Pakistan Economy - News & Updates - Archive

[Neo]

Millac says doing good in Pakistan ​

Saturday, November 08, 2008

KARACHI: Despite high inflation sales in Pakistan are going well and it is expected to carve out market with new products, Zeshan Siddiqui, National Sales Manager, Millac Foods Pakistan, said.

He was speaking at a launching ceremony of a new dairy product ‘Gro’ instant milk powder of Millac Foods Pakistan here on Friday.

Hamood Sheikh, Brand Manager Millac Foods Pakistan, said the company collects milk from local farms located in different parts of the country and then add pre-mix to some other food additives that are imported from Ireland.

Gro instant milk powder is made of fresh and pure milk. It is especially formulated for children and is recommended for the three-plus growing children. The expert formulation entails essential vitamins, calcium and proteins to give a balanced diet to the children, making their growing years healthy, active and energetic.

Millac Foods is currently engaged in the manufacturing and marketing of dairy products in Pakistan.

 

[Neo]

Pharma industry targets $500m exports ​

Saturday, November 08, 2008

LAHORE: Pharmaceutical industry, encouraged by crossing $100 million mark in exports, is focusing on achieving a target of $500 million by 2013 provided the government ensures elimination of producers of spurious drugs in local markets which affects the industry’s image abroad.

Pakistan Pharmaceutical Manufacturers Association Chairman Kashif Sajjad Sheikh stated this during a visit of Dr Asad Ashraf, Chairman Chief Minister’s Task Force on Spurious Drugs, to the Lahore Chamber of Commerce and Industry. He said the whole pharmaceutical industry would support the government and extend full cooperation in its drive against unqualified people, who were defaming the industry.

The chairman of chief minister’s task force on spurious drugs assured that stern action against all such unqualified people would be taken, who were harming the pharmaceutical industry for petty gains. He said the government was well aware of the fact that a few unscrupulous people were tarnishing the image of the whole pharmaceutical industry, which was not only catering to domestic needs but also earning foreign exchange for the country.

Speaking on the occasion, LCCI President Mohammad Ali Mian said Pakistan had a very vibrant and forward-looking pharma industry. At the time of independence, there were hardly any pharmaceutical manufacturers, “but today Pakistan has about 400 manufacturing units including those operated by 25 multinationals,” he said.

The pharma industry, almost evenly divided between national and multinational companies in terms of market share, meets around 70 per cent of the country’s demand of medicines.

 

[Neo]

Auto industry faces shortage of skilled manpower ​

Saturday, November 08, 2008

ISLAMABAD: The auto industry of the country has been facing a severe shortage of skilled manpower, Auto Industry Development Committee on Human Resources said.

During its meeting held here on Friday, the committee observed that the training institutes of the country were producing only 0.2 to 0.3 million skilled manpower annually, while the requirement of the industry was more than one million.

The meeting was held under the chairmanship of Sikandar Mustafa Khan, Chairman, Millat Group of Companies to identify level of skills required for the industry, said a press release by the Engineering Development Board.

On the occasion, Dr Abid Ghumman, DG, School of Mechanical and Manufacturing Engineering, NUST gave a presentation on Human Resource Development for Auto Parts Manufacturers, it added.

He underlined the importance of training needs of the senior executives in addition to workers and supervisors, adding that four Universities were presenting various types of training courses for Senior Management of the industry but the response from the industry was not encouraging.

The representative of NAVTEC informed the meeting that they were conducting a comprehensive institute-wise survey for collecting data about training facilities in the country. The committee also reviewed the progress made on the decision taken in the earlier meeting.

 

[Neo]

WB loan depends on number of poor Pakistanis ​

Saturday, November 08, 2008

ISLAMABAD: A new controversy has hit the Zardari regime over how many people live below the poverty line in Pakistan with the Planning Commission and the Finance Ministry giving divergent views, which could jeopardise the $500 million loan from the World Bank.

The Planning Commission believes that there are around 35 per cent of the population falling below the poverty line while the Finance Ministry estimates only 22.3 per cent in accordance with the latest official survey.

This controversy, if not resolved immediately, could potentially block the World Bank loan worth $500 million for Pakistan under the Poverty Reduction Strategy Credit (PRSC), which is desperately required to improve the depleting foreign currency reserves.

Under the World Bank conditions, Pakistan will have to prepare the Poverty Reduction Strategy Paper (PRSP), envisaging targets to reduce the prevalence of poverty and establishing social safety nets for obtaining credit line of $500 million from the PRSC. The Finance Ministry is preparing the PRSP document for presenting to a visiting mission of the World Bank but it is completely clueless about which figure is the official line.

“There are two different estimates of the Planning Commission and the Finance Ministry,” sources said and added the World Bank had already validated the official figure of 22.3 per cent in May 2008 and they would not let the authorities to jack up the figure up to 35 per cent without carrying out a new survey.

The Planning Commission’s view is based on the recent endorsement made by its panel of economists in which they used expenditures data of the latest official survey (Household Income and Expenditure Survey HIES 2005-06) but used the recent inflationary figures for projecting the population living below the poverty line up to 35 per cent against the official poverty figure of 22.3 per cent, which was basically found by the Musharraf regime in consultation with the World Bank, which the PPP government also endorsed by allowing to release it through the Economic Survey 2007-08.

“It is a completely wrong methodology to compare apple with oranges,” said one official and added the best way for resolving the issue was to wait for the latest data for the HIES survey and then making an analysis on the basis of recent inflation in order to come up with the latest official figures.

Officials having knowledge of poverty issues are saying that it was not the right thing to use expenditure data of 2005-06. The expenditure pattern of households may also have changed in the last three years, so it is not the right methodology to project the poverty figures.

However, when Chief Economist Planning Commission and Convener of the panel of economists, Dr Rashid Amjad, was contacted for comments, he said there were two estimates on the basis of 2004-05 survey in which the official circles were estimating poverty at 23.9 per cent while the World Bank had estimated poverty at 29 per cent by using another methodology.

“It is unbelievable that the poverty has come down from 29 per cent to 22.3 per cent in one year,” he said and added that the Panel of Economists estimated 35 per cent population living below the poverty line by accepting the World Bank estimates of 2004-05. “Yes, we used expenditure data of household for 2005-06 and applied the latest inflation figures in order to project the prevalence of poverty,” he added.

While referring to the recent statement of Adviser on Finance Shaukat Tareen in which he estimated 50 million people living below the poverty line, he said the Finance Ministry had estimated 22.3 per cent population falling below the poverty line, which declined to around 30 per cent for projection purposes in accordance with the latest estimation. “We estimate that the poverty is standing at around 35-36 per cent,” he added.

When he was asked which figure will be inserted into the PRSP document — 30 per cent or 35 per cent — on prevalence of poverty, he did not offer any answer. This correspondent also tried to contact the Planning Commission Secretary Sohail Safdar but he was not available.

 

[Neo]

Plan for sale of Qadirpur gas field approved: Heavy Electrical Complex and SME Bank also to be privatised​

ISLAMABAD, Nov 7: Prime Minister Yousuf Raza Gilani approved on Friday a plan to privatise Qadirpur gas field, Small and Medium Enterprises Bank and Heavy Electrical Complex.

The decision comes two days ahead of a scheduled meeting of the executive board of the International Monetary Fund (IMF) that will decide about a loan to Pakistan.

The decision, however, ignores strong opposition of trade unions of these units which have threatened to hold protests against the sale of what they said amounted to selling family silver.

Some political circles have criticised the plan to sell national assets at a time when it will be difficult to get a fair price.

While in opposition, the PPP itself had questioned the sale of state-owned units and called for a debate in parliament before any transaction.

Pakistan requires $3.5 billion to $4.5 billion to repay its debts during the current fiscal year. A similar deficit is expected for the next year as well. The government did not disclose the price it expects to get for the units.

The Cabinet Committee on Privatisation (CCOP) headed by the prime minister approved the plan for the sale of 37 per cent shares of Oil and Gas Development Company Limited’s Qadirpur gas field along with the transfer of operational control.

Stressing the need for taking all stakeholders on board, Mr Gilani urged the ministry of privatisation and the Privatisation Commission to address ‘all concerns’ before the gas field’s privatisation.

He said that quality players should be brought in for accelerating exploration and production.

Stressing the need for maintaining ‘utmost transparency’, Mr Gilani urged the ministry of privatisation to ensure that investors ensured creation of new job opportunities besides protecting jobs of existing employees.

The CCOP also approved the severance package agreed with the SME Bank employees and the bank’s valuation.

The bank’s transaction will include divestment of 93.88 per cent government shareholding along with the transfer of management control. The SME Bank has an unrestricted commercial banking licence.

The potential buyer will have to retain the name ‘SME Bank Ltd.’ for one year after the sale and maintain its charter for at least three years.

The government of Pakistan will retain the right to appoint at least one director on the board of directors.

The CCOP also approved the valuation of Heavy Electrical Complex and directed the Privatisation Commission to go ahead with the bidding process.

The buyer “shall continue to operate the company’s manufacturing facility and shall not in any way abandon, cease to operate or otherwise shut down the existing company manufacturing facility”.

The cost of ‘Golden Handshake Scheme’ for permanent workers and Voluntary Separation Scheme for the executives will be shared equally by the new buyer and the Privatisation Commission. The bidder shall bid on the basis of audited accounts of June 2006 and may also factor in the latest un-audited accounts available prior to the bidding.

 

[Neo]

Export of alcohol fetches $220m​

KARACHI, Nov 7: The country earned around $220 million on export of little over 0.3 million tons of alcohol up to Oct 31 while another 50,000 tons of alcohol is expected to be exported during the November-December period.

The country produced around 2.661 million tons of molasses during 2007-08 sugarcane crushing season and on adding 50,000 tons of carry-over stocks at terminals and an equal quantity at the mills, the total available stocks of molasses stood at 2.761 million tons, industry and export sources said.

Since conversion ratio of molasses to alcohol stands at 5:1 (five tons of molasses required to produce one ton of alcohol), the estimated requirement of distilleries stood at 1.650 million tons for molasses.

Sources said alcohol prices in the world market remained on the upper side during 2008 which enabled the country to earn more foreign exchange through exports. After touching around $800 per ton, alcohol prices receded back to $600 per ton.

Consequently, on exporting around 312,000 tons up to October 31, 2008, at an average price of $725 per ton, the country managed to earn around $220 million through export of alcohol.

According to industry sources, the country exported around 1,90,585 tons of alcohol last year (2006-07) and earned $112 million at an average price $550 per ton.

With advent of each sugarcane crushing season, the country had been exporting millions of tons of molasses at throwaway prices to European countries and Japan, Mohammad Kasim Hashim, chairman, Terminal Association of Pakistan (TAP), said.

However, for the last several years it is being converted into three grades of alcohol i.e. fuel or anhydrous, neutral or extra neutral (ENA) and industrial or rectified ethanol (REN), Mr Hashim said.

Presently around 16 distilleries are operating in the country at 60 per cent capacity, he added.

The TAP chief further stated that as more and more distilleries are coming up every year, there has been a constant rise in export of alcohol.

During 2004, the country exported 99,711 tons of alcohol, but in the subsequent year, the figure jumped to 122,104 tons.

After exporting around 255,812 tons last year (2007), the country is now poised to export a record volume of 350,000 tons of alcohol this year (2008), he maintained.

He said around 9,000 tons of alcohol had been exported this year through ISO containers which were the latest method for haulage of liquid cargo.

Giving some details, Mohammad Kasim Hashim said that ISO containers/tank are filled with alcohol from distilleries and loaded on trailers for direct loading on to ships.

These tanks are air-tight and expensive because they are first cleaned by steam and are used only after survey is carried out.

He, however, said that the industry is encouraging use of ISO tanks because they are fast for haulage of liquid cargo and are also easy to handle.

Presently they are mostly reaching Dubai, but in coming years will encourage their use for Middle East and Africa, he added.

Export of alcohol is being hindered by congestion at the Karachi Port where tanker ships have to wait for their turn for several days, resulting in heavy demurrage charges.

This is also draining out valuable foreign exchange because demurrage is paid in dollars, TAP secretary Sultan Ahmed complained.

 

[Neo]

Pakistan losing jobs in ship scrapping: UN review​

RAWALPINDI, Nov 7: While the boom in shipping is creating new jobs in shipbuilding countries of Asia, employment is lost in countries of the sub-continent, including Pakistan with high ship scrapping activity.

The latest review of Maritime Transport released by the United Nations Conference on Trade and Development (Unctad) says shipping operators faced with considerable losses may also decide to scrap older tonnage, which has potential implications for steel prices as well as for jobs in major ship-breaking nations.

Such intensified ship-scrapping activities pose further challenges for safety, health and environmental conditions in the countries of the sub-continent. The trend in the demolition and recycling of ships is correlated with the trend in the delivery of ships; while 2007 saw record highs in new buildings, it also saw record lows in demolitions.

In total, demolitions were equivalent to only 0.4 per cent of the existing world fleet. Tanker tonnage continues to assume the highest share among the vessel types demolished in 2007, with 2 million deadweight ton (DWT), corresponding to half the year’s total.

The category of other vessel types increased its share to almost half, reaching 1.9 million DWT in 2006, while hardly any dry bulk carriers were demolished in 2007, and a reflection of the high demand for older tonnage of this type of vessel, which is used to carry the main dry commodities, including grains.

The average age of demolished ships in 2007 was highest for general cargo vessels (34.9 years), followed by tankers (31.4 years), containerships (29.6 years) and dry bulk carriers (29.1 years). For all vessel types, the average age at demolition has increased significantly since the beginning of the decade, albeit with some fluctuations.

In general, scrapping activity is negatively correlated to developments in freight rates, as high freight rates reduce the economic interest of owners to sell their vessels to scrap yards.

The Unctad report shows that international seaborne trade surged to record levels last year but has since declined because of the financial crisis, jeopardising the health of many developing countries, especially those that depend on commodities.

The review of the maritime transport finds that seaborne trade surpassed 8 billion tons last year and reached a peak at the start of this year.

But the report highlights that the Baltic Dry Index (BDI) – an indicator that predicts future economic activity by measuring global supply and demand for the commodities shipped aboard dry bulk carriers – declined by over 90 per cent between May 2008 and early in October.

Such a decline indicates that the unfolding financial crisis has spread to international trade, with negative implications particularly for commodity-reliant developing countries.

While a drop in fright rates would be an immediate effect of a falling BDI – which would be beneficial for exporters or importers of food and commodities – a declining index is also accompanied by reduced demand for shipping services, increasing the effects of the financial crisis and global demand for goods.

The report reveals that by 2008 the total world merchant fleet had expanded by 7.2 per cent to reach 1.12 billion DWT. Likewise, the order booked for new vessels in 2008 was at its highest level ever, with over 10,000 ships, marking a 28 per cent increase on the current merchant fleet.

In the meantime, the declining BDI has also led international port terminal operators to announce the suspension of some major port expansion plans owing to the foreseen decline in demand for shipping services.

With more than 80 per cent of international trade in goods carried by sea, and an even higher percentage of developing-country trade carried by ships, the review of maritime transport, an annual publication prepared by Unctad, is an important source of information on this vital sector.

The challenge for developing economies remains how to achieve or maintain revenue collection and provide security procedures whilst financing change and reducing bottlenecks. Ports are facing increasing demands for a quick turnaround of vessels from customers with ever increasing size of ships.

Improving turnaround time by increasing port performance is, however, no easy task, for the main bottleneck is in crane handling. Ports have not made any significant breakthroughs in container handling, even with the arrival of tandem lift and triple lift cranes.

Noting that port developments around the world continue at an uneven pace, the report welcomed that in Pakistan, plans were announced to dredge the Port Qasim to 10.5 metres, while HPH was to build a new container terminal in Karachi.

 

[Neo]

$9bn IMF loan over two years​

* Official says Pakistan will get $1.5bn now, remainder in quarterly instalments
* IMF to ask govt to cut deficit, improve tax collection​

LAHORE: Pakistan is likely to sign a $9 billion agreement with the International Monetary Fund (IMF) next week to come out of its economic crisis and shore up its dwindling foreign exchange reserves.

The agreement is expected to be signed between November 10 and 12, Dawn News quoted an unidentified official as saying on Friday.

According to Prime Minister’s Adviser on Finance Shaukat Tareen, Pakistan needs $10 billion to $15 billion to avoid a balance of payments crisis and make adjustments over the next two years.

According to the channel, the official said though the IMF had not announced the size of the aid package, Pakistan would get about $9 billion over two years.

He said Pakistan would get $1.5 billion immediately while the remaining amount would be received in quarterly instalments.

The IMF is expected to ask the Pakistani government to cut fiscal deficit, improve tax collection and reduce the current account deficit, the channel said.

Pakistan needs $3.5 billion to $4.5 billion quickly to fill a financing gap.

Total foreign reserves, including those held by commercial banks, have fallen sharply from $16.5 billion in October 2007 to $6.76 billion on November 1, of which the State Bank of Pakistan accounted for $3.53 billion.

The State Bank’s reserves are less than September’s total imports of $3.807 billion.

Big payments for oil and wheat have been major factors behind Pakistan’s widening trade deficit.

The government is also hoping for assistance from the Friends of Pakistan forum – consisting of China, Saudi Arabia and the United States - which is due to meet in Abu Dhabi on November 17.

Pakistan last entered an IMF programme in December 2001, when it was granted a $1.5 billion poverty reduction and growth facility. It received $1.26 billion under the three-year programme but declined the last two tranches in November 2004.

In an interview with Reuters, Tareen said Saudi Arabia had given a positive response to a Pakistani request for crude oil on deferred payments but had yet to decide how much it could give. Pakistan imports about 82 percent of its crude oil from Saudi Arabia. daily times monitor

 

[Neo]

China to help agri sector in research, technical areas​

KARACHI: China will help to broaden the long-term scientific collaboration in research and technical areas in agriculture sector as a Memorandum of Understanding (MoU) has already been inked in this regard.

According to a member on crop sciences PARC, Dr Ghulam Jilani on Friday, the Pakistan Agricultural Research Council (PARC) and Chinese Academy of Agricultural Sciences (CAAS) would co-operate in water resource management, hybrid cotton, maize, horticulture and other transgenic crops.

He said CAAS and the PARC under Ministry of Food, Agriculture and Livestock (MINFAL) reaffirmed their mutual interest focusing on the broad areas of science and technology. These departments are focusing on the natural resources for preservation and profitability of agriculture in both the countries, he added.

The agro-economic experts, PARC and CAAS scientists will pay reciprocal visits to collaborate in new areas of research or plan for additional long-term exchanges, Dr Jilani added. He said the PARC and CAAS would work for mutual benefits in animal science, plant science, soil science, agriculture, natural resources management and other related fields with mutual consultation. The MoU is intended to serve as a framework for discussion and co-ordination in matters related to agriculture and natural resources managements. It will also facilitate collaborative activities between both sides in matters of science and technology.

The individual projects should be mutually developed by PARC and CAAS and their institutions will co-operate on the basis of specific research and development besides the CAAS may arrange short and long-term academic training in its institutions in various areas for PARC, he added.

The Chairman Fruit and Vegetable Processors and Exporters Association (FVPEA), Mateen Siddiqui said both the countries would encourage and facilitate direct contact among the relevant institutions and specialists and work toward long-term co-operation in agricultural research, exchanges, training and development programmes.

 

[Neo]

Govt approves 3 projects worth Rs 17.75 billion​

* Other important projects to be approved in ECNEC meeting today​

ISLAMABAD: The government approved projects of national importance with a total cost of Rs 17.75 billion. The projects are 'construction of 100 delay action dams in Balochistan: Package-I (20 dams)', 'construction of Shadi Kaur dam, appurtenant works and related irrigation system', 'revamping/rehabilitation of irrigation and drainage systems'.

These projects were approved in the Executive Committee of National Economic Council's (ECNEC) meeting held on Thursday while some of the important projects would be approved today (Saturday).

The ECNEC approved 'Construction of 100 delay action dams in Balochistan: Package-I (20 dams)' at a cost of Rs 2.15 billion. Under this project, 20 delay action dams will be constructed in districts of Awaran, Kallat, Bolan, Chaghi, Gwadar, Khuzdar, Killa Abdullah, Killa Saifullah, Kech, khuzdar, Lasbela,,Loralai, Mastung, Musakhel, Panjgoor, Dishin, Quetta, Washuk, Ziarat and Zhob of Balochistan.

The project on completion would add 55,000 acre feet (AF) of additional water, which would benefit 35,000 acres of agricultural land. It would also recharge the groundwater, which would help to maintain the water table. More than 13,000 households would benefit from the project. The dams would be completed in three years.

During construction of dams more than 5,000 skilled and non-skilled personals would be engaged from the province of Balochistan providing livelihood for the local community. Gross value of the production of crops would increase from Rs 17.42 million to Rs 389.53 million yearly and per acre income would increase from Rs 12,778/ to Rs 25,650 yearly. The project would be financed by the federal government. The ECNEC directed fast track completion of the project with international financial assistance and additional resource mobilisation for the project.

The ECNEC, on first day of the meeting also approved 'Construction of Shadi Kaur dam, appurtenant works and related irrigation system' at a cost of Rs 2.637 billion. The dam would be constructed at 50 km north of Passni, district Gwadar with storage capacity of 37,000 AF. The safety of the dam would be ensured by a proper engineering design. The construction of the dam would provide water for irrigation of 7,600 acre of land for crop production. The project would also be a source of drinking water for 15,000 persons. As the dam would store the floodwater hence it would also mitigate the flood hazards. The project would be completed through 260 professionals and an additional 10,390 full time jobs will be generated for the local community after completion of the project. The ECNEC desired to complete the project on fast track basis and to explore the possibility of international financial assistance and additional resource mobilisation for the project.

The meeting also approved 'Revamping/rehabilitation of irrigation and drainage systems in Sindh' project costing Rs 12.963 billion. The main objective of the project is to improve the operational efficiency by ensuring safety of the canal system and delivering due share of water to the farmers at the tail reaches (end of the canal). This will be achieved through strengthening of canal and drain banks (8,082 km long), silt clearance of branches (3,635 km), stone pitching of canal bank (380 km), repairing or remodeling of 241 regulators, rehabilitation of 201 bridges, repair and extension of 11,725 modules, revamping and rehabilitation of Salinity Control and Reclamation Project (SCARP) tube-wells and re-sectioning of 568 km surface drain. The ECNEC directed completion of the project on fast track basis and to explore the possibility of international financial assistance and additional resource mobilisation for the project.

The meeting also approved several other important projects, and some will be approved today (Saturday). Prime Minister Syed Yousuf Raza Gillani will chair the meeting.

 

[Neo]

'Pakistan accepts most of IMF terms' ​

ISLAMABAD (November 08 2008): Pakistan has agreed with most of the conditionalities of International Monetary Fund (IMF), and its executive board is expected to meet next week to take final decision to help Pakistan in paying foreign debts. Official sources said that IMF executive board would meet some time next week. There is a possibility that the board will meet on November 10. However, the IMF has, so far, given no schedule of the meeting on its website.

Under the standby facility, Pakistan has requested for a loan of $9 billion for the next two years. Sources said that the board would meet just a few days ahead of the scheduled meeting of the 'Friends of Pakistan' (FOP) in Abu Dhabi. Some circles were of the view that Pakistan would not get more than $7 billion. Pakistan needs over $4 billion for payment of its debts. The amount is also needed to improve the country's falling forex reserves.

The IMF wants Pakistan to stop providing foreign exchange by the State Bank in opening LCs at the time of oil import, and abolishing the intervention in currency market by the central bank. These two conditions were put by the IMF, and the government accepted these conditions, sources said.

 

[Neo]

Saudi Arabia likely to provide $4 billion and oil facility ​

RIYADH (November 08 2008): Saudi Arabia has agreed to give $4 billion to Pakistan, and provide oil facility on one-year deferred payment, sources here said. During the meeting between King Abdullah bin Abdul Aziz and President Asif Zardari, Saudi Arabia agreed to provide economic assistance and oil on one-year deferred payment.

Sources said a formal announcement in this regard would be made at the meeting of the 'Friends of Pakistan', to be held on November 17 in Abu Dhabi. They said that Pakistan aims to accumulate $25 billion, which is 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 had also agreed to provide oil to Pakistan on one-year deferred payment, for which the agreement is expected to be signed soon.

Sources said that Pakistan needed more than $5billion, 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 will be meeting in Abu Dhabi on November 17 to devise ways for stabilising Pakistan's economy.

 

[Neo]

Chinese focus on Pakistani market ​

KARACHI (November 08 2008): China considers Pakistani market a source of great opportunities and its key areas of focus and exploration in Pakistan include oil exploration, trade and investment in refining and services sector, according to official sources here. China is a global driver of economic growth and has undergone massive growth in productivity.

Its increasing linkages with international economy have also led to important transfer of technology, especially in developing countries such as Pakistan and other countries in South Asia.

Leading Chinese companies operating in Pakistan include white goods maker Haier, Shenzhen based telecommunications firm ZTE, Shanghai based electronic giant SVA, and a number of motorcycle companies from Chongqing. The demand for Haier's quality electrical appliances exists all over the world. According to experts, "Haier is no longer a simple label; its service and management will lead the modern Chinese economy to create more well-known brands."

Bilateral trade between China and Pakistan was more than $7 billion in 2007, and the two sides have set a target of $15 billion annually by 2011, according to Xinhua news agency. China is the second largest economy in the world with a GDP of over $6.9 trillion (2007), measured on purchasing power parity (PPP) basis. "China would grow by more than 11 percent, and India at around nine percent this year, with almost equal rates in 2008," according to Rodrigo Rato, Managing Director of the International Monetary Fund (IMF).

During his recent visit to China, Pakistan's President met chiefs of China National Petroleum Corporation (CNPC), China Mobile, Huawei Technology and ZTE Electronics. These leaders vowed to enhance bilateral economic co-operation between industrial and business communities. The two countries will focus on enhancing 'connectivity' by developing new communication links including fibre optic links, according to Pakistan-China recent joint statement.

China will launch a telecommunication satellite, 'PakSat-1R' for Pakistan in 2011, according to Xinhua report. Pakistan will use this satellite for domestic telecommunication and broadcast services. The contract for this initiative was sealed on October 15, 2008 in the presence of both Presidents from China and Pakistan.

CNPC "is already carrying out large-scale construction in Pakistan," with over 300 employees working in Pakistan, said the Director General of CNPC, Zhang Xin. Telecommunication is a booming sector in Pakistan, and has immense support from China's leading telecommunication companies to enhance and improve service in the country. China Mobile has invested $800 million in its first international venture Zong, and plans to expand its project further to expand Zong network in Pakistan.

Huawel Technology is the Number One telecom solution provider and is the only vendor serving all the mainstream telecom operators in Pakistan including PTCL, Ufone, Mobilink, Telenor, Warid, Zong, etc.

Also, San Ya Fang has donated equipment valued at one million dollars for establishment of e-government project initiative taken by Pakistan Government. A growing priority for Chinese leaders is scientific and technological modernisation. China's key areas of interest include microelectronics, telecommunications, computers, automated manufacturing, and energy.

 

[Neo]

'Energy crisis to be overcome with increased power generation' ​

ISLAMABAD (November 08 2008): Director General Energy Management Pepco Tahir Basharat Cheema on Friday said a number of power generation projects are at various stages of completion to meet the soaring consumer demand. Talking to a private TV news channel, he said energy crisis could be overcome with increase in generation and control of wastage of electricity with a range of conservation measures.

The DG Pepco said a number of rented power plants and IPP run plants would be brought into operation. A 1000-megawatt power plant acquired on one year rent would be available for power generation from April 2009 to June 2009. A set of hydel power plants with the generation capacity of 516 megawatts will become operational in coming months.

Fifteen IPPs are working on high efficiency thermal power plants having generation capacity of 2868 megawatts. One of them, Attock power plant will start working soon followed by two plants in Nandipur and Chechokimalyan. Building of micro hydel power projects is also continuing, he added.

The government has set its eyes on the Thar coal project, which has reserves of 184 billion tonnes of the mineral resource enough to supply 100,000 megawatts for more than 400 years. The government has set up Thar Coal Authority with the objective to produce 10,000 megawatts of low cost electricity.

The DG Pepco said work is continuing on five hydel power projects. Neelum Jhelum and Diamer Bhasha dams would produce 1000 megawatts after their completion. Alternate Energy Development Board is working on a project to produce 350 megawatts in next few years. He said although Pepco is now not resorting to loadshedding but the energy crisis has not diminished yet.

He said power sector is intensive needing massive investment but this vital sector was ignored in the previous years. In developing countries, he said power load growth of two to three percent is seen. However in developed countries, mostly there is negative load growth because they are moving towards energy efficiency by increasing production and reducing usage. In Pakistan energy demand grew by 10 percent.

He said during the previous years it was decided that new thermal plants would not be installed by Wapda but by the private sector. Private power infrastructure was established through one widow operation to encourage private investment but this measure could not enhance electricity production, he added. Experts have warned since 2005 about the energy crunch. The government was banking on various under construction power plants to save country from power shortages.

He termed complacency as the main reason for the power crisis, which stifled the economy. He said the government gave relief to the consumers who paid 60 percent of the bills last month. The DG Pepco said the government is introducing a new concept of smart metering using digital meters, which are interactive and accurate. Old meters were tardy and slow and people were having complaints.

 

[fatman17]

NDU seminar: ‘Economy facing serious macroeconomic challenge’

Staff Report

ISLAMABAD: The state of economy of any country has a direct bearing on the security and sovereignty of that country, said National Defence University (NDU) President Lieutenant General Muhammad Hamid Khan on Friday.

According to a press statement of Inter-Services Public Relations, Khan said this while addressing a daylong seminar on “Pakistan’s Economy: Challenges and the Way Forward” held at the NDU and attended by representatives from various ministries, divisions, departments, armed forces of Pakistan, academia and think tanks, course participants and faculty members of the NDU.

He said that Pakistan’s economy was under great pressure facing a serious macroeconomic challenge that had been caused by both exogenous and endogenous factors.

He highlighted role of the NDU as a premier institution of learning and research for senior officers of the Pakistani armed forces, civil services and allied officers.

Noted economists Dr Ishrat Hussain, Sartaj Aziz, Dr Mirza Ikhtiar Baig, Saeed Ahmed Qureshi, Kaiser Bangali and Riaz Riazuddin were among the speakers while Mueen Afzal was moderator of the event.

The seminar focused on the theme “Pakistan’s Economy” in three sessions.

“Analysing Macroeconomic Strategies/Policies with Focus on Performance and Challenges,” “Strategy to Deal with Macroeconomic Challenges” and “Economic Governance” were the sub themes.

It was part of the series of conferences, seminars and workshops, which had been regularly held on different subjects of national, regional and international interest. Such events provide a forum to seasoned economists to review issues pertaining to Pakistan’s economy, evaluate existing and emerging challenges and propose a way forward.

The seminar was designed to be interactive through presentations by eminent economists, comments by the moderator followed by question and answer sessions. The discussion held was frank and highly informative for the government representatives as well as the academia.

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