Pakistan Economy - News & Updates - Archive

[Kaiser]

Coastal to invest $5.8b in Pakistan automobile plant

A prominent foreign group has decided to invest $5.8 billion in Pakistan to manufacture Mercedes-Benz trucks, buses and cars.

Coastal Group would make all the financial investment in the project, while Daimler Chrysler would provide technology transfer.

Daimler Chrysler and Coastal Group are believed to be creating a big vendor industry in the process. The group would set up their plant on 1,200 acre plot near Shaikhopura, Lahore.

"This huge investment would create 5,000 jobs directly and indirectly," said Umar Ahmed Ghumman, minister of state for privatisation and investment and chairman Board of Investment (BoI) at a news conference yesterday.

It was on May 7,1998 that two of the world's leading car manufacturers, the German Daimler-Benz AG and the USA-based Chrysler Corporation, announced their merger. The new company called Daimler-Chrysler became the world's fifth-largest car maker with combined revenues of around $130 billion, operating profit of around $7billion, and a workforce of more than 420,000 employees.

The minister said the groups would export products to neighbouring countries as well as to the Gulf region, which would earn billions of dollars in foreign exchange for Pakistan. A training institute conforming to international standards would also be established in Pakistan.

An industrial estate (vendor industry) would also be set up to locally produce spare parts as per European standards for local and export purposes, Mr Ghumman said.

Responding to a question about the reported violation of rules in import of Black Cabs from the United Kingdom, Mr Ghumman said: "We are importing duty-free 300 Black Cabs for testing purposes. The government had to give this facility in order to invite $1billion investment from Prime Transport Limited to assemble, manufacture and operate London taxis in Pakistan under joint venture partnership with LTI of UK and ST Electronics of Singapore."

The minister said 150 of the Black Cabs would be tested in Karachi, 100 in Lahore and 50 in Islamabad to conform to the local conditions while manufacturing the cabs locally. He said no rules of the Public Procurement Regulatory Authority (PPRA) had been violated as the matter did not involve any investment by the government and the investment did not involve any scam. "I have no personal connection with the person who has invested the money. He is a Pakistani. His name is Dawood Khan and he belongs to Karachi. He wanted to introduce a secure and safe taxi system in Pakistan after a 15-year-old girl from his family was raped and killed by a taxi driver," he said.

The minister said no one was ready to provide such an investment for purpose-built Black Cabs, but still tenders were invited in various newspapers to ensure transparency, he said.

The minister said that as per the agreement, the London taxis would charge Rs11 per kilometre, which was reasonable. He added that the manufacturing plant for Black Cabs was being set up in Gharo, Sindh, on a 300 acre plot. The plant had to be shifted to Pakistan because the manufacturing of a single Black Cab required 43,000 sterling pounds in the UK compared to the 22,000 sterling pounds in Pakistan.


http://www.menafn.com/qn_news_story_s.asp?StoryId=1093116823

 

[Kaiser]

World's Youngest CEO To Set Up Office In Pakistan


BANGALORE, June 17 (Bernama) -- India's Suhash Gopinath who shot to fame as the world's youngest CEO at the age of 14, said he would avail of Pakistan's offer of land to set up an office of his Globals Inc firm, Press Trust of India (PTI) reports Friday.

However, Gopinath is aware of the threats from some Islamic organisations warning him not to do so.

"Pakistan Prime Minister Shaukat Aziz invited us to expand. We are opening our office in Karachi which will be sponsored by the Pakistan government," the 19-year-old said.

Gopinath was recognised as the youngest CEO when he founded his company as a teenager in the US because the law did not permit him to do so in India.

While being happy at Pakistan's response, Gopinath said some Islamic organisations sent emails and hacked his company's website warning him not to open an office in Pakistan.

He was speaking to reporters here after meeting H D Kumaraswamy and said the chief minister assured him the government would provide him a building here to shift his company headquarters from California to Bangalore.

Gopinath said his company would also be hosting a Young Leaders conference in Bangalore in September at which Aziz would address the gathering through videoconferencing.

The teenager said he had been invited by British Prime Minister Tony Blair to set up an Entrepreneurship Cell in Britain so that his "success story" could inspire youngsters there.

Globals Inc employs 600 persons across 13 countries including 25 in Global ITES Pvt Ltd in India.

-- BERNAMA


http://www.bernama.com.my/bernama/v3/news.php?id=203768

 

[Kaiser]

Record $506.57m workers’ remittances in May
Staff Report

KARACHI: The country received record workers' remittances in May this year as overseas Pakistanis remitted an amount of $506.57 million against $358.30 million received in the same month of last fiscal year.

The growth in remittances in May depicted an impressive increase of $148.27 million, or 41.38 per cent over the corresponding period of previous year, the data provided by the State Bank of Pakistan (SBP) shows.

The remittances in July-May of 2005-06 also registered a growth as in 11 months of the current fiscal year Pakistan received $4,136.25 million as workers' remittances as against $3,809.81 million received in the corresponding period of the last fiscal year, registering an increase of $326.44 million, or 8.57 per cent.

The amount of $4,136.25 million includes $11.10 million received through encashment and profit earned on Foreign Exchange Bearer Certificates and Foreign Currency Bearer Certificates.

Despite the growth in remittances, which is the second largest source of foreign exchange inflows after exports, the huge increase in the current account deficit, caused by a widening trade gap is a source of worry for the economic managers of the country.

According to analysts, the total remittances are likely to touch $5 billion this fiscal year against an estimated trade deficit of more than $11 billion for the whole fiscal, however they believe that remittances would cover only a nominal part of the trade deficit.

They said that trade deficit went on growing so rapidly since the beginning of this fiscal year that remittances from overseas Pakistanis that used to bridge the trade deficit gap to a large extent is now unable to do it because of huge deficit on the back of higher oil and machinery bills.

The first 10 months' data indicates that Pakistani workers remitted $313.14 million, $348.41 million, $341.10 million, $372.50 million, $308.81 million, $371.24 million, $391.32 million, $358.13 million, $423.56 million and $401.47 million in July, August, September, October, November & December, 2005 and January, February, March & April, 2006, respectively. The monthly average remittances in the period under review amounts to $376.02 million as compared with $346.35 million during the same period of last fiscal year.

The inflow of remittances during the 11 months of the current fiscal year from the USA, Saudi Arabia, the UAE, the GCC countries (including Bahrain, Kuwait, Qatar and Oman), the UK and EU countries amounted to $1,119.34 million, $670.93 million, $635.54 million, $537.39 million, $400.00 million and $109.92 million, respectively, as compared with $1,184.93 million, $567.54 million, $652.11 million, $471.85 million, $338.21 million and $92.26 million during the corresponding period of the last fiscal year.

The accumulative remittances inflow from Canada, Australia, Norway, Switzerland, Japan and other countries during July-May 2005-06 amounted to $652.03 million as compared with $487.76 million in the corresponding period of last fiscal year.

Another healthier sign, the data says, is the increase in the inflow of remittances into Pakistan from almost all countries of the world increased last month as compared with May 2005.

The country-wise break-up shows that Pakistan received workers' remittances during May 2006 from the USA ($124.56 million), Saudi Arabia ($86.29 million), the UAE ($79.70 million), the GCC countries, including Bahrain, Kuwait, Qatar and Oman ($60.09 million), the UK ($53.60 million) and EU countries ($12.86 million) as compared with the corresponding receipts from the respective countries during the same month of the last fiscal year, ie, $108.71 million, $61.32 million, $71.24 million, $45.90 million, $28.22 million and $9.01 million.

The total remittances received from Canada, Australia, Norway, Switzerland, Japan and other countries during May 2006 amounted to $89.18 million as compared with $30.49 million during the same month of last fiscal year.

 

[Kaiser]

US-based Kuwait co to invest $1.2b in oil sector in Sindh

FROM OUR CORRESPONDENT
Karachi - US based Kuwait company would set up ‘mega oil refinery’ in Sindh province, which would bring investment of 1.2 billion dollars.
Sindh Government and California-based Kuwait company Z-Tech on Friday signed Memorandum of Understanding at Chief Minister’s House. The refinery would refine around 150,000 barrels oil daily. Chief Minister Sindh, Dr. Arbab Ghulam Rahim on this occasion pointed out that the province was fulfilling around 70pc needs of oil and gas of the country. He declared that Sindh Government was determined to set up ‘industrial zones’ in the province and would take every possible effort to promote local and foreign investment. He assured all cooperation and assistance to the possible investors.
The CM’s Advisor on Finance M.A. Jalil, Secretary Labour Nasir Hayat, Secretary Land Utilization Khalid Mehmood Soomro, Director Z-Tech company Sheikh Hamood Daud al-Saba, Chief Coordinator Zafar Ali and Chairman Investment Cell of the CM Muslim Abbasi and others were present during the ceremony.

http://www.nation.com.pk/daily/june-2006/17/bnews5.php

 

[Kaiser]

http://www.dailytimes.com.pk/default.asp?p...0-5-2006_pg5_10

Kuwaiti group plans oil refinery in Pakistan

ISLAMABAD: Chairman Kuwaiti ZETECH Group Sheikh Hamood Al- Sabah accompanied by chairman of Kuwait-Pakistan Investment Group, Abdul Azeem Al-Shomali called on minister of state for Petroleum and Natural Resource, Muhammad Naseer Mengal on Friday and expressed his group’s interest to set up an oil refinery in Pakistan.

The chairman ZETECH Group commended the speedy growth of Pakistan’s economy and vast investment potential in the oil and gas sector. He said his group would invest in setting up oil refinery, besides participating in privatization activities. The minister said there existed a huge potential for the prospective investors in Pakistan’s oil and gas sector and government would welcome as well as facilitate Kuwaiti Group in setting up oil refinery.

He said government was offering lucrative incentives to the investors in an investors-friendly environment. Mr Mengal said government was also exploiting the untapped oil and gas resources to meet growing energy need of the country. Investors would be encouraged to set up oil refineries in Pakistan to enhance refining capacity form 6 million tons to 13 million tons annually. APP



Pakistan asks Kuwait to set up large-size oil refinery
01-10-01 Pakistan has asked Kuwait to set up a large-size oil refinery in the Hub coastal area to partially meet over 10 mm tons product deficit per annum starting next year. Sources close to Petroleum Minister Usman Aminuddin told that Kuwaiti authorities were given a green signal around a month ago to come up with a formal proposal to this effect.
This comes amid reports that the $ 1.2 bn Iran-Pakistan Refinery Project that was to be constructed by Tehran near Hub is not forthcoming and Islamabad would be faced with large shortfalls after a year, these sources said. The federal government has planned to increase oil supply coverage to a level equivalent to 45 days' consumption to meet any future long-term strategic needs but at least two refineries were required to plug the supply-demand gap.

The petroleum ministry was directed by economic coordination committee (ECC) of the cabinet last month to remain extra vigilant about demand and supply position of petroleum products and to further augment thereserves position. Kuwait, these sources said, wanted to bring in its own heavy crude for refining in the coastal areas. The authorities were now working on a detailed technical proposal to be submitted to the Pakistan government shortly.
Pakistan's total consumption is expected to increase to 20.5 mm tons by 2002-03 and 23 mm tons by 2005-06. The existing refineries are currently producing around 10.5 mm tons that means the deficit will be 10 mm tons in 2002-03 and 16 mm tons in 2005-06.

The Iran-Pakistan refinery was scheduled to be completed by 2005 at Khalifa Point in Balochistan to refine around 6 mm tpy oil but differences between the two governments on product specifications and certain other issues did not let the project moving, official sources said. "The Iran-Pakistan Refinery Project is now history," said a senior official.


http://www.gasandoil.com/goc/news/nts14567.htm

 

[Kaiser]

Kuwait, Saudi firms vie for $2bn Pakistan refinery project
[Tuesday, April 18, 2006 4:29:00 pm]

Kuwaiti and Saudi firms are bidding to build a $2bn oil refinery in Pakistan's troubled province of Baluchistan, Kuwait Times reported. The refinery to be commissioned by 2010 would have a maximum refining capacity of 13 million tons of petroleum products, which would be higher than the country's total existing capacity of 12.8 million tons. Pakistan's major suppliers are Saudi Arabia, the UAE and Kuwait and total oil imports amount to around $3bn.

http://www.strategiy.com/news_briefs_insid...60418122912&h=1

 

[Kaiser]

Kuwait to Invest Over $2bn in Pakistan
Azhar Masood, Arab News


ISLAMABAD, 19 June 2006 — Kuwait is set to invest over two billion dollars in Pakistan. This was revealed by Minister of State for Board of Investment and Special Initiatives Omar Ghuman prior to Kuwait Emir Sheikh Sabah Al-Ahmad Al-Sabah’s visit to Pakistan today.

Ghuman said two MOUs will be signed between Pakistan and Kuwait during the visit. One will deal with investment in real estate and hotel industry and the other with the establishment of an oil refinery at Gawadar with the refining capacity of 100,000 bpd.

Ghuman said Kuwait’s Noor Group of Financial Investment Company will be investing in real estate and hotel industry. He also disclosed that an investors’ conference will be held in Islamabad on June 20 which will be jointly inaugurated by Prime Minister Shaukat Aziz and the Kuwaiti emir.

This will be the first visit to Pakistan by the Kuwaiti emir.

Foreign Office officials said Sheikh Sabah will hold talks with President Gen. Pervez Musharraf on a variety of subjects including the regional situation, bilateral relations and possibilities of Kuwait’s investment in Pakistan.

Officials said some bilateral agreements would also be signed between Pakistan and Kuwait during the visit.



http://story.irishsun.com/p.x/ct/9/id/2e97...d771c7290844e9/

 

[Kaiser]

http://www.nation.com.pk/daily/june-2006/16/bnews5.php


$36b foreign investment likely in next 5 years

From HAQ NAWAZ

ISLAMABAD-Pakistan projects to bring foreign investment worth US $ 36 billion in the different sectors of the economy in the next 5 years.

Claiming this highest ever expected investment inflow into the country, the Minister of State for Privatisation and Investment Umar Ahmad Ghuman told a press conference here on Thursday in the Parliament house that likely investment would be attracted through a number of new ventures in the country.

These projects include London Taxi International equipped with modern gadgets like satellite tracking will be plying on roads of Karachi, Lahore and Islamabad from July this year.

When asked to explain the factors raising the FDI to record over US $ 3 billion, instead of replying to the questioner he advised him to consult the website of BOI.

“The data of FDI reflects 42.5 percent investment from UAE including PTCL privatisation proceeds, 13.9 percent from USA and 9.1 percent from Saudi Arabia are the main factors making the investment figure at over US 3 billion in 10 months,” the official data on website reports.

According to the economic analysts, this record FDI is mainly due to the huge amount of Rs 218 billion privatisation proceeds during the current fiscal including selling of PTCL, KESC, PSMC, Pak-American Fertilizers limited etc.

However, he admits the London Taxi International LTI) was shrinking its business in the UK due to heavy cost. “Yes, this company is fading out there,” he said.

The government allowed duty-free import of 300 black-cabs (CBUs), while the Prime Transport Limited, a company owned by a US based Pakistani Daud Khan would invest $1 billion for setting up an assembly plant of LTI at Gharo in Sindh province.

A number of ministers including State Minister for Foreign Affairs Khusro Bakhtiar, State Minister for Finance, Umar Ayub Khan, State Minister for Environment, Malik Amin Aslam, MNAs, Dr Donya Aziz and Waqas
Akram Sheikh were also present on the occasion.

He said that President General Pervez Musharraf will inaugurate the London Taxi terminal at Karachi Airport by the end of July, while Prime Minister Shaukat Aziz will inaugurate the ground breaking of LTI assembly plant at Gharo in the end of August, for which 300 acres of land has been allocated.

To a question, he replied the company would provide reasonable fare (Rs 11.20 per kilometer). Ghuman said that LTI plant would produce 18,000 cabs annually in Pakistan, out of which 9000 cabs would be exported. The export of 9000 cabs will fetch $ 2.8 billion every year, he added.

The 2400 cc (2.4 liters diesel engine) London Taxi, which is priced at 42,000 Pounds in UK, will be available at around 20,000 Pounds in Pakistan, he added. The minister also stated that these taxi cars would not be sold in the local market.

He said that Dubai World (DW) of the UAE, Daimler Chrysler, Dubai Islamic Bank, and certain other organization of international repute would invest in Pakistan. The total volume of investment will touch around 36 billion US dollars in the next five years.

Dubai World will construct new modern cities at Clifton Beach, Sandspit & Manora, Hawks Bay & Cape Mont in Karachi with the investment of US $ 15 billion.

He said the DW will build housing units in Karachi, Lahore and Islamabad which will not only overcome the 6 million shortfall of housing units in the country but will help check the property prices.

He said Daimler Chrysler of USA would establish its assembly plant near Sheikhupura for the production of Mercedes-Benz trucks, buses and cars. Ghuman said, Volkswagen, Renault and Jetta would set up their car manufacturing plants in Pakistan with the investment of billions of dollars.

 

[Neo]

Dude..bro...mere bhai!
This is a daily update thread, all these news articles have been posted last couple of days.

 

[Kaiser]

Finance ministry identifies five areas to focus on


ISLAMABAD : The Finance Ministry has identified five major challenges to be focused during 2006-07, which include increase in tax-to-GDP ratio, improvement in provincial receipts, review of subsidies, strict monitoring of public sector expenditure, completion of privatisation transactions, and GDRs.

The summary of Finance Ministry on federal budget 2006-07, a copy of which was made available to Business Recorder, suggests that one of the major failures of the government was 'slow improvement' in tax-to-GDP ratio at the federal and provincial levels.

While CBR's performance over the current year has been sterling, the primary challenge would continue to be a paradigm shift in the tax-GDP ratios which were, as stated, among the lowest in developing countries, the Ministry said.

It also observed that fiscal space for the kind of development agenda that the country needed could only be created by a significant and equitable increase in tax receipts to ensure the sustainability of the expenditures that were required for the future and to remain within the limits of the debt limitation and fiscal responsibility.

Regarding provincial taxation, the ministry said that for several years provinces' own receipts had stagnated at 0.9 percent of the GDP. It asked the provinces to make vigorous efforts to improve their revenue-GDP ratio. Despite this, large amounts were being transferred to the provinces from budget 2006-07.

"This will enable the federal government to focus and fund the critical national infrastructure including the mega dams," the ministry added.

The Finance Ministry is of the view that subsidy would continue to be carefully targeted and reviewed on need basis.

A case in point was the power and gas tariff, where industrial and commercial sectors cross-subsidise domestic consumers.

The ministry was also of the view that effectiveness of public sector expenditure would need to be monitored carefully to ensure that the government gets value for its monies.

"PSDP will need to be subject to a more vigorous result-based measurement, rather than being based largely on financial inputs and utilisation," the ministry said.
According to the summary, the ministry was disturbed for not meeting the deadlines of privatisation transactions, directing the Privatisation Commission (PC) to must ensure that the transactions planned for the next financial year, including GDRs, are completed well in time.

 

[Neo]

KARACHI (June 20 2006): Not only the overseas Pakistanis remitted home a record amount of $4,136 million during 11 months of FY06, the competing Foreign Currency Deposits (FCDs) under FE-25 scheme also rose to a record $3,481 million by the end of May 2006 as against $3,105 million at the end of May 2005, and $3,282 million at end of June, 2005.

The surge was more pronounced in last five months of the fiscal year with outstanding balances averaging about $3,498 million compared with a similar average of $3,327 million in the first six months of the year. The outstanding balances stood at their highest of $3,567 million at the end of January 2006 and lowest of $3,302 million at the end of July 2005.

Earlier on, balances under FE-25 scheme had reached $2,671 million (resident: $1,954 million, non-resident: $343 million) at the end of FY04 and $2,296 million (resident: $2,340 million, and non-resident: $331 million) at the end of FY03.

It is worth recalling that the FE-25 Scheme was introduced, vide FE Circular No 25 of June 20, 1998, in the aftermath of Pakistan's nuclear explosions and the imposition of sanctions by most of the western countries leading to restrictions, vide FE Circular No 12 of 1998, on withdrawals in foreign currency from selected categories of foreign currency accounts existing as on May 28, 1998.

At the time of the issuance of the aforementioned FE Circular, the Government was under liability to make payments to the holders of FCDs in the amount of some $11 billion (History of SBP: 1988-2003), whereas the FE kitty of Pakistan had only left in it about $1 billion. To allay fears of any future freezing, separate ledgers were to be maintained by Authorised Dealers (ADs) for deposits under the new Scheme. Since these deposits are outside the State Bank's forward cover scheme, these are not required to be surrendered to the State Bank. The ADs, who are free to decide the return on such deposits, are also under no restriction to lend, invest and place on deposit such funds in Pakistan or abroad subject to the observance of the prescribed regulations.

As regards their utilisation as on the end of May 2006, $1,147 million was used for financing foreign trade ie exports both under pre-and post-shipment arrangements ($851 million) and imports ($295 million) while $1,529 million was placed under various arrangements including those with SBP ($181 million under CRR and $534 million under SCRR), banks within Pakistan ($26 million) and abroad ($787 million). An amount totalling $538 million was held as balances abroad ($356 million), cash in hand ($78 million) and as 'others' ($104 million).

Ever since the issuance of FE-12 in 1998, balances in the old FC accounts had been declining since these had to be converted into rupees or Special US Dollar Bonds by the holders at their option. Eight years after the disbanding of the old scheme viz., at the end of May 2006, the outstanding balances in these accounts stood reduced to only $104 million (resident:$76 million, non-resident:$28 million). Three years ago in May 2003, these balances stood higher at $330 million (resident:$266 million, non-resident:$64 million).

 

[Neo]

ISLAMABAD (updated on: June 19, 2006, 23:09 PST): Pakistan and Kuwait on Monday signed series of agreements and Memorandums of Understanding (MoU) for enhancing bilateral economic relations including an MoU for setting up an oil refinery at port Qasim.

President General Pervez Musharraf and Amir of Kuwait Sheikh Sabah Al-Ahmed Al-Jaber Al Sabah witnessed the signing ceremony.

The two sides also concluded an agreement on augmenting economic and technical co-operation and an MoU on development of small and medium enterprises.

Later, Minister of State for Privatisation Omar Ahmed Ghumman, who signed MoU on setting up of oil refinery, described it as major foreign investment in the years to come.

"This will be a huge Kuwaiti investment, drawing US dollars 1.2 billion and contribute significantly to bolstering oil refining facilities in the country," he told newsmen.

Pakistan and Kuwait also inked an executive program for the cultural, educational and information exchanges between the two countries.

 

[Neo]

RAWALPINDI (updated on: June 19, 2006, 22:26 PST): President General Musharraf on Monday said the projects including Gwadar deep sea port, construction of water reservoirs, coastal highway and road infrastructure in Balochistan would accrue tremendous benefits to the people.

He made this remarks after meeting with Governor Balochistan Owais Ahmed Ghani, who called on the President and briefed him about the pace of development projects in the province.

"The projects including Gwadar deep sea port, construction of water reservoirs, coastal highway and road infrastructure would accrue tremendous benefits to the people in Balochistan in both industrial and agricultural sectors," said the president.

The timely completion of these projects, he stressed, would speed up the process of transferring benefits of economic gains at grassroots level and strengthen the foundations for their sustained socio-economic progress.

 

[Neo]

ISLAMABAD (June 20 2006): During the ten months of 2005-06 from July to April, the communications sector topped the list for attracting foreign direct investment (FDI) worth $1.70 billion, which was more than 14 times high as compared to same period of last fiscal year ($112.3 million). On the other hand, the investors withdrew $108.3 million FDI from fertiliser industry.

The break-up of investment by sectors shows that as the communication sector attracted large chunk of FDI ie telecommunication sector $1.672 billion and Information technology $27.9 million, the investment in information technology included $22.4 million in IT services and 2 million dollars in postal and courier services.

The noticeable point in IT sector was that during the period software and hardware development fetched $4.6 million and $0.8 million, respectively, which was far less than what it was in corresponding period of last fiscal year--$6.5 million--in software and $3 million in hardware development.

Power sector (thermal and hydel) is the next with total FDI of $309.60 million with 400 percent growth, of which hydel share was meagre $0.6 million and thermal sector received $309.1 million.

A significant feature of the data is that during the period the financial businesses also attracted $289.7 million. It is also pertinent to note that during April it fetched $24.3 million. During July-April 2005-06, the oil and gas exploration sector also attracted $243.3 million, which was 47 percent higher than $165.4 million in corresponding period last fiscal year. This sector in the month of April, 2006 received $26.4 million direct investment that was 84 percent more than corresponding month of FY 2005.

The petroleum refining sector attracted $24.4 million, petro-chemical $7.9 million and mining and quarrying absorbed $5.2 million foreign investment during the period under review. Trade sector attracted $108.3 million against only $42.1 million during last fiscal year with growth of 157 percent (it received $26.5 million in April 2006); construction sector received $58.7 million compared to $33.8 million.

The inflow of direct investment in cement sector compared to corresponding period last year was very high. During the period under review it attracted $37.1 million against only $0.6 million last fiscal year depicting a growth of 6083 percent.

FDI inflow in food and food packing and textile sector was also sizeable. During the period food and food packing attracted $48.5 million and textiles $36.1 million as against $7.2 million and $27.4 million in corresponding period last year.

During this period (July-April) 2005-06, the overall inflow of FDI increased by 238.7 percent year-on-year to $3.020 billion from only $891.5 million.

FDI inflow is climbing north, and the economic managers of the government hope a further growth in its inflow for the current fiscal. They expect that the foreign investment in Pakistan is likely to reach near $4 billion by the year-end.

Comparing inflow of FDI in April 2006 with the same month of last year, it increased by 704 percent to 795.4 million (including $665.2 million privatisation proceeds), whereas it was $98.9 million during April 2005.

Economists believe that if the inflow of direct investment in the country remained strong, it would give a big boost to Pakistan's economy by improving per capita income and accelerating the government efforts in bringing down poverty rate. Besides, it would work as a cushion against the external shocks and would mute the pressure of climbing current account deficit.

 

[Neo]

ISLAMABAD (June 20 2006): The major thrust in NWFP's 2006-07 budget was to maintain the ongoing pace of development projects in education, health, roads and irrigation sectors, Minister for Health, Inayatullah Khan said on Monday.

Talking to PTV he said that within a period of three to four years 85 percent increase has been made in education allocations. While 102 percent more money would be spent in health sector. Mechanism was being devised to pay Rs 1,000 per month allowance to unemployed postgraduate degree holders. A pilot project would be launched in districts of Shangla and Kohistan to pay Rs 500 as allowance to senior citizens.

Later the project would be expanded across the province, he said. Unprecedented development activities were continuing in all districts of the province. The province is linked through various road networks. All the projects initiated simultaneously would be completed within next three years, he said.

Work was continuing on various roads including from Mardan-Bunair to Sawat. Noweshara-Charsadda-Chakardarra-Chitral and Dir. Financial autonomy has been given to police stations of the province.