Pakistan Economy - News & Updates - Archive

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MoU inked to boost foreign investment in Pakistan​

KARACHI: The Pakistan Link, the biggest newspaper of Pakistani community in North America, and famous call centre and IT service provider company PhoneCost, have inked a memorandum of understanding (MoU) to boost foreign investment in Pakistan by setting up call centres and providing IT services in Karachi. Abdullah Butt, Chief Executive of PhoneCost and President of Association of Call Centres and Outsourcing (ACCO), and Arif Zafar Mansoori, President and Managing Director Pakistan Link, who is also National Director of Pakistan-American Leadership Centre, signed the MoU.

Under the agreement, Pakistan Link along with PhoneCost would invest in Karachi for setting up modern call centres and BPO. These call centres will have a helpline for overseas Pakistanis through which they could get information for solution of their problems and lodge their complaints. The US and Canadian nationality holder Pakistanis will get information regarding Pakistan authorities and investment opportunities there under one window operation at these centres. ppi

Daily Times - Leading News Resource of Pakistan

 

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‘Petroleum sector suffers Rs 1bn loss following BB’s assassination’​

ISLAMABAD: Ahsanullah Khan Caretaker Minister for Petroleum and Natural Resources said on Monday the petroleum industry suffered a loss of Rs 1 billion during countrywide protest following assassination of former Prime Minister Benazir Bhutto on December 27 in Rawalpindi.

Addressing a press conference, he said as an aftermath of December 27 incident, condensate from Zamzama and Bhit fields could not be lifted in a timely manner lowering the gas production by 150 mmcfd gas from these fields.

He said as the gas demand spiked high, Sui Northern Gas Pipelines Limited (SNGPL) also experienced partial supply disruption when two pipelines sabotage incidents (from December 15 and December 21 to 27) caused suspension of gas supply from Pirkoh-Loti fields reducing the gas supply by 50-55 mmcfd.

The minister pointed out that extreme cold weather coupled with supply disruptions has compounded the gas supply demand situation forcing SNGPL to undertake load management to maintain the integrity of pipeline system and safeguard public life and property as much as possible. For the purpose, a well structured load management policy approved by ECC is already in place, being mindful of the socio-economic impact as well as safety concerns, the domestic and commercial consumers get top priority for the gas supply, he added.

Mr Khan said this year, due to an extreme cold weather, SNGPL has recorded a sharp increase in the gas consumption of domestic sector.

The company does not have sufficient gas supplies available to meet additional demand, expected to last for four to six weeks. This year seasonal swing on SNGPL system has touched an unprecedented high level when the city load shot-up from normal day demand of 1,000 mmcfd to over 1,600 mmcfd, an increase of about 60 percent.

The minister pointed out that gas load management is not a new strategy for managing winter demand on SNGPL system.

Given supply constraints in winter, SNGPL has, since 1983, singed all contracts for supply of gas to new consumers in industrial and power sectors on basis of nine months supply period while connections for captive power generation are provided gas on ‘as and when available basis’.

During winters the gas supply remains disconnected to these consumers to meet enhanced demand of domestic sector.

Therefore, all such consumers are fully aware of gas shortages during the winter months and as such, should have alternate fuel arrangement to run their units. Another undesirable dimension also surfaced this year when WAPDA despite having allocation of gas on nine months basis (from March to November), installed rental power plants at Sheikhupura and Bhikki on 12 month’s power supply contract without any backup fuel system.

On gas disconnection, these power plants had to be shut down further aggravating the power crisis.

Therefore, Ministry of Petroleum and natural Resources had to intervene and make arrangements for partial restoration of gas for these plants placing further strain on already stretched gas supplies.

He said SNGPL has contracts with Rousch for supply of 85 mmcfd, for 19 mmcfd, Guddu for 80 mmcfd and Liberty Power for 50 mmcfd on 12 months basis, which contractual obligations are being fully honoured. Talking about measures to arrest the situation, he said notwithstanding the contractual position and being fully cognizant of problems of power and industrial sectors, the ministry took a number of special measures to minimise the impact of gas shortage.

He said 25 mmcfd gas has been diverted from SSGC system to SNGPL out of which 10 mmcfd shall be supplied to rental power plants and 15 mmcfd to power plant at Faisalabad, Muzaffargarh and KAPCO as per priority of Ministry of Water and Power. This diversion will enable them to generate 100 MW of electricity. He said SNGPL will supply on best efforts basis about 2 to 3 mmcfd gas to Muzaffargarh and KAPCO power plants to facilitate their start up and will give at least 2-12 hours advance notice before curtailing gas supply to industrial units.

Mr Khan said industrial consumers who were allowed gas on 12 months basis prior to 1983 will continue to be supplied gas on 12 months basis and SNGPL and APTMA have mutually agreed to supply 90 mmcfd gas (50 percent of their demand).

This will enable textile industry to run 50 percent of their units on three days rotational basis, which otherwise would not give gas supply under their agreement, he added. He said textile processing units having stentars machines will be allowed to use up to 20 percent of their contractual load and SNGPL will manage load after careful analysis of city load on daily basis so that load curtailment is done as an option of the last resort and that too, in a non discriminatory, fair and transparent manner.

All fertiliser units on SNGPL system have been asked to go on annual maintenance in a phased manner (Pak Arab - Multan from January 1-15 and Dawood Hercules - Sheikupura and Pak American - Daudkhel from January 15-31) to release gas to cater for additional gas requirements. He said this measure will increase 50-70 mmcfd gas supply which will be added to supplies of other priority sectors.

Responding to a question, he informed growth in Pakistan’s gas sector has been phenomenal during the last seven years as the transmission and distribution system expanded from 60,000 kms in 2000 to 93,000 kms in 2007 registering over 55 percent increase in network expansion. At the same time, total number of consumers also increased from 3.46 million in 2000 to 4.97 million in 2007 showing in increase of about 43 percent.

The network was connecting 177 cities, town and villages in 2000, which has reached to over 2,550 cities, town and village, and increase of 117 percent. During the period, a total of Rs 65 billion was spent to expand the gas network.

With expansion of gas network to new areas, the gas consumption has also shown sharp increase form 2,100 mmcfd to 3,350 mmcfd showing an increase of 60 percent. app

Daily Times - Leading News Resource of Pakistan

 

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Bears stage comeback at KSE on dismal economic performance​

KARACHI: Bearish sentiments prevailed in Karachi stock market on the first trading day of the week in the wake of profit taking after previous two sessions bull run, mainly heavy selling in the post- State Bank of Pakistan (SBP) Quarterly report on economic performance highlighting concern over inflation, export shortfall and prevailing law and order situation in the country.

The KSE-100 index shed 96.49 points or 0.68 percent on Monday and closed at 14163.11 against previous session’s close of 14,259.60 points. The KSE-30 index closed at 16,703.86 points or 1.1 percent with a loss of 185.73 pts.

The market turnover went down to 14.88 percent and traded 245.21 million shares as compared to 288.08 million shares in the previous session. The overall market capitalization went down to 0.64 percent to Rs 4.325 trillion compared to Rs 4.353 trillion in the previous session. Out of 374 companies, 107 closed in positive, 235 in negative while 32 remained unchanged. .

Ahsan Mehanti, senior analyst at Shahzad Chamdia Securities said the market witnessed heavy selling after SBP’s Quarterly Report on economic performance and due to concerns over reports about US media reports on direct intervention of US military in Pakistan, oil prices fall in international markets near $97 and prevailing law and order situation in the country. The KSE 100 Index opened in the green zone with positive note, but could not sustain more and end at 14163.11 point with a loss of 96.49 points.

According to Mr. Mehnati trading activity was better as compared to the last trading session as the ready market volume stood at 245.216 million and Future market volume stands at 35.36 million shares. Atif Malik, analyst at J.S. Global Securities said the market remained negative throughout the session as at one point it shed 150 points but finally recovered some to settled at loss of 96 points.

Profit taking was witnessed in the market after two previous session’s gains in the market. The SBP’s report put negative impact on the trading sentiment.

TRG Pakistan for the third consecutive session was the volume leader in the share market with 21.98 million shares traded. It lost 60 paisa to close at Rs 13.85 against its opening rate of Rs 14.45 per share. NIB Bank was traded 21.73 million shares as it closed at Rs 23.15 after gaining Rs 1.10 against opening of Rs 22.05.

Bosicor Pakistan’s volumen remained at 19.53 million shares as it closed at Rs 21 after losing 40 paisa against its previous rate of Rs 20.60. Arif Habib Securities’s 13.68 million shares were traded as it closed Rs. 170.55 after losing Rs 1.80. staff report

LSE sheds 42.58 pts

LAHORE: The Lahore stock exchange (LSE) declined on Monday because of technical correction, however, the volume of the market remained more, analysts said.

The LSE 25-shares index lost 42.58 points to close at 4,503.13 against previous closing at 4,545.71. The volume of the market improved to 35.44 million shares, which was 4.33 million more than the previous volume of 31.1 million shares.

The market remained in red zone throughout the day with ups and downs and finally settled at the red zone, said analyst Irfan Saaed Chaudhry adding that it was a technical correction as the market could further decline in the coming days. “A minor decline would be healthier for the market,” the analyst opined.

Attock Refinery was the major gainer which added Rs 7.98 to close at Rs 257.30 against its opening of Rs 249.40. First Capital Equities added Rs 3.25 to close at Rs 71.80 against its opening of Rs 68.55 per share.

MCB was the major loser as it declined Rs 8.75 to close at Rs 390.15 against its opening at Rs 398.9. JOVC lost Rs 7.55 to close at Rs 143.85 against its opening at Rs 151.40. staff report

ISE slumps 26.75 pts

ISLAMABAD: The Islamabad stock market on Monday declined as the ISE-10 index shed 26.75 points to close at 2930.12 points from its previous level of 2956.87 points.

Of the total 138 active companies, 36 climbed upward and 101 turned negative. However, total turnover was increased to 5.347 million shares from 3.779 million shares on previous day showing a total increase by 1.568 million share.

Siemens Engineering was the top gainer. Its share value shot by Rs 47 to close at Rs 1739 after opening for Rs 1692. Attock Refinery was the second major gainer. Its share price was increased by Rs 7.4 to reach Rs 257.1 after opening for Rs 249.7.

Sitara Chemical was the major loser of the day, as its share price declined by Rs 11.95 to Rs 328 from Rs 339.95. Pakages limited remained as the second highest on the negative column, its share price declined by Rs 11 to reach at Rs 359 after opening for Rs 361.

In terms of share volume Bosicor Pakistan remained on top with 0.2.354 million shares, while NIB Bank and Arif Habib Securities remained second and third with traded shares at 0.950 million and 0.424 million respectively.

Daily Times - Leading News Resource of Pakistan

 

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Pakistan convinces US on IPI project​

* Pakistan and Iran to sign GSPA next week
* Country to save $1bn in terms of energy
* India’s participation to affect pipeline’s diameter

ISLAMABAD: Pakistan has convinced the United States on the Iran-Pakistan-India (IPI) gas pipeline project as Pakistan and Iran will sign the Gas Sales Purchase Agreement (GSPA) next week, according to an official.

The officials told Daily Times on Monday that Pakistan had convinced the US over the fact that Pakistan’s energy demand was increasing and the country was having an energy crisis.

$1 billion: He said Pakistan had argued before the US that many other countries were purchasing gas from Iran, and the $7 billion IPI project was essential for Pakistan to save around $1 billion in terms of energy. He said India had also been told that Pakistan needed energy to maintain the increase in its gross domestic product (GDP).

He said Pakistan’s reliance on the import of crude oil would decrease after the materialisation of the IPI project. Separately, Petroleum Minister Ahsanullah, Petroleum Secretary Farrukh Qayyum and Additional Secretary Haytullah Durrani told a news conference that Pakistan and Iran would sign the GSPA next week.

The minister said that Pakistan would welcome India whenever it would join the IPI project, adding that India’s position on the project would be cleared by the end of January.

He said the IPI project was feasible according to the Pakistani market and that 2.2 billion cubic feet of natural gas would be imported from Iran, out of which Pakistani share would be 1.05 billion cubic feet. He said if India did not join the project then the whole imported gas would be consumed in Pakistan. Petroleum Secretary Farrukh said that the price of Iranian gas would be linked with the Japan Crude Oil Cocktail.

Diametre: He said if India became a party then a 56-inch diametre pipeline would be laid, otherwise it would be of 36-inch diameter. About the Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline project, the secretary said seven rounds of negotiations had been held over it in the past, and Pakistan was in contact with Turkmenistan. He said Turkmenistan would give a new date for negotiations on the TAP gas pipeline project by the end of January. zafar bhutta

Daily Times - Leading News Resource of Pakistan

 

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Growth rate to stay close to six percent ​

KARACHI (January 08 2008): The growth rate of Gross Domestic Product (GDP) in the current financial year (FY08) would be close to six percent, below 6.6 to 7.0 percent growth forecast in the first quarterly report of the State Bank of Pakistan.

The SBP report released on Saturday was written prior to mid-December and had, therefore, failed to capture the data of the fall in industrial output and trade activity following Benazir Bhutto's assassination

According to some knowledgeable economists, the SBP report released on Saturday was written prior to mid-December and had, therefore, failed to capture the data of the fall in industrial output and trade activity following Benazir Bhutto's assassination.

"If the GDP growth is close to six percent - it is not bad," say the economists. "What is more important for the economy is to grow between six and seven percent over the next 10 to 15 years ie for an extended period without causing a high incidence of inflation," they added.

"In the past, we have seen that growth of seven percent or more is not sustainable - as it generates inflation. Unless we improve our productivity it is not yet possible to sustain non-inflationary growth at 7 percent," they added.

"A silver lining is the productivity gain achieved in agriculture. For last three years we have seen higher yields for most crops. In fact in FY07 a 10-year high was achieved. This can be directly correlated with the higher availability of bank credit to agriculture sector," the economists explained.

Besides, non-inflationary growth of over six percent on a long-term basis is a key pre-requisite to have macroeconomic stability. This requires reforms. For the last two years the pace of reform process has slowed down and there has been no major initiative, the economists emphasised.

Further, it is essential to set in motion development of the financial sector capital market. This is now overdue. Without this, no infrastructure development is possible. The capital market must provide the funding for investment rather than just be a conduit for speculation. Infrastructure projects need long term capital. Both the Securities and Exchange rules and the tax system simultaneously need to be attuned towards this goal, the economists argued. "Progress in these areas has been painfully slow" they pointed out.

And, third the progress towards documentation of the economy needs to be further expedited, as part of the tax reforms process. "Unless we create the required fiscal space to generate funds for investment in education and health, sustainable development on a long-term basis is just not possible," they added. At present, both the services sector and agriculture are lightly taxed while industry, corporate sector and fixed income taxpayers are bearing the brunt.

They said the Central bank has rightly called for immediate tackling of the twin deficits - fiscal and current account. The fall in consumer goods imports has been across the board but the sudden jump in oil import bill from October onwards has diminished the results which were expected from a tight monetary stance. The slowdown in aggregate demand for imports was expected - but the oil bill has nullified the expected improvement in bridging the trade gap, they added.

Business Recorder [Pakistan's First Financial Daily]

 

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ECC to give green signal to ministry for two IPI deals ​

ISLAMABAD (January 08 2008): The Economic Coordination Committee (ECC) of the Cabinet in it meeting here on Tuesday is going to give green signal to the Ministry of Petroleum (MoP) for signing 'Sale/Purchase Agreement' and Implementation Agreement (IA) with Iran for the Iran-Pakistan-India (IPI) gas pipeline.

The ECC approval would allow the MoP to enter the next phase of the project of laying down the pipeline. The ECC signal would also clear the project for the government to seek financing from the international donors. Finance Ministry will brief the ECC on likely sources for financing the project.

Sources said that the project was being pushed forward on fast track basis between Iran and Pakistan and its assessment and financial requirements were also being worked out on bilateral basis. They said that India was no more a party to the project, and Pakistan was not interested to take it on board, at least for the present. The MoP will also brief the ECC on the work completed on the project between Iran and Pakistan, besides submitting its timeframe for the implementation phase.

Officials claim that India is no more on board for the project, but the ECC agenda, made available to Business Recorder for January 8 meeting still lists the project as 'Iran-Pakistan-India gas pipeline project'. Wheat crisis will be another hot topic for the ECC meeting. Ministry of Food, Agriculture and Livestock (Minfal) Secretary will brief the committee on wheat stocks and availability of flour (atta) to the consumers.

The ECC will also be given briefing by State Bank of Pakistan (SBP) Governor Dr Shamshad Akhtar on current account deficit. She would also brief the ECC on Pakistan's exports and imports trend in the first half of the year and the overall economic situation and prospects of economic growth in the second half of the current fiscal year. She will submit to the ECC data on economic indicators.

Other agenda items of the ECC meeting include Sensitive Price Indicator (SPI) for the week ended on January 3, position papers on cement, edible oil/ghee and sugar industry situation/prices. It also includes forecasting of prices of essential items of daily use. Analysis of regional prices of critical consumer items.

Business Recorder [Pakistan's First Financial Daily]

 

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8000 cusecs water release for power generation to continue: Irsa ​

ISLAMABAD (January 08 2008): The Indus River System Authority (Irsa) has decided that release of 8000 cusecs additional water for electricity generation would continue despite anticipation that the country could face a 28 percent water shortage in Rabi season, instead of earlier estimated 22 percent.

The decision was taken at a meeting of Irsa advisory committee here on Monday, with Sindh Member and Irsa Chairman Bashir Ahmad Dahar in the chair. The Irsa decision came in the backdrop of various complaints by provinces that Wapda had released more water for power generation which, according to the provinces, could deprive them of water for irrigation later in February and March when the wheat crop would need more water. Keeping this in view, the provinces had opposed the release of additional water from the reservoirs, said Irsa Chairman.

This was the second meeting of the advisory committee in the current Rabi season, which discussed the current power crisis, as Wapda had sought more water releases for generating the much-needed electricity to overcome the shortage, at least to some extent.

Talking to reporters after the meeting, Bashir said that Wapda would generate 1200 MW electricity with the additional water release from Tarbela and Mangla dams from December 25. "The country needs not more than 10,000 cusecs water for irrigation and drinking purposes. We release 18,000 cusecs in order to help Wapda generate power," he said.

He said that Irsa's first priority is to ensure water for irrigation, and not power generation. "We have informed Wapda that not enough water is available in Tarbela and Mangla dams. The provinces are of the view that additional water should not be released from storages, while Wapda is facing an acute power shortage," he said. So far, in the Rabi season, Punjab and Sindh have shared 16 percent and 15 percent water shortage, respectively, he added.

He said that Irsa had ensured water availability for wheat sowing both in Punjab and Sindh. The two provinces informed the meeting that they had completed wheat sowing. The wheat crop, generally, does not need water at this time, he added.

Dahar said that rains spell started late this year. Tarbela had 0.88 MAF water this year compared to 2.45 MAF last year. He said that it would be Irsa's priority that at least one MAF water should be available in Tarbela by January 28.

For this purpose, around 7000 cusecs water is being stored in Tarbela as the total intake of the dam is 17,000 cusecs. Around 8,000 cusecs water is being released from Mangla, he added. The water level in Mangla is 1106.10 ft and the dam dead level is 1040 feet, he added.

The advisory committee also decided that Irsa would review the situation on daily basis. The additional water release could be stopped if thermal power generation situation improved in the coming days, he said.

Business Recorder [Pakistan's First Financial Daily]

 

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Load-shedding to be eliminated in 2010: PEPCO adviser ​

Wednesday, January 09, 2008

LAHORE: Pakistan Electric Power Company (PEPCO) Adviser Saleem Arif has said power outages will decrease in a week’s time as emergency steps are being taken to secure 200 to 250 megawatts of electricity by ensuring supply of oil to some of the thermal units.

He, however, sought the help of business community at the time of national crisis due to which the whole nation was suffering. Speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Tuesday, the PEPCO adviser said the shortage of gas and the incidents after the assassination of PPP chairperson Benazir Bhutto were the major causes of acute shortage of power in the country.

He said low release of water from Mangla also curtailed availability of electricity from 3,600MW to 1,200MW. LCCI President Mohammad Ali Mian, Lahore Electric Supply Co Chief Executive Akram Arian, LCCI Vice President Shafqat Saeed Piracha, former senior vice president Sohail Lashari, former vice presidents Shahzad Ali Malik and Sheikh Mohammad Arshad also spoke on the occasion.

The PEPCO adviser in consultation with the LCCI president constituted two committees to manage the current power crisis. One committee will deal with load management while the other will play a role in policy-making along with the PEPCO.

A number of options including alternate day holiday for the industry and early closure of shopping malls came under discussion. In his briefing, he said the government had allowed the setting up of a 430MW thermal power station in Nandipur, which would be constructed in collaboration with a Chinese firm for which the letter of intent (LoI) had already been issued.

The PEPCO adviser said priority was being given to the industry and agriculture as both were the lifeline of the economy. Saleem Arif informed the participants of the meeting that seven to eight new power stations were coming up in near future which would provide relief to the industry, adding in the year 2010 load-shedding would be completely eliminated.

He urged the business community to adopt power conservation measures to ensure availability of required electricity to their industries. Speaking on the occasion, LCCI President Mohammad Ali Mian said the trade and industry was aware of the acute shortage of electricity and also understood the need for load-shedding.

“What the industry actually desires is that the industry be assured uninterrupted power supply for sufficient time to ensure completion of most of the production processes. The schedule provided to the industry should be strictly adhered to.”

He said lopsided and unplanned shutdowns had resulted in closure of almost all the industries, which was a matter of great concern for the LCCI. “We may point out that reduced but planned power supply will salvage some production.”

He said the country would suffer production losses which would be reflected in further pressure on exports and would led to increased imports. Mohammad Ali Mian was of the view that the government should launch a campaign in the media to give a true picture of the electricity situation to the masses so that undue usage of power could be controlled.

LCCI Vice President Shafqat Saeed Piracha said “the severe energy crisis has now started taking its toll as more than 600 industrial units have so far stopped production and many more are on the verge of closure.” He called for measures to control line losses and improve the efficiency of the system.

Load-shedding to be eliminated in 2010: PEPCO adviser

 

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SECP registered 4,841 companies in 2007 ​

Wednesday, January 09, 2008

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) registered 836 companies during the last quarter of calendar year 2007, said a news statement issued by the commission on Tuesday.

During the full calendar year 2007, a total of 4,841 companies were registered which may be seen in comparison with only 942 companies registered during calendar year 1999. Total corporate portfolio as on December 31, 2007 reached 50,847 registered companies. The new incorporation during the months of October, November and December, 2007 were 233, 348 and 255 companies, respectively.

Of 836 companies registered during the quarter, 819 companies were limited by shares, comprising of 22 public unlisted companies, 761 private companies and 36 single member companies. In addition, eight foreign companies and nine associations not-for-profit were also registered. Total authorised capital and paid-up capital of the 836 companies limited by shares registered during the quarter amounted to Rs8.25 billion and Rs2.18 billion respectively.

Company Registration Office (CRO) Lahore incorporated 299 companies, CRO Karachi 238 companies and CRO Islamabad registered 191 companies. CRO Multan, Faisalabad, Peshawar, Quetta, and Sukkur registered 36, 30, 29, 11 and 2 companies, respectively. The highest number of company incorporation was witnessed in the services sector comprising of 147 companies, followed by 116 in trading sector, 62 in tourism sector, 56 each in construction and communication sector, 42 in information technology, 35 in broadcasting and telecasting, and 30 in textile sector.

SECP registered 4,841 companies in 2007

 

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Services sector leads registered companies​

KARACHI, Jan 8: The Securities and Exchange Commission of Pakistan (SECP) announced on Tuesday that a total of 836 companies had been registered during the final quarter of the calendar year 2007, the major chunk of which fell in the ‘services’ sector.

The commission appeared to take pride in having expanded the corporate portfolio to 50,847 registered companies and bringing a considerably large number of 4,841 companies under the corporate fold. Be that as it may, two important points merit attention.

One, that among the companies registered in 4Q07, the largest number of 147 fell in the ‘services’ category, which was almost five times, the 30 companies that entered the ‘textile sector’. An indicator, perhaps, of the worrisome trend of entrepreneurs to shy away from long-term objective of putting money in setting up industries, in favour of a quick ‘wrap and pack’ services sector.

And second that during the year, only 14 of the 4,841 registered companies sought listing at the stock exchanges. The oft repeated reasons being no tax incentive for a listed company over an unlisted entity and the hassle of compliance by the former with the complicated and laborious sections of the ‘code of corporate governance’.

Companies registered by the SECP during 4Q07 on other counters also portray an interesting trend: The ‘services’ sector was followed by the trading sector, which registered 116 new companies; 62 companies were incorporated in tourism sector, 56 each in construction and communication, 42 in information technology, 35 in broadcasting and telecasting and last and the least 30 in textile sector.

The commission observed that of the 836 companies registered during the quarter, 819 were limited by shares, comprising 22 public unlisted companies, 761 private companies and 36 single member companies. In addition, eight foreign companies and nine associations not-for-profit were also registered.

Aggregate authorised and paid-up capital of the 836 companies limited by shares registered during the quarter amounted to Rs8.25 billion and Rs2.18 billion, respectively.

“The SECP encourages corporatisation of businesses to contribute towards the progressive development of the economy and healthy growth of corporate sector of the country”, the commission declared in a statement issued on Tuesday.

It might be difficult to dispute that noble objective of the SECP. But being the front line regulator, the onus of pleading the case with the government for grant of incentives for larger number of registered companies to seek listing at the stock exchanges also falls on the commission.

A quick glance back to June 30, 2004 shows registered companies then totalled 43,700 which have increased by a huge number of 7,147 to 50,847 today. But for the investors in equities that is not of much moment for only 59 of those offered shares to the public including 14 during 2007.

Let the commission take upon itself the task of broadening the base of the equity market. Coaxing entrepreneurs to have faith in the motherland and invest in industrial sector could be left to the government. But for the government that perhaps would have to wait until more pressing issues of governance have been successfully addressed.

Services sector leads registered companies -DAWN - Business; January 09, 2008

 

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ICCI rejects western economists’ report ​

ISLAMABAD: Chief of Islamabad Chamber of Commerce and Industry (ICCI) on Tuesday condemned the report by some Western economists that Pakistan was the most dangerous place in the world.

The ICCI president Ijaz Abbasi expressed these views during a meeting with the members of Lions Club, Islamabad. He said that Pakistan is the World’s second most populous Muslim country with the proud tradition of tolerance and moderation. Pakistanis is among the most favorite nations of the world due to their kind hospitality and the act of any individual not counts the act of the nation.

The ICCI chief stressed the need that in such circumstances the role of commercial attachés is very important to portray the real picture of Pakistan abroad. Pakistani commercial attachés in embassies abroad would have to change their attitude from pushing papers to pushing real goods. The government would have to work hard in getting the market access and a level playing field in major countries and regions. The attachés have to explore the possibilities in joining various preferential trading arrangements (PTAs), the government had to enter into bilateral negotiations at all levels for Free Trade Agreements (FTA).

The president said that international environment was becoming highly competitive, therefore, this was a wake up call for exporters. They would have to play the leading role while the government should play the role of facilitator. “With joint efforts we can transform Pakistan into an export-oriented country. Export is our future. Let us build our future by working side by side,” Mr Abbasi maintained.

Daily Times - Leading News Resource of Pakistan

 

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CDWP to approve 17 projects worth Rs 15.105bn on 12th​

ISLAMABAD: The Central Development Working Party (CWDP) is likely to recommend and take up 17 developmental projects worth Rs 15.105 billion with Foreign Exchange Component (FEC) of Rs 8.430 billion in nine sectors at its meeting scheduled to be held on January 12.

Deputy Chairman, Planning Commission, Engr Dr Akram Sheikh will preside over the meeting, which would consider projects in nine sectors including, water resources, governance, physical planning and housing (PP&H), social welfare, health, devolution and area development, manpower, transport and communication, industry and commerce.

The CDWP can only approve projects costing up to Rs 500 million and the projects costing above this limit are approved by the Executive Committee of the National Economic Council (ECNEC), so the CDWP can recommend those projects to ECNEC for further approval if a project cost is above Rs 500 million.

The forthcoming CDWP meeting will consider projects of national importance worth Rs 15.105 billion. The CDWP agenda shows the PP&H sector having four projects, worth Rs 9.622 billion with FEC of Rs 7.518 billion. The projects are; construction of south west waste water treatment plant, Lahore worth Rs 9.351 billion with FEC of Rs 7.518 billion, P/1 of LED screen at Jinnah Convention Center Islamabad worth Rs 82.015 million, construction of accommodation for 2-wing Chenab rangers at Ratta Arian, Sialkot worth Rs 113.663 million and construction of CC Blocks, surface drains and brick pavement work in Eid Gah (Matiari Town) public park (Shah Alam) Taluka Matiari Saeedabad and Hala worth Rs 76 million.

The ministry of industry and commerce has proposed a single project namely, development of infrastructure in various estates of Sindh Industrial Trading Estates Ltd worth Rs 2 billion. The water resources also have a single project, rehabilitation of Nari district Sibi worth Rs 100.915 million. The governance sector project is strengthening of financial accountability by supporting the NWFP public accounts committee (PAC) and PAC cell of provincial assembly of NWFP worth Rs 26.268 million having FEC $23.88 million.

The CDWP agenda further reveals a single project for social welfare sector, preparation of social protection project and capacity building of M/O social welfare and special education and Pakistan Baitul-Mal worth Rs 59.400 million and all is included in FEC. The only project of health sector is for the establishment of cardiac surgery facility at PIMS, Islamabad (revised) worth Rs 1.235 billion.

The agenda further reveals that the devolution and area development sector consisted of a single project namely Khyber Area Development Project (Revised) worth Rs 901.740 million with FEC Rs 829.130 million.

The manpower sector consists of five developmental projects worth Rs 555.772 million and transport and communication sector having two projects worth Rs 602.772 million.

Earlier, the CDWP meeting scheduled to be held on January 5 but was rescheduled due to political turmoil after assassination of former Prime Minister Benazir Bhutto on December 27, 2007. The meeting has been rescheduled for 12 th of this month but it is likely that the agenda for coming meeting will be revised today (Wednesday) which would include some other important developmental projects in the agenda.

Daily Times - Leading News Resource of Pakistan

 

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Textile registers only two percent growth in first quarter ​

KARACHI (January 09 2008): Textile industry, the largest sector having a 65 percent share in the country's exports, shows a dismal performance by registering only two percent growth during the first quarter of the current fiscal year as compared to the 14.3 percent growth during the same period of the previous year.

The reasons behind the decline in the growth are said to be high cost of doing business and a shortfall in cotton crop during the current fiscal. The textile is an important sector of large scale manufacturing (LSM), accounting for about one-third of aggregate LSM, but it is apprehended that the LSM target for the current fiscal year might be missed.

The State Bank Pakistan statistics show that textile sector growth is some 12.3 percent lower as compared to the growth of July-September of 2008 fiscal year.

This slowdown has also caused a negative impact on this sector's exports, which have increased by only 0.5 percent in the first quarter of 2008 fiscal year as compared to a raise of 2.5 percent in the same period of the previous year.

"The current weakness in textile sector appears to be a continuation of the pattern prevailing in the industry that a good year of performance is followed by a relatively poor performance, at least during the initial months of fiscal years," SBP said in its first quarterly report.

The SBP also confirmed that a lackluster performance of textile sub-group was disappointing, mainly due to a shortfall in cotton production as well as a weak external demand. Moreover, weakness in the production of ginned cotton and cotton cloth also reflects the smaller crop, shift to production of synthetic fabrics, is not part of the LSM data, also affected the growth.

The production of cotton cloth declined by 1.2 percent during July-September of 2008 fiscal as against 20.3 percent increased in production seen in the same period of 2007 fiscal year.

The government has set a target of 14.12 million cotton bales for the current fiscal year, but the traders are expecting that it would hover around 12 million bales. This performance is also consistent with the 28.4 percent fall in the exports of cotton fabrics during the first quarter in contrast with a rise of 103.8 percent in the exports of synthetic textiles during this period. The high cost of doing business is another major behind slow growth of textile sector.

Business Recorder [Pakistan's First Financial Daily]

 

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'Power crisis will ease within week' ​

LAHORE (January 09 2008): The Advisor of Pakistan Electric Power Company (Pepco), Saleem Arif, has said that power crisis would eased within week, as emergency steps are being taken to secure 200MW to 250 MW electricity by ensuring supply of oil to some of the thermal units.

Addressing a Lahore Chamber of Commerce and Industry (LCCI) meeting here on Tuesday, he requested the business community to help government at this crucial stage to deal the crisis. LCCI President Mohammad Ali Mian, Chief Executive Lesco Akram Arian, Vice President Shafqat Saeed Piracha, Sohail Lashari, Shahzad Ali Malik and Sheikh Mohammad Arshad were also present on the occasion.

The Pepco Advisor in consultation with LCCI President Mohammad Ali Mian constituted two committees to manage ongoing power crisis. One of the committees will deal with load management, while the other will collaborate with Pepco in policy making.

A number of options including alternate day holiday for the industry and early closure of shopping malls also came under discussion. Briefing the participants, Pepco Advisor attribute the worst crisis of power to shortage of gas and violence and rioting in the country in aftermath of Benazir Bhutto's assassination.

Saleem Arif said that the release of less water from Mangla also curtailed the availability of electricity from 3600 MW to 1200 MW. He said the government has allowed a new 430 MW thermal power station in Nandipur that would be put up in collaboration with a Chinese firm for which letter of interest has already been issued.

He said that priority was being given to the industry and the agriculture, as both are lifeline to the economy of the country. He informed the participants that as many as seven to eight new power stations are coming up in near future that would provide relief to the industry, adding that by 2010 load shedding will be eliminated completely.

He urged the business community to adopt power conservation measures to ensure availability of required power to their industries. LCCI President Mohammad Ali Mian said that trade and industry is aware of the acute shortage of electricity.

It also understands the need for load shedding. "What the industry actually desires is that the industry be assured uninterrupted power supply for sufficient time to ensure completion of most production processes" he added. The schedule provided to the industry should be strictly adhered and unscheduled breakdowns should be curtailed, he emphasised.

The lopsided and unplanned shut downs have resulted in closure of almost all industries that is a matter of great concern for LCCI, he said adding that reduced but planned power supply would mitigate industrial production problems.

Business Recorder [Pakistan's First Financial Daily]

 

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Warid crosses 10 million subscribers mark ​

ISLAMABAD (January 09 2008): Warid Telecom has crossed the 10 million subscribers mark in the country. The company has invested over $150 million (Shs255 billion) into its operations and plans to take its total investment in network, services delivery and manpower to over $400 million (Shs680 billion) before 2010.

The company is simultaneously rolling out its network in Congo Brazzaville and also scheduled to be launched by April this year. In 2005, Warid also launched its telecommunication services in Pakistan using the same brand name. Within about three months of its launch Warid Pakistan claims to have attracted more than 1 million service users, a private channel reported.

Warid Telecom next week, plans to unveil the company to the public through a live feed on television. In September last year, Warid one of the three new telecommunication players tested the effectiveness of its network and announced the commercial launch anytime.

The company officials said, it would launch its services as soon as the entire infrastructure is ready. Telecommunication market analysts have predicted the prices of telecommunication services to dive further from the current level once Warid and other Telecom giants start their commercial operations this year.

The Telecom companies besides remitting close to Shs300 billion to the treasury in taxes, are also providing quality service to the subscribers. The entry of new mobile subscribers could also see the amount of taxes from the telecommunication sector to double in less than 5 years.

Business Recorder [Pakistan's First Financial Daily]