Pakistan Economy - News & Updates - Archive

[Neo]

Economic targets do not match ground realities: ministry ​

Saturday, May 24, 2008

ISLAMABAD: Ministry of Finance high-ups have raised objections over the growth target of 6.5 per cent envisaged by the PPP-led government for the next fiscal year 2008-09, saying that these economic targets did not match the ground realities.

However, officials in the Planning Commission are of the view that owing to low-base GDP estimate of 5.78 per cent for the outgoing fiscal year, the growth rate target of 6.5pc for the next fiscal is achievable and cannot be termed over-ambitious.

An official in the Finance Ministry told The News on the condition of anonymity that the central bank increased its discount rates and took many other steps to control inflationary pressure.

In these extraordinary circumstances, how is the government supposed to achieve higher growth in the agriculture and manufacturing sectors to achieve its desired target of 6.5pc by the next fiscal, he questioned.

On the agriculture sector, another official of the Ministry of Food, Agriculture and Livestock said that this sector could achieve a bumper wheat crop in the range of 24 million tonnes by the next fiscal year if the government ensured the availability of fertilisers within the range of Rs1500 per bag, which means another Rs1,000 to Rs1,500 subsidy on each bag of fertiliser.

He said that the rice and cotton production would also be increased provided the government increased its subsidy. Citing an example of India, he said that New Delhi’s government is providing a subsidy of Rs836 billion on various heads of agriculture but in Pakistan there was not much focus on the agriculture sector.

The target to contain inflation at 8 per cent seems to be unrealistic as the increase in POL prices; electricity and gas prices and food prices would take the inflation into double digits in the next fiscal year.

The same base would not be available to the local industries, agriculture and other sectors due to the factor that State bank of Pakistan (SBP) has raised the interest rates, utility prices ie electricity prices and gas prices are likely to be adjusted upwards, and oil prices would also be re-adjusted upwards to pass on the impact of higher import cost in the next fiscal year.

Depreciation of the rupee against the dollar, the official said, would also negatively impact imports and would make it difficult for the local industries to achieve a growth rate of 9 per cent in the next fiscal year.

Economic targets do not match ground realities: ministry

 

[Neo]

Sindh to establish industrial zones: CM ​

Saturday, May 24, 2008

KARACHI: Chief Minster of Sindh, Syed Qaim Ali Shah informed that five thousand acres of land have been allocated by the government of Sindh for the establishment of three new industrial zones.

Speaking at a dinner ceremony held in his honour by the Karachi Chamber of Commerce and Industry (KCCI) on Thursday, Shah further informed that proposals to make Nawabshah and Sukkur tax-free industrial zones for the next 10 years have been sent to the Prime Minster.

He said that the new government is making extensive efforts to establish industrial zones all over Sindh, as it is the most ideal province for investments, while at the same time encouraging industrialists to expand their businesses without any fear of obstacles.

The CM stated that Karachi is struggling to get its law and order situation under control and it would take sometime before stability can completely materialise. Meanwhile, he further added, businessmen should work towards regaining all the markets they have lost to their competitors and should bring them back into the country.

Shah said that businessmen would be supported by the government in their endeavors and they would not be asked to give any accountability over their transactions.

He further shared the government’s aim to build a new power plant, which would address power crises and aid traders in conducting their businesses better. He observed that despite the fact that Sindh is rich in resources, it continues to remain poor. He noted that the Thar coal power plant would be employing 150,000 people once it beings its operations completely.

Shah added that work on the federal budget is progressing and they are trying to make it as public friendly as possible, while further commenting that they are also trying to revise the NFC award to represent Sindh better before announcing the budget.

Sindh to establish industrial zones: CM

 

[Neo]

PR incurring nearly Rs35bn annual loss ​

Saturday, May 24, 2008

LAHORE: Pakistan Railways (PR), is facing an annual loss of nearly Rs35 billion and is making a sustained effort to cut down on these figures, said chairman, Pakistan Railways, Muhammad Kashif Murtaza here on Friday while speaking to mediamen at the Railways Headquarters on the occasion of signing agreement for the construction of Prem Nagar Dry Port situated about 48km off Lahore in cooperation with two private firms.

The GM Railways Asad Saeed on the occasion said that there were multiple reasons for PR losses; but railways had to bear the worst of its losses after the assassination of Benazir Bhutto. About other causes contributing to PR losses, he said spiralling crude oil prices and acute power shortages were the other two main factors to blame for PR losses.

He also said that train fares had not been enhanced in consonance with rapid rise in oil prices in the international markets.

Load shedding badly disrupted the railways system and PR had to seek alternate recourse to keep going on.

Earlier, Pakistan Railways General Manager Asad Saeed signed the agreement with M/s Qasim International Container Terminal, Karachi (QICT) and M/s Premier Mercantile Services, Karachi (PMS) to establish a dry port at Prem Nagar Railway Station at a cost of Rs1729 million.

The agreement was signed on Built-Operate-Transfer (BOT) basis.

According to the agreement, the QICT will contribute Rs575 million, PMS Rs660 million and PR will contribute Rs494 million for the dry port.

The project will be completed by June 30, 2009 and generate revenues of nearly Rs911 million during the first year of operations.

PR incurring nearly Rs35bn annual loss

 

[Neo]

Planning Commission, MoF disagree over growth targets​

ISLAMABAD: The Ministry of Finance and the Planning Commission have conflicting views on growth targets proposed in the macroeconomic framework for the next fiscal year 2008-09 with one contending that targets would not be achievable and the other saying otherwise.

A senior official at Ministry of Finance informed on the condition of anonymity, that economic targets proposed in the macroeconomic framework for the next fiscal year are not based on ground realities and it would be difficult for the economic managers to achieve them.

The Officials at Planning Commission are of the view that due to the low growth and low base in the outgoing fiscal year 2007-08 the GDP growth target of 6.5 percent is achievable.

The finance ministry officials are of the view that the theory of low base growth could work when the ground realities and other factors remain the same at the level of the outgoing fiscal year.

Target to contain inflation at 8 percent seems to be unrealistic as the increase in POL prices; electricity and gas prices and food prices would take the inflation to double digits in the next fiscal year. Due to these factors, the same base would not be available to the local industries, agriculture and other sectors in the next fiscal year.

State bank of Pakistan has raised the interest rates, utility prices are likely to be adjusted upwards, and oil prices would also be re-adjusted upwards.

Depreciation of rupee against the US Dollar will make it hard for the industries to achieve growth rate of 9 percent in the next fiscal year. Agriculture growth rate is also fixed at the higher side, which would require huge resource for the development of this vital sector to achieve this ambitious growth target. “Water shortages, high prices of agriculture inputs like pesticides, fertilizers, diesel prices and transportation charges would have negative impact on agriculture growth,” they explained.

Macro economic framework for the 2008-09 proposes GDP growth at 6.5 percent, while last year it was targeted as 7.2 percent, and actual growth has been estimated at 5.78 percent.

The proposed 6.5 percent GDP growth in fiscal year 2008-09 is based on contribution of three major sectors with growth rates of agriculture 4 percent, manufacturing 8.5 percent, and that of services sector 6.7 percent in the next fiscal year. The contribution in agriculture sector of major crops is 4.5 percent, and of minor crops is 2.5 percent, livestock 4 percent, fishery 4 percent and forestry by 1.5 percent.

Manufacturing sector is projected to achieve a growth rate of 8.5 percent with large-scale manufacturing at 9 percent and small-scale manufacturing by 8 percent with major contributions from cement 23.7 percent, motor tyres 16 percent, trucks 28.5 percent, air conditioners 26 percent, and petroleum products 10.4 percent and motor tubes 11.4 percent.

The services sector as a whole is projected to grow by 6.7 percent with main contributors of value addition in this sector are transport, storage and communication 5 percent, wholesale and retail trade 6.5 percent, finance and insurance 12 percent, ownership of dwellings 3.5 percent, public administration and defence 4 percent and social, community and personal services 8 percent.

To attain the projected growth target, total investment is projected to increase by 19.66 percent to Rs 2702.7 billion in 2008-09 against Rs 2258.2 billion estimated for 2007-08. As a percent of GDP, total investment is expected to rise from 21.6 percent in 2007-08 to 22.4 percent in 2008-09.

The inflation rate, based on CPI for 2008-09 has been projected at 8 percent while the last year target was 6.7 percent. Fiscal Policy aims to keep the fiscal deficit within a sustainable limit by furthering reforms in the tax system, broadening the tax base, improving the tax compliance and minimising tax evasion. The monetary expansion for the year 2008-09 will be in line with the projected GDP growth of 6.5 percent and CPI Inflation of 8 percent.

Trade Account for 2008-09 seeks exports to grow by 15 percent to $21.6 billion against $18.8 billion estimated for 2007-08. Imports during 2008-09 are anticipated to increase by 12 percent to $37.6 billion due to higher volume of import of food items, POL, edible oil and fertilizers. As a result, the trade account is projected to be in deficit by $15.9 billion in 2008-09 or 8.3 percent of the GDP.

With a deficit of $15.9 billion on the trade account and a surplus of $3.4 billion on the invisible account, the current account deficit is targeted at around $12.5 billion (6.5 percent of the DGP) in 2008-09 against a deficit of $13 billion (7.6 percent of GDP) in 2007-08.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

‘Punjab budget to be pro-poor with emphasis on development’​

ISLAMABAD: Forthcoming budget for the Province of Punjab would be based on three priorities including taxing the rich, providing relief to the poor and massive reduction in non-development expenditures of the province.

Explaining the budget priorities for the next fiscal year 2008-09, Tanvir Ashraf Kaira, Finance Minister Punjab informed Daily Times at the sidelines of the Annual Plan Coordination Committee (APCC) here Friday.

He disclosed that APCC has reduced the allocation for irrigation projects for the province and, “we have asked the Planning Commission to increase such allocations to enable the province to grow more agriculture products for the country.”

He said that taxes on rich are to be imposed to generate sufficient revenues to undertake relief programmes for the poor, in this regard, proposals from the different provincial departments are being sought.

He further said that corporate governance would be promoted in the province of Punjab so that an outcome based mechanism is ensured for services delivery and benefit of the general public.

He informed that the income from agriculture is already taxed through land-based mechanism; however, he was of the view that agri-income tax needs some modification for revenue generation. We would look into different proposals regarding agricultural taxation or take other steps.

Government of Punjab would develop its capacities for tax collection and once this is achieved the province would ask the federal government to transfer the sales tax collection rights to the province.In order to enable the province to enhance its capacity of tax collection special efforts would be put in place during the next few years.

Giving details of the Annual Development Plan of the province for the fiscal year 2008-09, he said the ADP would be much more than actual utilisation in the current fiscal year. He said that last year the previous government had announced Rs 150 billion ADP, which was subsequently reduced to Rs 121 billion during the caretaker government’s tenure. Over 80 percent of the ADP was utilised during the first half of the current fiscal year 2007-08 by the last government against the normal practice to gain political motives.

He said that no ongoing project would be deleted from the provincial ADP and new schemes for construction of small dams, irrigation development and social services would be introduced.

ADP of the province for the next fiscal would aim at promotion of education, heath facilities and infrastructure development for sustainable growth of provincial economy.

He said that provincial government would provide state owned agriculture land to to help increase agriculture produce for food security.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

‘Expedite oil and gas exploration’ ​

ISLAMABAD: The Federal Minister for Petroleum and Natural Resources Shah Mehmood Qureshi has directed the ministry to evolve a proactive approach and expedite oil and gas exploration in the country to meet the challenges of soaring international oil prices and reduction of oil import bill. The minister expressed these views on Friday while taking a briefing from the senior official of the Ministry of Petroleum.

Secretary Petroleum and Natural Resources Zafer Mehmood briefed the minister about the organisation, functions and on-going projects of the ministry. Mr Qureshi was pleased to know that the ministry was making vigorous efforts with regard to oil and gas exploration. He also took note of the huge potential of development of mineral wealth like coal and copper. He took special interest in all the projects aimed at developing minerals in the country.

Daily Times - Leading News Resource of Pakistan

 

[vish]

PR incurring nearly Rs35bn annual loss ​

Saturday, May 24, 2008

LAHORE: Pakistan Railways (PR), is facing an annual loss of nearly Rs35 billion and is making a sustained effort to cut down on these figures, said chairman, Pakistan Railways, Muhammad Kashif Murtaza here on Friday while speaking to mediamen at the Railways Headquarters on the occasion of signing agreement for the construction of Prem Nagar Dry Port situated about 48km off Lahore in cooperation with two private firms.

The GM Railways Asad Saeed on the occasion said that there were multiple reasons for PR losses; but railways had to bear the worst of its losses after the assassination of Benazir Bhutto. About other causes contributing to PR losses, he said spiralling crude oil prices and acute power shortages were the other two main factors to blame for PR losses.

He also said that train fares had not been enhanced in consonance with rapid rise in oil prices in the international markets.

Load shedding badly disrupted the railways system and PR had to seek alternate recourse to keep going on.

Earlier, Pakistan Railways General Manager Asad Saeed signed the agreement with M/s Qasim International Container Terminal, Karachi (QICT) and M/s Premier Mercantile Services, Karachi (PMS) to establish a dry port at Prem Nagar Railway Station at a cost of Rs1729 million.

The agreement was signed on Built-Operate-Transfer (BOT) basis.

According to the agreement, the QICT will contribute Rs575 million, PMS Rs660 million and PR will contribute Rs494 million for the dry port.

The project will be completed by June 30, 2009 and generate revenues of nearly Rs911 million during the first year of operations.

PR incurring nearly Rs35bn annual loss

May be Lalu would help?

 

[Neo]

May be Lalu would help?

Send him over.

 

[Neo]

Trade deficit projected at $15.9 billion ​

ISLAMABAD (May 24 2008): Pakistan's trade deficit has been projected at $15.9 billion in 2008-09 with estimated exports growing by 15 percent to $21.6 billion while imports by 12 percent to $37.6 billion. The export estimates in 2007-08 stand at $18.8 billion. These projections were presented to the Annual Plan Coordination Committee, which met here on Friday.

The final estimates will be prepared by the commerce ministry in the coming Trade Policy. Imports will be increased by 12 percent in the next fiscal year due to higher volume of food items, oil, edible oil and fertilisers. As a result, the trade account is projected to be in deficit by $15.9 billion in 2008-09 or 8.3 percent of GDP.

Invisible account: Prospects for the invisible balance will continue to be governed mainly by the behaviour of the worker's remittances. For 2008-09, remittances have been projected at $6.9 billion against $6.5 billion estimated for 2007-08. Allowing for other invisible receipts and payments, the surplus on invisible account is anticipated at $3.4 billion against a surplus of $1.7 billion estimated for 2007-08.

Current account balance: With a deficit of $15.9 billion on the trade account and a surplus of $3.4 billion on the invisible account, the current account deficit is targeted at around $12.5 billion (6.5 percent of GDP) in 2008-09 against a deficit of $13.0 billion (7.6 percent of GDP) in 2007-08.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

6.5 percent GDP growth seen in 2008-09 ​

ISLAMABAD (May 24 2008): Pakistan's GDP growth rate has been projected at 6.5 percent in 2008-09, which is 0.7 percent less than the original target of 7.2 percent for current fiscal year. The next fiscal year's targeted growth will be contributed by 4 percent agriculture, 8.5 percent manufacturing and 6.7 percent services sector.

These projections were made at the Annual Plan Coordination Committee meeting on Friday. The meeting will also continue today (Saturday). The APCC projections will come up for the consideration of National Economic Council (NEC) in its meeting later this month or early next month.

According to the working paper presented at the meeting, agriculture sector has been projected to grow by 4 percent in the next fiscal year with contribution of 4.5 percent growth in major crops, 2.5 percent in minor crops, 4 percent each in livestock and fishery and 1.5 percent in forestry.

The manufacturing sector is projected to achieve a growth rate of 8.5 percent during 2008-09. But this target is set with an anticipation that energy shortages will subside to a certain extent and export competitiveness improves through appropriate policy measures.

Large scale manufacturing has been projected to grow by 9 percent, small scale manufacturing at 8 percent. The major boost to industrial growth will come from cement with 23.7 percent, motor tyres 16 percent, trucks 28.5 percent, air conditioners 26 percent, petroleum products 10.4 percent and motor tubes 11.4 percent.

The services sector would continue to be the main contributor towards the increase in economic growth during the next fiscal year. The main contributors of value addition in this sector are transport, storage and communication with projected growth of 5 percent, wholesale and retail trade with 6.5 percent, finance and insurance with 12 percent, ownership and dwellings with 3.5 percent, public administration and defence 4 percent and social; community and personal services 8 percent.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Inflation target for 2008-09 projected at eight percent ​

ISLAMABAD (May 24 2008): Inflation target for 2008-09 has been projected at 8 percent, which is well above the original target 6.5 percent for the current fiscal year. The target is, however, less than CPI based inflation of 10.3 percent recorded during the first 10 months of the current fiscal year.

Reduction in the rate of inflation in next fiscal year as compared to estimate for this fiscal year will be achieved by ensuring fiscal stringency, tight monetary policy and adequate supply of essential items, according to working paper for the APCC meeting.

The monetary expansion for 2008-09 will be in line with the projected GDP growth and inflation targets. To keep M2 growth in the targeted level and to encourage private sector credit, it will be imperative that government borrowings should be limited to a safe level. This will also help in bringing down the CPI inflation and strengthening the growth prospects of the economy.

The main thrust of fiscal policy during the next fiscal year would be to keep the fiscal deficit within a sustainable limit by furthering reforms in the tax system, broadening tax base and improving tax compliance and minimising tax evasion. The main objective of the policy would be to allocate adequate resources for development activities particularly for pro-poor expenditure in conformity with Fiscal Responsibility and Debt Limitation Act, 2005.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

PSDP size may be increased to Rs 470 billion ​

ISLAMABAD (May 24 2008): Public Sector Development Programme (PSDP) size of Rs 437 billion proposed by the Finance Ministry Priorities Committee might be increased to Rs 490 billion as the Planning Commission (PC) is seeking the increase in order to ensure the timely availability of resources for ongoing and some important new development projects.

However, the proposed PSDP allocation, which is being distributed among the federal and provincial ministries, stands at Rs 437 billion. In Annual Plan Co-ordination Committee meeting, the PC has sought authorisation from the federal government to make the adjustments in the detailed programme while maintaining sectoral priorities.

The proposed allocation for federal ministries is Rs 188.9 billion in 2008-09, which is 17.8 percent less than 229.8 billion allocation under the same head in the current fiscal. Special areas like Fata, Northern Areas, and AJK, will get Rs 23.2 billion or 9.4 percent more than this fiscal allocation of Rs 21.2 billion.

Rs 26 billion will be allocated for special programmes in the next fiscal or 23 percent less than this fiscal allocation of 34.4 billion in the current fiscal. Corporations will get an allocation of Rs 48.4 billion in 2008-09 or 2.4 percent less than this fiscal allocation of Rs 49.6 billion.

The proposed allocation for provinces is Rs 150 billion, which remained unchanged if compared with the allocation of the current fiscal. The proposed allocations will be approved by the National Economic Council, which will further scrutinise them.

According to details given to the APCC, major emphasis in the proposed 2008-09 development programme is on the infrastructure development sectors with an allocation of Rs 111.4 billion or 38.8 percent of the PSDP. The government will spend Rs 51.9 billion on water resources development, Rs 43.5 billion on transport and communication, and Rs 16 billion on energy.

Social sectors and poverty related expenditure has been proposed at Rs 151.6 billion or 52.8 percent of the PSDP. The allocation for strategic support to the production sectors like agriculture, industry and mineral has been proposed at Rs 24 billion which is 8.4 percent of the total federal programme, which will come to Rs 340 billion if increase of Rs 53 billion demanded by the PC was approved by the National Economic Council (NEC).

The federal allocation proposed by the Priorities Committee, according to the PC, meets only the funding requirement of the ongoing projects. To maintain the momentum of development projects expectations, the size of the PSDP should be enhanced to a reasonable level to make available fiscal space for new projects in line with the government's priorities.

The water and power ministry will be given Rs 51.9 billion for the development of water resources in the next fiscal. The allocation for the same ministry for power sector has been proposed at Rs 15.8 billion.

The ministry's total estimated cost of land acquisition for hydel projects (five big dams) is Rs 158 billion. The proposed allocation for this purpose in 2008-09 is Rs 1.75 billion.

Pakistan Atomic Energy Commission will get Rs 15.8 billion in the next fiscal. Pakistan Nuclear Regulatory Authority will get Rs 0.47 billion, petroleum and natural resources ministry Rs 0.22 billion, communication division Rs 32.79 billion, ports and shipping Rs 0.33 billion and Railway ministry will get Rs 11.05 billion in the next fiscal.

Food and agriculture will get Rs 19.19 billion, interior Rs 5.6 billion, industries Rs 4.58 billion, defence Rs 2.61 billion, housing and works Rs 1.25 billion, law, justice division Rs 2.38 billion, Revenue division 2 billion, defence production division will get Rs 1.3 billion in 2008-09.

Finance division will get Rs 11.77 billion, education division Rs 5.69 billion, Higher Education Commission, Rs 18 billion, health division Rs 18.15 billion, information technology and telecommunication Rs 1.76 billion, science and technology Rs 2.73 billion Kashmir Affairs and Northern Areas division Rs 15.08 billion, states and frontier regions division Rs 8.16 billion, environment division Rs 2.1 billion.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

SBP measures would have negative impact on economy: ICCI ​

ISLAMABAD (May 24 2008): Muhammad Ijaz Abbasi, President Islamabad Chamber of Commerce & Industry has criticised the measures taken by State Bank of Pakistan (SBP) including increasing discount rate and imposition of 35 percent Letter of Credit (L/C) margin on imports.

Addressing a meeting here at ICCI, Abbasi said that enhancement of key discount rate to 12 percent from 10 percent is totally unjustified, which will have a negative impact on the already under strain economy of Pakistan.

ICCI chief said that State Bank has increased the discount rate by 50 percent just a month ago, which could not produced the desired results. He said that imposition of 35 percent L/C margin would dent exports to a great extent.

Muhammad Ijaz Abbasi said that inflation in the country is rising day by day, which should be controlled by adopting some other measure rather than putting extra pressures on the businesses. He urged the government to take measures for growth of businesses rather than adopting discouraging policies.

He said that raise in oil and gas prices negatively impacted the industrial production and the recent measures of SBP will further make our business more uncompetitive in the international market.

President said that exports of Pakistan are not showing upward trend because of increase in the cost of doing business. He said that a summary has been submitted to Ogra for 30 percent increase in the gas prices, which has created a great panic among the business community and the general public. He said that gas rates should not be increased, because Pakistani products will become more expensive and uncompetitive.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Warid's investment to reach $1.5 billion by year-end ​

LAHORE (May 22 2008): The Warid Telecom's total investment in Pakistan will touch $1.5 billion by the end of this year while the company will further increase its investment in the telecom sector by $1 billion by the end of 2009.

Warid Telecom Chief Executive Officer (CEO), Marwan Zawaydeh, disclosed this while addressing a news conference organised here Wednesday to share the company's achievements, recognitions and future plans after completing three years of successful operations in Pakistan. Warid Telecom Chief Commercial Officer Thomas Yeo also spoke on the occasion.

He said the company, during its three year operation, has achieved all the targets including loyal and satisfied subscriber base and gaining the strong reputation for the best quality network by deploying latest technology in the GSM network.

'Under the leadership of our Chairman His Highness Sheikh Nahayan Mabarak Al Nahayan and guidance of Bashir A Tahir- Chief Executive Officer Abu Dhabi Group we are focusing the full power of our assets to become the best mobile phone operator and the primary choice of Pakistani subscriber, fulfilling the consumer's communication needs,' he added.

Moreover, he maintained that the company has started investing heavily to double its network capacity and coverage and plan to take over installed cell sites to more than 5,000 by the end of this year.

This will enhance our existing state-of-the-art network and also result in connecting the remote areas while maintaining best network coverage, voice clarity and innovations.

Marwan Zawaydeh also unveiled the new logo of the company and said the company's new logo has a more approachable image and will strengthen the Warid identity while keeping the customers in focus and encompass the expanding reach of Warid not just in Pakistan- but in an international footprint.

Warid Telecom's Chief Commercial Officer (CCO), Thomas Yeo announced the re-launch of the company towards a new dimension and shared the latest innovation offered through Warid's products and services to its subscribers as part of Warid's Third Anniversary celebration.

With the re-launch, we have lined up an entire suite of innovative services and delightful experiences to welcome new users to our network as well as to ensure our existing customers continue to feel pampered, he added.

'With Warid, being a new family member of SingTel Group, we are certain that the experience sharing in product innovation and customer service excellence among the Group will enhance Warid's speed to market some of the most interesting and great value offering to our customers in Pakistan,' Thomas Yeo said.

He said the Warid Telecom entered into a strategic alliance with SingTel. Subsequent to this transaction, telecom giant SingTel has acquired 30 per cent equity stake in Warid Telecom for an estimated $758 million.

Warid Telecom is one of the fastest growing GSM mobile companies in Pakistan. Since its launch on May 23, 2005 Warid has more than 15 million subscribers and cover over 5,000 destinations all over Pakistan. 'Warid Telecom is also providing one of the largest and continuously growing International Roaming network in over 129 countries with roaming partnerships with 200 global operators,' he added.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

'Per capita water availability reduces to alarming figure' ​

LAHORE (May 24 2008): Per capita water availability in Pakistan reduced to an alarming figure of 1070 cubic meter in 2007 while the country has lost the storage capacity equivalent to 5.13 MAF due to silting in the reservoirs of Tarbela, Mangla and Chashma.

This was revealed by General Manager (Technical Services),Wapda, Dr Izhar-ul-Haq while talking to the 3rd Senior Management Course delegation of the National Management College, here on Thursday. Izhar-ul-Haq briefed the delegation about the hydropower and water sectors and said that Pakistan has the potential of generating more than 54,000 MW low-cost hydropower electricity.

To cope with the increasing needs in water as well as power sector, the constructions of large dams have become all the more inevitable, he added. Water and Power Development Authority (Wapda), member power, Fazal Ahmed Khan told the delegation that Wapda's receivables have swelled to Rs 187.753 billion including a sum of Rs 72.060 owed by Fata and Rs 38.775 billion by KESC.

Moreover, he said that the system losses were reduced to 20.6 per cent till the end of April during the current fiscal year and the numbers of consumers are likely to reach 18 million by the end of June 2008.

In order to bridge the gap between generation and consumption, the Federal government, had approved several projects of power generation to be executed on fast track basis and additional 2,200 MW electricity would be made available to the national grid within one year.

He said that all resources are being tapped with a view to enhance power generation capacity in the country. Dilating upon the various measures, he apprised the delegation that the contracts for setting up of 425 MW Nandipur and 525 MW Chichoki Mallian thermal power projects have already been signed.

The two projects, being executed in public sector, are expected to be completed in 2010 and 2011 respectively. Besides, 1,800 MW electricity will also be added to the national grid through private sector in 2008-10, he further said. Wapda Member (Finance) Chaudhry Abdul Qadeer and the senior officers of Wapda were also present on the occasion.

Business Recorder [Pakistan's First Financial Daily]