Pakistan Economy - News & Updates - Archive

[Contrarian]

So then are you sure that there are 3G networks in Pakistan?

 

[Proud to be Pakistani]

So then are you sure that there are 3G networks in Pakistan?

It was to be done in 2004.

Nokia Prepares Telenor Pakistan for 3G

 

[Proud to be Pakistani]

Mobilink offers Edge Services


Mobilink - New Offers

 

[Neo]

PtbP is right Malay, he's answered your question.

 

[Contrarian]

Okay cool!
But how come video calling is not there then?
I was asking because India has edge services as well, but there is no 3G network, which entails video calling...
EDGE has been present for atleast the last 3 years in major cities in India. But 3G is still not present, and im quite keen on using it.

How many operators are there for the cell network in Pakistan?

AFAIK,in India the spectrum for 3G services has not even been allocated yet by the govt, let alone the companies develop the required infrastructure.
In India, ALL the spectrum is kept by the defence services, and they are bloody reluctant to give it.

The govt in India is again giving spectrum and licence to some new players in the GSM field, and it was taken from the defence services, there is a huge mess over it.

 

[Neo]

Karzai urges businessmen to invest in Afghanistan ​

Friday, December 28, 2007

ISLAMABAD: Afghan President Hamid Karzai, on Thursday urged the Pakistani business community and investors to take full advantage of the trade potential present in Afghanistan to promote bilateral trade.

Addressing a select gathering of Pakistani business community at a function organised jointly by Board of Investment and Islamabad Chamber of Commerce and Industry (ICCI) at a local hotel, the Afghan President said the investors from Pakistan were welcome to invest in any field. “The promotion of trade between the two countries has grown not rapidly but ‘drastically’ in last six years,” said Karzai. He said the trade which was just US$25 million in 2001, has increased to $1.3 billion.

The Afghan President said that besides improvement in the traditional trade between the two countries, there was wide scope for investment in many other areas including hotel industry and other sectors, as Afghanistan was a gateway to Central Asia. Karzai especially mentioned the Chinese investment of $2.8 billion in copper fields. He said that China will also establish rail link which will be extended to Pakistan providing.

The Afghan President said that business community from Pakistan and Afghanistan should join hands to fight extremists and radical elements. Referring to his meeting with President Pervez Musharraf, the Afghan President said that he had very positive conversation with him and shared views to eliminate threat of terrorism and extremism. He also observed that terrorist activities were hampering business and trade activities in the region.

“From Afghanistan, we will be with you, if you will take one step, we will take 100 steps, in this war against terror,” he added. Referring to the issues and problems being faced by the business community, the Afghan President said that such issues should be discussed in a joint meeting of ministers, officials and representatives of business community from both sides.

Referring to improvement in road network in Afghanistan, the president said the country would link to Tajikistan providing a chance to Pakistan to have link to Tajikistan through Afghanistan. On the issue of bilateral facility for transit trade, the Afghan President said the matter could be discussed in the next meeting of Joint Economic Mission.

Earlier, Federal Minister for Commerce Shahzada Alam Monoo, speaking on the occasion, said that there was a need to rationalise the trade regime between the two countries. “Pakistan is ready to enter Free Trade Agreement with Afghanistan as it will be a win-win situation for both countries,” he added.

President ICCI, Muhammad Nasir Khan, in his welcome address on this occasion, said the Pakistani business community was interested in promoting trade and economic relations with Afghanistan.

Karzai urges businessmen to invest in Afghanistan

 

[Neo]

China to enhance investment to $15bn in Pakistan ​

Friday, December 28, 2007

LAHORE: China will increase its investment in Pakistan from $1 billion to $15 billion by 2012 while trade volume between the two countries by then will also triple from current $5.2 billion to $15 billion.

Chinese Ambassador Luo Zhao Hui stated this while speaking at a function on Pakistan-China trade at the Punjab Governor House. He, however, stressed the need of balancing the bilateral trade which was highly tilted in favour of China. He said Pakistan’s exports to China stood at $1.4 billion against Chinese exports of $3.8 billion to Pakistan.

He said the benefits of Free Trade Agreement between the two countries would be visible in the next five years. However, he advised Pakistani entrepreneurs to explore the Chinese market actively in order to bring a balance in trade between the two sides.

He said the Pak-China Investment Company established with an initial capital of Rs12 billion was different from other similar companies as the emphasis of the company would be on involving the private sector in joint ventures between the two countries.

Federal Finance Minister Dr Salman Shah, speaking on the occasion, pointed out that the Chinese Development Bank had a larger investment portfolio than the World Bank and said Pakistan should focus on obtaining assistance from that bank to accelerate its growth.

He said China could benefit from the low labour cost and young age of Pakistani workers, adding with Chinese assistance economic growth of the country could be further accelerated. He said the Chinese for mutual advantage of the two countries could exploit the demographic advantage of Pakistani population.

“Pakistan is well poised to become the sixth largest global economy in near future,” he said, adding the economic growth of the country would be further accelerated. Punjab Governor Khalid Maqbool said over 5,000 Chinese were working in Punjab and the government had made adequate arrangements to ensure their safety. He said Chinese were establishing the largest fertiliser factory of the country and work on widening the Karakorum Highway was being initiated with the assistance and cooperation of Beijing.

PCICL to facilitate development plan: The Pak-China Investment Company Limited (PCICL) was launched to facilitate the implementation of a five-year development programme between the two sides at the Governor House here on Thursday, adds APP.

Caretaker Federal Minister for Finance, Economic Affairs, Revenue and Statistics Dr Salman Shah was the chief guest while Punjab Governor Lt Gen (R) Khalid Maqbool presided over the launching ceremony.

The PCICL is a joint venture between the China Development Bank (CDB) and Pakistan’s finance ministry and the company has become operational with an initial paid-up capital of $70 million to be increased to $200 million by 2009.

Dr Salman Shah said bilateral trade between Pakistan and China was $1 billion which would be expanded to $15 billion in the next five years and the PCICL would work to achieve the objectives of the five-year development programme. The primary objective of the five-year programme is to steer and promote rapid, stable and orderly development of bilateral trade and economic cooperation to broaden the scope to achieve a balanced trade and mutually beneficial results.

China to enhance investment to $15bn in Pakistan

 

[Neo]

Micro loans to poor increase to 133m ​

Friday, December 28, 2007

ISLAMABAD: Micro loans to the poor around the world soared to 133 million last year, up from 13 million just nine years ago, according to a report released by the Microcredit Summit Campaign, a project of the US-based Results Educational Fund, a private civil society organisation, said a press release.

The dramatic progress was also evident in the campaign’s focus on loans to the very poor, those living on less than $1 a day, which reached 93 million families in 2006, just shy of the campaign’s goal of reaching 100 million poorest.

Microcredit programmes offer a combination of services and resources to the poor including savings facilities, trainings, networking and peer support which allow families to work to end their own poverty.

The campaign from around the globe brings together microcredit practitioners, advocates, donor agencies, heads of international financial institutions, non-governmental organizations and others involved with microcredit to promote best practices in the field to stimulate the inter-changing of knowledge and to work towards reaching the goals of poverty alleviation in the world.

The core themes of the campaign are reaching the poorest, empowering women, building financially self-sufficient institutions and ensuring a positive and measurable impact on the lives of the poor and their families.

Launched in 1997, the campaign is committed to reach 175 million of the world’s poorest families with credit for self-employment and other financial and business services, ensuring 100 million families rise above the $1 a day threshold and lifting half a billion people out of extreme poverty by 2015.

Currently, around 1.2 billion people (roughly 240 million families) are living on less than $1 a day. Pakistan Poverty Alleviation Fund (PPAF) is the partner of the Microcredit Summit Campaign in the country.

Since 2000, PPAF has disbursed more than Rs30 billion for various interventions through 70 partner organizations working in 27,000 villages and more than 65,000 communities in over 112 districts across the country.

PPAF’s cumulative operational activities entail over 1.7 million microcredit loans, over 14,000 infrastructure projects, 280,000 trained individuals, staff and communities, 91 health and education facilities as well as financing for more than 113,000 housing units in the earthquake-affected areas.

Currently, PPAF has the largest share in microfinance services to the poor and marginalized communities across the country. It has so far disbursed over Rs18 billion while maintaining a 100 per cent recovery rate on lending.

Micro loans to poor increase to 133m

 

[Neo]

Pakistan CDS widens 100 bps ​

Friday, December 28, 2007

NEW YORK: Pakistan’s five-year credit default swaps widened by roughly 100 basis points to 480 basis points, traders said on Thursday after Pakistan opposition leader Benazir Bhutto was killed in a gun and bomb attack.

“They are about 100 (bps) wider now versus what we saw yesterday with a closing print of about 375 basis points or so. I see a print today on the screen of 480,” said one New York based credit trader.

Credit default swaps, or CDS, offer investors protection against defaults or restructurings. Investors bid up CDS prices when they grow concerned about the worthiness of underlying credit.

“I’m seeing prices with a very wide range here with Pakistan bid at 480 and an ask of 500,” said another New York based trader. Pakistan’s dollar-denominated sovereign debt normally does not trade very actively and the holiday season has drained liquidity from the market.

Pakistan CDS widens 100 bps

 

[Neo]

Bhutto killing worries Pakistan investors, markets ​

Friday, December 28, 2007

LONDON: Benazir Bhutto’s killing will boost perceived risk in nuclear-armed Pakistan, analysts warned on Thursday, but some said it was not in itself surprising enough to substantially change investor sentiment.

News of her assassination in a suicide gun and bomb attack outside a political rally in the garrison city of Rawalpindi sent global gold and oil prices higher, also unsettling global foreign exchange markets.

“The killing of Bhutto will likely lead to further political and social instability in Pakistan and across the subcontinent,” Swiss investment bank UBS said in a research note. Credit ratings agency Standard & Poor’s said Pakistan’s sovereign foreign currency rating of B+ could be lowered if the assassination was followed by instability, making it more difficult for the country to borrow money in global markets.

“If this assassination ushers in a period of heightened political instability, the ratings will be lowered,” John Chambers, chairman of S&P’s sovereign rating committee, told Reuters in a telephone interview.

Pakistani five-year credit default swaps, used to insure against restructuring or defaulting debt, widened by around 100 basis points on the news, implying traders felt the country’s debt was higher risk. The attack took place after the Pakistani stock market closed for the day and with little trade reported on the Pakistani rupee. Both were seen potentially falling on Friday.

Mixed views: “Politically it is bad news,” said Shanat Patel, global emerging equities strategist at Nomura International in London. “We will have to wait and see what happens but it is unclear whether it will derail the economic reform process.”

Pakistani forecasts growth of 7.2 percent in the year to June 2008, with the country classed by some as one of a new breed of lesser-developed “frontier markets” offering better returns than mainstream emerging markets such as Eastern Europe.

But some investors were already starting to worry after President Pervez Musharraf’s Nov 3 declaration of emergency rule and another suicide attack on Bhutto on her return to the country killed at least 139.

“It is well within what we expected might happen... This is not Pakistan itself under threat. This is an assassination in an election campaign and has to be seen in that context,” said Jennifer Harbison, Asia desk head for London-based consultancy Control Risks.

The news would put off any immediate investment deals in Pakistan, she said, but most serious investors would already have been awaiting the outcome of the election scheduled for January, which some now expect to be postponed.

But some other analysts were more apocalyptic, pointing to Pakistan’s ongoing failure to control an Islamist insurgency in the Northwest Frontier province, its nuclear arsenal and sometimes fraught relations with fellow nuclear neighbour India, and warning it outstripped other global worries.

“The big take-away from this horrible event is that Pakistan could slide into a civil war of sorts,” said Win Thin, senior currency strategist at Brown Brothers Harriman and Co in New York. “We can’t think of a more scary situation in the region, and believe that the fate of Pakistan could have a much bigger impact on geopolitics that anything Iran could do right now.”

Bhutto killing worries Pakistan investors, markets

 

[Neo]

Expats’ body seeks linkage between Silicon Valley and Pakistan’s IT industry ​

Friday, December 28, 2007

Syed Dilawar Abbas, President of the Organization of Pakistani Entrepreneurs of North America (OPEN), Silicon Valley chapter, is in Pakistan nowadays. Dilawar is also the head of strategic planning and business operations for Yahoo! Platform & Infrastructure and Yahoo! Advanced Products Divisions in Silicon Valley. He is visiting different business centres in Pakistan and striving to form synergies between business empires in Silicon Valley and Pakistani IT industry, academia, entrepreneurs and so on. In an exclusive talk with The News, he discusses different issues related to Pakistan’s IT industry and professionals in this field. The write-up based on conversation between Syed Dilawar Abbas and The News follows.

The top Pakistani American business leadership in Silicon Valley is well aware of its responsibilities and following a multi-pronged agenda under the umbrella of OPEN, Silicon Valley chapter (OPEN Silicon Valley) to boost its home country’s IT industry.

“Sixth year into its formation, this body has stepped up its mentorship and networking initiatives targeted at the Pakistani entrepreneurs and professionals in Silicon Valley,” says Dilawar.

He says OPEN is increasing its broader role and responsibilities with respect to Pakistan. Many members of the OPEN community have set up significant operations for their high-tech ventures in Pakistan. He says: “We are also increasingly attracting talent from Pakistan, and perhaps most importantly, we want to act as a bridge between Silicon Valley and the country’s emerging technology industry and the Pakistani high tech entrepreneur.”

He says OPEN is primarily focussed on forming industry networks and bringing stakeholders together to find solutions to their collective problems. Every year it holds an Open Forum which is OPEN Silicon Valley’s annual day-long business conference’.

‘Rational Exuberance’ and ‘The Rising Tide’ were the themes of the last two forums held in the last two years. The 5th annual OPEN Forum will be held in June, 2008 and promises to bring together hundreds of Pakistani entrepreneurs, corporate professionals, social leader and academics from across the US and Pakistan.

Dilawar tells The News that President Musharraf, Syed Babar Ali, Imran Khan, Dr Ishrat Husain, Awais Khan Leghari and many top corporate executive and entrepreneurs from the US have delivered keynote addresses at OPEN events.

He says the global IT industry is experiencing resurgence and there is dire need of talent in Silicon Valley. “Our Open Forums have brought entrepreneurs and venture capitalists; corporate recruiters and and jobseekers together under one roof.” Dilawar adds.

He says apart from working on broader topics, OPEN holds regular monthly sessions to address niche topics. Most members of the OPEN community are early-stage corporate professionals who require high-touch mentorship on career management. To address their needs, OPEN has recently held sessions on ‘How to craft your resume’, ‘10 mistakes entrepreneurs make’, ‘Legal issues that need to be tackled before launching new business’, ‘Challenges faced by Pakistani women professionals, etc.’ In addition to niche workshops, OPEN arranges ‘Mentorship Breakfasts’ where selected individuals get a unique chance to chat with top business managers.

Dilawar tells The News that the number of Pakistani IT professionals in and around the Silicon Valley (San Francisco Bay Area) is between 15,000 and 20,000. About 4,000 people show up at different events hosted by OPEN, which can boast of 45-chartered members who hold top management positions. Charter members have distinguished themselves in their respective fields. OPEN’s general membership is open to anyone interested in furthering professional and entrepreneurial goals.

Dilawar says during his visit to Pakistan he has held meetings with leading personalities from academia and discussed ways to find more slots for Pakistani professionals in Silicon Valley. Another proposal is to regularly put list of jobs available in Silicon Valley on notice boards of institutions like NUST.

Dilawar is all out for large scale industrial and business process automation in case Pakistan wants to stay ahead of its competitors. He has held meetings with top entrepreneurs in Lahore as well as with the members of Sialkot Chamber of Commerce and Industry. “Entrepreneurship is in the DNA of Sialkot’s business community and must benefit from increased adoption of IT,” he says.

OPEN is also hosting a delegation of leading IT firms from Pakistan in January 2008. The delegation is being organized by the Pakistan Software Export Board (PSEB). “Again, this event is part of our strategy to have a broader impact by engaging more actively with the tech industry in Pakistan and support emerging entrepreneurship in Pakistan,” Dilawar concludes.

Expats’ body seeks linkage between Silicon Valley and Pakistan’s IT industry

 

[Neo]

Saturday, December 29, 2007

S&P: Bhutto’s assassination may hurt Pakistan’s ratings​

SINGAPORE: Standard & Poor’s Ratings Services said on Friday the sovereign credit ratings on Pakistan (foreign currency B+/Negative/B; local currency BB/Negative/B) could be lowered, if the assassination of Benazir Bhutto precipitates heightened levels of violence and political turmoil.

The death of former prime minister Bhutto, one of the main political contenders in the upcoming general elections, is a significant blow to Pakistan’s transition to democratic rule, and leaves a considerable political vacuum in Pakistani politics. It therefore casts doubts on whether general elections scheduled for January 8, 2008, will proceed, while violent reactions by supporters could potentially spark escalating civil disorder. The prevailing negative outlook on the ratings on Pakistan encapsulates to a large extent risks to the political process, including attempts on the life of political leaders after a number of such incidents in the past. Hence, the assassination in itself will not result in a rating action. However, a further weakening of Pakistan’s institutions, in conjunction with rising levels of violence and disorder, and the postponement of the Jan. 8 elections would lead to a rating downgrade.

A prolonged political stalemate or social disorder would make the rating vulnerable, primarily from an external liquidity and fiscal angle. Foreign direct investment and portfolio flows would likely decline, negatively affecting Pakistan’s external liquidity position, given its large current account deficit of about 4.8% of GDP. In parallel, the sovereign may encounter increasing difficulty in refinancing its external and domestic debt, as lenders’ risk aversion toward Pakistan increases. In addition, fiscal slippages may arise, pushing deficits beyond the government’s target 4% of GDP, and jeopardizing the currently favorable debt trajectory. In the short term, however, a potential escalation of violence and wide scale social upheaval could impair the sovereign’s administrative capacity and interfere with its day-to-day operations. pr

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Pakistan’s finances may be`undermined’: Moody​

TOKYO: Pakistan’s fiscal position and external balance of payments may be `undermined’ if political stability is not restored, said Thomas Byrne, credit analyst for Moody’s Investors Service. The perceived risk of Pakistan defaulting on its dollar- denominated debt rose to the highest in a month after former Prime Minister Benazir Bhutto was murdered at an election rally yesterday. Moody’s rates Pakistan’s debt at B1, four levels below investment grade, with a negative outlook, which indicates that the credit assessor is inclined to lower it. “Unless political stability is restored, the country’s fiscal position, balance of payments and external balance of payments may be undermined,” Byrne said in a telephone interview today. “The negative outlook underscores the degree of political uncertainty.” pr

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Citrus export to Russia: Twelve processing plants allowed ​

ISLAMABAD: The Russian Federation allowed 12 Pakistani citrus and mangoes processing companies to export their product to Russia who qualified the relevant Phytosanitary standards.

Officials in the ministry of Food, Agriculture and Livestock (MINFAL) told Daily Times here on Thursday total 73 processing companies applied for the export of citrus and mangoes.

Among the total only 12 companies had qualified Federal Services for Veterinary and Phytosanitary Surveillance (FSVPS) of the Russian Federation standards and they were allowed to export their products to Russia.

The officials claimed that any processing plant could apply for export to Russian Federation at any time but they had to meet international standards. The list of 12 processing plant was not final and it could be increase or decrease accordingly, officials said.

The officials said that list of sites for the pre-shipment monitoring of products subjected to quarantine were specified and they were; Bhalwal, district Sargodha for citrus, Karachi for citrus and mangoes, Lahore and Multan for mangoes exports.

A six-member Russian team had recently visited Pakistan to inspect citrus export procedures and facilities.

They had inspected several processing units in different parts of the country and allowed those units, which meet their required criteria. Officials said that Russia has the potential to become the largest market for Pakistani citrus.

The export consignments from Pakistan of the products (citrus and mangoes) subjected to quarantine on the territory of the Russian Federation would be accompanied by accompanied by the relevant Phytosanitary Certificate, issued in full conformity with the international standards.

The pre-shipment monitoring of the products subjected to quarantine would be conducted by the officials of the Federal Service for Veterinary and Phytosanitary Surveillance of the Russian Federation within a one-month time span immediately after signing of the present procedure by the parties. Every single authorized officer of the FSVPS, either of the Plant Quarantine Section, Department of Plant Protection (DPP) Karachi or the FSVPS of the Russian Federation, would be personally examined for 3 to 5 times.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Trade, industrial activities halted in deserted city of Karachi​

* Traders fear losses of billions of rupees due to closure of businesses on Friday and Saturday

KARACHI: Trade and industrial activities in the metropolis were completely crippled on Friday following the assassination of former Prime Minister Benazir Bhutto, as businessmen say they would continue to suffer in the coming days.

Although, the business and industry throughout the country was badly affected because of Thursday’s tragic incident in Rawalpindi, Karachi, the business and commercial hub of the country bore the major brunt of the disturbances and violence, triggered following the killing of former premier in a suicide attack in Liaquat Bagh.

As the industrial and trading areas were closed down immediately after the spread of the news of Benazir Bhutto’s assassination, the ensuing incidents of violence hit hard the industry and commercial areas of the city. The city witnessed the worst kind of violence and chaos on Thursday and Friday, the business activities were completely halted with the reports of incident of damages and looting in industrial areas especially in North Karachi Industrial area, where miscreants damaged and looted some factories. Traders fear losses of billions of rupees due to closure of businesses on Friday and Saturday.

Industrialists from various industrial estates of the city told Daily Times Friday that industrial production came to a standstill as all the units in these areas remained closed. Not a single shipment could have been made because of the violence and non-availability of cargo vehicles in the metropolis.

SITE, Korangi, F.B. Area, North Karachi and Landhi industrial areas of the city wore a deserted look as not a single unit was opened with the remote possibility of these areas could be reopened before Monday, if the situation comes to normalcy.

The major trading area of country Joria Bazar was also completely closed as not a single shop was seen opened. The trading activities in other commercial areas were also suspended as the various trade associations announced to shut down their businesses to mourn the demise of former premier.

The supplies of vegetables and fruits to and from new Subzi Mandi at Super Highway were also suspended due to absence of transport vehicles especially the trucks carrying these items from interior were reported to be stranded in different parts of the country. Banks and financial institutions also remained closed following the directives of State Bank of Pakistan (SBP) as part of official 3-day mourning. Karachi Stock Exchange (KSE) was also closed.

Activities at Karachi Port and Qasim Port were also badly affected because the workers could not make it to reach the working place because of absence of public transport.

Leaders of trade associations, condemning the heinous act of assassination of Benazir Bhutto were worried about the economy as the killing of former prime minister in a suicide attack has sent a very bad signal in the outer world. They fear the image of the country would be further distorted. “Just think about the magnitude of the problem and what the horrifying consequences it entails for the country. Business community is very scary about the coming days as how future events, triggered by Friday’s tragic incident shape up the political scene,” Masroor Ahmed Alvi, Chairman F.B. Area Association of Trade & Industry commented.

Daily Times - Leading News Resource of Pakistan