Pakistan Economy - News & Updates - Archive

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China Mobile to further invest $ 800 mln in Pakistan

BEIJING, June 19 (APP):China Mobile, the world largest telecommunication organization will make further investment amounting to $ 800 million in Pakistan. This was stated by President of China Mobile Wang Gian Zhuo during a meeting with Foreign Secretary Salman Bashir here on Thursday.

China Mobile has already made an investment of $ 800 million in Pakistan.

Wang said that besides making further $ 800 million investment, he would also pursue many internationally acclaimed telecommunication organizations like Sony-Erricson to take part in the development of telecommunication in Pakistan.

He said the Pakistan has great deal of opportunities for Foreign Investors as it offers equal level playing fields for both foreign and domestic investors.

The President of China Mobile said that he had recently held very fruitful meeting with the Pakistani leadership and was impressed about the incentive Pakistan is offering for the Foreign Investors, particularly for Chinese Investors.

Wang also informed Foreign Secretary that China Mobile will also contribute in the socio-economic uplift of the people of Pakistan.

In this connection, he pointed out that his organization will provide free text books to the young students so that they could carry out their studies in a smooth way.

The Foreign Secretary on the occasion thanked Wang Gian Zhou for his complements and said that his country would provide all possible assistance to the Chinese investors in Pakistan.

Associated Press Of Pakistan - China Mobile to further invest $ 800 mln in Pakistan

 

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None of MINFAL depts headed by technical experts ​

Thursday, June 19, 2008

ISLAMABAD: None of the MINFAL attached departments are headed by technical experts in the field.

Retired bureaucrats are heading the attached departments of the Ministry of Food Agriculture and Livestock (MINFAL) a few top slots are lying vacant or being run on ad hoc appointment.

This apathy in the affairs of the MINFAL reveals why its growth dropped while some of the sectors like crops showed a negative growth during the outgoing fiscal, a MINFAL official requesting not to be named told The News on Wednesday.

Out of the total nine attached departments of the MINFAL none is headed by purely technical person. Instead they are either vacant or seated by retired bureaucrats on additional or current charge basis, the official added.

A professional banker having no experience of serving in Pakistan is heading the Pakistan Agricultural Research Council (PARC) the main engine for the growth of both crops and livestock sector. PARC chairman is near the completion of his contract has left the whole affairs of ailing research entity untouched and unresolved.

A retired (district management group) DMG officer head the Department of Plant Protection (DPP) housed in Karachi it is the main watchdog for animal and plant imports and exports. Retired army personnel head the Department of Fisheries.

Another retired bureaucrat is heading the Soil Survey of Pakistan depriving technical experts having sound professional skills in the field of this right.

National Animal and Plant Health Inspection Service (NAPHIS), a newly built organization, will mainly take several initiatives to meet agriculture exports under WTO regime for meeting international standards, is also headed by former bureaucrat and not having experience of relevant field but a friend of the then secretary, Ismail Qureshi.

Officials of the ministry are looking after some of the attached departments of MINFAL. ADC, Dr Qadir Bux Baloch, is looking after Agriculture Policy Institute (API) mainly responsible for making policies and fixing support prices of various commodities. Qadir Bux Baloch is also looking after the affairs of Pakistan Oil Development Board (PODB) whose post of MD is lying vacant after its Managing Director Nayyer Agha was elevated to the post of Secretary.

Similarly Federal Seed Certification & Registration Department is also headed on ad hoc basis after the retirement of his DG, Dr Ikhlaq and now a junior officer is currently seeing the affairs of the department on current charge basis.

Within the ministry the cotton commissioner, a technical post, has been assigned a joint secretary belonging from secretariat group again having no experience of related subject.

Another post of commissioner special crops is vacant as federal public services commission has been requested to fill the post from the last six years but it has failed to recruit a suitable one and it is run on ad hoc basis.

The charge of wheat commissioner has been assigned to a commissioner who has no relevant experience in wheat. During Sikandar Bosan tenure as federal minister, his main job was to write speeches for the minister and he is still doing the same job and does little contribution in wheat.

None of MINFAL depts headed by technical experts

 

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Robust growth forecast for telecom sector ​

Thursday, June 19, 2008

LAHORE: Mobile companies in many regions of the world have not enjoyed the phenomenal subscriber growth witnessed in Pakistan propelling the telecom sector to the stature of a powerhouse in a short span of time.

With mobile penetration at 52 per cent, there is still great potential to be capitalised upon in this market. It must be noted that the overall environment has changed significantly in the last five years where aggressive competition within the industry has translated into benefits for the overall consumer and economy of Pakistan.

An analysis of the telecom industry of Pakistan showed that telecom companies in Pakistan had effectively used a mix of strategic marketing and technological advancement to push their growth and become one of the fastest growing telecom markets in the region.

Until 2001, a few telecom players were providing basic services to a small elite customer base, however, after subsequent deregulation and investor-friendly policies of the government, we are now witnessing a highly competitive market, where telecom services are accessible to all.

With six cellular operators working in Pakistan providing network coverage of almost 90 per cent, significant advantages are being passed on to the end consumers.

Coupled with the positive financial contributions that the industry is making towards the economy as a whole, no doubt we have come a long way in connecting the people of Pakistan. With over 80 million people connected to date and tele-density at 52 per cent Pakistan stands well above other regional telecom players.

A total of Rs235,613 million in revenue was generated by the telecom industry in 2007 which had a major impact on the economy of Pakistan. The sector is also currently contributing 2 per cent out of the 7 per cent of GDP and in 2006-07, more than $1,824 million were invested in Pakistan into the telecom industry through FDI, making it a major driver of economic growth.

This remains the sole sector within the economy to have received such a substantial investment, making it 35 per cent of the overall FDI in the country.

The telecom industry has become a significant player for the economic growth and social well-being.

Setting aside this sector’s significant contribution towards government coffers through taxes, and the provision of a necessary service which connects the four corners of Pakistan, it must be noted that thousands of jobs have been created through this industry.

According to figures quoted in PTA’s 2007 Industry Analysis Report, so far more that 212,000 jobs have been created nationwide, due directly to mobile operators, with many more as a result of indirect and induced employment, for example support service providers, hand set retailers, tower engineers, laborers etc.

An evolving, yet important area that must be addressed by corporations is Corporate Social Responsibility (CSR). Corporations are increasingly recognizing the need to give back to the community within which they operate. It is encouraging to note that the telecommunications sector of Pakistan is spear heading this initiative as most of the telecom operators in Pakistan are liaising with a cross-section of NGOs and other well-known social and charitable organizations, such as The Citizen Foundation, The Kidney Center, Edhi Trust and The SOS Villages to name a few, to launch short and long terms plans to give back to the community and nation at large. On the national level, lagging fronts like the media, sports and entertainment industry of Pakistan have also received a great boost due to the support of the various telecom giants.

Robust growth forecast for telecom sector

 

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World Bank asks government to carry out reforms, quick adjustments ​

ISLAMABAD (June 19 2008): The World Bank has advised Pakistan to carry out economic reforms and make quick adjustments to steer clear of economic crisis. According to the bank sources, the new government should watch its steps on way to economic stability. The WB further advised the new government to carry out economic reforms and make quick adjustments to steer clear of an economic crisis.

The reminder to keep in view the economic aspect while making policies came from Praful Patel, WB vice president, at the end of his three-day visit to Pakistan. Patel's word of caution reflects his concern that Pakistan is likely to miss targets of fiscal deficit, current account deficit, inflation, and foreign exchange reserves.

Patel has observed that there is no crisis at the moment but he believes that "economic indicators of Pakistan are not a good omen for future economic picture of the country." According to Patel, the economic growth Pakistan had seen over the past few years, in addition to foreign direct investment and remittances, could be maintained only if the government adjusted to the global prices of oil and wheat.

Patel's saying that since re-adjustments in the economy would be painful "there must be an appropriate safety net for the poor" should be heeded to. This is not the first that IFIs have painted a bleak picture of Pakistan's economy in terms of achieving its economic goals.

According to thweWB and Asian Development Bank's projections, Pakistan's economy will not be able to meet its target of 7.2 percent GDP growth rate this year. The growth rate is predicted to linger around 6.5 percent in the current fiscal year owing to a number of factors.

While keeping in view the advice of the WB, the government will have to dispel the impression that Pakistan's economy mostly runs in accordance with the dictates of the WB and International Monetary Fund (IMF), resulting in an increased level of poverty.

For a start, the task before the economic policy makers at the moment is to restore investors' confidence. A smooth political process and the availability of maximum energy input to the industrial sector will give the ailing economy the required impetus.

Business Recorder [Pakistan's First Financial Daily]

 

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$256.85 million loan to boost power supply ​

WASHINGTON (June 19 2008): The World Bank has approved $256.85 million credit and loan for Pakistan, designed to improve reliability and efficiency of power supply through a comprehensive project. The Electricity Distribution and Transmission Improvement Project aims to improve distribution and transmission networks to meet increasing electricity demand and to strengthen institutional capacity of electricity distribution companies.

The project components include: (a) physical strengthening of distribution networks operated by distribution companies located in Hyderabad, Islamabad, Lahore and Multan; (b) removing bottlenecks in the transmission grid operated by the national transmission company. Through the construction of a sub-station at Kassowal and associated lines; (c) technical assistance for capacity building, specialised studies, energy efficiency, and sector reform activities; and (d) a pilot energy efficiency programme, involving installation of energy saving equipment at the customer level.

The US $173.6 million loan from the International Bank for Reconstruction and Development (IBRD) has 30 years maturity, including a five-year grace period. The US $83.1 million credit is provided by the International Development Association (IDA), the World Bank trade's concessionary lending arm and has 35 years to maturity and a 10-year grace period.

Pakistan is facing electricity shortages. While electricity sales have risen by 40 percent in the past five years, generation capacity remained practically stagnant. It is estimated that the system lacks about 2000 MW to cover peak demand with acceptable reliability.

"Pakistan has added about one million new, mainly household, electricity connections each year, about a quarter of its population still has no access to electricity, and the quality of service to those who are connected has been deteriorating sharply," said Yusupha Crookes, World Bank Country Director for Pakistan.

"The project supports investments in the distribution and transmission networks, which are essential to meet the growth in electricity demand more efficiently, and with improved quality of service," said Rashid Aziz, World Bank Senior Energy Specialist and project team leader.

"The project also aims to help the companies reduce technical and commercial losses and help strengthen various corporate functions and governance. It also includes a component to support energy efficiency and conservation activities to urgently respond to the critical shortages that the country is facing right now."

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistani consumer confidence lowest in six months: report ​

Thursday, June 19, 2008

KARACHI: Seventy-three per cent of Pakistani consumers think their country is currently in recession and consumer confidence worldwide has fallen to its lowest level in several years, according to the Nielsen Global Consumer Confidence Index, which measures consumer confidence, major concerns and spending habits in 51 countries.

In a report issued by the organisation, the latest Nielsen Consumer Confidence Index dropped to 88, down six points in the last six months, the largest single drop the index has recorded in the last three years.

The report stated that no country has been spared the domino effect of the US sub-prime and credit crisis and hence, Pakistanis too joined ranks with their regional and global brethren in facing and combating the same universal economic concerns.

The report listed the concerns as increased oil and commodity prices, increasing inflation, failing local industrial production, persistent unemployment along with political crisis, leaving consumers not only with a dwindling budget per month, but also dwindling confidence in the economy too.

Pakistan managed a top position when consumers were asked about their concerns for migration. With only UK and Italy in the lead, Pakistan came in third, with 12 per cent of respondents saying immigration was their top concern, the publication stated.

Another major consumer concern of Pakistan was the lack of political stability, which earned Pakistan 4th place after Turkey, Venezuela and Thailand securing the top positions. 11 per cent of Pakistani respondents felt that political stability was their chief concern.

However, this small group (11pc) turned into an astonishing faction (50pc), who felt that political stability will be the main culprit if the economy sees a turndown.

The report further noted that concerns for immigration, political stability and terrorism did not deter the spirit of emerging shopper-tainment culture, as 5 per cent of Pakistani respondents placed Pakistan at the 5th position when asked how they felt about acquiring goods they need over the next year.

Even if the country is not officially in recession and has not recorded two quarters of negative growth, the snowball effect of the credit crunch and rising inflation has taken its toll. And officially or otherwise, they certainly feel like they’re in recession, the report stated.

Pakistani consumer confidence lowest in six months: report

 

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S Korea to share power technology ​

Thursday, June 19, 2008

LAHORE: South Korean ambassador, while admitting that the Koreans have learnt a lot from Pakistan in the agriculture sector in the 60s, has expressed the resolve to contribute to Pakistan’s economy by sharing technology to overcome the acute power shortage.

Korean Ambassador Shin Un was talking to Lahore Chamber of Commerce and Industry President Mohammad Ali Mian at the LCCI on Wednesday.

Terming technological advancement the only way to become a global player in terms of trade and business, the envoy expressed the optimism that Pakistan would gain that advantage with the assistance of Korea. He said the volume of trade between Pakistan and South Korea was bound to increase as both governments were making sector-specific moves to get desired results. He said the non-availability of required trade-related information was the biggest hurdle in the way of South Korean investment in Pakistan and admitted Korean investment in Pakistan was very little when compared with the rest of the world.

Identifying a number of areas for mutual cooperation, the diplomat said there was a need for technology transfer as both countries had a lot to learn from each other. There was a big potential in fruit business and Pakistani business community could avail opportunities in the sector, he pointed out.

Speaking on the occasion, LCCI President Mohammad Ali Mian suggested creation of a win-win situation for both countries. Koreans need to increase their imports of cotton, raw hides & skins, fish, medical apparatus, toys & games, leather products, articles of apparels and textile from Pakistan.

Most of the Korean demand for these commodities is being met from sources other than Pakistan and only a small quantity is being imported from Pakistan. A little attention by the Korean government and businessmen could increase Pakistan’s exports considerably, he added.

S Korea to share power technology

 

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250 megawatts project feasibility study: PPIB reluctant to extend deadline ​

ISLAMABAD (June 19 2008): The Private Power Infrastructure Board (PPIB) has accused China National Machinery Import and Export Corporation (CMC) of exerting undue pressure to seek extension in a feasibility study deadline for 250 mw coal-based project to be set up in Sonda Jherruk (Sindh), sources told Business Recorder.

They said that CMC Vice Chairman Ms Qin Ruijuan had written a letter on May 28 to the PPIB wherein she had reportedly asked for 4-6 months extension in feasibility study, without payment of penalty, but Islamabad is reluctant to extend the deadline.

"Such extensions have been sought by CMC in the past through its representatives," sources said. They said that CMC had neither submitted any formal report nor document, much to the chagrin of PPIB. The CMC had obtained licence from Sindh government for 56.7 square kilometre area at Sonda-Jherruk, in Thatta District, to set up a power plant of 250 mw.

As such, PPIB, as indicated in its letter on May 12, 2008 was not legally bound to entertain or respond to any of the company's correspondence, sources quoted PPIB as saying in its letter recently addressed to Ms Ruijuan. The company was conducting a project feasibility for coal power plant for which it has still to submit to the PPIB for tariff approval.

In another feasibility report, the CMC had estimated the coal mining capacity of deposits at Sonda-Jherruk at around 1.2 million tons per year, which is considered adequate for setting up a power plant. "If the feasibility study is not completed on time, then PPIB, without any financial or legal obligation on its part, may review the contract," sources quoted PPIB Managing Director as saying in the letter. The CMC is a state-owned company with sound technical expertise in producing electricity from coal-based power plants.

Sources said that relations between PPIB and CMC have worsened after a letter written by the company threatening that any decision to terminate the contract by PPIB would harm friendly ties between Pakistan and China. "We would like to advise you to refrain from commenting on issues which are the prerogative of the foreign office and instead concentrate on preparing a feasibility study," sources quoted PPIB as saying in the letter to the company.

Business Recorder [Pakistan's First Financial Daily]

 

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Budget a step towards equitable Pakistan: ACCA ​

Thursday, June 19, 2008

LAHORE: ACCA Pakistan has termed the budget a positive step towards a more equitable Pakistan. It has commended the increase in minimum wage from Rs4,600 to Rs6,000 per month and 15 per cent increase in the amount of pension.

The increase in the exemption of tax of salaried persons, who earn Rs150,000 to Rs180,000 per annum and in the case of women from Rs200,000 to Rs240,000 per annum, will give relief to salaried individuals, as now an individual earning Rs15,000 per month (in the case of women Rs20,000) will be exempted from tax. The introduction of marginal tax relief will not only give relief to salaried individuals, but is also a step towards fairness in the taxation system.

The progressive slab rate offered to small companies whose turnover exceeds Rs250 million is a step to encourage local investment. The application of withholding tax rate of 2 per cent instead of 5 per cent charged to commercial importers respectively will the lower cost of doing business.

Abolishing minimum tax on declared turnover at 0.5 per cent is another step towards fairness of taxation system as compared to the earlier system, where companies incurring losses or with low profits had to pay turnover tax. The introduction of a taxing system to tax builders at Rs50 per sq ft of covered area and developers of open plots at Rs100 per square yard of the plot will widen the tax base.

First Year Allowance (FYA) offer at 90 per cent of the cost of plant, machinery and equipment for industrial setup in rural and underdeveloped areas will result in economic development of down trodden areas.

It is felt that treatment of after tax profit transferred by a branch of foreign company out of Pakistan as dividend and chargeable to tax at 10 per cent will increase tax revenue, but may have a negative effect on foreign direct investment as earlier this profit was sent free of tax. Similarly, the decision to exempt capital markets from capital gains tax will result in the continuity of speculative trading and relieving a profitable sector of economy from taxation.

Tax credit on donation has been reduced from 30 per cent and 15 per cent (for individuals and companies respectively) to 10 per cent.

This proposed amendment will deprive the poor from generous donations previously given by donors.

With regards to Sales Tax zero rating of molasses for the manufacturing of acetic acid, which is used in the textile sector, will lower the cost of production. Similarly exemption of energy saver lamps will result in optimal use of limited energy resources.

The rate of Sales Tax has been proposed to increase from 15 per cent to 16 per cent. This increase will further escalate the inflationary pressures on the economy.

Budget a step towards equitable Pakistan: ACCA

 

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July-April services deficit crosses $5.574 billion ​

ISLAMABAD (June 19 2008): Pakistan services deficit has crossed 5.574 billion dollars during the first 10 months of the current fiscal (July-April), according to Federal Bureau of Statistics. The deficit in trade services during the first 10 months grew by 44.15 per cent as compared to the same period of last year.

The deficit during the first 10 months of last fiscal was only 3.867 billion dollars as compared to 5.574 billion dollars for the same period of this year - July-April 2007-08.

With monthly deficit of 731.764 million dollars in April 2008, Pakistan services exports declined by 7.78 per cent during the month under review over previous month. It declined from 292.815 million dollars in March to 270.028 million dollars in April whereas imports increased from 899.077 million dollars to 1,001.792 million dollars during the same period.

This difference has widened the gap by 20.70 per cent with imports exceeding exports as Pakistan received 270.028 million dollars against payments of 1,001.792 dollars.

According to the FBS, Pakistan has paid Rs 8.234 billion for import of different services during the first 10 months, but received merely 2.668 billion dollars on account of services she rendered to other countries. Pakistan has been paying a lot on transportation, communication, finance and computer services.

The current fiscal has been tough for trade in services, as exports of services have declined from 3.059 billion dollars in 2007-08 to 2.668 billion dollars in 2007-08 whereas import of services have gone up from 6.926 billion dollars to 8.243 billion dollars during the period under review with 19.01 per cent increase.

Further analysis of the statistics showed that there has been a deficit of 85.68 per cent April this fiscal over last April with deficit galloping from 394.100 million dollars to 731.764 million dollars during the same period.

The exports of services have declined from 286.307 million dollars in April 2007 to 270.028 million dollars in April 2008, while imports have gone up from 680 million dollars from last April to one billion dollars this April. The deficit in both the trade and services has been really a big concern for the government with current account being under pressure.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan to help establish Chinese economic zone, says Gilani ​

ISLAMABAD (June 19 2008): Prime Minister Syed Yousuf Raza Gilani on Wednesday said Pakistan will extend all possible help to establish the first-ever Chinese overseas economic zone in the country, which will be yet another landmark in the all-weather friendship between the two countries.

The prime minister was talking to Lu Keng, Chairman of the Haier Group and Haji Koch Muhammad, Chairman Ruba Group who called on him here at his chamber in Parliament House on Wednesday. Chinese Ambassador to Pakistan, Luo Zhao Hui was also present on the occasion.

The Prime Minister said Pakistan welcomes the Haier Ruba joint venture and the government would encourage more joint ventures to promote economic cooperation between the two countries. Joint ventures between the private sectors are the best way to promote trade and investment between our two countries, he added.

The prime minister said that foreign investment is fully protected in Pakistan and all economic sectors are open to Foreign Direct Investment (FDI). Pakistan makes no distinction between local and foreign investors, as 100 percent foreign equity, remittance of royalty, profits and dividends is allowed under Pakistani laws, he said.

The Chairman of the Haier Group informed the Prime Minister that Chinese entrepreneurs are keen to invest in Pakistan and the establishment of the Special Economic Zone (SEZ) would go a long way in facilitating Chinese investment in Pakistan.

He said that the Haier Ruba has already brought in initial investment of $35 million. He also gave an overview of the SEZ to the Prime Minister, which he said would comprise industrial park, science and Technology Park, supply chain industry, skill development centre and research and development centre.

It may be mentioned that the Special Economic Zone is being established under the Free Trade Agreement (FTA) between Pakistan and China and all goods manufactured in this zone have tariff-free entry into Chinese market which would boost the country's exports. The meeting was also attended by Ms Hina Rabbani Khar, Special Assistant to PM, Principal Secretary to PM, Secretary Board of Investment and Secretary Industries.

Business Recorder [Pakistan's First Financial Daily]

 

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Pak-Qatar launches individual family Takaful products ​

KARACHI: Pak-Qatar Family Takaful Limited has launched its first individual family Takaful products in the country, starting with their Share & Care – Savings Takaful and ABC – Education Takaful plans.

These plans are the first of their kind to be launched in Pakistan, this was announced by CEO of Pak-Qatar Family Takaful Limited P. Ahmed at a Press Conference on Thursday.

Share & Care – Savings Takaful is an ideal plan for families who would like to save smaller amounts of money and accumulate them into large investments for particular future needs like buying a house or providing financial support in old age. Together with the benefit of saving, this plan also offers a financial protection to the family, if their bread-winner should be unable to provide for them in the future due to unfortunate events.

The ABC – Education Takaful Plan was particularly designed for families who want to ensure the continuity of the child’s ongoing education even if the sponsor parent wouldn’t be around. It helps to multiply savings for the ever-increasing educational expenses in future. On completion of the membership-term, the investment value of the plan will be paid either as a lump sum or in regular installments to be utilized for the payment of college/university fee.

These two plans are unique and competitive as they are affordable for the general public on one hand but don’t compromise on ethical and religious values on the other. By saving just Rs 1,250 per month one can become the member of Pak-Qatar Waqf pool and avail various benefits.

Daily Times - Leading News Resource of Pakistan

 

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Forex reserves decline to $10.9 billion ​

KARACHI: The foreign exchange reserves of the country fell by $44 million to $10.909 billion during the week ended on June 14, reflecting the widening current account and trade deficits. The foreign reserves held by the State Bank stood at $8.267 billion while those with other banks stood at $2.642 billion. An extraordinarily large trade deficit, which created a huge current account deficit, has also weakened the rupee from Rs 60 against a dollar at the beginning of the current year to around Rs 68 now.

Daily Times - Leading News Resource of Pakistan

 

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NWFP takes lead in placing development budget on Pifra system ​

PESHAWAR (June 19 2008): The NWFP creates history while presenting the development budget for the financial year 2008-09 on the new format prescribed by the Auditor General under Project to Improve Financial Reporting and Auditing (Pifra) system. It is worth mentioning that the current budget is already being prepared on the Pifra based systems.

The official sources here told APP that Pifra is a major development project to reform the financial management systems in the federal and provincial governments. NWFP had volunteered to be the pilot province for implementation of Pifra reforms, he maintained.

The on line system based developmental budget will facilitate the Accountant General's organisation in maintaining proper and detailed accounting records of all the development projects executed by various government agencies.

It will also enable the provincial and district governments to trace and trail the expenditure on development projects and programmes. It is expected to provide transparency in expenditure, accountability of the spending agencies and accurate and timely reporting. It has been learnt that the project teams have been striving hard for the past four years in persuading the authorities in the Finance Department to prepare the development budget on the new format.

Much to the resistance of some low level officials of the Finance Department, this year the Pifra project succeeded in persuading the high ups in the Planning and Development Department and Finance Department to prepare the budget on new format and systems.

The other three provinces have yet to implement province-wide online Integrated Financial Management Information System (Ifmis), the source concluded. Pifra is a joint venture of the Government and World Bank and its executing agencies are Department of Auditor General of Pakistan, Controller General of Accounts, Federal Finance Division and provincial finance departments.

The prime objectives of the Pifra are to establish effective financial management system consistent with international best practices, to strengthen internal controls and to modernise government audit procedures and adopt internationally accepted auditing standards.

The Pifra components included Financial Accounting and Budgeting System (Fabs), capacity building of the offices of the Auditor General, Controller General of Accounts and project management. The first pilot site of Pifra was established in District Accounts Office Abbotabad in July 2003. Followed by second pilot site at Accountant General Office NWFP October 2003, AGPR sub office Peshawar January 2004, District Accounts Office Swat April 2004, Finance Department NWFP July 2004 and Agency Accounts Office Mohmand Agency October 2004.

The Pifra system has now been fully operative in all the 24 districts of the frontier province giving online data about the payroll of all federal, provincial and district governments' employees, disbursement of payroll and GPF deductions, balance sheets and generation of pension of payment order.

Business Recorder [Pakistan's First Financial Daily]

 

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Strong economic fundamentals have made private sector engine of growth: President ​

RAWALPINDI (June 19 2008): President Pervez Musharraf said on Wednesday that the strong economic fundamentals of country "have created an enabling environment" for the private sector to become the engine of growth and as a result of this as well as due to its liberal and investment-friendly policies Pakistan has become one of the attractive destinations for investment.

The President made these remarks while talking to Jean Jacques Gauthier, Head of Corporate Finance and Member of Central Executive Committee of Lafarge, the world's largest cement and building materials company based in France, who called on him here.

Gauthier said that due to the stewardship of President Pervez Musharraf Pakistan has become an investment-friendly country and they were investing in Pakistan because of the economic buildup in the country which they have witnessed in the last seven years.

He said that the Lafarge group has invested in the cement sector by setting up cement factories and has also purchased a sick unit and transformed it into a profit earning entity. Gauthier said that the construction industry has enormous potential in Pakistan as a result of the economic boom, which the country has achieved during the last seven years.

He said that several new markets have emerged in Pakistan and the demand of the country has risen from 11 million tons to 37 million tons. He said that he was delighted to be here and looked forward to new ventures and ideas in the country.

The President emphasised that Pakistan, owing its geo-strategic location, was the hub between Middle East, Iran, Afghanistan, Central Asia and South Asia. Industrial and manufacturing units would have outstanding and excellent opportunities to not only benefit from Pakistan's requirements but would also be able to supply their products throughout Pakistan and in the region, he added.

The President said that Pakistan itself is a large market as it has ambitious public sector development plans, which include dams, hydro-power projects, canals, highways and construction activity in the private sector.

Business Recorder [Pakistan's First Financial Daily]