Pakistan Economy - News & Updates - Archive

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'Pakistan can increase its exports to India through Sri Lanka' ​

KARACHI (April 22 2008): Pakistan has good opportunity to increase its export to India through Sri Lanka by exploiting the Free Trade Agreement (FTA) between Sri Lanka and India, said Consul General of Sri Lanka, V.S. Sidath Kumar here on Monday.

Addressing members of Karachi Chamber of Commerce and Industry's (KCCI) sub committee on diplomatic affairs, he said that FTA between India and Sri Lanka includes 2004 items.

Pakistan can export its products to Sri Lanka and after some value addition these could be exported to India, he added. He inform that a high-powered Sri Lanka business and investment delegation will visit Pakistan in May to explore possibilities of investment and establishing industrial units as joint venture.

He said the delegation will prepare suggestions for increase two-way trade and identify areas wherein investment can be made or joint ventures be executed.

Referring to FTA between Pakistan and Sri Lanka, he said that both the countries need to work deductively to achieve one billion dollars bilateral trade's target.

He said that the government of Pakistan has allowed Sri Lanka airline to operate 7 flights a week, whereas the airline is operating only three flights a week between Karachi and Sri Lanka. Sidath Kumar said that the airline has also planning to start its flights from Islamabad and Lahore.

He said that Colombo Chamber of Commerce and Industry (CCCI) has indicated to singe Memorandum of Understanding (MOU) with KCCI on mutual co-operation. He assured that business community of his country would take part in KCCI's annual exhibition, which is scheduled to be held in June this year.

Business Recorder [Pakistan's First Financial Daily]

 

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Government has no plan to impose ban on rice export: official ​

ISLAMABAD (April 22 2008): The government has no plan to ban rice exports at present, a senior government official told Business Recorder, requesting anonymity. "We have no plan to impose ban on rice exports as Pakistan's position is entirely different from India, Vietnam, Philippines and Bangladesh where rice is a staple food," the official added.

The official was of the view that possible ban on rice exports would negatively impact paddy sowing and consequently, the country may have to face a crisis similar to the ongoing wheat crisis. He alleged that exporters were creating confusion with the objective of cancelling their previous contracts with foreign buyers to renegotiate at the current high rate.

Another reason, according to the official was the high input costs attributed to skyrocketing diesel prices, fertiliser and low electricity availability. "No farmer will opt for sowing rice in case of ban on exports and an increase in cost of production," the official added.

The official said the issue has been raised by rice exporters who struck deals a few months ago when the international prices were low and now these exceed contract rates. The official further said that some of the exporters were actively lobbying for a ban on exports but it would be difficult for the concerned officials to endorse their proposal.

"If the government goes for export ban it will be deprived of substantial foreign exchange which will also negatively hit the export target," the official maintained. The sources said that the issue has been discussed in the secretaries committee meeting held on Monday to discuss the prices of essential items.

According to the FAO world rice production is expected to increase in 2008 by 12 million tons or 1.8 percent, assuming normal weather conditions. Production increase would ease the current very tight supply situation in key rice producing countries, according to the first FAO forecast for this year.

Sizeable production increase is expected in all the major Asian rice producing countries, especially Bangladesh, China, India, Indonesia, Myanmar, the Philippines and Thailand, where supply and demand are currently over stretched. Governments in these countries have already announced a series of incentives to raise production.

Production outlook is also positive in Africa, where high world prices may sustain a two percent growth, particularly in Egypt, Guinea, Nigeria and Sierra Leone. Concerns about food import dependency in the region have led to a mobilisation of resources towards the rice sector. Production is expected to recover strongly in Latin America. Rice production in the European Union is also expected to rise while it may contract in Japan, one of the few countries where farm prices fell last year. International trade in rice in 2008 is currently foreseen to reach 29.9 million tonnes, 1.1 million tonnes lower than the revised 2007 trade estimate.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan, Canada discuss economic co-op to reduce poverty ​

April 22, 2008

Canada and Pakistan discussed increased economic cooperation with the objective to support sustainable development in order to reduce poverty and contribute to a more secure, equitable and prosperous Pakistan.

The initiatives were discussed in a meeting between David B. Collins Canadian High Commissioner and Senator Ishaq Dar, Federal Minister for Finance, Revenue, Economic Affairs and Statistics here on Tuesday, the News Network International news agency reported.

The two sides discussed steady increase in the Canadian assistance for water supply, sanitation, health and reproductive health projects to be implement through Canadian International Development Agency (CIDA). The bilateral 10-year strategy proposed by CIDA focusing on basic education, gender equality and democratic accountability was also discussed at the meeting.

It was noted that through annual bilateral consultation the two governments would discuss implementation of the Canadian assistance. The consultations are held alternatively in Pakistan and Canada.

Ishaq Dar reiterated that the Pakistani government would pursue the policy of transparency and was committed to bringing down fiscal deficit and inflation to a manageable level.

Pakistan, Canada discuss economic co-op to reduce poverty - People's Daily Online

 

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Pakistan to receive record $3b remittances from GCC ​

Khaleej Times - 22/04/2008

(MENAFN - Khaleej Times) Overseas Pakistanis residing in GCC states remitted 21.5 per cent more foreign exchange to the country by sending $2.37 billion in first nine-months of financial year 2007-08.

Pakistani workers in the UAE remitted 33 per cent more as the amount is estimated at $793.62 million in July-March 2008 period as against $595.9 million in the same period of 2006-07. In this regard, Dubai contributed significant share as the amount remitted from the emirate stood at $552.45 million in first nine months of present fiscal year. Workers in Abu Dhabi and Sharjah also remitted $218 million and $21.5 million respectively.

$6 billion mark: Meanwhile, banking officials in Pakistan told this correspondent that remittances are likely to cross $6 billion mark for the first time on strong inflows from the GCC region.

"GCC contributes about 50 per cent in total remittances and this year inflows from the region are likely to cross $3 billion by June," they said. Last year, remittances from GCC states exceeded $2.5 billion mark.

"The significant increase in remittances from Gulf region is due to booming regional economies owing to bullish oil market and robust growth in construction and real estate sectors," they said.

Saudi Arabia ($881.95 million) and UAE ($793.62 million) remained on top by keeping strong inflows to Pakistan, while other GCC states - Kuwait ($272.93 million), Qatar ($167.15 million), Oman ($159.81 million) and Bahrain ($104.38 million) - also contributed significantly during first nine months of present financial year.

Record remittances: Pakistan received the highest-ever $5.49 billion remittances during fiscal year 2006-07 and the present trend indicates that inflows from top three regions - GCC, US and European Union - will continue in last quarter.

State Bank of Pakistan (SBP), the central bank, received $4.72 billion remittances in July-March 2008 period, showing an increase of $791.6 million or 20.1 per cent over the same period of previous fiscal year. It also includes $2.15 million received through encashment and profit earned on Foreign Exchange Bearer Certificates and Foreign Currency Bearer Certificates.

Single largest contributor: Latest statistics from SBP revealed that the United States is the single largest contributor in remittances as overseas Pakistanis in US sent $1.32 billion in first nine months of 2007-08. Remittances from European Union amounted to $465.98 million in which United Kingdom ($334.85 million) contributed the major share. Moreover inflows from Norway, Switzerland, Australia, Canada, Japan and other countries also recorded 5.76 per cent increase and amounted to $568.06 million in July-March 2008.

Highest monthly inflows: Workers' remittances recorded highest ever increase in March this year as the inflows surged to $602.21 million as against $520.24 million in March 2007, reflecting an increase of 15.76 per cent. However, in terms of percentage change, remittance inflows surged 42.35 per cent in January ($557.07 million) this year. Remittances registered only 0.85 per cent growth in December 2007 when the country received $479.26 million as against $475.21 million in December 2006.

Talking to Khaleej Times, a senior official at a local bank said remittances remained on higher side in previous two fiscal years and inflows are likely to hit record $6 billion mark by June 30 this year.

"Strong growth in remittances will not only help bridge widening gap between imports and exports but it would also support weakening rupee," they said.

Pak rupee lost five per cent against the US dollar in the past 12 months due to dwindling exports and rising imports chiefly because of high oil and food prices in the international market.

"Foreign direct investment also slowed due to political upheaval in past one year and record remittances will definitely ease pressure on balance of payments and foreign exchange reserves," he added.

The inflow of higher remittances despite unstable economic situation would be a cool breeze for the new government, which has no other option but take harsh measures to correct the economic imbalances.

"The most worrisome issue for the government is the rising trade deficit which even surpassed total exports of the country in the first nine months of the current fiscal. The higher foreign exchange inflows would support the government to meet some of its huge deficits," he concluded.

MENAFN - Middle East North Africa . Financial Network News: Pakistan to receive record $3b remittances from GCC

 

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OGDC makes discovery at Pakhro Well

KARACHI: The Oil and Gas Development Companies (OGDC) Limited has announced a discovery at Pakhro Well No 1 in NIM exploration site, where the company owns a 95 percent production stake (5 percent owned by Government Holdings private limited).

The well was drilled down to the depth of 3,692 metres, and according to initial tests, condensate and gas flow from the well stood at 9 barrels per day of condensate oil and 8.2 mmcfd of gas.

As per initial reports, the production will commence from the well within next 20 months. Targeting to test the potentials of sands of lower goru formation of creataceous age. This well is based on log data, 03 zones. The production testing of Zone-3 (Basal Sands) of lower goru sand member proved to be productive.

This is the second discovery of this month. Earlier, OGDC had announced its small discovery in southern Sindh province, raising its oil output by 1,150 barrels per day (bpd). The company has spudded 7 wells and made one discovery, at Moolan -1 during first quarter of 2008.

OGDCL is the national oil and gas company of Pakistan and the flagship of the country’s exploration and production sector. The company is the local market leader in terms of reserves, production and acreage, and is listed on all three stock exchanges in Pakistan and also on the London Stock Exchange since December 2006. staff report

Daily Times - Leading News Resource of Pakistan

 

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Domestic debt near Rs3 trillion ​

Wednesday, April 23, 2008

ISLAMABAD: Pakistan’s total outstanding domestic debt rose to Rs2.967 trillion ($48 billion) by the end of February 2008, from Rs2.6 trillion ($41 billion) recorded at the end of fiscal year 2006-07. This depicted a worrisome increase of Rs366 billion or $5.8 billion during the eight months, the State Bank of Pakistan (SBP) said.

An interesting feature of the provisional data released by the bank was that the increase in domestic debt during July-February 2007-08 was mostly due to a rise in the stocks of floating debt. The unfunded and permanent debts have also jacked up the total debt to a sizeable amount.

During the eight months, the floating debt went up by Rs270.6 billion, permanent debt by Rs48.89 billion and un-funded debt increased by Rs46.69 billion.

The permanent domestic debt comprising medium and long-term market loans, federal government loans, special government loans, federal instruments and prize bonds, stands at Rs601.86 billion, which totalled Rs552.97 billion at the end of the fiscal year 2006-07.

The floating domestic debt, mainly comprising short-term debt instruments and market treasury bills, maintained a rising trend and was recorded at Rs1.107 trillion at the end of June 2007. During the following eight months, it went up to Rs1.378 trillion. Un-funded domestic debt comprising National Saving Schemes (NSS) stand at Rs986.69 billion, which at the end of the last fiscal year was at Rs940 billion.

The data reveals that net mobilisation under all instruments of the NSS were on the rise during the period under review, against the corresponding period of the last fiscal year. The reason for this is the attractive interest rate extended by the government on these instruments.

Saving instruments such as Bahbood Saving Certificates, Defence Saving Certificates, Pensioners Benefit Accounts, Special Saving Accounts and Special Saving Certificates increased, while deposits in Regular Income Certificates, Mahana Amadani Accounts and GP fund accounts declined.

Domestic debt near Rs3 trillion

 

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Exports rise by 21.26 per cent ​

Wednesday, April 23, 2008

ISLAMABAD: Exports from Pakistan during March 2008 amounted to Rs112,097 million as against Rs97,368 million in February, 2008 and Rs.92,442 million during March, 2007 showing an increase of 15.13 per cent and 21.26 per cent respectively.

According to the provisional figures released by the Federal Bureau of Statistics, exports from July to March of the current financial year totalled Rs827,359 million as against Rs750,350 million during the corresponding period of last year showing an increase of 10.26 per cent.

Main commodities of exports during March, 2008 were cotton cloth (Rs10,645 million), bedwear (Rs9,935 million), knitwear (Rs8,622 million), readymade garments (Rs8,273 million), cotton yarn (Rs.6,655 million), rice basmati (Rs5,246 million), rice others (Rs4,541 million), petroleum products (excl Top Naphta) (Rs4,109 million), art, silk & synthetic textile (Rs4,036 million) and leather garments (Rs3,429 million).

On the other hand, imports into Pakistan during March 2008 amounted to Rs239,910 million as against Rs229,133 million in February 2008 and Rs159,172 million during March 2007 showing an increase of 4.70 per cent and 50.72 per cent respectively.

Imports from July-March (2007-2008) amounted Rs1,718,636 million as against Rs1,359,186 million during the corresponding period of last year, showing an increase of 26.45 per cent.

Main commodities of imports during March 2008 were petroleum products (Rs35,938 million), petroleum crude (Rs.31,606 million), wheat unmilled (Rs16,847 million), raw cotton (Rs9,407 million), other apparatus (telecom) (Rs9,216 million), fertilizer manufactured (Rs8,075 million), palm oil (Rs7,829 million), plastic materials (Rs7,449 million), iron & steel (Rs7,438 million) and power generating machinery (Rs.5,619 million).

Based on the provisional figures of imports and exports the balance of trade in March 2008 was (-)127,813 million in terms of rupees and (-)2,036,859 thousands in US dollars.

The balance of trade figures cumulative from July-March (2007-2008) were (-)891,277 million in terms of rupees and (-)14,486,852 thousand in US dollars.

Exports rise by 21.26 per cent

 

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Italy seeks JVs in infrastructure projects ​

Wednesday, April 23, 2008

ISLAMABAD: Pakistan offers investment opportunities and policies that attract foreign investors, the Italian trade team head said in a meeting with the officials of Infrastructure Project Development Facility (Ministry of Finance), and Investment Division & Board of Investment.

Ambassador of Italy Vinchenzo Parti led the delegation comprising Gerado Carante Diplomatic Counselor ANCE, Bernadino Chiaia Vice Rector Politecnico di Torino, Dr. Gastone Guerrini Guerrini Company, Dr Alberto Regis Cuerrini Pivato Company, Shamsher Alam GM Guerrini Privato Company, and Dr Michele Bulgaro of Verona Expo.

Ambassador of Italy, Vinchenzo Prati said that Italy wants to invest in hydropower generation, railways, roads and infrastructure projects in Pakistan in collaboration with the local companies.

Ahmed Waqar, Secretary Investment Division & Board of Investment welcomed the construction and development industry leaders from Italy and said that in past Italian construction and development firms have been very active in Pakistan, particularly in the water energy infrastructure projects.

Pakistan would again welcome the Italian private sector and have them proactively participate in infrastructure projects in Pakistan.

IPDF Chief Executive Officer Aijaz Ahmad briefed the delegation on the Public Private Partnership framework and the policies for foreign investments in the country’s infrastructure development. He said that presently the IPDF has identified 44 projects worth around $1.4 billion and is focusing on identified projects in fields of airports, seaports, railways, bridges, roads, mass transit system, municipal services and hydropower projects.

Italy seeks JVs in infrastructure projects

 

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Pakistan, Canada discuss increase in assistance ​

Wednesday, April 23, 2008

ISLAMABAD: Canada and Pakistan have discussed increasing economic cooperation aimed at supporting sustainable development in order to reduce poverty and contribute to a more secure, equitable and prosperous Pakistan.

The discussions were held between Canadian High Commissioner David B Collins and Federal Finance, Revenue, Economic Affairs and Statistics Minister Ishaq Dar here on Tuesday.

The two sides discussed a steady increase in Canadian assistance for water supply, sanitation and reproductive health projects to be implemented through the Canadian International Development Agency (CIDA). Current Canadian assistance stands at around C$48 million a year.

The CIDA is also discussing with the Balochistan government extension in its assistance for improving the capacity of administration of certain districts of the province.

The two sides also discussed a bilateral 10-year strategy proposed by CIDA focusing on basic education, gender equality and accountability. It was noted that through annual bilateral consultations the two governments would discuss implementation of the Canadian assistance. The consultations are held alternatively in Pakistan and Canada.

Finance Minister Ishaq Dar appreciated the signing of a memorandum of understanding for Canadian debt swap involving C$449 million to be utilised by Pakistan in the education sector, particularly for teachers’ training at federal and provincial training institutes over the next five years. He appreciated Canadian assistance for energy resource development.

The two sides also noted Canadian grant of C$123 million for earthquake relief/reconstruction through the UN and the Red Cross.

Out of this amount, $83 million have been provided for emergency relief assistance and remaining $40 million have been partially utilised for the construction of primary schools in Azad Jammu and Kashmir. Ishaq Dar reiterated that the government would pursue a policy of transparency and was committed to bringing down fiscal deficit and inflation to manageable levels.

Pakistan, Canada discuss increase in assistance

 

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IT team to explore opportunities in Canada ​

Wednesday, April 23, 2008

ISLAMABAD: A delegation of twenty one leading Pakistani IT and software development companies reached Canada to explore opportunities for enhanced trade in the areas of software/hardware development, web applications, graphics, animation, multimedia and other business process management services.

According to the Press Counselor, Pakistan High Commission, Canada, the visit has been organised by the Pakistan Software Export Board (PSEB) in coordination with the Pakistan High Commission.

The visit will enable Pakistani IT companies to learn from the successful experiences of their Canadian counterparts and expand their presence globally. Canadian companies would also be invited to set up their development centers in Pakistan.

With an IT industry worth more than US$2.8 billion, including the annual IT exports exceeding $1.4 billion, Pakistan is eyeing to increase the size of its IT sector to over $11 billion by 2011. Presently, there are 1161 active IT companies in Pakistan, 110 of which are also ISO certified.

IT team to explore opportunities in Canada

 

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Oil import bill grows by 40.52pc in July-March​

KARACHI: Country’s oil import bill swelled to $7.416 billion during the first nine months (July-March) of the current fiscal year, reflecting 40.52 percent growth, figures released by Federal Bureau of Statistics shows. The oil import stood at over $5.227 billion during the same period of last year.

The import of manufactured petroleum products registered 48.52 percent growth to $3.989 billion during the period under review against $2.686 billion in the corresponding period of previous year.

Crude petroleum oil import soared to $3.426 billion during July-March period of the current fiscal year, up by 32.23 percent against $2.591 billion during the same period of last year.

During the month of March this fiscal year, oil imports grew phenomenally by over 100 percent to $1.076 billion compared to $535.841 million in the same month of last year

This growth is attributed to the increase in import of manufactured petroleum products, which grew by over 86 percent and an increase of 120 percent in crude oil import. However, oil imports declined by almost 20 percent during the month of February over preceding month of March when $1.344 billion worth of oil products were imported.

According to analysts, increase in the oil import bill has been caused by skyrocketing prices of petroleum products in international market, which at the moment are not showing any signs of declining and analysts forecast further increase in imports of oil products in the coming months.

International oil prices hit $118 per barrel mark on Tuesday and during the month of March prices remained above $100 per barrel in the international market. “If the prices stayed at the same level during the remaining part of this fiscal year, oil import bill will balloon further”, they added.

Apart from price factor, the quantity of oil imports has also been contributing in swelling import bill, as during the period under review, quantity of oil products showed substantial growth because of growing needs domestically, especially for electricity generations.

Last year, oil import bill crossed $7 billion and analysts predict that it would be settling over $10 billion, if the prices in the international market did not fall in near future.

Machinery is the second largest component in the import bill after petroleum as its import stood at $5.146 billion in July-March of this fiscal year, up by 5.86 percent from $4.861 billion last year.

This growth in the import bill of machinery was due to over 43 percent growth in the import of power generation machinery, 16.85 percent growth in construction and mining machinery, 12.97 percent growth in electrical machinery and apparatus and 4.10 percent in other machinery.

Import of office machinery dropped by 6.32 percent, textile machinery by 19.65 percent while import of telecom and agriculture machinery and implements remained flat.

The import bill of agriculture and other chemicals was up 35.14 percent to $4.213 billion in July-March of current fiscal year compared to $3.117 billion in the corresponding period of last year. In this group, over 190 percent growth was seen in fertilizers, over 12 percent in plastic material and over 27 percent in medical products.

The import of food items surged to $3.036 billion in the first nine months of current fiscal year as against $2.125 billion during the same period of last year, showing a growth of over 42 percent. This growth was mainly due to import of wheat, soyabean oil and palm oil.

The import bill of transport was down by 16 percent to $1.581 billion during the said period from $1.887 billion in the same period of previous year.

The total import bill reached $27.962 billion during the first nine months of current financial year, reflecting a growth of over 24 percent as compared to $22.41996 billion in the corresponding period of last year.

Daily Times - Leading News Resource of Pakistan

 

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CIDA to provide financial support to Pakistan​

ISLAMABAD: Canadian International Development Agency (CIDA) to provide financial assistance to Pakistan for bilateral ten-year strategy proposed by CIDA focusing on basic education, gender equality and democratic accountability.

The initiatives were discussed in a meeting between David B Collins, Canadian High Commissioner and Senator Ishaq Dar, Federal Minister for Finance, Revenue, Economic Affairs and Statistics on Tuesday.

Canada and Pakistan discussed increased economic cooperation with the objective to support sustainable development in order to reduce poverty and contribute to a more secure, equitable and prosperous Pakistan.

The current Canadian assistance is approximately CD$48 million a year. The two sides discussed steady increase in the Canadian assistance for water supply, sanitation, health and reproductive health projects to be implement through CIDA.

Daily Times - Leading News Resource of Pakistan

 

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Focus on poverty reduction: Pakistan and Canada to enhance economic cooperation ​

ISLMABAD (April 23 2008): Pakistan and Canada will increase economic cooperation with an objective to support sustainable development to reduce poverty and to contribute to a more secure, equitable and prosperous Pakistan.

The initiatives for increasing bilateral economic cooperation were discussed in a meeting between Canadian High Commissioner David B. Collins and Federal Minister for Finance, Revenue, Economic Affairs and Statistics Senator Ishaq Dar here on Tuesday. According to a press release, the current Canadian assistance is approximately 48 million Canadian dollars a year.

The two sides discussed steady increase in the Canadian assistance for water supply, sanitation, health and reproductive health projects to be implement through Canadian International Development Agency (CIDA). The two sides also discussed 10-year bilateral strategy, proposed by CIDA focusing on basic education, gender equality and democratic accountability.

It was noted that through annual bilateral consultation, the two governments would discuss implementation of the Canadian assistance. The consultations are held alternatively in Pakistan and Canada. Ishaq Dar appreciated signing of memorandum of understanding (MOU) on Canadian debt swap of 449 million Canadian dollars to be utilised by Pakistan in education sector, particularly for teachers' training at the Federal and provincial teachers' training institutes over the next five years.

Business Recorder [Pakistan's First Financial Daily]

 

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Government to remove hurdles in progress of trade and industry: Zardari ​

FAISALABAD (April 23 2008): Co-chairperson of Pakistan Peoples Party (PPP) Asif Ali Zardari, in a message to Chairman of Faisalabad Dry Port Trust (FDPT) Sheikh Ashfaq Ahmed, has said that the victory of the PPP in general elections owes to Shaheed Benazir Bhutto, who laid down her life for a better, prosperous and more democratic Pakistan.

He recalled that Benazir Bhutto, in her capacity of prime minister of Pakistan, inaugurated the Faisalabad Dry Port in April, 1994, which had now been emerged as the biggest dry port of the country. Set up in the private sector, the port handles over 33,000 export cargo containers and about 5,500 import consignments per annum, valuing Rs 80,000 million.

Asif Zardari further said that the PPP government, in collaboration with its coalition partners, would try its best to remove impediments in the progress of trade and industry in the country and augment the exports to earn direly needed foreign exchange.

He said that priorities of the government included improvement of the socio-economic condition of the country, provide job opportunities to jobless people and solve their problems envisioned by Shaheed Benazir Bhutto.

Federal Minister for Finance, Revenue and Economic Affairs Muhammad Ishaq Dar, in a separate message to the FDPT Chairman, said that our economy was facing pressures similar to that of post-nuclear detonation era of 1998.

"We are confident that the coalition government would steer the deteriorating economy of the country away from the looming dark economic clouds. He said that this daunting task could only be accomplished through team work and unreserved cooperation from the trade and industry.

Dar lauded the efforts of traders and entreprenuers of the country, who were trying hard to promote their business in critical economic conditions. He said that the government would try to solve multiple problems of the trade and industry and create ample job opportunities to the people.

Business Recorder [Pakistan's First Financial Daily]

 

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OGDCL discovers gas and oil in Hyderabad ​

KARACHI (April 23 2008): The Oil and Gas Development Company Limited (OGDCL) has discovered gas and condensate in its exploratory, Pankhro Well No 01, in district Hyderabad, Sindh. It is a joint venture between OGDCL with 95 percent share and the GHPL with 5 percent share with OGDCL as operator.

According to an information sent to the Karachi Stock Exchange here on Tuesday, the Pakhro Exploratory Well No 01 was delineated in NIM Exploratory Licence area and was drilled down to the dept of 3,692 meters, targeting to test the potentials of sand to Lower Goru Formation of Creataceous age.

Based on log data, 03 zones were selected for testing. Production testing of zone-3 (Basal Sands) of Lower Goru Sand member started on April 17, 2008, which proved to be productive. The short duration initial testing results of zone-3 are tabulated as Choke sizes 32/64 inches, WHFP (PSI) 1465, quantity of gas 8.248 mmscfd and quantity of condensate 9bpd.

Business Recorder [Pakistan's First Financial Daily]