Pakistan Economy - News & Updates - Archive

[Neo]

Concern voiced over India's commitment to joining IPI​

ISLAMABAD (August 21 2008): Pakistan's High Commission (HC) in India has expressed concerns over India's commitment to joining Iran-Pakistan-India (IPI) gas pipeline project in the near future. In its report to Foreign Office here Pakistan's High Commission said Indian politics and finalisation of US-India deal on nuclear technology will determine the time for New Delhi to become a part of IPI, an official said.

The report added that as long as US-India deal on nuclear technology transfer did not fully materialise, the New Delhi government may not be able to come up with a clear policy decision on the IPI.

Pakistan's High Commission in India quoted a number of statements of top Indian leadership and officials, which have appeared in the newspapers in the recent past. These statements urge the Indian government to stay away from IPI for the time being.

Another factor, which is impacting on the Indian decision to stay away from IPI is politics. The report quoted some media reports alleging that some political parties were provided financial support by at least one major Indian group involved in the gas business.

Pakistan is already doubtful about Indian participation in IPI and has time and again conveyed to Iran and India that it wants to complete the modalities for IPI as early as possible to avoid inordinate delay in the start of its work.

IPI gas pipeline has already been delayed for some years. The idea for this tri-nation project was conceived in 1994. Initially the delay was attributed to Iran's insistence on charging a price for gas that was not acceptable to the two user countries. That issue has now been resolved.

In spite of serious efforts, at least by Islamabad and Tehran, it could not be brought to an advanced stage for start of work after 14 years. It has been the worst victim of international politics. It was sometimes hit by US-Iran row and sometimes by Pak-India row.

The delay has taken its cost from an initial estimate of 2.5 billion dollar in 1998 to over 7.5 billion dollar in 2008. After 14 years, there is still no firm commitment to finalise the modalities and start practical work on the project in the near future.

An official said that a Pakistani delegation will shortly leave for Tehran to hold talks with the Iranian government for early materialisation of IPI project.

 

[General Fujita]

Italians to invest in Sialkot airport project ​

Thursday, 21 August 2008 00:00 daily.pk

Export-oriented industries to be set up with Chinese, Japanese collaboration
A group of Italian investors have announced to invest in the project of recently established Sialkot International Airport for providing the advanced and world class traveling and aviation facilities to the passengers.

Senior Vice Chairman Sialkot International Airport Limited (SIAL) Dr Sarfraz Bashir disclosed this while talking to the newsmen here Tuesday. General Manager Muhammad Nawaz Ch was also present on this occasion.

Dr Sarfraz Bashir said a group of Italian investors led by Dot would ink an MoU with the SIAL management for Italian investment in Sialkot airport project during a special ceremony scheduled to be held at Sialkot International Airport on today.

He said the Italian investors had shown keen interest in project of Sialkot International Airport recently established by trendy Sialkot business community on self-help basis. SIAL's senior vice chairman said that there was a vast scope of foreign investment in this airport project, as the investment was fully safe and secure here.

He added that the federal government had approved a special grant of Rs 180 million from Export Development Fund (EDF) for the early establishment of an international standard cargo terminal at the Sialkot International Airport, recently established by the trendy and opulent Sialkot business community on self help basis.

Dr Bashir said that the construction of this advanced cargo terminal would be started shortly. He added the SIAL management had also a decided to set up some new and modern export-oriented industries around the Sialkot airport in active collaboration with the businessmen of China and Japan for bringing boom in Sialkot's exports and socio-economic development in Pakistan's first ever "Golden Export Triangle" comprising Sialkot, Gujrat and Gujranwala districts.

Dr Bashir said the SIAL management was in touch with some leading businessmen of China and Japan, in this regard. He said there was a vast scope of establishing new export-oriented industries here.

 

[General Fujita]

Microsoft signs MoU with Aga Khan Foundation

Thursday, 21 August 2008 00:00 daily.pk

Microsoft Corporation and the Aga Khan Foundation USA recently signed a Memorandum of Understanding (MoU) to collaborate in the development of innovative technology solutions and human resource capacity through education, health, civil society, financial services, rural livelihoods and economic development programmes in Africa, South and Central Asia.

The collaboration aims to expand social and economic opportunities of underserved communities, irrespective of race, religion, political persuasion or gender. Initially, the focus of the programme will be on education, with the establishment of a global information and communication technology (ICT) strategy for the network of 18 Aga Khan Academies.

Microsoft plans to provide technical assistance and advisory services to the academies and explore new ways that ICT can help enable quality education and teachers’ professional development, which may include Microsoft’s Partners in Learning programme and Microsoft’s Digital Literacy Curriculum.

On the occasion of the signing ceremony, to promote rural economic development, the two organisations plan to help expand access to information and technology through the Aga Khan Foundation’s existing Rural Support Programmes. Microsoft and the Aga Khan Foundation will also explore areas of joint research into new technologies relevant to rural populations, and ways to raise awareness about the needs of the underserved rural segment among software developers in universities and around the world.

Other areas of collaboration include the expansion of youth empowerment programmes and shared best practices in ICT skills along with quality healthcare initiatives and expansion of outreach and lower costs for financial services for the poor.

The MoU will expand upon the collaboration efforts between Microsoft and the Aga Khan Foundation to help empower more communities with the ICT access that can create new social and economic opportunities.

 

[General Fujita]

Pakistan B2 rating faces forex reserves risk

Friday, 22 August 2008 00:00 Pakistan Daily

Pakistan is in danger of a further downgrade of its “B2” sovereign credit rating as its foreign exchange reserves are being rapidly depleted, Moody’s Investors Service said on Wednesday. The ratings agency said the success of structural reforms would be vital to allay foreign investors’ concern.

“If the government remains unable to govern effectively, then discordant policies and their weak implementation could further set back investor confidence,” Moody’s said in a statement. This would, in turn, damage Pakistan’s balance of payments stability as well as the government’s fiscal financing prospects, it added.

“Delays in the ability of its fiscal authorities to wean themselves away from central bank financing of the budget deficit also represent a formidable obstacle for improving inflationary expectations and reducing pressure on the Pakistani rupee.” Moody’s cut Pakistan’s rating to “B2” from “B1” in May. “If, in coming months, Moody’s concludes that a deterioration in Pakistan’s credit fundamentals is becoming irreversible, then negative rating actions may follow,” Moody’s said.

 

[Neo]

Gwadar Port to get operational with wheat arrival ​

Friday, August 22, 2008

ISLAMABAD: The government’s decision to receive imported wheat at the Gwadar Port is aimed at making the port operational and introducing it on international shipping and trade forums.

This will reduce dependency on existing two major ports, Port Qasim and Karachi Port, where larger vessels cannot be handled, and will also provide an alternative source for docking, an official requesting not to be named told The News on Thursday.

“Tremendous economic activities will be generated when the vessel carrying 50,000-60,000 tonnes of cargo dock at the port and then about more than 2,000 trucks will be used to transport the imported commodity to upcountry,” said the same official, adding that it would also reduce cost and freight charges of handling the imported commodity.

Offloading of ships carrying imported grain on Gwadar Port would spur the local business and trade including that of hotels and restaurants. Moreover, the local labour would get employment and if the trend continues, the shipping activities at Gwadar Port would help in defeating poverty and other miseries of the Baloch people, they hoped.

To this effect, the government will allow one third of the imported wheat to be offloaded at Gwadar Port for curtailing the cost of importing the commodity, sources in the MINFAL confirmed to The News about berthing of ships at Gwadar port.

The Economic Coordination Committee (ECC) of the cabinet in its meeting on next Tuesday (August 26) will deliberate on the issue as Balochistan Chief Minister, Nawab Aslam Raisani in a meeting with MINFAL requested it to offload some of ships carrying the imported grain at Gwadar Port for the betterment of the people of the province.

The chief minister further asked the MINFAL that it should issue separate wheat import tenders particularly mentioning Gwadar Port as the port of destination, this would generate revenue for alleviating the miseries and economic woes of the people of the province.

The ECC of the cabinet in its last meeting directed MINFAL to have reasonable quantity of the imported wheat shipped to Gwadar Port but the Trading Corporation of Pakistan (TCP) has so far accepted bids destined either for Port Qasim or Karachi Port.

In last year’s wheat imports of 1.73 million tonnes, only one ship with 75,000 tonnes of commodity docked at Gwadar Port, but it was not properly handled and the cost of imported wheat increased manifold.

“We are recommending the ECC to allow one third of the total imported wheat to be offloaded at Gwadar port as it would help the importing agencies to cut cost and freight,” said an official of the MINFAL.

The TCP has so far booked 1.601 million tonnes of red wheat and four ships carrying 160,000 tonnes of wheat have unloaded the imported quantity either at Port Qasim or Karachi Port and the rest of the shipments too are booked for both ports but not for Gwadar Port.

The TCP last year booked imported grain in haste and all the ships carrying imported wheat reached the ports one after the other resulting in non availability of berths at ports to unload the commodity. This caused ships to wait beyond their scheduled time resulting in demurrage claims that TCP paid from the national exchequer, sources in the shipping ministry told this correspondent.

To avoid last year’s crowding at the port, the MINFAL is also recommending the ECC to divert one third of the ships carrying imported grain to be docked at Gwadar port, MINFAL official said.

As the port located in wheat deficit area, so the imported grain could also be awarded to the province to meet its domestic requirement while the remaining would be transported through rail to the rest of the country, he added.

 

[Neo]

Japan Special Zones to be set up to facilitate investors ​

Friday, August 22, 2008

ISLAMABAD: the country has assured the Japanese government that it would establish fully-equipped Japan Special Economic Zones (SEZs) where all state-of-the-art facilities and infrastructure would be provided at zero points to investors. Hajime Takeuchi, Director General and Kei Saito of Japan Bank for International Corporation (JBIC) called on Acting Secretary Investment Division & Board of Investment (ID&BOI) Maj (R) Iqbal Ahmad in his office.

The privatisation process was steadily moving ahead, performance of the stock exchange was likely to improve and rupee would be able to gain strength as soon as political and economic uncertainties were removed, Ahmad said.

Discussing special economic zones policy, the delegates were informed that the country was working on Japan SEZs proposal forwarded by Japan External Trade Organization (JETRO) and Pakistan Japan Business Forum (PJBF).

This would result in the real boom in the economic activities, says a news statement issued here. The delegation was visiting Pakistan for exploring investment opportunities in different sectors.

The delegation also visited State Bank of Pakistan and met other investors and bankers to explore opportunities in the financial business sector. The delegates were of the view that in reality Pakistan is far different from perception abroad. Ahmad highlighted Pakistan’s geo-strategic location and its importance and also discussed with the delegation about investment opportunities in power, agriculture, manufacturing, oil and gas and coal exploration sectors.

He termed power generation the most important area for investments and said that the government is very keen to receive investments in this sector.

He said there are enormous opportunities in the agriculture sector including in dairy, livestock and fisheries, as the country is the 5th largest milk producer in the world. Pakistan has a population of 160 million people and has a very high consumer environment.

Its investment policy is referred as one of the best in the region because it allows 100 per cent ownership.

The country has a good quality skilled and semi-skilled labour force of over 45 million. For their training and professional acquaintances, there are numerous vocational training institutes at federal and provincial level.

JBIC has a statutory mandate to undertake lending and other operations for the promotion of Japanese exports, imports and economic activities overseas; for the stability of international financial order; and for economic and social development as well as economic stability in the developing economies, thereby contributing to the sound development of the Japanese economy as well as international economy.

It operates under the principle that it will not compete with financial institutions in the private sector.

 

[Neo]

Japanese to invest $100m in IT​

KARACHI, Aug 21: Japanese investors plan to put in $100 million in information technology projects in IT Park in Karachi. This fact emerged during a meeting of Japanese Ambassador Seiji Kojima with Sindh Industries Minister Rauf Siddiqui.

A press release on Thursday said that the Japanese envoy was accompanied by three other diplomats, who included Consul General Akinori Wada, deputy Consul General Tsuyoshi Hikita and Economic Adviser Takashi Miyata during the meeting with the Sindh minister.

The minister informed the Japanese ambassador that preparations were afoot to set up institutions to teach Japanese language to students. The Japanese have shown interest in setting up a massive database and a call centre with capacity of one thousand calls. Mr Siddiqui further informed the Japanese diplomats about investment opportunities in Sindh in automobile, textile, preservation of vegetable and fruits, including dates.

The Japanese envoy spoke of the success of automobile projects in Karachi in which his country’s investors are major partners.

 

[Neo]

Forex reserves at $9.56 billion​

KARACHI: Pakistan’s total liquid foreign exchange reserves stood at $9.568 billion on August 16, 2008, as against $9.920 billion on August 9, 2008, State Bank of Pakistan said on Thursday. According to the break-up, foreign reserves held by SBP were $6.262 billion while net foreign reserves held by banks (other than SBP) were $3.305 billion. staff report

 

[Neo]

Majority favours DRI technologies for steel production​

ISLAMABAD: A majority of members in long-term Steel Policy making process have favoured the introduction of the world’s most advanced Direct Reduced Iron (DRI) technology for making different steel products, as it is more efficient, productive and the best way to save energy.

This new technology uses natural gas to convert iron ore into DRI. The process uses both lump iron ore and iron pellets as raw material and recycles the used gas. The process lowers both energy consumption and environmental impact, making it an environmentally friendly process, experts told Daily Times here on Thursday.

The government is in process of making long-term steel policy for achieving the productive target of 10 million tonnes by 2015 million and 15 million tonnes by 2020. Main objective of the steel policy was to cover the widening demand and supply gap. The Engineering Development Board (EDB) with the consultation of stakeholders and steel mills across the country was engaged in making a draft of the steel policy by end of this month.

The officials said that the DRI technology is more efficient, productive and energy saving system. India and Russia already adopted this system for their steel sector and these countries achieved great success. A committee on ‘Development of steel sector’ held a meeting in Lahore on Wednesday (August 20) and renowned steel experts attended it. During the meeting, the officials said they favoured the DRI technology for Pakistan under new steel policy.

 

[Neo]

FTA, CEPA between Pakistan and Brunei soon​

Friday, August 22, 2008

ISLAMABAD: The study on Free Trade Agreement (FTA), Comprehensive Economic Partnership Agreement (CEPA) between Pakistan and Brunei Darussalam would be finalised soon to strengthen trade and economic relations and the recommendations would be submitted to the respective governments of both the countries for consideration.

According to an official statement issued here on Thursday the 3rd Joint Study Group Meeting for exploring the possibility of a FTA, CEPA between Pakistan and Brunei Darussalam was held in Islamabad.

 

[Neo]

Saudi Arabia likely to give $500m grant to Pakistan​

* Grant to improve foreign exchange reserves, reduce fiscal deficit
* Deferred payment mechanism would have provided foreign exchange cushion of $6bn​

ISLAMABAD: Saudi Arabia is likely to give Pakistan $500 million in grant rather than an oil import facility on one-year deferred payment to offset oil prices shocks, sources in the Petroleum Ministry told Daily Times on Thursday.

The sources said the grant would help improve Pakistan’s foreign exchange reserves position and reduce its fiscal deficit. The hike in POL prices in recent months has strained country’s resources severely, they said.

The Saudi move to award the grant comes in the wake of Prime Minister Yousuf Raza Gilani’s visit to Saudi Arabia, the sources said. During the visit, it was discussed that Saudi Arabia could either provide grant to ease payments on oil import or grant oil credit facility on deferred payment.

In case the grant comes through, it would be the second such concession during the current financial year as the Saudi government had provided $300 million to Pakistan in March to control budgetary gaps. According to officials, the previous grant had come after former President Pervez Musharraf’s visit to Saudi Arabia.

Deferred payment: Pakistan imports 110,000 barrels of oil per day and around 40 million barrels a year, the sources said, adding that if the two countries had agreed on an oil credit facility on one year deferred payment, Saudi Arabia would be providing Pakistan a foreign exchange cushion of $6 billion.

The government had hoped for either an extension in deferred payments period or oil supply without interest rates. At present, Pakistan imports oil from Saudi Arabia on 30 days credit facility.

The sources said Pakistan had also asked Saudi Arabia to restore the former special oil facility (SOF) under which Pakistan got oil after the 1998 nuclear tests. The SOF was later converted into the credit facility.

The sources said the government has projected budget deficit of Rs 753 billion for the year 2008-09 against previous year’s budget deficit of Rs 399 billion. They said the projected higher budget deficit is follows higher subsidies to the power and oil sector. The government paid Rs 165 billion differential claims to oil marketing companies that the government borrowed from domestic commercial banks.

 

[Neo]

Pakistan and Indonesia negotiating to sign FTA ​

ISLAMABAD (August 22 2008): Indonesia and Pakistan are actively engaged in negotiations to sign Free Trade Agreement (FTA), which would help in raising the volume of bilateral trade up to one billion dollars mark.

On the occasion of 63rd anniversary of Independence Day of Indonesia here on Thursday, Ibnu Prispermana Charge d' Affaires of the Embassy of the Republic of Indonesia said that the bilateral trade between Indonesia and Pakistan stood at 919.46 million dollars during 2007, reflecting significant increase in import/export between the two countries.

He said that the governments of both the countries are committed to raise the bilateral trade volume up to one billion dollars. Both the countries have already singed the Comprehensive Economic Partnership (CEP) and now the negotiations are underway to sign a FTA, which will be a significant landmark.

He said that the trade figures between both countries have significantly increased mostly in favour of Indonesia. In 2007, trade volume between Indonesia and Pakistan reached 919.46 million dollars, whereas the export value of Indonesia to Pakistan was 846.62 million dollars. Similarly, Indonesia import from Pakistan was 72.84 million dollars.

Pakistan imports from Indonesia included vegetable fats and oils, coal coke and briquettes, paper and paper board, fruit and vegetables (betel nuts), synthetic textile, chemical material and products, chemical elements and compounds, machinery of all kinds, road vehicles and their parts, yarn and thread of synthetic fibres, iron and steel, tea and mate and crude rubber etc. He said that the Pakistan exports to Indonesia covers raw cotton, cotton yarn, cotton fabrics, wheat, muslin, fish and fish preparations, rice of all sorts, leather, synthetic fabrics including silk, flax and jute, fruits, vegetables, tarpaulins, sails etc.

Charge d' Affaires of Indonesian Embassy said that there is still lot of potentials that could be explored and exploited ie in industrial sector, technical now-how, banking and marine/air services. There is also a good prospect to enhance trade relations as Indonesia is big market of more than 225 million people, thus is keen to promote closer ties with Pakistan which is also a huge market with more than 160 million people.

The economic ties and bilateral co-operation between both countries have continued to strengthen over the years supported by the state visits of the respective governments and by various bilateral agreements. Indonesia and Pakistan can enhance co-operation in the framework of technical co-operation among developing countries (TCDC) in various fields by exchanging experiences, skills and information. Pakistan should explore the possibilities of entering into the Indonesian market and the businessmen of both the countries should have long-term vision to enhance economic prospects, Prispermana added.

 

[Neo]

JSG advises to help boost Pak-Japan trade: Kojima ​

KARACHI (August 22 2008): Terming the current US $2 billion trade volume between Islamabad and Tokyo as "small", Japanese Ambassador to Pakistan Seiji Kojima expressed the hope that recommendations of the Joint Study Group (JSG) would help the two countries increase bilateral trade.

The outgoing Japanese envoy stated this at a dinner hosted by Chairman, Pakistan Japan Business Forum (PJBF) Abdul Kader Jaffer on Wednesday night at his residence to say "Phir Milenge" (see u again) to Kojima.

Others who attended the dinner included former Home Minister Irfanullah Marwat, former Senator Javed Jabbar, former ambassadors Mansoor Alam and Zafar Hilali, former Attorney General Qadir Saeed, Economic Advisor to Consulate General of Japan Takashi Miyata, Dr Mandip Sharma President Association of Women Entrepreneurs and Career Women (India), industrialist Mirza Ikhtiar Baig, Secretary General of PJBF Jamal Hussain, members of PJBF.

Kojima had arrived in Pakistan on June 26, 2006 as ambassador and would leave for Japan within the next few weeks. He thanked the government and people of Pakistan who, he said, are hospitable and nice. The Japanese envoy said he had tried his best to get more and more Official Development Assistance (ODA) for Pakistan from his government, which was investing a small amount of US $60 million annually in Pakistan.

"I tried to improve the situation and I hope that good recommendations of the Joint Study Group, by the end of this year, would give a boost to Pak-Japan trade," he added. Kojima's wife, Tami Kojima, in chaste Urdu, also expressed her deep gratitude to the people of Pakistan and wished long life to Pakistan-Japan friendship.

Earlier, PJBF Chairman Abdul Kader Jaffer, saying "Phir Milenge" to Kojima, called the envoy a great friend of Pakistan and Pakistanis, who had done a very good job for Pakistan. The PJBF chief said Kojima had multiplied the Japanese ODA to Pakistan for different infrastructure and human development projects, including construction of highways, tunnels and promoting education.

Jaffer, who is also Chief Executive Officer of the Forum, introducing Kojima to the Indian guest, Dr Mandip Sharma, urged him to ask his government for pressing upon their trading partners in New Delhi to strengthen friendly ties with Islamabad. Later, a memento was presented to the outgoing Japanese ambassador and his wife.

 

[Neo]

PC restructuring to ensure sound strategies for key sectors of economy ​

ISLAMABAD (August 22 2008): The government has restructured the Planning Commission with induction of a tier of advisors to ensure sound strategies for key sectors to bring the country out of prevailing economic crisis, it was learnt.

Sources told Business Recorder on Thursday that the new government has re-organised the Planning Commission with induction of a tier of advisors, best in their respective fields, to evaluate each and every project submitted by the ministries for funding. The team of advisors included, Dr Ishrat Hussain, Dr Ishfaq, Shoaib Sultan, Shamsul Mulk and Dr Khadija Haq are working for Planning Commission without any salary and other perks.

The Planning Commission has also hired four consultants against special pay package and assigned them the job of preparing the strategies for key sectors of the economy. The Planning Commission's role in policy formulation is of extra ordinary nature and it definitely requires the services of the best available stuff of the professionals to deliver the good.

Some members of the commission hired by the pervious government have been replaced with the new ones, as the coalition government wants new policy making strategies including a workable solution to energy and food crises. The government also believes the whole focus, in the past few years, was on approval of projects without even considering their importance to the national economy.

This trend was required to be reverted and so is the role of the commission. The role of the Planning Commission in the new global economy driven by the market forces should have been to evaluate every project to make it value added.

With this vision, sources said the PC was re-organised to achieve sound economic decisions taking into consideration prevailing as well as future economic requirements to steer the country out of existing crisis. Unfortunately, they said, the country was facing problem because the decisions taken in the past were not in line with the requirements of the policy-making. Thus there was no planning for the future and the country landed into worst crisis.

They said that the PC was currently focusing on a two-year short-term plan, 2008-10, to address the issues on economic front with agriculture and energy top priority. The two-year plan is being designed not only to meet the next two years requirements but also could be easily fit with the next five year Medium Term Development Plan from 2010-15.

 

[Neo]

Cellphone sector FDI declines to $1,438.6 million in fiscal year 2008 ​

ISLAMABAD (August 22 2008): Former president Musharraf's claim of phenomenal growth in the number of cellphone users as an indication of growing wealth in the economy does not imply a rise in foreign direct investment (FDI) in the sector, which has suffered a decline from a total of $1,824.3 million during 2006-07 to $1,438.60 million in 2007-08.

However, mobile phone companies contributed Rs 36.80 billion as sales tax/federal excise duty (FED) during 2007-08 against Rs 28.2 billion in the same period last fiscal year, reflecting an increase in the number of cellular phone subscribers. The cellular subscriber's growth rate in 2000 was 15.39 percent, which went up to 170.2 percent in 2006, but decreased to 39.8 in 2008 (mid-July).

The former president, in his farewell address to the nation, had claimed that the increase in the purchase of cellular phones by the poor and the middle class reflected greater liquidity of funds. It is unfortunate that it is this very liquidity that is responsible for the burgeoning inflationary spiral, according to economic analysts.

However cell phones are in use by other countries as a means to trace criminals. Unfortunately, in Pakistan the police do not have any mechanism to trace cell phones. The reason is expensive equipment that is not affordable by the Pakistan Telecommun-ication Authority. However, this equipment is currently being provided to intelligence agencies.

Officials stated that a way out is either for the intelligence agencies to assist/share the technology with the police or for the government to support this endeavour financially on behalf of the police.

According to a report, more than 150,000 people lost their cell phones in Karachi alone in 2007, while only 59,744 complaints were registered by the police stations across the city. In Rawalpindi almost 1,000 cases of mobile-phone snatching were reported last year.

The increased use of cellular phones without computerised national identity card numbers (CNIC) has resulted in increased street crime, inclusive of mobile phone snatching. Unregistered mobile phones are also used by terrorists, dacoits, carjackers and kidnappers. Efforts are underway to develop strong links between enforcement agencies and the mobile companies to check the misuse of SIMs by criminals.

It is estimated that over 16 million unregistered SIMs of mobile phones are active in unsafe hands out of a total of 80,301,327 SIMs (recorded statistic till February 2008) of various cellular phone companies in the country and are mostly in use by gangs. They have a number of unregistered SIMs and they use one connection once and after completing their task they destroy the SIM.

When Business Recorder contacted the representatives of various cell companies, it was learnt that almost all of them were aware of the issue and were taking initiatives to overcome this issue.

On the other hand, talking to Business Recorder the officials of Islamabad Traffic Police (ITP) said that with the increase in the use of cellular phones has also increased the ratio of road accidents. "Considering this the ITP has started a campaign in order to fine Rs 700 to those caught using cell phones while driving," officials added.