Pakistan Economy - News & Updates - Archive

[Neo]

Pakistani rupee hits record low, crosses 73 per dollar​

KARACHI: The Pakistani rupee was 2.9 percent weaker at a record low of 73.04 to the dollar on Tuesday because of worries about inflation, widening budget and current account deficits and security, dealers said. The rupee had closed at 71.00/05 on Monday.

The currency is also under pressure from a rise in demand for dollars from importers, particularly for oil payments. “The whole macroeconomic picture is very bleak, with inflation at a three-decade high, widening twin deficits and depleting reserves,” one currency dealer said. Dealers said that recent bombings, including a weekend suicide attack in the capital and six small blasts in Karachi on Monday, compounded the worries.

The rupee is now well below levels seen in late May, when a precipitous fall prompted the central bank to take steps, including raising the discount rate to 12 percent from 10.5 percent, to stabilise the currency and dampen speculation.

The rupee has fallen over 18 percent against the dollar this year as annual inflation accelerated to a three-decade high of 19.27 percent in May and fiscal and current account deficits have widened.

Traders said intervention by the central bank, which closely shepherds the exchange rate, would stabilise the rupee in the short run but the State Bank’s reserves were running low because of the weight of demand for dollars from importers.

According to official figures, $1.42 billion in foreign reserves was used to cover the oil import bill in May. The monthly average between February and May was $1.27 billion. With rising oil prices, the import bill was expected to increase and, with foreign reserves of $11.3 billion, analysts said the outlook was bleak.

They said reserves were sufficient to cover imports for nearly three months but, according to one widely used benchmark, a country should have enough cover for six months. Traders said the central bank would probably have to raise interest rates in a policy review later this month to try to bring prices under control. In a presentation to President Pervez Musharraf on Saturday, the governor of the State Bank said rising international fuel and commodity prices had considerably increased the pressure on the balance of payments, fiscal accounts and inflation.

In what analysts said could be a hint of further tightening, Governor Shamshad Akhtar said a number of developing and developed countries were pursuing tight monetary policies to contain inflation and to mitigate its impact on long-term growth.

Analysts fear political infighting is distracting government attention from restoring economic stability, although the budget announced last month set targets to bring down an unsustainable fiscal deficit, and the government is seeking loans from friendly governments and multilateral lenders. reuters

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Pakistan ranked lowest in shrimp hatching in the region​

KARACHI: Despite conducive environment, adequate climate and availability of vast cultivable area for shrimp hatchery, Pakistan is currently ranked lowest compared to other countries of the region.

The speakers at the inauguration of ‘Advanced Training Course on Shrimp Hatchery Management’ arranged by Sindh Fisheries Department in collaboration with Pakistan Fisheries Research Institute Tuesday attributed this owing to lack of commitment and political will by the successive governments.

Sindh Minister for Fisheries, Zahid Ali Bhugari, admitted that this sector was grossly overlooked by successive past governments failing to realize potential of the shrimp farming towards strengthening of the national economy.

He blamed private sector for its failure to come forward and play its due role in promoting shrimp hatchery in the country. Present government has resolved to promote aqua culture in the province and in this regard a summary regarding allocation of 20,000 hectares of land for promotion of fisheries sector was also sent to the Sindh Chief Minister for his approval.

According to him, he had recently attended a conference on Tuna Fish in Thailand where he was amazed to see its overwhelming demand among the participants.

“This kind if fish is abundantly found in the country and compared to local price of Rs 60 to Rs 70 per kg, it is sold in US at stunning high rate of $41 per kg indicating a vast opportunity for the country to earn precious foreign exchange through its export” he added.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Telecom firm, three banks join hands to launch mobile commerce​

KARACHI: Mobilink launched ‘Mobilink Genie’ on Tuesday in partnership with Inov8, CitiBank, KASB, Atlas Bank and Adamjee Insurance heralding the onset of mobile commerce in Pakistan.

Mobilink Genie is a mobile payment solution, enabling Mobilink customers to use their mobile phones to buy a combination of products of their choice and pay for a mix of utility and general services. The program is in compliance with regulatory guidelines and safe for transactions, said a press release issued here.

The Mobilink Genie includes instant service on all GPRS/Java supporting hand-held devices covering payment of utility bills including electricity, gas, telephone; payment of Indigo bill & loading or recharging any Jazz account.

In due course in time, options like booking airline tickets, confirming and paying for flights, groceries and home shopping, paying fees of schools, universities, clubs and retail payments of restaurants and fuel will also be available on Mobilink Genie.

With Mobilink, 92% un-banked Pakistani population can have the privilege of accessing financial services from their mobile phones.

Hasnain Sheikh, the CEO of Inov8, said, “Everything from multiple bill/utility payments, credit card, mobile bill & insurance premium payments, prepaid airtime top-up, selling of new micro insurance products and a number of other services are available from your Mobilink phone, anytime and anywhere.”

Naeem Siddiqui, the head of Cards Business Head of CitiBank, said, “Mobilink Genie brings mobile-commerce and banking services right to the consumer’s doorstep and provides integrated services such as utility bill payments via customer’s credit card.”

Muneer Kamal, the CEO of KASB, said, “Genie represents the beginning of a new era of mobile commerce. Genie compliments both Mobilink and the member banks, while providing service excellence to both our customers.”

Ghufran Atta Khan, the head of Retail & Consumer Banking of Atlas Bank, said, “Our partnership with Mobilink for the launch of Genie, the next generation payments solution, will deliver an unparalleled, secure and convenient service that is the first step towards this commitment.”

Yahya Hamid, the CIO and head of Product Development at Adamjee Insurance, said, “Now all customers of Mobilink can access our range of new ... Adamjee Catch products and get insured instantly.”

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Pakistan can earn up to $500m by promoting Sikh tourism​

* Indian editor says Sikhs should be permitted to land directly at Lahore Airport​

LAHORE: Pakistan can earn up to $500 million per year by promoting Sikh tourism and allowing tourists to land directly at the Lahore airport, editor of daily ‘Aj Di Awaaz’ and monthly ‘Punjab Times’ Baljit Singh Brar told Daily Times on Tuesday.

Brar is in Pakistan to visit Sikh religious sites. He pointed out the merits and demerits of bilateral relations between Pakistan and India and gave several suggestions.

Lahore Airport: Brar said that Sikh tourists from across the world could boost Pakistan’s economy if they were given permission to land directly at the Lahore airport. He said the Lahore airport was better compared to the Amritsar airport. Brar said that it would be beneficial to Sikh traders, who otherwise had to land at Delhi airport, which is quite a distance from Amritsar. He added that less than 20,000 Sikh pilgrims visited Pakistan each year to participate in four major religious events.

Brar said that if the Lahore airport were opened for Sikhs, about half a million Sikhs would visit Pakistan every year. He said the Pakistan government was considering increasing the number of Sikh events in a year from four to nine. Brar said the decision would enable thousands of Sikhs to visit Pakistan every month.

Visa treaty: Brar said that Sikh tourism should be promoted in Pakistan. He said the Indo-Pak visa treaty, which restricts the issuance of tourist visas for travel between the countries, should be amended. He added that tourist visas should be given to applicants on a war footing basis in order to promote Sikh tourism in Pakistan. Brar added that the Pakistani embassy in India should issue more visas to pilgrims.

Brar said that exchange of delegations between both countries have decreased because Pakistan and India are not sincere in bringing Lahore and Amritsar closer. He said that malicious elements existed in both governments, who did not want to see peaceful relations between Delhi and Islamabad.

Brar rejected the Indian impression that if a citizen would visit Pakistan they would be refused visas for Western countries. Brar stressed that Sikh pilgrims should be allowed to come through the Wagha border. He said that only one joint checkpost should be set up at Wagha in order to facilitate visitors. He added that intelligence agencies from both sides should stop questioning pilgrims. Brar said that journalists should be allowed to move freely across the border. He added that they should not be bothered by intelligence agencies during their visit.

Brar compared the Pakistan Sikh Gurdwara Parbandhak Committee (PSGPC) and Shiromani Gurdwara Parbandhak Committee (SGPC) and praised the PSGPC. He said that the SGPC should take suggestions from the PSGPC in conducting its religious affairs. He said the PSGPC should set up a counter at the Pakistan embassy in Delhi to accommodate Sikh pilgrims.

Brar said that Gurdwara Kartarpur at Narowal was not fit and should be rehabilitated. He said that a lot of resources and manpower were needed for the restoration work.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

4,000 houses ready for Balakot quake victims​

ISLAMABAD: Saudi Public Assistance for Pakistan Earthquake Victims (SPAPEV), a Saudi relief organisation, has completed 4,000 houses at the cost of $18.5 million to resettle the Balakot earthquake affected people.

Addressing a ceremony organised here to celebrate the completion of housing project, SPAPEV Regional Director Dr Khalid M Al-Othmani said keys of most of the houses had been handed over to the displaced families and the remaining would be handed over shortly.

He told media that after the devastating quake of October 8, 2005, international welfare organisations, government agencies and Pakistan Army rushed to the quake-ravaged areas and started rescue and relief operation on emergency basis. Othmani said a huge amount was required to revive the destroyed infrastructure in quake-stricken areas.

He said SPAVEC started working in quake-hit areas under the directives of Saudi King Abdullah Bin Abdul Aziz, supervision of Prince Naif Bin Abdul Aziz Al-Saud, Saudi Interior Minister and guidance of Dr Saed Al Harithy, advisor to interior minister who is also the SPAPEV chairman.

He said besides rescue and relief operation, SPAPEV started consultation with ERRA for rebuilding the areas affected by the earthquake. According to the talks with ERRA, SPAPEV decided to first rebuild the most affected areas of Pakistan, he added. Othmani said a project of $18.5 million for the construction of 4,000 houses comprising two bedrooms, kitchen, toilets, and a veranda was started in Balakot area. He said the project had been completed to accommodate 4,000 families in the houses.

Addressing the ceremony, the Saudi Arabia ambassador appreciated the tireless efforts of SPAPEV to complete the projects of assistance to the victims of the earthquake.

He reassured that the government and the people of Saudi Arabia would help in completing further relief projects in the shortest possible time.

Later, NWFP Governor Owais Ahmed Ghani thanked the Saudi Arabia and particularly SPAPEV, for their help.

Gen Farooq Ahmed, ERRA Deputy Chairman Lt General Sajjad Akram and SPAPEV Secretary General Fahad Al-Mubarak were also present on this occasion.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Pakistan fails to exploit CDM potential​

ISLAMABAD: Pakistan has so far failed to exploit the huge Clean Development Mechanism (CDM) potential mainly due to bureaucratic inefficiency to mobilise investment in this sector, sources said.

“Initially, the country can earn carbon credits worth $ 100 million per year that could be gradually increased to $ 1 billion per year in the coming years, but so far this potential remains untapped,” they said.

CDM is an arrangement under the Kyoto Protocol allowing industrialised countries with a greenhouse gas reduction commitment to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries.

The investment in CDM reduces CO2 emission, which is converted into carbon credits through a pre-determined formula. The carbon credits are saleable commodity and are mostly bought by rich western nations. Already the carbon credit market has become a multi billion-dollar market. The sources said after signing the Kyoto Protocol in 2005 the government immediately set up CDM Cell in the Ministry of Environment to promote investment in the CDM sector but it failed to generate momentum for investment.

“The greatest potential is in the renewable energy sector, especially wind and bio gas followed by agriculture and textile, but we are not targeting these sectors for CDM technology,” they said.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Naik orders audit of $350m AJP​

ISLAMABAD: Federal Law Minister Farooq H Naik on Tuesday ordered an audit of the $350 million Access to Justice Programme (AJP) and the freezing of a $26 million balanced amount, sources said.

The balanced amount is what remained after expenses were incurred on the construction of court buildings in different parts of the country.

The sources said the audit was ordered following reports of misuse of AJP funds. The AJP was launched by the government in December 2001with the assistance of the Asian Development Bank (ADB). The Ministry of Law was the executing agency for the programme.

The AJP aimed at contributing to poverty alleviation through improved rule of law and transparent, legitimate and accountable governance. Dealing with a large number of federal and provincial institutions, it was a complex programme, designed to implement at least 64 key reforms supported by additional institutional and complementary actions. AJP’s core ‘rationale’ was vulnerability, which means, in effect, that providing quality justice to the vulnerable. masood rehman

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Plan to air-link Mirpur with rest of the world​

MIRPUR (July 09 2008): AJK government is contemplating to air-link Azad Jammu Kashmir's fast expanding model city of Mirpur with rest of the world through the establishment of an international airport in order to provide direct air travelling facilities to the people of Mirpur, official sources said.

Prime Minister Sardar Attique-led AJK government has already decided to establish an airline of Azad Jammu and Kashmir with the name of Kashmir Airline besides the emergence of a full-fledge international airport in Mirpur with the major involvement of the private investment, the sources told APP here Tuesday.

The proposed Mirpur International airport would provide direct air travelling facilities to the overseas Kashmiris, including UK-based settlers hailing from the area, to their ancestral town of Mirpur. A bright potential is already available in the area to materialise the plan, which would indeed, prove to be the strong source of the local economy of AJK, the sources added.

Highlighting various other development projects proposed to be launched in Mirpur under a phased programme during the current fiscal year 2008-09, the sources said that a mega Industrial zone was also being established over an area of 15,000 kanals of land in Mirpur for the speedy industrialisation of AJK. It would also help to encourage the economy of self-reliance in the area.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Ufone to spend $200 million on network expansion this year​

ISLAMABAD (July 09 2008): Ufone would spend 200 million dollars on its network expansion to ensure quality and affordable services to its around 17 million subscribers during the current financial year.

This nation-wide expansion was an ongoing process and the company would continue its practice of investing more to facilitate subscribers, said Ufone President and Chief Executive Officer Abdul Aziz while talking to a private television channel.

He said the expansion programme was being carried out technically in a way that the quality of network was not disturbed. He said "the quality of service is Ufone's motto and it would never compromise on it for which we were continuously conducting surveys to get feed back from our customers. I himself monitors the process of surveys to ensure better services."

He said the company also planned to attract more than six million new subscribers during this financial year. This programme also includes upgrading of existing infrastructure with strong focus on coverage and high network quality of service, massive expansion of cell cites nation-wide and enhancement of existing GPRS capacity and service.

About some complaints on quality of service in some areas including Islamabad, Ufone possesses a huge network and if there were any complaints, company's dedicated staff responds promptly to address the problem. "I think currently there was not any congestion in the network anywhere in the country," he added. Answering a question on new telecom policy, he said the policy formed in 2004 was a good and comprehensive document but we would propose some suggestions in the new policy, keeping in view our telecom sector experience.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Huawei to deploy WiMAX network in Pakistan​

ISLAMABAD (July 07 2008): China's Huawei Technologies said on Wednesday it has been selected by Mobilink, the largest GSM operator in Pakistan and a subsidiary of Orascom Telecom, to deploy a commercial WiMAX 16e network.

Huawei said the network will cover central business districts and hot spots in Islamabad, Karachi, Sialkot, Lahore, Faisalabad and Rawalpindi, CNBC reported. Under the terms of the contract, Huawei will provide Mobilink with a WiMAX solution to help the company meet Pakistan's increasing broadband needs.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Private sector allowed to import wheat for re-export of atta to Kabul​

ISLAMABAD (July 09 2008): The government has allowed the private sector to import wheat, convert it into flour, and re-export to Afghanistan on international prices, official sources told Business Recorder. This decision was taken by the Economic Co-ordination Committee (ECC) of the Cabinet in its recent meeting on a proposal of the Ministry of Food, Agriculture and Livestock (Minfal).

Sources said that some private sector importers had approached Minfal suggesting that they be allowed to import wheat on their own, convert it into flour, and re-export it to Afghanistan.

They said that Minfal backed the importers' proposal, in principle, with comments that if the government allowed them they would have to develop a foolproof mechanism to ensure re-export of imported wheat flour. The ECC approved the proposal, with the condition that the private sector would have to re-export flour to Afghanistan on international prices, and not on subsidised rates.

The Federal Board of Revenue (FBR) was already working with Commerce Ministry to review Afghan Transit Trade Agreement (ATTA) as this mechanism was said to be hurting local industry. Pakistan will be exporting 50,000 tons wheat to Afghanistan on subsidised rates, despite the fact that the two countries are not enjoying good diplomatic relations.

This deal would be at official level between Islamabad and Kabul as the former has already prohibited flour export to Afghanistan by private sector on the recommendations of the Federal Food Committee (FFC). However, wheat was still being smuggled to Afghanistan through different channels, which were not properly monitored by the law enforcing agencies. Sources said that the two countries have re-invented the mechanism to facilitate export to Afghanistan after high level contacts.

They said that the Ministry of Foreign Affairs had sought bids from different private sector parties to dispatch 50,000 tons wheat to Kabul from the depots of Passco situated in Bahawalnagar and Hafizabad (Gujranwala).

They said that Commerce Ministry had directed the Trading Corporation of Pakistan (TCP) to re-write new terms and conditions for flour export to Kabul, adding that efforts should be made that officials of any country, having knowledge of the export indents, should not misuse the mechanism for personal gains. Officials believe that the possibility of manoeuvring by the negotiating with officials of both countries could not be ruled out, but maximum efforts have been made to ensure transparency in the deals.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

This opportunity must not be wasted​

By Faris Islam

ARTICLE (July 09 2008): With the tribal areas possibly full of resources, and our own economy starting to slow down, providing a secure climate in these mountainous areas could improve the country's investment prospects. As negotiations only give militants more time to rearm, the action must be continued if the government hopes to bring peace and prosperity to the nation.

This will buy the government the time it needs to develop the areas and use public diplomacy to win over the hearts and minds of the people. Additionally, mega-projects in the tribal areas - funded by a combination of foreign governments, our own government, NGOs and the private sector could provide the revitalisation needed to keep the Pakistani economy at large stable during this economic slowdown.

Though Reconstruction Opportunity Zones are already in the offing, time is of the essence in the race to build a viable economy in the region, before militants can build a formidable armoury.

The government must expedite work to explore the potential hydrocarbon reserves within the tribal areas but also improve the lives of the people tangibly. Experts at the University of Peshawar are already hopeful that FATA has huge hydrocarbon reserves and various companies including OGDCL, PPL and ENI Limited have already indicated their possible interest in investing in the region. This could be the fountain of wealth that drenches the tribal areas with investment and opportunities.

In addition to these long-term steps, quick results could also show the people of the tribal areas that the government is serious about helping them now. Building roads and houses, electrifying villages and providing micro-financing in the area will all have realistic effects on the lives of the people, and could also provide the engine for increased growth in our construction, electric and financial industries.

As foreign nations are at least as eager to give economic assistance to the tribal areas as they have been to the rest of the country, these soft loans and grants could contribute more towards efforts against terrorism and extremism than any missile strike.

With the enormous potential the region offers for so many industries, this opportunity is one that must not be wasted - with foreign government willing to donate more and more money, with industries eager to continue business and with a region desperate for development.

The final impetus lies in the simple logic of having the people reject terrorism and deal with it on their own. When the Pakistani government is no longer the force blocking roads and destroying houses, but rather the people re-carpeting the streets and providing housing, then the war on terror will be won.

While allowing time for the much-vaunted development of these areas to take place, the government must also refine and communicate its alternate vision to the people.

The people in the tribal areas can be the most effective tool against terrorism if the government can manage to harness them to work with the government and not against them. To do this, Pakistan must provide the people of FATA a vision of what we hope we can all become - a tolerant, developed and peaceful society - and allow this to compete with the Taliban's view of a society. The writer is as intern at Business Recorder and is currently studying Political Science and History at Tufts University in US.

Business Recorder [Pakistan's First Financial Daily]

 

[Skywalker]

Mounting trade deficit touches $20.7 billion




By Mubarak Zeb Khan

ISLAMABAD, July 9: With imports not keeping pace with export growth, the country’s trade deficit ballooned to an unprecedented $20.745 billion during the outgoing fiscal year (2007-08) — up by 52.95 per cent from $13.563 billion in the previous year.

High oil import costs continue to increase the deficit, and rising oil prices are making things tough for the government.

The trade deficit climbed to 12.3 per cent of GDP during 2007-08 from 9.4 per cent the previous year. In June, the import bill amounted to $4.025 billion and exports reached $2.053 billion, showing a deficit of $1.971 million.

After missing the target for two years running, exports touched an unexpected $19.22 billion during 2007-08, up by 13.23 per cent from $16.976 billion in the previous year. The target for the outgoing fiscal year was $19.2 billion, which was achieved on the back of rupee depreciation and unexpected growth in exports of non-textile products.

Figures released here on Wednesday by the Federal Bureau of Statistics (FBS) showed that the import bill jumped to an all-time high of $39.968 billion during 2007-08 against $30.539 billion a year earlier --- an increase of 30.87 per cent. For the first time, the government had not set any target for imports during 2007-08.

Analysts said the unprecedented increase in trade deficit was due to a rise in import prices of eight major commodities, inflating the import bill by $4.5 billion.

The import bill of petroleum products swelled by $1.623 billion, petroleum crude $1.150 billion, fertiliser $542.4 million, palm oil $480.8 million, plastic material $117.1 million, medicinal products $76 million, iron and steel $49.5 million and soybean oil by $59.9 million.

On the import of wheat alone, the country spent $800 million to overcome shortage.

Official statistics show the government spent more than Rs40 billion on importing cotton because a pest attack on the crop resulted in lower yields.

The oil import bill for the outgoing financial year is estimated to have swelled to $12 billion, from $7 billion in the previous year -- an increase of 71.4 per cent.

However, the import of industrial raw materials and machinery declined during 2007-08 which also saw industrial output declining by four per cent.

Textile exports have witnessed a negative growth over the past few months and it may not cross even the $10 billion mark this year. The performance of the textile industry was far from satisfactory during the outgoing fiscal year.

An official said that achievement of the export target was the only bright spot, mainly because of depreciation of the rupee and diversification of exports through trade diplomacy of the previous government.

Former commerce minister Humayun Akhtar Khan criticised the previous government’s policy for not depreciating the overvalued rupee against the dollar which, according to him, had affected exports.

He said the last government had focussed on increase in imports to generate maximum revenue and reduce debt-to-GDP ratio. This points to the fact that a natural diversification of exports is now under way -- moving away from conventional textile products to new items, including food and petroleum products. However, the pace of diversification has been slow.

Analysts say that the current food price hike at the international level has provided an opportunity to Pakistani farmers to bring more areas under cultivation.

 

[Neo]

Big apparel export houses close, leaving thousands jobless ​

Thursday, July 10, 2008

LAHORE: Some renowned export companies in the apparel sector have closed down in recent months, rendering about 50,000 skilled workers jobless while the survival of remaining manufacturers hinges on continuation of research and development support.

The News has found that some big names like Needle Point, Style Textiles, Navina, Highnoon, Angora, Klaas, Ammar, Sarah and one unit of Irfan Textiles have been forced to shut down their operations. Each of these employed a minimum of 3,000 workers. In addition, scores of smaller units have also been closed down due to their inability to match the prices offered by exporters in competing economies.

Apparel exporters point out that the closure of so many big units came when the government was providing 6 per cent R&D grant. They say credit goes to surviving units which have accepted the challenge of competing suppliers as they have achieved maximum efficiency to remain in the business.

They say it was in fact the R&D support that helped the surviving exporters to cover their losses and achieve 3 to 4 per cent profit. However, these units would also succumb to the pressure without the R&D facility. Any reduction in the support would be equally devastating for them, they point out.

What puzzles the apparel exporters is that the National Assembly has approved Rs20 billion for this purpose in the Finance Bill. This is 15 per cent higher than the R&D grant provided by the government to the textile sector in 2007-08. The exporters are surprised over the reluctance of the government to announce a clear R&D policy. They are equally bewildered by the government’s apparent tilt towards low-value fabric and printed fabric exporters.

One leading knitwear exporter, commenting on the situation, says he has five knitwear units established at a cost of Rs500 million, employing over 5,000 workers. He also owns a spinning mill established at a cost of Rs750 million but it employees only 500 workers. He says spinning and fabric are capital-intensive industries which need few workers and if a medium-sized apparel industry is closed down 2,000 to 3,000 workers would lose their jobs.

The apparel sector, he adds, has no problem if the government wants to reward any other sector with higher R&D facility. However, this should not be done at the expense of apparel exporters who are demanding continuation of the facility as granted to them in 2004-05.

According to statistics available with the Ministry of Textile, the government provided Rs5.754 billion R&D grant to the garment sector in 2004-05. Home textile sector was included in the R&D programme in 2006-07 when it was provided Rs4.618 billion while the garment industry got Rs9.305 billion. Cumulative support provided to the textile sector during the first nine months of the last fiscal amounted to Rs12.806 billion. Out of these, the garment sector got Rs6.774 billion and home textile Rs6.032 billion.

If the support for next three months is calculated on the basis of the average of first nine months, the entire support for 2007-08 would come to Rs17.074 billion.

The amount allocated for the R&D support this year is Rs20 billion. Textile experts say textile exports would grow by 3 per cent this year and the balance amount could be used to reward the companies with higher exports.

Big apparel export houses close, leaving thousands jobless

 

[Neo]

Finance minister seeks bankers' inputs on economy ​

Thursday, July 10, 2008

KARACHI: Federal Finance Minister Naveed Qamar held an interactive session with presidents and chief executives of different commercial banks and sought their inputs on the overall economic condition of the country here on Wednesday.

Chairman Pakistan Banks Association (PBA) Aftab Manzoor told The News that it was a general meeting in which the bankers updated the minister about details of the pending taxation issue of banks, problems in recovery of consumer financing, besides steps taken by the Competition Commission of Pakistan (CCP) in which it penalised seven banks and Pakistan Banks Association (PBA) for their involvement in anti-competition practices.

He said that the bankers also apprised the minister of their apprehension with respect to recent off beam rumours regarding inclusion of the names of some bankers in the Exit Control List (ECL). The bankers emphasised that a mechanism should be evolved in consultation with the State Bank of Pakistan (SBP), the major regulator of banks, so that the bankers could work in a conducive environment.

He said that the finance minister asked bankers to support the current economic policies of the government and also sought their cooperation for SBP’s current move in stabilising forex trade in the country. The bankers assured their full support for current measures taken by the SBP in order to cease the freefall of the rupee against the dollar. The meeting was of the unanimous view that countries like Pakistan could not afford import of mobile phones and luxury cars worth billions of dollars every year, particularly in the current economic conditions.

Finance minister seeks bankers' inputs on economy