Pakistan Economy - News & Updates - Archive

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Efforts being made to ensure economic stability: SBP ​

SIALKOT (March 14 2008): State Bank of Pakistan (SBP) Governor Dr Shamshad Akhtar has said that national economy is facing ups and downs and is under great mess due to certain reasons. Addressing a reception, hosted in her honour by Hilbro Limited, a leading local surgical industry here on Thursday, she said that adequate efforts were being made to bring out the economy of untidiness.

The SBP Governor further said that efforts were under way to ensure economic stability in the country. She underscored need for the establishment of maximum industrial units in the country, and called upon the business community to come forward and exploit its own resources for setting up maximum industries in the country.

She urged the business community to focus on diversification of products and production of competitive products to cope with the global challenges. The business community could play an instrumental role in strengthening the national economy by enhancing the export volume, she added. The State Bank Governor lauded the efforts of private sector of Sialkot for developing an international airport on self-help basis.

She said the business community of Sialkot had set a unique example, which was role model for others to construct airport in other industrial cities on self-help basis. On this occasion, the State Bank Governor congratulated the Engineer Imran Ashraf on his success in the elections.

Earlier, Engineer Imran Ashraf of Hilbro Limited and MPA-elect, in his welcome address, informed the SBP Governor about the production of surgical instruments and export performance of the company. The SBP Governor along with Sima Chairman Sheraz Safdar went round different sections of the industrial unit, and appreciated the quality of surgical instruments and for providing employment opportunities to the womenfolk.

Business Recorder [Pakistan's First Financial Daily]

 

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New draft of 'Punjab MDG Plan' to be presented to ADB ​

FAISALABAD (March 14 2008): The new draft of 'Punjab Millennium Development Goal (MDG) Programme 2008-2011', will be presented to the Asian Development for financial assistance, which will build on the achievements of Punjab Devolved Social Services Programme (PDSSP) and focus on public services delivery particularly in the health sector, and introduce viable health financing mechanisms.

According to Planning and Development Department (P&DD) sources, provincial government is also preparing a new draft of 'Punjab Access to Justice Programme (AJP)', which will be build on reforms introduced through the federal AJP and focus on deepening judicial reforms at provincial level, leading to a well-functioning judiciary supported by measures on alternate dispute resolution mechanisms and greater enforceability of contracts.

Punjab has made significant commitments and initiated key reforms in all of the major areas. Yet, given the complexity of change, the Punjab needs major improvements on three fronts: (i) enhancing public sector efficiency; (ii) increasing access to, as well as the quality, of public services, most critically in education, health and water and sanitation sectors; and (iii) accelerating private sector participation in the provision of services, sources mentioned.

ADB project notes revealed that the Punjab needs a large infusion of public and private investments to keep pace with the growth requirements of its economy. With the population growing at 2.64 percent per year, Punjab will double its size to over 150 million people by 2026.

At present, about 70 percent of the population is considered as vulnerable (children, women and elderly). Significant urban-rural differentials exist in the availability and quality of public services. Basic health indicators in the province are poor.

Over 40 percent of villages have no drainage, and only 3 percent of villages have easy access to proper government hospitals. While infant mortality has declined from above 120 in 1997 to below 75 now, Punjab is still a long way away from its 2015 Millennium Development Goal (MDG) target of 40 per 1,000 live births.

Likewise, maternal mortality remains high at 300 (as of 2004) against a 2015 target of 140 per 100,000 live births. With the growing urban congestion and rural-urban inequalities, Punjab also needs to invest massively in transport, water supply and sanitation and other infrastructure.

These cannot be met by the public sector alone. And, more importantly, the economy needs to grow at a sustained 7-8 percent per year to generate adequate jobs to those entering the labour force.

According to ADB notes, the Punjab Vision 2020 as well as the current medium-term development strategy of the provincial government provide for continuing structural reforms to improve public sector efficiency and create an enabling environment for the private sector.

Business Recorder [Pakistan's First Financial Daily]

 

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Rs one billion grant for four industrial zones ​

KARACHI (March 14 2008): With the view to develop proper infrastructure at all four industrial zones, Sindh government has decided to provide Rs 250 million each in this connection. This was stated by Arif Ali Khan Abbasi, Sindh Minister for Industries, Labour, Transport, and Commerce.

While talking to a joint delegation of North Karachi and Landhi industrial area associations at his office on Thursday. He said that development and management companies have been formed in Korangi, Landhi, FB area and North Karachi, who were sketching plans to utilise funds for developing infrastructure at these zones.

These companies assigned the task to improve the infrastructure facilities in water, sanitation and road sectors in their respective zones, he maintained. Arif further said that the federal government would also provide the same amount as matching grant to these industrial areas.

He asked all four companies to utilise the development amount on priority sector so as to improve the overall infrastructure of that particular sector. Representatives of visiting association members lauded the efforts of the minister for ensuring grant of Rs one billion for developing infrastructure of four industrial zones.

Business Recorder [Pakistan's First Financial Daily]

 

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Light commercial vehicles: SEL and DFAC to join hands in manufacturing ​

KARACHI (March 14 2008): The Sindh Engineering (Pvt) Limited (SEL) is going to join hands with Dong Feng Automobile Company (DFAC) in manufacturing high quality China brand light commercial vehicles in Pakistan.

This was stated by Midhat Azim Kidwai, Managing Director, SEL along with Abdul Bari Khan, Chief Executive, Pakistan Industrial Development Corporation (PIDC) and others at a press conference held here at a local hotel on Thursday.

Kidwai said that Government of Pakistan had invited DFAC to a joint venture with SEL in manufacturing high quality commercial vehicles at reasonable prices, which would also help SEL expanding its products' range.

He said that the proposed project, planned at 51:49 percent equity sharing between DFAC and SEL respectively with management in the hands of DFAC, is expected to fetch foreign investment of around Rs 220 million.

He hoped that this joint venture would create positive impact on the country's economy besides facilitating the automobile industry by introducing latest trends, technologies and ideas.

Both DFAC and SEL had principally agreed on the preliminaries of the proposed future setup in the meeting between DFAC delegates and the Minister of Industries, Production and Special Initiatives at Islamabad in July 2007.

Kidwai apprised that SEL was a pioneer in light commercial vehicles in the country having produced and sold more than 30,000 Mazda Mini Buses and Trucks since 1978 while DFAC was on top in manufacturing commercial vehicles at China and standing on fourth position in the world.

He said that DFAC was already jointly working with world automobile giants like Cummins of USA, Bosch of Germany, Nissan of Japan, Citroen of France etc and also supplying tactical transport to Chinese army.

Kidwai said that SEL was a government owned unit operating under administrative control of Ministry of Industries, Production and Special Initiatives, through Pakistan Automobile Corporation (Paco). Therefore, in order to facilitate SEL customers in terms of vehicle financing through banks, all arrangements have been finalised with Faysal Bank for providing vehicles at 20 percent down payment, he added.

Later, in a question answer session, Bari said that Islamabad has decided to include Dong Feng vehicles in President's Rozgar Scheme aimed at facilitating more peoples through the scheme. He said that a high level delegation of concerned government department would visit China to negotiate and finalise the major terms of joint venture, shortly. This joint venture will be the first with any Chinese automobile concern in Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

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Shortfall in Kinnow export target to cause $70m loss ​

KARACHI: During the current season, Pakistan would incur an estimated loss of up to $70 million after falling short of Kinnow export target of 2,25,000 tonnes.

Previous year, export of the most demanding fruit in the foreign markets, was a dismal 88,000 tonnes, which prompted the government to set an ambitious new goal in consultation with fruit exporters.

With the current slow pace of Kinnow export, Pakistan is likely to export hardly 1,25,000 tonnes of kinnow by the month of April, thus depriving the country from earning precious foreign exchange.

During the last four to five months, Pakistan has barely touched 100,000 tonnes mark and in the next one and half month, the export target is not likely to cross 25,000 tonnes level, a clear indication of missing 100,000 tonnes out of the total ambitious export target.

Talking to Daily Times, Chairman of the All Pakistan Fruit Exporters Association (APFEA) Abdul Wahid blamed the situation owing to multifarious impediments faced by the exporters unexpectedly hindering their efforts towards smooth export process.

One of the major problem faced by the exporters during the last three months was non-availability of transport for carrying the yield from farm to port in the wake of torching of more than 1,500 heavy vehicles and large sized trawlers following assassination of chairperson of the Pakistan Peoples Party (PPP).

Exporters had to face immense problems in the post Benazir’s assassination developments to transport huge bulk of Kinnow export orders from Bhalwal, district Sargodha, Punjab province to Karachi Port for their onward journey to different destinations.

He cited other major factor which impeded export goal was unusually extreme cold weather during the winter season that contributed towards destruction of large yield.

Abdul Wahid said delayed permission by the Russian government in the month of December to import Kinnow from Pakistan also contributed towards falling short of export goals. A four member Russian delegation remained in Bhalwal, Sargodha for one month and after thorough inspection of 130 processing factories, they granted permission to only 14 of them consequently very little time was left for the export.

He said the export goal for Russia was set at 2,000 containers but it is expected to hardly touch half mark up to the month of April.

Replying to a question, he said out of 40 countries which import Kinnow from Pakistan regularly, the only positive gain was from Iran and Philippines while rest of the countries some which include Far Eastern and Gulf countries, Ukraine, Poland and Sri Lanka fell short of import targets.

Daily Times - Leading News Resource of Pakistan

 

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Indus Refinery project delayed ​

Banks reluctant to provide finance​

Saturday, March 15, 2008

KARACHI: Indus Refinery Limited (IRL) has failed to reach financial close because banks are susceptible about financing projects in Pakistan amidst terrorist attacks and political turmoil, the company’s CEO Sohail Shamsi told The News on Friday.

This has led to a year’s delay in completion of the 93,000 barrels per day oil refinery, which was earlier expected to come online by the middle of next year, he said. “Financial close has been delayed because banks have adopted a wait and see policy regarding Pakistan,” he said. “How can foreign investors be expected to come here when bombs have been going off and political parties are finding it hard to form government?”

The IRL being set up 48km from Karachi on the National Highway in Thatta district is based on the equipment of Petro Canada’s Oakville refinery, which was shut down a couple of years back and subsequently dismantled to be exported here.

The cost of the refinery, which has 79 per cent foreign shareholding, has scaled up to $900 million from $750m in 2007 and a plan to take up the production capacity to 133,000 bpd has already been put on the backburner.

It has been a subject of controversy as environmentalists say Petro Canada shut down the four-decade-old unit because of environmental concerns. But IRL says the property prices around the Oakville refinery site along a river in Canadian state of Ontario had skyrocketed.

According to a 2003 press release of Petro-Canada, the plant was closed down to consolidate operations at its Montreal refinery and due to introduction of a more stringent sulphur specification for gasoline.

Nevertheless, delay in the project will further the dependence of the country on imported petroleum products but a senior government official played down any impact saying the existing refineries import most of the crude oil.

“I don’t think that will make any big difference,” said Shaukat Durrani, a petroleum ministry spokesman, when asked if IRL’s delay would hit the country economically.At 4.9m tons annual capacity, IRL is capable of producing 1.2m tons of diesel, the main deficit fuel in Pakistan. Between July-January 2007-08, out of total diesel sales of 4.6m tons, 2m tons were processed by the five existing refineries.

According to industry officials, increase in domestic refining of crude oil helps in saving foreign exchange spent on import of petroleum products. “Light Arabian crude is selling at $100 a barrel and diesel at $125,” said Aftab Hussain, a manager at Pakistan Refinery Limited (PRL). “Twenty-five dollars could be saved on a barrel of this product locally produced.” Refineries in Pakistan operate under the protective pricing regime whereby they are allowed to collect 10 per cent duty on diesel as part of their revenues.

Indus Refinery project delayed

 

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Sindh grants Rs250m each to five industrial zones ​

Saturday, March 15, 2008

KARACHI: Sindh Governor Dr Ishratul Ebad has announced that Rs250 million have been granted to each of the five industrial zones of Karachi for development of infrastructure and improvement of economy.

He stated this at a ceremony here on Thursday evening held in connection with the “5th My Karachi Exhibition”, to be organised by the Karachi Chamber of Commerce and Industry. The governor said the new government should “end its politics and take charge of governance to improve the country’s image and condition.”

Ebad added the parting government had done its job and proved its commitment by holding free and fair elections. The new government was going to take charge by next week and though they had to face many challenges ahead, they had been elected by the people and therefore they should perform well so as not to disappoint the public who voted for them, he said.

Speaking about My Karachi exhibition, which would be held from June 6 to 8, the governor said such business to business (B2B) exhibitions were highly essential for economic development and to enhance the country’s image, in particular this city’s as it was the commercial hub of the country.

He said the government would offer full support to the KCCI during the period and encouraged foreign countries to participate in the event. Karachi should hold more of these events to “spread the message across the world that it’s a safe and lucrative place to invest in,” he added.

Sindh grants Rs250m each to five industrial zones

 

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Media briefed on mobile technology ​

Saturday, March 15, 2008

KARACHI: Telenor Pakistan in collaboration with Nokia Siemens Networks organised a training workshop for journalists titled “The Future of Mobile Communications” here on Friday. The aim of this workshop, part of a nationwide series, was to update the journalists on the frontiers of telecom technology, mobile applications and the dynamics of mobile telecommunications sector development.

The workshop briefed the journalists on the existing telecommunication infrastructure supporting GPRS, EDGE, 3G, WiMax, WCDMA and WiFi in addition to contemporary lifestyle mobile applications like video messaging, push mail, VoIP, online gaming, person tracking, navigation and mobile TV. Rizwan Khan from Telenor Pakistan and Faisal Ansari from Nokia Siemens Networks delivered the presentation.

Global telecommunication growth stats and trends, emerging market usage behaviours, emerging network, mobile phone technology, business fundamentals, and success measure of mobile communication business were discussed during the workshop.

Hasnat Masood Director Corporate Communication Telenor Pakistan also spoke at the occasion and said, “with a boom in the telecom sector in Pakistan and introduction of new technologies, it is important to update the media to facilitate them with progressive reporting through advanced understanding of telecom infrastructure technology and applications.” He said that in 2006-07 telecom sector contributed 2 percent in the GDP and FDI share was $1.8 million.

Pakistan ranks at the 10th in cellular use and has mobile density of 48 percent as compared to fixed line, which is 4.33 percent despite this tremendous growth there is still potential in the industry. Syed Veqar-ul-Islam Country Director Pakistan and Afghanistan, Nokia Siemens Networks also spoke at the occasion and distributed the certificate to the journalists.

Media briefed on mobile technology

 

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MoU signed for increasing horticulture exports ​

ISLAMABAD: The Infrastructure Project Development Facility (IPDF) and Pakistan Horticulture Development and Export Board (PHDEB) have agreed to collaborate on improving the post-harvest management infrastructure through cool chain system for fresh fruits and other horticultural products by developing projects on public-private partnership modality.

Under the cool chain system, 23 cold storages and controlled atmosphere storages will be established in fruit production areas, airports and sea ports. Two reefer yards at Lahore and Karachi, each having a capacity of 250 containers and six testing laboratories would also form part of the Cool Chain System.

Both the organisations on Friday signed a Memorandum of Understanding (MoU). The CEO of IPDF Aijaz Ahmad and the CEO of PHDEB Shamoon Sadiq, on behalf of their respective organisations, at a ceremony which was also attended by senior officials from both sides.

The MoU was witnessed by Dr. Asad Ali Shah, Member Infrastructure, Planning Commission Government of Pakistan and Dr. Kausar Abdullah Malik, Member Food and Agriculture, Planning Commission, Government of Pakistan.

The PHDEB has planned to establish a cool chain system, with a network of pack houses, reefer yards and cold storages, across the national trade corridor. The project envisages establishment of 39 export/pack houses equipped with grading, washing, waxing, drying, hot water treatment, packing and storage facilities of different capacities at 31 locations in various parts of the country for major horticultural commodities.

Speaking on the occasion, PHDEB CEO Shamoon Sadiq said that the horticulture sector contributes about 12 percent to Pakistan’s agriculture GDP, and has great potential for increasing the production and export of premium quality horticultural products besides offering multiple employment opportunities throughout the supply chain, particularly in the rural areas.

Pointing out that approximately 12 percent of the 13.67 million tonnes of annual production of fruits and vegetables in the country is lost due to primitive and poor techniques of handling between farms and the end-consumers, he expressed the hope that the proposed project, after completion, would yield good dividends by reducing post harvest losses and enhancing the country’s exports.

IPDF CEO Aijaz Ahmad said that IPDF has been established as the focal point to promote Public Private Partnership projects in the infrastructure related sectors in Pakistan and under the MoU, IPDF will be providing technical assistance in structuring and implementing the project through private sector participation. “We are focusing on good governance and regulation through standardised contracts and transparent procurement guidelines which would provide an enabling environment for the generation of investment opportunities in Pakistan to harness the private sector as the engine of growth for the national economy,” he added.

He underlined the need that the implementation of the cool chain system project would improve the post-harvest management infrastructure for horticultural products, thus helping reduce post-harvest losses, increase production and also the shelf-life and quality of fresh produce, which would greatly contribute to not only stabilising the prices in the domestic market but also in substantially boosting the exports to highly lucrative and competitive international markets.

Daily Times - Leading News Resource of Pakistan

 

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Better security to improve FDI: French ambassador​

ISLAMABAD: The government should take measures for improving security to encourage foreign investors, Ambassador of France Ragis De Belenet said on Friday.

He said Pakistan is a good place for business and there is a need to build the image of Pakistan in the western world.

He hoped the incoming government in Pakistan will be stable and must focus for improving the living standards of the people. He said that about 25 percent of population in Pakistan was below the poverty level and face grave problems like inflation and energy shortage. The new government should address the problems to facilitate the people.

Trade between Pakistan and France was less then one billion dollars, which needs to be more than 1 billion dollars in the coming years. He invited business delegation of Islamabad Chamber of Commerce & Industry (ICCI) for a visit to France to explore the possibilities of business. He said that in April or May he would visit ICCI to address the business community.

The ambassador expressed these views during a meeting with President ICCI Muhammad Ijaz Abbasi. Speaking on the occasion, the ICCI chief said both countries were enjoying good trade and economic relations, which should be further strengthened.

Pakistan’s trade with France had increased from $499.221 million in 2003-04 to $764.86 million in 2006-07, by 53.21 percent during the last four years. Pakistan had a favorable balance of trade with France till 2004-05 but thereafter it became negative mainly due to increased import of machinery, aircrafts & their parts.

Daily Times - Leading News Resource of Pakistan

 

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Investment in agricultural research declines by 35%​

ISLAMABAD: The Pakistan Agriculture Research Council (PARC)’s Board of Governors was informed on Friday that investment in agricultural research has declined by 35 percent.

Investment in agricultural research in India increased by 80 percent, in China 85 percent, in Asia and Pacific 55 percent, the meeting was informed.

Chairman, PARC Dr Tusneem said that agricultural research has been neglected in the decade of 1990s while in 1970s and 1980s it was at reasonable level. He said we are lowest among the SAARC countries in this regard. He further said investment per scientist is also lowest for Pakistan. This is the main reason that Pakistan was behind in frontier technologies for crops, livestock and natural resources, he added.

However, he said that the PARC was focusing on emerging issues of agricultural research for advancement of agriculture sector in the country. The challenges faced by the agriculture are to achieve knowledge based agriculture production, competitiveness with increasing globalisation, high efficiency in production and to move from green to gene revolution. He said green revolution led to doubling of cereals production and five fold increase in production of sugar and some other crops with exportable surplus of rice, cotton, sugar and wheat over the last decade. Last 5 to 6 years were of erratic over and under production, which had both marketing and economic implications.

Tusneem apprised that the Ministry of Food Agriculture and Livestock (MINFAL) had set a target of 4 percent to 6 percent for agricultural growth per year up to 2015 to achieve food security, to become a net exporter of agricultural commodities and major exporter of fruits and set in Medium Term Development Framework (MTDF) and vision 2030. He said National Agricultural Research System (NARS) needs major reforms as it is facing low investment, poor human resource and physical infrastructure.

To address these issues, he said the PARC had taken several initiatives for reforms in the NARS. He said the PARC would be taking care of germplasm availability, distribution and testing, rust initiatives, global interactions, improve national wheat research system and coordination with provincial research system; develop resource conservation technologies with collaboration of international research institutes.

He further informed that the PARC would conduct policy research, research on agricultural growth and poverty awareness, high value chain, value addition, impact assessment and knowledge sharing. He said the PARC would be dealing with vaccine production for bird flu and other diseases, genetic improvement of feed technologies. He invited the provincial research system to approach the PARC for funding research.

He apprised the participants of the meeting that the PARC undertook several reform initiatives in 2006 to make its research system more efficient, vibrant, and responsive to the emerging challenges. The recent paradigm shift from green to gene revolution, from conventional agriculture to high value agriculture and from domestic to global markets have underscored the need for strategic research on technologies which on the one hand are pro-small farmers, pro-poor and pro-nature, and on the other competitive in the global markets to restructure and reposition itself to deliver science based solutions for a more productive, profitable and sustainable agriculture development, he added.

He said due to gap between production and marketing system; farmers were getting less price of their produce. So there was need to diminish this gap to support small farmers for getting their due right. The meeting suggested that regulatory body on production of vaccine needed to be developed so that quality vaccine may be developed.

Dr. Kausar Abdullah Malik, Member, Planning, gave comprehensive presentation in line with future strategy of PARC for development of agricultural sector in Pakistan.

Member Animal Sciences Division, Dr Shahana Urooj Kazmi, Member, Social Sciences Division Dr Munir Ahmed and Member, Plant Sciences Division Dr Iftikhar Ahmed gave detailed presentations before the coordination committee on their respective divisions.

Representatives of provincial research institutions, vice chancellors of Universities, Pakistan Atomic Energy Commission and technical members of the PARC attended the meeting.

Daily Times - Leading News Resource of Pakistan

 

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China, United Arab Emirates, Kuwait and Qatar: Pakistan looks for fiscal support ​

ISLAMABAD (March 15 2008): After Saudi Arabia, Pakistan has approached four other friendly countries, China, United Arab Emirates (UAE), Kuwait and Qatar, for seeking financial support to reduce budgetary deficit and keep economy on the move.

Sources told Business Recorder on Friday that following a $300 million grant from Saudi Arabia early this week for helping Islamabad offsetting impact of the rising oil prices on the economy now Pakistan has taken the case with other four countries, which could extend it financial support when current account deficit (CAD) was widening to alarming level.

The list of the countries to which Pakistan approached for financial support shows that Islamabad is heavily relying on the friendly countries to come out of the worsening financial crisis.

Economic analysts are of the view that Pakistan needs minimum $5 billion to keep its house in order and to fulfil fiscal responsibilities. Such support is also needed to keep the rupee parity with US dollar at some reasonable level, besides keeping foreign exchange reserves at certain limit to support the rupee.

The government economic wizards seem helpless in plugging budgetary deficit through usual means. Pakistan's move is indicative of serious threats as a result of unprecedented high oil prices in the international market and much poor performance of different key sectors of the economy.

Islamabad can not make things happen smoothly when all key indicators of its economy are not performing up to the mark. Its two major sources- revenue collection and exports-have not been showing any good signs. Revenue collection is likely to remain much less than the targeted figure and, similarly, exports have gone down making it clear to the policy makers that they will be left with Pakistan's huge trade deficit at the end of the current fiscal year.

This disorder can subsequently add to Pakistan's financial woes. For the last few years, the economic managers in Islamabad had been plugging the gap in income and expenditure by raising money from international market through global depository receipt (GDRs), privatisation of national assets and from borrowing.

They managed to create the impression for a common man that Pakistan's economy was robust as a result of reforms and their professional approach to meet the future challenges without any problem.

Perhaps they expected some divine force to come and remove the weaknesses in the economy. The campaign of getting whatever any friendly country can give it for financial support is now telling the true story of the economic successes of the last almost one decade.

Business Recorder [Pakistan's First Financial Daily]

 

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Financial institutions lending profitably to MSEs: research ​

ISLAMABAD (March 15 2008): Around 85 percent of micro and small enterprises (MSEs) have shown substantial increase in their profits on expanding business after obtaining first-ever loan from a microfinance institution.

Two latest research studies ie "The Microfinance Evolution Toward MSME Lending" and "Survival or Take-off. A Study of MSEs in the Lahore Small Business Finance Market" were conducted by ShoreBank International (SBI) under a three-year USAID sponsored and SBI implemented project called Widening Harmonised Access to Microfinance (WHAM). A spokesman of SBI said here on Friday, the microfinance sector has seen a jump from an outreach of only 600,000 borrowers in 2005 to nearly 1.5 million borrowers at the end of 2007.

The first report addresses the challenges faced by microfinance institutions. It reviews the imperatives attracting these institutions in Pakistan to small and medium enterprise (SME) lending.

The second report uses entrepreneur-specific data to assess the impact of MSE financing in terms of employment generation, production capacity, profitability and management style/outlook.

He said that both the reports explain the best practices for commercial banks and microfinance institutions to profitably provide financial services to MSEs in Pakistan. SBI, a US-based financial advisory and solutions consulting firm, has also highlighted the key experiences and impact observed in assisting both local and multinational financial institutions lending profitably to the country's MSEs.

In addition, SBI under the WHAM project has closely worked with the Pakistan Microfinance Network (PMN) on awareness building and information sharing to make a sustainable and favourable environment for profitable lending in untapped market of MSME lending, he added. The spokesman added that the SBI is ready to continue to work with the financial institutions beyond the delivery of the donor funding in Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

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'Trade ties with France should be strengthened' ​

ISLAMABAD (March 15 2008): President Islamabad Chamber of Commerce & Industry (ICCI) Muhammad Ijaz Abbasi, while meeting Ragis De Belenet, Ambassador of France to Pakistan said that both countries enjoy very good trade and economic relations, which should be further strengthened.

President ICCI said that Pakistan's trade with France has increased from 499.221 million dollars in 2003-04 to 764.86 million dollars in 2006-07, ie by 53.21 percent during the last four years, which is a positive sign of growing trade and economic relations.

He said that Pakistan had a favourable balance of trade with France till 2004-05 but thereafter it became negative mainly due to increased import of machinery, aircraft & their parts. He added that Pakistan's exports, after registering growth till 2004-05 declined by 8.4 percent in 2005-06 but exports have however registered marginal increase of 2.9 percent in 2006-07.

Muhammad Ijaz Abbasi said that total FDI from French multinationals companies has remained very low but they have established important subsidiaries in Pakistan like Rhone-Poulenc and Roussel-Uclaf, the two French major brands in chemicals and pharmaceuticals.

He said that Danone, the French agro business giant has a joint venture in Sukkur, producing LU Biscuits and Alcatel is a manufacturer and supplier of PTCL for digital switches. He invited French businessmen to come and invest in Pakistan.

President ICCI said that there is great scope for joint ventures with France, particularly in the area of high technology, which includes telecommunications, nuclear power, chemicals, automobiles, ship building and so on.

He said that that development projects in the infrastructure like mass transit programme in various big cities of Pakistan, railways, port development and electronics as well as the agro-based sector are areas where despite abundant resources and raw-material, value-addition is negligible and therefore can prove to be potential investment zones for French companies.

Ragis De Belenet, Ambassador of France showed great concern on the security situation in Pakistan. He emphasised that government should take measures for improving security to encourage the foreign investors.

He said that the trade between the two countries is less then one billion dollars, which needs to bring more than one billion dollars in the coming years. He invited business delegation of Islamabad Chamber of Commerce & Industry for a visit to France to explore the possibilities of business. He said that in April or May he will visit Islamabad Chamber of Commerce & Industry to address the business community.

Business Recorder [Pakistan's First Financial Daily]

 

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Renewable energy production growing rapidly: report ​

LAHORE (March 15 2008): The renewable energy industry is stepping up its meteoric rise into the mainstream of the energy sector and renewable energy production capacities are growing rapidly as a result of more countries enacting far-reaching policies. This was stated in REN21 Renewables 2007 Global Status Report.

The report has been prepared by the Renewable Energy Network for the 21st Century (REN21) in collaboration with the Worldwatch Institute. The report paints an encouraging picture of rapidly expanding renewable energy markets, policies, industries, and rural applications around the world.

In 2007, global wind generating capacity is estimated to have increased by 28 percent, while grid-connected solar photovoltaic (PV) capacity surged by 52 percent, the REN21 report revelaed. Researcher Dr Eric Martinot led an international team of 140 researchers and contributors from both developed and developing countries to produce the report.

In the report he says renewable energy sources such as wind, solar, geothermal, and small-scale hydropower offer countries the means to improve their energy security and spur economic development. He also said the renewable energy sector now accounts for 2.4 million jobs globally, and has doubled electric generating capacity since 2004, to 240 gigawatts.

The report said more than 65 countries had national goals to accelerate the use of renewable energy and were enacting far-reaching policies to meet those goals. Multilateral agencies and private investors alike are integrating renewable energy into their mainstream portfolios, capturing the interest of the largest global companies.

Business Recorder [Pakistan's First Financial Daily]