Pakistan Economy - News & Updates - Archive

[ejaz007]

Big jumps in profits of Lucky Cement, Attock Cement
By Tanveer Ahmed

KARACHI: A number of listed companies announced their financial results on Monday including a few that had withheld their earnings reports because of controversy about the treatment of “available for sale” investments.

Two major cement companies showed great leaps in their profits, but a large bank reported negligible growth in profit. A refinery reported huge losses.

Lucky Cement: Lucky Cement posted 43.66 percent growth in its profit after tax (PAT) to Rs 1.938 billion in the first half of current financial year from Rs 1.349 billion in the corresponding period of previous year.

Its earnings per share (EPS) rose to Rs 5.99 in the period under review from Rs 5.12 in the same period of previous year. Profit before tax surged to Rs 2.212 billion from Rs 1.043 billion in the first half of previous year.

Sales shot up to Rs 5.269 billion during the period compared with Rs 3.587 billion last year, as both local and export demand moved up.

Attock Cement: Attock Cement posted a phenomenal 200 percent growth in PAT to Rs 720 million in the first half of current fiscal year, rising from Rs 240 million in the corresponding period of last year.

Its EPS jumped to Rs 9.98 during this period from Rs 3.34 in the same period of last year. Profit before tax rose to Rs 933 million from Rs 377 million.

Sales of the company witnessed almost 100 percent growth during the period under review to Rs 3.983 billion from Rs 2.012 billion in the same period of last year.

Daily Times - Leading News Resource of Pakistan

 

[Omar1984]

Gas discovery at Qadirpur

KARACHI: Oil and Gas Development Company Limited (OGDCL) has made another gas discovery at Qadirpur deep well no 1 in district Ghotki. According to a notice issued by Karachi Stock Exchange (KSE) on Monday, the initial gas production has been gauged at 4.28mmcfd. The company has made 84 discoveries so far. With this discovery, the gas production of OGDC will increase further. At the end of January, OGDC’s production of gas stood at 972 mmcfd. staff report

Daily Times - Leading News Resource of Pakistan

Great news. Pakistan needs these natural resources now more than ever.
I hope the Government of Pakistan can make good use of them for the benefit of Pakistan and its people

 

[ejaz007]

Two thermal power plants to be leased out
MUSHTAQ GHUMMAN


ISLAMABAD (February 17 2009): The government will lease out two thermal power plants, of 1054 MW capacity, in Jamshoro and Kotri, for 15 years, after the Privatisation Commission failed to make any tangible achievement in almost seven years, official sources told Business Recorder.

The Jamshoro Power Company Limited (JPCL) was incorporated in March 1998 as a public limited company under the Companies Ordinance 1984, and is one of the four generation companies (Gencos) established in the unbundling process of the integrated power wing of Water and Power Development Authority (Wapda).

JPCL operates two electricity generation facilities --TPS-Jamshoro is an 880 mw power plant, fired by gas and furnace oil, comprising four units; TPS-Kotri facility comprises seven units with 174 mw capacity. JPCL sell-off process was started in April 2002 with the appointment of Price Waterhouse Cooper (PWC) as Financial Advisor. The government approved the transaction structure for the sale of 51 percent of its shareholding in the company, along with transfer of management.

The Expressions of Interest (EoIs) for privatisation of JPCL were initially invited in February 2003. Eight parties submitted EoIs; three parties shared interest. However, all parties lost interest due to delay in tariff determination by Nepra.

Second time, EoIs were invited on August 25, 2004. Twelve parties submitted EoIs but only four submitted Statement of Qualifications (SoQs) by the due date. However, the transaction could not be carried forward as Nepra had not determined the appropriate tariff and there were problems on the mutation of two out of three land lots held by JPCL.

Jamshoro Thermal Power Station (TPS) of JPCL is built on 485-10 acres and 19-01 acres lands respectively but their titles are yet to be transferred in the name of JPCL. Wapda took possession of the lands from Sindh government in September 1985 after paying Rs 10, 614,604 for 485-10 acres land in June 1985 at Rs 5 per square yard. Sindh government subsequently fixed the price of the land at Rs 46,972,200 in July 1994 at Rs 20 per square yard. Wapda disputed the rate and price of land fixed by the provincial government, and did not pay the balance amount.

Sources said that the GoP initiated the privatisation of JPCL in 2002 and in view of the importance of its privatisation the PC made the balance payment of Rs 36,357,596 to the Government of Sindh (GoS) in April 2006 on behalf of Wapda/JPCL. However, GoS did not transfer the land in the name of JPCL after the payment, and claimed a surcharge of 10 percent per annum from possession of the land.

The PC agreed to this and requested the GoS to issue a challan of Rs 43, 326,135 as the surcharge payment for resolution of outstanding land issues in the name of JPCL. GoS has not yet issued the challan despite Privatisation Commission's repeated requests.

Meanwhile, Ministry of Water and Power was informed on January 21, 2009 that the Private Power Infrastructure Board (PPIB) has submitted an option to lease out, rehabilitate, and operate TPS-Jamshoro for 15 years, whereafter the asset can be privatised after value-addition/upgradation.

Since the initiation of the privatisation process, the Privatisation Commission has incurred the following expenses for JPCL transaction, which have to be recovered by the Privatisation Commission from the privatisation, or lease, proceeds:

Milestone fee and out-of-pocket expenditures to FA $1,557, 163 and payment of cost of land to Sindh government on Rs 39,325,496 on behalf of Wapda. The matter was discussed in the PC Board meeting on January 26, 2009. The Board recommended that a joint inter-ministerial transaction committee, comprising members from Ministry of Water and Power, Ministry of Finance, PPIB, Pepco and PC under the chairmanship of Secretary, PC, be constituted in order to conduct the transaction and formulate the modalities to lease, rehabilitate and operate the TPS-Jamshoro and Kotri. A meeting of the said committee was held on February 4, 2009.

Sources said that CCoP had approved the privatisation of JPCL in its meeting on October 1, 2001. It is now proposed to lease TPS, Jamshoro and Kotri, instead of strategic sale.

THE FOLLOWING PROPOSAL HAS BEEN SUBMITTED FOR APPROVAL OF THE CCOP: "The PC has exclusive jurisdiction over lease transactions in terms of section 25 of the Privatisation Commission Ordinance 2000. The Privatisation Commission may, therefore, conduct the lease transaction. The lease transaction may be conducted as a joint transaction by the Privatisation Commission, Ministry of Water & Power, Ministry of Finance, PPIB and Pepco who will all be represented on the transaction committee." Sources said the proposal is likely to be cleared by the CCoP in its meeting on Tuesday.


Business Recorder [Pakistan's First Financial Daily]

 

[ajpirzada]

Pakistani Banks continue to post large profits
By Shahid Iqbal
Tuesday, 17 Feb, 2009 | 01:10 PM PST | Things are still bright on I. I. Chundrigarh road - APP/File photo. Pakistani Banks continue to post large profits
Pakistani Banks continue to post large profits KARACHI: The banking sector in Pakistan appears to have absorbed global shocks well as banks continue to perform well, with profits beating expectations.

Bankers and analysts having inside information about banking performance during the first three quarters of 2008 said most of the banks would come out successfully from the global financial meltdown.

Unlike the banking sector in most of the countries hit by global recession and facing slowdown of economic growth, the annual results of the strongest MCB Bank released on Monday demonstrated the trend in Pakistan.

The bank reported gross profit of Rs21.9 billion for the year ended Dec 31, 2008. It announced a 25 per cent cash dividend and 10 per cent bonus shares which pushed earnings per share (eps) to Rs24.47.

Bankers said that the net interest income of most of the banks increased because of high interest rate and higher banking spread.

‘The net interest income of the MCB Bank was recorded at Rs28.5 billion which is significant as it is 19 per cent more than Rs23.9 billion recorded in 2007, mainly due to high interest margins,’ said Farhan Rizvi, a researcher at the JS Securities. In contrast, non-interest income of the bank declined by 10 per cent to Rs5.8 billion from Rs6.5 billion in the same period last year.

In a statement, the bank said that its profit-after-tax for 2008 came to Rs15.4 billion (than Rs15.3 billion in 2007), deposits grew by 13 per cent which closed at Rs330 billion whereas gross advances increased by 19 per cent and ended with Rs273 billion.’Advance of the banking industry grew by 18 per cent during last year which helped banks earn profits despite slowdown in economic growth,’ said Mohammad Imran, head of research at the First Capital Equities.

Advances of banks were higher because public sector entities borrowed heavily. Public sector borrowings were at Rs58 billion in 2008.

He said, like MCB, Habib Bank, is also expected to announce net earnings of Rs12.8 billion (eps Rs16.9) in full year 2008, an overwhelming growth of 60 per cent over last year.

Last year the bank’s earnings were lower by 33 per cent due to abnormal provisions of Rs8.2 billion on account of non- performing loans in the aftermath of State Bank’s withdrawal of benefits of forced sales value (FSV) of assets on collateral of loan.

The reason behind the growth would be the expected absence of huge provisioning expense in the books of the bank.

Farhan Rizvi sighted higher administrative expenses of the MCB Bank.

‘Despite showing net interest income, the earnings growth suffered due to a combination of higher administrative expenses and rising provisions for non-performing loans,’ said Mr Rizvi.

He said due to lower gains on pension fund, the bank’s administrative expenses rose by massive 40 per cent to Rs8.4 billion as against Rs6.0 billion recorded in 2007.

Moreover, provisions and write-offs surged by 32 per cent to Rs4 billion versus Rs3.1 billion previously.

The meltdown of the financial system in developed economies is still not over and giant banks, like Citibank, Barclays, RBS, etc., were the target of the failing system for which US and European governments either injected billions of dollars or bought toxic assets. Even governments bought majority stakes in banks, like RBS, to support the failing banking system.
http://www.dawn.net/wps/wcm/connect...tani-banks-continue-to-post-large-profits--il

 

[Neo]

Debt servicing to reach Rs700bn: official ​

Tuesday, February 17, 2009

ISLAMABAD: The plan of the government to go for borrowing of over $12 billion just from the International Monetary Fund (IMF) will expose the country to huge debt servicing that will eat up 44 per cent of tax collection leaving meagre resources for defence expenditures and for paying salaries of employees, a senior official at Ministry of Finance told The News.

“Pakistan is to utilise its resources of Rs700 billion on just debt servicing in the current financial year. This year the government is likely to collect tax revenue of Rs1,260 billion and if Rs700 billion is consumed on just debt servicing and 2.9 per cent of GDP which is Rs300 billion on defence expenditure and the remaining amount is utilised on salaries and pensions of government employees, then the country would have nothing for development except loans.”

Pakistan is already in agreement with IMF under 23 months period bailout package of $7.6 billion under Stand By Arrangement and now the Advisor to Prime Minister on Finance Shaukat Tarin has unveiled plan to seek more loan of $4.5 billion from the Fund which will lead to total loan of $12.1 billion that the country would collect, the official said.

“There is no economic activity in the country because of the high discount rates of 15 percent, the economic growth is being feared at 1 to 1.5 percent provided the country witness the 4.5 percent growth in agriculture depending upon the wheat crops production which is not likely to meet the target of 25 million tonnes,” he pointed out.

If the massive slow down in growth continues in the next two to three years, the country’s debt sustainability capacity would deteriorate to alarming levels, the official said. “This will leave no fiscal space for any development.”

Pakistan’s external debt would swell to $51.5 billion by the end of ongoing fiscal 2008-09 up 16 per cent if compared with foreign debt of $46.5 billion in last fiscal.

The public debt of the country will climb by 20.5 per cent to Rs1.3 trillion including Rs900 billion foreign debt and Rs400 billion domestic debt. And if the additional loan of $4.5bilion, which Pakistan would seek from IMF is included, the country will have additional debt of Rs360 billion.

The county headed by President Asif Ali Zardari will witness 16 per cent growth in external debt only in fiscal 08-09, which the country experienced in the last 8 years.

The major factor in 16 per cent growth in foreign debt is moving the International Monetary Fund for bailout package of $7.6 billion. “This has virtually reversed the declining trend in debt to GDP ratio.”

When contacted by The News, former advisor to Prime Minister on Finance and Revenue Dr Salman Shah blasted the government policy for reckless borrowing arguing that it would lead the country into financial miseries.

He said that the government should concentrate on non-debt creating inflows, which can only be ensured if the maximum foreign investment is lured to the country.

The external debt to GDP ratio was at 27 to 28 per cent during their tenure and it has now swelled to 45 per cent of the GDP, Dr Salman said. To a question he said to maintain the fiscal deficit say at 4 percent the country needs $8 billion every year and for this the current government has opted for reckless borrowing.

The Finance Ministry official said that during the current fiscal the country will $7bn including $4.6bn from IMF, $1bn and $500 million from World Bank and $500m from Asian Development Bank, and $400m from other IFIs. Pakistan will have to pay $3.1bn as debt servicing this year that will rise to $3.5bn in next fiscal of 2009-10.

Prior to moving IMF, the sharp downslide of Rupee against the US dollar added Rs900bn to Public debts without borrowing of a single penny, he said.

“Depreciation of the currency by just one rupee against a US dollar enhances the public debt by Rs46 billion,” the Finance Ministry official said. In Musharraf regime Dollar-Rupee parity was at 1: 60, but when the Pakistan Peoples Party took the driving seat, Rupee started sliding down because of the poor foreign exchange reserves and at one time dollar-rupee parity reached at 1:84. Owing to this fact the national debt swelled by Rs900bn. To a question the official said that the GDP growth is expected to be at 2 per cent. FBR will not be able to increase the tax to GDP ratio, which right now stands at 10 per cent. It means that the country’s revenue would not be able to maintain the debt servicing. “This may lead the country to an embarrassing situation in the years to come,” the Finance Minstry official said.

 

[Neo]

China to bear 85pc cost of Chashma power projects ​

Tuesday, February 17, 2009

ISLAMABAD: China will provide 85 per cent cost for construction of Chashma Nuclear Power Projects (C3 and C4) by extending suppliers’ credit, paving the way for generating additional electricity up to 680 megawatt over the next seven years to overcome energy shortages in Pakistan, it is learnt.

According to highly placed official sources, Pakistan and China are going to finalise the modalities of the supplier credit for two more nuclear power reactors (Chashma 3 and Chashma 4) in the upcoming visit of President Asif Ali Zardari, who is visiting Beijing from Feb 20.

During the last visit of President Zardari, China and Pakistan had signed a deal for C3 and C4 and now finalisation of related modalities will be on the agenda of the upcoming highest level visit of Pakistani authorities during this ongoing week.

In the Public Sector Development Program (PSDP) for 2008-09, the government had estimated the cost of C3 and C4 worth Rs129.905 billion, with foreign currency component of Rs80.360 billion. The government has allocated Rs220 million for the C3 and C4 in the current fiscal year 2008-09. “The cost of the C3 and C4 has already gone up from Rs129 billion to over Rs140 billion mainly because of depreciation of rupee against dollar in the ongoing fiscal year,” a high-level official in the Planning Commission confirmed while talking to ‘The News’ here on Monday.

China has already installed a 325-megawatt reactor at Chashma and is currently working on another with the same capacity that is expected to begin producing by 2009-10. Pakistan is facing a deficit of 4,000 to 5,000 megawatts, resulting in torturous load-shedding for hours in a day.

According to Energy Security Plan up to 2030, the energy mix is quite crucial for Pakistan and in the future the energy share from nuclear will be increased from 400 MW to 8800 MW till 2030.

The official also confirmed that Islamabad will table its formal proposal before the Chinese authorities for finalising the provision of supplier credit. Supplier credit means that the Government of Pakistan would give a guarantee to the Chinese government and Beijing authorities would extend its guarantee to its official bank for repayment of the amount. The Chinese companies will complete the work on C3 and C4 and the Chinese official bank will repay the amount when the company will submit the bills after completion of various phases of the project.

The official said that although the government had allocated a nominal amount for C3 and C4 in the current fiscal year’s PSDP, but keeping in view the importance of this project, the government could provide Rs3 to 4 billion before June 30, 2009 in a bid to make this project operational.

Earlier, China had provided financial and technical assistance to Pakistan for the construction of Chashma 1 and Chashma 2 having a capacity of 340 megawatts each. Chashma 2 has not yet been completed and it is expected to start providing 340 megawatts electricity by the end of the next fiscal year.

“These two new units will increase electricity production by 680 megawatts, which will have a positive effect on the Pakistani economy,” added the official. Both plants are expected to be built at Chashma, about 300 kilometers south-west of Islamabad, in the eastern province of Punjab.

When Deputy Chairman Planning Commission, Sardar Asif Ahmed Ali was contacted for comments, without going into details, he said that the government was committed to start work on C3 and C4 within the ongoing year 2009. He also confirmed that China had agreed to extend its supplier credit but he refused to share further details on the subject.

 

[Neo]

Bids for 1,191MW rental projects opened​

ISLAMABAD: The Private Power and Infrastructure Board (PPIB) Monday received ten bids for 1,191 MW of cumulative capacity, translating to around $1.42 billion of investment.

Managing director PPIB, Fayyaz Elahi said fast track rental power projects for 2009 were being considered, which would hopefully be the last exercise for soliciting rental projects under the current fast track initiatives so as to plug the current supply demand gap. He said, “We would not like to commit too many rentals beyond the need to eliminate the load shedding presently being experienced in the system”.

Senior officials of the PPIB, WPPO, NEPRA and Ministry of Finance attended the opening ceremony. A two-envelope approach has been adopted for bidding the first envelope of the bids containing Qualifications i.e. Technical and Financial were opened, while the tariff bids (envelope-II) will be opened after evaluation of Qualifications.

The bid opening ceremony is a continuation of ‘Fast Track Private Power Projects’ initiative of the government, the initial phase of which has already resulted in project solicitations of 780 MWs of rentals expected to come on line by end 2009 and a fast track IPP of 172 MW expected by mid 2010, while another three IPP proposals of 964 MW were under evaluation which are expected to be commissioned in 2010/11.

A healthy response has been received, despite the worldwide economic crunch. A total of fifteen (15) parties procured the Request for Proposals (RFP) and ten parties have submitted bids which include 57.81 MW Premier Energy proposed at Pasrur, 110 MW coal fired New Park Energy proposed near Nooriabad, 170 MW Ruba Energy proposed at Batapur near Lahore, 73.92 MW Tapal Group Project proposed at Kamoki, 220 MW Reshma Power proposed at Narwala near Faisalabad, 100 MW Trimax Power proposed near Chakwal, 85 MW Sialkot Rental Power proposed at Sialkot, 170 MW MHK Energy proposed near Gujrat, 138 MW Radian Energy proposed at Pasrur and 66 MW Grid Power Generation proposed at Mirpurkhas.

The qualifying bidders are expected to be issued Letters of Award (LoA) by end March 2009 and the projects are expected to be commissioned by end 2009.

 

[Neo]

‘FDI to surpass target this year’​

ISLAMABAD: Foreign Direct Investment (FDI) will surpass last year’s figures, the Board of Investment (BoI) Monday informed the Prime Minister. PM, Yousaf Raza Gillani on the occasion said due to country’s geo-strategic location, availability of skilled manpower, better infrastructure, provision of raw material and low manufacturing cost, Pakistan has become a destination of choice for foreign investments. The Prime Minister was talking to the chairman of Board of Investment, Saleem H Mandviwala, who called on him. He underscored the need for persuading the foreign investors to take full advantage of the investment friendly atmosphere present in Pakistan.

 

[Neo]

Two thermal power plants to be leased out​

ISLAMABAD (February 17 2009): The government will lease out two thermal power plants, of 1054 MW capacity, in Jamshoro and Kotri, for 15 years, after the Privatisation Commission failed to make any tangible achievement in almost seven years, official sources told Business Recorder.

The Jamshoro Power Company Limited (JPCL) was incorporated in March 1998 as a public limited company under the Companies Ordinance 1984, and is one of the four generation companies (Gencos) established in the unbundling process of the integrated power wing of Water and Power Development Authority (Wapda).

JPCL operates two electricity generation facilities --TPS-Jamshoro is an 880 mw power plant, fired by gas and furnace oil, comprising four units; TPS-Kotri facility comprises seven units with 174 mw capacity. JPCL sell-off process was started in April 2002 with the appointment of Price Waterhouse Cooper (PWC) as Financial Advisor. The government approved the transaction structure for the sale of 51 percent of its shareholding in the company, along with transfer of management.

The Expressions of Interest (EoIs) for privatisation of JPCL were initially invited in February 2003. Eight parties submitted EoIs; three parties shared interest. However, all parties lost interest due to delay in tariff determination by Nepra.

Second time, EoIs were invited on August 25, 2004. Twelve parties submitted EoIs but only four submitted Statement of Qualifications (SoQs) by the due date. However, the transaction could not be carried forward as Nepra had not determined the appropriate tariff and there were problems on the mutation of two out of three land lots held by JPCL.

Jamshoro Thermal Power Station (TPS) of JPCL is built on 485-10 acres and 19-01 acres lands respectively but their titles are yet to be transferred in the name of JPCL. Wapda took possession of the lands from Sindh government in September 1985 after paying Rs 10, 614,604 for 485-10 acres land in June 1985 at Rs 5 per square yard. Sindh government subsequently fixed the price of the land at Rs 46,972,200 in July 1994 at Rs 20 per square yard. Wapda disputed the rate and price of land fixed by the provincial government, and did not pay the balance amount.

Sources said that the GoP initiated the privatisation of JPCL in 2002 and in view of the importance of its privatisation the PC made the balance payment of Rs 36,357,596 to the Government of Sindh (GoS) in April 2006 on behalf of Wapda/JPCL. However, GoS did not transfer the land in the name of JPCL after the payment, and claimed a surcharge of 10 percent per annum from possession of the land.

The PC agreed to this and requested the GoS to issue a challan of Rs 43, 326,135 as the surcharge payment for resolution of outstanding land issues in the name of JPCL. GoS has not yet issued the challan despite Privatisation Commission's repeated requests.

Meanwhile, Ministry of Water and Power was informed on January 21, 2009 that the Private Power Infrastructure Board (PPIB) has submitted an option to lease out, rehabilitate, and operate TPS-Jamshoro for 15 years, whereafter the asset can be privatised after value-addition/upgradation.

Since the initiation of the privatisation process, the Privatisation Commission has incurred the following expenses for JPCL transaction, which have to be recovered by the Privatisation Commission from the privatisation, or lease, proceeds:

Milestone fee and out-of-pocket expenditures to FA $1,557, 163 and payment of cost of land to Sindh government on Rs 39,325,496 on behalf of Wapda. The matter was discussed in the PC Board meeting on January 26, 2009. The Board recommended that a joint inter-ministerial transaction committee, comprising members from Ministry of Water and Power, Ministry of Finance, PPIB, Pepco and PC under the chairmanship of Secretary, PC, be constituted in order to conduct the transaction and formulate the modalities to lease, rehabilitate and operate the TPS-Jamshoro and Kotri. A meeting of the said committee was held on February 4, 2009.

Sources said that CCoP had approved the privatisation of JPCL in its meeting on October 1, 2001. It is now proposed to lease TPS, Jamshoro and Kotri, instead of strategic sale.

THE FOLLOWING PROPOSAL HAS BEEN SUBMITTED FOR APPROVAL OF THE CCOP: "The PC has exclusive jurisdiction over lease transactions in terms of section 25 of the Privatisation Commission Ordinance 2000. The Privatisation Commission may, therefore, conduct the lease transaction. The lease transaction may be conducted as a joint transaction by the Privatisation Commission, Ministry of Water & Power, Ministry of Finance, PPIB and Pepco who will all be represented on the transaction committee." Sources said the proposal is likely to be cleared by the CCoP in its meeting on Tuesday.

 

[Neo]

PPIB gets 10 bids for rental power projects​

ISLAMABAD (February 17 2009): Private Power and Infrastructure Board (PPIB) on Monday received 10 bids for 1,191 MW of cumulative capacity, translating to around $1.42 billion of investment. This was stated by the Managing Director PPIB Fayyaz Elahi in the bid opening ceremony held on Monday at PPIB.

The Ceremony was also attended by senior officials of PPIB, WPPO, Nepra and Ministry of Finance. A two-envelope approach has been adopted for bidding, and on Monday, the first envelope of the bids containing Qualifications, ie Technical and Financial were opened, while the Tariff Bids (Envelope-II) will be opened after evaluation of Qualifications.

The bid opening ceremony held on Monday is a continuation of the "Fast Track Private Power Projects" initiative of the government of Pakistan. The initial phase of which has already resulted in project solicitations of 780 MWs of rentals expected to come on line by end 2009, and a fast track IPP of 172 MW expected by mid 2010, while another three IPP proposals of 964 MW are under evaluation which are expected to be commissioned in 2010/11.

The Managing Director PPIB said that fast track rental power projects for 2009 are being considered which would hopefully be the last exercise for soliciting rental projects under the current fast track initiatives so as to plug the current supply demand gap, he continued, we would not like to commit too many rentals beyond the need to eliminate the load shedding presently being experienced in the system.

A healthy response has been received, despite the world-wide economic crunch. A total of fifteen parties procured the Request for Proposals (RFP) and on Monday 10 parties have submitted bids which include 57.81 MW Premier Energy proposed at Pasrur, 110 MW coal fired New Park Energy proposed near Nooriabad, 170 MW Ruba Energy proposed at Batapur near Lahore, 73.92 MW Tapal Group Project proposed at Kamoki, 220 MW Reshma Power proposed at Narwala near Faisalabad, 100 MW Trimax Power proposed near Chakwal, 85 MW Sialkot Rental Power proposed at Sialkot, 170 MW MHK Energy proposed near Gujrat, 138 MW Radian Energy proposed at Pasrur, and 66 MW Grid Power Generation proposed at Mirpur Khas. The qualifying bidders are expected to be issued Letters of Award (LoA) by end March, 2009, and the projects are expected to be commissioned by end 2009.-PR

 

[Neo]

Pakistan becomes destination of choice for FDI: Prime Minister​

ISLAMABAD (February 17 2009): Prime Minister, Syed Yusaf Raza Gilani has said that due to country's geo-strategic location, availability of skilled manpower, better infrastructure, provision of raw material and low manufacturing cost, Pakistan has become a destination of choice for foreign investments. The Prime Minister was talking to the Chairman, Board of Investment (BOI), Saleem H Mandviwala, who called on him here the PM's House on Monday.

During the meeting the prime minister expressed the hope that BOI under the leadership of Mandviwala would work vigorously towards bringing more foreign direct investment in the country as he underscores the need for persuading the foreign investors to take full advantage of the investment friendly atmosphere present in the country.

Meanwhile, Mandviwala informed the prime minister that the BOI has already started prioritising its goals and targets keeping in view the specific instructions given by the government, adding that various initiatives for bringing more FDI into the country are under way and expressed the hope that this year investment would surpass last year's figures.-PR

 

[Neo]

Pakistan assured of greater access to Australian market​

ISLAMABAD (February 17 2009): Australian Foreign Minister Stephen Smith on Monday assured Pakistan of boost in trade and economic co-operation and greater access to Pakistani goods in Australian market. Stephen also agreed to enhance at least four times the number of army personnel to be imparted capacity building training in his country in a bid to improve the efficiency of the Pakistani forces to combat terrorism and militancy.

The decision was taken at a meeting between Foreign Minister Shah Mehmood Qureshi with Stephen Smith, who arrived here on Monday. It was the first visit of an Australian Foreign Minister since 1998. Both sides also agreed to work on two Memorandum of Understanding - firstly to enhance co-operation between Australian Federal Police and Pakistan Anti-Narcotics Forces, secondly, to enhance co-operation between Pakistani Federal Investigation Agency (FIA) and Australian Federal Police (AFP) to check smuggling and crimes. These MoUs would be signed soon.

Addressing a joint press conference, Australian Foreign Minister Stephen Smith said that only military enforcement is not the solution to address militancy and socio-economic development. Political dialogue should be promoted to overcome the menace of terrorism and extremism.

The Australian Foreign Minister termed the enforcement of Nizam-e-Adl Regulation in Malakand Division a positive move of the Pakistani government. However, he pointed out that such agreements never proved fruitful in the past.

To a question, he said that steps taken by Pakistan in the aftermath of the Mumbai incident are also appreciable, saying that India should also play its positive role to maintain peace in the region. "Australia would appreciate if the composite dialogue process between India and Pakistan resumes," he added.

Stephen said that Pakistan and Australia could do more for enhancing co-operation in a various areas including agriculture, horticulture and trade. Besides, he said, the two countries would also enhance relations in the field of defence, promotion of civil society and strengthening democracy.

He further said that Australia would enhance the quota to impart training to the Pakistani military personnel to enable them for combating militancy in the region. He said that the two countries would also sign a MoU to check money laundering and narcotics.

Foreign Minister Shah Mehmood Qureshi said that Pakistan values its relations with Australia which are characterised by cordiality and friendship and desires to further deepen these ties through consistent engagement at the highest level. We have noted that the initiation of Defence Strategic Dialogue, Annual Bilateral Consultations between the two Foreign Offices as well as the formation of Joint Trade Committee would auger well for our bilateral relations.

He said that it is also gratifying to note that the two-way bilateral trade, (Australian $650 million approximately) though far below its existing potential, has increased. Australian companies have a significant presence in Pakistan and they are doing good business. He said that we are also happy that Australia has associated itself with the Friends of Democratic Pakistan Forum.

Qureshi said that he briefed Stephen Smith and his team on the internal situation in Pakistan especially the new government agenda and vision for the country for which the Australian Minister expressed his government's strong support.

"Within the context of bilateral trade, I made a case for enhanced market access for Pakistan which would enable us to generate more employment opportunities and root out poverty and extremism," he said. He said that both sides also held detailed deliberations on regional and international issues including the situation in Afghanistan, the constructive and positive steps taken by the government of Pakistan in the aftermath of Mumbai attacks and counter terrorism. Qureshi said that his Australian counterpart also praised our helping hand in Afghanistan's reconstruction and development, adding that he also reiterated that the war against terror could not be won by military means alone and that a multi-pronged strategy was required to root out the causes of terrorism and win the hearts and minds of the people.

Australia recognises that Pakistan is playing a pivotal role in the region and its security, stability and prosperity is vital for regional and international peace and security. Our efforts in addressing the challengers of extremism and terrorism and to promote national economic development require the support of the international community. We appreciate the understanding and support shown by Australia to our endeavours.

 

[Neo]

Pakistan to seek 4.5 billion dollars from IMF​

KARACHI (AFP) — Pakistan is to ask for an additional loan of 4.5 billion dollars from the International Monetary Fund to patch up an economy wilting under a widening trade deficit, an official said Tuesday.

The request will be on top of a 7.6 billion dollar advance already agreed with the IMF, and comes as Pakistani officials meet creditors to review how the cash is being spent.

At the talks in Dubai, which are due to last until February 26, Pakistani and IMF officials will assess financial targets set for the country to qualify for the second installment of the loan, a finance ministry official said.

"During that meeting, Pakistan will ask for an additional loan of 4.5 billion dollars," the official told AFP on condition of anonymity as he was not authorised by the government to release the information.

It was not immediately clear whether the IMF would grant the request.

Pakistan got 3.1 billion dollars in the first tranche of a 23-month standby IMF loan last November, with subsequent payments dependent on Islamabad fulfilling targets set by the Fund.

Among other tight demands, the IMF wants a reduction in Pakistan's deficit and its huge borrowing from the central State Bank of Pakistan.

"The IMF had given us a target of controlling the budget deficit at two percent, which we achieved at 1.9 percent by the end of the first half of this fiscal year," the finance ministry official said.

Pakistan's financial year ends on June 30.

"There has been a noticeable decline in the volume of government borrowing from the State Bank for budgetary support," the official said.

"Such borrowings reduced by 220 billion rupees (2.7 billion dollars) in the second quarter of this fiscal year," he added.

The central bank's recent decision to leave its discount rate unchanged at 15 percent for the remainder of the fiscal year was also in line with the Fund's preconditions, the official said.

The State Bank of Pakistan raised interest rates by two percentage points to 15 percent in November, the same month it received the IMF loan to stave off a balance of payments crisis.

Islamabad approached the IMF last year for a rescue package as it grappled with a 30-year high inflation rate and fast-depleting reserves that held barely enough to cover nine weeks of import bills.

Pakistan's economic growth is expected to fall to between 3.5 percent and 4.5 percent this fiscal year, the central bank said Saturday, slowed by domestic turmoil and the global economic crisis.

Analysts said loans were unavoidable until Pakistan reduces its trade deficit, which is 21.5 billion dollars this fiscal year.

"The government will have to make revolutionary changes in its export policy to get the trade deficit narrowed but that will take a few years," Kaiser Bengali, an independent economist, told AFP.

"Until then we'll have look for money from outside."

Pakistan's precarious financial situation had caused worldwide alarm due to its role as a key ally in the US-led "war on terror" and its position as the world's only nuclear armed Islamic power.

 

[Jihad]

When will we have to pay all this money back to them..?
How much more will our government need or seek from the IMF?
How bad is the situation actually regarding our economy?

 

[Omar1984]

Tajikistan offers to export electricity to Pakistan

ISLAMABAD: Tajikistan has offered Pakistan to export electricity according to its needs aimed to meet recent energy crisis in the country effectively.

Ambassador of Tajikistan in Pakistan, Zubayadulla Zybaydov has made this offer during his meeting with Federal Minister for Water and Power, Raja Pervaiz Ashraf held here on Tuesday.

The Tajik ambassador said that Tajikistan not only self-sufficient in the production of electricity but is ready to export electricity to Pakistan.

Raja Pervaiz Ashraf while talking on this occasion said that Pakistan would welcome investment from Tajikistan in several hydel power projects to produce 25,000 megawatt electricity. The minister assured that special incentives would be given to Tajik investors.

The federal minister informed that Pakistan would host Pak-Tajik Ministerial Commission to be held in the mid of current year which would discuss to enhance cooperation between two countries in trade, economic and social relations specially to enhance cooperation in water and electricity sectors.

It was agreed in the meeting that two people would be appointed for the preparation of Joint Ministerial Commission from ministry of water and power and Tajik embassy while it was also agreed to speedup the pace of implementation of decisions taken in the previous ministerial commission.

ONLINE - International News Network