Pakistan Economy - News & Updates - Archive

[Omar1984]

Gold hits record level of Rs 28,330/tola
* Reaches highest level of Rs 24,285/10 grams

By Moonis Ahmed

KARACHI: The prices of gold faced an upward trend making a new record level of Rs 24,285 per 10 grams, reflecting an increase of Rs 500 per 10 grams and by Rs 580 to Rs 28,330 per tola.

In the international market the yellow metal was also up by $22 to reach $966 an ounce as compared to $944 last day. Following the rising trend in its price the precious metal has surged by Rs 1,314 per 10 grams during the last 10 days, attracting a large number of investors.

President All-Pakistan Supreme Council of Jewellers Association, Alhaj Haroon Rashid Chand said after recent global recession most investors have turned up with their investments to this yellow metal and now this precious metal is regaining interest in the country with rising prices.

Haroon said that after collapsing of real state business all over the world and due to the increasing prices of commodity, investors are coming towards the yellow metal.

He said that many investors were hoping that gold would fall in value but on the contrary, the precious yellow metal’s continuous rise has investors thinking again and many may eventually return to gold trading, a practice that had been cold for several months.

“On the contrary, the frequent price hike is giving a negative impression to the consumers as being more expensive in value the gold is going out from the range of middle class man,” he said. Local bullion market has been showing an increasing trend in prices that is keeping the consumers away from the market and now despite the ongoing marriage season only 30-40 percent sale is being witnessed, he added.

“People who used to buy 22-20 carat gold, now are buying only 16-12 carat gold.” In a society where the disparity between rich and poor is on the rise, for middle class families about 80 percent of the total 20 million population of Karachi, a daughter’s marriage has become a big financial challenge and most of the people have changed their lavish lifestyles, he said. The rising cost of living due to inflation and other pressures of paying high utility bills leave most of them groaning.

Mrs Kamal, a mother of four children and school teacher said that there was a ritual of giving good quality and most expensive gold to our daughters in our family, but as the high level of inflation has broken the back of a common man, now we are compelled to give normal gold to our daughters,” she lamented.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Circular debt clearance: Rs 98 billion TFCs to be floated by month-end​

ISLAMABAD (February 18 2009): The government has decided to float term finance certificates (TFCs) of Rs 98 billion to resolve the outstanding circular debt issue. The TFCs will be available on kibor plus margin of 1.75 percent. Under the Securities and Exchange Commission of Pakistan (SECP) regulations, the 'Term Finance Certificate' is a debt instrument issued for the purpose of raising funds as redeemable capital.

Sources in Finance Ministry told Business Recorder that the TFCs would help the Pakistan Electric Power Company (Pepco) to retire the circular debt. The government is expected to float TFCs by the end of the current month, sources added.

Earlier, the government had planned to generate Rs 75-80 billion through floating TFCs but now the amount has been raised to Rs 98 billion to retire circular the debt of Rs 159 billion. The current amount of circular debt is Rs 180 billion. Banks had demanded kibor plus margin of 4-5 percent, but the settlement has been made between government and banks at Kibor plus margin of 1.75 percent.

The TFCs will be floated for four years, plus one year grace period, to be securitised on receivable of Pepco at Rs 270 billion from Karachi Electric Supply Company (KESC), Federally Administered Tribal Areas (FATA) and other departments. Sources said that Pepco would pay to banks what it would receive from its clients. Advisor to Prime Minister on Finance Shaukat Tarin has directed to expedite the campaign of recoveries to retire the circular debt.

Pepco is to give Rs 31 billion to Water and Power Development Authority (Wapda) and the said amount would be paid from the money generated from the sale of TFCs. Pakistan State Oil (PSO) claims Rs 68 billion from power producers. Remaining amount of Rs 67 billion will be paid to PSO through independent power producers (IPPs) to ensure the smooth supply of furnace oil for power generation purposes. PSO is also to pay Rs 63 billion to oil refineries.

 

[Omar1984]

Wheat donation by Punjab CM slashes its rates

By Tanveer Sher

KARACHI: The recent wheat donation announced by the Punjab Chief Minister Shahbaz Sharif to Sindh has declined its rate in the open market.

The Punjab CM, taking cognizance of shortage of wheat problem in Sindh during his recent visit, had announced a donation of some 50,000 metric tonnes of the commodity to replenish its fast depleting stocks in the godowns of the provincial food department.

While the new Sindh wheat crop was anticipated to reach the market by the first week of next month, Provincial Food Minister, Mir Nadir Ali Magsi had recently admitted at the floor of the Sindh Assembly that the province was facing an acute shortage of the commodity. Consequently wheat rate in the open market started plunging during the last two days from previous rate of Rs 2,650 per 100 kg bag to current Rs 2,450 for the same weight.

Following the declining wheat price, ex-flour mills’ rate also went down to Rs 280 per 10 kg bag as compared to previous the price of Rs 300 for the same weight.

An official of the Sindh Food Department informed that the current wheat crop in Sindh is expected to be a bumper one following upward revision in the wheat support price as announced previous year by Prime Minister, Yousuf Raza Gillani.

New wheat procurement rate has been revised by the government which is now Rs 2,400 per 100 kg bag as compared with old price of around Rs 1,700 for the same weight. He did not rule out further decline in the wheat rate in the open market in view of expected arrival of its bumper crop within 20 days from Mirpurkhas, Jhaddo, Dadu, Thatta and Sakru areas of interior Sindh.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Current account deficit narrows in January​

KARACHI (February 18 2009): The country's current account deficit reduced by 25 percent during January 2009 due to the rise in services exports and decline in global commodity prices. State Bank of Pakistan statistics on Tuesday showed that current account deficit reduced to $411 million in January 2009 against $551 million in December 2008, depicting a decline of $140 million in a single month.

However, overall current account deficit increased by 1.58 percent to $7.758 billion during seven months of current fiscal year as compared to $7.633 billion of last fiscal year. SBP figures showed that despite a deficit of $411 million in January, the overall balance was positive as $565 million had been inducted in foreign exchange reserves. Services sector presented a significant improvement and contributed major share in the depleting current account deficit, while there is upward trend in goods and income deficit.

Services sector deficit decline by 38 percent to $2.471 billion with $2.161 billion exports and $4.632 billion imports in July-January of current fiscal year as compared to $3.968 billion, with $5.58 billion imports and $1.614 billion export in corresponding period of last fiscal year.

"The improving current account situation also indicates overall economic stability, and we are expecting further stability in the near future", economists said. With the current declining trend, the IMF's target of current account deficit would be easily met and declining trend would also help to get second instalment of IMF standby loan of $7.1 billion on time, they said.

Overall deficit including goods, services and income stood at $13.635 billion against current account transfers of $5.961 billion during July-January of fiscal year 2008-09. Goods imports stood at around $20 billion and exports at $11.465 billion with a trade deficit of $8.533 billion against $7.955 billion of same period of last fiscal year.

Income deficit surged by 21 percent, to $2.631 billion as compared to $2.180 billion of last fiscal year. Income from abroad stood at 4 678 million in July-January period as compared to payments of $3.309 billion. Statistics show current account deficit without official transfers climbed to $7.867 billion as compared to $7.668 billion during last fiscal year.

 

[Neo]

Two power projects insurance: negative response received from French company​

ISLAMABAD (February 18 2009): The Pakistan Electric Power Company (Pepco) is reported to have received a negative response from Compagnie Francaise D'assurance Pour Le Commerce Exterieur (Coface) for insuring two vital power sector projects ie Chichoki Mallian and Nandipur, sources in Private Power Infrastructure Board (PPIB) told Business Recorder.

'Coface', established in 1946 and later privatised, is a world leader in trade credit information and protection (trade credit insurance) and serves around 85,000 clients in 93 countries. It has expanded in related fields of trade finance, including factoring, and accounts receivable management.

"Pakistan's low credit rating is one of the reasons for Coface's concern and they are waiting for the end of the current fiscal year to see if Pakistan gets an improved rating," sources said.

The contract for Chichoki Mallian and Nandipur projects was awarded to a Chinese company, Dong Fong Electric Company (DEC), which failed to generate the requisite funds. A few months ago, Beijing office of BNP Paribas office, an internationally reputed French bank, refused to finance these power sector projects which were not on the list of those presented by Pakistan government to the Chinese government. More recently, BNP Paribas had agreed to finance Nandipur power project, but its insurance is still an issue as Coface is unwilling to insure the project, sources added.

Pakistan Embassy in Paris has been trying to convince the relevant officials to allow the company to ensure the project, but nothing has materialised so far, sources said. "Pepco should not link Coface guarantee of Chichoki Mallian power project with Nandipur, as any such insistence may adversely affect the decision already taken by the French in the case of Nandipur power project," an official in Pepco told this scribe.

In November, 2008, Pepco had sent a delegation to Beijing, led by Abdul Qadeer, Member, Finance, to discuss financing for Guddu thermal power project, and to assess progress on Nandipur and Chichoki Mallian projects, which had already been awarded to the Chinese firm. Deliberations were held between Didier Lietaer, Global Head of Organisation (Export Finance), and Ms Li Hong, Vice President, Export Finance, Zhan Lei, Proposal Manager of Harbin Power Engineering of China and Pakistan delegation, including Pakistan Embassy officials.

According to sources, Pakistan Embassy in Paris has also advised Pepco to pursue the case with Exim Bank/Sinsore to take a lead role and provide the necessary insurance in Chichoki Mallian power project. This may lead to the French considering the case more favourably, they added.

Regarding Nandipur, HSBC said that the project had been approved by Sinosure, but this approval was not enough as there were certain other approvals that were pending, including approvals of Chinese Ministries of Commerce and Finance.

This process may take further three to six months. Sinosure, China's first wholly state-owned policy insurer, can insure both China's overseas investments and overseas investments in China, guaranteeing either shares or loans. Sources said that President Asif Ali Zardari would take up the power sector issues with the Chinese leadership during his forthcoming visit to Beijing.

 

[Neo]

July-December repayment stands at $1.8 billion​

ISLAMABAD (February 18 2009): Pakistan has made $1.8 billion loan repayment to international financiers and countries during the first six months (July-December) of current fiscal year, Sources told Business Recorder that Pakistan makes repayment to international financiers and countries twice in a year and the government made repayment of $1.8 billion loan during the first six months of 2008-09.

Auditor General of Pakistan had pointed out in the meeting of Public Accounts Committee (PAC) on Monday that the loan figures of EAD did not match with the loan figures of the ADB and the World Bank. Sources said that the EAD is using the Debt Management and Financial Analysis System (DMFAS) software that is being used around the world.

The government debt stood at $39.7 billion on September 30, 2008. Multilateral debt was $21.458 billion that included ADB $9.910 billion, IBRD $1.919 billion, IDA $9.192 billion. The others financiers include EIB $70 million, IDB $139 million, Ifad $174 million, NORD. DEV. FUND $18 million, NORD I BANK $10 million and Opec Fund $26 million. Bilateral debt stood at $14.892 billion.

The external debt from Paris Club countries stood at $13. 687 billion including Australia $78 million, Belgium $38 million, Canada $523 million, Finland $6 million, France $2.352 billion, Germany $2.004 billion, Italy $111 million, Japan $5.912 billion, Korea $489 million, Netherlands $127 million, Norway $25 million, Russia $125 million, Spain $80 million, Sweden $157 million, Switzerland $105 million, United Kingdom $12 million and the United States $1.542 billion.

The government debt other than non-Paris Club countries stood at $1.205 billion, Bahrain $12 million, China $940 million, Kuwait $86 million, Libya $5 million, Saudi Arabia $96 million and United Arab Emirates $66 million. Eurobond/Sukuk/global bonds $2.650 billion, local currency bonds (T-Bills & PIBs) $15 million and short-term debt - IBD $540 million.

 

[Neo]

Market access for Pakistani products: US seeks unified idea to help evolve strategy​

LAHORE (February 18 2009): The United States Administration is evolving a strategy that would ensure greater market access to the Pakistani products, but the Pakistani businessmen should strengthen bilateral trade between the two countries. Principal Officer in US Consulate Bryan D Hunt stated this while addressing the business community at the Lahore Chamber of Commerce and Industry (LCCI) here on Tuesday.

He asked the business community to come up with a unified idea to promote bilateral trade between Pakistan and the United States that could be made part of the new strategy, being evolved by the US Administration. He said that there was a policy shift in the United States as the security was top on the agenda of the Bush Administration, but President Barak Obama wanted more resources to be allocated for education, social and economic sectors.

The United States wanted to play a constructive role in this part of the region and was focusing on ending the mistrust between Pakistan, India and Afghanistan, he said. Hunt said the United States was shifting its focus from military action to basic law-enforcement, particularly in NWFP and Fata as law-enforcement in Pakistan direly needed significant support from international community.

LCCI President Mian Muzaffar Ali, speaking on the occasion, told the US official that the US drone attacks in Tribal Areas were not only tarnishing the image of the United States, but also creating unrest in the whole country, therefore, the drone attacks should immediately be stopped. "Pakistani people have attached high hopes with the new administration of President Barak Obama and consider the drone attacks a violation of Pakistan's sovereignty and territorial integrity," he added.

Pakistan and the United States had enjoyed pleasant relations for a fairer, freer, and peaceful world for more than six decades. The two countries have been strategic partners in the region from the days of cold war, he said, adding that in the war against terrorism after 9/11, Pakistan had stood firm as a frontline state in times of regional and global challenges.

As a frontline ally, he said, Pakistan had paid a heavy price by going against the will of its people. More than 5,000 members of Pakistan armed forces, including para-military forces, and a much larger number of civilians had lost their lives in the war, he added.

He stressed the need for ensuring a common stance on how the two countries could cooperate not only in fighting against terrorism, but also in the fields of education, health, trade, infrastructure and capacity building.

The LCCI President said the United States must also ensure a duty-free access to Pakistani products in the US markets, which would certainly provide a key to normalising our long-lasting bilateral relations. Senior Vice-President of LCCI Tahir Javaid Malik said the Business delegations composed of sector-specific participants or product-specific group of entrepreneurs should be organised regularly while the business houses and diplomatic mission should be encouraged to play their role for tangible results.

 

[Neo]

Pak-India trade through Wagah rises to $31m from $20m ​

Wednesday, February 18, 2009

LAHORE: Trade with India through Wagha border substantially increased in the first seven months (July 2008 to January 2009) of the current fiscal year as Pakistan imported around $31 million worth of goods compared to last year’s $20 million.

According to official figures available with The News, a quantum jump has been recorded in import of different items from India through Wagha border this fiscal year. During the whole last fiscal, Pakistan imported goods worth $48.51 million through the route.

Pakistan is importing tomato, potato, onion, meat, garlic, cotton, maize and animals from Wagha land route but exports nothing to India through land due to non-tariff barriers imposed by Delhi.

The data depicted Pakistan had imported about $6 million worth of tomato with quantity of 31,354 tonnes. Besides that, 322 tonnes of meat, 88,485 tonnes of potato, 6,997 tonnes of cotton and 1,745 tonnes of maize had been imported.

Compared to those, during the last fiscal year tomato import totaled 110,038 tonnes, onion 12,651 tonnes, meat 4,570 tonnes, potato 1,243 tonnes, cotton 1,921 tonnes, maize 7,100 tonnes and 3,791 animals.

No import of onion took place in December and January while last year traders had imported 12,651 tonnes of onion on in these two months due to scarcity and lower price offered by Indian traders. However, this year no major shortage of onion has occurred but it is expected that traders would import the commodity in the coming days following its shortage in the local market.

Imran, an importer of vegetables from India, said trade in vegetables with Delhi was only seasonal. “Pakistani traders import some seasonal vegetables through India when these are scarce as they get good price during scarcity while in crop season import of vegetables through India is not a viable business,” he said.

Currently, only tomato was a major item being imported from India. Import of potato had sharply come down and almost ended in February after the government imposed import duty in order to protect local farmers, he said.

Meanwhile, porters and customs officials deputed at Wagha border said tensions with India after Mumbai attacks in Nov last year had no major impact on Wagha trade. “The Indians are wise enough and know that they are gaining from this route. That is why they have not imposed any restrictions on their exporters,” one commented.

 

[Neo]

Pak Steel, PIA dropped from privatisation list ​

New policy with PPP model approved​

Wednesday, February 18, 2009

ISLAMABAD: The federal government while dropping Pakistan Steel and PIA from the privatisation list has placed a new list under the Public-Private Partnership (PPP) model to make it a win-win policy.

The government on Tuesday approved a new privatisation policy with primary model of 26 per cent share with management control of public entities to interested parties, said the Federal Minister for Privatisation, Syed Naveed Qamar.

The list includes SME Bank Limited, Peshawar Electric Supply Company (PESCO), National Power Construction Company (NPCC) with 51 per cent divestment, Faisalabad Electric Supply Company (FESCO), Jamshoro Power Company (JPCL) on lease, Heavy Electrical Complex (HEC), Pakistan Machine Tool Factory, Pakistan Mineral Development Corporation (PMDC), Morafco Industries, Pakistan Railways (PR), PTDC motels and restaurants, Utility Stores Corporation (USC), Pakistan Post, Kot Addu Power Company (KAPCO), National Insurance Company (NIC), Pakistan Reinsurance Company, State Life Insurance Corporation (SLIC), Printing Corporation of Pakistan, Services International Hotels, Sindh Engineering Limited and Republic Motors Limited.

Giving details of the PPP model, the federal minister said workers’ share will also be enhanced from 10 per cent to 12 per cent and it would also be de-linked with the privatisation process.

The remaining shares of privatised entities would be kept by the government and after turnaround of the units, the minister said, the sale of such units would be considered by the government and the regulators would also be strengthened to protect the interest of consumers.

For the right of ownership of privatised units, the minister said that technical advisers would be appointed. New sectors would also be studied for privatisation, he added.

Responding to various queries, the minister said that the various aspects like unbundling, regulation and other technical issues of upcoming privatisation units will be dealt with.

To a question about budgeted proceeds of Rs39 billion, the minister said that policies of the previous regimes were only to widen the budget deficit and they would not be followed. The current PPP model pursued by the PPP government will be further improved by addressing legislative issues.

To a question about continuation in privatisation proceeds, the minister said that the government had no commitment with multilateral agencies to raise money from privatisation. However, the revamping policy will continue.

About PSM and Qadirpur field, the minister said that both entities would not be on the active list of privatisation. To a question about probing previous privatised units, the minister said that the government is conducting an audit and it would be placed before the Public Accounts Committee of the National Assembly.

The minister further said that the government will devise such a model of privatisation that valuation of entities would be increased and the government will reap dividends of such benefits.

 

[Neo]

‘IT industry could touch $10bn export in next 5 years’ ​

Wednesday, February 18, 2009
By M Farhan Zaheer

KARACHI: Adnan H Lawai, who came to Pakistan after working in Silicon Valley, San Francisco, United States for 12 years in the field of Information Technology (IT), is now running a fast growing IT company in Pakistan that he set up with his friend three years back.

Adnan H Lawai, CEO of folio3 is a Karachi-based IT company, said I and my partner Umair (who is in USA) started folio3 three years ago with most of our customers from USA.

After completing my college education there, I worked as an IT professional for 12 years in Silicon Valley. We both had some good contacts in US especially in the field of technology because we have been working with some prestigious companies there. The company grew at a tremendous speed and expanded its operations more than three times in last 3 years.

In late 90s, there was a boom in the field of technology all over the world and people thronged this field, the same was the phenomenon in Pakistan. But in 2001 and 2002, it collapsed and the same results were also felt here in Pakistan. We took this as an opportunity in disguise and started our operation in Pakistan. We could afford to hire people and could get very good talent, so we accepted that challenge. We were among the very few of IT companies that started hiring in that difficult time.

The year 2005 brought positive signs for the country’s IT sector and it again started booming and this time we went to universities and hired best talent directly. Later in 2006 when we started this company, we faced a very tough competition. But fortunately by then, we had established a very good reputation in the market, the environment was good and fresh university graduates were coming to us.

In Karachi, we retain some 90 employees. Another branch of our company is in Sofia, Bulgaria where we have one dozen Bulgarian employees because if you look for experienced people you will not find here in Pakistan. But there you will find specific field experts unlike Pakistan. Second reason, why we went to Bulgaria, is that we have a trusted friend in Bulgaria who established all in Sofia. Karachi is home to many IT companies but these companies are relatively smaller to those that are working in Lahore. From 2002 up to date, IT industry has witnessed massive growth and our software exports are growing at a rate of 50 per cent.

Many of our companies are small and if we desire sustainable software growth in our exports, we would need to establish big companies.

We are in early stages of IT industry development, even the largest company in Pakistan System Limited has got 600 to 700 employees, which is just a good mid size company. “In terms of quality, we could compete any where else in the world. For example, if you look at India, a preferred IT offshore destination, when ever we

compete against Indian companies we have always won,” Adnan said.

“If you take any good IT company in Pakistan, you will find that all is doing higher quality work as compared to India.” When asked are you satisfied with our IT universities, he replied, “Our universities can be better a lot, they have very good raw talent but they do not groom that talent appropriately. I mean students are naturally brilliant, and what they just need is a good training,” We hire only top 3 to 4 per cent students from top three universities in Karachi such as Karachi University, NED and FAST, though they also need training but get all the pre-requisites easily.

IT industry unfortunately does not have good examples. In IT we do not have too many good companies so a few experienced people stay in Pakistan. Though, here we have many including more than 7 years of experience, earning handsome salary, and doing very interesting work.

When asked what happened in late 2002 that IT industry had grown phenomenally without solid grounds, that is why it had to face a tough period in west, it had the same crippling effects in Pakistan.

But this time growth in IT has strong credentials. Look at the last 3-4 years growth and compared it to what we had 10 years ago, he said hopefully.

The enrolment of students in IT institutes had started declining after the bubble burst of 2002, now in the last 1 or 2 years it is rising again because of the growing salaries and expanding the industry.

Now, we have some solid companies run by the professional Pakistanis who have been working abroad and they know what to do in order to work sustainably, which is a big change.

Replying to a question that where do you see local IT industry in next 5 years he said It will continue to grow, our export will certainly match Pakistan Software Export Board (PSEB) estimates and we would touch $10 billion export in next 5 years. Here, we have political instability which creates economic problems and it really hampers our growth.

 

[Neo]

Pakistan should turn crisis into opportunity: Ebad ​

10-year tax exemption for agro-based industries under consideration​

Wednesday, February 18, 2009

KARACHI: Sindh Governor Dr Ishtratul Ebad has said the international financial crisis has brought Pakistan at the crossroads where it has only two options: to turn this crisis into an opportunity or to miss it.

He said, “Pakistan is not directly affected by the international financial crisis, we are affected indirectly. It is time to find ways to turn this crisis into an opportunity.”

Speaking to businessmen at a luncheon meeting at the Korangi Association of Trade and Industry (KATI) on Tuesday, he said problems being faced by the trade and industry would be taken up with the president and prime minister so that they could be solved on a fast track basis.

He said, “Global economy is in shambles now,” but it did not affect Pakistan’s economy to the extent that it affected many other countries.

He directed the police department to make arrangements to improve security in the Korangi Industrial Area as per demands of businessmen. He instructed Town Nazim of Korangi, Arif Khan, to look into the problems pertaining to out-of-order telephone lines in the area. He said most of the problems in industrial areas like road network and law and order situation have eased during his tenure in the last six years.

Minister for Industries Abdul Rauf Siddiqi, on the occasion, announced that tax exemption for agro-based industries in interior Sindh for 10 years is being considered and a formal decision would be made soon. He informed that in order to improve the law and order situation in industrial zones at Super Highway, boundary walls are being constructed with the help of industrialists in the area.

He further announced that water supply schemes to Nooriabad Industrial Area would be completed within seven months. He also said that the private sector would be allowed to set up to 200 megawatts power plants instead of 50 megawatts.

Mian Zahid Husain, Chairman KATI in his welcome address spelled out the details of various problems being faced by the trade and industry. He said that due to the current economic crisis, 150 industries have been closed down besides the 10,000 weaving units that were shut-down due to the situation, rendering 300,000 workers unemployed.

He warned that if the situation prevails further, severe threat to the law and order will arise. He demanded of the power corridors to reduce mark-up rates especially for the industrial sector to bring it to the level of at least 12 per cent. He also demanded to exempt industries from load-shedding of power and gas and announce compensation to the affectees of the December 27 tragedy.

He said that the government should extend moratorium of one to one and a half year on the repayment of principal amount of loans provided by banks to industries along with mark-up thereon. He lauded the efforts of the Sindh Industry Minister for his services for the execution of water supply scheme to the Nooriabad Industrial area.

He thanked the MQM leadership for electing a business representative Abdul Haseeb Khan as Senator.

The Patron in Chief, KATI, S M Muneer in his address lamented the high rates of interest in the country which are prevailing at the rate of 18 per cent.

 

[Omar1984]

Six projects of Information Ministry discontinued

By Zulfiqar Ghuman

ISLAMABAD: As many as six ongoing development projects, with a value of Rs 1.56 billion, of the Information and Broadcasting Ministry have been discontinued at least for the current fiscal year because of the prevailing financial crunch, Daily Times has learnt.

“These projects of the Information and Broadcasting Ministry have been discontinued for the ongoing fiscal year, and will not be provided any funds during this period. The government had allocated Rs 96.6 million in the Public Sector Development Programme (PSDP) for the current year for these schemes, but no releases were made because of the economic crisis,” said sources.

According to documents available with Daily Times, the following projects have been discontinued: the installation of a TV booster in Shangla area of Swat; the establishment of 47 FM radio stations across the country; the installation of a transmitter in Gwadar; the establishment of up-linking stations in Islamabad, Lahore, Karachi, Peshawar and Quetta; the expansion of educational TV channels (phase-II); and the establishment of the 100 KW MWB T/R Parachinar (FATA).

As per the breakdown of these projects, the government had allocated Rs 187.2 million to the planned 47 radio stations in the country with the total cost of the project estimated to be Rs 475.5 million, while Rs 12.9 million were allocated for the installation of a TV booster in Shangla with the total cost of this scheme projected at Rs 52.9 million.

Similarly, the government had allocated Rs 66.3 million for the current year to the Rs 139.8 million value project of a 100 KW/MW transmitter in Gwadar and Rs 2 million to the project for the establishment of up-linking stations.

The expansion of educational TV channel (phase-II) is estimated to cost Rs 722.3 million, with a foreign component of Rs 698.7. The government allocation for this project was only Rs 3 million.

Daily Times - Leading News Resource of Pakistan

 

[ajpirzada]

Pakistan’s current account deficit for Jan narrows 25 pc
Wednesday, 18 Feb, 2009 | 01:44 PM PST | The State Bank of Pakistan's latest bulletain showed positive signs for the economy - File photo. KARACHI: Pakistan’s current account deficit for January narrowed 25.4 percent to $411 million, compared with $551 million in December, the State Bank of Pakistan said on its website.

Analysts said this was due to lower international oil and commodity prices along with higher remittances from overseas Pakistanis, Reuters reported.

However, the current account deficit widened in the first seven months of the fiscal year of 2008/09 (July-June) to $7.754 billion, compared with $7.633 billion for the same period last year, the SBP said on Wednesday.

‘Full year forecasts for the deficit should be around $9.2 billion to $9.5 billion compared with last year’s current account deficit of $14.036 billion,’ said Asif Qureshi, head of research at Invisor Securities Ltd.

The deficit would be well within the target of 6.5 percent of gross domestic product set by the International Monetary Fund, he added.

Pakistan entered into a 23-month stand-by arrangement of $7.6 billion from the IMF in Nov. The IMF team is meeting with the Pakistani delegation in Dubai from Feb. 14 to Feb. 26 for its review of the first quarter ended Dec. 31.

However analysts said Pakistan needs long term structural reforms to increase exports and decrease dependency on imports.

‘Without long term structural reforms to address the inherent weakeness in the country’s trade account, the balance of payments will remain exposed to exogenous supply/demand side shocks, said Asad Farid, economist at AKD Securities Ltd.

http://www.dawn.net/wps/wcm/connect...ent-account-deficit-for-jan-narrows-25-pc--il

 

[Omar1984]

Kazak companies keen to invest in Pakistan

Updated at: 0730 PST, Wednesday, February 18, 2009

ISLAMABAD: A delegation from Southern Companies Group Kazakhstan here on Tuesday visited Board of Investment to discuss issues related to investment in various sectors of economy.

The delegation, led by Igor Tomas, President of the Group, is visiting Pakistan to explore investment opportunities in power, oil and gas as well as energy conservation sectors.

The delegation members included Companies’ General Manager, Ms. Natalya Badenova and its Director Marketing, Yedge Yessen Kuov.

The delegation interacted with BOI senior officials, including Iqbal Ahmad and Riaz Ul Haq Executive Director Generals as well as with the senior representatives of Ministry of Petroleum and Natural Resources, PPIB, Alternative Energy Development Board and National Energy Conservation Centre.

The delegation was apprised about tremendous potential in the energy sector due to the seriously worsening gap between energy supply and demand, non-sustainability of fossil fuels (limited oil and gas reserves), unpredictability of oil prices, lack of energy conservation culture and huge renewable hydel and wind potential.

It was further informed by ENERCON that estimated saving potential for Pakistan through energy efficiency is US $ 2 billion annually.

While referring to the opportunities in hydel and coal for private sector, PPIB representative informed the delegates that so far only around 6,000 MW has been tapped from an estimated potential of 45,000 MW for the development of small, medium and mega Hydropower projects.

Also Pakistan’s Thar Coal Reserve are estimated at about 175 billion tons, which are still untapped.

The delegation members expressed their keen interest to invest in all major areas related to energy sector as there is huge potential and committed to visit in March this year to have basic assessment of opportunities and research completed in consultation and collaboration with the concerned ministries and departments.

Kazak companies keen to invest in Pakistan

 

[Omar1984]

Cotton sector to bear the brunt of cut in PSDP

By Razi Syed

KARACHI: Out of 16 agri projects discontinued by the federal government five projects are in cotton related sector, the stakeholders said Wedensday.

"Inadequate policies forced the government to discontinue the PSDP programmes, which were not only of great importance for the growth of agriculture but also for boosting country's cotton sector," Executive member of KCA and PYMA, Ghulam Rabbani said.

"Pakistan once again will not be able to achieve cotton crop target this season".

The federal government and Central Cotton Committee has failed to set the target of crop for this season, because of non-professional approach, biased data and ignoring real stakeholders in the field.

Rabbani said the construction of office building for Pakistan Central Cotton Committee (PCCC) at Karachi worth Rs 101.4 million is halted and will be included in PSDP 2009-10.

He said around Rs 50 million were allocated in PSDP and it was claimed the financial crisis compelled the government to discontinue funding for this project.

Another discontinued project from public financing was Managing Burewala Strain of Cotton Virus worth Rs 149.1 million. This was one of the prime projects to monitor and read virus on cotton.

Rabbani said around Rs 0.7 million were invested in the project till December 2008 while the government allocated Rs 4.9 million for 2008-09 but the financial constraints could not allowed the government to finance this project and it was forwarded in 2009-10 PSDP.

He said another discontinued project is 'Adaptation of Integrated Pest Management Approach for Cotton Crop in Sindh' worth Rs 75.5 million. It included a Reconstruction of Test House at Karachi worth Rs 71.3 million.

He said the growers were eyeing for the completion of this facility for their convenience.

The provisions of departmental facility, livestock production, marketing and grading of the products remained prime in any developing sector and the deferred programe will definitely have negative impacts, he added.

Similarly the project Research and Development of Cotton Programme (PC-II) revised worth Rs 9.8 million ahs also been discontinued. Adopting modern agricultural practices to improve and upgrade the cropping standards in Pakistan is the need of the hour.

He said the country is already facing a lack of expertise in fighting cotton virus and minimising crop from heavy rainfall in the interior Sindh. "The discontinuation of development projects will affect the sector and the target."

He said the crop in Digri, Naukot, Sukkur, Khairpur and Nawabshah remained prone to attack of mealy bug and reddening of leaf, where 90 percent of BT cotton crop is sown.

He said we were still lacking to fight against mealy bug and Cotton Leaf Curl Virus (CLCV) attack and reddening of leaf.

Daily Times - Leading News Resource of Pakistan