What's new

Pakistan Economy - News & Updates - Archive

Status
Not open for further replies.

The Adviser to the Prime Minister on finance, Mr Shaukat Tareen, said on Wednesday that Saudi Arabia had agreed to provide “all possible” financial assistance to Pakistan. Although details were available from President Asif Ali Zardari’s meeting with King Abdullah of Saudi Arabia in Riyadh, the guesstimate is that the Saudi government has agreed to give Pakistan initial “relief through deferment of payments for oil purchases” to the tune of $1.8 billion annually.

A similar concession has been reported from Iran. As earlier stated by the visiting Irani Foreign Minister, Mr Manouchehr Mottaki, Iran has agreed to supply Pakistan with furnace oil with a deferment concession of three months, something normally offered to buyers with tight-cash problems. Mr Tareen has indirectly signalled positive developments by saying that Pakistan would weigh all conditions before agreeing to an IMF programme. Presumably Mr Tareen is referring to the conditionalities of the proposed IMF package rather than the decision to opt for it, which has already been taken.

Mr Tareen is hoping to finalise the details with his Saudi counterpart as agreed during President Zardari’s visit. Pakistan’s reserves are at risk at the present moment. They dwindled to $6.92 billion on October 25, out of which the State Bank accounted for $3.71 billion, not enough to cover September’s imports of $3.807 billion. Its oil bill has climbed from $3 billion to $12 billion a year.

Before his departure for Saudi Arabia, President Zardari had hoped to get the Saudi concession that would relieve some of the pressure the national economy was facing on the eve of going to the IMF. Pakistan imports 82 percent of its oil from Saudi Arabia and would like a more realistic concession to tide over the coming weeks and months of hardship. All we have from the Saudi side so far is the news that King Abdullah has responded “positively” to his request. But a concession of only $1.8 billion annually will not be enough. Pakistan needs cash immediately to make payments that have become due if it wants to avoid default. Yet President Zardari keeps on saying that Pakistan doesn’t need cash but investment from its friends. His visit to China has raised hopes all around, but the up-front declarations were mostly project-related. For some reason if there are any pledges of cash made by Pakistan’s friends they are not being made public.

Iran’s concession on furnace oil is not Pakistan-specific. But Pakistan wants Iran to extend the deferment period to three years so that its liability on the furnace oil it imports to fire a section of its power stations is reduced in the short term. But does Pakistan have enough leverage with the two regional states to swing the deal and avoid going to the IMF, its conditionalities and its holding back of “tranches” unless tough conditionalities are met?

The Friends of Pakistan forum gathering in Dubai in the second week of November wants Pakistan to have entered into some kind of a deal with the IMF before they can come up with a bailout package. Understandably that is the position taken by the Western states among these “friends”. The concern among these states is Pakistan’s credibility and its willingness to undertake reforms that would drastically change the economic scene, deeply probe the society for tax collection, and impose discipline with negative consequences for the common man.

Talking about leverage, Pakistan has traditionally friendly relations with Saudi Arabia and other Arab states in the Gulf. Despite appearances, it is not a one-way street. Pakistan’s deference to the Arabs’ desire to deal informally with their demands is understandable. Pakistan’s politicians as well as the army have abided by this style of relations and have grown accustomed to being treated specially. Both Mr Nawaz Sharif and Ms Benazir Bhutto were able to spend their periods of exile among their Arab friends.

The truth of the matter is that the cash crunch is not experienced only by Pakistan but by a whole lot of other countries. China with $1.9 trillions as reserves (expected to rise to $3 trillion next year) has already agreed with the EU at the October session of Asia-Europe Meeting (ASEM) to participate in a collective effort to rescue the Asian region with a fund of $80 billion, the details of which will be finalised this month in coordination with the United States. Saudi Arabia and the oil-rich Arab states in the Gulf are under a similar pressure to help through an institutional as opposed to a bilateral channel. As for Iran, the relationship has to be nurtured further after India has literally slipped out of the three-state IPI gas pipeline project. With the passage if time, Iran will realise the importance of the pipeline and will pay more heed to Pakistan’s economic concerns. Meanwhile, Pakistan’s diplomacy to secure cash to meet immediate payment deadlines must proceed in parallel to its bargaining with the IMF. *
 

LAHORE: Saudi Arabia has agreed to bail out cash-strapped Pakistan with ‘substantial oil supply’ on deferred payment and cash assistance, according to a Dawn News report on Thursday.

Another report by the Online news agency said Saudi Arabia had agreed to provide ‘tangible assistance’ to ‘ease Pakistan’s balance of payment pressure’ and has assured the visiting Pakistani delegation of investing more than $1 billion in the livestock and agricultural sectors.

“Foreign Minister Shah Mehmoud Qureshi is expected to announce the Saudi package in Islamabad on Friday,” Dawn News said.

Online said the Saudi leadership also said they would increase hiring of Pakistani labour and would provide more financial assistance through the Friends of Pakistan initiative.

President Zardari and King Abdullah decided to expand the volume of mutual trade from $5.7 billion to $7 billion. They stressed long-term strategic mutual ties and enhanced defence co-operation.

Zardari accepted the Saudi king’s invitation to the Interfaith International Conference scheduled in New York for November 12. daily times monitor/online
 

ISLAMABAD (November 07 2008): Adviser on Finance Shaukat Tarin on Thursday dashed to Dubai to hold talks with the UAE authorities for financial help ahead of Friends of Pakistan meeting. According to well-placed official sources, Tarin left for the emirate after attending an inconclusive Ecnec meeting in the federal capital.

That meeting, which was chaired by prime minister Yusuf Raza Gilani, is expected to take up its remaining agenda on Monday upon his return from the emirate by Sunday evening. Tarin is expected to meet top economic leadership of the UAE with a view to successfully convincing them about Pakistan's financial woes and soliciting their support on a bilateral basis.

The sources said that Tarin would also be looking forward to a liquidity support through UAE's central bank in order to improve the country's falling forex reserves and strengthen its position in relation to balance of payments.

Elaborating, the sources said the UAE's central bank or the Central Bank of the UAE could act on the pattern of the European Central Bank. The ECB, the sources pointed out has recently rushed to the aid of Hungary, opening a special repurchase facility allowing the Hungarian central bank to borrow up to EUR5 billion to help offset its financial crisis.

The UAE government would be requested to ask its central bank to help boost liquidity in the Pakistani banking system and support a plummeting Pakistani rupee. "The size of the liquidity that Pakistan looks forward to will be determined only after the UAE authorities have made the right overtures in this respect," a top government official told Business Recorder, requesting anonymity.

Second, he said, Pakistan would be asking the UAE government to provide it relaxation in making oil payments. The relaxation could be on the pattern of an extended deadline of payment, or through deferred payments. In addition to these two bilateral arrangements, the UAE would be expected to contribute generously in efforts towards bailing out Pakistan at the forum of Friends of Pakistan, scheduled to be held on November 17 in the emirate.
 

RIYYADH (November 07, 2008): Saudi Arabia has agreed to give $4 billion to Pakistan and provide oil facility on one-year deferred payments, sources said.

During the meeting between King Abdullah bin Abdul Aziz and President Asif Ali Zardari, Saudi Arabia agreed to provide economic assistance and oil on one year deferred payment. Sources said a formal announcement in this regard will be made at the meeting of the 'Friends of Pakistan' to be held on November 17 at Abu Dhabi.

They said that Pakistan was aiming to accumulate $25 billion, which were being considered enough for bringing the economy back on track for the next 10 years. 'Moreover, King Abdullah during the one-on-one meeting with Zardari has also agreed to provide oil to Pakistan on one-year deferred payments, for which the agreement is expected to be signed soon.

Sources said Pakistan needed more than $ five billion within a month to meet its international obligations. 'The Friends of Pakistan' nations include the US, UK, France, Saudi Arabia, China, the UAE and several other countries, which are meeting in Abu Dhabi on November 17 to devise ways for stabilizing Pakistan's economy".
 

KARACHI (November 07 2008): Pakistan is keen to export its products and expertise to Malaysia and welcomes a reciprocal move towards enhancing bilateral trade between the two countries. "Both countries can establish a chain of business activities for mutual benefit", said Nusrat Iqbal Jamshed, Director-General, Trade and Development Authority of Pakistan (TDAP).

While talking to a 8-member delegation of Malaysian and Brunei journalists' who are on a ten days visit to Pakistan. "We would like to be involved in sectors such as marble industry, textile, handicraft, pharmaceuticals, carpet, fish and fish preparations while Malaysia could export its expertise and investments in palm oil, rubber and tin", he said adding that Karachi can be a reservoir and hub for Malaysian investment activities for Malaysian export to other countries.

DG TDAP said that currently bilateral trade between the two countries was in Malaysia's favour and its exports to Pakistan stand at around US $1.7 billion while imports are at only $104 million. The two countries have signed a Free Trade Agreement (FTA) which was implemented in 2006 and its scope was enlarged through Malaysia-Pakistan closer Economic Participation (MPCEPA) agreement last year.

MPCEPA is Pakistan's first comprehensive agreement on goods, services, investment and economic co-operation with any country in the world. It is also the first such agreement between the two members of the Organisation of Islamic Countries (OIC). The agreement is also Malaysia's first with a country in South Asia.

Nusart said that 61 per cent of Pakistan's exports are in textile and clothing particularly raw cotton, yarn, fabrics, garments, tents and canvas while a further 23 per cent relates to rice, leather and leather products, sports goods, wool, carpets, surgical instruments and petroleum products. Fish and fish preparations, fruits and vegetables, chemical products, pharmaceuticals, marble and granite, gems and jewellery, IT, meat and poultry and cement represent seven per cent of exports with the balance being other types of goods.
 

ISLAMABAD (November 07 2008): Federal Minister for Industries and Production Inaytullah Durrani has said that at least 100,000 vacancies will be created during the current financial year to bring the country out of the economic crisis. He expressed these views in his first meeting with the officials of his Ministry here on Thursday.

Additional Secretary Hafizullah Chaudhry briefed him about the performance of the ministry. Talking to the officials, Durrani said that the government would provide maximum facilities to the industrialists from countries like Japan and Malaysia to with a view to attracting foreign investment in the industrial sector. He asked the officials to work hard, and assured them that their problems would be solved on priority basis.
 

LAHORE (November 07 2008): The leaders of PIAF-Founders Alliance have said that the economic situation in the country is taking a positive turn and hopefully with the new wave of change in the United States, Pakistan would regain its status as the hub of business activities.

The Alliance leaders including Mian Anjum Nisar, Iftikhar Ali Malik and Mohammad Ali Mian expressed these views while speaking at a luncheon reception hosted by the businessmen of Liberty Market and Hafeez Centre. The business community leaders of Liberty Market and Hafeez Centre Rana Tariq, Safdar Butt, Gibrael Qamar Butt, Malik Amer Mohsin and Abdul Rauf also spoke to the gathering.

They said that the whole country, particularly the province of Punjab is a land of opportunities and a true leadership at all levels could help realise the dream of a prosperous Pakistan in coming years. The alliance will continue its struggle for the betterment of business community, as its consistent liaison with the federal and provincial governments in the last five years, has helped lessen the problems of both the trade and industry.

Further, the businessmen said that all measures were taken in the recent months to convey the business community's concern over ongoing crisis ranging from hike in power tariff and shortage and rapidly increasing cost of business. The association also pleaded the government effectively for all matters concerning the cause of business community that resulted in withdrawal of decision regarding imposition of 35 per cent L/C margin, they added.

Appreciating the LCCI for its effective role in co-ordinating with the federal and provincial levels, they said that they had remained in touch with the governments to get resolved the businessmen's problems.

The office bearers also held meetings with the foreign diplomats and tried to dispel Pakistan's negative impression being painted by western media regarding the investment scenario in the country. The trade leaders of Liberty Market and Hafeez Centre while reposing their confidence in the Alliance assured their support to them. The Alliance Associate Class candidates were also present in the reception.
 

ISLAMABAD (November 05 2008): Pakistan, after obtaining thriving growth and investment in telecom especially in cellular sector, still offers best opportunities for investors as million of rural people awaits to benefit communication services. Becoming a destination for investments in IT and telecom and attracting more than US $9 billion Foreign Direct Investment (FDI) during last few years, Pakistan is still a high potential area where major companies of the world like Mobilink are still investing.

It is the sector, which is attracting more investment than any other sector in the country where total number of fixed and mobile subscribers has reached from 8 million in 2003 to over 89 million in 2008 with major contribution coming from the mobile sector especially the Mobilink, which has around 31.5 million subscribers base.

Teledensity in the country has also increased to 58% of the population which is the highest in South Asia. A question usually arises these days, can Pakistan wherein last year mobile industry invested close to US $3 billion continues to be one of the fastest growing telecom markets in view of world-wide economic crunch?

The answer is that we all probably aware, we are currently in a global economic slowdown and with rising international oil prices coupled with consumer price inflation. In the developed world including US, western Europe and Japan where new mobile subscriber growth had saturated some time ago, the telecom industry is now bracing for a major slowdown.

In addition to a slowdown in new mobile subscriptions, it is expected to be a slowdown in the sales of handsets as well. Pakistan, of course, cannot remain shielded from this global turmoil. But in fact the telecom sector in Pakistan is not doing too bad. The sector was by far the largest recipient of foreign direct investment in 2007-08. As per PTA, the industry continues to add more and more new mobile subscribers every month even under the current conditions.

In fact all know we in Pakistan have a huge growth potential as far as telecom is concerned, even if we compare with just the neighbouring countries. Majority of the rural population still awaits cell services. There are 3G and 4G technologies yet to be deployed, and there's so much more to value added services than downloading ring tones and Bolo SMS. So in short, the answer to the question posed in the title is "No".

Considering the situation, there is no saturation point as yet. The industry is showing a healthy growth in spite of the global economic slowdown. And best of all, no layoffs announced in the local mobile industry as opposed to other parts of the world.

Mobile companies are still committed that the industry will continue to work with the government for the rapid provision of state-of-the-art information and communication services in Pakistan, with a heightened focus on empowering rural communities. All the mobile companies have continued their trend of investment and introducing new services. Sale of new connections also continues.

Mobilink, having a leading market share with more than 31 million customers and crossing the figure of covering over 10,000 locations across the country is now focusing on rural population. Growth trend would remain continue in the mobile industry uninterrupted provided more proactive steps need to be taken.

Commitment is there both from the government and operators sides to the further promotion of telecom sector, however incentives most importantly relaxation in taxes would help leverage its strength for growth of economy and social inclusion of all sections of population.
 

AIR CDRE (RETD) AZFAR A KHAN

ARTICLE (November 06 2008): Pakistan is facing the worst ever crisis of electricity shortage these days. It's becoming extremely difficult for a common citizen to pay off his/her monthly electricity bills. The bills keep soaring day by day and there seems to be no respite in the foreseeable future.

The electricity generated through the fossil fuel is very costly as its cost is linked to the cost of imported fuel. We are spending a hefty amount ($11 billion plus) on the import of oil annually to meet the country's oil requirements. Hence, there's a need to resort to other forms of generation of electricity, solar being one of them.

This article dwells on the discussion regarding production of cheap solar panels/cells in Pakistan; the problems that are holding up things, the status of our industry, why industry is not sensitised to do things, current market situation and suggestions to resolve these problems.

One thing that must be stated right at the outset is that generally it's presumed that solar energy is an expensive form of energy which is beyond the reach of the common man and it's rightly so. The next question that comes to one's mind is: How to reduce this cost? In Pakistan's environment, it's very much possible as we have all the plus points at our disposal. The only thing is that we should be able to exploit them. The strategy is given in the succeeding paragraphs.

Let's say that the government decides to venture in a big way in this form of energy. It wants to see solar panels mounted at the roof of each and every house of the country's urban and rural areas. It simply means that we would be requiring solar panels not in thousands but in millions or rather in hundreds of millions! Each solar panel utilises 100-200 solar cells which are pasted on the panel that is made of glass, generally 2 ft x 5 ft in dimensions.

Presently, a solar cell costs more than Rs 1000 if imported from abroad. Just imagine how much budget we would need to go ahead with this project! Naturally, such a huge number of solar cells can't be imported from abroad as they would be prohibitively costly.

These cells are costly because they are being manufactured by manpower that is hired by the manufacturing companies @ $45 per hour! Hence, the best option would be to manufacture solar cells in the country. But, would their manufacture really bring the cost down. The answer to this question is a big YES! See how? To manufacture solar cells in the country, we have three requirements: raw material, machinery with necessary infrastructure and trained manpower.

RAW MATERIAL As far as raw material is concerned, there are two types of raw materials used in the manufacture of solar cells, one is quartz and the other silica. Quartz is available in abundance in the northern areas of our country. People of the northern areas are raising walls of their houses utilising this raw material in place of bricks.

The other raw material silica is available in our rivers and many other places. Our bulb manufacturing companies, three of them being in the NWFP, are already using this raw material for decades. So, to venture into manufacturing of solar cells, both types of raw material is available in the country.

MACHINERY AND NECESSARY INFRASTRUCTURE But, the availability of this raw material alone would be of no consequence unless we have necessary infrastructure with arrangements for its purification, development and finally conversion to solar cells. For this purpose, we'll have to import necessary machinery from abroad. But, it would be a one-time investment only.

TRAINED MANPOWER Regarding manpower, I have no reservations in making a statement here that we have the finest and the most hard-working, skilled manpower. From my personal experience spanning over a period of 31 years, I could say with conviction that the retired personnel of the defence services who have been working on sophisticated electronics and telecommunication equipment during their service careers (preferably in the Air Force) would be the best choice for deployment on the manufacture of solar cells.

These people are highly skilled and disciplined and get retired at an early age. Shaheen Foundation, Islamabad maintains an up-to-date computerised record of such personnel who are just a telephone call away. The expertise of these people is not less than any technician deployed in the western countries for such jobs.

The only difference is that a European worker of such calibre gets US $45 per hour whereas a Pakistani worker, if he is paid $5 per hour in his own country would be the happiest man around. While starting manufacturing of solar cells, it would be advisable if we do it in collaboration with a world-renowned company as India has done in the case of wind turbines.

It had a joint venture for the manufacture of wind turbines with a company that has 26000 wind turbines to its credit! This company has a name in wind industry and its wind turbines are being used the world over! This way, we can also join hands with a world-renowned solar systems manufacturing company. We would be able to lay our hands on the latest technology in the field of solar energy and our manpower would also be trained through short orientation courses as they already possess sound knowledge and strong technical base.

By deploying our local manpower we would already be saving $40 per person per hour which would drastically reduce the cost of manufacture of solar cells. Further reduction would be effected through raw material which's available at a throw-away price. This way, the "prohibitively costly" solar panels employing locally produced solar cells would come within the reach of the common man. The energy crisis would thus be a history of the past.

THE PROBLEMS THAT ARE HOLDING UP THINGS In Pakistan, the main problem for solar energy not taking off is the absence of commitment from the government. Once, the government shows its commitment, things would be quite different. Next is absence of awareness among the general masses. This awareness wouldn't come on its own. It has to be created. The country's TV channels could divert some time for the propagation of the need for solar energy among the masses.

Similarly, the newspapers and radios can play their role in creating awareness. Another thing; if some businessman, through his innovative thinking and foresight establishes a factory to manufacture solar panels, he's not patted at his back.

It looks as if he has committed a sin! If there's a contract to be awarded for mounting solar panels on the rooftops of the houses of a village, then this businessman is not given preference over those who import these panels from abroad and do the job. It's really pathetic!

THE STATUS OF THE INDUSTRY Presently, there's one and the only one factory manufacturing solar panels in Pakistan which's located at Hattar Industrial Area near Taxila, 1-1/2 hours drive from Islamabad. But, it's producing solar panels only. Though, it has plans to manufacture solar cells as well, yet it's not possible for the company at present due to the huge cost involved.

It could be done through public-private partnership. The government must help the company financially to set up the required facilities. The infrastructure is already available. It has taken us decades and we're still engrossed in thinking mode. Let's come out of this inertia and do something practical!

THE OFFICIAL POLICIES Is there really any official policy in this regard? I very much doubt! Why? Because, had there been any official policy, then it would have trickled down to the people and made attractive for the businessmen.

THE CURRENT MARKET Due to absence of government's commitment, the market for this form of energy hasn't taken off. People are also unaware of this alternate source of energy. They want to do away with their dependence on the existing source of energy ie utilising fossil fuel. If the solar cells are made cheaper, this industry is bound to take off.

THE TARIFF RATES There should be no tariff on various products of solar energy as only then the investors would come forward and invest. Rather, fabulous benefits should be given to the investors.

HOW DO WE RESOLVE PROBLEMS?

THE PROBLEM COULD BE RESOLVED IN THE FOLLOWING WAYS:-

-- AEDB should be made more effective. They say: "Seeing is believing." So, their progress must be seen and felt by everybody.

-- Cheap solar cells should be manufactured in Pakistan.

-- More factories should be installed for manufacturing solar panels in the country.

WHY INDUSTRY IS NOT INSENSITISED TO DO THINGS? The industry is insensitive to the production of this form of energy due to the high cost involved. But then somebody should answer my question too: If the cost is really that high, then how Nevarra is coping up with this high cost? It's meeting 70 % of its energy needs through solar and wind energy despite the fact that it doesn't have that much sunlight as we have!

The authorities in Nevarra must have taken some tangible measures to bring the cost down, out of which, one could be the manufacture of solar panels including solar cells in country. If the use of solar energy was that costly, then Nevarra would have abandoned this initiative long ago.

To conclude, it can be said that solar energy is one of the most viable options for Pakistan. Even countries with less sunlight are making best use of this free resource (sunlight). We, in Pakistan, aren't short of sunlight as sun shines on the entire length and breadth of the country throughout the year. We can make use of this inexhaustible resource and contribute towards meeting the shortfall of electricity.

If we don't do it now, then it would be just a matter of time when oil would be touching $200 a barrel and the World Bank would be pressing us hard to increase the electricity price by the same ratio. At that time, we would be left with no option but to grab every opportunity to generate electricity from any available source, what-so-ever!

We should opt for the manufacture of solar panels, including solar cells in the country, for which, we should establish not one but several factories for the same. We have unimaginable quantities of raw material at our disposal and our manpower is second to none.

With the availability of abundant raw material at throw-away price and the cheapest yet highly skilled technical manpower, the profits that would be accrued is mind boggling!, It's said that if enough solar panels using indigenous solar cell are installed and energy efficiencies are ensured, the home owners can receive a zero power bill!
 
Fri Nov 7, 2008

ISLAMABAD, Nov 7 (Reuters) - The Pakistani government said on Friday it would privatise 37 percent of the state's stake in the Qadirpur gas field to accelerate exploration and increase production.

The state-owned Oil and Gas Development Company Ltd. (OGDC.KA: Quote, Profile, Research, Stock Buzz), Pakistan's largest listed company, owns 75 percent of the gas field, while the remaining 25 percent is held by foreign companies.

"We have decided to sell 37 percent of OGDCL's shares in the Qadirpur gas field," Privatisation Minister Naveed Qamar told a news conference after a meeting of the cabinet committee on privatisation, chaired by Prime Minister Yousaf Raza Gilani.

Qamar did not give a deadline for the sale but said authorities would try to complete it in the 2008/09 financial year (July-June).

Qadirpur gas field is 8 km (5 miles) from Ghotki town in Sindh Province. It was discovered in March 1990 and production started in September 1995.

Workers have been agitating against any move to sell the gas field but Qamar said jobs would be protected.

According to the Karachi Stock Exchange Web site, OGDCL has an index weighting of 16.26 percent and a market capitalisation of $5 billion.

It also holds the largest share of the country's recoverable hydrocarbon reserves; 32 percent of gas and 37 percent of oil.

The cabinet committee had considered the options of privatising OGDCL itself or selling some of its shares but decided against both options, given depressed world financial markets, Qamar said.

An official of the Privatisation Commission, which oversees the sale of government assets, said the foreign listing of Kot Addu Power Co, planned for October, had also been delayed because of market conditions.
 
Delegation’s expenses were borne by Asif’
By Syed Irfan Raza
dawn news.com
ISLAMABAD, Nov 6: Prime Minister Syed Yousuf Raza Gilani has denied reports that expenses on the delegation which accompanied President Asif Ali Zardari to Saudi Arabia were borne by the government.

Talking to reporters here on Thursday, he said he wanted to clarify that the expenses of the ‘large’ delegation were borne by the president.Mr Zardari went to Saudi Arabia on a two-day visit on Tuesday with a delegation of up to 200 people to seek financial assistance package from the kingdom.

Sources told Dawn that the president’s visit to Saudi Arabia involved three chartered flights. An advance party had gone on Monday. Most members of the delegation were Mr Zardari’s friends and close aides who were taken to perform Umrah.:hitwall::lol::disagree:

The president had only 15 people with him in his plane – his personal staff and some friends. No federal minister or senior bureaucrat was in that flight.

The other chartered flight carried 175 people, mostly friends and close aides of the president. Ministers and government officials who were in the plane included National Assembly Deputy Speaker Faisal Kundi, Foreign Minister Shah Mehmood Qureshi, Finance Adviser Shaukat Tarin, Minister for Labour and Manpower Khursheed Shah, Law Minister Farooq H. Naek, Interior Adviser Rehman Malik and Minister for Parliamentary Affairs Dr Babar Awan.

guss , what ?
its the real picture, of our travlling economy!:disagree::angry::tsk:
that is how our respected presidnt will going to solve eco-crisis?
 
Nation will hear many good news on economy soon: FM
Saturday, November 08, 2008

MULTAN: Nation will hear many good news about our economy soon, said foreign minister Makhdoom Shah Mahmood Qureshi here on Friday. Talking to journalists at the local airport he said President Asif Ali Zardari’s Saudi visit emerged successful.

He dismissed the negative impression about the tour. Shah Mahmood Qureshi said soon PM’s advisor on finance will tour Saudi Arabia, our time-tested brotherly country, to discuss the economic assistance package.

He said Chinese visit was also successful although some cynics termed it unsuccessful. He said both the visits will prove fruitful in the days to come.

The foreign minister said Pakistan is discussing aid package with the IMF on its own terms. He said the IMF package will be of short term. :blah::lol:

He said the prices of petrol, diesel and vegetable ghee have been decreased and prices of other consumer items will also come down and the common man will heave a sigh of relief. :argh: Quote: Where is this shop dear minister................you may be dreaming.............or throwing flock:lol: i think u did make a mistake about prices reduction as every thing came to your house sure completely free:eek:

He said, “we are coming out of the woods which is indicated by the falling price of dollar from Rs. 86 to Rs. 82”.

Shah Mahmood Qureshi said the question of US attacks on our territory has been taken up with the US General and with US allies.

He said US has witnessed a big change in the recent presidential elections. He said our foreign policy couldn’t be changed overnight.

QUOTE:
Hmmmmmm.... by the way yeh raat kitni lambi ho gi......... You peoples keep on chanting /saying like this: "Nation will hear many good news very soon" since last 8 months........so plz for God sake tell us, wo subha kab hu gi????
as we whole nation cudnt hear any foot step leads for godo news as yet, abhi tak tu "govt elites hi ki panchon ungli ghee mein hein aur sir kharhayi mein" :azn::angry:
 

Saturday, November 08, 2008

KARACHI: Managing Director of First Data for Middle East region, Brian Quarrie believes that Pakistan still has tremendous growth potential in the financial sector and as it is still a relatively small market, there were more opportunities for them to sell their services effectively.

“Therefore, though the global financial crunch took everyone by surprise as it was unexpected and sudden, we still intend to push ahead,” he said in an exclusive telephone interview with The News.

Elaborating on the workings of First Data, Quarrie said that the company was involved in finance-related services. “We cater to both holder of credit and debit cards and to the merchants,” he said.

First Data is a global technology leader in information and internet commerce. The company processes transaction data of all kinds which ranges anything between payment solutions, card issuing solutions, prepaid & payroll solutions, mobile commerce solutions, e-commerce solutions, loyalty solutions, terminals & supplies and ATM solutions.

Government solutions, customer service solutions, fraud/risk management solutions, bill payment solutions, analytic & decision management solutions, global merchant acquiring solutions and cash management solutions are some of other services.

Worldwide, his list of clientele includes grocery stores & pharmacies, gas stations & convenience stores, restaurants, retailers, financial institutions, travel & entertainment, e-business, automotive, professional trades, government agencies, healthcare and utilities.

“First Data officially has been inaugurated in August 2008 in Karachi with our clients Bank Al Falah and Allied Bank to whom we offer our complete range of services. We now plan to penetrate the market further and therefore have also opened our office in the city recently,” the MD elucidated.

“To establish ourselves in Pakistan, we had to go through a step by step process which was required of us by the government. The State Bank of Pakistan did not intervene directly since we aren’t into processing financial transactions like a bank and therefore there were no rules and regulations that were to be imposed on us and instead the SBP just gave us some lessoning on how things are done in Pakistan,” he continued.

Quarrie articulated that here he has started with dealing financial institutions initially and is looking towards retailers and then eventually the other sectors too. “We have a more mature market in Europe and USA,” he said.

Quarrie was unaware that Pakistan is rather poor in technological knowledge.

He agreed that people may need to be educated in using their full services in Pakistan but added that First Data is not looking to set its past 25 years ideal model example in this nation within its first year of operating here.

Referring to the question regarding security precautions against fraud and manipulation involving his services, Quarrie expatiated that he packaged his own products and more importantly one of his own services is on risk management.

He said Pakistan may have high cases of frauds but then this type of crime has been prevalent for a long time in all the societies of the world and so far he has been selling his products successfully all over the world and is positive he would do so in this country as well.

While Quarrie declined to put a figure to his investments here, he did share that he was planning to create good job opportunities for qualified people in the country. Sales and marketing are just some of the efforts and as his clientele has grown with time. Currently he has nine people working for his organization at this initial stage.

First Data is also looking forward to doing a number of joint ventures here. However, the organization would continue to remain a foreign holding with no local shares in the market, he enunciated.

Quarrie said the financial market’s landscape has become more competitive as there are more players in the market and as the products as well as clients have become more innovative. He cited the example of the introduction of Islamic cards for this region. The world market has become more mature and choosier for people and “that’s why we have taken Pakistan in our stride,” the MD commented.
 

Saturday, November 08, 2008

ISLAMABAD: The government will keep a buffer stock of one million tonnes of wheat in storages of Pakistan Agriculture Storage and Services Corporation and replace existing stock with fresh produce, a senior government official told The News on Friday.

“We have learnt from the current food crisis across the globe and have decided to keep minimum stocks of staple food with the public sector in order to ensure food security,” said Shahid Hussain Raja, Additional Secretary Food and Agriculture.

Earlier, the federal cabinet, while fixing wheat support price at Rs950 per 40 kg for the coming crop, had directed the Ministry of Food, Agriculture and Livestock (MINFAL) to procure 6.5 million tonnes of wheat after fresh harvest.

Out of total procured wheat in next season, 5.5 million tonnes will be used to meet local consumption and remaining one million tonnes would be stocked for next year, he explained. Wheat stocks will be kept in PASSCO godowns.

Federal Committee on Agriculture (FCA) has fixed wheat production target of 25 million tonnes against local consumption of 24 million tonnes.

About import of 3.5 million tonnes of wheat, the additional secretary, who had also served as Punjab food secretary, said Trading Corporation of Pakistan had so far contracted 1.75 million tonnes, of which 1.64 million had arrived, adding “tenders for remaining quantity will be issued next week.”

Besides imports, Pakistan is also expecting $200 million worth of white wheat from US on deferred payment and another 50,000 tonnes as grant from the US government.

To a question about maintaining strategic reserves, Shahid Hussain said, “the ministry with the help of Planning Commission is working on a plan not only to upgrade existing storages but also construct modern silos for the purpose.”

Two main public sector organisations, food departments and PASSCO, have total storage capacity of over six million tonnes, but in case of bumper crops or the need to store other commodities, there is no extra space.
 

Saturday, November 08, 2008

LAHORE: Buoyed by increasing revenues due to high inflation and currency depreciation, the economic team of the country has overlooked the need for reviving the sagging manufacturing sector.

Industry circles are so deeply concerned over inaction of the government to facilitate local industries that instead of creating new employment opportunities, they are downsizing their workforce. They said a proper evaluation of the situation would reveal that industries were paying higher taxes on declining productivity. Sales were slowing due to low demand and even then industries were forced to increase prices due to rising costs.

Former senior vice president of Lahore Chamber of Commerce and Industry (LCCI), Farooq Iftikhar said the present regime had taken all steps necessary to increase its revenues.

He said revenues had shown a robust growth of 28 per cent in the first four months of the current fiscal year, adding most of the taxes in fact increased the cost of production of the local industry.

He said with the dollar going up from Rs62.50 to Rs82, receipts from imports had multiplied “as entrepreneurs now pay much higher sales tax on duty-paid value of their raw material.” Resultantly, he said, increase in the production cost of products further increased final sales tax which manufacturers paid to the government.

Former chairman Lahore Stock Exchange, Group Captain (R) Naeem A Khan said the government had abolished entire subsidy on petroleum products. In the last fiscal, it had paid a huge subsidy of Rs175 billion on petroleum products.

He said the withdrawal of the huge subsidy in four months had also contributed to the increase in production cost as petroleum products were used in all economic activities from manufacturing to marketing.

A leading knitwear exporter Adil Butt said the increase in electricity tariff had hit both domestic and industrial consumers badly. He said the subsidy on electricity had either been completely eliminated or drastically reduced.

However, “crude oil is now available in the global markets at much less than half the rates Pakistan paid in August this year.” He noted that the cost of thermal electricity production had declined by over 30 per cent after accounting for the decrease in rupee value. Electricity tariff has twice been increased during this period and exemption from 16 per cent GST on electricity has been withdrawn.

An artificial leather manufacturer Mian Anjum Nisar said that the government had every right to boost its revenues. However, he added sustained revenues would come only if the industry grew. Pakistan’s economy at its current stage of development could not survive on the growth of services sector only, he said, adding main engines of growth should be industry and agriculture. Exportable surplus would come from these sectors only, he pointed out.

He said there would be no economic revival if industries were allowed to bleed to slow death. “Cost of doing business has to come down to exploit the actual potential of local industries,” he added.

Former chairman Pakistan Association of Auto Parts and Accessories Manufacturers Syed Nabeel Hashmi deplored that the government did not have resources to facilitate the domestic industry while it lined up Rs20 billion and Rs30 billion funds to rescue capital market’s brokers.

He said the capital market was exempted from capital gains tax and had created many billionaires because of this during the past seven years.

He said banks that minted money for over five years had been facilitated by taking measures to increase their cash flow. He regretted that no such measures had been adopted for the manufacturing sector which provided revenue to the government.
 
Status
Not open for further replies.
Back
Top Bottom