Pakistan Economy - News & Updates - Archive

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KSE attracts $0.3815 million fresh foreign investment​

RECORDER REPORT
KARACHI (December 28 2008): After witnessing a heavy outflow of foreign portfolio investment from the country's equity market during last few months, a fresh inflow of $0.3815 million was seen during the outgoing week that ended on December 26, 2008. "The foreign investors opted to take fresh positions on the existing attracted levels in the oversold market," analysts said.

A significant increase of foreign investment was seen in the previous fiscal year, however, due to political uncertainty, weakening economic indicators and geo-political situation, the foreign investors preferred to offload their holdings. The cumulative data shows a decline of $12.077 million in the current month from December 1, 2008 till date.

According to National Clearing Company of Pakistan Limited (NCCPL) data, the cumulative figure of this mode of investment stood at negative 370.307 million in the current year from January 1, 2008 to December 26, 2008. The data shows that the week started on a positive note as an inflow of $3,187,462 was witnessed on Monday.

This trend continued and $356,228 came in on Tuesday and $86,998 on Wednesday. The market remained closed on Thursday due to Quaid's birth anniversary and Christmas holiday. However, the trend couldn't continue on Friday and an outflow of $3,249,158 was witnessed on the last trading session of the week.

 

[Pk_Thunder]

SPI inflation surges to 23.61 percent​

ZAHEER ABBASI
ISLAMABAD (December 28 2008): The inflation measured through SPI surged to 23.61 percent during the week ended on December 24 over the same period of last year. However, it declined by 1.15 percent during the week, according to the Federal Bureau of Statistics (FBS). Official figures released by FBS on Saturday showed a slight decline in the SPI inflation during the week and came down to 23.61 percent.

The inflation was recorded 24.76 percent during last week. Further analysis of the data showed that dearness for low income group increased by 23.36 percent over the same period of last year, followed by 23.89 percent of Rs 3001-5000 income group and 24.63 percent for Rs 5001-12000 income group. The dearness above Rs 12000 was recorded 23.61 percent.

The SPI bulletin, based on data of 53 items collected from 17 urban centres showed increase in the prices of 14 essential commodities, decline in 11, while the prices of 28 commodities remained stable during the week, but were higher as compared to last year.

The prices of per kg tomatoes increased to Rs 27.71 from Rs 24.48, LPG (11 kg cylinder) each to Rs 707.59 from Rs 682.06, mustard oil kg to Rs 141.22 from Rs 139.28, electric bulb 60 watts each to Rs 14.31 from Rs 14.25, bananas doz to Rs 33.55 from Rs 33.41, wheat average quality kg to Rs 24.75 from Rs 24.66, masoor pulse washed kg to Rs 128.01 from Rs 127.62, gur kg to Rs 38.59 from Rs 38.52, gram pulse washed kg to Rs 57.37 from Rs 57.31, garlic kg to Rs 43.52 from Rs 43.48, mutton kg to Rs 257.94 from Rs 257.72, firewood 40 kg to Rs 268.05 from Rs 267.90, beef kg to Rs 142.58 from Rs 142.53, mash pulse washed kg Rs 75.59 from Rs 75.58.

The prices of following commodities declined during the week: potatoes kg to Rs 17.56 from Rs 19.71, egg hen (farm) doz to Rs 71.42 from Rs 74.96, chicken (farm) kg to Rs 86.73 from Rs 90.40, rice Irri-6 kg to Rs 36.70 from Rs 37.30, sugar kg to Rs 34.68 from Rs 35.17, wheat flour average quality kg to Rs 26.01 from Rs 26.37, rice basmati broken kg to Rs 45.33 from Rs 45.94, onions kg to Rs 27.27 from Rs 27.52, red chillies kg to Rs 137.73 from Rs 138.54, moong pulse washed kg to Rs 48.41 from Rs 48.54, and vegetable ghee loose kg to Rs 90.36 from Rs 90.51.

 

[Pk_Thunder]

ST on subsidy on oil products: FBR seeks data from Petroleum Ministry​

SOHAIL SARFRAZ
ISLAMABAD (December 28 2008): The Federal Board of Revenue (FBR) has decided to approach the Ministry of Petroleum to verify data pertaining to subsidy on POL products to ascertain actual sales tax collection from the petroleum sector. Sources told Business Recorder on Saturday that FBR has directed the ST Wing to thoroughly examine the subsidy claimed on petroleum products and report whether the amount includes sales tax or not.

In this regard, the Sales Tax Wing should verify the necessary information from Director General, Oil, Ministry of Petroleum, the FBR instructions said. In the past, sales tax was paid on subsidised rate of POL products. However, the levy was not collected on the subsidy given on petroleum products. The exercise would verify the impact of subsidy on sales tax collection from the petroleum products.

The analysis of sales tax collection from petroleum sector is also an attempt to improve overall sales tax collection in 2008-09. Due to substantial share of POL products in indirect taxes, any fluctuation in the tax receipts from this source, for whatever reason, seriously affects the overall collection of taxes.

Sources said that the government had paid Rs 165 billion subsidy on POL products during last fiscal year. The government had given this subsidy on kerosene oil and diesel when the prices were higher in the international market. The subsidy on POL products was abolished on October 15, 2008 due to decline in POL prices globally. According to one estimate, so far around Rs 280 billion subsidy has been paid on POL products.

When contacted, tax experts opined that the standard rate of 15 percent is applicable on petroleum products, either imported or domestically supplied, on all items described in customs duties tax base. The crude oil was zero-rated through SRO 1164(I)/2007 of November 30, 2007 to avoid refunds. As a special tax incentive, the Price Differential Claim (PDC) was excluded from the value of import and supply of high speed diesel (HSD) for the purpose of sales tax.

Similarly, zero-rated sales tax was granted to exploration and production (E&P) companies on import of machinery, equipment, specialised vehicles/vessels, etc. Analysts are of the view that the single factor which reduces the incidence of sales tax per litre on POL products was PDC which is a form of adjustment allowed by the Pricing Formula to keep the sale price low.

This component was actually deducted from the purchase price for the purpose of calculation of sales tax. This subtraction virtually resulted in negative value-addition, thereby decreasing the incidence of tax, as the difference between sale and purchase price gets narrowed, they added.

 

[Pk_Thunder]

Pepco, PPR in row over Multan rental power plant​

MUSHTAQ GHUMMAN
ISLAMABAD (December 28 2008): Pakistan Power Resources, LLC (PPR) and Pakistan Electric Power Company (Pepco) have developed a serious row over what the former says breach of contract by the latter towards Multan rental power plant, well-informed sources told Business Recorder.

The sources said the PPR has written a strong worded letter to Pepco Managing Director Fazal Ahmad Khan and threatened to re-negotiate the tariff if payments are not cleared immediately. "Despite a lapse of 6 months, Pepco continues to be in default on its contractual obligations with regard to the Multan rental power project," it said in the letter.

The sources allege that the award of this project is in serious dispute, as the incumbent Wapda Chairman never wanted to give the project to PPR due to variety of reasons. Despite submission of a bank guarantee on June 4, 2008 and a lapse of over 6 months, neither mobilisation amount has been paid nor mobilisation bank guarantee returned, PPR said.

"This is in violation of the rental contract, under which Pepco was to pay mobilisation advance within 10 days of the submission of the bank guarantee. We will claim interest for the delayed period from Pepco," the letter added.

It said Pepco has also failed to establish a confirmed Stand By Letter of Credit (SBLC) for the rental value despite a lapse of over 6 months. This may mean that the company may not be able to access the original equipment earmarked for the project with resultant project cost over-run and increase in tariff.

"We repeat that the mobilisation advance and a confirmed SBLC under the rental contract for the Piranghaib Multan Power Project be paid and SBLC delivered to us by Saturday, December 20, 2008, failing which we reserve the right to re-negotiate tariff and also to claim interest on delayed mobilisation advance payment and damages and reimbursement of costs incurred," PPR said. Both Pepco and PPR have already confronted each other over interest rate on loans of the project.

A couple of months ago, PPR had written a letter to the PPIB Managing Director, stating it was indicated by the Pepco MD that increase of interest cost by 11 percent would be difficult to factor into the contract by Pepco.

In order to resolve the issue PPR had proposed an alternative arrangement, ie, to extend the validity of the contract for five years instead of three years on existing terms and conditions except that (i) SBLC will be for 50 percent of the rental value for 3 years; and (ii) The securitisation/escrow arrangements between Bank Islami Consortium will be for five years instead of 3 years; and (iii) additional cost of interest will he borne by PPR.

It had further stated that the project has already been delayed and its economics is affected. "We reserve the right to claim interest and loss of profit owing to breach of contract by Pepco," the sources concluded.

 

[Pk_Thunder]

Pakistan's foreign exchange reserves rise to $9.44 billion​

KARACHI (December 27 2008): Foreign exchange reserves rose $100 million to $9.44 billion in the week that ended on December 20, the central bank said on Friday. The State Bank of Pakistan's reserves rose to $6.15 billion from $6.13 billion a week earlier while reserves held by commercial banks were $3.29 billion compared with $3.21 billion.

 

[Pk_Thunder]

Basmati trademark​

India moves SHC against Pak farmers

Sunday, December 28, 2008
By Shahid Shah

KARACHI: Basmati trademark registration issue has remained unresolved for a long time and in a latest twist an Indian agriculture development body has approached Sindh High court asking it not to allow only Pakistan’s basmati rice growers to use the trademark.

Besides the Indian body called Agricultural and Processed Food Products Export Development Authority (APEDA), Rice Exporters Association of Pakistan (REAP) has also appealed in the Sindh High Court against a trademark registrar’s decision permitting only the basmati growers to use the trademark. Hearing would start in January.

Basmati Growers Association (BGA), the farmers’ body, has its reservations too and has moved the high court. “Earlier the case was decided in our favour, but some points of the decision were against us, so we are also in the high court,” said BGA President Hamid Malhi.

He said negotiations with the Indian authority were going on in a joint working group. “There is difference between India and Pakistan on the definition of basmati rice. They don’t have contiguous area of basmati and they don’t produce much of it,” he added.

In order to comply with Trade-related Intellectual Property Rights (TRIPs) regime of the World Trade Organisation, the Ministry of Commerce has asked the stakeholders in rice trade to resolve the trademark registration issue, which has pitted REAP and BGA against each other.

REAP Chairman Abdul Rahim Janoo in a TV programme earlier this week alleged that BGA had seven members only who formed the association at home. But BGA claims it has membership of 1,400 growers. “We have provided a list of 1,150 members to the trademark registrar,” Malhi said.

Zahid Khwaja, a senior REAP member talking to The News, said with trademark rights in their hands, rice growers would regulate the exporters’ trade. “There should be no single ownership and the government of Pakistan should control it,” he suggested.

Basmati is one of the oldest and finest varieties of rice cultivated in the sub-continent. Great Punjabi poet Waris Shah also mentioned basmati in his poetry while writing about Heer and Ranjha.

In India, first the matter of rice certification was handed over to All India Rice Exporters Association but later on the demand of all stakeholders it was given to APEDA.

Basmati growers and exporters differ not only on the issue of trademark registration, but they also have dispute over paddy procurement.

Hamid Malhi alleged REAP wanted to depress the market, causing loss to the growers. When REAP was exporting basmati at $780 per tonne in May, Malhi said the government announced a minimum export price (MEP) of $1,500 per tonne and after that they sold it for $1,580. Consequently, rice exports increased by 20 per cent.

Malhi said rice exporters instead of fetching high prices for exports wanted to buy the commodity from farmers at lowest rates. “They (REAP) have monopoly in rice trade,” he alleged.

REAP Chairman Abdul Rahim Janoo said, “rice exporters are commercial entities and not charitable organisations to pay farmers above market prices.”

 

[Pk_Thunder]

Global financial crunch hits real estate sector​

Sunday, December 28, 2008
By Faryal Najeeb

KARACHI: Year 2008 has proved to be a rather rollercoaster ride for the real estate sector.

It started off dismally in January, following massive flight of investment after former premier Benazir Bhutto’s assassination and then underwent global financial crunch.

However, it ended on a positive note as many new projects for the middle income group were introduced.

Meanwhile, local investors, though severely wounded by heavy losses, also returned to Pakistani market from United Arab Emirates by October. Nevertheless, market experts were of the opinion that the year could not be considered positive for the sector as the damage done was far more than what was recovered in the past two months.

“Interestingly, though the commencement of the year promised little following the tragic incident on December 27, 2007 and it seemed to be the worst period in the history of Pakistan, average price of properties remained higher than what they had been when real estate recession started back in 2005,” stated Head of Real Estate Research at PakrealEstate.com, Shahbaz Mukhtar. Mukhtar said that property prices in Lahore, Karachi, Islamabad and Rawalpindi were in fact 20 to 25 per cent higher compared to 2005 when the real estate sector recorded its first downward slide. Citing examples, he shared that in 2005, a 500sq yard plot in F7 area of Islamabad cost approximately Rs30 million whereas in 2008 the same was estimated at around Rs45 million.

Mukhtar went on to say that apart from natural appreciation over time, the development that took place in an area also mattered greatly for property evaluation.

He gave the example of DHA phase VIII Karachi where a little development over months led to prices actually dipping in 2008. Going over a period of five years, Mukhtar said that a 500 square yard plot in phase VIII cost Rs1-1.5 million in 2002, which soared to Rs10-12 million at its peak in 2005.

He said as the DHA failed to maintain the development progress, today the same property is valued at Rs6-7 million only. The real estate researcher also enunciated the Islamabad rental market stood humble in 2008 as the demand by foreigners reduced as most moved away to the ‘Diplomatic Enclave’ established for them.

He said acts of terrorism in the year had also compelled many of them to move away from the country leaving the houses empty behind them.

“The rupee-dollar parity also affected the rental market of Islamabad as the rents were in fact decided in dollars only,” he elucidated.

On the other hand, FPCCI Sub Committee on Housing and Construction Vice President Munir Sultan voiced that the global financial crunch which had been the worst in over hundred years had led to a massive decline in the housing and construction sector of Pakistan along with other countries in the world.

He articulated initially rising prices of steel and cement had led to a sluggish period in the construction sector and then the liquidity crunch affected the sector in the 3rd quarter of the financial year.

Fourth quarters onwards, prices begin to fall and a plethora of housing projects were also launched for the middle income group. As the UAE market crashed and investors returned heavily defeated with losses to Pakistan, many small and big developers launched new schemes all over the country.

According to the experts, the responses to these projects have been tremendous mainly because earlier the ventures which were being announced in Pakistan were for the elite class which is less than 2 per cent of the society and these housing developments were finally within the budget of the popular class of the society.

Sultan expressed housing projects in Karachi, Islamabad, Lahore, Hyderabad, Rawalpindi, Sialkot and Faisalabad proved to be massive hits and got excellent response from the buyers. During the second quarter, Real Estate Investment Trusts (REITs) were also introduced in Pakistan and many hoped that finally the real estate sector of the country would be better documented than at present.

However, no project ever got initiated in this regards and flaws in the government’s laws also led to REITs failure. In the opinion of the experts, the future also does not seem to cast any light on potential projects involving REITs.

 

[Pk_Thunder]

PQA approves lowest bid for dredging work​

Sunday, December 28, 2008
By our correspondent

KARACHI: Port Qasim Authority board has approved the lowest bid offered by Dredging International for channel maintenance and dredging work during the year 2008-09.

The PQA board decided in its meeting on August 30, 2008 held that tender documents be prepared for maintenance and dredging work in 2008-09, so that immediate tenders can be invited in case of non-implementation of capital dredging work. Subsequently, the issue was further substantiated by the technical committee of the board which decided in a meeting held on November 18 that if capital dredging work is not awarded, maintenance and dredging be undertaken through a fresh gallop tender as early as possible.

Accordingly, tenders were invited from five dredging companies which were pre-qualified for the work of capital dredging including maintenance dredging for the year 2008-09.

All five dredging companies including Van Oord, Dredging International, Jan De Nul, Boskal’s International and China Harbour Eng Co collected tender documents.

Bids were received and opened on Dec 20 in front of the dredging committee and representatives of the bidders.

Following bids were received. Dredging International’s bid amounted to Rs1.416 billion; Van Oord Rs1.516 billion; Jan De Nul Rs1.520 billion and China Harbour & Eng Co Rs2.020billion. However, Boskal’s International did not participate in the bidding. After evaluating all the bids the committee had sent recommendations to the board for the approval.

 

[Pk_Thunder]

Preferring China to India in trade​

Sunday, December 28, 2008
By Mansoor Ahmad

LAHORE: Pakistan should take a unilateral decision and sever trade links with India as it is not in its interest to strengthen Indian economy by opening its border when almost every item produced by Delhi could be arranged from China.

Pakistan must understand that bilateral trade between the two countries is not feasible and it would remain one-way traffic where India has some advantage. Both the countries export and develop capacities to ship similar items like textiles, light engineering goods, auto parts, carpets and information technology services. That India has overtaken Pakistan in these fields is another matter, but Islamabad’s potential for exports in many of these fields is as big as that of Delhi.

Even in agriculture we compete with India in exports of basmati rice, mangoes and citrus fruits. Vegetables we are trying to export are the same as those being exported by India. In handicrafts, though India has overtaken us due to better marketing and planning, export items have great similarities.

India produces industrial raw material that Pakistan does not produce but is required by its industries. Prices of Indian raw material look cheap because of low transportation cost, however, it does not produce best quality products, particularly chemicals. So we lose the quality of end-product by using Indian chemicals.

Quality control standards in India might be slightly better than Pakistan but corruption level there is still extremely high allowing marketing of substandard products.

Moreover, India has proved itself as an unreliable supplier of industrial raw material. Pakistan’s entrepreneurs and economic planners should consider whether it is feasible to risk raw material supplies to our industries on an advantage of only 2-3 per cent in prices.

Other suppliers like China, South Korea and Japan could be persuaded to match or even lower rates compared to Indian raw material provided trade associations of different industries join hands and import major raw material in bulk. The government should be involved in the process in order to ensure export of best quality material from China.

Discouraging trade with India looks against the principle of free market economy.

However, even the most outspoken proponents of free trade in the US continue to favour a ban on trade with neighbouring Cuba and also with Iran due to political differences. It even penalises some countries that conduct trade with these states.

Pakistan also has political differences with India. The Indians discourage imports from Pakistan through technical trade barriers while Pakistan continues to open its markets for their products.

India, for instance, allows its spinning industries established in special export zones to import yarn duty-free from anywhere in the world except for Pakistan. India has imposed 10 per cent duty on import of fabric but with the condition that minimum duty would be Rs120 per kg that effectively increases the duty on Pakistani low-cost fabric to over 120 per cent.

The Indians desperately need cement for growing construction activities. Pakistan is the cheapest source of cement yet Delhi has restricted imports by not allowing its supply through road link. Despite that, Indian cotton exporters want Pakistan to allow imports of cotton through trucks.

Ever since trade with India has been liberalised, Pakistan’s exports have remained stagnant while Indian exports have leaped by several hundred per cent. It is high time that planners here take rational decisions on trade with the neighbour.

One-way traffic should be discouraged and importers should be facilitated to import same items from other sources.

Exporters should also target all global markets penetrated by India and make collective efforts to introduce similar Pakistani products.

 

[Pk_Thunder]

Pakistan financial position improving: Wajid Shamsul Hassan ​

ISLAMABAD, Dec 28 (APP): Pakistan High Commission to United Kingdom Wajid Shamsul Hassan said on Sunday that Pakistan financial position is improving despite international economic crunch which eroded foreign reserves of the country. Talking to BBC, he said the country was on road to recovery from the international economic crunch with foreign investment coming and oil prices going down.

Replying to a question, he said the government was trying its best to address all issues like economic problems, law and order situation and war on terrorism.

He said Prime Minister was committed and all provinces were cooperating and stands united, so hopefully the country would overcome all problems soon.

Wajid Shamsul Hassan said Shaheed Benazir Bhutto wanted to fulfil Muhammad Ali Jinnah’s vision of Pakistan which was liberal, progressive and secular and for achieving these goals she gave her life.

 

[Neo]

January-June bank advances up by Rs 228 billion​

KARACHI (December 27 2008): Advances of the banking system posted a robust growth of Rs 228 billion to new peak level of Rs 2.9 trillion during first half of current calendar year 2008. During the first quarter (Jan-March) advances grew by Rs 116 billion, while during the second quarter (Apr-June) advances grew by Rs 112 billion, or 4 percent, to Rs 2.9165 trillion.

However, due to higher increase in cash and bank balances, share of advances in overall asset base slightly receded to 53.0 percent by the end of June from some 53.8 percent in March.

The State Bank of Pakistan has issued quarterly performance review of banking system, in which it has shown that advances of banking system in fact showed a dull demand during the first three quarters of the last year and it was only in the last quarter that the advances, following the seasonal pattern, rose at strong pace. This increase in demand for bank credit, in line with established seasonal trend, subsisted during the first two quarters of the outgoing year, the SBP said.

Detailed composition of the advances shows that mainly the corporate and commodity finance increased their usage of bank credit. However, there was a slight increase in advances to agriculture sector, while other two major sectors viz Small and Medium Enterprises (SME) and Consumer Sector reduced their borrowing from banks.

Both these sectors reduced their bank borrowings during Mar-08 quarter as well. The corporate sector, the largest user of bank credit, borrowed additional advances of Rs 84 billion to during the second quarter.

This increase coupled with an increase of Rs 29 billion to Rs 210.8 billion in commodity financing, while a reductions of Rs 16 billion in lending to SME sector and Rs 11 billion has witnessed in consumers financing. Accordingly, corporate sector further inched up its share in overall advances of the banking system. SME and consumer sector that are the second and third largest users of bank credit, respectively, shed their share in the overall advances of the banking sector.

There was only a slight shift in the end use of advances. Working capital registered a slight inch-up in its share, while trade finance showed a minor reduction. In overall advances corporate sector had a share of 59.5 percent, SMEs 13.5 percent, consumer financing 12.1 percent, commodity financing 7.2 percent, agriculture 5.3 percent, staff loan 2 percent and other business have a share of 0.5 percent.

 

[Neo]

Private sector investment to be sought for NHA projects​

ISLAMABAD (December 27 2008): The government has decided to seek private sector investment for roads and other projects, to be executed by National Highway Authority (NHA)/Infrastructure Project Development Facility (IPDF), official sources told Business Recorder.

The decision was taken by the Executive Committee of the National Economic Council (Ecnec), partly presided over by Advisor on Finance to Prime Minister Shaukat Tarin, while considering construction of high level bridge over Chenab river at Head Muhammad Wala, Multan, construction of a new bridge over Sutlej river at Emanwala, and upgradation of 45 km Jalalpur Pirwala-Uch section of the Multan-Trinda Muhammad Pannah road.

The Ecnec was informed that the scheme of construction of high level bridge over Chenab River at Head Muhammad Wala, Multan would provide construction of a 1,010 metres long bridge across river Chenab at Muhammadwala in Multan, and would include construction of 10 km long approach roads on both sides of the bridge. The scheme is integral part of the program for development of southern Punjab. The cost of the project is Rs 2,376.75 million.

After detailed discussion, the Ecnec decided that the road should be federalised for implementation by NHA. Simultaneously, NHA/IPDF should make efforts to explore private sector financing for the road. In case the road is not federalised, one of the following options may be adopted: (a) the provincial government should approve and forward project's PC-I based on 50:50 cost sharing by the federal and provincial governments, to be executed at by provincial government; (b) alternatively, the provincial government may get the project executed by NHA, as deposit work, with 50:50 cost sharing between Punjab government and NHA. The project after completion will be returned to provincial government for maintenance and upkeep.

With regard to construction of new bridge over Sutlej River at Emanwala, the Ecnec was informed that the project envisages construction of a 2-lane (8.5 metre) 600 metre long bridge across the river which will have one km long approach road on either side. The project is part of Multan development package and has been proposed to be constructed by NHA. Total cost of the project is Rs 1,147.77 million.

The Ecnec while considering a project regarding widening and improvement of National Highway (N-5) from Bahawalpur Chowk (929 metre) to Chowk Kumharn (937 metre), observed that being a small urban road its maintenance/widening should have been the responsibility of provincial and district governments and not of the federal government.

In case of scarcity of funds being faced by these governments, federal government could provide funds for such projects, but implementation should be the responsibility of the province or district administration, sources said.

They said that Ecnec also directed the Planning Commission for formulation of clear and comprehensive policy guidelines pertaining to the provision of funds by the federal government for such projects to the provincial and district governments. It was further suggested that this issue can be assigned to the Ministry of Inter-Provincial Co-ordination in consultation with all relevant ministries/divisions to formulate their recommendations and re-submission to Ecnec.

 

[Neo]

China keen to help boost Pakistan's economy​

BEIJING (December 27 2008): China is keen to help boost Pakistan's economy with closer co-operation in the fields of hydropower generation, hybrid seed development, irrigation and water conservancy.

Pakistan's Ambassador to China Masood Khan, who visited Wuhan - the capital city of Hubei province - at the invitation of its Governor Li Hong Zhong and Yichan where the largest hydropower project Three Gorges Dam is situated, told newsmen about prospects of such co-operation in an interview on Friday.

Hubei province is the industrial hub of China. It specialises in areas of automobile manufacturing, steel, construction and fibre optics. Director General of the Agricultural Chen Binhuai in a meeting with Ambassador Khan said Hubei province would like to work closer with Pakistan in the field of agriculture to enhance per acre yield so that Pakistan could meet its growing agriculture demand.

He said that by setting up joint ventures the agriculture products could also be exported to various countries from Pakistan. Ambassador Khan was also invited to visit the Three Gorges Dam, where the General Manager of the project Li An Yong said that China was ready in sharing technology and expertise for setting up large scale Hydro electric generation projects in Pakistan.

Three Georges Dam is the world largest hydropower generation project with installed capacity of 22000 MW. Over 40 Pakistani students studying in Wuhan University and Wuhan Science and Technology University also met with Ambassador Khan.

Over 90 students were enrolled for undergraduate and postgraduate disciplines, ranging from medicine to agricultural research, science and technology and R&D. "The potential for co-operation between Pakistan and Hubei in industrial, agricultural and educational fields is immense. We will work consistently to tap this potential", Ambassador Khan said.

 

[Neo]

FPCCI concerned over mining industry decline​

KARACHI (December 27 2008): Khursheed Ahmed Jogezai, Vice President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed serious concern over the dying industry of mining in the country. In Balochistan coal mining is the major industry and besides vast-scale indirect employment, it provides direct employment to more than one hundred thousand people, he told APP here.

He said that in Balochistan the coal deposits have gone very low to un-economical level of mining and that no new area for the mining has been opened in the province. This has caused low production of coal and high input cost making the local mining industry in-competitive which darkens the future of this industry and other coal-based industries. He suggested that certain percentage of duties be levied on the coal imported from various countries to promote the local industry.

He stressed for providing maximum facilities and incentives to local and foreign investors interested in mining in the country especially in Balochistan. Till now, there are only two foreign companies involved in mining in Balochistan-Chinese company working on Sandak copper field and Canadian company is busy in mining gold and copper from other site.

He said industrialisation in the province cannot take off unless there is a strong roads network and other infrastructure along with peace and security to life and property. Jogezai called for maximum participation of Pakistan's private sector in exploring and supplying petroleum products in the country for the good of national economy and the people.

 

[Neo]

'Government committed to develop marble, granite sector'​

ISLAMABAD (December 27 2008): The Speaker of NWFP Assembly, Karamat Ullah Khan Chagarmatti has said that the despite huge resources of natural stone like marble and granite; unfortunately the country is not benefiting properly from these resources due to lack of modern quarrying and processing practices.

He expressed these views during a presentation given by Pakistan Stone Development Company (Pasdec) at their Head Office in Islamabad. He said that the government was fully aware about the importance of marble and granite sector and President Asif All Zardari is also committed to develop this sector on revolutionary basis as it has great potential.

"We could use the sector to strengthen our national economy through its exports." Chagarmatti added. He appreciated the efforts of Federal Minister for Industries and Production, Mian Manzoor Ahmad Watto and Pasdec team for developing modern quarrying to enhance the marble and granite production.-