What's new

Pakistan Economy - News & Updates - Archive

Status
Not open for further replies.
LSM posts 5.29 percent dismal growth in July-January

ISLAMABAD (April 10 2008): The Large Scale Manufacturing (LSM) registered a dismal growth of 5.29 percent during July-January 2007-08 over the same period last year against 10.5 percent target for the year.

The figures released by the Federal Bureau of Statistics (FBS) on Wednesday about Quantum Index Numbers for LSM showed that it would be a great challenge for the new government to achieve even the revised target of 7.5 percent due to prevailing energy crisis and high inputs cost.

The new government is faced with immense challenges of soaring inflation, low LSM growth and ballooning fiscal, current accounts and trade deficits. The provisional figures show that only sugar and cement sectors registered substantial growth, 51 and 16.14 percent respectively, which were followed by cotton yarn 4.28 percent and cotton cloth 2.18 percent.

The steel sector is most affected by the energy crisis and political uncertainty during the period under review which is reflected by 15 percent negative growth with 12.41 percent production decline billet/ingots, a major raw material for long steel products, 8.43 percent in HRC sheets and 4.36 percent in coke-Pakistan.

It remains to be seen how the new government will cope with the situation and achieve growth particularly in the steel sector, which is energy-intensive in terms of input. The LSM growth was 6.9 percent in July-November 2007, but growth declined in the preceding months due to energy and raw material shortages.

Among petroleum products, growth in jet fuel oil declined by 13.81 percent, kerosene oil 1.89 percent, diesel oil 3.43 percent, liquefied petroleum gas (LPG) 4.30 percent and while in the auto sector, the tractor production declined by 0.44 percent and trucks by 8.74 percent.

The statistics showed a 5 percent growth in petroleum products which was contributed by 6.28 percent increase in the production of motor spirits, 11.32 percent in high speed diesel, 7.95 percent in furnace oil, 11.2 percent in jute batching oil and 8.99 percent in solvent Naptha. Within automobiles, buses registered 30.20 percent growth, light car vehicles (LCVs) 22.03 percent and motorcycle 26.67 percent while in the steel sector only pig iron registered a growth of 10.47 percent.

Among fertiliser, NIT fertiliser growth was 1.35 percent while phosphate fertilizer declined by 16.70 percent. The production of cigarettes grew by 6.38 percent and soda ash 15.16 percent. The data on LSM is based on latest production figures for July-January, based on 100 items collected from sources, Oil Companies Advisory Committee (OCAC), Ministry of Industries and Production and Provincial Bureau of Statistics.

Business Recorder [Pakistan's First Financial Daily]
 
.
President to discuss bilateral, defence ties with Chinese leaders

ISLAMABAD (April 10 2008): President Pervez Musharraf will leave on a six-day state visit to China Thursday to discuss bilateral relations, regional and international issues besides talks with Chinese leaders to further strengthen defence and trade co-operation.

The visit, from April 10 to 15, at the invitation of Chinese President Hu Jintao is part of regular high-level interaction between the two countries that is reflective of close bilateral ties, the Foreign Office said.

"The President's visit will reinforce the all-weather, time-tested friendship between the two countries and further enhance and deepen our strategic co-operative partnership," Foreign Office spokesman Mohammad Sadiq. President Pervez Musharraf will begin his visit from Sanya and where he will hold talks with President Hu Jintao.

The President and the Chinese leadership will review the entire gamut of Pak-China bilateral relations besides discussing regional issues and international developments. Various agreements and Memorandum of Understandings are expected to be signed at Sanya to give an impetus to bilateral co-operation.

President Musharraf will also be the keynote speaker at BOAO Forum for Asia. President Musharraf will be meeting world leaders attending the BOAO Forum including the President of Sri Lanka, prime ministers of Australia and Kazakhstan.

THE THEME FOR THIS YEAR IS "GREEN ASIA:

Moving Towards Win-Win Through Changes". In Beijing, the President will hold talks with Premier Wen Jiabao, Wu Bangguo Chairman of National Congress and Jia Qinglin Chairman of Chinese People's Political Consultative Conference. The President would also visit the Tsinghua University which has been a cradle of learning for top Chinese leadership.

President will visit Urumqi, the capital of Muslim majority Xinjiang Uygur Autonomous Region of China that borders Pakistan and meet with Xinjiang leadership at the last leg of his visit. The President will discuss prospects of increased co-operation between Xinjiang region and Pakistan's Northern Areas and North West Frontier Province.

The President will be accompanied by Minister for Foreign Affairs Shah Mehmood Qureshi and Minister for Defence Chaudhry Ahmed Mukhtar Chairman Higher Education Commission, Chairman Trade Development Authority of Pakistan and the Deputy Chairman Planning Commission.

China is a major source of investment, trade and defence for Pakistan. Bilateral trade between the two countries has touched US 6.8 billion dollars. Pakistan and China signed a free trade pact in 2006 and hope to raise two-way trade to $15 billion within the next five years.

Pakistan-China Joint Five-Year Economic Plan was signed in November 2006 and the Free Trade Agreement operational since last year has bolstered the economic co-operation between the two countries. Pakistan-China Joint Investment Company, established in 2007, is geared to promote joint ventures and investments. In recent years, Chinese investments in Pakistan have shown an upward trend and several projects of national significance are being executed with Chinese assistance.

Both the countries have maintained long-term exchanges and multi-level co-operation in many areas, particularly defence. The visit is aimed at further promoting exchanges and bilateral co-operation for the development of strategic co-operative partnership of the two countries. A Shanghai shipyard launched the first of four F-22P frigates to be delivered to Pakistan on Monday.

The fourth and last vessel will be completed at a Karachi shipyard in 2013. The Pakistan Air Force has also inducted in its fleet JF-17 Thunder, a fighter aircraft, co-produced with China.

Pakistan was the first Islamic country to recognise People's Republic of China on 4 January 1950. Diplomatic relations were established between the two countries on 21 May 1951. The multi-faceted relations between Pakistan and China are built on commonality of interests in peace, security and development of the region, spokesman Mohammad Sadiq said.

The President will also be meeting the Chinese business community at Beijing and in Urumqi. Leaders of business and corporate sector of China will call on the President. His media engagements also include several interviews with the print and electronic media.

Business Recorder [Pakistan's First Financial Daily]
 
.
Energy saver bulbs: Tusdec planning to set up CFC to encourage local manufacturing

LAHORE (April 10 2008): The Technology Upgradation and Skill Development Company (Tusdec) is planning to set up a Common Facility Centre (CFC) to encourage local manufacturing of energy efficient Compact Fluorescent Lamps (CFLs) with an ultimate objective to help bridge gap between energy generation and consumption in Pakistan.

This was revealed in a meeting on 'Energy Conservation and Load Management', chaired by Federal Secretary for Industries, Production and Special Initiatives, Shahab Khawaja on Wednesday.

The Federal Secretary said that it was high time to encourage the replacement of the incandescent bulbs with energy savers (CFLs) to help quickly ensure the energy security of the country. He hoped the establishment of the CFC would go a long way in the promotion of energy-efficient illumination gadgets in the country.

Giving presentation on 'Impact of Energy Management on Power Planning', Energy Conservation Expert, Engr Arshad Chughtai said that replacement of one incandescent bulb by a CFL by each of 17 million users of our electric utilities, Wapda and KESC can help save over 1,300 megawatts of electricity during peak hours. He said that power consumption in Pakistan was presently growing at a rate of 10 percent per annum, predicting that it would get double by the year 2015. He billed the consumers' indifference towards saving electricity as one of the major reasons for the steep growth in power consumption.

Quoting examples from other parts of the world, Chughtai said that incandescent bulbs, perfected for mass use by Thomas A Edison in the late 19th century, were being phased out in several developed and developing countries at the moment and replaced with CFLs, which use only 20 percent of the energy consumed by incandescent bulbs.

He said that the use of the CFLs would not only help consumers save a lot of money but also lead to austerity at national level as generation of each megawatt of energy, at present, costs one million US dollars.

Chughtai said, unlike other developed and developing nations of the world, most of the energy ie 43 percent of total generation, was consumed in Pakistan by domestic consumers while industry's share in power consumption was just 28 percent against 63 percent in China and 43 percent in India.

He said that Pakistan with an installed power generation capacity of almost 20,000-megawatt (including that of recently installed two rental power plants) was presently facing a shortfall of 2,500 megawatt. He added that the measures including load management, energy conservation and generation of more energy should go side by side to ensure the energy security of the country.

Energy Conservation expert said that the installation of Time of Day (ToD) and Time of Use (ToU) meters can also encourage the consumers to minimise the consumption of the electricity during peak hours as it would change their consumption behaviour. He added there was a critical need to add capacitors at the street or house level to further impact conservation.

He illustrated the measures adopted by developed nations like Japan where they use load limiters and anyone exceeding their agreed load is cut-off. He also suggested the use of low-pressure sodium vapour lamps for streetlight and proper adjustment of thermostats for energy conservation.

Business Recorder [Pakistan's First Financial Daily]
 
.
Irrigation department to set up five hydropower units

LAHORE (April 10 2008): Punjab Irrigation and Power Secretary Arif Nadeem has announced that the Irrigation Department is planning to set up five hydropower units on canals producing 25 megawatts of electricity to meet the current shortages.

Nadeem said careful use of available water for irrigation by applying modern techniques, the agriculture produce could be enhanced manifold. He said the Punjab was building 20 small dams costing Rs 4 billion, adding that 10 of them had been completed. He also said his government would finish nine others by June and outline a strategy to introduce the drip irrigation system in the province.

Business Recorder [Pakistan's First Financial Daily]
 
.
Dairy sector to create 1.2 million new jobs for farmers

ISLAMABAD (April 10 2008): Dairy sector has been geared to create 1.2 million new jobs for landless farmers and the rural women during the next five years. Geoff Walker, Chief Executive Officer, Pakistan Dairy Development Company, said this while visiting a model farm developed by Pakistan Dairy Development Company (PDDC) at Saelah, District Jehlum under a special programme aimed at completing 1000 model dairy farms by next year.

Walker said that Pakistan had become the fourth largest milk producer in the world by producing 32 billion litres per annum. He expressed satisfaction over performance of the PDDC and hoped that the company would be able to attain its goals by improving productivity, quality and affordability of the milk and milk products in the country. "We expect an investment of over Rs 12 billion in dairy sector during next five years", he added. Responding to a question, he informed that Pakistan Dairy was nearing its 200th model farm implementation, and excellent results were being achieved for the farmers on the programme without exception, and across all of Pakistan.-PR

Business Recorder [Pakistan's First Financial Daily]
 
.
$104.5 million Barani water project to be launched from July: PIPD

FAISALABAD (April 09 2008): The Barani Integrated Water Resources Sector Project will be launched next fiscal year from July 2008, and it will be completed during 2014 by the Punjab Irrigation and Power Department (PIPD) with the financial assistance of the Asian Development Bank (ADB).

According to update project investment plan, PIPD sources said the investment cost of the project is estimated at $104.5 million equivalent, including taxes and duties of $14.4 million equivalent. Financial charges during implementation (comprising interest during implementation and commitment charges) are estimated at $7.5 million.

Sources stated that the project's impact is to improve households' income and health in the four districts of Attock, Rawalpindi, Jhelum, and Chakwal in the Barani Areas of Punjab. The project's outcome is to increase agriculture and livestock productivity and household access to domestic water supply.

The project outcome will also be increased sustainable water storage capacity; sustainable and profitable command areas and domestic water supply developed; and enhanced dam planning, management, and implementation capacity.

The second output will be developed sustainable rural water supplies and sanitation and increased small towns, domestic water entitlements; efficient community-based management irrigation schemes, and improved farmers' access to production support and market services.

They said the sector project will support the Punjab government's efforts to develop water resources and improve their management in four districts of the Barani areas of Punjab that suffer from water scarcity. The project intends to improve households' income and health by increasing crop and livestock productivity through irrigation development and increased access to water and sanitation.

Activities will include (i) the construction of dams and appurtenant structures to increase water availability in the area; (ii) watershed management to enhance the dams' life expectancy; (iii) development of the rural water supply for communities in the vicinity of the dam; (iv) development of community-managed irrigation distribution network; (v) agriculture extension services to support the transition to irrigated agriculture; and (vi) institutional support.

The project will also rehabilitate and develop irrigation schemes, provide extension support, and improve watershed management in existing dams. To address the problem of sustainability and low economic returns observed in previous dam projects in Barani areas, the project will change the sub-sector implementation practices and follow an integrated approach looking simultaneously at dam development, watershed management, and command area development. Similarly, it will support devolution of the water scheme to organised water users and foster a demand-driven approach through the inclusion of social mobilisation support.

While figures from the government of Punjab indicate that between 75 and 80 percent of the population have access to safe drinking water in the Pothowar plateau, the real availability of water to households in this area is extremely limited.

As early as in the 1960s, the sources said that dams were developed to increase water availability in the Pothowar plateau. To date, a total of 50 dams from 11 to 40 meters (m) high and with reservoir storage of from 600,000 to 54 million cubic meters (m3) have been commissioned by the Small Dams Organisation (SDO) under the Punjab Irrigation and Power Department (PIPD), with a total canal command area of around 24,500 hectares. This storage represents 12 percent of the estimated 2,320 million total runoff generated in the plateau and only a small portion of the many potential dam sites that have already been identified.

The PIPD will be the executing agency for the project and responsible for overall project management and implementation. A PMU headed by a PIPD-appointed project director will be established. Three PMU field offices, one for Attock and Rawalpindi districts, one for Chakwal district, and one for Jhelum district will be established. Each office will be staffed with a full-time specialist seconded from the Punjab government departments of agriculture, livestock, and forestry.

The PMU will assume the following roles: (i) overall interagency and district coordination; (ii) recruiting consultants and non-government organisations (NGOs), and awarding procurement and consulting contracts, as well as all project financial management; (iii) consolidating, reviewing, and submitting regular progress and financial reports to the Project Steering Committee (PSC) and the ADB; and (iv) monitoring and evaluating project outputs and results. The PMU will also be responsible for directly implementing the watershed management activities under the first, second, and third outputs. The Small Dams Organisation (SDO) will be responsible for implementing dam planning and construction activities under the first output.

In implementing those activities, SDO will receive specific advisory support on safeguard and technical matters from the PMU. For each subproject under its responsibility, the SDO will appoint a sub-divisional officer who will supervise the dam feasibility and, detail design studies, and the engineering construction supervision consultants. In implementing the water supply-related activities, the PMU will involve the relevant tehsil municipal administration (TMAs) in (i) assessing the demand for water supplies, (ii) organising the future water supply users, and (iii) supervising the overall execution of works and services related to water supply activities.

To expedite project implementation, the PIPD sources mentioned that the sub-projects will be prepared in batches equivalent to 2,000 hectares (ha) of irrigated agriculture development (between one and four sub-projects).

Business Recorder [Pakistan's First Financial Daily]
 
.
Food prices surge by 18.57 per cent

Friday, April 11, 2008

ISLAMABAD: The prices of essential food items registered a massive surge of around 18.57 per cent in March 2008, badly affecting the purchasing power of salaried and low-income groups, as they consumed a major chunk of their earnings to buy food items only.

According to official figures released by the Federal Bureau of Statistics (FBS) on Thursday, the CPI-based inflation surged by 14.12 per cent in March 2008, Sensitive Price Index by 18.57 per cent and Wholesale Price Index by 19.79 per cent.

During the first nine months (July-March) period, the inflation rates based on CPI, SPI and WPI for the year 2007-08 increased by 9.49 per cent, 12.87 per cent and 12.59 per cent respectively, over the corresponding period of 2006-07.

It increased by 8.00 per cent, 11.45 per cent and 7.02 per cent respectively in 2006-07 over the corresponding period of 2005-06.

In 2005-06, the rate of inflation increased by 8.25 per cent, 6.65 per cent and 10.57 per cent respectively over the same period of 2004-05.

An analysis of data for the last three years for the same period indicates that CPI, SPI & WPI were higher as compared to the last two years.

CPI, SPI and WPI in March 2007 increased by 7.67 per cent, 9.66 per cent and 6.11 per cent respectively over March 2006, and in March 2006, the CPI, SPI and WPI increased by 6.91 per cent, 6.77 per cent and 8.51 per cent respectively over March 2005.

In March 2008, the prices of vegetables increased by 22.42 per cent, chicken farm 22.32 per cent, cooking oil 16.14 per cent, vegetable ghee 14.30 per cent, fresh fruits 11.46 per cent, pulse masoor 10.76 per cent, mustard oil 9.06 per cent, rice 6.50 per cent, gram whole 5.83 per cent, milk products 5.25 per cent, milk fresh 4.91 per cent, tea 4.38 per cent, pulse gram 3.29 per cent, betel leaves & nuts 3.10 per cent, dry fruit 2.93 per cent, sweetmeat & nimco 2.65 per cent, cereals 2.35 per cent, jam, tomato, pickles & vinegar 2.14 per cent, besan 1.96 per cent, wheat flour 1.90 per cent, beverages 1.42 per cent, honey 1.26 per cent, readymade food 1.22 per cent, pulse moong 1.15 per cent and milk powder 0.98 per cent.

The prices of footwear increased by 4.10 per cent, cotton cloth 1.96 per cent, electricity 6.44 per cent, kerosene 5.51 per cent, firewood 2.62 per cent, diesel 7.02 per cent, petrol 7.01 per cent, CNG filling charges 4.61 per cent, service charges 1.90 per cent, transport fare charges 1.59 per cent and vehicles 1.47 per cent.

Food prices surge by 18.57 per cent
 
.
Telenor launches mobile medical service

Friday, April 11, 2008

KARACHI: Telenor Pakistan has announced the commercial launch of its mobile medical service, “Telenor Tele-Doctor 1911.”

The service aims to provide Telenor Pakistan subscribers an easy and instant access to medical advice wherever and whenever needed, stated a Telenor press release.

The service provides Telenor Pakistan subscribers 24/7 telephonic access to general practitioners. These online Tele-Doctors will be able to provide subscribers with basic health information, medical advice and laboratory report interpretations in the opted local language of the subscriber in addition to Urdu and English.

Female callers wishing to talk to female doctors will also be facilitated.

These preferences will be provided to callers via a specially designed call forwarding facility.

Tele-Doctor 1911 service is designed to provide callers with an assessment of symptoms and complete awareness on medical health-related questions based on internationally accepted and recognised medical decision-making protocols.

Telenor’s Tele-Doctor is all set to establish a new benchmark in corporate social responsibility in the industry by providing valuable medical advice to Telenor Pakistan subscribers. The service has been endorsed by the Ministry of Health, Government of Sindh.

Telenor launches mobile medical service
 
.
‘Prices of LPG can be reduced by enhancing production’

LAHORE: The prices of Liquefied Petroleum Gas (LPG) could come down to Rs 35 per kg if the production of LPG is enhanced, said Irfan Khokhar Zonal Chairman of FPCCI Standing Committee for LPG on Thursday.

He said the committee has made some recommendations and in the coming days would present it to the Prime Minister. He said that enhancement in production of LPG will not only reduce the price of the commodity but also the import bill of petroleum. “By investing in LPG, the government could reduce at least 15 to 20 percent petroleum products import bill,” Khokhar said adding that the price would ultimately come down to Rs 35 and Rs 40 per Kg. He said that the international price of LPG is higher and it’s sold for Rs 55,000 per metric tonnes. Khokhar said that before linking the price with the international market in December 2006, the prevailing price in Pakistan was around Rs 25,000 per metric tonne. When they were de-linked from the International market in September 2007, the price came down to Rs 39,000 per metric tonnes.

“Still the LPG producers are earning handsome money on the product but there is a possibility of reducing the prices,” he said adding that the government should promote LPG use in cars and other transport.

Daily Times - Leading News Resource of Pakistan
 
.
Water losses in Indus River recorded at 19%

ISLAMABAD: Average water losses in Indus River System have been recorded at about 19 percent according to the last ten years water flows in the system.

While talking to Daily Times spokesman of WAPDA said that water losses and gains in the river system is a natural phenomena and analysis of data for the last ten years flows shows that the average losses in the Indus River System are about 19 percent.

He said that technical committee of Indus River System Authority (IRSA) adopted a figure of 17 percent for the current Kharif season with consensus which was endorsed by IRSA’s advisory committee also.

He said that WAPDA only reports the flows at Tarbela and Chashma whereas Irrigation departments of respective provinces report flows on other control points on Indus. That is why WAPDA cannot be blamed for water losses and cannot be held responsible for any incorrect reporting and losses for the water system, he said.

He said that WAPDA has been stressing IRSA for adhering to the minimum release requirement of 15,050 cusecs from Tarbela. Minimum discharge requirement below Tarbela cannot be taken as causing the water shortages, the spokesman said.

Daily Times - Leading News Resource of Pakistan
 
.
Trade deficit to hit $19.525bn as imports rise beyond estimate

ISLAMABAD: Trade balance of the country based on latest balance of payment estimates is likely to reach at negative $19.525 billion against the budgetary estimates of $14.022 billion, official sources told Daily Times on Thursday.

Balance of payment estimates finalised by the new government, based on latest data, revealed that exports target was envisaged at $18.992 billion and the exports of the country during July-February period of current fiscal year amounted to $11.703 billion. It is now projected that exports of the country would fetch $18.650 billion by the end of current fiscal year against the budgetary target of $18.992 billion.

In the Trade Policy 2007-08 the Ministry of Commerce had fixed an exports target of $19.2 billion and realisation of $18.650 billion through exports would mean a shortfall in exports to the tune of $550 million during the current fiscal year 2007-08.

The imports were projected to be $33.014 billion at the time of the announcement of the budget; however, the imports have reached at $24.140 billion during July-February period. The imports of the country are now projected to be around $38.175 billion by end of current fiscal year as compared to the budgetary target of $33.014 billion, projecting an increase in imports by $5.161 billion in the current fiscal year 2007-08.

Invisible balance was estimated at $4.351 billion in the current years budget and during the July-February period this balance stood at $2.414 billion. The latest projections suggest that invisible balance during July-June period is to be $4.570 billion as against the budgetary projections of $4.351 billion.

Services (net) balance was estimated at 7.279 billion and during July-February period this balance amounted to $4.844 billion. According to the latest projections services balance will reach at $6.680 billion by June 30, 2008.

Private transfers were estimated at $11.630 billion during the current year’s budget and during July-February period private transfers amounted to $7.258 billion. The latest estimates suggest that private transfers are going to reach at $11.250 billion by the end of current fiscal year against the budgetary projection of $$11.630, leaving a shortfall of 38 million.

Workers remittances were projected in the budget to be $6.200 billion and in July-February period of ongoing fiscal year remittances have reached at $4.126 billion. According to the latest estimates remittances would be around $6.300 billion by the end of current fiscal year.

Latest import growth estimates suggest that imports would grow by 25 percent during this fiscal year and during July-February period a growth in imports was recorded at 21.9 percent. Exports growth would reach at 9.9 percent, suggest the latest estimates. The growth in exports during July-February period was recorded at 7.8 percent against the budgetary projection of 11.9 percent for the current fiscal year.

According to Asian Development Outlook 2008 released recently, the trade gap widened by over 25 percent in the first 7 months of this fiscal year. Textile exports remained, and will continue to be weak on expected lower cotton production and increased regional competition after the US and EU have ended the safeguard measures on textile imports from China. Higher shipping costs following the increase in oil prices will affect the services account further, which had already widened by almost 52 percent in the first 7 months of financial year 2008.

Daily Times - Leading News Resource of Pakistan
 
.
Car sales down by 9 percent in July-March 2007-08

* Situation improved slightly in March as compared to February thanks to tax suspension, say analysts​

By Mushfiq Ahmad

KARACHI: Sale of locally manufactured cars during first nine months of the current fiscal year fell by 9 percent to 107,262 units from 117,295 sold in the same period of last year.

Analysts keeping a keen eye on the developments in this industry say the reduced financing by financial institutions was to blame for the decline in sales. Also, the financing that is now on offer is very expensive for the common man and the general salaried class, they add.

When the car sales had surged under the previous government’s policies, it was not because disposable incomes of people had increased as was suggested by the then rulers. It was because of the cheap financing offered by financial institutions—which were then flooded by the overseas Pakistanis’ money—that the auto sector enjoyed large sales volumes.

“Price hikes, slowdown in car financing and higher mark up rates by banks and DFIs are the major factors attributable to auto sales slowdown during nine months of this financial year,” said Muhammad Rehan Khan, an analyst at First Capital Equities.

However, on month-on-month basis, sales depicted a growth of 17 percent, reaching 13,871 units in March as against 11,845 units in February. “This improvement in sales is the direct impact of removal of withholding tax (WHT) of 2.5 percent for 2 months effective February 21, 2008,” said Bilal Hameed, an analyst at JS Research.

The year-on-year comparison of the month, however, reveals an 11 percent decline.

On segregated basis, all the car manufacturers recorded decline in their sales volumes during the period under review.

On segment basis, sales of 800cc, 1000cc and 1300cc and above segment decreased by 2 percent, 7 percent and 15 percent, respectively, during the first nine months.

Combined sales of cars and LCVs for the first nine months (Jul-Mar) of this financial year stood at 136,587 units, showing a decline of 5 percent when compared to 144,072 units sold in the same period of last year. The share break up for Cars & LCVs in auto sales is 79 percent and 21 percent, respectively.

Pak Suzuki’s sales declined by 2 percent from 85,031 units in July-March last financial year to 83,677 in Jul-Mar for current financial year. Other assemblers posted negative growth of 3 percent (Indus Motors), 22 percent (Dewan Farooq) and 21 percent (Honda Atlas), respectively.

“We believe the reasons for year-on-year decline in sales are tightened car financing by banks, increasing trend of steel prices in international market and depreciating Rupee against Dollar and Yen. This has led to increased cost of production and ultimately an increase in car prices,” said Yawar Mustafa, an analyst at Capital One Equities.

PSMC’s market share stood at 75 percent in 800cc segment, 97 percent in1000cc segment and 5 percent in 1300cc segment with total market share of 63 percent. Indus’s market share stood at 25 percent in 800 cc segment and 69 percent in 1300cc segment with total market share of 26 percent. HCAR’s market share in 1300cc segment stood at 26 percent with total market share of 7 percent in March 2008. DFML’s market share in 1000cc was around 3 percent.

“We expect further raise in prices in the near future due to depreciating rupee yen parity and high steel prices,” said Mustafa.

Daily Times - Leading News Resource of Pakistan
 
.
Coal exploration starts at two new Thar blocks

KARACHI: Another local company, Deep Rock Drilling, has started drilling work recently for coal exploration at two new blocks of the Thar coal sites.

Sources in Sindh Coal Authority (SCA) told Daily Times on Friday that the authority had awarded drilling work contract to Deep Rock Drilling company at Block VII and VIII.

The company started drilling on Thursday and it would drill 80 holes in both the blocks and would complete the work in three months.

The sources said that the work on developing further two blocks at Thar had been started early this year and 100 square kilometers area is allocated for each block.

The entire development work at the blocks would be completed by end of this year, the sources said, adding that both the blocks have potential of six billion tonnes of coal reserves.

The SCA has developed six blocks so far at the Thar where an estimated 12 billion tonnes reserves of coa liesl.

The sources said that the new blocks would attract investors for coal-based power generation because of larger area and the development work was being done on modern lines.

The SCA had awarded licences at the six blocks to American AES, Hassan Associates, Australian-based Couger Energy, Sindh Carbon Energy Limited, Associated Group and Thar Coal Mine Company.

The Geological Survey of Pakistan had discovered the huge deposits of coal at Thar in 1992 during the research programme assissted by United States Geological Survey (USGS).

The area of Thar coal is spread over 9100 square kilometers with dimension of 140 km (north-south) and 65 km (east-west).

Geologists believed that the estimated reserves of Thar are about 175.506 billion tonnes of coal and are sufficient to meet fuel requirements of the country for centuries, having potential for generating about 100,000MW of electricity. muhammad yasir
Daily Times - Leading News Resource of Pakistan
 
.
Trade deficit outpaces exports

ISLAMABAD, April 11: Trade deficit hit an all-time high of $14.486 billion in the first nine months of the current fiscal year, up by 44.27 per cent from $10.041 billion recorded last year, mainly due to surging oil prices and high import of consumer items.

The deficit exceeded the exports of $13.476 billion.

The gap widened as the import of mobile phones, gold, luxury vehicles, perfumes, cosmetics, bullet proof vehicles etc penetrated the local market due to changing lifestyles.

The import bill of wheat and palm oil witnessed highest-ever increase due to rise in their prices in the international market.

The trade deficit escalated to $13.54 billion in 2006-07 from $1.412 billion in 1999-2000. The trend shows that the trade deficit in the current fiscal year will cross the figure of $20 billion putting an extensive pressure on the balance of payments.

If the non-debt creating inflows -- foreign direct investment, portfolios investment, GDRs and grants -- did not match the gap, the new government will be left with no option but to seek debts from donor agencies and domestic sources for financing the balance of payments.

Official figures released on Friday by the Federal Bureau of Statistics (FBS) showed that the import bill increased by 24.73 per cent to $27.962 billion in July-March 2007-08, against $22.419 billion last year. It witnessed an alarming increase of 45.78 per cent in March 2008 when it stood at $3.823 billion against $2.622 billion in the same month last year.

Exports grew by 8.87 per cent to $13.476 billion in July-March against $12.377 billion last year. The export growth recorded the highest-ever increase of 17.29 per cent in March 2008. This growth was the second straight in a row in the current fiscal year, which is unprecedented because the average growth over the past two years has been six per cent per month.

Analysts said the government should rationalise duty and taxes to regulate imports of the luxury items.

They say government should also focus on the value-added sector and diversify the export base instead of focusing on textile sector which is fetching maximum financial support.

With the rising oil bill, it is expected that the import bill will cross the figure of $36 billion by the end of June 2008. Last year the import bill was around $30 billion.

The export target of $19.2 billion has now become a far cry as the textile exports are steadily on the decline for last few months despite doling out huge subsidies from the national kitty. As the food inflation recorded the highest-ever increase, the government was compelled to slap a ban on export of certain food commodities to avert domestic shortages.

Due to this highest-ever trade deficits in goods and services the current account deficit has also reached an alarming level. The current account deficit will cross over $10 billion by the end of June 2008. Last year the current account deficit was $8.114 billion from over $500 million of 1999-2000.

Trade deficit outpaces exports -DAWN - Business; April 12, 2008
 
.
Weekly inflation up by 20pc

ISLAMABAD, April 11: The prices of 22 essential kitchen items witnessed an average seven per cent increase during the week ended on April 10, over the previous week.

According to the statistics division data issued here on Friday, the increase in the prices of kitchen items pushed up the weekly inflation, measured through the Sensitive Price Index (SPI), up by 20 per cent during the week under review over the corresponding period last year.

The impact of the increase in SPI was hard-hitting for the lower income group as compared to the rich people. The SPI witnessed an increase of 23.10 per cent and 22.72 per cent for households in the lower income brackets of up to Rs3,000 and Rs3,001-5,000, respectively.

For households in income brackets of Rs5,001-12,000, the increase in the SPI was 21.30 per cent, while for households in the income group basket of over Rs12,000, the inflation registered a growth of 18.72 per cent over the week last year.

As compared to the previous week, the SPI, however, registered an increase of 0.97 per cent for almost all income groups.

Prices of 22 items went up as compared to the previous week.

The prices of egg increased by 13.60 per cent to Rs50.52 per dozen against Rs44.47; an increase of 7.71 per cent in potatoes, which stood at Rs12 per kg during the week under review as against Rs11.29.

The price of wheat flour increased by 6.32 per cent to Rs19.67 per kg from Rs18.50, rice Irri-6, 5.36 per cent to Rs30.26 per kg against Rs28.72, 4.39 per cent in wheat to Rs18.08 per kg against Rs17.32, gram pulse washed 3.81 per cent to Rs46.37 per kg from Rs44.67, onions 2.78 per cent to Rs11.46 per kg as against Rs11.15, chicken 2.37 per cent to Rs104.87 per kg as against Rs102.44, basmati broken 2.23 per cent to Rs39.86 per kg against Rs38.99.

The lawn (cloth) price increased by 1.87 per cent to Rs88.15 per metre against Rs86.53, coarse latha 1.84 per cent to Rs40.93 per metre against Rs40.19, voil printed 1.83 per cent to Rs42.28 per metre as against Rs41.52, bananas by 1.10 per cent to Rs35.02 per dozen as against Rs34.64, red chillies 1.04 per cent to Rs164.55 per kg against Rs162.85, masoor pulse washed 0.67 per cent to Rs82.31 per kg as against Rs81.76, firewood 0.65 per cent to Rs235.39 per 40 kg against Rs233.87, washing soap nylon 0.56 per cent to Rs10.82 per cake as against Rs10.76, cooked beef plate 0.55 per cent to Rs34.93 per plate against Rs34.74, and shirting 0.40 per cent to Rs72.53 per metre against Rs72.24.

The price of mash pulse washed went up by 0.15 per cent to Rs72.52 per kg against Rs72.41, mutton 0.02 per cent to Rs240.67 per kg against Rs240.63, and vegetable ghee loose 0.02 per cent to Rs123.81 per kg against Rs123.78.

Weekly inflation up by 20pc -DAWN - Business; April 12, 2008
 
.
Status
Not open for further replies.

Latest posts

Back
Top Bottom