Pakistan Economy - News & Updates - Archive

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German firm to finance SME exports​

KARACHI, Jan 24: German financing company DF Deutsche Forfait AG Pakistan Ltd (DFAG) will provide financing facility to small and medium-sized local exporters to boost their exports by $1 billion in three years.

This was stated by the chief executive officer of DF Deutsche Forfait, Salman Mamoon Ahmad, during his meeting with TDAP officials here on Thursday.

Based on forfaiting, export finance services which are utilised the world over, would significantly reduce risks faced by small and medium sized exporters, and help enhance overall exports, Salman said.

German firm to finance SME exports -DAWN - Business; January 25, 2008

 

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Govt fails to achieve production targets of crops​

ISLAMABAD: The government failed to meet production targets of cotton, rice, mung and maize fixed for Rabi season for fiscal year 2007-08. However, sugarcane production surpassed its target set for the fiscal year.

The Federal Committee on Agriculture (FCA) in its meeting held in October last year fixed targets for different Rabi crops. According to the ministry of food, agriculture and livestock (MINFAL) the targets for Cotton was fixed as 14.14 million bales. Whereas the actual production till December 2007 was 12.775 million bales, showing a total 9.65% decrease in production.

The actual production of rice is 5.487 million tonnes but the actual target of rice set in FCA meeting was 5.720 million tonnes. This reduction in rice production shows total reduction by 4.03%.

Three provinces missed the production targets set for rice and only Sindh surpassed its crop target. The target for Punjab was 3.288 million tonnes and actual production was 3.199 million tonnes. The Sindh target was 1.776 million tonnes and the realized production was 1.813 million tonnes showing an increase over its target. The NWFP rice target was 0.129 million tonnes and the actual production was 0.128 million tonnes. Balochistan province was also missed its rice production target of 0.525 million tonnes and realized production was 0.348 million tonnes.

The production of maize also missed its target in the year 2007-08 by 0.95%. The actual production of maize is 3.247 million tonnes against the target of 3.278 million tonnes.

The production of Mung for the year 2007-08 also lags behind its target and declined by 4.71%. The target for mung production was 160000 tonnes but actual production was 152000 tonnes. However, Sindh, NWFP and Balochistan surpassed their Mung production targets. While the target for Punjab was 147000 tonnes but actual production was 136000, officials figure reveal.

However, major cash crop of the country, sugarcane surpassed its production target set for the year 2007-08. The sugarcane target was 55.876 million tonnes and the actual production was 62.300 million tonnes, showing a total increase by 11.49%. The three provinces surpassed its production target while NWFP succeeded in achieving its production target of 5.153 million tonnes.

The target for Punjab was 37.5 million tonnes but actual production was 42.841 million tonnes. Sindh sugarcane production target was 11.320 million tonnes but the actual production was 14.278 million tonnes. The sugarcane production target for Balochistan was 22000 tonnes but realized production was 27000 tonnes.

Daily Times - Leading News Resource of Pakistan

 

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Cement earnings may rise by 89 percent in 2Q 2008​

KARACHI: The earnings of the local cement sector would grow by 89 percent on year-on-year basis in the second half of the current fiscal, said Muhammad Rehan Khan, an analyst at First Capital Research here.

This will translate into a full year growth of 19 percent during fiscal year 2007-08 as against 2006-07, he said in his report on cement sector’s profitability on Thursday.

The profitability of the sector is likely to grow by 22 percent annually in next five years. The volumetric sales are likely to maintain an average growth rate of 15 percent for the next five years, the analyst said.

The cement sector of Pakistan has witnessed notable gashes in profitability during last few quarters because of lower retention prices.

Khan said the phenomenon started in FY07 when a huge influx of new production capacities forced the manufactures to reduce cement prices in order to achieve certain capacity utilisation levels. Consequently, almost all companies of the sector went through huge bottom-line losses, he said.

However, during the second quarter of FY08, the prices started recovering and grew 20 percent to Rs 220/bag as against Rs 185/bag in the first quarter. This price recovery is attributed to the outcome of quota arrangements between the cement manufacturers, which was also necessary to compensate the rising fuel cost, he said.

Khan said he expected the industry wide bottom-line declines to minimize in the second quarter of FY08. The absolute impact would be visible from the third quarter onwards, he added.

The analyst projected FY08 profitability of the cement sector to be lower by 7 percent to Rs 796 million versus the same quarter last year.

It is pertinent to mention here that the magnitude of these declines is notably lower than that seen in the previous quarters, he said and added that during 1QFY08, the sector’s profitability was 72 percent and 70 percent lower on Y-o-Y and Q-o-Q basis.

“This bottomline recovery in 2QFY08 is attributable to the higher volumetric sales (up 37%) as well as better retention levels (29% higher) on Y-o-Y basis,” said Khan.

On the cost levels, higher coal prices are expected to translate approximately into Rs 350-400/tonne increase in the cost of production. It is though lower than the increase in retention prices.

Furthermore, financial charges of the sector are also likely to rise by 101 percent over previous year as the local cement companies have started charging this expense to their profit and loss account.

Daily Times - Leading News Resource of Pakistan

 

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What's in store? economy in 2008 ​

KARACHI (January 25 2008): The year started in Pakistan with dark clouds on the horizon, but no silver lining visible anywhere. On the contrary, every thing points to toil, turmoil and tears, and more of the same till infinity.

This gloomy prospect is not a hypochondria's raving, but a stark reality facing not only Pakistan but much of the rest of the world. Possible exceptions may be China, India and Russia, in that order.

However, the leader (so far) of the so-called 'Free World' and champion of the 'New World Order' and 'Democracy every where', whose currency was the world's prime choice for international transactions ever since the WII - the USA - is now teetering on the brink of disaster. A lame duck administration limping on its way to the EXIT, has indulged in another of its desperate acts of fantasy, by cutting the basic interest rate, but the malaise which this was intended to cure, simply refuses to go away.

Recession is there and emerging quite briskly out of the shadows, to envelop USA economy, and consequently, much of the globe. Pakistan will be one of the most vulnerable nations on this score, even if it has a plethora of problems all its own, to start worrying about the fate of its prime benefactor.

Talking of lame ducks, we do not lag behind in this field either. Elections or not, our problems are not going to be solved in a short time, by any chance. Pakistan is a target of a multi-pronged attack from a hostile world, and there is no difference between (so-called) friends and foes, on this score. Our institutions are facing or have a potential exposure to a host of problems.

SOME OF THESE ARE ENUMERATED BELOW:

A) THE ADMINISTRATION:

i) Budget deficits

ii) Revenue losses

iii) Indiscriminate borrowing - domestic

iv) Foreign aid (donations or loans) sources drying up, or terms becoming too stiff to be acceptable

v) Adverse balance of payments

vi) Dwindling forex reserves

vii) Risk of default on foreign loans at maturity

viii) Inflation - galloping at a ferocious rate

ix) Loss of purchasing power of Pak rupee

x) Mass discontent and violent demonstrations in streets

xi) Expanding terrorist activities

xii) Worsening law and order situation in urban areas

xiii) Loss of tourism income - immediate as well as prospective

xiv) Diversion of development funds to other purposes

xv) Growing hostility of neighbours, and border incidents, with potentialities to blow up into a full-scale war.

xvi) Necessity of devoting even greater amounts to defence, at the cost of civilian sector allocations

xvii) Compounding energy problems

xviii) Fall in production - agricultural and industrial, shrinking the taxation base

xix) Increasing unemployment, poverty incidence and population

xx) Political instability and social unrest

xxi) Brain drain, and so on.

B)THE PRIVATE SECTOR:

i) Bank failures

ii) Insurance companies' vulnerability

iii) Widespread insolvencies

iv) Closures of businesses and industries due to financial and energy crunch

v) Rising prices, and consequent under-nourishment and ill health of people

vi) Rise in illiteracy rate

vii) Mass migrations, and dislocations of family life.

viii) Increased divorces and splitting of settled families due to finance- based psychological problems

ix) Increased mortality rate among children and the elderly

x) Rampant unemployment due to layoffs, failing businesses and general despondency

xi) Housing shortages due to unaffordable rates of rent or cost... and so on.

To find an answer to all these problems is a Herculean task beyond a life-time, then who will take care of these and how? The question rings and rings, but nobody picks up the phone at the other end.

The sum total of all the above, reduced to monetary terms in Pak Rupees runs into a figure with astronomical connotations. Our present and future generations have to pay for it, but where are the opportunities to earn or raise that kind of money?

One final word to sceptics who may not agree with what I say. Just have a look at the esteemed daily 'FINANCIAL TIMES' issue of January 23, 2008 - the section titled 'The World in 2008' and the heading 'ALARM FLAGS LITTER THE GLOBE'.

Business Recorder [Pakistan's First Financial Daily]

 

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Medium-term policies: 'lack of consistency led to uncertainty and inflation' ​

ISLAMABAD (January 25 2008): Pakistan's economy faces serious structural constraints, which are hampering future growth prospects, and global competitiveness said Dr Rasid Amjad Chaudhary, VC, PIDE while opening a Panel Discussion on "Socio Economic Development Challenges" faced by Pakistan held at the PIDE here on Thursday.

He said that difficult economic decisions would need to be taken to ensure macro economic stability and sustained economic growth. He emphasised that we need to improve upon the management of the economy to overcome existing shortages in the energy sector and assuring access at reasonable prices of essential commodities.

Dr Wasim Shahid also highlighted numerous factors responsible for the failure of the macroeconomic reforms including institutional arrangement, accountability, transparency, autonomy etc.

He said that lack of consistency in medium-term policies led to uncertainty and inflation in Pakistan. The former director PIDE and the renowned economist Dr A R Kemal, gave a comprehensive presentation of the issues and challenges faced by the industrial sector.

He stated that Pakistan lags behind in growth because of the structural problems in the manufacturing sector which are lack of competitiveness, slow productivity growth, irrational tariff structure, poor product quality and slow development of small and medium sized enterprises (SMEs).

Former Secretary Commerce and till recently Pakistan's Ambassador to Iran Mirza Qamar Baig discussed the challenges of increasing export and suggested possible solutions to meet them. He pointed out that trade liberalisation efforts were initiated twenty years ago. However, these efforts gathered impetus in 2003. He was of the view that opening up of the domestic market or signing of the Free Trade Agreement (FTA) will not bear fruit unless it is translated into foreign investment searching for access to these markets. We must encourage partnerships.

Shahnaz Wazir Ali former advisor to prime minister said that social sector is facing the same problems as faced by the other sectors of the economy. The health and education policies are still silent on reforms and even after 60 years we are still learning. The existing policies have increased inequality and class divide.

Khalid Rehman chairman Competition Commission of Pakistan and Specialist with the PPIB and ADB talked on the challenges faced by the energy sector. He argued that all the emphasis in Mid Term Development Framework is on the supply side totally ignoring the demand management of the energy. The policies talk about energy security; however, these are unable to chalk out a clear-cut strategy to meet the growing energy demand of the country. We need foreword looking policies as adopted by countries like China and India.

Mirza Khalid, the former chairman, Securities and Exchange Commission of Pakistan (SECP), highlighted the difficulties and challenges encountered in implementing the major capital market reforms program during 2000 to 2003. He emphasised that for successful reforms; the regulator should not carry any political agenda and be above any political or vested interest.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan and Malaysia pledge to take business ties to higher level ​

DAVOS (January 25 2008): President Pervez Musharraf and Malaysian Prime Minister Abdullah Badawi met here on Thursday on the side lines of the annual conference of World Economic Forum and pledged to take their existing trade and economic relations to higher level.

During the meeting, lasting for about half an hour, the two leaders agreed that their existing political and diplomatic ties must match their economic relationships.

They noted that the two Muslim countries enjoyed unanimity of view on various regional and international issues and could work together with the joint strategies.

Both the leaders agreed to take the process of restructuring Organisation of Islamic Conference, the world's important Muslim organisation, forward on fast track basis.

The Malaysian Prime Minister appreciated Pakistan's role in fight against terrorism. With regard to their economic ties, they stressed the need that both private and public sectors of the two countries should undertake joint ventures to increase the volume of their trade and investment.

Later, President Pervez Musharraf also had a meeting with President of Swiss confederation Pascal Couchetin. The two sides discussed wide ranging issues of common interest and agreed to enhance their co-operation in all fields of common interests especially economic and trade.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan and Canada agree to boost economic ties ​

ISLAMABAD (January 25 2008): Pakistan and Canada have expressed resolve to further enhance their bilateral economic co-operation, a foreign ministry statement said after top diplomats from both countries met here on Thursday.

Caretaker Foreign Minister Inamul Haque discussed with visiting Canadian Deputy Foreign Minister Leonard J. Edwards bilateral relations, recent developments in Pakistan and regional issues of common interest.

Haque underscored Pakistan's commitment to building a broad-based and long-term relationship with Canada marked by growing co-operation in the political, economic, military and cultural fields as well as expanded business and people-to-people contacts.

Edwards stressed the importance Canada attached to a closer relationship with Pakistan. Both sides noted the recent increase in bilateral trade and commercial ties and agreed to further reinforce bilateral economic co-operation through the agreed institutional mechanisms.

Edwards expressed sympathies over the assassination of former prime minister Benazir Bhutto. Noting the importance of free and fair elections, the visiting minister said that Canada would be participating in the international observer mission for poll monitoring. Inam underlined Pakistan's resolve to continue on the democratic path and defeat terrorism. He stated that Pakistan would continue to work with the international partners to promote the process of stabilisation in Afghanistan.

Business Recorder [Pakistan's First Financial Daily]

 

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German company to begin operations in Pakistan ​

KARACHI (January 25 2008): The chief executive officer of DF Deutsche Forfait AG Pakistan (Pvt) Limited, Salman Mamoon Ahmad confirmed that his organisation had decided to tap the virgin Pakistani market by introducing export finance services.

These services, utilised the world over since the last century, have not been available to the market in Pakistan till now, and would be based on forfeiting that would reduce significantly the risks faced by small and medium sized exporters, particularly. This service is also expected to help enhance overall exports of Pakistan by a billion dollars in the first 3 years.

The services of DFAG will be of greater and more significant value in exports to new, emerging and difficult markets for Pakistani exports. DF Deutsche Forfait AG Pakistan (Pvt) Ltd is already registered with the SECP and should commence operations imminently.

In discussion with TDAP, as facilitators, represented by Sajjad Haider Malick, Executive Director Export Finance Services, Mamoon indicated that the offices of DF Deutsche Forfait AG Pakistan (Pvt) Ltd, as a subsidiary of DF Deutsche Forfait AG, Cologne Germany would be located in Lahore and would manage the national export finance needs.

The office, will in effect, act as a Representative Office for marketing and customer services in Pakistan for their global operations based in Cologne, Germany. Mamoon said, "We are grateful to TDAP for all the encouragement and facilitation provided in the numerous interactions by Tariq Ikram, the Chief Executive of TDAP and his team since the very first meeting held with our Vice Chairman, Shezad Rokerya, way back in early 2006 which primarily assisted and encouraged our coming to Pakistan".

TDAP has also facilitated DFAG's linkage and partnering with a strong multinational bank in Pakistan to provide the exporter customers of banks with easy access to DF Deutsche Forfait AG services. DF, as a trade finance company will, in time, develop and offer the Pakistani market an range of Export Finance products to further facilitate the country's exports under the Rapid Growth Strategy and the overall development of trade.

Ulrich Wipperman, the Chairman of DF Deutsche Forfait AG Pakistan (Pvt) Ltd, when contacted, further that he foresee a great potential for business in Pakistan with its robust and sustained economic growth over the last six years coupled with the continued national effort of creating increase in exports of merchandise and services.

Business Recorder [Pakistan's First Financial Daily]

 

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ILO to support education, poverty alleviation related projects ​

RAWALPINDI (January 25 2008): International Labour Organisation (ILO) will provide all possible help and support to industries in education, poverty alleviation, health, green jobs and provision of safe working condition to their workers, said Donglin Li, Director ILO here on Thursday.

The ILO will readily extend the required technical support for such projects, which would help provide education to people and eradicate poverty and unemployment from the society, said Donglin while addressing a one-day seminar "ARL - A Socially Responsible Company" organised by Attock Refinery Ltd (ARL) in pursuance of celebration of value-of-the-month activities.

Director ILO stressed on synergy between ILO Decent Work Agenda and the Global Compact. Today, the challenge is to find the best policies to pursue innovation and entrepreneurship, he added.

Donglin Li, congratulated ARL for becoming the member of Global Compact Pakistan Local Network. He expressed his satisfaction over the fact that ARL is a progressive and a values-conscious company.

Li appreciated the ARL's efforts in the fields of education, poverty alleviation, health, green jobs and provision of safe working condition to their workers. Earlier, in his welcome address, Adil Khattak, Chief Executive Officer of ARL briefed the participants about the objective of the activity.

"At ARL, we believe in respect for the community and preserving the environment for our future generations and keeping national interests paramount in all our actions", Khattak said. He gave a detailed account of different activities that are being executed at ARL, while celebrating its core value of "Social Responsibility", during the current month. Participants of seminar gave detailed presentations on the overall company performance in the areas of environment, community development, and worker welfare.

Business Recorder [Pakistan's First Financial Daily]

 

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Advanced technologies needed to avoid food scarcity: experts ​

ISLAMABAD (January 25 2008): Agriculture experts at a workshop here stressed the need for utilising modern technologies for the development of agriculture sector to avoid food scarcity in future.

"We have no option but to switch to modern technologies to upgrade our farming methodologies for boosting agriculture productivity and for securing better agriculture prospectus for the coming generations," the speakers observed.

The first one-day workshop on Agriculture Decision Support System (ADSS) was jointly organised by Centre for Agro-Informatics Research, National ICT R&D Fund of the Ministry of Information Technology and Foundation for Advancement of Computer and Engineering Sciences (FAST). More than 30 participants relating to agriculture and agriculture support system attended the workshop.

Speaking on the occasion Rector, FAST Dr Amir Mehmood stressed the need for devising comprehensive strategy to cater to the food requirements of future adding that adherence to modern technologies was the only way to secure the agriculture future of the country.

"Our food requirements keep on increasing but we have limited land resources to benefit from and there is no other solution but to consult advanced techniques of farming," he said In his remarks, Project Director ADSS, Dr Ahsan Abdullah briefed the participants about aims and objectives of ADSS saying that the database would help the analysts, policy makers and at the bottom-level to the farmers to control attack of pests on various crops.

Chief Executive Officer National ICT and R&D Fund, Dr Qasim Sheikh described the formation of ADSS as very positive and encouraging, however, underline the importance for developing a mechanism for the collection of correct and reliable data.

Dr Manzoor Soomro of Pakistan Agriculture The ADSS-OLAP provides an interactive way of viewing agriculture data from different points of views with graphs and charts, facilitating the analysts to have correct information about pests crossing the Economic Threshold Level (ETL). Later certificates were distributed among the participants of the workshop.

Business Recorder [Pakistan's First Financial Daily]

 

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Current account deficit swells to 31 percent to over $6 billion ​

KARACHI (January 26 2008): Pakistan's current account deficit has jumped up by 31 percent to over $6 billion during the first half of current fiscal year, mainly due to rising trade services and income deficit, besides huge payments of interest on account of Euro Bond and loans.

Economists said that trade, services and income deficits were increasing at a fast pace, contributing to the widening of current account deficit. "Despite the several step taken by the government for the promotion of exports, the country has failed to boost exports, while increase in imports is also having negative impact on the current account deficit", they said.

Officials statistics showed on Wednesday that the current account deficit has crossed $6 billion mark during the July-December period of current fiscal year 2008. The country has faced $6.138 billion current account deficit as against $4.679 billion during the same period of last fiscal year, depicting an increased of $1.459 billion.

Statistics show that for the last two months it once again shot up and increased by some $2.16 billion in November-December 2007. Payments of interest and dividends contributed major role, which rose by 69 percent, to $1.09 billion as compared to $645 million during corresponding period of last fiscal year.

"This is the third consecutive year that the country has been missing its exports target, while imports are continuously in upward move. Therefore, the current account deficit is on the rise and is expected to reach $11 billion by the end of the fiscal year", economists said.

Trade deficit has increased by $1 billion to $6.396 billion, services deficit was up by $723 million to 2.531 billion dollars, and income deficit widened by $830 million to 3.281 billion dollars. The overall deficit of income, trade and services has been calculated to $11.581 billion as against the current transfers of 5.531billion dollars.

Economists said that Pakistan has issued Eurobond in the international market and during December the interest payments of these bonds has been also made. The country's altogether income from abroad stood at $881 million as compared to payments of $2.812 billion during July-December. In addition, services sector imports reached at 4.67 billion dollar against the exports of 1.39 billion dollars.

Business Recorder [Pakistan's First Financial Daily]

 

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Foreign investors ready to invest in Pakistan: Taseer ​

LAHORE (January 26 2008): Federal Minister for Industries, Production and Special Initiatives, Salman Taseer has said foreign investors are hungry for investing in banking, real estate, telecom and the country's steel industry. Taseer's comment came on Friday at a workshop on "challenges and way forward in the steel sector of Pakistan" organised by the Engineering Development Board.

"Pakistan's steel industry is a promising one and there is a huge gap in demand and supply, thus foreign investors can exploit the existing potential of this sector," Taseer said. He also said the foreign investors would be ready to invest in expanding the Pakistan Steel Mills to enhance its production capacity. "India has an edge over Pakistan in the steel industry because of good governance while its bank in abroad direct the flow of investment into India by guiding investors," Taseer added.

His Secretary, Shahab Khawaja, said, "Unfortunately, we have ignored the steel sector and could set up the Pakistan Steel Mills whose production capacity has not been enhanced. Presently, China and India are buying steel on a large scale pushing its prices high internationally. The situation will not be improved unless we develop local resources."

Pakistan Steel Mills Chairman Muhammad Javed then told the audience that workshop would stress the need for developing local resources so that dependence on imported raw material could be minimised. He said iron ore and coal should be explored in the country so that raw material could be provided to the steel industry from the local resources.

"Presently, we are buying coal from Australia and Canada and iron ore from India and China. However, Pakistan steel will sign an agreement with the Sandac project on January 29 to buy 50,000 to 60,000 tonnes of iron ore," he said.

Javed said the purchase of 15,000 tonnes of iron ore from Chagi had also started on experimental basis, which could be enhanced up to 150,000 tonnes. "We are getting coal from Loralai in Balochistan and quantity is likely to cross 50,000 tonnes by the end of this June and will be increased up to 100,000 tonnes gradually. Coal is also being procured from Dera Ghazi Khan on experimental basis. The Pakistan Steel has initiated a step toward procuring local raw material for its steel production which is a good step in right direction," he added.

He urged the business community to engage the Geological Survey of Pakistan for conduct of a survey to identify coal and iron ore deposits in the country. " Pakistan Steel Mills is a commercial entity and produces to earn like any private enterprise.

Consumers take up to 95 percent of the billets production and traders and dealers 5 percent. We can not police or inspect the use of billets provided to the consumers, however, any specific complaint of the zonal authority will be redressed on priority basis," he said.

Engineering Development Board Chief Executive Officer Almas Hyder said earlier his board's role was limited to the steel and auto industry but now the government was helping his board to enhance its role to the energy and telecommunication sectors to tackle the energy crisis.

"The EDB will appoint foreign consultants for identification of iron ore and coal sites in Pakistan, the volume of investment needed for their exploration and future prospectus," he added. About the workshop's aims and objectives, Hyder said groups formed to discuss in detail various issues confronting the steel sector would compile their recommendations.

Business Recorder [Pakistan's First Financial Daily]

 

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World Bank to conduct Pakistan's economy review on February 3-8 ​

ISLAMABAD (January 26 2008): The World Bank (WB) will review Pakistan's economy, particularly the taxation reforms vis-à-vis recent economic developments. Sources told Business Recorder on Friday that Emesto May, Sector Director, Poverty Reduction and Economic Management, Finance and Private Sector Development, South Asia Region, will visit Pakistan from February 3 to 8 on operational trip.

He will hold meetings with relevant government officials for an update on recent economic developments. Satu Kahkonen, Lead Economist, is also on her visit to Pakistan. During her visit, she will discuss the recent macro-economic developments and get an update on PRSP 2 and PRSP 3. She will also join May in the February 3-8 meetings.

One important meeting of WB experts would be held with FBR Chairman Abdullah Yusaf on the issues of tax policy and on-going revamping of the tax machinery.

The top WB economist would also meet Khalid Mirza, Chairman of Competition Commission of Pakistan, to have an update on organisational strengthening of the Commission.

It is important to mention that the WB in its recent report 'Global Economic Prospects 2008' has highlighted that Pakistan would miss its annual GDP growth target of 7.2 percent as the growth would be around 6.5 percent by the end of 2007-08. The WB experts would start meeting with Finance Secretary Dr Waqar Masood Khan. The agenda of the meeting would be recent macroeconomic developments, and update on PRSP 3 and PRSP 2.

They would also meet Sakib Shirani, ABN Amro Bank Chief Economist and Oracle Corporation Regional Manager Samina Rizwan to discuss recent macroeconomic indicators. The WB officials' meeting with State Bank of Pakistan (SBP) Governor Dr Shamshad Akhtar and Zubair Soomro of Citibank Karachi would also focus on recent macroeconomic developments.

On the same topic, they would also meet Dr Haris Gazdar, Director Collective for Social Science Research; Shahid Kardar, Systems (Pvt) Ltd; Dr Akmal Hussain, Managing Director of Sayyed Engineers Pvt Ltd; Dr Anjum Naseem Lahore University of Management Sciences (LUMS) and Dr Ali Cheema, Lahore University of Management Sciences (LUMS).

The recent macroeconomic developments would also be discussed with Dr Salman Shah, Minister for Finance, Dr Waqar Masood Khan, Secretary Finance and Dr Akram Sheikh, Deputy Chairman of Planning Commission. A meeting with Dr Ishrat Hussain, Chairman of National Commission for Government Reforms is also on the cards to discuss reforms in different departments, sources added.

Business Recorder [Pakistan's First Financial Daily]

 

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Musharraf for more access to European markets ​

DAVOS (January 26 2008): President Pervez Musharraf on Friday said Pakistan is here to stay and stay as a vibrant state on the world spectrum and Europe should help it make strong economic front by giving it more access to its markets. He was speaking to a gathering at a breakfast meeting arranged by Ikram Majeed Sehgal, a well-known Pakistani journalist here.

Musharraf said Pakistan was facing multidimensional challenges in the aftermath of the Afghan war. The US and Europe, instead of leaving it alone, should help it stand tall to fight off terrorism and extremism. He briefed the gathering on Pakistan's economy and recounted achievements during the last 7 years.

He told the participants that way back in 1999 Pakistan was considered a failed and technically defaulted state and when he assumed power, he and former Prime Minister Shaukat Aziz, who was also present among the participants, went on for a three-pronged strategy based on deregulation, privatisation and liberalisation.

He said Shaukat Aziz evolved workable economic policies to turn Pakistan's economy around for upsurge. He said all economic indicators were showing healthy trend to help the country maintain 6.5 percent to 7 percent growth rate.

He invited investors to see for themselves the pace of economic growth and invest in Pakistan for better return. He added that 700 foreign companies were making huge profits in the country, indicating the people's purchasing power has considerably increased.

The President was confident that the new elected government, to be installed after February 18 elections, would maintain the economic upsurge and provide people better facilities for progress and prosperity. Musharraf assured the participants that the elections would be totally free, fair and as per every international standard.

Dismissing the nuclear safety concerns of the world, Musharraf apprised the participants about nuclear safety mechanism. He said a well-defined military system was in place to ensure complete safety and security of the nuclear assets.

He rejected the accusation of intelligence agencies or his involvement in Benazir Bhutto's killing and said it was a sad and disturbing development, which led to a political crisis-like situation in Pakistan. He said investigations were under way to catch the real culprits. He said the government was getting closer to the network, which was indulged in suicide bombings and other such nefarious activities to destabilise Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

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Export finance facility: Standard Chartered signs MoU with German firm ​

KARACHI (January 26 2008): The Standard Chartered Bank (Pakistan) and DF Deutsche Forfait AG signed a Memorandum of Understanding (MoU) to launch a first of its kind export finance facility in Pakistan. The signing ceremony was held at the Governor House here on Friday night in the presence of the Caretaker Prime Minister Mohammadmian Soomro.

The MoU was inked by the Chief Executive of Standard Chartered Bank, Pakistan, Badar Kazmi, and Chairman of Deutsche Forfait, Ulrich Wippermann. Governor Sindh, Dr Ishrat ul Ibad Khan, Caretaker Chief Minister, former justice Abdul Qadir Halepota, were also present on the occasion.

Speaking on the occasion, the Prime Minister said, "we are here doing things that are going to make investment here systematically easy." He also spoke of the tremendous opportunities that exist here and assured that the government and the institutions would extend every possible support.

Soomro also expressed pleasure on the confidence shown in Pakistan by the standard Chartered and the Deutsche Forfait. He also hoped that they would find more avenues of investment here.

The MoU is a first of its kind export finance facility in Pakistan. They key feature of this product is to facilitate documentary export collection with a pre-payment arrangement. This will translate into the primary benefits of reducing the exporter's credit risk thus eliminating bad debts and improving cash flows; providing exporters with greatly improved opportunities to explore and penetrate new markets; significantly enhancing export volumes which directly underscores the government mandate of driving the economy via robust export.

Business Recorder [Pakistan's First Financial Daily]