Pakistan Economy - News & Updates - Archive

[Spring Onion]

Pakistan does not need FY08/09 loan - IMF official

Monetary Fund director for the Middle East and Central Asia, Mohsin Khan, is seen... Sun, Aug 17 11:41 AM

By Koh Gui Qing

KARACHI (Reuters) - Pakistan does not need to turn to the International Monetary Fund (IMF) for money in the next 10 months if the government cuts spending and gets other sources of funding to offset falling reserves, a senior IMF official said.

Mohsin Khan, IMF's director for the Middle East and Central Asia, said Pakistan had not asked the IMF for loans.

He said Pakistan would not need an IMF loan in the fiscal year to June if the government abolishes all fuel subsidies by December as planned, and stops borrowing from the central bank to pay for its budget deficit.

High oil prices have depleted Pakistan's foreign exchange reserves to levels worth less than three months of imports, sparking alarm among investors that Pakistan may need to take up loans from the IMF to pay for imports.

Khan said the government needs to stick to its privatisation plans to raise money, secure over $1 billion worth of loans from the World Bank and the Asian Development Bank, and get Saudi Arabia to defer an estimated $5.9 billion worth of oil payments.

"If things fall right for them in all these things that they are planning to do, I don't believe there will be any need for them to come to the IMF," Khan, who was in Pakistan this week, said in a phone interview.

"Unless there is a total collapse of foreign direct investments, they can ride this out," he said.

Pakistan, a repeat customer of the IMF, last took an IMF loan worth $1.3 billion in 2001 to help fight poverty and offset the effects of a regional war on the economy. Backing for the loan was helped by Pakistan's support for the U.S. war on terrorism.

Pakistan's economy is going through its toughest period after six years of healthy growth. It is wrestling widening trade and fiscal deficits, soaring inflation, and dwindling investor confidence battered by the country's political tensions.

There is mounting speculation President Pervez Musharraf would quit after the coalition government said last week it planned to impeach him.

The political turmoil has unnerved investors -- Pakistani stocks are near two-year lows, while the Pakistan rupee has lost nearly a quarter of its value this year.



ACCUMULATE RESERVES

Khan, who is from Pakistan and has been at the IMF for 36 years, said it is the responsibility of the State Bank of Pakistan (SBP), Pakistan's central bank, to boost reserves.

"You must build up your reserves back to where they were a year ago. Get back to that level, at the very least, and aim higher," he said.

Khan said the central bank should ensure any future loans Pakistan receives will add to reserves, and that it should ask commercial banks to raise deposit rates by at least 2 percent to attract more money from investors.

However, he said the central bank does not need to raise its key discount rate from the current 13 percent because markets will ensure that the yields for treasury bills sold by the SBP are above the discount rate.

Pakistan's foreign exchange reserves fell $797 million in July, the first month of fiscal year 2008/09. They have plummeted 40 percent from a record $16.5 billion in October last year.

Khan said the central bank was doing "exactly the right thing" by not selling dollars from its reserves to support the falling rupee.

"If the State Bank starts to lose reserves by defending a currency that is not defensible, then it will be ridiculous. They will really be shooting themselves in the foot for that," he said.

"Don't fight the market. So many countries have run into serious problems by trying to defend the exchange rate when the market is saying that's not the exchange rate we like."


Pakistan does not need FY08/09 loan - IMF official - Yahoo! India News

 

[Neo]

Body formed to evaluate Thar coal reserves​

KARACHI (August 18 2008): Sindh Chief Minister Syed Qaim Ali Shah on Sunday constituted a four-member committee for evaluation of reserves of coal in Thar area. He formed the body at the first meeting of the Sindh Coal and Energy Board (SCEB), chaired by him at the Chief Minister House here.

Federal Secretary for Water and Power, Muhammad Ismail Qureshi, member SCEB, Syed Asad Ali Shah, Managing Director SCEB, Aslam Sanjrani and Secretary Mines Sindh, Younis Dagha will be members of the recently formed body.

Besides Sindh CM, who is also the Chairman of Sindh Coal and Energy Board, the Federal Minister for Water and Power and Vice-Chairman Thar Coal Energy Board, Raja Pervez Ashraf and other members of the Board were also present.

After the meeting, Syed Qaim Ali Shah briefed the media about the details of the meeting. He said after the Washington Conference the interests of foreign investors have developed in the project for electricity generation from Thar Coal, which, he added, the meeting reviewed.

He said that another conference about investment is going to be held at Hong Kong for which the invitation has also been received. Syed Qaim Ali Shah said there is no law and order problem in Sindh while electricity and other infrastructure also exist. Air travelling facilities will also be provided at Thar and the work is going to start on the project without any delay, he added.

He said Jahangir Siddiqi & Company, Engro Group, Al-Tawariqi Group of Saudi Arabia, Lucky Group, Giga Group of UAE and Metal Investment Company of UAE have showed interests in carrying out evaluation of Thar coal.

Later, talking to media, the Federal Minister for Water and Power, Raja Pervez Ashraf, said total 16,000 mega watt electricity will be needed in Pakistan in the year 2016.

He said an emergency long-term and short-term policy has been devised to fulfil the energy needs of the country. Under the policy, the agreements are being signed to purchase 1100 MW electricity from Iran and the Middle East, he said. He said that a Turkish company will start generation of 6 to 50 MW electricity from the 'wind mill' within next six weeks.

Raja Pervez Ashraf said due to increase in petroleum prices the attention was being paid to other sources for power generation and coal and wind power generation were an important element in it.

He said it is our luck that the reserves of about 175 billion tonnes coal exist in Thar through which inexpensive electricity will be available to Pakistan. The Sindh chief minister said that Shaheed Mohtarma Benazir Bhutto had started work to utilise Thar coal in 1994, but after discontinuation of our party's government the work on Keti Bander and Thar coal was stopped.

He said the government intends to launch projects to generate 6,000 MW electricity in next three years. To a question, Raja Pervez Ashraf said after the recent rains, the situation of rivers in the country has improved and, therefore, the electricity generation will also be enhanced, which will help minimise load-shedding in the coming days.

He informed that the Karachi Electric Supply Corporation (KESC) was being given 500 to 700 MW electricity daily. In the coming days after a change in the KESC management the power load-shedding in metropolis will be reduced.

Earlier, the meeting was attended by Deputy Chairman, Planning Commission Pakistan, Salman Farooqi, members SCEB, Syed Murad Ali Shah, Jam Saifullah Dharejo, Asad Ali Shah, and others.

 

[Neo]

'Micro Finance' scheme for uplift of cottage industries soon​

SIALKOT (August 18 2008): The setting up of mini industrial estates in remote rural areas is on the card aiming at promoting non-traditional products being produced in these areas and generate employment opportunities for skilled and semi-skilled persons on their doorsteps in the Punjab.

Official sources on Sunday told Business Recorder that the government has accorded special attention on the promotion and development of cottage industries and for this purpose Rs 40 crore would be spent on accelerating the pace of exports and enhancing the productivity in Punjab.

The development of industrial sector was top on the government agenda and during current fiscal period Rs 1.30 billion were being spent on the development of industrial sector in the province. The government has already introduced business-friendly policies for ensuring maximum establishment of industries in private sector and to expand the radius of setting up industries to rural areas for bringing industrial revolution in of the Punjab.

In order to facilitate the SMEs the Punjab government would soon initiate a" Micro Finance" loaning scheme with an amount of Rs 1 billion during current fiscal period for the development of cottage industries and creating self-employment opportunities in the province.

The concept of introducing of this scheme was to extend loan facilities to the interested persons for setting up small scale and cottage industries in the Punjab.

Punjab government has evolved a strategy for developing "Business Friendly" environment and setting up cottage industries aimed at ensuring Direct Foreign Investment (***) in various fields of industrial sector in the province while exporters and manufacturers were being motivated to bring innovation and diversification in their products coping with global market more easily, sources added.

 

[Neo]

SDPI seminar: public review of all past aids and loans sought​

ISLAMABAD (August 19 2008): The government must conduct an independent and comprehensive public review of all past aids and loans sought for development projects before applying for new ones. This was unanimous view of speakers at a seminar on 'Promoting Aid Effectiveness: enabling Participatory Democracy' organised by Action aid-Pakistan and Sustainable Development Policy Institute (SDPI) here on Monday.

Dr Aly Ercelan of Pakistan Institute of Labour Education and Research (Piler), Muhammad Ali Shah of Pakistan Fisher-Folk Forum (PFF), Aasim Sajjad Akhtar of People's Rights Movement (PRM), students and people from various concerned departments were present on the occasion.

The participants urged that the aid-borrowing process, conditionalities by donors and aid-utilisation must be made democratic, accountable, transparent and subject to parliamentary debate. Muhammad Ali Shah clarified that the aid is usually misperceived as grant. However, the fact is that all types of financial aid are basically loan, which involves heavy interest.

Sharing the experiences of mega development projects such as World Bank funded Left Bank Outfall Drain (LBOD) and ADB-funded Sindh Coastal Community Development Project, he said: "The aid is usually provided in the name of development but these projects have impacted negatively the livelihood of local communities especially poor and marginalised."

He further said that not only this but these projects have drastically affected the natural resources, agriculture, ecology causing heavy immigration and displacements.

He however, suggested resistance to exploitative culture in advancing foreign aid and demanded democratisation of all aids for the development projects. Aasim Sajjad Akhtar said that the political economy of 'aid' remains one of the most under specified issues in political and intellectual circles of post-colonial countries like Pakistan despite its overwhelming significance for working people. He further said if awareness and resentment of the role of the military arm of imperialism is high in Pakistan, an understanding of the international economic structures which imperial interventions seek to consolidate is limited.

"Indeed, aid doled out by the international financial institutions (IFIs) over the past few years has been extremely effective in strengthening military dictatorship in Pakistan and accelerating the processes of financial liberalisation and rollback of the state that are the hallmark of neo-liberalism world-wide" he observed. He noted that if understood as a distinctly political tool then, it becomes clear that international aid has served its purpose adding unfortunately aid is typically analysed as a political phenomenon and this is reinforced in debates that uncritically question 'aid effectiveness'.

Dr Aly Ercelan urged the need for democratisation of state structure, which would have to embrace a range of initiatives in law, policy, and public action. He said that these initiatives must reflect the principles of a federation, commencing with debate and discussion of all aid in the Senate, NFC, and Council of Common Interests.

"Provincial autonomy requires approval of federal finances, which will provide an opportunity for informed consent by citizens, and not just their once-upon-a-time-elected public representatives" he added

He said that the Accra High Level Forum in September is a challenge for political parties and government with claims to democratic roots urging Pakistan should reject all additional aid until a comprehensive public accounting is done for all past aid. An honest review will call for debt cancellation, and adequate compensation for massive human displacement and ecological destruction, he noted.

Dr Aly lamented that as aid currently offered, planned and implemented, external grants and loans generally fail to promote rights-based development. He said most projects and programs are irrelevant to poverty eradication, because they do significantly reduce economic, social, political and cultural exclusion and inequity adding that even when apparently relevant, aid projects are unnecessarily costly and place burdens much greater than benefits.

He said that a broader problem is the distortions created by the aid regime as these distortions dilute if not negate democratic structures and process adding that there are several reasons which are all associated with lack of democratic accountability in governance.

"Since indirect taxes and public borrowing, with regressive burdens on the poor, are the economic basis of government, all aid sustains old inequalities and produces new ones," he added. He said that conditions for privatisation of public utilities are especially distortion because it privileges inequitable market and undermines democratic public provisioning adding that universal rights naturally lose before discriminatory entitlements as the broader negative impact is of promoting the fragmenting ideology of individual enrichment against solidarity for collective action.

He said that foreign direct investment (FDI) is not a substitute with fewer problems and without serious progress in democratising all decisions of state finances aid can never be made more effective especially at a time when the state has promised huge additional aid.

 

[Neo]

'It's time for better economic policies'​

KARACHI (August 19 2008): Prominent economists have termed the president resignation as positive sign for the improvement of the economy. They said that the end of political instability will help the government to focus more on the economic issues. They said that due to the political uncertainty and unclear economic policies, foreign investors had been reluctant to invest in Pakistan.

However, the situation will now become clearer for the implementation of economic policies. Since the last several months the country's economy had been facing huge difficulties and capital markets were witnessing a downward trend, they added.

The political battle has badly hurt the country's economy and Karachi stock markets' index came down to 10,000 level from 16,000 points during this period, while the rupee was also continuously depreciating against the dollar, they said.

"We believe that the after the resignation of Musharraf, the government now address the real economic issues to improve economic conditions," they added. They said that some positive indications were witnessed on Monday, as the KSE index increased by over 460 points, while the rupee also gained some Rs 1.20 against the dollar.

"The rupee appreciation and positive trend in stock market on Monday just after the resignation of president, indicating that in near future country's economic condition would be further improved," they added.

They said that after the resignation of president the government would not able to blame the president Musharraf for any economic sad back and the newly constituted government would be whole responsible for economic performance. "The political government would now be absolutely free to develop its own economic policies," they said.

Although, the economy was on right track till the December 2008, however the political uncertainty, after the assassination of Benazir Bhutto badly hurt the economy and reserves have also come down below the ten billion-dollar mark, they added. They also stressed the government to adopt new economic policies in the line with current economic condition, which attract the foreign investors as well as local investors.

 

[Neo]

Export finance funds increased to Rs 358 billion​

KARACHI (August 20 2008): The Governor of State Bank of Pakistan, Dr Shamshad Akhtar, has decided to increase the quantum of export finance for banks under Export Finance Scheme, and now funds amounting to Rs 358 billion would be available for export of eligible products during FY09.

In order to ensure availability of adequate financing to the exporters under the Export Finance Scheme (EFS) and to assist them in achieving the exports target, the State Bank of Pakistan would allow limits of Rs 125 billion to the banks under the Scheme for the current year which are 25 percent higher than the amount outstanding as on June 30, 2008.

As loans under the Scheme are allowed for 180 days, around Rs 250 billion would be provided during the year as refinance from the State Bank at the rate of 7.5 percent. In addition to this, banks would also provide financing facilities to the exporters under the Scheme from their own sources to the extent of 30 percent, which comes out to Rs 108 billion, at the same rate of 7.5 percent. Commercial banks have been brought on board further on this sharing mechanism.

Furthermore, in order to ensure timely availability of financing to exporters, the State Bank has also advised the banks that in future, financing requests from exporters under EFS should not be turned down, which otherwise are meeting the requirements of EFS and lending criteria of the respective bank.

State Bank would regularly monitor the behaviour of banks in optimal utilisation of limits and if a bank is unable to fully utilise its allocated limit, its unutilised limit would be allocated to other banks.

It may be added here that the State Bank of Pakistan and commercial banks have provided export finance to the exporters during FY 08 at 7.5 percent which is substantially lower than ongoing 6-month KIBOR (at present around 13.5 percent). Further, SBP has also provided refinance amounting to Rs 6 billion under its Long Term Financing for Export Oriented Projects (LTF-EOP) Scheme to the exporters during FY08, at a fixed rate of mark up of 7percent for a period from 2 years to 7-1/2 years.

Moreover, during the period from January to June 2008, SBP and banks/DFIs have also provided an amount of Rs 1.134 billion under the Long Term Financing Facility (LTFF) to the exporters for a period of up to 10 years at concessional rate of mark-up. All the above measures taken by SBP are aimed at ensuring adequate supply of financing to exporters at concessional rates of mark up to enable them to compete in the international markets to boost exports from the country.

 

[Neo]

FDI up by 76 percent in July despite uncertainty​

KARACHI (August 20 2008): Despite political turmoil, Pakistan has been continually attracting foreign investment, as the foreign direct investment (FDI) during the first month of the current fiscal year surged by 76 percent. Analysts said that although the political turmoil continues for the last eight months, foreign investors are still relying on Pakistan's economy and continue to make huge investments.

"We believe that the country will attract more foreign investment with political stability, which will be seen in the near future after the resignation of President Musharraf," they said. FDI statistics are encouraging and are expected to further go up in the near future despite political battle, they added.

They said that investment by foreign investors depicts the country's strong economic fundamentals with the ability to attract foreign investors. The State Bank of Pakistan (SBP) on Tuesday said that net foreign investment in the country had increased by 40 percent during July. The country attracted 220.5 million dollars foreign investment in July 2008 as compared to 157.5 million dollars in July 2007.

The foreign direct investment depicted an increase while portfolio investment showed decline in July 2008. FDI mounted by 76.1 percent to 340.7 million dollars in July 2008 as compared to 193.5 million dollars in July 2007.

Portfolio investment declined by 234 percent as outflow of 120.2 million dollars was witnessed in portfolio investment in July 2008 as compared to 36 million dollars of July 2007.

"Now the situation has almost become clear and there is a belief that with the President's resignation, foreign investors would once again invest in Pakistan's equity market," economists said. They said that confidence of foreign investors in Pakistan's economy had still been retained.

 

[Neo]

Economic problems may take back seat: S&P​

NEW YORK (August 20 2008): Pakistan's pressing economic problems could take a back seat as officials are caught up in the succession of President Pervez Musharraf, and this could have credit rating implications, a top Standard and Poor's executive said on Monday.

Musharraf's stepping down on Monday solved one dimension of the political crisis, but the country still had to grapple with a host of issues, including who will replace him, said David Beers, S&P's global head of sovereign ratings based in London.

"There are a lot of questions that remain unanswered about what happens with President Musharraf leaving office, which still, we're concerned, would keep the authorities totally preoccupied with these political issues and their eye continuing to be off the ball with these pressing fiscal and economic policy issues," he said.

Pakistan's escalating budget deficit and a large current account deficit in the balance of payments drove S&P in May to cut the country's credit rating to "B", with a negative outlook, which tells the market the rating could go lower.

Musharraf resigned to avoid impeachment charges, nearly nine years after taking power in a coup. He had been politically isolated since his allies lost parliamentary elections in February. The opposition coalition that took over the legislature seemed to have no unified economic policy.

"They have some very pressing economic policy issues to start dealing with," Beers said. "We don't have a sense that there is anything like a consensus within the government on how to get on top of this - that's a precarious situation to be in." The single B credit rating for Pakistan's sovereign debt is towards the low end of S&P's scale - deep into speculative-grade "junk" bond territory.

Pakistan shares its single B credit rating with countries like Argentina, which earned a black eye in foreign financial circles for its 2002-2005 default on $100 billion in debt. Moody's rates Pakistan at B2, one notch above Argentina. Lower credit ratings can raise a country's borrowing costs and hamper its efforts to tap international credit markets

Asked about the prospects for a rating change for Pakistan, Beers said: "We'll see whether the government in the coming weeks or months puts together a credible package of economic policies and that will tell us whether the rating is OK where it is or not." Prolonged jockeying and uncertainty over Musharraf's position has hurt financial markets in the nuclear-armed country of 165 million people.

The stock market rallied 4.5 percent on Monday but is still near two-year lows. Pakistan's rupee has slumped nearly a third since April, and the currency is near historic lows. "I think the pressure on the currency comes from both domestic and international sources," Beers said. The country was "hemorrhaging" foreign exchange, he said, and foreign investors were pulling out of its stock market.

"They have a very large current account payments deficit which they are having a problem financing," he said. "They (Pakistan) have not been borrowing as market conditions, obviously in line with our rating, have not been favorable."

The current account is a country's broadest measure of foreign transactions and a deficit can spell lower reserves if there are no offsetting capital inflows. S&P estimated the budget deficit in the just-ended fiscal year ballooned to 8 percent of the gross domestic product - double that budgeted by Musharraf, Beers said.

His resignation "solves one dimension of the political crisis which has been underway now for many months," he added. "But it doesn't necessarily signal in our view a dramatic change for the better in terms of the broader risks that we think are weighing on the credit rating.

 

[Neo]

Punjab government to promote SMEs at grass-root level​

LAHORE (August 20 2008): After launching the food stamp scheme in Punjab, Pakistan Muslim League-N led coalition government in Punjab is planning to undertake a programme of vigorous industrialisation and small and medium enterprises (SMEs) in the urban and rural areas of the province to absorb unemployed labour.

Sources in the PML-N told Business Recorder here on Tuesday that the major aim of the socio-economic policies of the PML-N led government is to create employment opportunities in order to reduce poverty and at the same time to ensure a fuller utilisation of the country's human resources for productive purposes.

Poverty alleviation is one of the important objectives of the PML-N led coalition government and the food stamp scheme has been launched in a bid to help the have nots to tackle poverty. "The PML-N government is launching a series of dialogue with the stakeholders to devise a policy for promotion of SMEs at grass root level", the sources said.

PML-N Lahore Vice President Shahbaz Haider said that provision of better health and education facilities to masses is the foremost priority of Chief Minister Shahbaz Sharif who is working day and night to change the fate of the people.

Analysts say there is considerable poverty in the fast growing cities of Punjab. Poverty in the urban areas is growing faster than the rural areas due to high food inflation and escalating price hike.

Beggary in Pakistan is now an established profession which is getting stronger in urban areas, they added. Coercive child beggary is also on the rise, with the parents forcibly sending their children out on the streets to beg, they say. Punjab Minister for Population Welfare, Neelam Jabbar Chaudhry said that poverty alleviation is only possible with the provision of modern educational facilities to all segments of the society.

She said the Punjab government has introduced reforms in education, health and other social sectors in a bid to provide relief to the masses apart from improving their standard of living.

In order to achieve desired results of the reform agenda, she said a comprehensive and effective monitoring and evaluation system is being implemented at district and provincial levels. She said that Rs 58.64 billion would be spent on social sector development programme whereas, Rs 30 billion have been earmarked for educational development projects and Rs 26.10 billion would be spent for the provision of healthcare facilities to the masses in the current fiscal year.

Under the universal primary enrolment campaign, 1.7 million children would be enrolled in the schools however, 100 percent children would be ensured to admit in the schools.

Huge amount is being provided for the provision of computers to 4000 high schools whereas, model schools will also be established at tehsil headquarter level, in addition free air-conditioned bus service would also be provided for pick and drop facility to the matric level students of less developed areas in the province, she added. Reacting to resignation of Pervez Musharraf, Neelam Jabbar Chaudhry said that Pakistan got independence through a democratic struggle and with vote power.

She said that Pakistan came into existence in the month of August and dictator Pervez Musharraf also resigned in the month of August whereas, another era of dictatorship of General Zia-ul-Haq finished in the same month and it was proved that dictatorship cannot stand in front of people's power.

Neelam said that Shaheed Mohtarma Benazir Bhutto's statement "democracy is the best revenge" has been proved; however, now it was the responsibility of the democratic forces to solve the people's problems and overcome the economic crises. She said that parliament is the elected body of people of the country and also answerable before the people, therefore, coalition government would ensure the supremacy of the parliament.

 

[Neo]

'Government gives top priority to Balochistan uplift'​

ISLAMABAD (August 20 2008): Advisor to the Prime Minister on Industries and Production Mian Manzoor Ahmad Wattoo has said that the government is giving top priority to the development of Balochistan, and added various industry-related projects are being launched in the province. He said this during a meeting with Balochistan Chief Minister Sardar Aslam Raesani, who called on him here Tuesday.

Watto said the Ministry of Industries and Production was spending more than 50 percent of its PSDP allocations in Balochistan province. Of the total Rs 10.4 billion PSDP outlays for the Ministry, more than rupees five billion were being spent on various projects in Balochistan, he added.

Wattoo further told the Chief Minister that Pakistan Gems and Jewellery Development Company (PGJDC), a subsidiary of the Ministry of Industries and Production, was setting up a gems laboratory and a Gems Centre in Balochistan with a total cost of Rs 118 million.

He informed the Chief Minister that clean drinking water for all project (CDWA), a project working under the Ministry of Industries and Production, was setting up water filtration plants in all parts of the country and Balochistan was at top as far as implementation of the project was concerned.

Wattoo also discussed with the Chief Minister the possibility of using iron ore of Balochistan for Pakistan Steel Mills (PSM). He revealed that the PSM spent Rs 25 billion on import of raw material last year, added huge foreign exchange could be saved if indigenous raw material, especially from Balochistan, was used in steel production.-PR

 

[Neo]

McCann Worldgroup joins hands with Masood Hashmi​

KARACHI (August 20 2008): Advertising veteran, S. Masood Hashmi, the son of industry legend, the late S.H. Hashmi, has announced the launch of ORIENTm McCann Erickson, says a press release. Pakistan's newest Agency will have state-of-the-art offices located at Orient House and will offer clients the entire range of integrated marketing communications.

ORIENTm will be affiliated with McCann Worldgroup, one of the largest advertising networks in the world with offices in 166 cities in 130 countries. Masood Hashmi has over 25 years experience in building Pakistan's No 1 Agency and has been associated with memorable advertising campaigns that have made numerous brands become household names in the country.

In addition, Masood has played a significant role with his selfless contribution to the advertising and marketing landscape in Pakistan. He was the youngest president of the Marketing Association of Pakistan (MAP), a position he held for four terms, and is also the recipient of the most coveted Marketing Excellence Award.

During his tenure, Masood has held four Marketing Conferences (Marcon) as the head of MAP. He is currently the elected head of the Arts Council of Pakistan for the second consecutive term. He has held the position of president of the International Advertising Association (Pakistan Chapter) for two years and is an Executive Committee Member of the Management Association of Pakistan.

Sorab Mistry, Executive Vice President of Asia Pacific for McCann Worldgroup said: "We have been associated with Masood Hashmi for the last 15 years and have tremendous respect for his contributions to his Agency and his leadership role in the industry. Together we look forward to providing clients with unique and innovative marketing solutions as the industry evolves fundamentally towards the digital age with the advent of the internet. We have ambitious goals for the new Agency and look forward with every confidence as Masood leads us to the next stage of our history in Pakistan."-PR

 

[Neo]

Oracle gaining importance in various sectors​

KARACHI (August 20 2008): Leading organisations in Pakistan are giving importance to Oracle, a software programme, to effectively address the important business issues, including compliance to regulatory requirements; data security; enhanced business efficiencies, disaster recovery and business recovery.

"With our experience of having served Pakistani enterprises for more than 10 years, we have come to understand their main points," said General Manager, Technology Sales for Oracle South Asia Growth Economies West, Farhan Ibrahim,.

He said that various sectors, including government, manufacturing, financial services, utilities, telecommunications and healthcare are preferring to adopt this software to run their businesses, and following organisations are witnessed to adopt this software programme, including City District Government Karachi; Central Depository Company of Pakistan Limited (CDCPL); Cyber Internet Service Pvt Ltd; DP World; Karachi Electric Supply Corporation; Karachi Stock Exchange; National Clearing Company of Pakistan (NCCPL); Pakistan Telecom Mobile Ltd (Ufone); Telenor Pakistan Private Limited; United Bank Limited; Warid Telecom have chosen Oracle Database and Oracle Fusion Middleware to reduce IT complexity, increase business agility and lower the total cost of ownership.

In addition, he added that Oracle works closely with our partners to provide customers with highly available, scalable and secure Oracle technology, solutions and services to address their business issues.-PR

 

[Neo]

Economy offers best opportunity for telecom sector: Gilani​

ISLAMABAD (August 19 2008): Prime Minister Syed Yousuf Raza Gilani has said that Pakistan's economy offers best opportunity for the telecom sector as the government is committed to provide level playing field for their operations. He said this in a meeting with Ms Chua Sock Koong, President Group CEO SingTel, Singapore and Bashir A Tahir, CEO Abu Dhabi Group at the Prime Minister House this afternoon.

Prime Minister highlighted that Pakistan with population of 160 million has potential with growth rate of 2 percent per annum having high young/medium segment. Hence, Pakistan telecom market provides enough opportunities of investment in the sector, he added. He appreciated the confidence of the group by investing in the Banking and Telecom sectors in Pakistan.

Gilani also told the delegation that Pakistan also offers best investment opportunities in the agriculture and energy sectors. He ensured the delegation of his government's full support in this regard. He encouraged Abu Dhabi and SingTel Group to establish software centres and also business process outsourcing in Pakistan.

Abu Dhabi Group is one of the largest business groups of UAE and the largest foreign investor in Pakistan. Qamar-uz-Zaman Kaira, Federal Minister for Information Technology was also present in the meeting.-PR

 

[Neo]

Government giving Rs one billion daily as subsidy on oil: Naveed​

HYDERABAD (August 20 2008): Federal Minister of Finance, Economic Affairs, and Investment Syed Naveed Qamar has said that despite reduction of oil prices in the international market, the government is still giving subsidy and whenever the oil prices of sale and purchase come to equalise, the subsidy will be withdrawn and the relief will be passed on to consumers.

The minister stated this while responding the questions of newsmen after inaugurating the restoration of PIA Flights here at Hyderabad Airport on Tuesday afternoon.

The minister said that though the oil prices have been reduced to 112 Dollar per barrel, however, the government is still giving rupees one billion daily in respect of subsidy on oil, therefore, passing on the relief to consumers is still a difficult for the government.

Syed Naveed Qamar agreed with the review of petrol prices on every fifteen days, adding that the country is purchasing oil from international market, which remains fluctuate; therefore review of prices is necessary.

However, he said that in the past, the changes in oil prices were not notified, which not only results the deficit of the government, but the companies concerned also suffered increase in deficit.

The present government has taken some measures in control the losses, which included the cut in margin of refineries, marketing companies and petrol pump owners and whenever the subsidy withdrawn, the savings will be passed on to consumers.

Responding to a question of the enhancement of gas prices, the minister said that the jump in the gas price was the result of the increase in oil prices. The exploration companies, which engaged in the country have made contract on the basis on international prices, therefore the prices of gas are linked with the prices of international market, he said.

Replying to a question, the minister said that because of the policies of the present government, stability has been brought in the food inflation and within few months, it started declining.

Answering to another question regarding the resignation of General Pervez Musharraf (retired), the minister said that it was the longstanding demand of the people of the country, which now come to fulfil. The countrymen have already given their verdict in General Election 2008 on February 18 with clear message of "Go Musharraf Go", the minister said.

 

[Neo]

Progress of IPI project, exploration in Balochistan reviewed​

ISLAMABAD (August 19 2008): Balochistan Chief Minister Nawab Aslam Raisani chaired a high-level meeting here in the Ministry of Petroleum and Natural Resources. Balochistan Finance Minister Aslam Kurd, Balochistan Chief Secretary Nasir Mohammad Khosa, Petroleum Acting Secretary G.A. Sabri, and other officials of the petroleum ministry attended the meeting.

The meeting reviewed the progress of IPI gas pipeline project as well as removing the bottlenecks in exploration of oil and gas in Balochistan.

A detailed presentation on both the issues was given by G.A. Sabri. He told the meeting that as per Prime Minister Syed Yusuf Raza Gilani, Balochistan will be fully taken on board on the IPI project.

After reviewing details of the security issues of the various exploration licenses in Balochistan, the chief minister informed that in most of the blocks, there was no law and order problem and that the Balochistan government will provide fool-proof security for undertaking the exploration activity by the companies.

The chief minister noted that Balochistan has huge untapped oil and gas potentials and directed to expedite the activity, which is in mutual economic interest of the provincial government.

He cleared a number of areas for starting the exploration work and advised the provincial chief secretary to hold a detailed meeting on August 22 with the operating companies in the areas to sort out their operational problems.

The petroleum acting secretary said the chief minister for his visit to the province and stated that as a result of keen interest being taken by him, the blocks, which had been lying dormant for many years will be opened as well as other companies will also be encouraged to participate in the exploration activities.