAC issued the world supply and demand estimate for October 1 for 06-07-world production. It rose to 119 million bales from 118 million bales in September. World consumption was also lowered to 120 million bales down one million bales from a month earlier.

Daily Times - Leading News Resource of Pakistan

 

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Exploration and production sector : Higher oil prices to boost Q1 FY08 profits​

KARACHI: Higher international oil prices since the beginning of current fiscal year have revived investors’ confidence in the exploration and production (E&P) stocks after its lacklustre performance in last fiscal year 2007, analysts said.

During the first three months (July-September) of the current fiscal year, the average Arab Light crude price stood at $70.6 per barrel against $67.0 per barrel in the first quarter of last fiscal year, depicting a year-on-year growth of 5.4 percent.

These higher oil prices could significantly contribute towards the top line of the E&P companies, especially Pakistan Oilfield Limited (POL) and Oil and Gas Development Companies Limited (OGDCL), which have significantly higher percentage of oil in their production portfolio compared to Pakistan Petroleum Limited (PPL), which receives 8-10 percent of its revenues from oil production.

Coupled with higher oil prices, significant increased oil and gas production of OGDCL during the first quarter of FY08 would lead to approximately 12 percent growth in the top line of the company against the same period last year. This growth in oil and gas production is mainly led by increased production from Mela, Tando Alam and Chanda fields. However, it is expected that exploration expenses of the company will remain higher on the back of its aggressive exploration activities, said analyst Umer bin Ayaz of JS Capital Research.

At present, the company is in process of drilling approximately 9 exploratory and 10 development wells. Nevertheless, most of these wells are part of previous year’s drilling program, he added. Moreover, it is also expected the amortisation charges of the company to stay on a higher side due to relatively higher number of successful wells last year. This would weigh down the growth in the bottom line of the company, despite a healthy growth in the revenues.

The company drilled the highest number of wells (41 wells) last year, out of which it came up with 10 discoveries. PPL is the least affected among E&P companies when it comes to oil price variation, due to company’s higher concentration on gas rather than oil. During the first three month of the current fiscal, PPL is expected to post combined oil and gas production growth of 3.8 percent compared to the corresponding period last year. For Q1 FY08, we expect the company to post net revenues of Rs10.6 billion versus Rs8.8 billion versus 1QFY07. The rise in the top line of PPL is mainly due to increased oil and gas production and also due to reduction in discounts of Sui and Kandhkot fields’ pricing. POL’s EPS could stand at Rs 9.5 per share. POL is expected to post net revenues of Rs 4.1 billion in Q1 FY08 against Rs 4.6 billion in the corresponding period last year, depicting a decline of 10.8 percent.
Daily Times - Leading News Resource of Pakistan

 

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Pakistan's Rural IT Centers Connected Via EDGE Networks​

Telenor Pakistan says that it has launched Telenor Rabta Centers as part of a pilot project involving local communities. These community information centers offer all modern communication facilities under one roof, and use Telenor Pakistan's EDGE network for connectivity. Each center is equipped with two PCs with EDGE data card to connect to the Internet, a printer, scanner, webcam, and a handset with Telenor Pakistan connection.

Commenting on the aims of the project, CMO Telenor Pakistan Sigvart Voss Eriksen said, "We want to establish an easy-to-access point for these communities in order for them to benefit from e-mail, scanning, faxing and printing facilities in their everyday lives. With Information & Communications Technologies (ICTs) becoming an ever-increasing part of our living, there is need for such facilities to be made available in Pakistan's rural and semi-rural areas too. It is well known that efficiency and productivity of a population increases with easy access to ICTs, thus contributing to their well-being and prosperity. Telenor Pakistan with its largest EDGE network will make it possible for these rural communities to connect to the internet, download content, and send and receive data, including digital images, web pages and photos up to four times faster than GPRS. "

The GSMA Development Fund is providing support in project management and facilitation activities for the pilot implementation. This includes working with Telenor Pakistan to develop the business model, secure funding and ongoing project management.

Telenor Rabta Center customers will be able to use the following services: E-mailing, Internet searching, Video Conferencing, Printing, Document Composing, Scanning, CD burning, Faxing, Photocopying, Downloading different forms, EasyLoad, make mobile phone calls, and use a number of other Telenor Pakistan value-added services.

Telenor Pakistan will monitor the performance of the Rabta centers and will decide on expanding the project after a comprehensive evaluation.

Pakistan's Rural IT Centers Connected Via EDGE Networks

 

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Special zones to help promote industries​

ISLAMABAD, Oct 9: Prime Minister Shaukat Aziz said on Tuesday that the establishment of Special Economic Zones (SEZs) would help promote industrialisation, enhance Pakistan’s competitiveness, generate employment and reduce poverty in the country. Chairing a meeting on the establishment of SEZs here, the premier said there was a need to develop quality SEZs in the country, and asked the officials to prepare proposals to help create competitiveness, uniqueness and give the country a comparative advantage over the other countries in the region.

He said: “Our strategic location, well-equipped ports and skilled manpower can be exploited to our advantage.”

He said: “We have to develop a hassle-free environment which should be conducive to attract both local and foreign investment.”

Mr Aziz said: “We have to look into pros and cons of the already existing schemes and share experiences, like Export Promotion Zones (EPZ), and accordingly incorporate recommendations for formulation of a policy for establishing SEZs.”

Besides policy, there is a need to encourage private sector to come forward and invest in these zones. The participation and involvement of the provincial government, specifically in sharing the incentives for investors, would give a boost to SEZs, he added.

“We have to develop a model by looking into the success drivers of other countries, which are also compatible to our needs and supported by credible ideas incorporated in the policy, he added.

The meeting reviewed the institutional framework of SEZs, international benchmarking of similar ventures, the regulatory aspect and the proposed action plan for the development of SEZs in Pakistan.

He said it is incumbent upon the government to ensure that all basic facilities to investors are available in order to attract private sector whose participation is essential for success of SEZs.

He said establishment of quality SEZs is critical to attract investment and the government must ensure that investors get all possible assistance through one window facility.

The meeting was informed that in order to create an institutional framework, there is a need to increase coordination, consolidate authority and ensure that zones are efficiently planned for SEZs development.

The meeting was further apprised that in order to increase the investors’ confidence, there is need to incorporate additional incentives within the policy.

Special zones to help promote industries -DAWN - Business; October 10, 2007