Pakistan Economy - News & Updates - Archive

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Mobilink to invest $500m more in Pakistan​

KARACHI: Mobilink GSM has so far invested $2 billion in Pakistan and in the coming years it is planning to further invest $500 million.

This was stated by Omar Manzur, Public Relations Manager, Mobilink Pakistan during a media training workshop for the journalist in Istanbul.

“Currently we have laid 6,000 km fiber optic lines in different cities of Pakistan and after lying additional 500 km fiber optic lines Mobilink GSM will become a complete telecom service provider in Pakistan,” Manzar added.

He said, after completion Mobilink will divert its traffic on this fiber optic network, which would be available to the other operators also for their traffic.

Mobilink has always wanted to take the lead in all the sectors and in term of infrastructure it would not be relying on any other companies. “Currently our network is based on 2.5 generation and we will upgrade this according to the requirement of our subscribers.”

Currently more than 28 million customers are using Mobilink services across the nation. With more than 5,000 cities, towns, and villages throughout Pakistan on its network, it will be covering the entire length and breadth of Pakistan, he added.

Mobilink Pakistan organized journalist training on the telecommunication industry in Istanbul. The trainer Ms. Eileen M. Wallis, Managing Director of the Portsmouth Group, one of the Middle East’s leading communications consultancies, conducted the workshop. The workshop covered all issues related to quality of service, call tariffs, upcoming technologies, consumer reaction, role of regulator and connectivity problems in the telecom sector. Print and electronic media journalists from all over the country covering the beats of IT and Telecom participated in the workshop.

The workshop focused on the telecommunication industry especially the mobile phone sector progress rate and the challenges faced by the operators and its solution. To improve the performance of telecom reporters different suggestions and advices were forwarded and at the end of the workshop Mobilink shields were presented to the participants.

Daily Times - Leading News Resource of Pakistan

 

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US will expand business assistance: Anske ​

KARACHI (November 16 2007): The US Consul General, Kay Anske has said that her country would also expand its assistance to Pakistan on business side to enhance bilateral trade between the two countries.

Addressing the members of Federation of Pakistan Chambers of Commerce and Industry at FPCCI building on Thursday, she said that American Business Council (ABC) would continue its role in introducing fresh investment in Pakistan.

She acknowledged that Pakistan was an important trade partner and major ally against the global war on terrorism. However, she stressed on resolutions of some basic issues like alternate dispute resolution and intellectual property rights, which she said, are significant in boosting trade and investment.

Later talking to newsmen after holding meeting with the members of FPCCI, she said that US would support democracy in Pakistan. However, US Consular General ruled out any fresh legislation for imposition of sanction on Pakistan after emergency rule, saying that any decision in this regard would be taken under the already in placed laws.

Sources in the FPCCI told Business Recorder on the basis of anonymity that US Consular General had been quite unclear on several issues during meeting with FPPCI members and avoided expressing any opinion.

They said that during meeting, several issues came under discussion including war on terrorism, trade, political situation and situation in the wake of state of emergency rule in the country. Earlier, addressing the FPCCI members, Zubair Tufail demanded further US assistance to Pakistan for its role against global war on terror that had hit its economy badly since this war had been waged.

He said that Pakistan is the largest trade partner of US and a close ally against war on global terrorism and observed that portfolio investment from US had increased significantly in recent years. Tufail said that war on terrorism had badly hit Pakistan's economy as it had been spending billion of rupees only on maintaining law and order situation in the country particularly in its northern parts.

He said that keeping in view the present political and law and order situation, US could play its role in coping with such increasing challenges to Pakistan's integrity and solidarity besides economy. He invited US investors for undertaking economic ventures, saying that Pakistan was the emerging market with rapid growth of economy adding that textile industrialists in US planning to shift their units from their country could also invest in the same field here in Pakistan, as a prime spot.

He pointed out that there were many potential sectors including oil and gas, aviation, banking, construction, textile etc, for investment. On the occasion, Arshad Alam, Chairman-Pakistan US Business Council and several members of FPCCI were present.

Business Recorder [Pakistan's First Financial Daily]

 

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Tusdec plans to set up electronics complex ​

LAHORE (November 16 2007): The Technology Upgradation and Skill Development Company (Tusdec) is planning to establish an electronics complex to promote the local manufacturing or assembling of electronic gadgets, especially mobile phones.

"The proposed complex will act as a common facility centre for the manufacturers and assemblers of the electronic gadgets to help bring down the import bill through the local production," company Chief Executive Officer Suhail Ahmad revealed this in a meeting on the electronics sector.

Lahore Chamber of Commerce and Industry (LCCI) President Shahid Hassan Sheikh, Senior Vice President Yaqoob Tahir Izhar and Chief Operating Officer of the United Mobile Azad Lalani were also present.

Suhail Ahmed said, "The electronics industry is considered one of the world's fastest growing industries with global revenue worth trillions of dollars per annum."

He said the establishment of a common facility centre or the electronics complex had been proposed to uplift the industry by importing contemporary technology, machinery, obtaining training and skill enhancement together with practical production training. The centre will provide the industry with complete printed circuit solutions commensurate with economy of scale as well as expert services for product design and proto-typing.

This centre will be equipped with a modern electronics design and quality assurance lab for design. "The common facility centre will contain high-tech Surface Mount Technology machines for assembly of Printed Circuit Boards (PCBs) with both through-hole and surface mount components," he added. It will also provide PCB design, lay-out, fabrication and electronic component procurement services. Collaboration with international partners would be made to prevent obsolescence of the machinery and equipment.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan next to Italy in producing motorbike, accessories: PSGMEA ​

SIALKOT (November 16 2007): Chairman Pakistan Sports Goods Manufactures and Exporters Association (PSGMEA) Professor Safdar Sandel has said that business community of Sialkot engaged with Sports Goods industry was making strenuous efforts for producing high quality and standard products to cope with the international market more easily.

In an interview with Business Recorder here on Thursday he disclosed that Sialkot which is a hub of cottage industry and famous for producing quality and standard sports goods and now had entered into manufacturing of "Motorbike" apparel and accessories and it would be a big ripple in economic activities which would fetch a handsome foreign exchange for the country.

The Chairman PSGMEA revealed that Pakistan is next to Italy in producing motorbike apparel and accessories and competing the global market easily. Similarly, the productions of Martial Art products were gaining momentum and according to a rough estimate about 150 units were engaged with the production of martial art uniforms in and around to Sialkot Professor Sandal said.

The PSGMEA Chairman further told that the demand of hand made soccer ball still exists despite the introduction of mechanised soccer ball because the machine made soccer ball had badly failed in producing sustainable results in the Football World Cup. Professor Safdar foresees that hand-stitched ball would stay with man because of its quality and technicalities.

The hand-stitched soccer ball during the game keeps the targeted direction whereas the machine made failed in maintaining the directions adding that in previous World Football Cup the ratio of field goals remained at lowest ebb. In order to cope with the threats of machined made soccer balls, Small and Medium Enterprise Development (SMEDA) had finalised almost all arrangement for setting up Sports Industry Development Centre in Sialkot for the modernisation of sports goods industry especially the soccer ball manufacturing sector enabling it cope with the new challenges of global market.

The setting up Sports Industries Development Centre (SIDC) project would enable Sports Goods sector to adopt new technology of mechanised ball, which is threatening to the hand-stitched inflatable soccer ball.

It may be added that the Sports Goods sector of Sialkot is the main export sector of the city with total exports of about US 350 million dollar per annum. The city caters to 85 percent of total world demand of hand stitched inflatable balls, which means around 40 million balls annually worth 210 million dollars.

The small and medium units are spread over the whole district of Sialkot, which form nearly 90 percent of all the enterprises and Sialkot is fully entitled to call the city of SMEs Professor Sandal said.

The Chairman Sports Goods further told that under the current global scenario and fast growing global industrialisation, it has been observed that the SME sector has not been able to fully realise its potential. Exclusive handwork and manual caliber is not going to meet the challenges of mechanisation. Sole dependence on human craft is not enough. Lack of automation, scanty use of advanced technologies and methodical contentment is dangerous. The pressures on Small and Medium Businesses today are more intense than ever. Advancement in technology can alone help forestall Small Business's success and meet requirements of the ever changing choices, whims and moods of the World markets.

The government should take appropriate step for extending the facility of "Research and Development" to Sports Goods industry enabling to cope with the global market in the presence of modern trends and customs demands he said.

Professor Sandal said that the Federal Commerce Ministry must come forward as strong player for building and promoting indigenous industries to help the Small Medium Entrepreneurs grow further. The future will be bright, the gloom has to be shed off. Energetic youth have to take forward the chariot as strong steeds and steer the economy with unrivalled determination and vigour he added.

Business Recorder [Pakistan's First Financial Daily]

 

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Zaver Pearl Continental Gwadar completes one year ​

KARACHI (November 16 2007): It seems like only yesterday that the dream of a luxury hotel in the futuristic new port of Pakistan became a reality but Zaver Pearl Continental Hotel Gwadar is already a robust one year old today.

Since its star-studded inauguration on 16th November 2006, the hotel has played an integral role in changing the face of Gwadar Port. It has been pivotal in developing/creating interest/ awareness, encouraging investment in the new city and attracting foreign as well as domestic travellers.

The new Pearl on the shore has had the privilege of hosting the cabinet meeting in March this year with the President, Prime Minister, Federal and Provincial Ministers and Governors staying at the hotel.-PR

Business Recorder [Pakistan's First Financial Daily]

 

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'Pakistan needs more incentive in tourism' ​

LONDON (November 16 2007): The growth of tourism in Pakistan has been undermined by the lack of adequate incentives both from the private and public sectors. This was stated by an official of the Tourism Development Corporation of Punjab (TDCP) while talking to newsmen at the conclusion of the four-day World Travel Market, the global travel industry show, here on Thursday.

Organised at the cavernous ExCel Exhibition centre in East London, the event attracted 5,500 exhibitors representing 202 countries and regions. Present at the event were all the stakeholders connected with the travel industry including hotels, airlines, tour operators, hospitality and the tourism departments of the participating countries.

"Pakistan has been fortune to possess God's gifted natural beauty from a sunny coastlines in the south to the towering mountains in the north but we need to invest more in building a sound infrastructure to attract tourists," said Shahzad Raza Syed. His organisation was among the 10 units representing Pakistan at the global event.

He said travel advisories issued by the foreign governments from time to time concerning Pakistan was another drawback although the major cities and areas, where the tall mountains are located, are peaceful and problem-free.

Shahzad said the government had declared 2007 as the 'Visit Pakistan year' and though it could be termed as fairly successful yet the number of tourists expected to take advantage of the various incentives offered were inadequate due to the developing situation in the country.

However, he disclosed that TDCP had signed a memorandum of understanding (MoU) with a local travel company to facilitate British Asians to visit Pakistan, and said United Kingdom had a big community of Sikh as well as Hindus and they had shown interest in visiting their holy shrines in Pakistan.

Shahzad also spoke about Pakistan Tourism Fair organised in Lahore from January 15 to 21, which he termed as a 'complete success' as tour operators from 29 countries put up their stalls that attracted large crowds.

He also underlined the need for developing domestic tourism and said scenic places in Sindh, Balochistan, Punjab, NWFP and Azad Kashmir, which had the potential to attract people throughout the year, must be build up to help poverty alleviation in these areas. The TDCP official noted that some of the countries, which participated in the global event, were earning foreign exchange entirely from the tourism. He said the economy of countries like Maldives, Mauritius and certain others in the Caribbean were entirely tourism driven. He was hopeful that tourism would resume its rapid growth in near future in Pakistan, which would lead to maximising economic benefits.

Business Recorder [Pakistan's First Financial Daily]

 

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Remittances soared 41pc to $580m in Oct ​

Sunday, November 18, 2007

KARACHI: Remittances sent home by overseas Pakistanis reached a record level of $580.24 million in October 2007 compared to $410.61 million in the same month last year, showing a jump of $169.63 million or 41.31 per cent.

The previous highest amount remitted in a single month was recorded in May 2007, when $537.98 million were sent to the country.

In the first four months (July-October) of the current fiscal year 2007-08, the country received $2,081.49 million, showing an increase of $437.29 million or 26.60 per cent over the same period of the last fiscal.

The amount of $2,081.49 million included $0.67 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

The monthly average of remittances for the period July-October 2007 came to $520.37 million as compared to $411.05 million during the corresponding period of the last fiscal year, registering an increase of 26.60 per cent.

The inflow of remittances into Pakistan from most of the countries of the world increased last month as compared to October 2006.

According to the break-up, remittances from the US, the UAE, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), the UK and EU countries amounted to $169.91 million, $97.43 million, $95.92 million, $85 million, $44.59 million and $15.90 million respectively. During October 2006, the remittances stood at $109.89 million, $59.88 million, $75.41 million, $58.14 million, $36.22 million and $11.88 million.

The remittances from Norway, Switzerland, Australia, Canada, Japan and other countries during October 2007 amounted to $71.45 million as compared to $59.15 million during October 2006.

The inflow of remittances in the July-October 2007 period from the US, Saudi Arabia, the UAE, GCC countries, the UK and EU countries amounted to $590.81 million, $390.91 million, $334.82 million, $302.14 million, $164.50 million and $60.68 million respectively.

In the July-October 2006 period, the remittances from the said countries stood at $421.76 million, $318.20 million, $250.70 million, $231.61 million, $138.45 million and $48.31 million respectively.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first four months of the current fiscal year amounted to $236.96 million against $234.15 million last year.

Remittances soared 41pc to $580m in Oct

 

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Conference stresses sustainability of SME, microfinance sectors ​

Sunday, November 18, 2007

KARACHI: The overriding opinions on the first day of the 1st SME & Microfinance Conference 2007 were based on pleas for defining parameters for the sustainability and growth of both the sectors within a concise regulatory framework.

More than 300 delegates from the banking, microfinance, SME and social sectors attended the day-long intense sessions with renewed interest.

Inaugurating the conference, Shahid Rashid, CEO, Small and Medium Enterprise Development Authority (SMEDA) said that there was a need for a broad-based strategy to meet the needs and concerns of the SME sector, as well as a focus on a comprehensive and workable outreach programme in the microfinance sector was the ultimate goal in securing a conducive environment in the two sectors.

“There is an urgent need to streamline the implementation process of the regulatory framework and all key players in both the SME and microfinance sectors will have to be taken into confidence to steer growth and sustainability,” he elaborated.

Earlier, Menin Rodrigues, the convener and chairman of the conference in his opening remarks and keynote address, stressed that “if the fundamental role of the SME sector is to stimulate growth within small and medium sized businesses, and the microfinance sector engaged in transforming the lives of the rural and urban poor, empowering them to redefine their lives, it is after all, a story of making a difference in people’s aspirations, which in the long-run would help in laying the foundations of a healthy economic environment in the country, addressing both employment and poverty.” Kazi A Muktadir, Managing Director, National Institute of Banking and Finance (NIBAF) stressed the need for long-term planning in the implementation process of the regulatory framework.

Salim Raza, CEO of Pakistan Business Council (PBC), an eminent banker with several years of international exposure, spoke convincingly on the initiatives and practices driving global SME development. The second working session on microfinance had Muhammad Saleem Umer, CEO, Institute of Bankers, Pakistan in the chair, as Senator Nisar A Memon, the newly appointed Federal Minister for Information in the caretaker government could not attend the conference due to pressing engagements. Ghalib Nishtar, President and CEO, Khushhali Bank noted that commercialisation of microfinance, with its several challenges, was a pre-requisite for growth, and an effective communication strategy could help mitigate some of the challenges.

Ozair A Hanafi of Pak-Oman Microfinance Bank (Ltd) stressed the point that propelling growth through micro-savings would result in the reduction of ‘generational poverty’.

Hussan-Bano Burki, Senior Consultant, ShoreBank International (Ltd) in her demand for savings services among the urban poor reiterated that the urban poor, though through a natural process save, yet there was a need to streamline their saving habits through sustainable savings products.

The post-lunch sessions on microfinance included ‘Empowering Women for Developmental Change’ and included inspiring presentations from the two prominent organisations from the social sectors, namely the KASHF Foundation through their CEO, Sadaffe Abid and the Rural Support Network Pakistan (RSNP), through their CEO, Shandana Khan.

Dr Rashid Bajwa, CEO, NRSP and Pakistan Microfinance Network (PMN) chaired the last microfinance session on ‘Outreach v/s Sustainability-The Balancing Act’ which had a sector overview by Ahmad Jamal of Pakistan Poverty Alleviation Fund (PPAF), looking deeper into sustainability and outreach, Inshan Ali Nawaz, Chief Operating Officer of the First Microfinance Bank reviewed the two elements from a diversified perspective. Giving his views on Islamic Mode of Finance in Microfinance, Mujeeb Beig, SVP-Head of Research, Dawood Islamic Bank highlighted the basic difference between conventional and Islamic modes of financing.

Conference stresses sustainability of SME, microfinance sectors

 

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Foreign funds withdraw $124m this week ​

Bears erode another 342 points, Rs92bn on Karachi bourse

Sunday, November 18, 2007

KARACHI: Investors continued distancing themselves from the Karachi bourse this week to avoid any untoward situation in the transitional political system under emergency rule.

The KSE 100-share index recorded another plunge of 341.86 points or 2.55 per cent week-on-week basis and closed at 13,082.01 points.

The 100-index closed this week (November 12 to 16) at an eight-week low, slightly above the psychological mark of 13,000 points, Farhan Mahmood of JS Research observed.

The outgoing week started off on a positive note with the index reaching week-high at 13,655.67 points on Monday. However, the week ended on a negative note for the fourth consecutive week.

At the end of the week, the cumulative decline of the four consecutive weeks stood at 1,705.54 points or 11.533 per cent. Since the market registered the highest record at 14,787.55 points on October 19, 2007, the bourse is under a technical correction phase owing to one reason or the other.

On the other hand, the ready market turnover also fell to a two-month low at 139.337 million shares on the weekend session. The average weekly volume in this market was recorded at 204.209 million shares, which was almost 43 million shares lower as compared to previous week at 247 million.

The announcement of the election to be held in first week of January 2008 reduced the political uncertainty to some extent. Otherwise, the automatic termination of National Assembly at the completion of its fiver-year tenure on November 15 under the emergency rule invited panic selling on Wednesday.

The sale of equities at the regional markets, higher than expected Oct 2007 CPI (Consumer Price Index) number and decline in global oil prices dampened local market sentiments as well, Mahmood added.

The other analysts were of the view that the maintenance of silence by the farewell Prime Minister Shaukat Aziz over the proposals given by leading brokers and KSE board of directors on last Friday (Nov 09) to him to restore the investors confidence in the market, which they have lost owing to the emergency rule imposed on November 03, also played a negative role this week.

This meeting was summoned by Aziz in which brokers asked him to abolish or extend the date of exemption on Capital Gain Tax (CGT) for a further period, which is going to expire on June 30, 2008. They also proposed premier to lift the upper limit on Continuous Funding System (CFS) from currently set at Rs55 billion to other suitable level. Now the caretaker government is in place, which is believed to take no bothering on CGT and CFS issues, as its only one goal is to hold general election in the country in fair and transparent manners, they added.

Moreover, fast changing political scenario in the country, crackdown on political leaders and workers in the country under the emergency rule and worst law and order situation in Swat and other parts of the country altogether provoked investors to minimize their portfolios on board, they maintained.

The Special Convertible Rupee Account or SCRA balances further reduced to US$99.886 million to date for the fiscal year 2007-08 during the outgoing week.

During the entire week, the overseas investors’ inflows and outflows in the SCRA account stand at US52 million and US$176 million respectively. Therefore, the foreign portfolio investors withdrew a sum of US$124 million this week as the difference of total inflows and outflows depicted, according to SBP website.

This SCRA amount is invested and disinvested at the local bourses and in government bounds as well.

The selling pressure was witnessed across the board, major correction occurred in the Telecom and E&P sectors which plunged by eight per cent and 2.6 per cent, respectively.

Among the blue chips, the Habib Bank was the only scrip which recovered Rs6.85 on week-on-week basis to Rs252.10. Fortunately, the Bank of Punjab also regained 45 paisa during the during to Rs92.45 otherwise all the other front line stocks closed in negative column.

NBP, OGDCL, SCBL, FFBL, MCB Bank, PTCL and UBL declined in a range of 35 paisa to Rs4.35. LUCK, DGKC and PSO declined in the range of Rs5.55 to Rs9.15. And ENGRO, PPL and POL declined in a range of Rs14 to Rs19.55.

The overall market capitalisation reduced by Rs92 billion to Rs4.004 trillion by the weekend

During the week, CFS investment declined to Rs50 billion, down by 3.9 per cent compared to last week, whereas, CFS rate stood at 10.9 per cent versus 11.1 per cent last week.

Foreign funds withdraw $124m this week

 

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Privatisation of airports: a viewpoint from safety angle ​

Sunday, November 18, 2007

Undoubtedly, privatisation offer significant benefits in certain cases. It relieves states/governments of the burden of heavy capital investment and gives airport management direct access to the open market for loans and capitals for investment in new airports, expansion or rehabilitation projects.

Privatisation of airports has other advantages from government’s point of view of making government resources available for use in other important sectors such as education, health, and housing. Nevertheless, the need to ensure safety of operation at all times remains the most important objective and the responsibility of states for ensuring the safety cannot be overemphasised and the process of airport privatisation with the control of operation and management passing on from government-backed authorities to private entities, usually a conglomerate of companies often led by a financial institutions, may have some safety implications. Privatised airports will aim at ensuring that they operate as profitable commercial enterprises. To this end, experts are of the view that the focus may not be on maximising non aeronautical revenue but also on attracting additional air traffic and inter-airport alliances, through direct and indirect participation in air services agreements. They are in agreement that traffic growth and safety go hand in hand and with this profile, the air transport industry’s performance, particularly its safety, is always the focus of the media.

In addition to this there is also a need for appropriate legislation to enforce safety oversight functions before starting privatisation process. Aviation industry in general and airports in particular are about to experience various important changes in the near future, They will have to cope with the possible evolution from being largely state supported entities to becoming more and more commercial and competitive entities. They may face various conflicting demands from airlines increasing capacity. Similarly, passengers may require easy access to airports and improved terminals facilities while regional and local planning authorities may expect increased social and economical activities in terms of opportunities for employments and business venture.

Aviation experts all over the world who have got special expertise in the field of safety and security of airports and air passengers are of the view that with the control of operation and management passing governmental authorities to private entities, usually a conglomerate of companies often led by an institution, may have some safety implications. Privatised airports will aim at ensuring that they operate as profitable commercial enterprises. To this end, the focus may not only be to generate maxim non-aeronautical revenues but also on attracting additional air services (and establishing inter-airport alliances/co ordinations) through direct/indirect participation in air services agreements. However, it should be ensured through all means that safety is not compromised, The state concerned should also ensure, before awarding he privatisation contract, that the successful applicant has the necessary, well-qualified and experienced staff to ensure, at all times, that safety is not jeopardised. It is also important that the civil aviation administration continues to exercise its prerogatives to intervene and inspect whenever needed from the safety standpoint, keeping in view its obligations under the relevant convention.

It is a daylight truth that in near future airports are about to experience significant changes. They will have to cope with possible evolution from being largely state-supported entities to becoming more commercial and competitive entities. They may have to face conflicting demands from airlines for increased capacity and from environmentalists seeking to ensure that progress will not be made at the expense of the environment. Passengers may require easy access to airports and improved terminal facilities while regional and local planning authorities will expect increased social and economic activities in terms of opportunities for employment and business ventures. The air transport sector’s move towards global alliances will, in some instances, require significant changes to passenger terminal facilities. In addition, privatization of an increasing number of airports may lead to pressure from shareholders for increased profit margins. At the same time, new technologies may revolutionize airport operations and more comprehensive airport management system may become instrumental in running airports efficiently in the future. Hence privatisation requires careful consideration of a number of factors.

Fundamental among these is that an airport is, in essence, a monopoly on which the user, aircraft operator, passengers and shipper alike, are highly dependent. Consequently, a number of safeguards must be implemented before proceeding with privatisation. All obligations such as freedom of access, non-discrimination, the categories of users and conformity with international agreements and obligations should apply to airports regardless of ownership. In particular there is an obligation to conform to ICAO policies and principles, notably those contained in the Convention on International Civil Aviation and its various annexes.

In addition to above inclusion in the state’s aviation regulations of the requirement of certification of aerodromes/airports open to public use is necessary for the civil aviation administration to be vested with powers to enforce compliance with the applicable rules and procedures. Aerodrome certification system is one of the basic aviation laws in this regard and there should be an appropriate state entity with the necessary authority and resources to carry out the task of inspection and certification of airports. However, it must be noted that even in the privatised environment aviation security would remain with the state concerned.

Privatisation of airports: a viewpoint from safety angle

 

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SSGC highlights achievements ​

Sunday, November 18, 2007

SAN FRANCISCO: The level of automation achieved by Sui Southern Gas Company (SSGC) over the years won accolades from several visitors at Oracle OpenWorld 2007 here.

The fact that the case study belonged to a country where financial systems are too hard to break and mindsets not easy to change made it popular among the attendants.

The company was represented by its Customer Care & Billing General Manager Irfan Zafar, who brings with him sufficient experience of working with different multinational companies before joining SSGC in 2003.

He told The News that SSGC was a company that had the most comprehensive billing and customer service solution in the country.

“Though an initiative was taken in 1996 also, it was in 2003 that the company decided to go for a structural implementation of the enterprise software primarily for the convenience of the customers.”

Irfan said SSGC’s former managing director Munawwar Baseer played an instrumental role in introducing automation in the company. He opted for it though the company enjoyed full monopoly and was not pressed by any challenges to improve its customer services, he added.

The SSGC, he said, had successfully switched its billing, customer care, metering and other customer-related functions to solutions offered by Oracle.

Irfan said the SSGC had purchased modules/softwares pertaining to financial assets and cash management, purchasing, inventory management, human resources, payroll, business intelligence and so on.

“We have digitised maps and prepared graphics of all the pipelines. With the help of GPS we can now instantly tell the aspiring customers as to how much time it will take us to give them new connections. This would take weeks in the past.”

Irfan said the digitisation helped the company to instantly find out how far away a supply line was from the house of the applicant.

He said the new system also enabled the company officials to track movement of each and every file and official communication, and immediately trace the person responsible causing delays. This has put an end to red tapism as well increased the efficiency.

SSGC highlights achievements

 

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Slight fall in Oct core inflation recorded​

ISLAMABAD, Nov 16: The core inflation – non-food and non-energy -- exhibited a slight decline as it stood at 5.7 per cent in October 2007 as against 5.8 per cent recorded during the same month last year.

Tight monetary policy, pursued by the State Bank of Pakistan (SBP), was mainly responsible for stability in core inflation.

The core inflation eliminates energy and food products that can have temporary price shocks because these shocks can diverge from the overall trend of inflation and give a false measure of inflation.

Official figures released here on Friday indicated that the core inflation in the first four months of the current fiscal year witnessed a slight decrease as it stood at 5.4 per cent as compared to 6.3 per cent during the same period last year.

Non-food inflation registered a decline, from 6.4 per cent in October 2006 to 5.4 per cent in October 2007 because of freezing of oil prices during the last few months.

Despite this decrease in core inflation and non-food, the overall inflation stood at 9.3 per cent in October 2007 as against 8.1 per cent in the corresponding month of last year.

This increase in overall inflation in October 2007 is attributed to a surge in food inflation, which moved from 10.5 per cent in October 2006 to 14.6 per cent in October 2007.

According to an official report of the finance ministry, food inflation, on the other hand, accelerated to 14.6 per cent in October 2007 as against 10.5 per cent in the same period last year owing to extraordinary surge in demand for food items, particularly fruits, vegetables, milk, meat, poultry, cooking oil during the month of Ramazan and the commencement of the wedding season after the festival of Eid in Pakistan.

Furthermore, the month of October also witnessed a sharp increase in wheat and flour prices, totally driven by ‘extra market forces’.

Although prices of wheat and wheat flour retreated lately, their contribution to the sharp increase in food inflation was already realised.

Food inflation is expected to ease off in the coming months.

Food inflation has emerged as a major source of concern for policy-makers in emerging Asia, including Pakistan.

Food prices rose at an average of 10.1 per cent and contributed 55 per cent to overall inflation in Asia, excluding Japan.

The upward trend in food prices is most evident in China (18.2pc), India (8.4pc), Indonesia (13.0pc) and Pakistan (14pc).

During the first four months (July- October) of the FY08, average inflation declined to 7.6 per cent as compared to 8.3 per cent last year and 8.6 per cent the year before.

In other words, the average inflation in the first four months of the current fiscal year is still the lowest in the last three years.

The non-food inflation averaged five per cent during July- October 2007-08 as against an average of 7.1 per cent in the same period last year.

Food inflation increased slightly to 11.2 per cent in the first four months of current fiscal year as against 10 per cent in the same period last year.

The wedding season is expected to continue in December as well, suggesting that food inflation is likely to ease off at the start of the new calendar year in a month’s time, added the report.

The current fiscal year’s (2007-08) inflation target has been set at 6.5 per cent and the current inflation figures suggest that this target is likely to be achieved.

Slight fall in Oct core inflation recorded -DAWN - Business; November 17, 2007

 

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India buys 35,000 tons cement from Pakistan​

NEW DELHI, Nov 16: India has imported 35,000 tons of cement from Pakistan during the last three months.

Indian Minister of Commerce Jairam Ramesh stated this while talking to APP after meeting with Chief Executive of Trade Development Authority of Pakistan Tariq Ikram here on Friday.

He said during the meeting the two sides discussed trade through LoC, upgradation of facilities at Wagah, investment in each others country, issue of Geographical Indicators and boosting trade volume.

Mr Ramesh said India had invited Pakistan delegation to discuss the modalities for LoC trade.

He said India was planning to invest Rs70 crores on upgradation of trade faculties at Wagah on its side.

This investment should be synchronised with the investment from Pakistan on its side.

A meeting on technical level would be held between both the countries next month to discuss matters relating to facilities at Wagah. Suggesting to launch investments in each others country, he said by this way trade volume could be increased.

He said he had accepted the invitation from Pakistan to visit Expo Pakistan being held in Karachi in March next year.—APP

India buys 35,000 tons cement from Pakistan -DAWN - Business; November 17, 2007

 

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Pakistan uged to import 4,000MW from CARs​

ISLAMABAD, Nov 16: The World Bank has advised Pakistan to start working on import of 4,000MW of cheap electricity from Central Asian states, besides working on domestic sources to overcome electricity shortage owing to a 43 per cent expected increase in demand to 20,000MW by 2010.

The World Bank estimates that Pakistan’s peak demand now exceeds 14,000MW and the present installed capacity of 19,500MW has become inadequate on account of the wide variations in the water availability, which greatly reduces the firm capacity available.

“Electricity demand at the generation level is forecast to grow at 7-8 per cent per year to about 20,000MW by fiscal year 2010 and 44,700MW by 2020,” a government official told Dawn quoting fresh World Bank estimates.

The country that had a comfortable supply position during the last several years has already started experiencing shortages during peak periods and “ it is anticipated that if no new capacity is added, firm power shortage would amount to 5,500MW by fiscal year 2010.”

The World Bank understanding that besides improving supply efficiency, demand management, addition of new hydro and thermal power stations, Pakistan should expedite importing 1,000MW from Tajikistan and Kyrgyz Republic in the first phase and then increase such imports to 4,000MW in the second phase.

These imports, the World Bank believes, have two major advantages. First, the cost of supply from Sangtuda, Rogun, Talimardjan and Kambarata power stations in the CARs would range between 2.26 cents to 3.75 cents per unit compared with existing average generation cost in Pakistan at 5.6 cents per unit.

Pakistan is now entering into contracts with independent power producers (IPPS) for thermal power generation at a tariff as high as 14 cents per unit.

Second, the attractive feature of the imports form CARs is that Pakistan’s peak demand occurs in summer, when the Central Asian power systems have large surpluses from their hydroelectric generation stations.

The WB says that international financial institutions like Asian Development Bank, Islamic Development Bank and USAID and private sector companies like AES Corporation of USA and RAO UES of Russia have already indicated to be part of the project once feasibility studies currently underway are completed.

According to the government of Pakistan estimates, the country is most likely to face a major energy crisis in natural gas, power and oil in the next three to four years that could choke the economic growth for many years to come.

Pakistan’s total energy requirement would increase by about 48 per cent to 80 million tons of oil equivalent (MTOE) in 2010 from about 54 MTOE currently, but major initiatives of meeting this gap are far from turning into reality. Major shortfall is expected in the natural gas supplies, the sources said.

According to official energy demand forecast the demand for natural gas, having about 50 per cent share in the country’s energy consumption, would increase by 44 per cent to 39 MTOE from 27 MTOE currently.

Partly contributed by gas shortfalls, the power shortage is expected to be little over 5,250MW by 2010, a little lower than World Bank’s estimates of 5,500MW. Simultaneously, oil demand would also increase by over 23 per cent to about 21 million tons in 2010 from the current demand of 16.8 million tons.

This would leave a total deficit of about nine million tons of diesel and furnace oil imports, sources said.

Since the gas shortfalls were expected to be much higher, the country would need to enhance its dependence on imported oil, thus increasing pressure on foreign exchange situation, more so as international market continues to go up.

Planning Commission sources said the government had planned to add an overall power generation capacity of about 7,880MW by 2010. Of this, about 4,860MW is to be based on natural gas, accounting for 61 per cent of capacity expansion.

However, the gas-based power expansion of about 4,860MW would remain in doubt since these estimates were based on gas import options for completion in 2010, 2015 and 2020. None of these projects could achieve these deadlines.

According to World Bank estimates, the indigenous gas supply would fall from 32.6 MTOE in 2010 to 20.7 MTOE in 2025 while the gas supply-demand gap would rapidly increase as demand is expected to grow continuously, quadrupling in 2025.

Pakistan uged to import 4,000MW from CARs -DAWN - Business; November 17, 2007

 

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OGDCL discovers gas field​

KARACHI: The Oil and Gas Development Company Limited (OGDCL) has made a gas and condensate discovery from Moolan exploratory well 01 near Hyderabad in Sindh province. According to the notice issued by Karachi Stock Exchange, the well was delineated in Lashari development and production lease and drilled down to a depth of 2,421 meters. Based on log data, two zones were selected for testing. As per initial tests zone-1 is producing 4.44 mmscfd (million standard cubic feet per day) of gas and 64 bpd of condensate. Similarly zone-2 is producing 6.02 mmscfd gas and 165 bpd (barrels per day) of condensate. This is third discovery of the current fiscal year. Earlier this year the Mari Gas Company Limited (MGCL) and Pakistan Petroleum Limited (PPL) made oil and gas discoveries.

MGCL has made a gas discovery at Bhitai exploratory well 01 near Daharki in district Ghotki. Natural gas flowed from the well from two horizons namely Sui Upper and Sui Main Limestone at a cumulative rate of 11.32 mmscfd. The drilling operations at Bhitai well no 1 commenced on September 6 and penetrated into Sui Main Limestone formation at 1202 meters. PPL has made a gas condensate discovery in Hala Block at Adam X-1 well in Sindh in September. According to the Pakistan Petroleum Information Services (PPIS), a successful Drill Stem Test was carried out which flowed at a rate of 1,310 bpd (barrels per day) of condensate and 27.4 mmcfd (million cubic feet per day) of gas. This well was spud on April 07, 2007 and drilled to the depth of 3,566 meters.

The daily production of oil has reached around 70,000 barrels and gas over 4 billion cubic feet in the country this year. The daily oil and gas production remained 696,000 barrels and 967 million cubic feet respectively during the last year. According to official sources, gas is being supplied to more than 4.5 million consumers in the country. Presently, 42 companies are working in Pakistan with 118 exploration licenses and 127 leases. Seventeen new blocks have been opened which would give further impetus to the ongoing exploration activities in the country and would open tremendous opportunities for the prospective investors in diversified fields.

Daily Times - Leading News Resource of Pakistan