Pakistan Economy - News & Updates - Archive

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MoUs on Thar coal projects termed fraudulent: Sindh cabinet annuls contract employments ​

KARACHI (April 30 2008): Sindh government has announced to annul all employments on contract and OPS against higher posts in the province from BPS 1 to 22, and hinted at lifting the ban, in a couple of months, on recruitment on around 44,000 vacant slots. This was decided in the Sindh cabinet meeting held here on Tuesday, which was presided over by Chief Minister Qaim Ali Shah.

The cabinet also termed the MoUs, signed in connection with Thar coal and coal-based power projects by the previous government, as fraudulent and suggested that the government should take stern action against all found involved in it.

Briefing the newsmen about the cabinet decision, Sindh Information Minister Shazia Marri, giving details of termination of contract employees, said that in exceptional cases where services of technical experts would be required, the Chief Minister would have the authority to allow such contract employees to continue.

She said that the services of employees working under OPS (Own Pay Scale) on higher posts have been terminated with immediate effect. However, she said that senior police postings and postings of DCOs may be exempted from the decision as these are strategic, and at times, due to non-availability of senior officers having the required skills for these positions, the officers having next grade and requisite skills would continue working at their posts.

She said this decision would pave the way to induct new, though less experienced persons into employment, and added that the officers/officials re-employed included those of Grade 22 to 1 and the decision is same for all. Regarding contract employees, she said that the cabinet had directed all departments to prepare their lists.

She said that the cabinet took notice of employees whose promotions remained withheld for want of meetings of Departmental Promotion Committees (DPC) for last many years, in various departments.

As per cabinet decision, she said, the DPCs would meet within one month and decide all such cases of promotions, after which, the ban on the recruitment for more than 44,000 vacant slots from BPS 1-22 may be lifted. She said that in the cabinet meeting, recommendations for amendments in certain laws were also made, which the cabinet approved.

One such law, she said, was Sindh Gothabad Housing Scheme and the definition of "rural areas" was incorporated in the 1987 Act. Similarly, she said, in the wake of a resolution passed by Sindh Assembly for renaming District Nawabshah as Benazir Bhutto District, an amendment in 1967 Act was also approved to provide the provision in the law for renaming of any district or Taluka as and when resolved by Sindh Assembly.

The minister said that the cabinet also reviewed food situation in the province and lauded the achievements of the Food Minister on this account. The cabinet, she said, was informed that over 200,000 tons wheat has been procured so far while the process was still continuing for which the department was being provided more vehicles.

As regards law and order, she said the matter was reviewed and it was decided to remove all tinted glasses and fancy number plates from vehicles without any discrimination between influential and the common man. To a query, Shazia said that the MQM-PPP dialogue did not come under discussion, as it was not on the agenda.

Terming the MoUs signed in connection with Thar coal and coal-based power projects by the previous government as fraudulent, Shazia said that the cabinet also decided to take suitable action as per law against all found involved in this fraud.

She said that millions of government money was wasted through fraudulent MoUs signed during the last five years, and added that a report was being prepared in this regard that would soon be presented to the Chief Minister for action. She said the cabinet was briefed about the Thar coal project as the project was initiated during the Government of Benazir in 1995-96.

"The project cost was one billion dollars at that time for generating 3000 MW electricity but could not be implemented as the government had been dismissed", she observed. Shazia said that the cabinet was informed of the steps taken for coal exploration during the previous government and many anomalies came to light and almost all MoUs signed between 2002-07 proved a fraud.

"Even, an MoU was signed with Sonery Energy (Pvt) Ltd for coal exploration and its utilisation for power generation in Thar that was just a paper-company and does not exist at all", she said. She said that the cabinet observed that Sindh is rich in coal reserves and expressed the desire that the province and its people should be its beneficiaries. However, in the wake of setting up of coal-based power plant, Wapda and federal government would be consulted for project's funding and expertise.

The minister pointed out that in Pakistan coal use is less than one percent as against 69 percent in India, 80 percent in Australia and 78 percent in China. She said that Pakistan has the potential to use its coal reserves for 100 years.

Business Recorder [Pakistan's First Financial Daily]

 

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Dar's criticism termed 'financial engineering' ​

ISLAMABAD (April 30 2008): The unadjusted budget figures for fiscal year 2007-08, as presented by Finance Minister Ishaq Dar during the first Cabinet meeting on April 9 constitute 'financial engineering', according to well placed sources. "One of the major flaws in the analysis of the unadjusted figures was failure of the Finance Minister to disclose the $800-900 million financing committed by the US for logistic support for Pakistan's war on terror.

This amount would be part of non-tax revenue," analysts argued. An economic analyst told Business Recorder here on Tuesday that if the new government prepared its case against the previous government on assumptions of outflows, it must, in all fairness, also mention expected inflows. "It is not fair if we inform the public about the slippages, and not the expected income," the analyst said.

The Finance Minister in the Cabinet meeting had given Rs 443 billion as the projected domestic interest payment, in contrast to the budgeted amount of Rs 318.2 billion. However, this discrepancy between the budgeted and the projected amount was, according to former Minister of State Umar Ayub Khan, the fault of policies of the governments between the years 1996 and 1999.

Umar in his budget speech last year had announced that during the current fiscal year and up till 2009-10 there would be a significant rise in deficit financing, because high interest-bearing Defence Savings Certificates would mature this year and would require Rs 80 billion in 2007-08 and Rs 163 billion next fiscal year.

The present Finance Minister had also projected wheat subsidy at Rs 45 billion as an amount not budgeted, as a wheat crisis was not anticipated at the time of the budget. However, according to sources, subsidy on wheat was unlikely to exceed Rs 20-25 billion. In addition, the projected subsidy of Rs 123 billion to Wapda was unlikely, given that till February this year only Rs 34.5 billion subsidy is given.

Business Recorder [Pakistan's First Financial Daily]

 

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Wapda officials asked to ensure early completion of hydropower projects ​

LAHORE (April 30 2008): Water and Power Development Authority (Wapda) Chairman Shakil Durrani has directed the project authorities to ensure completion of the hydropower projects as per schedule. He expressed these views while presiding over a meeting at Wapda House to review the progress on water and hydropower projects being executed by the Water Wing here on Tuesday.

Wapda member (Water) Muhammad Mushtaq Chaudhry; member (Power) Fazal Ahmed Khan; General Manager of the Water Wing, Project Directors and consultants also attended the meeting. He said that on time completion of the water and hydropower projects had become all the more important in view of the growing needs of water and electricity in the country.

He commended the pace of work on Mangla Dam Raising Project, Kurram Tangi Dam, Gomal Zam Dam and Greater Thal Canal during the first quarter of 2008, and said that the other projects should also follow suit.

Later, detailed deliberations were made on the projects. The meeting was told that the Mangla Dam Raising Project would be completed in September this year, whereas the filling of water in the raised dam could be started during the current season.

The meeting was briefed that Satpara Dam project was nearing completion and filling of water in the reservoir would commence from May 10. It was further told that the three high head hydropower projects, commonly known as Khwar projects with accumulative power generation capacity of 323 MW would start contributing to be National Grid one by one from the next year.

The meeting was apprised of the feasibility studies and engineering designs of various hydropower projects with total generation capacity of more than 25,000 MW. Most of these studies were at the advance stage of their completion, the meeting was told.

The comparative water availability in the reservoirs and hydel generation from the various powerhouses were also reviewed. He told officials to speed up the repair and rehabilitation work being carried out on hydel stations, particularly on Warsak and Jabban hydropower projects.

Business Recorder [Pakistan's First Financial Daily]

 

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Ahmadinejad says gas pipeline deal in 45 days​

NEW DELHI, April 29: Oil ministers of Iran, Pakistan and India would meet within the next 45 days to agree on a final draft for the Iran-Pakistan-India (IPI) pipeline that would be then signed by the political heads of the three countries, Iranian President Mahmoud Ahmadinejad said here on Tuesday.

“All pending issues and agreements would be finalised within 45 days and given to the leadership of the three countries. Afterwards we will decide,” Mr Ahmadinejad told a news conference after a meeting with Prime Minister Dr Manmohan Singh.

It was not clear whether the Indian prime minister, who had expressed lack of confidence in the financial support for the project, had changed his mind. The Indian response to the talks appeared to indicate lingering doubts.

For example, the Press Trust of India quoted Indian Foreign Secretary Shivshankar Menon as saying that the pipeline was a “doable” project though a “lot of work” needs to be done to ensure that it is commercially viable, secure and there were assured supplies. The Iranian comments seemed to be a little more positive.

When Mr Menon was asked to comment on western concerns over Iran, he said, according to PTI, that India saw Tehran as a factor of stability in the region.

On his part, far from exuding worry from the escalating US and Israeli military postures that could torpedo many calculations, including the IPI project, the Iranian president poked fun at the United States. “It is in its last phase. It is printing worthless currency, which is causing the oil prices to escalate. It’s time for them to pack up and leave the region alone.”

Flatly denying that Iran was planning to build nuclear weapons, Mr

Ahmadinejad said nuclear weapons were immoral and all countries possessing them should destroy their arsenal.

He also added mysteriously that it would be a strange development for the United States if it would allow a black person or a woman to be elected as president. On a new proposal to extend the IPI pipeline to include China, he said: “We have received one proposal. We will evaluate it and consider its merit and evaluate all aspects.”

Mr Ahmadinejad who was on a six-hour transit in Delhi on his way home from Colombo played down his country’s surprise at India’s decision to vote against it at the IAEA. “Ours is a deep and historic relationship. The two sides are too close to each other and hope in the future we will finalise the gas pipeline project.’’

Mr Menon said a meeting of the India-Iran Joint Commission would be held in the middle of the year when the two countries will discuss ways to strengthen their relationship.

Asked whether Mr Ahmadinejad requested Dr Singh to intervene in sorting out Iran’s strained ties with the West, the foreign secretary said ‘no’. The two leaders agreed to triple bilateral trade to 30 billion US dollars but set no date.

Apparently responding to concerns in Washington about the visit, Mr Menon was quoted as saying: “I do not think what we are doing with Iran should worry anybody. The more the engagement, the better it is for us all.’’

Ahmadinejad says gas pipeline deal in 45 days -DAWN - Top Stories; April 30, 2008

 

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ADB accepts govt’s request for $650 million support​

ISLAMABAD, April 29: The Asian Development Bank (ADB) has accepted the coalition government’s request for $650 million emergency budgetary support.

“We have decided to disburse $650 million on a fast-track basis to help improve the government’s budgetary position and contain fiscal deficit,” ADB’s Country Director Peter L. Fedon told Dawn here on Tuesday.

He said the remaining $1 billion funding, out of the $1.9 billion annual assistance lined up for the calendar year 2008, was being accelerated and maximum funding would be made available before June 30 this year so that the government could manage its financial affairs.

Earlier, Saudi Arabia had pledged $300 million oil facility and China promised to help the new government with $500 million balance of payment support.

According to Finance Minister Ishaq Dar, there was a Rs522 billion ‘over-run expenditure’, which if not arranged by June 30, fiscal deficit would go as high as nine per cent against the target of four per cent set for the current financial year.

He said Rs522 billion was desperately needed to contain the deficit at six per cent of the GDP.

When asked about the over-run expenditure, the ADB country director said the new government understood this issue better. But as far as the ADB was concerned, he said, it would play its role and help the new government by providing timely financial support.

Responding to a question, he said the ADB had proposed a tax on agriculture income and on services sector for new resource mobilisation.

“More taxes or any other measure needed for this purpose will have to be decided by your government and we cannot say anything about it,” Mr Fedon said.

He agreed that the increasing international oil prices would cause more problems for countries like Pakistan. International prices, he said, were intensifying food inflation throughout the world and everybody appeared to be helpless.

Asked about the growing energy problems, he said that his bank had provided $2 billion to Pakistan’s distribution and transmission companies to cope with power pressure. He called for establishing more power plants by the private sector to meet 3000MW of daily electricity shortage. He was of the view that the tariff issue needed to be settled to attract more IPPs in the country.

Answering another question, he said the ADB would provide necessary support to Turkmenistan, Afghanistan, Pakistan and India to help build TAPI gas pipeline.

“We are trying to be an honest broker to push forward the regional cooperation in the shape of the gas pipeline project,” he said.

However, he said, the bank was not responsible for establishing any consortium to arrange funding for the project and that it had to be decided by the countries involved in it.

ADB accepts govt’s request for $650 million support -DAWN - Top Stories; April 30, 2008

 

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Pakistan among top for doing business: WB

Thursday, May 01, 2008
KARACHI: Pakistan has been ranked as one of the top favourable economies in the world, states “Doing Business 2008”, a recent report released by the World Bank.

According to the report, Pakistan ranks second compared to other South Asian countries, based on certain economic indicators such as ease of doing business, dealing with licences and protecting investors as identified by the analysts.

The following countries are Sri Lanka, Bangladesh and Nepal. Pakistan has a comparatively better business environment in terms of paying taxes and registration of assets, the report adds.

The report evaluates business activities based on regulations affecting the 10 stages of a business life, which are starting a business, dealing with licences, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.

It is pertinent to note that in the overall global rating of 178 countries, Pakistan is rated 76th, as compared to India at 120. With Pakistan’s fast-paced IT industry, it is emerging as a powerhouse in the South Asian region due to the government’s friendly policies.

These include 100 per cent foreign equity ownership, 100 per cent repatriation of profits for foreign investors and tax exemption for the sector till 2013.

The availability of a large pool of English-proficient skilled professionals, affordable connectivity rates, competitive infrastructure and operational costs are some of the other benefits that Pakistan enjoys. Due to the same, an increasing number of foreign IT companies prefer Pakistan for their outsourcing operations and setting up development centres.

“Doing Business 2008” is the fifth in a series of annual reports that evaluates the regulations which directly impact economic growth, provides objective measures of business regulations and their enforcement. The data is collected across 178 countries and selected cities at the sub-national and regional level.

 

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Economies of scale, efficiency key to boosting exports ​

Thursday, May 01, 2008

LAHORE: Government policy-makers are struggling to bring about a change in the exporters’ mindset, who demand concessions instead of favourable policies to compete in the international market and put the country on a sustainable growth path.

Commerce Minister Shahid Khaqan Abbasi is in constant touch with all export and trade associations of the country. Last week, he spent five hours in a meeting with all major exporters in Islamabad, but the input he got was disappointing which gave an impression that the cost of doing business in Pakistan had gone quite high and exports without government subsidies would not be possible.

Surprisingly, they claim the factors that have added to their cost include increase in petroleum prices, hike in gas and electricity rates, high interest rates and rise in wages. But economic experts say except for one or two factors all others are a global phenomenon which has impacted the cost of doing business in all countries that compete with Pakistan’s exports. In fact, the energy rates in Pakistan are lower than many of its competitors.

They say the negative factors affecting exports have been offset by some positive areas where Pakistan has an advantage. Minimum wages in Pakistan are still lower than those in Indian and Chinese textile industries. Petrol and electricity rates in these countries are higher or the same as in Pakistan. Gas tariff in Pakistan is lower than these two countries. However, interest rates are somewhat lower in India and China because their inflation is 3 to 4 per cent less than Pakistan.

Local export industries, particularly textile exporters, have over the years lost markets not only to India and China but to newcomers like Bangladesh and Vietnam. What contributed to the decline in textile exports, the experts say, were lack of innovation, inability to improve skills, poor marketing and non-professional management. Had the depression in exports been due to government policies, they point out, it would have been reflected in the performance of all companies in that particular sector.

However, in the textile sector there are some high-performing exporters operating in the yarn, fabric and clothing sub-sectors. It seems, they say, planners and entrepreneurs tend to ignore the fact that they are operating in a liberalised global market and economies of scale and efficiency are essential to compete in these conditions. Time is now ripe for mergers and acquisitions in all industrial sectors of the country to stay competitive both in export and domestic markets.

Even minnows like Bangladesh and Vietnam are edging out Pakistani exporters because they have much larger textile manufacturing companies than Pakistan.

The experts say the new trade policy should be framed in a manner that rewards efficient industries and those that pool their individual small resources together to form a larger concern. Otherwise, they warn that exports would continue to suffer and imports would grow even faster if the economies of scale and efficiency are not achieved by the local industry.

Export industries provide bulk of the industrial employment in the country and any pressure on exports has an adverse impact on employment. Sustainable export growth is only possible through mergers and acquisition of small and fragmented manufacturing concerns of the country.

Economies of scale, efficiency key to boosting exports

 

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CDWP approves 33 projects worth Rs163.8bn ​

Thursday, May 01, 2008

ISLAMABAD: The Central Development Working Party (CDWP) on Wednesday approved 33 projects costing Rs163.8 billion, including foreign component of Rs20.8 billion.

The CDWP held its 7th meeting of the current financial year here under the chairmanship of Deputy Chairman, Planning Commission, M Akram Sheikh.

Of the 33 projects, fifteen projects of Rs138.8 billion are related to infrastructure building, 12 projects costing Rs22.6 billion are in the social sector, while six projects costing Rs2.4 billion belong to other sectors.

He said of the total projects approved today, cost of the each 12 projects was over 500 million, while the total cost of those projects was Rs157.5 billion, which would be placed before Executive Committee of National Economic Council (ECNEC) for approval.

He said 31 projects, costing Rs163.3 billion would be financed by the federal government, while of the four projects located in Punjab, two projects would be financed by the provincial government of Punjab. Briefing the newsmen, Spokesman Planning Commission Asif Sheikh said that in earlier six meetings, the CDWP had approved 218 projects costing Rs565.85 billion. He said of the 33 projects, 7 projects had been revised and their net addition in total cost was Rs53.5 billion. “Of the revised projects two projects, costing Rs101.6 billion are in AJK. These are: Mangla Dam Raising Project (Revised PC-1) and Mangla Watershed Management Project,” he added.

He said it was interesting to note that the construction cost of these projects had decreased but re-settlement amount which was earlier Rs26 billion had now jumped to over Rs60 billion. He said Mangla Dam Raising Project was delayed six months due to the bad weather, however he expressed the hope that by the end of current year rainwater would begin to store in the dam according to the programme.

He said the CDWP approved 18 projects in all Pakistan costing Rs30 billion. It approved four projects in Punjab province costing Rs1.2 billion. He said the CDWP approved one project for Sindh, namely Revamping of Irrigation System, which he said would cost Rs16.0 billion.

Sheikh said two projects in energy sector, costing Rs2.8 billion had been approved for Northern Areas (NAs) to generate power from self-resources. He said the CDWP also gave conceptional clearance to five projects in different sectors adding that according to it executive agencies would be able to acquire foreign loans.

Sheikh said the total additional cost of the projects approved on Wednesday was Rs67.3 billion. The fifteen projects approved in infrastructure include two projects in energy sector, six in physical planning and housing and seven in water resources.

Twelve projects approved in social sector include one each in environment and forestry and wildlife, while two each in governance, health, HEC and manpower. Among other projects, three projects were approved in agriculture and food, while three in industries and commerce.

He said Dadu and Faisalabad thermal power projects did not get approval because Public Sector Development Programme (PSDP) did not deal with the projects related to thermal power. “WAPDA has been asked to get equity from the private sector for these projects,” he said.

CDWP approves 33 projects worth Rs163.8bn

 

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New satellite among 33 projects approved​

By Ihtasham ul Haque

ISLAMABAD, April 30: The Central Development Working Party (CDWP) of the Planning Commission on Tuesday approved 33 projects to be executed at a cost of Rs164 billion, including indigenous development of a communications satellite.

Planning Commission spokesman Dr Asif Sheikh told journalists that 15 infrastructure projects of about Rs139 billion, 12 of social sector of Rs22.6 billion and six projects of Rs2.4 billion relating to other sectors had been approved. The meeting was presided over by Planning Commission Deputy Chairman Dr Mohammad Akram Sheikh.

The spokesman said the Space and Upper Atmosphere Research Commission (Suparco) would develop the Pakistan Communications Satellite System at a cost of Rs18.8 billion to replace the country’s existing satellite whose life would expire in two years.

He said the Mangla dam raising project had been completed and the reservoir had an additional capacity of 2.9 million acre feet of water.

The project had been completed on time at Rs5 billion less than the estimated expenditure but the resettlement expenditure had increased from Rs26 billion to Rs60 billion, raising the overall cost to Rs101 billion, he said.

The CDWP approved construction of 100 delay-action dams in Balochistan at a cost of over Rs2 billion, revamping and rehabilitation of irrigation and drainage system in Sindh at Rs16 billion and a scheme for disposal of effluent from Balochistan in the Right Bank Outfall Drain at a cost of Rs6.5 billion.

It cleared construction of water storage dams in Shadi Kaur, Pasni and Gwadar at a cost of Rs2.6 billion.

The meeting approved a project for acquisition of land for a pilot project of 1,000 apartments for low-paid federal government employees at a cost of Rs258 million.

It approved two hydroelectric power projects of 16 and 14 megawatts in Nalter in Gilgit district at a cost of Rs2.9 billion.

A project worth Rs494 million was approved for strengthening the National Tuberculosis Control Programme by ensuring uninterrupted supply of drugs. The Roll Back Malaria Programme of Rs659 million was also approved. The CDWP approved a project for replacement of equipment of the Pakistan Security Printing Corporation and asked it to market its services and get orders for printing currency notes from other countries.

Answering a question, the spokesman said an Integrated Border Management System worth Rs496 million had been approved for computerised checking of travel documents at 24 exit and entry points in the country.

New satellite among 33 projects approved -DAWN - Top Stories; May 01, 2008

 

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UAE to set up refinery, bank​

ISLAMABAD, April 30: The United Arab Emirates will set up an oil refinery in Pakistan and would further invest by participating in privatisation of public sector entities.

This was stated by Ambassador of UAE in Pakistan Ali Mohammed Al Shamsi during a meeting with Federal Minister for Privatisation, Investment, Ports, Shipping, Industries and Production Syed Naveed Qamar on Tuesday.

The UAE envoy assured full support to further promote the private sector and his government’s investment in the fields of energy, petrochemical and real estate sectors.

In order to encourage farmers, the UAE was planning to establish an agriculture bank to improve quality of rice, wheat, vegetables and other farm products through financing, he added.

Naveed Qamar said that Pakistan provided tremendous investment opportunities to the investors in every sector of economy with liberal investment policies and unmatchable incentives in the region with a level-playing field.

He informed the envoy that the government was planning to sell a specific number of shares of Habib Bank Limited to the institutions through block sale, while expressions of interest have been invited for the sale of SME Bank.

“We are in the process of setting priorities for our privatisation programme, which would be announced soon,” he said.

UAE to set up refinery, bank -DAWN - Business; May 01, 2008

 

[Neo]

5.6 million mobile subscribers added in 2008​

KARACHI: In the first three months of 2008 more than 5.6 million mobile subscribers were added, registering an increase of 6.82 percent. Figures released by Pakistan Telecommunication Authority (PTA) show.

Total number of subscribers now stands at 82 million with a mobile density of 52.16. In December 2007, the mobile phone subscribers stood at 76.88 million.

Ufone retained its second position with 17.19 million subscribers followed by Telenor with 16.70 million subscribers. Mobilink is still leading the market with 31.75 million subscribers, while Warid stands on fourth position with 14.39 million subscribers.

China Mobile lost growth in terms of subscribers, but according to industry analysts, after the launch of Zong the next month figures are expected to be positive.

In Pakistan’s competitive and heated mobile market, operator’s survival lies in getting into new areas, exploring new Value Added products, and providing better quality of services.

China Mobile has already invested $500 million in the country and has plans to invest more. China Mobile has made the largest investment among all the Chinese investment in Pakistan. PTA has recently awarded the license for providing cellular service in Azad Jammu Kashmir and Northern Areas to China Mobile.

A steady growth witnessed addition of more than two million mobile subscribers every month throughout the last year, according to the PTA data. In the previous year the sector grew by 80 percent whereas average growth rate in last 4 years has been more than 100 percent. Network coverage of almost 90 percent of the total population of Pakistan has made mobile industry even more attractive for foreign investment.

Daily Times - Leading News Resource of Pakistan

 

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Pharmaceutical export registers 30% growth​

KARACHI: Pakistan’s pharmaceutical products exports has registered more than 30 percent surge during previous year mainly due to aggressive marketing by the pharmaceutical companies and improving quality of their produced material in line with the international standard.

The export of medicines to some 52 countries across the globe stands at $125 million compared to $90 million to $95 million during corresponding period of the previous year.

However, compared to other countries, Pakistan is lagging far behind in volumes of the exported medicines owing to number of impediments hampering fast track progress of the pharmaceutical industry during several decades.

Former chairman, Pakistan Pharmaceutical Manufacturer Association (PPMA), Dr Qaiser Waheed, claimed that it was only during the last few years that local pharmaceutical industry has been able to display its true potential and “made its presence felt in the international markets.”

Earlier, export of the pharmaceutical products was disorganised , consequently country’s export volume remained stagnant.

Currently, bulk of medicines is exported to African countries, Central Asian States, Philippines, Vietnam, Myanmar and Sri Lanka.

Citing major problems faced by the pharma industry Waheed said, “ironically the

potential of this sector was never recognised by the officials in Federal Health Ministry due to their lack of knowledge about the needs of this enormous field, which can fetch annually several millions of dollars for the national exchequer.”

Unlike all other industries in the country, which fall under the administrative control of the Ministry of Industries, the pharma industry is managed by Federal Health Ministry, which has squarely failed to promote growth and interest of this sector.

In response to another question, he claimed that an overwhelming majority of the officials at health ministry have pharmacy degrees due to which their mindset is limited only to oversee and regulate quantity of locally produced medicines, while they are incapable promoting export.

Suggesting measures for progress of pharma sector on sound footing, he said the government in consultation with the stakeholders should evolve a comprehensive policy for promotion of the sector for at least five years period.

The newly evolved policy after securing the legal cover would remain unaffected even with the change of the government in centre or provinces, which would spell salutary impact for the industry.

Qaiser urged the new government to remove all taxes on packaging material and raw materials needed for manufacturing of medicines as currently, heavy taxation is adding to the manufacturing cost of medicines and its packing process.

Daily Times - Leading News Resource of Pakistan

 

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Pierlite of Australia to invest $20m in Pakistan​

KARACHI: Pierlite, the largest Australian lighting company based in Sydney, is all set to invest $20 million in Pakistan by launching a joint venture company under the name of Pierlite Pakistan.

In this connection, a formal launching ceremony was held with Australian High Commissioner Ms Zorica McCarthy as chief guest on the occasion.

According to a statement released on Wednesday, the investment in Pakistan is one of many global investments by the group to reach their Global sales target of $1 billion. “This new joint venture will bring foreign investment in Pakistan by an Australian group giving new products, design technology and of course employment opportunities to the people of Pakistan by setting up local production facility”, said Zorica McCarthy.

She said, “I am glad to know that Pierlite Group wishes to set up a “State of the Art” factory to produce top quality lighting products for domestic market and to export to neighboring Middle Eastern countries”. She said, “Current development in Pakistan and construction boom in neighboring Middle Eastern countries will surely provide an opportunity to Pierlite to grow business in this part of the world”.

Speaking on the occasion, Director Pierlite Pakistan, Pervez H. Madraswala said, “Appreciation of Pierlite’s products in Pakistan paved way for a new joint venture company Pierlite Pakistan (Pvt) Ltd in collaboration with Pierlite Australia to cater to the lighting need of the country and neighboring markets”.

Madraswala said, “Pierlite Pakistan is currently expanding its sales and distribution facilities throughout the country. We are planning to invest around $20 million in Pakistan to set up local production facilities as well”.

He said, “Pierlite is the global brand of Gerard Lighting group of Australia, which also owns an array of lighting brands including Sylvania, Crompton, Moonlighting and Austube amongst others”.

Daily Times - Leading News Resource of Pakistan

 

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UAE keen to invest in Pakistan​

ISLAMABAD: UAE is all set to establish oil refinery in Pakistan and to further accelerate economic interaction by targeting upcoming investment and privatisation opportunities, Ali Mohammed Al Shamsi, Ambassador of UAE to Pakistan, said in a meeting with Syed Naveed Qamar Federal Minister for Privatisation, Investment, Ports, Shipping, Industries and Production here Wednesday.

The UAE Envoy assured full support of UAE government to further promote the private sector and UAE government’s investment in Pakistan in the fields of energy, petrochemical and real estate sectors. “In order to encourage the farmers, UAE is planning to establish an agriculture bank to improve quality control of rice, wheat, vegetables and other agri-products through financing,” he added.

Syed Naveed Qamar said that Pakistan provided tremendous investment opportunities to all investors in every sector of economy with liberal investment policy and unmatchable incentives in the region with a level playing field.

He informed the envoy that the government was planning to sell a specific quantity of shares of Habib Bank Limited to the institutions through block sale while expressions of interest have been invited for privatisation of SME Bank. “We are in the process of prioritising our privatisation Program, which would be announced soon,” he stated.

Daily Times - Leading News Resource of Pakistan

 

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Trade between China, Pakistan increasing: Ijaz​

ISLAMABAD: Pakistan and China have very strong friendship, trade and economic relations, which shall be further strengthened, said president of Islamabad Chamber of Commerce and Industry (ICCI) on Wednesday.

Muhammad Ijaz Abbasi during a meeting with a Chinese delegation at the chamber said the trade volume between the two countries was increasing which has crossed more than $6 billion after signing FTA and it was heavily in favour of China.

He emphasised Pakistan should also make efforts to increase its exports to China, which were around $1 billion, whereas China offers tremendous opportunities of exports.

Daily Times - Leading News Resource of Pakistan