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Record $602 million remittances received in March
KARACHI (April 17 2008): The country received a record $602.21 million from overseas Pakistanis during March 2008, against $520.24 million during the same month of last year, depicting a rise of $81.97 million, or 15.76 percent. The previous highest amount remitted in a single month by Pakistani workers was $580.24 million in October 2007.
The inflow of remittances into Pakistan from almost all countries of the world rose last month as compared to March 2007. According to break-up, remittances from the USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $151.95 million, $120.11 million, $111.74 million, $85.44 million, $41.98 million and $15.01 million, respectively, as compared to the corresponding receipts from the respective countries during March 2007, ie $142.72 million, $92.69 million, $82.29 million, $70.43 million, $37.75 million and $12.88 million respectively.
Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during March 2008 amounted to $75.84 million as compared to $81.13 million during March 2007.
Remittances sent home by overseas Pakistanis continued to show rising trend as $4,728.37 million has been received in nine months (July 2007-March 2008) of the current fiscal year, showing an increase of $791.60 million, or 20.11 percent, over the same period of the last fiscal year.
The amount of $4,728.37 million includes $2.15 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs). The monthly average of remittances for the period July-March, 2007-08 comes out to $525.37 million as compared to $437.42 million during the same corresponding period of the last fiscal year, registering an increase of 20.11 percent.
The inflow of remittances in the July-March 2007-08 period from USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1,312.34 million, $881.95 million, $793.62 million, $704.27 million, $334.85 million and $131.13 million, respectively as compared to $1,034.69 million, $733.48 million, $595.98 million, $538.29 million, $319.25 million and $110.38 million, respectively in the July-March, 2006-07 period.
Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first nine months of the current fiscal year amounted to $568.06 million as against $602.80 million in the same period last year.
Business Recorder [Pakistan's First Financial Daily]
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Pakistan wants to sign GSPA on IPI project in May
* India indicates desire to re-join project
ISLAMABAD: Pakistan has expressed its desire to sign the Gas Sales Purchase Agreement (GSPA) with Iran in May, regardless of Indias participation in the Iran-Pakistan-India (IPI) gas pipeline project, sources said on Thursday.
The sources quoted Pakistani officials as telling Mashallah Shakari, the Iranian ambassador in Pakistan, during his meeting with Federal Minister for Petroleum and Natural Resources Khawaja Muhammad Asif, that Pakistan wished to finalise the project within a month.
Khawaja Asif said the early implementation of the project would strengthen and expand economic relations between the regional countries. He welcomed Indias participation in the project, and assured that Pakistan would provide all possible transit facilities for the natural gas to reach India.
India: The sources said Indian delegation that visited the petroleum minister on Wednesday had indicated a desire to rejoin the IPI gas project.
The sources quoted the delegation as telling the minister that Indias energy needs were higher than Pakistans and that it needed gas to meet its energy needs.
Khawaja Asif told the Iranian ambassador that Pakistan was also pursuing the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, to meet its growing energy demands and reduce dependence on the import of furnace oil. Pakistan and India will hold a round of negotiations on April 25 to resolve the issue of the transit fee that Pakistan will receive from India in return for the passage of gas from Iran to India.
Indian Oil Minister Murli Deora will visit Pakistan to represent his country. India has stayed away from previous talks on the IPI project and wanted first to resolve the issue of transit fee before entering into any agreement. Pakistan and Iran have finalised the draft of the GSPA for the IPI project. Officials said India and Iran could enter into a separate GSPA on the IPI project. Sapar Berdiniyaov, the ambassador of Turkmenistan to Pakistan, also visited Asif.
The minister told the ambassador that the upcoming steering committee meeting on the TAPI project, scheduled for April 22, would produce a positive outcome in the negotiation on the project. staff report
Daily Times - Leading News Resource of Pakistan
* India indicates desire to re-join project
ISLAMABAD: Pakistan has expressed its desire to sign the Gas Sales Purchase Agreement (GSPA) with Iran in May, regardless of Indias participation in the Iran-Pakistan-India (IPI) gas pipeline project, sources said on Thursday.
The sources quoted Pakistani officials as telling Mashallah Shakari, the Iranian ambassador in Pakistan, during his meeting with Federal Minister for Petroleum and Natural Resources Khawaja Muhammad Asif, that Pakistan wished to finalise the project within a month.
Khawaja Asif said the early implementation of the project would strengthen and expand economic relations between the regional countries. He welcomed Indias participation in the project, and assured that Pakistan would provide all possible transit facilities for the natural gas to reach India.
India: The sources said Indian delegation that visited the petroleum minister on Wednesday had indicated a desire to rejoin the IPI gas project.
The sources quoted the delegation as telling the minister that Indias energy needs were higher than Pakistans and that it needed gas to meet its energy needs.
Khawaja Asif told the Iranian ambassador that Pakistan was also pursuing the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, to meet its growing energy demands and reduce dependence on the import of furnace oil. Pakistan and India will hold a round of negotiations on April 25 to resolve the issue of the transit fee that Pakistan will receive from India in return for the passage of gas from Iran to India.
Indian Oil Minister Murli Deora will visit Pakistan to represent his country. India has stayed away from previous talks on the IPI project and wanted first to resolve the issue of transit fee before entering into any agreement. Pakistan and Iran have finalised the draft of the GSPA for the IPI project. Officials said India and Iran could enter into a separate GSPA on the IPI project. Sapar Berdiniyaov, the ambassador of Turkmenistan to Pakistan, also visited Asif.
The minister told the ambassador that the upcoming steering committee meeting on the TAPI project, scheduled for April 22, would produce a positive outcome in the negotiation on the project. staff report
Daily Times - Leading News Resource of Pakistan
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Private consortium to establish steel mill at Kalabagh
By Ijaz Kakakhel
ISLAMABAD: A consortium of eight local steel manufacturers on Thursday offered to develop iron ore deposits of Kalabagh and establish a steel mill having a capacity of one million tonnes per annum.
The offer was made in a meeting of follow up committee on steel workshop held on 25 January this year. Mohsin Syed, Member Board of Management of EDB presided it. The consortium informed the participants that a Chinese company had expressed readiness to transfer technology related to extraction of mines at Kalabagh.
However, they said main hurdle in establishing a steel mill at Kalabagh was the provision of land on lease as well as the provision of roads, rails, gas, power and other infrastructure related facilities. They lamented that all infrastructures related facilities were provided to foreign investors but the local were denied such provision. Main purpose of establishment of steel mill at Kalabagh was to utilise locally extracted iron ore.
In order to resolve all such issues confronting steel sector, the consortium would meet in Lahore on 24th April. During the meeting they would sort out the issues pertaining to logistics like railways and leasing of mines. The Engineering Development Board was asked to take up the issue with the concerned authorities and present a progress report in the proposed meeting.
For purchase of heavy machinery, the private stakeholders demanded the government to purchase machineries and provide them on rent to the stakeholders. But the committee stressed on private sector to make investment in heavy machinery and also forward it on rent to others. If the government purchase the machinery, then several problems will arise like, where to keep it and maintenance of the machinery would also be a problem, the committee added. However, the committee ensured the stakeholders that government would provide various incentives in this regard including exemption from various taxes.
The private stakeholders were asked to establish an action plan for enhancing investment in steel sector of the economy. The committee recommended that Pakistan Steel Mills should simultaneously increase its steel prices with the increase in international market so that the importers could comfortably import the raw material. This measure would help arrest the shortage of raw material. It was also proposed that Pakistan Steel might adjust steel prices after specific interval on the pattern of petroleum products. At present 20 percent steel demand was met through local resources and the remaining 80 percent through imports. Main purpose of linking the prices of steel products with international market was to ensure smooth supply of steel products across the country.
The committee emphasised the need for preparation of an action plan by private sector for encouraging new investment in the steel sector so that the government could facilitate the local investors. A majority of them pleaded for level playing field and suggested that the government should extend the same support as being extended to foreign investors. The representatives of the industry raised the question of abolishment of custom duties on steel products as reported by a section of press.
Daily Times - Leading News Resource of Pakistan
By Ijaz Kakakhel
ISLAMABAD: A consortium of eight local steel manufacturers on Thursday offered to develop iron ore deposits of Kalabagh and establish a steel mill having a capacity of one million tonnes per annum.
The offer was made in a meeting of follow up committee on steel workshop held on 25 January this year. Mohsin Syed, Member Board of Management of EDB presided it. The consortium informed the participants that a Chinese company had expressed readiness to transfer technology related to extraction of mines at Kalabagh.
However, they said main hurdle in establishing a steel mill at Kalabagh was the provision of land on lease as well as the provision of roads, rails, gas, power and other infrastructure related facilities. They lamented that all infrastructures related facilities were provided to foreign investors but the local were denied such provision. Main purpose of establishment of steel mill at Kalabagh was to utilise locally extracted iron ore.
In order to resolve all such issues confronting steel sector, the consortium would meet in Lahore on 24th April. During the meeting they would sort out the issues pertaining to logistics like railways and leasing of mines. The Engineering Development Board was asked to take up the issue with the concerned authorities and present a progress report in the proposed meeting.
For purchase of heavy machinery, the private stakeholders demanded the government to purchase machineries and provide them on rent to the stakeholders. But the committee stressed on private sector to make investment in heavy machinery and also forward it on rent to others. If the government purchase the machinery, then several problems will arise like, where to keep it and maintenance of the machinery would also be a problem, the committee added. However, the committee ensured the stakeholders that government would provide various incentives in this regard including exemption from various taxes.
The private stakeholders were asked to establish an action plan for enhancing investment in steel sector of the economy. The committee recommended that Pakistan Steel Mills should simultaneously increase its steel prices with the increase in international market so that the importers could comfortably import the raw material. This measure would help arrest the shortage of raw material. It was also proposed that Pakistan Steel might adjust steel prices after specific interval on the pattern of petroleum products. At present 20 percent steel demand was met through local resources and the remaining 80 percent through imports. Main purpose of linking the prices of steel products with international market was to ensure smooth supply of steel products across the country.
The committee emphasised the need for preparation of an action plan by private sector for encouraging new investment in the steel sector so that the government could facilitate the local investors. A majority of them pleaded for level playing field and suggested that the government should extend the same support as being extended to foreign investors. The representatives of the industry raised the question of abolishment of custom duties on steel products as reported by a section of press.
Daily Times - Leading News Resource of Pakistan
Post-tensioning construction technique reaches Pakistan
Friday, April 18, 2008
KARACHI: Pakistan is experiencing a wonderful real estate growth with some landmark projects, and in future this pace will increase, as the country is now on track moving ahead rapidly in the sector.
Hilmi Ghandour, Chief Executive Officer of Arabtec Pakistan told The News on the sidelines of a presentation on post-tensioning slab technique, organised by the company in collaboration with world-renowned CCL Gulf Prestressed Concrete LLC recently.
Post Tensioning is a technique of pre-loading the concrete in a manner which controls stresses and deflections that are inducted by the self weight and applied loads, while the structure is in service. Billions of square meters of post-tensioned slabs have been built in high-rise, commercial, residential and office buildings, parking structures, hotels, schools and hospitals.
It has been in extensive use internationally since decades in many parts of the world. Post-tensioned floor construction gained prominence during the construction boom in the 1980s and now consumes more than 50pc of the total quantity of post tensioning steel used worldwide, said Bhandour.
This would be a new technology to Pakistan though it has been successfully used and improved over the years in many other countries of the region. The technology reduces steel consumption in the projects, providing more space by cutting number of beams in the structure, and provides opportunity to the contractor to complete projects in less than half time, he elaborated. Roland Asaker, regional manager, CCL Gulf Prestressed Concrete LLC said the real estate growth in Pakistan is an offshoot of developments in the MENESA region (Middle East, North Africa and South Asia).
Arabtec Pakistan, through collaboration agreement with CCL plans to use post tensioning technique in the currently under-construction Karachi Financial Towers, being developed by EHSHAANLC Development in Karachi. This will avail the expertise of one of the world leaders in this technique for the construction of mega projects, which Arabtec Pakistan hopes to build in the coming future. The presentation was attended by the architects and engineering sector people, the licensing authorities, and the developers from private and public sector. CCL are one of the pioneers in pre-stressed construction methods in the world market.
Post-tensioning construction technique reaches Pakistan
Iran offers Pakistan help in water, power sectors
Friday, April 18, 2008
ISLAMABAD: Ambassador of Iran to Pakistan Masha Allah Shakeri on Thursday called on the Minister for Water and Power, Raja Pervez Ashraf, and discussed matters of mutual interest and bilateral relations to further boost economic ties between the brotherly two countries.
Pakistan and Iran have agreed to expedite the process of importing 1,000MW power by Pakistan from Iran on fast track basis for early completion of the project.
They also agreed to work out the possibilities of import of an additional 1,000MW power from Iran.
The ambassador offered to supply power and gas and also wind turbines to Pakistan to promote alternative energy from Iran. He said Iran is also interested to work in the water sector of Pakistan.
He said that joint investment companies may also be set up to boost economic ties in various other sectors. He also said Iran is also interested to invest in infrastructure development projects in Pakistan.
The ambassador praised the growing economic situation of Pakistan and offered investment in water and power sectors, particularly construction of dams.
He also suggested establishment of a joint investment company to look into the exchange of expertise to pave the way for investment opportunity in water and power sectors.
He offered sizeable investment in hydropower plants and expressed intention to finance power projects in Pakistan. The minister said that Pakistan has close brotherly relations with Iran and values the help and support of Iran and is desirous of expanding bilateral trade to the maximum possible extent.
The minister lauded the Iranian offer and said Pakistan has already signed an agreement to purchase 25MW electricity from Mund (Iran) and recently signed another agreement for purchase of 125MW and 1,000MW power from Iran.
He also assured full support and assistance to facilitate Iranian investors to invest in water and power sectors.
The Minister invited the energy minister of Iran to visit Pakistan to further discuss the investment in water and power sectors.
Iran offers Pakistan help in water, power sectors
ADB offers heavy investment in water, power
Country facing electricity shortfall of over 3,000MW: minister
Friday, April 18, 2008
ISLAMABAD: The Asian Development Bank has offered investment worth millions of dollars in the water and power sectors in Pakistan in the coming years.
This assurance was given by the head of the four member delegation of Asian Development Bank, Sean O Sullivan during a meeting with the Minister for Water and Power, Raja Pervez Ashraf here on Thursday.
The investment opportunities as well as the progress of on-going projects in water and power sectors were discussed in the meeting.
They assured technical and financial support and assistance for major water and power sector projects including the upgradation of the existing distribution systems and transmission lines in order to improve the efficiency of the system and the supply of electricity to the consumers, besides major rehabilitation and infrastructure projects in the water sector.
The Minister while welcoming the delegation informed that the present democratic government was keen on attracting foreign investment in the power sector as according to him there is great scope in this sector.
The Minister informed that currently Pakistan is facing a shortfall of more than 3,000MW of electricity, and the government is encouraging private investors to come forward and invest in the power sector.
He stated that the confidence of the domestic as well as foreign investors would get a boost and the economy would be made more stable through adopting rationale policies to remove all hindrances and bottlenecks in this respect.
He informed the delegation that Pakistan was also focusing on alternative energy projects like wind, solar energy, coal-based generation and hydropower and that the banks support in these fields would be a great help.
He said that to meet the shortfall in power, the government wants to increase the generation capacity and intends to install a large run of river hydropower projects, such as Kohala and Bunji, for which he sought the technical and financial assistance of ADB.
The delegation appreciated the needs of Pakistan and assured to provide all technical and financial assistance in this respect.
The head of the ADB delegation appreciated the efforts of the government on the growing steps to cope with energy needs.
He said that ADB was a major financer for the power sector in Pakistan, and it had also extended help in the water sectors mega projects including power transmission enhancement project, power distribution enhancement project, energy efficiency improvement and renewable energy development projects.
He said that to meet the financial requirements of these projects, a multi tranche financing facility to the extent of US$800 million extendable to $1200 million had been agreed up on.
He added that ADB is also assisting Pakistan in capacity building of the power sector institutions for which technical assistance was being extended.
The minister also informed the delegation that Pakistan was embarking on the construction of multipurpose dams which would meet the power needs on a long term basis.
This will involve an overall investment of over $18 billion in the next 5-10 years.
He expressed the hope that ADB would extend liberal financial assistance, particularly for the Diamir Bhasha Dam work, which is to be started early 2009.
The minister informed the delegation that to meet the urgent needs of power, some thermal projects were being started in the public sector but stressed the need for the involvement of private sector as a long term objective, and the continuity of the reform agenda in the power sector.
ADB offers heavy investment in water, power
OGDC makes oil discovery
Saturday, April 19, 2008
SINGAPORE: State-owned Oil and Gas Development Co (OGDC), Pakistans biggest listed firm, announced on Friday a small oil discovery in southern Sindh province, raising its oil output by 1,150 barrels per day (bpd).
OGDC, which is also listed in London, has ramped up investment in an effort to reduce Pakistans dependence on imported fuel at a time of record high prices.
This is a small discovery for OGDC with a per share impact of 0.17 paisa (100th of a rupee). We expect production from this discovery to start in the next 18 months, said Umer Bin Ayaz, an analyst at JS Global Capital Ltd.
The discovery was made in the companys wholly-owned Exploratory Moolan North Well No 1.
OGDC reported flat July-December earnings and is due to report nine-month results to end-March on April 28.
OGDCs oil production totalled 45,221 bpd and 1,171 million metric cubic feet a day in March, according to its website.
Last week, Pakistan finalised plans to issue an exchangeable bond with an option for OGDC shares, to be jointly managed by ABN AMRO, Barclays and JP Morgan.
OGDC shares were off 0.4 per cent on Friday in a broader market that was up 0.4 per cent at a record high.
OGDC makes oil discovery
Omantel acquiring 65pc stake in Worldcall for $200m
Saturday, April 19, 2008
LAHORE: The auction for licences of 3rd Generation (3G) mobile phone services is planned through an open biding process and only three cellular service providers would be awarded these.
Chairman Pakistan Telecommunication Authority Major General Retd Shahzada Alam Malik has said that the process of awarding the licences would be completed by the end of this year.
He was talking to reporters at the signing ceremony of Omantel SAOG and Worldcall Telecom Limited. Ambassador of Oman to Pakistan, Mohammad Bin Said Bin Mohamed Al-Lawati was also present.
After launching of 3G services, the mobile users will be able to use Internet with high speed, make video calls and other value-added data services which is dream in Pakistan. He said that deliberations for issuing the 3G licences were almost complete.
Later, Worldcalls CEO Salman Taseer said that it was great pleasure that Omantel SAOG and Worldcall Telecom Limited announce acquisition by Omantel of a majority stake in Worldcall Telecom Limited. Omantel is acquiring 488.8 million (65 per cent of available) shares of Worldcall. Of this, 451.2 million shares are from sponsors while 37.5 million are being purchased from the public through the securities markets. The total value of this landmark transaction is around $200 million.
He said that Worldcall was positioned in a unique way being the only true Multi Service Operator (MSO) in Pakistan telecom landscape with proven track record and established market position in various segments of its operations.
Through this acquisition, Omantel has acquired direct access to a market of 170 million with immense potential for growth in core telecom and broadband services, he remarked.
He further informed that Worldcall had licenses to operate LDI, WLL and other telecom services across Pakistan as well as rights to a nationwide long haul network. Its WLL services cover 46 cities while its distribution network, which is one of the largest, reaches 59,000 outlets in 220 cities and towns, Taseer added.
Omantels CEO Dr. Mohammed bin Ali Al Wohaibi said that Omantel plans to escalate existing Worldcall operations to excel in telecom offerings with further enhancement of network reach and delivery capacity targeting a rapid growth in market share. Focus of rollout will principally target broadband segment with sustained growth of voice centric services. This planned expansion coupled with initial investment would see a sizable inflow of capital into Pakistan, he added. He said the new board members for Worldcall had now been nominated.
Omantel is a publicly traded telecom company, majority owned by the government, based in Oman with diversified operations. Acquisition of majority stake in Worldcall is its first overseas venture.
Omantel acquiring 65pc stake in Worldcall for $200m
UK to invest more in Pakistan
Saturday, April 19, 2008
KARACHI: British Deputy High Commissioner Robert Gibson has said that in the coming years his office will encourage more companies from Britain to invest in Pakistan and act as a significant proponent of the country as an emerging market for foreign investors.
In a meeting held with Waqar Malik, President of Overseas Investors Chamber of Commerce & Industry (OICCI), he stressed the importance of taking a strategic approach towards finding and utilising investment opportunities in the country. he said that this will require efforts to maintain a favourable business climate.
Malik acknowledged the long-standing relationship that the two organisations have enjoyed over the years. He briefed Gibson about the role and ongoing activities of the chamber, the contribution of OICCI members to Pakistans economy and the role of UK-based companies amongst overseas investors.
He added that the overall business climate in the country is positive for foreign investors. However, the countrys current law and order situation requires improvement, adding that consistency in government policies and the growing domestic economy are key contributors to making Pakistan an attractive investment destination. Malik also emphasized that Pakistan has immense growth potential and incentives to promote several areas such as; food processing, infrastructural development, engineering and information technology.
UK to invest more in Pakistan
PSEB targets Canada to explore opportunities
Saturday, April 19, 2008
KARACHI: The Pakistan Software Export Board (PSEB) is all set to explore opportunities in the Canadian information technology market. Targeting Montreal, Ottawa and Toronto as its prospective business and IT hub, the PSEB is organising meetings in Canada from April 21 to 30, stated a press release.
These meetings are being organised in association with Canada Pakistan Business Council (CPBC), Export Development Canada (EDC), Canadian Advanced Technology Alliance (CATA), Canadian Imperial Bank of Commerce (CIBC), The Indus Entrepreneur (TIE) and Royal Bank of Canada (RBC).
A PSEB official stated that the visit will enable Pakistani IT companies to learn from successful experiences of their counterparts and expand their presence globally.
These meetings will provide an international platform for member IT companies to interact with the Canadian market. The PSEB will showcase the success of Pakistans IT industry to the international investors so as to attract them to open development centres in Pakistan. With lucrative government incentives, top of the line IT infrastructure and competitive workforce, Pakistan is emerging as a destination of choice for global outsourcing vendors.
The PSEB delegation comprises of 21 member companies, which are renowned in their respective areas of expertise particularly in software/hardware development, web applications, graphics, animation multimedia, and other business process management services. The participating companies include: Netsol Technologies, Palm Chip, Xorlogics, Voxel Communication, Webiz Media, Super Technologies Inc., Softech Systems, Server4Sale, Sapphire Consulting Services, PrisLogix, PMS (Pvt) Ltd, Matora Digionics, Mansha Soft, Invaterra, East West Systems, EfroTech Services, DataFocal Systems, AKSA-SDS, A2Z Creatorz, 110 Solutions and PIBAS Pakistan.
According to the Centre for Outsourcing Research & Education Canada (CORE) Canadas IT infrastructure and Business Process Outsourcing (BPO) is worth more than $50 billion. In addition, the sector is also focusing on expanding its outsourcing activities. Large organisations in Canada have already started adopting outsourcing as their operational strategy to access expertise and additional capabilities and to save costs. The report also confirms that the financial sector including banking and insurance is ranked highest for outsourcing, followed by telecommunications, public sector and energy/utilities.
PSEB targets Canada to explore opportunities
US offers Pakistan $7 bn in non-military aid
Friday, April 18, 2008
WASHINGTON: The US has promised to curb air strikes by drones against suspected militants in Pakistan as part of a joint counter-terrorism strategy agreed with the new civilian government in Islamabad, the Guardian has learnt.
That strategy will be supported by an aid package potentially worth more than $7 billon (£3.55 billon), which is due to go before Congress for approval in the next few months. The package would triple the amount of American non-military aid to Pakistan, and is aimed at "redefining" the bilateral relationship, US officials say.
Pakistan will also be given a "democracy dividend" of up to $1 billon, a reward for holding peaceful elections and forming a coalition government. Of that, $200 million could be approved in the next few days.
The aid package, being put together by Democratic Senator Joseph Biden, will mark a decisive break in the US policy on Pakistan, which for much of the past nine years focused on President Pervez Musharraf and the Pakistani military as Washington's primary partners in the "war on terror". Officials in Washington said on Wednesday that the shift had already been made.
"Senator Biden wants to show the relationship is much broader than a military one, and that we are willing to sustain it over time," one of the senator's senior aides said on Wednesday. A US administration official said: "Each day Musharraf's influence becomes less and less. Civilians are in control. People aren't meeting with Musharraf any more ... we are very pleased with the new civilian government."
Pakistani officials say much of the new counter-terrorism aid will be spent on civilian law enforcement institutions, such as the interior ministry, the Intelligence Bureau and the Federal Investigation Agency, rather than being channelled almost exclusively through the Army and the military-run Inter-Services Intelligence (ISI).
The new government says it has also won American support for its policy of opening a dialogue with tribes along the Afghan border, led by the Awami National Party. The new understanding on air strikes by US Predator drones is seen in Islamabad as a critical benchmark for the new relationship.
In January senior US intelligence officials flew to Islamabad and struck an agreement with Musharraf to give the American military a freer hand in the use of Predators against targets in Pakistan's tribal areas, which have become havens for al-Qaeda and other foreign Jihadists as well as Taliban forces fighting Nato forces and the government in Afghanistan, according to The Guardian.
The subsequent increase in Predator strikes estimates of the number range up to eight caused outrage in Pakistan. Britain also broke with Washington over the reliance on air strikes often guided by uncertain intelligence.
Pakistani officials say they have been given assurances by Washington that there will be close consultation with the civilian government, not with Musharraf, before any future strikes. However, the use of Predators is held as a closely-guarded secret and US intelligence is reluctant to share information about targets, and there is some skepticism in Islamabad over whether the deal will stick.
"We'll have to take them at their word, won't we," said Information Minister, Sherry Rehman, in an interview in Islamabad. She added that Washington's previous emphasis on ties to Musharraf and the Pakistani military "hasn't provided the results that were supposed to happen on the ground".
The US has given Pakistan about $10 bn in military aid during the past seven years, but it has not diminished the Taliban insurgency in Afghanistan, while Pakistani extremism is also on the rise. Some officials in Washington believe most of the money has been used to build up Pakistan's conventional forces for use in a possible future conflict with India, rather than spent on counter-insurgency.
Furthermore, much of the money being used for counter-terrorism is being misspent, both Pakistan and US government officials say. As an example they say that Musharraf distributed the $25 million reward money for capturing or killing "high value" al-Qaeda targets in the form of an "inverted pyramid".
"A few thousand would go to the police constable on the ground, who actually spotted the guy, but the millions go to the generals up the chain," a Pakistani official said. No wonder, he added, the tip-offs stopped coming in and the number of high-profile arrests dropped.
http://www.thenews.com.pk/arc_default.asp
The irresistible rise of stock market
Friday, April 18, 2008 KARACHI: The Karachi bourse on Thursday crossed 15,600 points resistance level very easily.
Benchmark KSE 100-share Index closed at 15,622 points marking a hat-trick of record closing on third consecutive day - posting a notable gain of 82 points or 0.53 per cent in this session only.
The free-float market capitalisation based 30-Index rose by 48 points or 0.25 per cent to end at 18,996 points new level - just four points short of 19,000 points.
The energy giant stocks OGDC remained dormant throughout the session and not even a single share was traded on board. The banking blue chips also came under selling pressure owing to Competition Commission probe and curb on alleged banking cartel, analysts observed.
Energy, cement, fertilizer and telecom sectors attracted fresh funds on board, they added.
Development on internal and external political fronts gave a green signal to bulls going ahead, analysts said.
They maintained that the US Congress approval of Democratic Dividend package of $1.5 billion per annum for the next 10 years for Pakistan, and shift in its foreign policy towards Pakistan - from Musharraf centric to parliament centric - are all good signs for the country.
Therefore, KSE was running fast in forward way on the back of rise in international oil, DAP and cement prices.
Crude oil reaching above $115 per barrel convinced investors to pump more funds in equity markets, said Ahsan Mehanti a market analyst.
Soon to commence financial result announcement season for the quarter ended on March 31, 2008, also intimated buyers to upload fundamentally strong stocks.
S. Kashif Mustafa said that telecom sector lead the index with PTCL playing a pivotal role gaining Re0.95 per share on volume of around 8.5 million shares.
ENGRO, FFBL and FFC gained values with healthy volumes. We anticipate investors to remain confident in fertilizer sector with DAP and urea prices on the rise, Kashif added.
Oil and gas gained momentum during the session with core stocks of the E&P sector. OMCs also gained values with oil prices reaching about $115 per barrel and anticipated passing of the oil prices in the local market, Mustafa said.
Major banking stocks, NBP, UBL and HBL remained depressed, however some respite was seen from gains in MCB, he added.
Turnover in the ready market slightly surged to 290 million shares from 268 million shares recorded a day earlier. Future market turnover enhanced to 74 million shares as compared to 69 million shares of previous session.
Accordingly, the overall market capitalisation improved by Rs26 billion to stand at Rs4.779 trillion.
Among 377 counters on board 233 posted gains, 113 suffered losses and value of 31 scrips remained unchanged.
Highest volumes were witnessed in Nishat Mills at 23.012 million closing at Rs132.80 with a gain of Rs6.30, followed by DG Khan Cement at 22.990 million closing at Rs118.85 with a gain of Rs3.75, Bank of Punjab at 16.167 million closing at Rs62.70 with a gain of 45 paisa, Bank Al-Falah at 15.607 million closing at Rs55.60 with a gain of Rs1.10 and Engro Chemical at 12.965 million closing at Rs373.75 with a gain of Rs3.55.
http://www.thenews.com.pk/arc_news.asp?id=3
US share in Pakistani exports falls to 22 percent
KARACHI: The share of United States of America in overall exports from Pakistan has dropped to 22 percent during the first half of current financial year from 26 percent in the same period of last year, official statistics indicated.
However, it is still the single largest buyer of Pakistani products.
Pakistan exports almost all textile products to USA as well as surgical items, rice, fruits, sports goods, footwear, chemical goods, engineering items, etc. Exporters, however pointed out that the base of products exported to USA was confined largely to traditional textile sector and value added sector could not post higher growth during the said period.
Analysts said that due to narrow base of Pakistani products and intense competition put up by its regional competitors, the share of local products remained stagnant to its major markets like USA and European Union (EU).
Comparative analysis of export to various parts of the world shows that export to United Arab Emirates (UAE) and Afghanistan only registered substantial growth as share of these two markets in overall export jumped substantially during the July-December period of current fiscal year.
UAE share jumped to almost ten percent during this period from 6.68 percent in the last year in total export whereas share of Afghanistan also surged to 5.79 percent from 4.96 percent during the last year.
In European market, export to United Kingdom (UK) stood at 5.66 percent of total exports, which was 5.84 percent last year. Share of Germany remained almost stagnant at 4.28 percent during the first half compared to 4.24 percent in the previous year.
Exports to Italy were 3.80 percent of total export whereas share of export to Spain Turkey, Netherlands, Belgium and France stood at 2.89, 2.67, 2.66, 2.16 and 2.10 percent, respectively.
In Asian market, despite having Free Trade Agreements (FTAs) with China and Malaysia, exports could not register major gains as share of these two markets in total export of the country was 3.38 and 1.15 percent compared to 3.16 and 1.09 percent for the corresponding period last year, respectively.
The exports to other Asian markets like Hong Kongs share decreased to 3.12 percent from 3.82 percent last year whereas export to India also declined to 1.50 percent from 1.62 percent during the period under review. Bangladesh and Korea Republics shares remained stagnant.
In Middle East market export made to Saudi Arabia were also stagnant at 1.76 percent from 1.82 percent during the last year.
Despite governments pledges, country could not penetrate in the big African market as no big market was found for local products and like previous years, only South Africa was among the top 20 exporting markets, whose share in overall export also fell to 1.49 percent during first half of this fiscal year compared to 2.16 percent in the previous year.
Daily Times - Leading News Resource of Pakistan
Privatisation unable to stop budget drain
ISLAMABAD: A staff team of the International Monetary Fund (IMF) has noted that despite the privatisation of the Karachi Electricity Supply Corporation (KESC) and commercialisation of the Water and Power Development Authority (WAPDA), the overall drain on the budget from WAPDA, and other state enterprises such as Pakistan Railways and Pakistan International Airlines remains substantial.
Subsidies to KESC also continue largely as a function of regulation of electricity tariffs.
IMF Report on Observance of Standards and Codes Fiscal Transparency Module-an update on Pakistan reveals that the IMF staff encourages the Auditor General Pakistan (AGP) to amend the legal framework for audit to permit all areas of risk to the public finances to be audited under the AGPs direction.
Current audit practices are under review, with the expectation that regulatory changes will be introduced to extend the AGP oversight to all areas of government operations. Medium- and long-term measures recommended by staff team of the IMF require that a program classification, based on sub-detail functions, covering all ministries should be developed as part of the full Medium Term Budgetary Framework (MTBF) rollout. The MTBF implementation is following an ambitious rollout plan. A unified classification derived from the existing chart of accounts will build on the present system and support the top-down allocation process. Fiscal affairs department staff suggests that the present budget classification permits evolution to a more focused programme approach, which will help to address a number of critical long-term change issues. Operational programmes so defined would incorporate both development and recurrent budgets relevant to that function element. Starting from an across-the-board classification within the existing chart of accounts would contribute to several important transparency and management objectives.
It would help develop 10-year medium-term economic framework paper. For instance, the full cost of energy subsidies could be estimated from the discounted value of the price differential between controlled and market prices (incorporating different policy assumptions in the analysis).
Unify the development and recurrent budget processesnew proposal submissions for programmes should be evaluated in a similar way to development projects, but cover both capital and recurrent spending.
Daily Times - Leading News Resource of Pakistan
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