Pakistan Economy - News & Updates - Archive

[Neo]

Pakistan's national bank to open branch in India ​

By IANS
Wednesday December 12, 2007

Islamabad, Dec 12 (IANS) The National Bank of Pakistan (NBP) would soon open its first branch in India, Pakistan's Online news agency reported Wednesday.

Chief of human resources of NBP Mirza Abrar Baig said a team of bank officials would go to India next year for opening the new branch. Besides India, the bank plans to open new branches in Saudi Arabia, Canada, Bangladesh and other countries, Baig said.

He said a new branch in Kandahar would be opened soon and one branch in Kabul is already working.

Baig said the bank has also decided that female managers should be appointed in 30 branches out of 1300 branches across Pakistan by the end of this year. He said currently women managers are successfully working in over 60 branches.

Pakistan's national bank to open branch in India - Yahoo! India News

 

[Neo]

Plan to offer investment companies shares through IPO​

13 December 2007

ISLAMABAD — The caretaker administration plans to offload Government of Pakistan's shareholding in seven joint investment companies through Initial Public Offering (IPO).

The objective is to largely benefit these companies and add value to developing portfolio of stock markets, sources said.

The senior representatives of the seven companies favoured the proposals at a meeting with Finance Minister Dr Salman Shah recently. However, they said that some of the issues needed to be worked out before formally opting for IPOs.

Joint investment companies include Pak-Kuwait Investment Company (PKIC), Pak-Libya Holding Company (PLHC), Saudi Pak Industrial Agricultural Investment Company (SPIACO), Pak Oman Investment Company (POIC), Pak-Brunei Investment Company (PBIC), Pak-Iran Investment Company (PIJIC) and Pak-China Investment Company (PCIC).

Both sides decided at a meeting that the Ministry of Finance and the Privatisation Commission should further evaluate the feasibility of offloading some shares of the GOP in joint ventures with these seven companies.

Sources said that the issue was earlier discussed between the State Bank of Pakistan and Ministry of Finance and they were informed about the latest business situation in these companies.

They were told that PKIC, which was incorporated in 1979, now have a Rs6 billion paid-up capital. The State Bank of Pakistan is share holder in the Equity of the Company on behalf of Government of Pakistan. PKIC also favours the proposal as it would not only benefit the institutions but would also add value to developing portfolio of the stock markets. However, some changes required in the existing provisions under the Joint Venture Agreement including concessions granted to the joint venture by GoP.

Pak-Libya Holding Company (PLHC): This company was incorporated in 1978. Its paid-up capital presently stands at Rs3.242 billion. In this case, the right to transfer its shares is restricted and any invitation to the public to subscribe for any share is prohibited. However, according to the Joint Venture Agreement, the induction of third party is possible only with the consent of two partner countries.

Saudi-Pak Industrial Agricultural Investment Company (SPIAIC): It was incorporated in 1981 and its paid-up capital stands at Rs30 billion by December 2006.

SPIAICO termed the proposal a positive development and said it will bring the following advantages: Instant valuation of the shares, and ease of raising funds from capital market.

The critical factors will be the percentage of shareholding to be off-loaded, pricing of shares, and the timing of flotation.

PaK-Oman Investment Company (POIC): This company was incorporated in 2001 and its paid-up capital sands at Rs6 billion. GOP is direct share holder in the equity of the Company.

The POIC board has in principle decided that the Company should be made public listed by having one or two following approaches to offer additional equity to the public up to 20 per cent or to offer existing equity to the public up to 20 per cent. It was also decided that as and when Pak Oman would go public through IPOs, listing would be made at the stock exchanges of both the countries.

Pak-Brunei Investment Company (PBIC): This company was incorporated in 2006. Its paid-up capital stands at Rs3.05 billion. GOP is direct share holder in the equity of the company.

With regard to subject proposal, PBIC wanted that a decision to take JICs public should be made after a thorough evaluation of key objectives/strategic; focus, future business plan and profitability targets, and regulatory framework.

Pak-Iran Joint Investment Company (PIJIC): This company was incorporated January this year and its paid-up capital stands at Rs4 billion.

About the proposal, PIJIC has informed that they see significant benefits to the GOP vis-a-vis off-loading the shares through IPOs.

However, they would like to add that some issues need to be addressed internally by the GOP itself.

Pak-China Investment Company (PCIC): The company was established in July 2007. It's paid-up capital stands at Rs4.253 billion. GOP is direct shareholder in the equity of the company. It believed that all Joint investment Companies favour the offloading of their share holding through IPOs in consultation with the respective foreign partner countries.

Khaleej Times Online - Plan to offer investment companies shares through IPO

 

[Introvert]

Mobilink opens new customer care centre in pakistan

Friday, 14 December 2007
Mobilink, the country's leading cellular service company with more than 29 million customers and part of the Orascom Telecom Group, inaugurated a new state of the art customers care centre at Shara-e-Faisal, Karachi. The facility offers sales and finances services and provides consumers with a club lounge, offering separate and exclusive desks for priority services to high-end prepaid and post-paid customers.

The centre is equipped with an electronic queue-management system to help better manage waiting times for customers and smooth functioning of daily chores. The centre is designed to offer fast and efficient services to all walks in customers through its one window operation
Mobilink opens new customer care centre in pakistan - Unique Pakistan

 

[Introvert]

Thai trade office to be set up in Islamabad pakistan

Friday, 14 December 2007
Thai Consul General Joompol Manaschuang has said Thailand will be establishing its trade office in Islamabad to boost two-way trade and economic activities. Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI), he said that the trade office would start functioning by next year. Besides increase in two-way trade, he said Thailand was interested in establishing joint ventures in difference sectors. Joompol Manaschuang said that a Pakistani trade delegation would soon visit Thailand to interact with their Thai counterparts and examine possibilities of joint ventures and increasing trade.

About tourism, he said that around 60,000 Pakistani visited Thailand every year, whereas only 200 Thai visited Pakistan annually, which was a matter of concern. He blamed media for over-publicising different incidents in Pakistan, which panicked the Thai tourists and avoided coming to Pakistan.

Agreeing with a proposal, he said that Thailand could examine possibilities of developing infrastructure at tourist sites, especially Buddhist origin sites, in joint venture with Pakistan. Speaking on the occasion Minister Consellor (Commercial) of Thailand Embassy in Dhaka, Kanyarat Vongskvl said that Thailand was interested to boost two-way trade and tourism with Pakistan.

She stressed the need for frequent exchange of trade delegations to develop person-to-person contact, which could help increase two way trade. Welcoming the guests, KCCI President Shamin Ahmed Shamsi proposed establishment of joint venture in auto parts vender industry, textile, tourism etc.
Thai trade office to be set up in Islamabad pakistan - Unique Pakistan

 

[Introvert]

Pizza Hut opens at PSO outlet in Lahore pakistan

Thursday, 13 December 2007
The Pakistan State Oil Company Limited opened an outlet of Pizza Hut at its petrol stations in the provincial metropolis. Executive Director of Pizza Hut Kalim Ahmad Siddiqui opened the Hut, he told reporters that the company would set up 34 outlets of fast food across the country, while his counterpart, Adeel Hassan said the oil company had already started to install 16 ATMs at its petrol stations in various cities.

He said the oil company was open for every one and that negotiation was underway with McDonalds to set up fast-food restaurants at the oil company's stations. He also said the oil company turnover had been increased to Rs 411 billion and 70 percent of the market shares among 11 oil marketing companies.

He said that against the official announcement of 3 percent margin to the oil companies was being realised at 2.2 percent while the Ministry of Petroleum was reviewing a demand to enhance that margin.
Pizza Hut opens at PSO outlet in Lahore pakistan - Unique Pakistan

 

[Neo]

Dependence on textile, clothing exports ​

Pakistan has small share in global trade

Friday, December 14, 2007

LAHORE: Pakistan’s meagre share of less than 0.2 per cent in global trade is the result of its dependence on textile and clothing exports which have only a 4.5 per cent share in total world exports, say economic experts.

According to the World Trade Statistics 2007 released by the World Trade Organisation, in textile and clothing the export of clothing amounted to $311 billion which was 2.6 per cent of the total global merchandise exports in 2006. The export of textile, other than clothing, was $219 billion which was 1.9 per cent of the total global merchandise exports.

Experts point out that even in textile and clothing the share of Pakistan’s exports is very low. With total textile exports of $7.41 billion, Pakistan’s share in global textile trade (excluding clothing) stands at 3.4 per cent. It was 0.9 per cent in 2000 and has increased almost four times in six years.

Among major buyers of Pakistan’s textile in 2006 were US which bought products worth $1.9 billion, Canada $104 million, the European Union $1.73 billion and Japan $71 million. But the performance in the area of clothing worries the economic experts. With total clothing exports of $3.9 billion, Pakistan’s share in global clothing trade comes to 1.3 per cent compared to 2.8 per cent share enjoyed by Bangladesh and 3.3 per cent by India with exports of $7.8 billion and $10.2 billion respectively.

A look at growth achieved by other nations gives an insight into comparatively poor performance of Pakistan. In 1980, Bangladesh’s share in global clothing trade was zero when Pakistan had a 0.3 per cent share. By 1990, Pakistan’s share increased to 0.9 per cent while Bangladesh’s share reached 0.6 per cent.

In 2000, Bangladesh grabbed a 2.1 per cent share in global clothing trade while Pakistan’s share inched up to only 1.1 per cent. In 2006, Pakistan exported apparel worth $81 million to Canada and $1.63 billion to the US compared to exports of $434 million worth of apparel by Bangladesh to Canada and $3.12 billion to the US.

Pakistan’s clothing exports to the EU amounted to $1.4 billion compared to exports of $5.7 billion by Bangladesh and $5.1 billion by India. With $120 billion of exports and $174 billion of imports, India is the 28th largest exporter and the 17th largest importer in the world while Pakistan is not among top 50 exporting nations though it is the 50th largest global importer.

The largest exported commodity in the world in 2006 was fuel of different types amounting to $1,771 billion. Pakistan imported fuels worth $7.68 billion (accounting for 25.8 per cent of its total imports in 2006).

The second largest export item was telecom and office equipment worth $1,451 billion. Pakistan is not on the global export map in this sector. Global exports of industrial machines stood at $1,448 billion in 2006 with practically no exports from Pakistan.

Automotive products’ exports amounted to $1,015 billion the world over while exports from Pakistan were less than $50 million. Its imports in the sector totalled $1.54 billion. The global agriculture products’ exports stood at $945 billion while Pakistan’s exports in the sector were limited to $2.21 billion including rice export worth around $1 billion. Pakistan imported agricultural products worth $4.13 billion (which was 13.9 per cent of its import bill).

Global chemical exports stood at $937 billion with no exports from Pakistan. Other major global exports included semi-manufactured products other than machinery worth $795 billion, iron and steel $374 billion, pharmaceuticals $311 billion, non-ferrous metal $306 billion, scientific and controlling equipment $240 billion and ores and minerals $201 billion.

Experts point out that with right policies and investment climate Pakistan has the potential to grab a substantial share in a short time in the agriculture and dairy sectors. Other sectors which could make their mark in the global market in the long run are engineering and automobile, they say.

Dependence on textile, clothing exports

 

[Neo]

South Korea to invest in power projects ​

Friday, December 14, 2007

ISLAMABAD: South Korea on Thursday showed interest in investing in Pakistan’s coal-driven and other thermal power projects, which, if materialized, would help in bridging the country’s burgeoning power gap that is currently about 2,500 to 3,000MW.

At present, the country’s power demand is increasing annually by 11 to 14 per cent and the gap between demand and supply is widening which could cast shadow on the economic growth.

A visiting three-member South Korean delegation accompanied by Mian Shahabullah, business development manager of siemens Pakistan visited Investment Division & Board of Investment (ID & BOI) and discussed the investment scenario with the high ups of the government. The delegation said that in South Korea, the demand for power is stagnant and therefore they would like to consider investment options abroad in order to utilize their valuable resources and expertise.

The meeting was chaired by Secretary Mushtaq Malik, while addressing the participants of the meeting he said despite political uncertainties and security concerns the country has been able to attract a record FDI up to the tune of $5.1 billion in the fiscal year 2006-07.

Malik told the News that the government is seeking avenues to reverse the trend of burgeoning power demand gap by setting up new power projects in the country. He said that there are 1,000MW power projects in pipeline and the government has issued Letters of Support (LoS) to various companies.

An official from Private Power Infrastructure Board (PPIB) gave a presentation highlighting power sector policies in order to give a better insight to the potential Korean investors. He said that in the country the total installed capacity of power projects is 19,400MW, 61 per cent in public sector and 39 per cent in private sector. The country has untapped potential in power generation from coal.

Moreover the power transmission system of the country was discussed along with the role of PPIB in terms of further facilitation for the investors and the initiatives taken by the government. The delegation was representing GS Holdings formerly part of LG Corporation. GS Holding specializes in the field of energy and distribution business.

South Korea to invest in power projects

 

[Neo]

‘Cement use to reach 36m tonnes by 2012’ ​

Friday, December 14, 2007

LAHORE: At current pace of growth cement consumption in Pakistan is expected to increase from present 21 million tonnes to 36 million tonnes by 2012 while exports would touch 12 million tonnes from present export volume of three million ton.

President Pakistan Engineering Council Engineer Husnain Ahmad stated this at the international conference on strength and durability of cement structures organized by University of Engineering and Technology.

He said per capita cement use is one of the yardsticks to evaluate the developmental status of a nation. Pakistan he added is way behind developed countries in use of cement for construction purposes.

However he added the cement consumption is increasing rapidly in the country. He said the cement consumption has doubled from 10 millionton in 2000 to 21 million ton now. He said the consumption is expected to increase by another 15 million tonnes in next five years.

He said it was commendable that the local cement industry has regularly increased its production capacity much above the local demand. He said this policy is now paying of as the cement exports have already reached three million ton.

He said exports are likely to increase by another ten million tonnes on the strength of demand from neighbouring countries of Afghanistan and India. He said cement production capacity would reach 54 million ton in next five years that would be higher than the combined domestic and export demand.

‘Cement use to reach 36m tonnes by 2012’

 

[Neo]

Machine tools, auto exhibition receives warm response ​

Friday, December 14, 2007

KARACHI: On the second day of the show on Thursday, the ongoing auto, auto parts and machine tools exhibition received big feedback from domestic and foreign markets as exhibitors started signing contracts.

On the second day, the international participants were meeting their potential local representatives and business partners in Pakistan at the exhibition and also negotiating several transfers of technology deals with Pakistani entrepreneurs at their production facilities. Adding to some very significant trade contracts signed on Thursday, more such large-scale deals are expected to take place during the remaining days of the show while several other contracts and joint venture MoUs are already under negotiation at the exhibition.

The Export Processing Zone Authority arranged a session on Investment Opportunities for Auto industry in EPZs of Pakistan. The session highlighted EPZA’s one window operation facility and easy procedures for doing business at EPZAs of the country and to establish effective interaction with key personnel.

Machine tools, auto exhibition receives warm response

 

[Neo]

Iran proposes setting up oil refinery in Sindh ​

Friday, December 14, 2007

Karachi: The Iranian Consul General in Karachi Massoud Mohammad Zamani on Thursday called on caretaker Sindh Chief Minister Justice (Retd) Abdul Qadir Halepota at the CM House Karachi and expressed his government’s interest in setting up an oil refinery in Sindh.

During the meeting, investment opportunities in the area of livestock, cement and construction of hotels and commercial complexes in Sindh were also discussed. The Iranian Consul General stressed the need for exploiting potential in trade, commerce and industry between Pakistan and Iran and said both the nations should take maximum advantage from the business ties and relations between Tehran and Islamabad.

Caretaker Sindh CM Justice (rtd) Halepota thanked Consul General of Iran in Karachi for presenting proposal regarding establishment of oil refinery in Sindh and assured him of taking up the matter with the federal government.

He expressed the hope that if materialized, the said project will bring prosperity and generate innumerable job opportunities for the people of Sindh in particular. During the meeting, other matters of mutual interest ranging from age-old fraternal ties between the two brotherly Islamic countries in all spheres of life including arts, culture and heritage also came under discussion.

Iran proposes setting up oil refinery in Sindh

 

[Neo]

Moody’s downgrades outlook for banks​

KARACHI, Dec 13: The outlook for Pakistani banks was rated negative by Moody’s on Thursday, said a report of the rating agency.

The rating had been downgraded due to “underlying risks faced by banks in the current, unfavourable political environment”, it said. It did, however, say that the banking system should prove to be relatively resilient in the short-term, but may be tested if the political unrest prevails over a longer period.

Nondas Nicolaides, Assistant Vice-President, analyst and author of the report, wrote: “The operating environment remains somewhat challenging in light of recent political events. Investor and business confidence have been somewhat impaired and caused some flight of capital by foreign investors away from the local equity markets.”

The analyst observed that an extended period of political uncertainty may affect new projects and deter foreign investors, which would have a knock-on effect on future loan growth rates.

Nevertheless, Moody’s noted that the efficiency of Pakistan’s financial system continues to improve. Privatisation and consolidation were paving the way for increased competition and efficiency, as well as driving more viable financial fundamentals, improving industry practices and enabling banks to penetrate previously untapped rural areas.

Credit growth is also strong, significantly boosting banks’ bottom line. “Most banks’ profitability indicators now compare favourably internationally, and in fact are commensurate with those of higher-rated banks in other markets,” says Nicolaides. Capitalisation is improving on the back of good profitability and an influx of fresh capital via rights and subordinated debt issues. This bodes well for the solvency profile of Pakistani banks, he predicts.

Problematic exposures remain high, however. Although Moody’s recognises the noticeable improvements that the rated banks and the banking system as a whole have achieved on this front, the level of gross NPLs (7.1pc as of June 2007) is still sizeable by international standards.

Furthermore, whilst the rating agency regards the banks’ increasingly enhanced and diversified earnings base as a positive rating driver, it cautions that the new lending remains unseasoned and untested in a possible downturn of the economic cycle.

Efforts are being made to enhance regulatory oversight, and the State Bank of Pakistan is working towards establishing a well-recognised system of banking supervision on par with international best practices, he observed in the report. That said, full implementation of more stringent corporate governance regulations by all banks could prove challenging.

Moody’s notes that the country will also have to work towards further modernising its banking infrastructure.—Reuters

Moody’s downgrades outlook for banks -DAWN - Business; December 14, 2007

 

[Neo]

Services sector exports decline​

ISLAMABAD, Dec 13: Services sector exports declined by 12.59 per cent in the first four months of the current fiscal year to $897.560 million against $1,026.817 million over last year, Federal Bureau of Statistics (FBS) said on Thursday.

The decline in export of services proceeds was the outcome of steady decrease in export of services (transportation, communication, construction, business and royalties and license fees) during the period under review.

On a monthly basis, the decline in services exports was more worrisome as it declined by 36.80 per cent to $240.355 million in October 2007 as against $380.338 million in the same month last year.

An official in the commerce ministry told Dawn that Pakistan faces a series of barriers to export its services to the developed countries.

Until these barriers were removed, it would be difficult for Pakistan to get maximum benefits from exporting its services to the developed countries, especially in the areas of allowing movement of natural persons.

There are four ways or modes of supply of trade in services: mode-1 cross border, mode-2 consumption abroad, mode-3 commercial presence and mode-4 temporary movement (presence of natural person under GATS.

He said Pakistan is working on revised offers to be submitted to the WTO secretariat possibly in March next. Pakistan had already submitted initial offers in the services sector as required under the GATS.

On the other hand, Pakistan has opened up its domestic market for foreign services providers, particularly in the banking, insurance, telecommunication, retail and some other sectors, which were flooded by foreign service providers.

This is clear from the fact that import of services were up by 11.52 per cent in the first four months of the current fiscal year to $2.994 billion against $2.684 billion over the corresponding period of last year.

On monthly basis, the growth was even more than 23 per cent to $801.922 million in October 2007 against $648.08 million over the same month last year.

Analysts proposed establishment of an independent task force to prepare the country’s position for making commitments to liberalise various sectors for foreign service providers under the World Trade Organisation (WTO) regime.

They said that the task force should be supervised by a senior advisory group having representatives from regulatory bodies, ministries, civil society and policy-makers, while preparing Pakistan’s position by the ministry of commerce and WTO -Geneva-based Pakistani mission in the multilateral trade negotiation.

According to details compiled by FBS for first three months, the export of insurance, finance and computer services was up by 108.26 per cent, 233.98 per cent and 35.67 per cent, respectively.

The major chunk in the export of services came from government which included spending on embassies, recorded 32.94 per cent and personal and cultural services which were up by 191.23 per cent.

The export of services which recorded a negative growth included transportation, communication, construction, royalties and other business services during the period under review over last year.

Services sector exports decline -DAWN - Business; December 14, 2007

 

[Neo]

Gas field project​

LAHORE, Dec 13: The Presson Descon International has been awarded the Manzalai Gas Field Development Project in the NWFP. According to company officials, under the project, it will produce 300 million standard cubic feet of natural gas as well as 2,900 barrels per day of condensate, and is expected to save millions of US dollars and also play a key role in the development of the northern areas.

“PDIL’s capabilities have been acknowledged by the oil and gas sector in Pakistan, as well as internationally, especially in Egypt where it successfully completed a turnkey project.

It was a major breakthrough for a Pakistani company where highly technical solution was provided to the utmost satisfaction of the client,” they said.

Gas field project -DAWN - Business; December 14, 2007

 

[Neo]

Forex reserves plunge by $142 million ​

KARACHI: The total liquid foreign reserves held by the country plunged by $142 million during the week ending on December 8 (Saturday).

The foreign exchange reserves declined to $15.622 billion on December 8 from $15.764 billion on December 1.

Foreign reserves held by the State Bank of Pakistan (SBP) fell to $13.417 billion from $13.557 billion. Net foreign reserves held by banks other than SBP fell to $2.204 billion from $2.207 billion.

Bankers say this is happening because the central bank has been active in the interbank foreign exchange market, selling dollars to support the falling domestic currency. It has been intervening in the market since last several weeks, pouring in as much as $100 million on some occasions. The rupee had fallen to Rs 61.48 for a dollar last week, which necessitated SBP’s intervention. The central bank came into action and pumped in dollars. As a result, the greenback came down. It traded at Rs 61.19 on Thursday. The interbank market has been facing a shortage of dollars since the beginning of the current fiscal year due to outflows from the Special Convertible Rupee Accounts (SCRA). Foreign investors, who open these accounts with banks operating in Pakistan for investment in our stock markets and government securities, had pulled their money back due to political turmoil. As a result, the central bank has had to intervene several times, drawing on its foreign exchange reserves to sell US currency in the market. Importers had also increased their forward buying, fearing extraordinary steps like freezing of foreign currency accounts, bankers said. Pakistan’s imports have been exceeding its exports by a big margin, putting pressure on its domestic currency. This gap in demand and supply of foreign currency is being met through foreign exchange inflows received in the form of foreign investment and remittances. Since portfolio investment has been coming down at a faster pace due to imposition of emergency, the pressure on rupee has become even more intense. A net outflow of $220 million was recorded in SCRAs during November.

Emergency in Pakistan was imposed on November 3.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Majority of farmers avoid using improved seeds in Pakistan​

ISLAMABAD: Despite government’s tall claims about increase in per acre agriculture production, above 80 percent of growers’ are not using improved certified seeds in the country, official sources said here Thursday.

The distribution of improved seed for different agricultural produce has never exceeded 20 percent of the total seed requirement at the national level. There was an urgent need for using the improved and technology based seeds for increasing per acre agriculture produce.

On several occasions the president and prime minister have underlined the need for optimum utilization of research and technology and urged the agricultural scientists to help the farmers achieve a quantum jump in per acre yield of crops to improve agriculture sector and alleviate poverty. But the fact is that no such efforts were made on part of the government to increase agriculture production, a farmer told Daily Times by phone.

Owing to the lack of resources, the small farmer did not use the certified seed and the latest technology in Pakistan and the wheat per-acre production remained lower than many nations in Pakistan, he maintained.

“Per acre wheat production is 3,120 kilograms in Ireland, 2,920 kgs in Israel, 2,880 kgs in Egypt, 2,720 kgs in Mexico, 2,240 kgs in China, 2,040 kgs in South India, and 960 kgs in Pakistan,” an official said adding that Pakistan is on the lowest number from several agrarian economies.

“Many developed and under-developed countries have two or three times more wheat per-acre production in comparison with Pakistan. The country needs to be self-reliant in wheat production which can be possible with the usage of latest technology and certified improved seeds,” the official maintained.

Another official in the ministry of food, agriculture and livestock (MINFAL) said Pakistani farmers currently sow Irri-6 rice variety over 94.5 percent of the area. Currently, hybrid rice seed variety is cultivated on around 5.5 percent area. The IRRI-6 variety was imported in 1960 from International Rice Research Institute Philippines. Its per acre yield has stagnated at 50-60 maund per acre for more than four decades.

Internationally this variety had been replaced by hybrid rice seed varieties. China, being the pioneer in this technology produces the highest yield hybrid rice. The per acre yield from this variety ranges from 100-130 maund that was almost double the production obtained from traditional IRRI-6 variety.

Pakistan produces two rice varieties — the long grain super basmati grown in central Punjab and coarse grain IRRI variety cultivated in southern part of the country. About 60 percent of the super variety is consumed locally and rest is exported at very high rates. The IRRI variety is mainly cultivated for export purposes. Pakistan could almost double its IRRI variety exports if it shifts to high yielding hybrid variety.

Daily Times - Leading News Resource of Pakistan