Pakistan Economy - News & Updates - Archive

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KARACHI, May 17: Remittances from overseas Pakistanis increased by over 5 per cent during the first 10 months of the current financial year but the inflow during April 2006 slowed down to almost at the same level of April 2005.

The State Bank on Wednesday issued the latest figures of remittances which reached $3,629.68 million during the first 10 months of the current fiscal year (July–April) as against $3,451.51 million the same period last year, showing an increase of 5.16pc.

The remittances include $10.81m received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

Pakistani workers remitted $401.47m during April 2006 as against $401.00m in April 2005.

The inflow of remittances during the July-April period from the USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $994.78m, $584.64m, $555.84m, $477.30m, $346.40m and $97.06m respectively as compared to $1,076.22m, $506.22m, $580.87m, $425.95m, $309.99m and $83.25m during the corresponding period of the last fiscal year.

While remittances received from Canada, Australia, Norway, Switzerland, Japan and other countries during the period under review totalled $562.85m as compared to $457.27m the same period last year.

The inflow of remittances into Pakistan from most countries of the world increased last month as compared to April 2005. According to the break up, Pakistan received workers remittances during April 2006 from USA ($101.24m), Saudi Arabia ($69.05m), UAE ($64.59mn), GCC countries including Bahrain, Kuwait, Qatar and Oman ($47.98mn), UK ($41.05mn) and EU countries ($9.44m) as compared to $121.04m, $57.26m, $73.04m, $43.80m, $39.61m and $11.16m received from the respective countries in April 2005.

Remittances received from Canada, Australia, Norway, Switzerland, Japan and other countries during April 2006 totalled $68.00m as compared to $47.7m the same month last year.

 

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ISLAMABAD, May 17: Enbridge Pipeline Company of Canada has shown its keen interest to participate in the privatisation of Sui Northern Gas Pipeline Company (SNGP).

Vice-presidents Lan Macfeely and Tom Schewartz of the Canadian company expressed the desire in a meeting with Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon here on Wednesday.

The minister apprised the visiting officials that a lot of investment potential existed in the upcoming oil and gas projects like setting up LNG terminals, oil and gas exploration and sell-off of SNGPL and SSGC.

He informed them that that the government had deregulated the petroleum sector and was offering lucrative incentives to the prospective investors and facilitating them.

The minister further said that the government was taking concrete steps to bridge the demand and supply gap and actively working on Iran-Pakistan-Indian (IPI) and Turkmenistan-Afghanistan (TAP) gas pipeline projects besides import of LNG.

He also briefed them about the upcoming projects including the privatisation process of the state-owned oil and gas companies.

The vice-presidents said that they were visiting Pakistan to acquaint themselves with the investment potential in the oil and gas sector. “We have a keen desire to participate in the privatisation of oil and gas units particularly the SNGPL”, they added.

SNGP Managing Director Rashid Lone briefed them about the profile of the company.

 

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Thursday, May 18, 2006

KARACHI: As many as 100 licences have been issued to different international companies for oil and gas exploration in Pakistan, mainly especially in Balochistan.

This was stated by Balochistan governor Owais Ahmed Ghani at the inaugural session of “4th Pakistan Oil, Gas & Energy Exhibition & Conference, POGEE 2006, co-locating International Fire & Security Exhibition” at the Expo Centre on Wednesday.

The ceremony was attended by a number of key officials and people from private and public sector local and foreign organizations.

The governor said the government fully supported the foreign companies investing in oil and gas sector of Pakistan. “Balochistan is rich in oil, gas and minerals deposits and a lot of work regarding exploration of the two is going on in the province,” he said.

Recently Mari Gas company discovered some reservoirs in the northern parts of Balochistan, he said and added that a joint venture of two Canadian companies in cooperation with Balochistan government was in process to discover more deposits. He disclosed that the project is the 7th largest copper project in the world.

About the exhibition, he said it was an important event to showcase latest technologies in Pakistan as well as in the region and promote investment in respective sectors of the country.

Earlier, Aasim A. Siddiqui, Managing Director of Pegasus Consultancy said Pakistan poised to become one of the largest producers of natural gas in the world. Later, Owais Ahmed Ghani formally inaugurated the exhibition.

 

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Thursday, May 18, 2006

ISLAMABAD: The government has informed the Asian Development Bank that its ministry of finance is planning to hold an international conference on capital market development to thoroughly discuss the role of innovation and new instruments in the areas of derivatives, futures, pensions’ fund, bonds markets, private equity and real estate investment trust (REIT) products in boosting national growth and economy.

The conference will focus on issues such as provision of a roadmap for future plan of action. The proposed conference would be held after the announcement of the budget.

An Asian Development Bank team headed by. Rainer Hartel, senior financial specialist, called on the Adviser to the Prime Minister on Finance, Revenue, Economic Affairs and Statistics Dr. Salman Shah here on Wednesday. Minister of State for Finance Omar Ayub Khan and senior ministry officials were also present. Dr. Salman Shah said the convening of the conference would greatly help in making an objective assessment of the progress achieved so far by the capital markets in the country.

During the meeting, the role of the small and medium enterprises bank was reviewed. The meeting decided that effective measures should be taken for the privatization of SME bank.

The meeting also decided that reforms should be introduced for the release of second tranche of $ 30 million of SME reform programme from the ADB.

The meeting discussed the scope of effective labour protection and labour inspection policies. The ADB team was informed that the matter would be taken up with the Ministry of Labour and Manpower and the ADB will be apprised of the outcome after due consultation.

The meeting also discussed issues about the lowering of stamp duty on loan bonds. The ADB team was informed that the anti-money laundering law was under consideration of the Parliament.

 

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Thursday, May 18, 2006

KARACHI: State Bank of Pakistan governor Dr Shamshad Akhtar Wednesday said the central bank presently had no plans to devalue Pakistani rupee against dollar.

Addressing the members of SITE Association of Industry at a luncheon meeting, she said “however, adjustments are possible in future if the national economic situation calls for”.

She said price of dollar was declining in the international market. Therefore, she added, the Pakistan business community should take benefit of the development. She clarified that the trade deficit over the current fiscal year was $6.2 billion, which could reach $8 billion by the end of June 2006 against the apprehended figure of $12 billion.

This could be made up through remittances, privatization proceeds and foreign reserves. But it would not be good for the country's economy in future, she said.

She explained that there was no need for a worry about the increasing trade deficit as this had reflected the increase in demand of various items especially the essential ones like sugar and cement in the country which was good omen for national economy.

She said 8.4 percent growth in gross domestic product (GDP) in last fiscal year owed to the issuance of huge amount of loans for investment, not because of low interest rates.

She said the inflation rate was coming down in the country and now it was 6.1 percent. This could be reduced further through strict monitoring policy already adopted by SBP. She said the rate of interest was directly linked to the rate of inflation. “This could not be reduced till the demand/inflationary pressures were high," she said.

 

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Thursday, May 18, 2006

KARACHI: Master Plan 2020 has entered its final stage and is expected to be ready in the next three months or so, declared EDO Master Plan Iftikhar Qaimkhani while talking to Daily Times Wednesday on the sidelines of a seminar on the project.

Twelve committees for education, water, power, transport, health, housing, recreation, etc. headed by experts and technocrats and engineers have been helping with the project. Furthermore, the city government has been in contact with the city’s seven cantonment boards, DHA and other authorities. The city nazim directed that the maps of utility services should be incorporated in the Master Plan 2020.

Meanwhile Naved Zaheer, who represents the consultants preparing the plan, briefed the participants of the seminar that the survey of all parts of the city have been completed.

PPI adds: It is expected to be the first such plan with legal cover. The master plans prepared in the past were confined to books, but now the City Council is authorised to approve the plan under SLGO 2001 and therefore it would have legal safeguard.

During the last 80 years, five master plans have been prepared for Karachi. A E Miram prepared “Report on Development of Karachi” in 1923, Lt Col Swaine Thomas made “Karachi Physical Plan” in 1945, consultants of a Swedish firm prepared “MRV Plan” in 1949, the defunct KDA with the financial assistance of the UNDP devised the “Karachi Development Plan 1974-85” in 1974, and again in 1991, the “Karachi Development Plan 2000”.

The Karachi Development Plan 2000 lost its validity at the end of the year 2000. Although this plan provided a complete framework for the growth of the metropolis up to 2000, it had neither been accorded official approval nor institutional arrangements necessary for its implementation.

Political vicissitudes also restricted the possibility of its implementation. As a result, its recommendations were continuously violated with impunity. During this period, illegal construction sprouted all over the city and squatter settlements formed and consolidated along major arterial roads and expressways.

The project for formulation of Master Plan 2020 is being undertaken by the CDGK as one of the components of the Tameeer-i-Karachi Programme (TKP) package.

APP adds: The consultancy services have been awarded to the local M/s ECIL, in collaboration with foreign consultants M/s PADCO.

The plan seeks to: Strengthen urban planning process, plan to provide sufficient and affordable serviced lands to cater to the housing needs of all income groups with greater emphasis on low income housing, provide planned alternatives to katchi abadis in view of E-IA of the locality, provide an adequate supply of potable water, provide modern garbage collection and disposal facilities, provide adequate educational, health and recreational facilities, provide adequate transport facilities, adequate and reliable drainage and sewerage system, growth of industrial areas and free trade zones, effective road networks and other means of communication.

The consultants are tasked with the: Evaluation of all previous Development Master Plans of Karachi; initiating development potential within and around the Karachi City District; profiling population, size, structure, and spatial distribution (Union Council-wise); reviewing housing polices and programmes.

 

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Thursday May 18, 2006

QUETTA: Minister for Water and Power Liaquat Ali Jatoi on Tuesday assured the government would improve the power supply system in Balochistan to resolve the problems of load-shedding and power fluctuation in the province.

Addressing a meeting, co-chaired by him and Chief Minister Balochistan Jam Muhammad Yousuf here on Tuesday, the minister said that different projects worth Rs 1 billion were being launched to provide electricity to 700 villages, besides improving the power supply system and enhancing the capacity of the grid stations in the province.


In order to end the problems of power fluctuation and load-shedding, he also announced to provide 13 new transformers with a cost Rs 330 million to the province.


The minister said that his ministry would not allow anyone to create hurdles in provision of funds to improve the power supply system in Balochistan.


Jatoi announced to launch power supply projects through the alternative sources of energy, including windmills and solar energy in the areas where it is not possible to provide electricity through transmission lines.


The meeting decided that the Qesco would ensure daily 20 hours supply to the agricultural consumers by improving power supply system while the agricultural consumers would pay outstanding dues of Qesco. Moreover, all illegal connections of tube-wells would be legalised by the Qesco according to the rules and regulations.


The minister informed the meeting that funds had been released for installation of the Dadu-Khuzdar transmission line and the work on the project would be started soon. This would help overcome the issues regarding power supply in Kalat, Khuzdar, Awaran and Punjgur districts.


He said that PC-I of the projects for installing Dera Ismal Khan-Zhob and Kot Addu-Loralai had been prepared, and the work on them would be started immediately after formal approval from the NEC meeting to be held next week.


The minister maintained that new grid stations in Wadh and Duki had been completed while grid stations of Nal and Zehri would be completed within two months. He also announced to build a grid station in Basima. The minister said that approval had been accorded to the construction of big dams in Windar, Nolang, Splinji and Bingol.


Jatoi regretted attacks on the electricity installations by saboteurs, saying that it was causing losses to the growers, agriculturists and common people. He announced 50 per cent relaxation to agriculturists in power dues.


Speaking on the occasion, Chief Minister Jam Muhammad Yousuf said that major issues confronting the province were the load-shedding and power fluctuation, affecting the development process in Balochistan besides inflicting billions of rupees loss to growers. The common people are also facing immense problems in getting the drinking water, he said and added that the people were forced to lodge protest.


APP adds: Balochistan Information Minister Syed Matiullah Agha called on Federal Minister for Water and Power Liaqat Ali Jatoi here on Tuesday and informed him about load-shedding and low-voltage problems facing the province. He stressed the need for alternative or additional sources of energy to meet the growing needs of electricity in Balochistan.


He also presented certain proposals to the federal minister in this regard which included early completion of Khuzdar-Dadu transmission line and establishment of grid station at Khuzdar, laying of 220 KV Muzaffargarh-Loralai transmission line, 132 KV Zhob-Dera Ismail Khan and setting up power houses in Quetta and Pishin. Jatoi assured the minister of considering his proposals and taking steps on priority basis to resolve the electricity problems of the province.


Separately, at a briefing by Qesco Chief Executive Officer Brig Syed Tassaduq Hussain Shah, Jatoi directed the Qesco authorities to take steps for improving power supply in the province and carry out physical checking of the tube-wells. “It will not only help control power loss, but also collecting accurate data about tube-wells,” he said. He also issued directive for reducing line losses to eliminate monetary burden on the company.


Also, Jatoi inaugurated a complaint cell being set up for providing immediate remedy to the consumers. On the occasion, the minister was told that the cell had taken action on 114 out of a total of 118 complaints before the inauguration.

 

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Thursday May 18, 2006

ISLAMABAD: The Chinese economy is rapidly progressing and their economic reforms are role model for Pakistan whereas Pak-China bilateral trade will further enhance by signing FTA, this was stated by Abdul Rauf President Islamabad Chamber of Commerce and Industry while presiding a meeting here in Chamber House on Wednesday.
He said that in the current international trade scenario, regional trade agreements are signed and implemented including European Union, ASEAN and SAFTA, considering the importance of FTAs negotiation on the Free Trade Agreement between Pakistan and China is in last session.

He said that China is trustworthy economic partner and friend of Pakistan. Chinese economy is fastest growing economy sweating the developed economies of the world and currently China is dominating the international market; Pakistani entrepreneurs should also follow the economic reforms of China, he said.

China has invested in Pakistan in various mega projects including Gawadar Port, Chashma Nuclear Plant, Mashaq jet making, Tank Rebuild Factory, Heavy Mechanical Factory and Sandak, he informed. ICCI Chief said that Pak-China link road remains blocked for three months in a year affecting the bilateral trade, this route needs to be upgraded.

 

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Thursday May 18, 2006

KARACHI : As many as 200,000 jobs would be created in the next three years in the IT sector in Pakistan which is the fastest growing country in the telecommunication sector in Asia after China.

The Federal Minister for Information Technology, Awais Ahmed Khan Leghari, stated this while speaking as chief guest at a seminar organised at a local hotel on Wednesday by the Pakistan Telecommunication Authority (PTA). "We are planning to create 200,000 jobs in the IT sector in the next three years", he declared.


Awais Leghari announced that the Ministry of IT and telecommunications is declaring 25 more existing universities into tier one specifically for the IT discipline.


The career placement officers of the Pakistan Software Export Board (PSEB) will be deployed in these institutions.


The Minister said that on an average 100 to 200 students per university would be picked up depending upon the availability of the students for the internship programme and would be placed in the top 10 or 13 IT and IT enabled services companies.


He also announced that unlimited amount of training resources would be offered to all the PSEB member IT and IT enabled service companies to add on the work force. Awais Leghari reiterated that the Ministry would be embarking on an aggressive programme for job creation in the IT sector.


"My message through this conference is that please look again towards the IT discipline as it has a huge potential and my strong opinion is that if you are a good IT graduate there is no way a Pakistan company would not pick you up," he remarked adding that all good IT graduates are hired and employed and that we are supplementing the efforts to further increase the quality of IT graduates in the country.


Awais Leghari said that the task of laying of the third submarine cable would commence by next month.

 

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Thursday, May 18, 2006

ISLAMABAD: The government on Wednesday said that poverty was decreasing in the country and prices of essential items in Pakistan were the lowest in the region.

Omar Ayub Khan, the minister of state for finance, told the Senate that the government will bring the inflation down to eight percent but did not mention when it would do so.

He said that the country was producing 65 percent of its electricity from oil, 82 percent of which was imported. The high price of oil in the international market had affected all sectors of the economy, but the government had been trying to absorb most of the effect to place a minimal burden on the public, he said.

He said that industry was rapidly growing in the country, and the demand for motorcycles, trucks and tractors had increased. The minister said that Pakistan had the lowest prices of flour, pulses, rice and other essential items in the region. He said that the government had banned the export of cement to reduce its price in the country. He said that 5.5 million jobs had been created in the last few years, which he said was a result of the government’s effective economic policy.

Senator Ishaq Dar of the Pakistan Muslim League-Nawaz said that the government must ensure that the new budget was not “pro-elite” and the recommendations of the Finance Committee must be incorporated in the budget. He said that the prices of commodities had increased by 100 percent during the tenure of President Pervez Musharraf. Compared to 1998, flour prices had recorded a 112-percent increase and the prices of pulses had risen by 140 percent, he said. Senator Javed Shah demanded that the government grant India the Most Favoured Nation (MFN) status, saying that it was the only way to “abolish the monopoly of a few elements”.

Members of the Alliance for the Restoration of Democracy staged a token walkout from the House to protest against the speaker for not considering their adjournment motions.

 

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ISLAMABAD (May 19 2006): President General Pervez Musharraf assured on Thursday the government's full support to promoting technical and vocational training across the country as he okayed a roadmap to substantially improve quality and number of workforce per annum to meet demands of fast-paced industrial development.

He was speaking at a meeting of National Vocational and Technical Education Commission, which has been tasked to revamp existing vocational infrastructure and set up training centers in all parts of the country.

President Musharraf set a five-year timeframe for improvement in the vocational and technical education system and stressed that its impact on the national economy should be visible within a year.

"We must improve curricula at these institutes and ramp up the capacity to produce skilled workforce of international quality as it will not only open opportunities for people at the grass roots level but also raise their profile and demand as workers in advanced and industrialised countries," he stated.

On short-term and long-term objectives of better vocational and technical education, he said a trained manpower would bolster value addition in traditional sectors of the Pakistani economy as well as fulfil the needs of fast-expanding industries and engineering sector.

Currently, the number of skilled workers are being produced at various institutions but the number falls short of the industry's requirements, which has been growing rapidly in recent years in sectors, including information technology, tourism services, commercial support, livestock, transport, medical transcription workers etc.

"We must harmonise skills of our younger generation in accordance with their local economic potential and at the same time be conscious of the need to meet the demand of international investors, who see Pakistan as a favourable destination for using it as base for export to regional countries," the president said.

Later, NAVTEC Chairman Altaf M Saleem told newsmen that revamping of technical and vocational training would be carried out in the form of providing better training facilities, trained faculty and equipment at these institutions.

He said, in addition to the government financial support for improvement in the sector would come from private sector, industry and foreign sources.

"The government has assured of full support and the president has also highlighted the importance of participation of the industry and private sector in improving the standard and production capacity of vocational and technical education," he said.

The meeting was attended by ministers for Education, Industries and Special Initiatives, Labour Manpower and Overseas Pakistan, Adviser to PM on Finance and Deputy Chairman Planning Commission.

 

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LAHORE (May 19 2006): In the Punjab Budget 2006-07, education sector is likely to get an increase in its Annual Development Programme (ADP) allocation from Rs 9200 million (2005-06) to Rs 12,760 million (12.760 billion), an increase of Rs 3560 million or 38.69 per cent.

Sources disclosed this to Business Recorder here on Thursday. They said the government had remained focused on improving the state of education in the province and its main emphasis in the forthcoming budget would be education, hence it would witness a hefty gain in the ADP allocation.

They further disclosed that among other social sectors, the health sector would see a gain of Rs 795 million, from Rs 3300 million to Rs 4095 million, an increase of 24 per cent. "Water supply, sanitation and urban development was another area of focus for the government for past few years, thus its ADP allocation also expected to increase from Rs 5000 million to Rs 6209 million, an increase of 24.18 per cent," they added.

According to them, on the economic side, agriculture sector would gain most of the increase in the ADP allocation from Rs 925 million in 2005-06 to Rs 1575 million in 2006-07, an increase of 70.3 per cent. Among other economic sectors, the second major gainer was industries, TEVTA and mine and minerals; its funding would enhance from Rs 760 million to Rs 1173 million, an increase of 54.34 per cent.

Irrigation sector was also expected to receive 20 per cent additional funds of Rs 1400 million, from Rs 7000 million to Rs 8400 million. Meanwhile, ADP allocation for roads would decrease from Rs 12,500 million to Rs 11,870 million, a decline by 5.04 per cent.

The sources said that in terms of percentage of the total ADP of 2006-07, the education sector would take a big share of it, ie 20.25 per cent. In comparison, the health sector would only get 6.5 per cent of the ADP funding. Interestingly, this critical sector would only witness an increase of 0.27 per cent in the share of total ADP outlay. "This sorry state reflects in the existing health facilities in the province," they added.

According to them, water, sanitation and urban development share would constitute 9.86 per cent of ADP, agriculture 2.5 per cent, roads 18.84 per cent, irrigation 13.33 per cent, and industries, TEVTA and mine and minerals 1.86 per cent.

They averred that those ADP allocations were part of the Medium Term Development Framework (MTDF), which was formulated in 2005 for four years.

 

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TRIPOLI (May 19 2006): Federal Minister for Ports and Shipping Babar Khan Ghauri on Thursday said the shipping industry of Greece has shown interest to import manpower in this field from Pakistan.

Talking to APP, in Tripoli, where he is accompanied with Prime Minister Shaukat Aziz in his visit to Greece, Libya, and Morocco, Babar Ghauri said the representatives of Ministry of Shipping and Ports of Greece and private sector would soon visit Pakistan to finalise the import of manpower.

Referring to his meeting with the Minister of Ports and Shipping of Greece, Babar Ghauri said the talent of Pakistanis working in the ports and shipping industry was highly appreciated in the meeting by the Greece minister.

He said aspects of joint ventures in shipping and ports were also discussed in the meeting. Babar Ghauri said Pakistan has trained manpower in the shipping and efforts are being made to send this trained manpower to other countries and main concentration is Greece because this industry has achieved success in this country.

He said the Greece officials have also appreciated the introduction of Machine Readable Passports by Pakistan.

Replying to a question Babar Ghauri said the Minister of Shipping of Greece has assured his full help and co-operation to get the insurance claim of Tasman Spirit case. The minister also held meetings with the representative of Greece Shipping Association to promote business activities between the two countries.

Federal Minister for Privatisation and Investment Zahid Hamid said the business community of Greece has shown interest to invest in shipping, petroleum, refinery, construction, mega projects, oil and gas sector, agriculture and tourism.

He said during his meeting with the minister of investment of Greece, both the countries agreed to start negotiation for joint ventures in these departments.

Appreciating the decision of America to lift economic restrictions on Libya, the minister said, it would promote development in Libya. During his meeting with Minister of Economic Affairs of Libya, the Federal Minister Zahid Hamid also discussed the matters of enhancing trade and economic ties.

Libya has started privatisation process, and showed the interest to seek guidance and co-operation from Pakistan in this regard particularly in the banking sector.

 

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KARACHI (May 19 2006): Pakistan possesses vast resources of natural gas and recent discoveries are enough to meet the country's growing needs for next 25 to 30 years at least. The country is well positioned to take advantage of the growing demand of gas by using Liquefied Natural Gas (LNG).

These views were shared by the foreign experts at third "Pakistan Oil, Gas and Energy Conference (POGEE) on the theme of "Global Energy Requirements; Innovating for Regional Development" organised by Pegasus Consultancy, here on Thursday.

With the gas demand in Pakistan forecast to increase significantly over the next decade and indigenous production unlikely to keep pace, Pakistan is currently considering various gas import options to meet this demand.

While several gas import proposals are being considered, the experts pointed out, the LNG imports would play a major role in improving Pakistan's energy security through the diversification of its sources of gas supply for its growing economy.

The country has vast resources of natural gas and recent discoveries of gas reservoirs, which are enough to meet its needs for at least next 25 to 30 years. Therefore, there is a huge potential to reduce dependence on imported oil and improve the balance of payments and encourage the substitution of natural gas for conventional liquid fuels, the experts added.

As far as LPG sector is concerned, they cautioned that if current regulations get hold, investment in the LPG sector of the country would start drying up particularly in production.

"Industry de-regulation in 2000 led to inward investment of about $150 million in the LPG sector and more steps in this regard would result in a further $200 million of inward investment," they said. Despite all the problems in the LPG market today caused by pricing anomalies, the stage has been set for a take off in this sector.

Pakistan is experiencing the beginning of an exciting and dynamic period in the growth of the LPG industry and this growth is a harbinger of a better and more productive and prosperous period in the country's energy sector.

Earlier, Adviser to the Sindh Chief Minister for Alternative Energy and Environment Noman Sehgal inaugurated the conference. He said provincial government was taking various steps to facilitate the investors in the oil and gas sector.

"Pakistan is the second largest country having deposits of minerals, oil and gas. The energy sector plays a vital role in the growth of GDP of any country. The federal government also encourages foreign investment in this sector," he added.

 

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Friday, May 19, 2006

ISLAMABAD: A German company, Rohde & Schwarz, is interested in increasing its investment in Pakistan in the areas of radio communication, radio monitoring, encryption, and test and measurement and broadcasting equipment.

Said Manfred Fleischmann, President and CEO of the company, at a meeting with Commerce Minister Humayun Akhtar Khan here Thursday. The company has already made an investment of Rs 500 million in Pakistan. Mr Fleischmann also expressed his interest in transfer of technology to Pakistan as well as development of local expertise.

The company has its offices at Islamabad and Karachi.

Mr Khan appreciated the company for showing confidence in the encouraging business environment in Pakistan and their inclination to transfer of technology and development of local expertise. He said Pakistan has the best investment opportunities in the region and that it has liberalized its trade regime. He said there is no restriction on foreign equity, remittance of profits or even the capital. He assured the company of support for their future plans of investing in highly specialized fields of radio communication systems