Pakistan Economy - News & Updates - Archive

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Sindh seeks 3,500 acres for new industrial zones​

KARACHI: The provincial government has demanded that the federal government allocate 3,500 acres more land to set up new industrial zones in the province Sindh, said Minister for Labour, Transport, Industries and Commerce Adil Siddiqui Wednesday. In a statement, Siddiqui said that due to huge investments and growing industrial work, Sindh was facing a shortage of industrial land. He added that local and foreign investors and traders had invested billions of rupees in different projects in province, especially in Karachi due to the current government’s trade-friendly policies.

Asia’s largest industrial zone at Nooriabad is thriving, he said, thanks to improvements in law and order in the area and the development of infrastructure in industrial areas. Siddiqui also said that water would be available at 34 paisas per gallon in SITE area after the installment of a new desalination plant, adding that a new multinational chain of stores is expected to open operations in Sindh soon. He also said the construction of new hotels, offices and residential projects are expected in the province.

Daily Times - Leading News Resource of Pakistan

 

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US and Pakistan drawing framework to expand trade ties ​

WASHINGTON (October 25 2007): United States and Pakistan are drawing a framework to consolidate ties through enhanced private sector interaction and investment, as both view economic links as critical to sustaining wide-ranging ties over long-term.

Visiting adviser to prime minister Dr Salman Shah, who had strategic economic dialogue with senior US officials from Departments of State, Commerce, Treasury & Trade, spoke of "very good progress, which expanded to focus beyond government-to-government cooperation on greater involvement of private sectors.

"There is realisation our strategic relationship be underpinned by economic cooperation with focus on bolstering private sector cooperation and achieving higher level of American business investment into Pakistan."

Both countries entered strategic partnership in March 2006 after talks between President Pervez Musharraf and President George W Bush in Islamabad. Economic cooperation is important component of overall strategic relationship.

In addition to five-year $3 billion US assistance package for Pakistan, two allies have also seen upsurge in investment, trade ties. US was largest investor in fiscal 2006-07. US is one of largest trading partners of Pakistan, which in wake of a spectacular growth momentum, rated by global financial institutions to move forward as emerging economy having large talented workforce.

For next many decades, 100 million population of Pakistan aged under-25, will be entering market and if they are gainfully employed, it will be huge boost for economy to grow at 8-10 percent. It is important Pakistan is developed as manufacturing, outsourcing hub and must be viewed as fast-emerging economy with unique demographic profile."

Citing a Goldman and Sachs study, Dr Shah said Pakistan will be fourth or fifth biggest labour force in the world and in words of an American investor South Asian country would also be second biggest English speaking workforce outside the US.

The two sides also discussed progress toward materialising a preferential trade programme under which products manufactured at designated zones will be brought duty-free to US market.

The goods will be produced in exclusive areas Reconstruction Opportunity Zones, to be set up NWFP province, Balochistan border regions, Federally Administered Tribal Areas & quake-hit areas of Azad Jammu & Kashmir.

It will spur economic fundamentals, bring employment to local people, industrial parks will attract lot of investment. US Congress is expected to take up legislation on the initiative soon. US committed $750 million over five years to Fata sustainable development plan. Pakistan will spend $100 million each year for 10 years under $2 billion programme, to bring socio-economic development to people along Afghan border.

http://www.brecorder.com/index.php?id=643780&currPageNo=2&query=&search=&term=&supDate=

 

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US wants Pakistan economically sound, strong country: envoy ​

KARACHI (October 25 2007): United State's Ambassador to Pakistan, Anne W. Petterson, terming Pakistan as an important ally of US has said that it wanted Pakistan to be economically strong and sound country. Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI) she reiterated US resolve to develop strong and long-term economic relations with Pakistan.

She said that US was supporting Pakistan in development of Economic Zones (ROZS). "This project will boost economic activities, free trading of goods produced in the zones and create more jobs", she added. US envoy assured that US would continue to provide assistance for improvement of education sector in Pakistan

N.W. Peterson said that US and Pakistan had best cordial and economic relations, adding US was the biggest trading and economic partner of Pakistan. She said that Americans had made huge investment in oil and gas sectors, telecommunication and power development in Pakistan.

Regarding improving living standards of people in Northern Areas, she said that the US had increased its finical assistance from $30 million to $90 million. She said that US government was making efforts to improve Pakistan image in America.

Regarding the law and order situation in Pakistan, she opined that the law and order situation in Pakistan was not so bad as projected by media. Giving example of Colombia and Guatemala and other countries, she said that law and order in many countries were worst than Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

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Current account deficit falls to $2.2bn in Q1 ​

Monthly average still higher than first quarter of 2006-07

Friday, October 26, 2007
By Israr Khan

ISLAMABAD: Pakistan’s current account deficit (CAD), excluding official transfers, during first quarter (July-September 2007-08) has reached $2.257 billion lower than $2.8 billion during the same period last fiscal, State Bank of Pakistan (SBP) reported Thursday.

Though less than comparable period, the CAD monthly average of $752.3 million during the first quarter is far higher than monthly average of $633.2 million during Q1 of 2006-07.

The rise in monthly average is further exacerbated by around 11 percent fall in inflow of foreign investment which is an important component of non-debt creating inflows to finance the burgeoning CAD.

Some respite is provided by 21 percent rise in inflow of remittances during the quarter otherwise, the CAD would have been far higher. The trade imbalance at $3.98 billion in the quarter is also lower than $4.16 billion in the comparable quarter last year. However, slower pace of imports’ growth is an indication of slowdown in economic activity and this is supported by negligible growth in exports as well.

The indifferent attitude of policy makers to review the gloomy situation at external front is adding to the economic woes of Pakistan on external front. Rising foreign exchange reserves provide some satisfaction to the policy makers; however, wisdom of adding reserves through external borrowing has given rise to many questions.

The disbursement of external loans amounted to $785 million in the quarter against $451 million in the comparable quarter of last year, thereby reflecting an increase of 74 percent. Last year Pakistan has added almost $3 billion to the external debt stock. This has serious implications for debt servicing. The objectivity and prudence is badly missing in debt management strategy of the country.

It is also pertinent to note that during July-September 2007-08; the foreign investors have remitted to their countries $183 million as profits and dividends. This outflow is higher by 31.7 percent over $139 million remitted in the same period of the last fiscal.

Likewise in the first two months (July-August) the outflow was $132 million, with biggest share of financial businesses from which the investors remitted to their countries about $40.8 million followed by communication sector with more than $32 million.

Economic analysts believe that burgeoning CAD would be aggravated by massive outflow of profits and remittances in the near future. There are instances in developing countries where FDI inflows are indiscriminately welcome. The outcome of these inflows is normally outflow of remittances and profits in future after a time lag. Recently, IMF has warned Pakistan about quality of inflows and advised Pakistan to be cautious about these inflows.

It is worth mentioning that for a country like Pakistan , the huge drain looks very disturbing as it already faces a potential threat of burgeoning CAD for the last couple of years.

Interestingly, foreign investors find Pakistan an attractive destination, as they are allowed to invest in any sector and bid for any privatised enterprise, can own 100 per cent of the capital or have foreign and local partners. Besides, there is no embargo on repatriation of profits and dividends. They can repatriate 100 percent of the capital anytime and remit their total profits to their countries of origin.

However, independent economists questions about job creation ability and augmentation of existing technological know-how of current flow of FDI inflows. Pakistan’s portfolio of FDI needs diversification, especially in favour of investment in production sectors.

In the current situation around three-fourth of FDI inflows are concentrated into four major sectors; namely, communication, financial businesses, power and oil & gas exploration. All these sectors have serious implications for future outflow stream of profits and dividends.

If an investment is coming for a manufacturing unit, it will create jobs, increase production and augment exports, and if FDI inflows are directed towards a service unit; it has limited options like mobile telephones, which have to be imported in large numbers along with the supportive equipment.

The current inflow of FDI inflows is unable to provide support for export promotion or serve the cause of import substitution. Pakistan needs more emphasis on export promotion and some help from import substitution so that our import bill can be reduced.

Financial businesses, a magnet for foreign investors, but unfortunately it also just like communication sector that creates not sizeable jobs or help in increasing country’s exports. But, repatriation of profits from the sector is on the top of the list with 40 million dollars in two months. The sector sent only $4.8 million abroad during the same period last year.

Outflow in terms of profit and dividend during the July-August, 2007-08 from power sector were recorded at $12 million. Other sectors i.e. Food sector ($10.7 million), transport sector ($9.1 million), oil and gas exploration $7.7 million, tobacco and cigarette $5.4 million, storage facilities $3.1 million and pharmaceuticals $1.2 million contributed to this outflow.

Current account deficit falls to $2.2bn in Q1

 

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Foreign investment declines 10.8pc ​

Friday, October 26, 2007

KARACHI: The net inflow of foreign investment in Pakistan declined by 10.8 percent to $990.1 million during first three months of current financial year as compared to $1.109 billion in the same period of last fiscal year.

The latest figures of SBP showed that during July -September 2007 Foreign Private Investment declined by 11 percent to $1.020 billion, which was recorded $1.146 billion in the corresponding period of last year.

Whereas, Foreign Direct Investment fell by 6.2 percent to $962.5 million as compared to $1.026 billion of last year. Out of total FDI the privatisation proceeds were $133.2 million.

During aforesaid period the Portfolio Investment fell by 52.2 percent to $57.6 million, which stood $120.6 million during the same period of last fiscal.

The investment in equity securities was 120.6 million while in GDRs of UBL Bank was $90.5 million.

In addition, the Foreign Public Investment (FPI) also declined by 18.9 percent to $30 million as compared to $37 million which was comprised over Debt Securities including net sale/ purchase of special US$ bonds FEBC, DBC, T-bills and PIBs.

During July- September Foreign Direct Investment (FDI) from developed countries recorded $570.4 million against $796.1 million of last year.

The break-up showed that investment from Western Europe recorded $175m, from European Union $135.2m as against $499.5m of last year, investment from Luxembourg stood $1.9m, Denmark $6.2m, investment from France fell to $0.8m from $2.5m, Germany $8.4 from $8.9, Netherland $23.5m from $30.3m and investment from UK dropped to $97.8m which was recorded $433.6m in the same period of last year. However, investment from USA increased to $377.5m from $262.3m. Moreover investment from developing countries stood $187.3million as against $$265. 5m of last year. Investment from Saudi Arabia increased to $8.1m as compared to $5m. Investment from Oman recorded $24.8m as against $0.6m of last year and from Kuwait it stood to $13.6m as compared to 2.6m of last year. Though investment from UAE declined but it remained top among Gulf States with $70.1m as compared to $187.6m.

Foreign investment declines 10.8pc

 

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Trans-LoC trade from next year ​

Friday, October 26, 2007

MIRPUR: Stating that entire ground work was done by the governments of India and Pakistan for starting trade between Srinagar and Muzaffarabad, Indian union minister of state for commerce Jairam Ramesh has disclosed that trans-LoC trade would become a reality in the first half of the next year, says a report reaching here from across the Line of Control.

He also announced that a special institute would be set up in occupied Srinagar to impart training to artisans in gems and jewelry, the report added.

Answering a question at a press conference in occupied Srinagar the other day, the minister said India and Pakistan have exchanged the lists of items, the trade of which would be allowed across the LoC, the report said.

“Three separate lists were prepared by the Pakistan government, the occupied J & K government and the Indian government, which were later exchanged by the governments of India and Pakistan, based on these three lists, the final selection has been made by the parties concerned”, the minister said.

He added that 14 items were offered from which the government of Pakistan accepted trade in nine items and it rejected trade the in rest of the five items. “But the nine items which the Pakistan government has accepted are what the J & K traders wanted. So I believe it is a good beginning and we are pretty hopeful that trade would start between the two parts in the first half of the next year,” Jairam said.

The Indian minister said the external affairs ministry has sent the final list back to the Pakistan government. “We are now waiting for the response of the Pakistan government,” he said.

The items which the government on the other side has agreed to include are carpets, wall hangings, shawls, embroidery, furniture and wooden items, silk and silk products, spices and flowers, saffron, Kashmiri Wazwan, aromatic and fruit plants, etc.

He also announced that an institute would be set up in J&K to promote training in gems and jewellery. He said 20 youth of the state had already been trained in the job. He said a team of the Leather Export Promotion Council would visit Srinagar to promote leather industry and its export potential.

The minister said the skin available in Kashmir, especially of sheep, was rated high in the world, the report added.

Trans-LoC trade from next year

 

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Marble industry facing problems ​

Friday, October 26, 2007

ISLAMABAD: Marble industry in tribal areas of the North West Frontier Province (NWFP) is facing numerous problems including lack of roads and unreliable electricity supply.

A delegation from Mohmand Agency held a meeting with the Federal Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen and apprised him of the problems of marble industry. Secretary Industries, Production and Special Initiatives Shahab Khawaja and Ihsan Ullah Khan CEO Pakistan Stone Development Company (PSDC) were also present on the occasion. The delegation included Malik Hanif, Malik Noor Hashim and other stakeholders from the agency.

White, green, and red & white marble of the agency is very popular all over the world and is exported to Afghanistan and Karachi and from there to other countries. There are huge deposits of marble in these agencies and so far only 10 per cent of it has been explored. Hence extensive exploration is needed to fully utilise the potential. It is worth mentioning that the government is already planning to setup a Marble City in the agency at some 300 acres with modern infrastructure.

The delegation told the minister that there were 65 marble units in the area but no facilities were provided to them. Tareen assured the delegation that government would help in setting up another Marble City under public-private partnership arrangement.

Marble industry facing problems

 

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Govt keen to develop agriculture sector ​

Friday, October 26, 2007

ISLAMABAD: Government is striving to improve and develop the agriculture sector through enhancing investment, ensuring technology interventions and policy support, which will enhance production and farm income by providing a congenial environment in rural areas.

Federal Minister for Food, Agriculture and Livestock, Sikandar Hayat Khan Bosan stated this while chairing a World Food Day programme organised jointly by the Ministry of Food, Agriculture and Livestock (MINFAL), National Agriculture Research Centre (NARC) and Food & Agriculture Organisation of United Nations (FAO) on Thursday.

He said the government was spending a huge amount on allied activities in the agriculture sector such as watercourses, agri-credit, fertilisers and pesticides for improving crop productivity to alleviate poverty and to ensure food security through macroeconomic adjustments.

The minister said the government was making concrete efforts to improve investment climate, reduce vulnerability and internal and external shocks to the economy in order to ensure prosperity and welfare of the people.

Bosan stressed the need of adopting modern technologies to enhance crop productivity, water management and livestock promotion and horticulture development. He added that the government has funded a number of such projects in all the four provinces.

He informed the audience that the ministry has increased investment in agri-sector during the last six years from Rs290 million to Rs15,800 million in 2007-08.

The minister appreciated the role of WFO in spreading awareness of food safety and security across the world.

On this occasion, Secretary MINFAL Zia-ul-Rehman said that the agriculture sector was the largest segment of the world economy and a source of livelihood for more than half of the world population.

“Pakistan has been a major beneficiary of FAO’s support and technical assistance. We see FAO as a partner in agriculture in Pakistan and value this organisation as the apex organisation in the field of agriculture,” the secretary added.

Later, the minister distributed awards and cash prizes among scientists and students who won essay writing competition organised on the occasion.

Dr Ahsan-ul-Haq, a scientist, was awarded Norman Borlaug award for his research and development of hybrid cotton and pulses seeds.

Govt keen to develop agriculture sector

 

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Concern over growing trade gap ​

Friday, October 26, 2007

KARACHI: FPCCI Acting President Qamar Zaman Gill has expressed concern over the growing trade deficit during the first quarter (JulyñSept) of the current fiscal year, which amounted to $3.6 billion, 13.53 per cent higher than $3.17 billion last year. He said that the figures released by the Federal Bureau of Statistics (FBS) were alarming as during the first quarter of this fiscal year, the exports fetched $4.456 billion while imports cost $8.06 billion against $4.25 billion exports and $7.42 billion imports in the same period of last year. The data shows that during the period under review, Pakistan’s economy made 8.51 per cent more imports than last year, while exports rose only by 4.77 per cent. Gill said that each month import growth exceeded export, resulting in a widening trade gap. He said that the government had targeted imports at $28 billion and exports at $18.6 billion with trade deficit of $9.4 billion, but at the end of the year the gap rose above the target to reach $13.53 billion.

He added Pakistan had also missed its export target by a wide margin of $1.59 billion and breached the import target by $2.54 billion, which would continue to grow if remedial measures were not taken.

Concern over growing trade gap

 

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1,135 new companies enrolled in third quarter​

ISLAMABAD, Oct 25: The Securities and Exchange Commission of Pakistan (SECP) registered 1,135 companies during the third quarter of the current calendar year.

With the new registrations, the total number of registered companies with the SECP as on September 30, 2007 reached to 50,1250, official figures released here on Thursday showed.

The total new registrations included 1,106 companies limited by shares comprising of 23 public unlisted companies, 1,053 private companies and 30 single member companies. The other entities were 15 foreign companies, 13 associations not for profit and one company limited by guarantee.

Total authorised capital and paid-up capital of the companies limited by shares amounted to Rs7.06bn and Rs1.23bn, respectively.

The Company Registration Office (CRO) Lahore enrolled 370 companies, CRO Karachi 335 companies and CRO Islamabad registered 220 companies. The CRO Peshawar, Multan, Faisalabad, Quetta and Sukkur registered 72, 61, 43, 32 and two companies, respectively.

The 193 companies, the highest number, were registered in the tourism sector followed by 138 in services, 135 in trading, 70 in Information Technology, 54 in real estate development sector, 50 each in construction and communication and 48 in textile sector.

1,135 new companies enrolled in third quarter -DAWN - Business; October 26, 2007

 

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Work on second phase of Gwadar port to begin by year-end​

ISLAMABAD, Oct 25: The second phase of Gwadar deep seaport construction is expected to be started before the year-end by the Singapore Port Authority (SPA) for which it is lining up new investment in the country.

“The government has taken a decision to allow the SPA to undertake the mighty second phase of the Gwadar Port preferably within this year,” Director General of Gwadar Development Authority (GDA) Ahmad Buksh Lehri told Dawn on Thursday.

He said that Phase-1 had cost $298 million and the SPA, the operator of the port which had been given a lease for a long period of time to run it efficiently, was currently working out its investment plan for the second phase.

The government, Mr Lehri said, had given to the SPA 16 acres of land which included a tax-free zone.

Answering a question, the GDA chief said that the SPA had successfully overcome initial problems and that the port was likely to be fully operational in December with three berths handling the ships. However, to handle big ships more berths would be required, he added.

He said that the SPA was being provided all the necessary equipment including cranes and buildings.

“New equipment, provided by the government, is also being installed by the SPA,” Mr Lehri said.

In reply to a question, he said that there was no law and order problem in Gwadar. However, he said that the Coastal Highway, which was damaged by the recent floods, should be repaired on a priority basis.

More warehouses and other equipment were also needed to enhance country’s foreign trade, he added.

Earlier, the Singapore-based operators were told to expedite the work especially after having received a 40-year tax holiday despite the concern expressed by other investors and the World Bank and Asian Development Bank (ADB).

The GDA director general said since the government had already been extending tax exemptions and tax holidays in various industrial and duty-free economic zones, the SPA was also offered a tax holiday.

He said export processing zones were also enjoying certain tax holidays and exemptions and there was nothing exceptional in the case of SPA, which was investing $550 million.

The Gwadar port located in Balochistan is being considered a future trading hub in the region because of being so close to the Gulf region.

Initially, it is expected to face competition from the Iranian port of Salalah, but after the completion of Phase-2 by 2010 at a cost of $840 million, it is likely to become one of the busiest ports in the region. It will provide warehousing, transhipment and industrial facilities for trade with over 20 countries including the Gulf countries, Iran, Central Asian states, India, China and East Africa.

The government has also planned some other concessions for the proposed Export Processing Zone (EPZ) to be located near the Gwadar port for local and foreign investors. There will be customs, sales tax and excise duty exemptions in the EPZ to promote substantial investment in Gwadar.

A number of foreign investors have shown interest in establishing mega refineries, building storage capacity and undertaking other businesses in Gwadar to help expedite the process of industrialisation in Balochistan.

Land for the new international airport has been acquired after giving due payments to the landowners. The government is said to have released about Rs4 billion for acquiring land for the proposed oil city. Prices of land in Gwadar have gone up.

With the completion of Gwadar port, a special industrial development zone, about 30km off the port, will also be set up on 4,000 hectares.

The federal government has also provided Rs700 million to Balochistan to meet water demand of the Gwadar Industrial Estate (GIE) for 15 years by installing a foreign-assembled desalination plant.

The water demand will be met partly by recycling the waste water (irrigation and industrial cooling) and partly by the desalination plant as there is no water resource available in the area.

The Balochistan government has provided 3,000 acres of land, of which 20 acres will be made available for free through the GIE to set up water desalination plant, intake work, storage tanks and other facilities.

There will be approximately 2,000 industrial units in the GIE creating 30,000 jobs. Most of the production will be export-oriented.

Work on second phase of Gwadar port to begin by year-end -DAWN - Top Stories; October 26, 2007

 

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Ufone still the 2nd largest operator in Pakistan​

KARACHI: Ufone, with 15.421 million subscribers, still holds the second position among all the cellular operators in Pakistan. The Pakistan Telecommunication Authority (PTA) has updated the new subscriber data on its official website quoting that the total subscribers of Ufone are higher than that of Telenor. Therefore Telenor still occupies the third position with 12.578 million subscribers. Earlier, a PTA official had mistakenly released wrong figures, which the Daily Times carried in its October 25 issue. Taking cognisance of the issue, a PTA official informed Daily Times of the error in compiling the figures and corrected the data on its website on Thursday. According to the data being displayed on the telecom watchdog’s website, Mobilink is still holds the number one position and Ufone enjoys the second place.

Daily Times - Leading News Resource of Pakistan

 

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Cement export to India below 6%​

* Most Indian importers want Hindi scripts on packaging

LAHORE: The cement export to India is very low as compared with other countries and stands at only six percent of the total cement export of the country, industry sources told Daily Times said on Thursday.

The industry is facing different types of problems in exporting this commodity, including packaging problems and different objections from the Indian importers, they said.

The cement export to India would remain low till December and at the start of next year the exports might improve gradually, they added.

The cement industry in the month of September exported around 550,000 tonnes of cement to different countries including Afghanistan, African and Gulf countries and India. While the cement export of India remained at only 11,500 tonnes or two percent in September, sources said, adding that the situation improved a bit in October but is still lower than expectations. Pakistan exported 340,000 tonnes of cement to different countries in October and managed to export only 20,000 tonnes or less than six percent to India in the same month, said Muhammad Shahzad spokesman of All Pakistan Cement Manufacturers Association (APCMA).

He said the production of cement is very much high but the transportation and packaging problems are hindering the exports.

“Exports could only be enhanced if transportation is done through road instead of rail or other means. The road transportation is cheaper and carry more stocks, thus increasing the export and decreasing the cost,” he said, adding that the Indian importers are also making different kinds of demands including writing of Hindi manuscripts on the packaging bags.

“Some of the Indian importers say that they want bags with Hindi written on it while some importers are not asking for it, which is also causing problems for the cement manufacturers,” he said, adding that the export to India would improve in January, as the problem of packaging would also be overcome by the industry during that time.

“Every industry faces such problems in early time but such troubles are settled with the passage of time.”

Around two companies are supplying plastic bags to the cement industry for packing the commodity while their capacity is around 16 million bags, each of 50-kilogramme. However, the industry requires more than 28 million bags, which means still 12 million bags are short. Earlier, the manufacturers were facing shortage of bags but now they are asked to pack the commodity in Hindi written bags, which is affecting the exports. Currently, cement companies are packing cement in a 50-kilogramme bag consisting of paper or plastic. Most of the companies prefer paper bag to supply cement in local market, as it is cheaper and easily available while the plastic bags are costly as well as short in supply. A paper bag costs around Rs 6 to Rs 8 while the cost of plastic bag is Rs 12 to Rs 13, said a local cement trader.

APCMA said the packaging bag companies have shown keen interest in increasing the production and would meet the industry’s demands in a couple of months.

Local cement manufacturers are exporting cement to Middle East and African countries and a couple of months back, around a dozen companies have applied for Board of Indian Standards (BIS) certification and more than five cement manufacturers have started exporting cement to India. The number of exporting companies is expected to increase, the APCMA said.

Daily Times - Leading News Resource of Pakistan

 

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German firm eager to start operations in Pakistan​

KARACHI: The Trade Development Authority of Pakistan (TDAP) and a German company have discussed ways for the latter’s entry into the Pakistani market with an array of export finance products to facilitate the country’s exporters under rapid growth strategy.

A two-member delegation of the DF Deutsche Forfaiting AG met the senior officers of export finance services of TDAP here on Thursday.

Mr Ulrich Wipperman, the regional director for Asia of the Cologne-based company told the meeting that their market representative office would be set up and start operations in Lahore by early next year. Through this office the company would be able to test market tailor-made and customised products for Pakistan.

He said that he had received tremendous encouragement during the current visit and he saw great potential for business in Pakistan with its robust and sustained economic growth over the last six years coupled with continued national efforts of a quantum increase in merchandise and services’ exports to reach $100 billion by 2015.

Sajjad Malik, Executive Director, Export Finance Services, TDAP said that DF Deutsche has been encouraged to consider Pakistan as a new high potential market for development.

DF Deutsche will be facilitated by TDAP in introduction of their services to the stakeholders from small traders to large-scale industries and the organisation will assist the German company in maximising its first mover advantages in this emerging and untapped market, he said.

He said that even at a modest percentage of the business by 2015 could mean a forfeiting turnover of over $2 billion from Pakistan. “With this base one could expect, over the long term, as much as five percent of all exports from the country being facilitated through forfeiting, factoring, export credit agency and other such export financing facilities currently under active planning and implementation of TDAP,” he added.

Daily Times - Leading News Resource of Pakistan

 

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IPI gas line project: Islamabad offers new arrangement to Delhi ​

ISLAMABAD (October 26 2007): In a bid to again bring on board, Pakistan has offered India a new arrangement for benefiting from the pipeline to be used for importing gas from Iran. If India comes up with positive response, Pakistan will sign a separate bilateral agreement with it to transport Iranian gas at its desired point at the border.

The new arrangement provides that in the case of bilateral agreement India will have nothing to do with Pak-Iran segment of the project. First, Iran and Pakistan will sign the agreement on their mutually accepted terms and conditions and then it will be followed by an independent arrangement between India and Pakistan for gas transportation.

Petroleum Secretary Furrukh Qayyum had written a letter to his Indian counterpart early this week, inviting New Delhi to enter into bilateral arrangement with Islamabad to get Iranian gas at its border. A senior official of the petroleum ministry on Thursday told Business Recorder that Pakistan wants to take India on board for gas pipeline project and the new offer based on a segmental approach was the part of the same strategy.

Iran and Pakistan have already begun work on the new strategy. The two sides had held talks in Islamabad last week under bilateral arrangement and sorted out a number of technical and legal issues.

The official said: "Under the bilateral arrangement, Iran and Pakistan had made development in the recent round of talks held here and this will be followed by another round soon to sign a formal agreement for turning multi-billion dollar pipeline into reality."

After actively participating for tripartite gas line project for years, India suddenly walked out of it recently. It was no doubt a disturbing development for Iran and Pakistan. However, the two sides did not give up and they decided to take the project on bilateral basis. The new strategy help them reach to a conclusion on almost all-key legal and technical issues.

The official said Iran and Pakistan have reached an understanding on all-key issues of the project, including the gas pricing mechanism, security, and their formal announcement will be made in next meeting.

Business Recorder [Pakistan's First Financial Daily]