Pakistan Economy - News & Updates - Archive

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Thursday June 01, 2006

KARACHI: National Reconstruction Bureau (NRB) is collecting land data across the country so that the poor and people of rural areas could be facilitated in getting loans from Banks through their assets.
This was stated by Chairman NRB, Danial Aziz, while briefing the newsmen after a meeting with the representatives of private banks regarding the computerization of lands record and Electronic Passbook Programme.

NRB Chairman said hopefully the transaction process of the programme would be initiated from Islamabad before next yea’s fiscal budget.

He said that the poor people had greater role in economic development.

He observed that earlier the poor had neither any role in economic development nor they were provided any facility by accepting their common assets and a certain section of society was developing.

"Now by computerizing lands record and through Electronic Passbook Programme the poor people and unprivileged section of the society are also being included in economic development," he noted.

About the programme, he said that under the programme an ordinary man could get loan from banks through it national identity card accordance with it assets.

He further said that the amount received through the constituted system at gross root level would be used in disbursement of salaries from Patwari to EDO Revenue.

Danial Aziz said that the computerized record and Electronic Passbook System would be helpful in rooting out the menace of corruption and nepotism.

He informed that property record all over the country was being computerized, adding later the records would be transformed into an authentic record by merging them.

 

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Thursday June 01, 2006

BUREWALA : State Minister for Information Technology and Telecommunication, Muhammad Ishaq Khan Khakwani said that Pakistan had made a lot of progress in the field of information technology within a short span of period.

He was addressing an inaugural ceremony of newly established digital telephone exchange at Zaman Kot Mauza Sulera near here on Wednesday. With the establishment of 300-line telephone exchange, the area people would benefit a great deal, he added. The minister said that development work worth millions of rupees had been completed in his constituency on priority basis.


He said that President Pervez Musharraf had decided to enhance development budget from Rs215 billion to Rs415 billion in the next financial year, which would help in raising the living standard of the people of backward areas. He urged nazims to prepare development schemes for their respective areas so that funds could be allocated for this purpose.


Director Telegraph, Multan Region, Atta Muhammad, Divisional Engineer Development Abdul Majid, Divisional Engineer Vehari Nawaz Ahmed Joya and local representatives were also present on the occasion.

 

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Thursday June 01, 2006

ISLAMABAD: Prime Minister Shaukat Aziz has said the next budget will leave positive impact rather than negative on the people adding subsidy will not be withdrawn, however, the rich will reap no benefit from subsidy.
"The budget for the fiscal year 2006-7 will leave no negative impact on the common man. He will reap benefit upon benefit", Shaukat Aziz said this while talking to the senior journalists and editors of the newspapers here Wednesday in Prime Minister house.

Prime Minister informed National Economic Council (NEC) has approved development program amounting to Rs 415 billion. There is continuity in our policies and we are moving forward in line with a strategy.

" We have taken no U-turn from our vision. We are going side by side with globalization so that we could capitalize on the challenges", he remarked.

He announced GDP growth rate would hover between 6 to 8 percent. We will take advantage of our strategic importance", he added.

Talks are underway with Iran and Turkmenistan to lay gas pipeline. Negotiations are in progress with China as well in this respect. We will import more electricity from Iran and we will also purchase electricity from Central Asian Republics. We will build dams to ensure energy, water and food security. We will make allocations in next budget for this purpose.

He went on to say government is focusing on development of agriculture sector so that poverty could be eliminated from rural areas.

He disclosed that for the first time the foreign investment has touched the mark of $3.3 billion. It will further grow. Pakistan is open for business. We are active in ECO, SAARC, AASIAN and other international economic institution so that we could seek access to market and our exports get boost.

He held that the effects of development are visible but the challenges are still there. We are enhancing resources for the development of social sector. We will ensure stability in the prices.

He told that the inflation rate would stay 6.6 percent in next fiscal year. Investment activities have increased by 31 percent in private sector. The import of machinery has registered increase.

He reiterated that incentives would be announced in the next budget to overcome inflation and rationalize prices.

Citing to foreign debts he pointed out these have now reached 54.7 percent of GDP. The loans pose serious threat to the sovereignty of the country. We have got rid of IMF. WE will not allow national security and sovereignty to be hurt by any one. Therefore we have enacted Fiscal responsibility and debt limitations law. Loans have annihilated us.

He hinted that huge amount has been earmarked in the next year budget for water projects. The existing oil prices in the country are still less than neighboring country. Cement price was enhanced unjustly. Government has taken notice of it, therefore, the prices have come down. Legal and economic steps will be initiated to keep the prices under check, he declared.

Price regime will be put in place for essential commodities, he said adding sugar has been imported in substantial quantity and we are ensuring its smooth supply.

Subsidy system will not go. We want its benefit reaches common man rather than upper class, he underlined. We will give subsidy in the next budget, he told,. We are giving subsidy on electricity at present.

He held we have attained wheat out put equal to 217 million tonns. We are bringing back to the country Pakistani agriculture scientists from abroad. The largest research institution of Asia is being set up here.

He pointed out that Monopoly control authority will be restructured and run under Khalid Mirza.

To a question he said that level of direct tax recovery has increased. Because we have done away with policeman culture.

He reiterated government wants peace in Balochistan Due to integration of pe0pel in the process, development graph is ascending. The prevailing problem will be resolved through reconciliation. However law and order situation will be ensured at every cost.

He told no other tax except sales tax is imposed on diesel . We will curtail its prices if these go down in international market, he announced.

Responding to a question Prime Minister said he had got briefing from the administration of KESC on power crisis in Karachi. Development works in large number are in process in Karachi. Load shedding is caused due to certain technical problems as well, Modern system is being introduced in KESC and it will help improve the situation.

Information minister Muhammad Ali Durrani, state minister for information Tariq Azeem, secretary Shahid Rafi and PIO Ishfaq Gondal were also present on the occasion.

 

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Thursday, June 01, 2006

KARACHI: Four cellular mobile phone operators working in Pakistan have shown willingness to obtain permanent licences for Azad Jammu & Kashmir (AJ&K) and Northern Areas (NAs) in response to the Pakistan Telecommunication Authority (PTA) invitation to offer licences.

According to a statement of the PTA on Wednesday, meeting the requirements, four mobile operators, M/s Mobilink, M/s Warid Telecom, M/s Telenor Pakistan and M/s Ufone, have deposited Rs 1.2 billion in aggregate as initial licence fee.

The PTA has fixed $10 million for grant of a cellular mobile licence for AJ&K and NAs of which 50 percent is to be deposited as initial license fee at the time of submitting applications.

Each operator has deposited an amount equivalent to $5 million. The licence-awarding ceremony is scheduled in the second week of June in Muzzafarabad. After completion of award of mobile phone licences, deregulation of the fixed line sector will be carried out. In the wake of October 8 earthquake, the PTA had allowed all its licensees to start their services on temporary basis so that people of the region could be benefited from this decision.

http://www.dailytimes.com.pk/defaul...1-6-2006_pg5_10

 

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Sunday May 28, 2006

ISLAMABAD: Prime Minister Shaukat Aziz has said that government will set up Software Technology Parks at key locations in Islamabad, Lahore and Karachi to facilitate and expedite the development of software industry and IT enabled services in Pakistan.The Prime Minister was chairing a meeting at the Prime Minister’s House Saturday morning to review the IT industry growth and the short, long and medium term office space requirement for IT industry.
Ministry of Information Technology in their presentation said that IT industry growth and human resource expansion has created lot of demand for more office space. The Ministry submitted a strategy to address the demand for IT enabled office space to IT companies. The strategy was based on surveys conducted by the Ministry.

The Prime Minister gave approval for setting up of two IT parks at Islamabad, one each at sector I-9 and National Park Area, Islamabad and asked the Ministry to expedite plans for the construction of parks at these two locations. The Prime Minister was informed that the construction of the I-9 Park will begin in August this year.

The Prime Minister reviewed various land options in Lahore and Karachi and the proposal to set up Software Technology Parks at Lahore and Karachi Airports and asked the Ministry to review various available options and submit a comprehensive plan in 30 days.

The Prime Minister appreciated growth in Telecom sector saying that telecom sector is one of the fastest growing sector.He said the growth has been made possible as a result of the government’s policies of deregulation, privatization and opening up of the sector. He asked the Ministry to take steps to expedite export of software and IT enabled services.

IT Ministry presented profile Pakistan’s IT industry, current human resources & growth, availability of skills and growth of IT companies.

The meeting was attended among others by Awais Ahmed Khan Leghari, Minister for Information Technology, Mr. Ishaq Khan Khakwani, MOS for IT and senior officials.

 

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IMF report on Pakistan GDP pc
Country Subject Description Units Scale 2003 2004 2005 2006 2007
Pakistan Gross domestic product per capita, current prices US dollars Units

2003-605.776
2004-684.497
2005-769.421
2006-853.600

2007-920.321

http://www.imf.org/external/pubs/ft...CMP=0&x=67&y=13

 

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LAHORE (updated on: June 02, 2006, 18:22 PST): Advisor to Prime Minister on Finance and Economic Affairs, Dr. Salman Shah has said currently Pakistan's foreign debt is to the tune of approximately US $35 billion, which is coming down gradually over the years.

"The government has got enacted new laws on getting the foreign loans, which will be taken in future for development schemes only."

Dr. Salman Shah stated this while speaking at the pre-budget seminar held under the auspices of Press Information Department (PID), Ministry of Information and Broadcasting in a local hotel on Friday.

State Minister for Information and Broadcasting, Senator Tariq Azeem, PIO Ashfaq Gondal and PID Director Aijaz Ahmed were also present.

The Advisor said that the government would ensure utmost the fiscal responsibility, adding that it has already retired expensive foreign debts and would soon get rid of the debt of donors like World Bank, Asian Development Bank etc.

It may be mentioned here that the World Bank in its latest report had termed the inflation as alarming and stated Pakistan's current foreign loan to the tune of US $ 35.7 billion. The WB had also warned against the backlash of tight monetary policy in the shape of stemming inflation.

Dr. Shah said the foreign investors confidence has been restored over the last few years due to the investment-friendly policies of the government and the direct foreign investment has touched new record with pouring more than US$ 3 billion. He said that the government's floated Euro Bonds in the international market got overwhelming response as 30 years long period bond worth $ 300 million were sold at once.

Besides, the credit rating of the country has also been improved. The Moody's has enhanced credit rating from B to D-2 and D-3 while the standards and Poors was yet to ascertain, he added.

Although Dr. Shah has predicted some relief to different segments of the society in the upcoming budget, yet he said that if oil prices remained surged in the international market the impact would be very little.

 

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RAWALPINDI (June 02 2006): President General Pervez Musharraf on Thursday said the government was committed to facilitating all investors and would ensure provision of every possible assistance and incentives to them.

He was talking to General Electric International (USA) Chief Executive Officer Ferdinando Beccalli-Falco, who called on him here. The President welcomed the US entrepreneur and appreciated his move for investment in Pakistan.

Ferdinando lauded the far-reaching economic reforms introduced by the Pakistan Government, which have not only helped stabilise economy but also served as a tremendous incentive to attract valuable foreign investment.

He said there was an excellent investment-friendly environment in Pakistan and thanked the Pakistan Government for facilitating his group.

He informed the President that the General Electric, which is one of the largest companies in the world by market capitalisation, is carrying out market study for investment opportunities in various sectors in Pakistan, including infrastructure development in energy, oil & gas, railway, and health care.

He thanked the President for the opportunity to call on him. Minister of State for Privatisation Umar Ahmed Ghuman and senior government functionaries were present during the call.

 

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WASHINGTON (June 02 2006): The World Bank on Thursday approved a $6.5 billion lending strategy for Pakistan through 2009, including increased spending for infrastructure. "We will substantially ramp up support to Pakistan and focus on the areas that are most critical for the country's poor and most vulnerable," John Wall, the bank's country director for Pakistan, said in a statement.

 

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KARACHI (June 02 2006): Shortage of efficient cargo vessels fleet is telling upon national exchequer as the country has paid an amount of $2 billion as freight bill to foreign shipping lines. The annual national carriage reached the mark of 47 million tonnes amid growth in exports and imports.

With more than 95 percent of the country's trade through sea, the availability of suitable number of ships in national flag carrier is inevitable as the existing fleet is unable to cater for the growing demands of national trade.

Sources told Business Recorder on Thursday, in last three decades, Pakistan's merchant fleet strength declined from 74 ships in 1974 which was lifting about 27 percent of the national carriage to only 15 vessels in 2005 with a capacity to handle about 22 percent which includes both dry and liquid cargo.

With the on-going rapid economic development, country's annual volume of trade is likely to increase from 47 million tonnes in 2005 to 70 million tonnes by 2010 that would further increase the freight charges by foreign carriers burdening further the national exchequer.

The national flag carrier owned an ageing fleet that requires frequent repairs and maintenance that entails huge expenditure. The requirement to meet strict International Maritime Organisation (IMO) standards in future would be another blow to country's old fleet of merchant vessels.

Due to fleet shortage of the national flag carrier translates, in economic terms to around $2 billion that has to be spent as freight charges in foreign exchange to ensure smooth flow of trade through foreign shipping companies.

There is a dire need to revitalise the shipping sector and to formulate a dynamic development programme in the country.

During the last four years, the annual national carriage hovers around 37 to 39 million tonnes with a freight bill of about $1.5 billion but during 2005, the growth registered a phenomenal increase in the imports and exports.

Pakistan needs to increase its merchant fleet to enhance its present share of cargo handling to 40 percent and capitalising on the transit trade requirements of Afghanistan and the Central Asian States.

Sources further said, besides attracting investment in ship owning sector, the planners have to encourage ship building industry, which at present is lacking altogether.

The ability to build and repair ships greatly affects its sea trade and in return strengthens country's economy.

There is a great potential market of shipbuilding and repair due to Pakistan's regional location. It is located where the world's most important sea lines of communication operating.

Half of the international trade passes through our territorial waters and the neighbouring Indian Ocean which reveals that about 360 ships per day out of which 50 percent are oil tankers use this route.

 

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ISLAMABAD (June 02 2006): The Central Board of Revenue (CBR) has informed a high-level meeting held here that total revenue collection in the current fiscal year will be Rs 706 billion against the target of Rs 690 billion.

The CBR authorities presented this estimated revenue collection figure during the meeting, jointly chaired by President General Pervez Musharraf and Prime Minister Shaukat Aziz, early this week to give the government's economic team engaged in preparing federal budget 2006-07 a clear picture of earnings through taxes during the current fiscal year and to set a reasonable target for the next year.

Sources said the CBR calculated the net figure of revenue collection for 2005-06, on the basis of deemed collection in June. The bureau collected Rs 600.63 billion in the first 11 months of the current fiscal year that showed considerable increase in all areas of tax collection. Historically, the revenue collection in June surpasses other months and tax authorities are confident that the same trend will continue.

CBR officials told the meeting that it was expecting around Rs 106 billion revenue by June 30, against the target of Rs 89. 37 billion, which will help in surpassing an ambitious target of Rs 690 billion for 2005-06.

The sources said the meeting appreciated the CBR's performance and recommended a number of steps to check tax evasion. Among the measures were bringing more potential areas into tax net in 2006-07, besides rationalising duty and taxes on those areas which contributed substantially in 2005-06, to meet the country's highest-ever revenue collection target. The sources added that the meeting was also informed by CBR authorities that they have undertaken various programmes to facilitate the taxpayers and at the same time increase tax net for further improving revenue collection in 2006-07.

The government is considering substantial increase in revenue target for the next fiscal year.

 

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ISLAMABAD (June 02 2006): Middle East is emerging as a major source of foreign investment in Pakistan, owing to lot of economic potential, geographical proximity and a large number of Pakistani community in this region

This was stated by Commerce Minister, Humayun Akhtar Khan while inaugurating the envoys conference in Abu Dhabi on Thursday, according to a message received here.

He said, the post 9/11 scenario has totally changed outlook of investment in the Middle East countries, as they are now retrieving back their money from the West and looking for new countries to invest in.

The condition is getting quite conducive to attract foreign investment in Pakistan,, he said and added this conference is very significant in the emerging scenario for this region as well as for Pakistan. The Commerce Minister said, the economic policies introduced by the present government have yielded good resu1ts~ with per capita income increasing considerably during last three years.

He said, the gains from the economic growth are sure to trickle down to common man in the short to medium periods. The minister further emphasised that this is the policy of the government to arrange such regional envoy conferences earlier in Latin America, South Africa, Far East such conferences have been arranged.

These conferences have yielded good results, the recommendations and suggestions put forwarded are quite useful because well-thought long term and short-term strategies are being chalked out to boost the economy and attract foreign direct investment.

He said, the objective of these envoys conferences is to share our thoughts, experiences, and capabilities to identify opportunities and to devise strategies for capitalising on the economic opportunities in the region. The Middle East in general and Gulf Co-operation Council (GCC) countries in particular are important to us due to its economic potential and the multi-dimensional nature of our relationship with these countries.

"GCC is our significant economic partner which is expected to emerge as a hub of services industry. GCC countries constitute huge consumer market because of their GNP, per capita and large disposable incomes", he added.

In terms of foreign direct investment and workers remittances, GCC is even more important for our economy, the Commerce Minister added.

 

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KARACHI (June 02 2006): The National Assembly's Standing Committee on Production has expressed its satisfaction over the performance of Pak Suzuki Motor Company in meeting the demand of vehicles, achieving localisation and the contributions to the national exchequer.

The committee, led by its Chairman MNA Malik Niaz Ahmad Jakhar, visited Pak Suzuki Motor Company Limited plant to observe the manufacturing facilities and to discuss the issues pertaining to the local auto industry.

Malik Niaz Jakhar appreciated the role of Pak Suzuki in developing local auto industry on a solid basis, which led to the transfer of technology and human resource development.

Responding to the concern of Pak Suzuki Management for liberal import of used cars, he said that the committee would strongly recommend to the government to take appropriate measures so that the local industry was not adversely affected. Regarding the recently announced policy for the new entrants in the auto industry, the committee agreed to the recommendations of Pak Suzuki.-PR

 

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ISLAMABAD (June 02 2006): Minister for Petroleum and Natural Resources Amanullah Khan Jadoon on Thursday said the government was taking cognisant measures to curb menace of oil smuggling that inflicted annual loss of Rs five billion to the exchequer.

Talking to a five-member delegation from All Pakistan Lubricant Manufacturers Association led by its Chairman Mian Zahid Hussain here, the Minister said the government had already directed the respective authorities to keep strict vigil on the elements involved in such criminal activities and take them to task.

He said smuggling of petroleum products was not only depriving oil marketing companies of their due share but also causing heavy loss to the automotive industry due to substandard products.

All Pakistan Lubricant Manufacturers Association Chairman briefed the Minister about their problems. He said the lubricant manufacturers had so far invested Rs five billion in that sector and producing 357 million tons lubricant oil and 2O,OOO ton grease per annum providing employment to more than three million people.

The delegation proposed the government might review reduction in the taxes on lubricant products to attract investment in the country. Secretary Petroleum Ahmed Waqar and Director General (Oil) Sabir Hussain were also present in the meeting.

 

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Abu Dhabi: Pakistan's Minister of Commerce Humayun Akhtar Khan said yesterday in Abu Dhabi his country had changed significantly over the past few years with more focus on economic fundamentals.

"We're being viewed as an investment destination and since the reform process continues I am very confident that Pakistan in the next five or ten years will further improve. The president himself directly gets involved in assisting investors who come to Pakistan," he said.

The objective of the conference was to frame a strategy for Gulf and Middle East countries with an emphasis on market access, trade promotion and attracting investment.

The ambassadors of Pakistan, Jordan, Lebanon, Syria, Yemen, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE participated in the two-day conference.

Khan said Pakistan was not only working hard at reforms, but it is outpacing its main competitor India.

"I think the reform process in Pakistan is ahead of India's. We certainly don't mind healthy competition. We know India is attracting attention and I think Pakistan has some further advantages in the region because we have a channel to Western China, Afghan-istan and Central Asia," Khan said.

"We are trying hard to establish trade corridors to these regions that I have referred to, to lay the legal framework for a free flow of goods and services through Pakistan into these regions."

Khan said Pakistan drew roughly $3 billion in foreign direct investment (FDI) from around the world in 2005, including $648 million from the UAE.

"Now, in addition to the US, Europe and the Far East, we are focusing on the Middle East as a major source of FDI into Pakistan," he said.

Already Emaar has announced four major projects worth $20.39 billion in Pakistan the largest investment in the country ever along side a $10 billion investment by Dubai Ports World.

Islamabad offers equity to investors

Dubai: Islamic Bank also said it planned to open 70 branches in the country over the next 18 months.

There are also many opportunities to enter the country through its privatisation programme, Khan said.

"There are future plans for a lot of companies and fields to be privatised," he said. "The Pakistan State Oil is on the list to be privatised. Oil and Gas Developing Company of Pakistan is up for privatisation too. Major companies in the oil and gas sectors will be privatised and we expect a lot of interest of Middle Eastern companies in those privatisations."

Karachi (Bloomberg) Pakistan plans to sell shares in state-owned companies on global markets, counting on the South Asian nation's economic growth to entice investors and raise funds to plug a widening deficit.

The government will make multiple offerings of global depositary receipts every year, said Ashfaque H. Khan, head of the Pakistan Debt Office and chief government economist.

"We want to bombard investors with the Pakistan story,'' Khan said in Islamabad. "Establishing a relationship with the international equity markets is the best way to tell that story.''

Pakistan is trying to attract foreign investment to fuel a $118 billion economy that Prime Minister Shaukat Aziz predicts will expand at an annual pace of as much as 8 per cent over the next five years. The government is moving to equity markets to market Pakistan to global investors and finance its deficit after selling $1.9 billion of bonds overseas since 2004.

The country's current account deficit is wide-ning as imports rise on a higher oil bill and domestic demand.

The import-export deficit in the July-April period rose to $9.4 billion, from $4.9 billion a year earlier.

"Pakistan is a small part of Asian portfolios but it is a premium growth economy in Asia and there will be increasing appetite for Pakistan paper if economic reform and privatisation continue,'' said Tristan Clube, who runs Tethys Advisors, an company that advises offshore funds and fund managers in emerging markets.