What's new

Pakistan Economy - News & Updates - Archive

Status
Not open for further replies.

Thursday, March 26, 2009

ISLAMABAD: The National Policy Platform for Competitiveness and Economic Growth (NPPCEG) formally started deliberations over the key policy issues to provide recommendations to the government for improving competitiveness of Pakistan’s economy.

The NPPCEG has been constituted to bring together research and public institutions and provide recommendations to the government for developing a competitive and sustainable economy.

The first meeting of NPPCEG was held here on Wednesday. State Minister for Finance and Economic Affairs, Hina Rabbani Khar inaugurated the meeting while Chairman of NPPCEG, Shahid Javed Burki chaired it.

In her inaugural address, Hina Rabbani Khar said that one of the key objectives of the platform would be to play the role of a learning platform to strengthen the capacity of the Pakistani research institutions and think-tanks to carry out applied research and economic and policy analysis.

“These institutions would then be in a position to analyse the government’s economic reform agenda and inform its policymaking decisions,” she remarked.

She said that the other key objective of the platform would be to launch dialogue with the policy makers in the public and private sectors.

The meeting discussed key policy issues as identified by NPPCEG Chairman and Competitiveness Support Fund (CSF) for analytical work and policy advice to the government of Pakistan for improving the competitiveness of the country’s economy and bolstering the prospects of growth.

The issues identified included demographic asymmetry and demographic window of opportunity, human resource development, the construction industry, trade facilitation, retail trade, agriculture marketing, urbanisation, urban employment and urban services.

Besides, the platform also discussed the issue of fiscal decentralisation and the use of fiscal policy for influencing inter-personal and inter-regional income distributions, whereas private health insurance and pension funds also came up for discussion.

Later, addressing a press conference, Shahid Javed Burki said that the platform would be holding meetings after every three months, adding that the next meeting of the platform would be held in early May. He underlined the need for skill development of the youth, saying that there were about 80-85 million people less than 17 years old and this young generation could be capitalised for developing a sustainable economy by providing them with proper training.

He said that the construction industry has the potential to generate jobs to help overcome unemployment problems and stressed the need for agriculture marketing for proper utilisation of agricultural produce.

Speaking on the occasion, CSF Chief Executive Officer, Arthur Bayhan said that coordinated efforts across the board would help produce better outcome. He expressed hope that recommendations provided by the platform would help develop a sustainable economy and generate employment in the country.
 

US backs stable and vibrant democracy in Pakistan, says embassy spokesman​

Thursday, March 26, 2009
By Ansar Abbasi

ISLAMABAD: Those having faith in, what they call, Obama Plan for this region foresee remarkable changes in Pakistan to bring political stability, good governance and economic development in the country.

The recent resolution of the judicial crisis was said to be part of the same Obama Plan, which now envisages the return of PML-N in the federal government, return of PPP-PML-N government in Punjab, introduction of constitutional and judicial reforms in line with the Charter of Democracy, strengthening of the Office of prime minister, empowerment of the Parliament, and the unfolding of a countrywide programme of construction and development.

US embassy spokesman Jeremiah Knight when approached though did not confirm or deny the existence of any Obama Plan for this region including Pakistan, said that Washington is happy over the peaceful resolution of the judicial crisis in Pakistan.

When asked if there exists any Obama Plan for the region and for Pakistan and that it envisages the formation of national governments at the Centre and in Punjab, the implementation of Charter of Democracy, the repeal of 17th Amendment etc, he said, “The US supports the creation of stable and vibrant democracy in Pakistan.” He said that Washington is happy over how the major political parties in Pakistan have advanced in the recent past.

An informed source while quoting an Islamabad-based diplomat, who is said to be aware of the details of what he called the Obama Plan, said that a long-term solution to the problems associated with the Gwadar Port vis-a-vis the divergent strategic interests of US and China would also be explored in regional context, and in this regard all the concerned parties will be taken into confidence for seriously considering the following options. Regarding Pak-India relations, the proxy war between the two are being checked and controlled completely.

As reported earlier by The News, the same source had indicated that the judicial crisis would be resolved by March 16. The resolution of the crisis, it is said, would pave way for the PML-N to rejoin the PPP-led federal government and to jointly pursue the constitutional/judicial reforms under the Charter of Democracy.

The source claims that after the resolution of the judicial crisis, broad-based coalition governments at the federal and provincial levels are to be established thereby involving all major political parties (who matter) so as to give an outlook of a national government. Target date for it is said to be March 31, 2009.

The Office of prime minister and Parliament in Pakistan will be strengthened through certain constitutional amendments. Target date for this is said to be April 30, 2009. The coalition government of PPP, PML-N, ANP, etc will be encouraged to ensure good governance in Pakistan and to generate employment opportunities through a country-wide programme of construction & development thereby initiating infrastructure development projects, social & economic activities, health and education projects etc.

Target date for this is said to be June 30, 2009. However, the USA and other countries in the group of “Friends of Pakistan” will only offer their respective financial and economic development assistance packages to Pakistan unless and until a stable coalition government presenting the outlook of a national government in Pakistan is ensured. Target date for such an understanding with the Friends of Pakistan is May 30, 2009.

Regarding long-term solution to the problems associated with the Gwadar Port and the divergent strategic interests of the US and China related thereto, it is said, would be explored in regional context, and in this regard all the concerned parties will be taken into confidence for seriously considering the following options: Let Pakistan declare the Gwadar Sea Port as an international open port; Let both the USA and China jointly invest into developing the Gwadar Port as a Deep Sea Port of international standards; Let the USA build a land route and oil/gas pipelines from the Gwadar Deep Sea Port to the Commonwealth of Independent States (CIS) of Central Asia through Afghanistan; Let China construct a land route and railways (if feasible) from the Gwadar Deep Sea Port to its Khunjerab Pass and onward through Balochistan, NWFP and Northern Areas; Let India construct a motorway from New Delhi to Lahore and then Pakistan constructs a motorway and railways (if feasible) from Peshawar to Jalalabad, city of Afghanistan, and at the same time, Afghanistan constructs a motorway and railways (if feasible) from Jalalabad to the American-sponsored land route extending to the CIS thereby providing India and Pakistan a joint access to Afghanistan and to the Central Asian States; Let Iran construct a motorway and railways (if feasible) to the American-sponsored land route in Afghanistan extending to the central Asian CIS member states thereby providing Iran a land access to Afghanistan and the Central Asian States, and also to China through Pakistan or through the CIS; and Let India, Pakistan and Iran jointly build a gas pipeline from Paras Gas Field of Iran to India through Pakistan for meeting the growing energy needs of both India and Pakistan.

The above solution, the source said, will provide a way forward to all the concerned countries thereby transforming into an economic inter-dependent region of peace and mutual cooperation to their respective benefits and prosperity.

Unlike his predecessor, the source said, President Barack Obama is bringing a paradigm shift in the US policy towards handling the present situation in Afghanistan and Pakistan. The source claimed that he has been duly warned by many think tanks in the USA and Europe that Washington has got only six to 12 months to save Pakistan falling into chaos of international consequences. Therefore, the US-administration under President Obama in collaboration with European Union and Pakistani authorities has to come up with a pragmatic plan for resolving the ongoing conflict and armed struggle in Afghanistan by the Afghan-Taliban (including al-Qaeda) and the insurgency in Fata and Swat by the TTP (including al-Qaeda, drug mafia and criminals), under which the following actions might take place in the very near future: To hold free & fair elections (under UN or a fair mechanism) in Afghanistan thereby openly allowing the Afghan-Taliban to participate in the upcoming elections so that Taliban (predominantly Pashtoons) should have a justification of quitting their armed struggle and joining the government in Afghanistan. Target date: September 30, 2009.

The US-led Nato forces, Afghanistan, Pakistan and India (and may be Iran too) will have jointly to stop heroin production in Afghanistan and its smuggling out of the country through Pakistan, Iran and the CIS.

The coalition forces and the Afghanistan government will not allow any poppy growing and production and processing the heroin in Afghanistan. India will stop supplying the chemicals for heroin processing into Afghanistan. The Pakistan government will stop heroin smuggling through its territory. It will result into stopping the money supply out of this drug trade to the Afghan-Taliban and the TTP as well as to criminals/insurgents on both sides of Afghanistan and Pakistan, and once this money supply is dried out they won’t be able to continue their insurgent activities with empty stomach. Target date: December 31, 2009. To stop the ongoing proxy war between Pakistan and India, as soon as possible. In this regard, the USA, China, the UK, the European Union and Saudi Arabia will play a major role in order to ensure a permanent truce between the two warring parties.
 

Thursday, March 26, 2009

LAHORE: Governor Punjab Salman Taseer presided over a high level meeting at Planning and Development Board Punjab on Wednesday which reviewed in detail the Annual Development Programme of the province.

The meeting decided to re-launch three mega projects of immense public welfare, including Lahore Rapid Mass Transit System, Lahore-Sialkot-Kharian Motorway and expressway on both flanks of Nullah Lai in Rawalpindi.

Speaking on the occasion, Governor Punjab Salman Taseer said the suspension of work by the former government on these projects, despite substantial technical progress, was unjustified. He said these public welfare projects were also important with regard to huge foreign investment on their completion.

The meeting was informed that Lahore Rapid Mass Transit System project, costing Rs. 40 billion, envisaged operating an elevated train system by magnetic energy from Shahdara to Ghazi Road through Ravi Road, Lower Mall and Ferozepur Road.

Tunnels will also be constructed at some places for this purpose. Salman Taseer also gave orders to resume the pending project of construction of motorway from Lahore to Kharian. The 157- km long project, costing Rs.51 billion, will start from Allama Iqbal Airport Terminal and terminate at Kharian via Kala Shah Kaku, Narowal, Daska, Sialkot, Sumberial and Wazirabad.

The governor also gave approval to the appointment of prominent construction engineer, Zubair Imran Khawaja, as Project Director of Lahore-Kharian Motorway project. It may be mentioned that Zubair Imran Khawaja has also served as Project Director of Lahore-Faisalabad Expressway project.

The meeting was informed that Lahore-Kharian Motorway Project would be completed in three phases during the next four years. The first package includes construction of the motorway from Kala Shah Kaku to Sumbrial, covering a distance of 88 km at a cost of Rs.32 billion. The second phase envisages construction of the motorway from Lahore Airport to Kala Shah Kaku, measuring 12 km at a cost of Rs. 5 billion.

Under the third phase of the project, 57 km long portion of the motorway from Sumbrial to Kharian will be constructed at a sum of Rs.14 billion. The governor issued instructions for sending the PC-1 of the first package of Lahore-Kharian Motorway to Provincial Development Working Party immediately for approval.

The meeting also decided to relaunch the project of construction of expressway on both flanks of Nallah Lai in Rawalpindi at a cost of Rs. 17 billion. The governor directed to link the project of remodeling of Nullah Lai and Expressway with Rawalpindi Environment Improvement Project which was being implemented with the cooperation of Asian Development Bank.

The governor was informed that the work of alignment of southern loop and northern loop of Lahore Ring Road project was being completed expeditiously. The governor directed to complete the entire process of price assessment of the land through Board of Revenue Punjab, transfer of funds to Land Acquisition Collector and Award Announcement within four months.

The meeting was informed that only 1500 development projects out of 3000 initiated by the former government under Annual Development Programme started in July 2008 would be completed by June 30, 2009 which was a clear proof of the failure of the former government.

The total volume of Annual Development Programme for Punjab is Rs.160 billion out of which only Rs.38 billions have been spent on various development projects by February 2009. The utilization rate, therefore, is only 23 per cent.

Governor Salman Taseer issued instructions for improving periodic monitoring mechanism and introducing third-party validation system for ensuring quality of construction work. The governor further directed to ensure completion of ongoing projects expeditiously so that people could avail the benefits of democracy.

He gave approval for increasing the budget for maintenance and repair of provincial highways from one billion 20 crore rupees to Rs. 3 billions. The meeting was attended by Additional Chief Secretary Taimur Azmat Osman, Chairman Planning & Development Sohail Ahmed, Members Planning & Development Board, heads of different sections of Planning & Development Department, Principal Secretary to Governor Punjab, Member Punjab Assembly

Tanveer Ashraf Kaira, Administrative Secretaries of Finance, Health, Education, Communication & Works, Public Health Engineering, Agriculture, Irrigation, Local Government departments as well as other senior officers.
 

ISLAMABAD: Both Pakistan and Kazakhstan on Wednesday agreed to develop economic and trade cooperation. They also discussed various proposals for the next Joint Ministerial Commission (JMC) meeting and the implementation status of the decisions of the previous meetings. This was agreed during a meeting between Ambassador of Kazakhstan to Pakistan Bakhytbek Shabarbayev and Federal Minister for Water and Power, Raja Pervez Ashraf. Both the leaders discussed various matters of mutual interest and enhancing bilateral trade between both the countries.
 

ISLAMABAD (March 26 2009): World Bank is likely to approve $500 million for Poverty Reduction and Strategy Credit in next two days and Asian Development Bank is also gearing to give $200 million before the of March, sources told Business Recorder here Wednesday. These two approvals would add forex reserves up to $1.54 billion as IMF is most likely to approve $840 million on March 30.

Governor State Bank and PM Advisor on Finance would be happy to announce these additions in their kitty. ADB and World Banks money would also support Finance Ministry to spend over Rs 50 billion for budgetary purposes, while IMFs money is only meant for forex reserves.

ADBs money is for project loans and WBs PRSC-II is for broader reforms, to help meet macro economic stability, reducing poverty and pushing overall growth. World Bank has prepared a plan to support poor and is also working to assist in Benazir Income Support Program. A much awaited help from WB for direct cash transfer for poor.

The addition of Rs 50billion would increase in NFA of the country a bit, and would help meet some spending from the government, which has almost stalled its development expenditure in a hope to get cash from these donors. The last quarter as usual would give more releases for such projects and quick spending, leaving some room for better utilisation of funds.

IMF Board of Directors is also meeting on March 30 to approve the release of $840 million to Pakistan after receiving first tranche of $3.1 billion in November. A 23-month $7.6 billion Stand-By Arrangement was approved in the same month. State Banks accounts would swell within two to three days after the approval is announced after the Boards meeting.
 

LAHORE (March 26 2009): Assistant Executive Director Hong Kong Trade Development Council Raymond Yip has said that Pakistani products needs to have brand names so that the Pakistani exports can compete with India and China. He expressed these views on Wednesday during his meeting with various businessmen along with Director Global Exhibitions and Marketing Asad Sajjad.

The businessmen present in the meeting were vice -chairman Pakistan Carpet Manufacturers and Exporters Association (PCMEA) Akhtar Niazi, former vice -chairman (PCMEA) Waqar Rashid, Director Skill Sports Sialkot Tariq Soni, Chairman The Surgical Instruments Manufacturers Association of Pakistan Sialkot, Chief Executive Officer Care and Cure Surgico Tariq Ashfaq and Chief Executive Combinations Rafiq Raja.

Raymond has urged the Pakistani businessmen to attain benefits from the Hong Kong business markets through exports of their items. He also appreciated the quality of Pakistani Handmade Carpets and Sports Goods adding that its time for the world to know about Pakistani capabilities.

He also said that Hong Kong is a free market and eleventh largest trading entity in the world and it is a gateway to the other markets. He further said that the purpose of his meeting was to provide them assistance regarding export opportunities in Hong Kong. The businesspersons informed Raymond about their export products, respectively and showed their interest in participating various exhibitions of different items scheduled to be held in Hong Kong in proceeding calendar year.

Director Trade Development Authority (TDAP) Lahore Yasmeen Kuraishi attended the meeting and dilated upon TDAPSS role in the boosting of countrys trade through different fairs and exhibitions abroad.
 

ABU DHABI (March 26 2009): UAE Minister for Foreign Trade Sheikha Lubna Bin Khalid Al Qasmi has suggested Pakistan to focus on the export of services and technology to United Arab Emirates (UAE) for improving balance of trade between the two countries.

She was talking to the delegation of Pak UAE Business Council of FPCCI led by FPCCI President Sultan Chawla and PMs Advisor on Textiles Dr Mirza Ikhtiar Baig at the Ministry of Foreign Trade here on Wednesday. Pakistans Ambassador in UAE Shafqat Ali Shah Jamote was also present on the occasion.

She said that Pakistan has lot expertise in services sector, which included IT, medical services and other technologies that can be exported to UAE besides exporting merchandises. There is a great opportunity for Pakistan to export services. There is still high demand for knowledge workers from Pakistan whether in technology, medical field, research and development or renewable energy.

A science graduate, Sheikha Lubna said that other areas of interests can be ceramics, pharmaceutical, cement. She said that Pakistan has an excellent rice quality but the lack of proper storage and logistics damages the quality. Pakistani businessmen should invest in the storage and improve logistics to maintain the quality of its exports of food items to UAE and other countries.

She pointed out that UAE was also facing similar problems with its dates production and exports but it has handled this problems by development storage and logistic facilities. Pakistani companies can utilise the services of UAE logistics and storage companies to improve their storage and logistic capacities.
 

WASHINGTON (March 26 2009): The top US business lobby Tuesday urged a cut in US tariffs on Pakistani textiles, saying that trade would be a valuable part of the new US strategy to bring stability to Pakistan. The US Chamber of Commerce and US-Pakistan Business Council issued a report welcoming President Barack Obamas focus on rooting out extremism in Pakistan and neighbouring Afghanistan and urging an emphasis on trade.

US Chamber of Commerce and US-Pakistan Business Council have issued a report welcoming President Obamas focus on rooting out extremism in Pakistan and Afghanistan and urging an emphasis on trade. "Stronger and more stable economic relations between the United States and Pakistan would help advance Americas overarching geopolitical goals in South Asia," the business groups said in the report.

The United States is the largest investor and market for Pakistan, which in November required a 7.6-billion-dollar emergency credit line from the International Monetary Fund as world economic crisis hit the nation. The business groups urged a review of US tariff policy on Pakistan, saying that the duties on Pakistani textiles were higher than those from other key producers.

The report also backed a proposal by two lawmakers - Senator Maria Cantwell and Congressman Chris Van Hollen - to make certain products made in the impoverished Afghan-Pakistan border regions duty-free. In the long term, the United States should consider entering negotiations on a free-trade agreement with Pakistan, the groups said.

"Although the United States stresses the importance of economic growth in Pakistan, American trade policy fails to provide increased market access for Pakistani products in the United States," the report said. The report supported early legislation on the initiative of establishing reconstruction opportunity zones in the Pakistani border regions with Afghanistan, saying the move would provide incentives for investment in the impoverished areas by allowing duty-free export to the United States.

The two organisations applauded Kerry-Lugar initiative in the Senate to triple economic assistance for Pakistan to 1.5 billion dollars annually. They also emphasised bolstering the availability of the US Export-Import Bank and other government financing and insurance to stimulate American private sector investment in Pakistans energy sector.

"In addition to its strategic elements, a broad-based relationship with Pakistan needs to include enhanced co-operation in the areas of trade and vestment and energy security," said Chambers Senior Vice-President of International Affairs and member of the board of directors of the USPBC Myron Brilliant.

"We are actively working with both governments to strengthen our economic ties." The United States is the largest trading partner of Pakistan. Pakistans port total exports in 2007-08 financial year totalled 19 billion dollars, of which 20 percent or 3.7 billion dollars went to the United States.

The US exports to Pakistan rose to nearly two billion dollars in 2008. "Our report also urges the US government officials to work with Pakistan to address bilateral trade and investment opportunities," said Chairman of the board of directors of the USPBC Jay Collins.

"Our members stand ready to contribute to efforts to expand commercial relations between the two countries." Also, the leaders of the two organisations urged the Department of Homeland Security to provide expeditious approval for non-stop flights to the United States from Pakistan as direct flights from Lahore to New York would facilitate trade and investment links. The following are the key recommendations for the Obama administration and members of Congress:

-- Obtain passage of the US foreign assistance legislation, showing that the United States is committed to ensuring Pakistans long-term prosperity.

-- Address trade and investment practices with Pakistan to ensure that American companies find a level playing field.

-- Approve legislation creating reconstruction opportunity zones (ROZs) to promote economic development in Pakistan.

-- Conclude a high-standard bilateral investment treaty with Pakistan to provide safeguards for the US investors.
 
Forex reserves at $10.257bn

KARACHI: The country’s liquid foreign exchange reserves have reached $10.257 billion on week ending at March 21, 2009 as compared to $10.161 billion last week, data released by State Bank of Pakistan, shows Thursday. The overall reserves witnessed an increase of $96 billion during the last week. The reserves held by the central bank witnessed a major increase of $101 million to reach $6.790 billion as compared to $6.689 billion during the last week. However, the reserves held by banks (other than SBP), witnessed a decline of $05 million, as it reached to $3.466 billion as compared to $3.471 billion. staff report

Daily Times - Leading News Resource of Pakistan
 
Bank Al Habib declares 12.5% dividend

KARACHI: Bank AL Habib announced 12.5 percent cash dividend (final) and the issue of 27.5 percent bonus shares at the Annual General Meeting on Thursday. According to a press release the shareholders approved the annual accounts for the year ended December 31, 2008. Deposits of the bank as on December 31, 2008 were Rs 144.4 billion and profit before tax was Rs 3.579 billion. The bank has a network of 229 branches, which include four Islamic banking branches spread across 70 cities and towns of Pakistan and a branch in the Kingdom of Bahrain. staff report

Daily Times - Leading News Resource of Pakistan
 
Italy to press EU on Pakistan trade benefits

* Italy wants GSP Plus status for Pakistan

ROME: Italy, current G8 president, will press EU states to launch free trade talks with Pakistan and to extend to Islamabad trade benefits from which it would normally be excluded, Foreign Minister Franco Frattini said on Thursday.

Frattini told Reuters in an interview that he would use a June G8 conference on stability in Afghanistan also to explore possibilities for Pakistan and that he wanted a European Union-Pakistan summit in the second half of 2009.

Sweden, which takes over the EU presidency in July, has told him of its strong interest in an EU-Pakistan meeting, said Frattini, who met his Swedish counterpart Carl Bildt on Wednesday.

“We have to seek a consensus among member states about the importance of having negotiations on a free trade agreement,” Frattini said.

“I think it’s possible (even) in the difficult moment that we are facing now to get consensus, because all the member states agree on the importance of sending positive messages —not only money — to Pakistan.”

Economic initiatives to promote stability in Afghanistan and Pakistan’s tribal areas may be more attractive options for European states than sending more troops to Afghanistan, which many NATO allies including Italy have been reluctant to do.

“We want to stabilise (that region) through the economy, through attraction of investment, through promoting trade, not first of all through sending more troops,” Frattini said.

Pakistan’s ambassador to Italy, Tasnim Aslam, said her country wanted to start free trade talks and to qualify for preferential trade benefits under an EU programme targeting less developed nations, known as “GSP Plus”.

“We don’t need assistance. We don’t need aid. We want trade. Because aid doesn’t help sustain the development process, while trade does,” Aslam told Reuters.

Pakistan had about 7.5 billion euros ($10.2 billion) worth of trade with the 27-nation EU in 2008, up more than 7 percent on 2005. Aslam said this could grow exponentially if Pakistan enjoyed GSP Plus trade privileges.

“By extending this facility to Pakistan, the European Union would be helping itself also,” said Aslam, who added that she appreciated Italy’s support on the issue.

“The European Union would like to stabilise (the region), because they have their own strategic interests, their troops are present there. By helping Pakistan, they are helping themselves.”

The European Commission has so far excluded Pakistan from GSP Plus status because its economy is too developed to qualify for a programme meant to help the least developed nations.

Islamabad has also not ratified all the necessary labour treaties, a Commission spokesman said.

Frattini said Pakistan was an exceptional case and required special treatment. Asked whether he favoured extending GSP Plus status to Pakistan, Frattini said it was important that EU nations “try to find a way” to do so.

“If we stick to the current legislation ... of course the European Commission cannot offer Pakistan (GSP Plus),” he said.

“But we should do something more. We should deal with Pakistan in a political way, not in a bureaucratic way — dealing with a free trade agreement as if Pakistan were a country like Bangladesh.”

Frattini said he would raise the idea of free trade talks with Pakistan at the conference on Afghanistan in June, which Iran has said it will attend.

When he discussed the idea with Sweden’s Bildt on Wednesday, Bildt told him a summit or other high-level meeting was “timely and important”, Frattini said.

“I’m suggesting a political summit because only through a political summit can we give the European Commission a special mandate,” Frattini said. A special mandate is needed to enable the Commission to offer Pakistan special trade benefits, he said. reuters

Daily Times - Leading News Resource of Pakistan
 

Friday, March 27, 2009

KARACHI: Pakistan International Airlines (PIA) on Thursday said it incurred a mammoth loss of Rs35.88 billion in 2008 due to a substantial increase in price of fuel and a steep fall of rupee.

This was announced through a press release after its board of directors approved the annual accounts earlier in the day. It said last year was exceptionally difficult as the airline took a severe hit from the extraordinary rise in fuel cost and a weaker rupee, which battered its financial position by increasing the cost of dollar-denominated loans.

“The rupee lost its value against the US dollar, contributing to a net exchange loss of Rs24.1 billion,” it said, adding the surge in oil prices jacked up fuel expense by Rs15.5bn over previous year. The fall in the value of pound sterling and euro against the US dollar was also a source of revenue dilution which had depressed yields, it said and mentioned high inflation as another reason behind the record loss.

Overall revenue was up 26.6 per cent to Rs89.2bn as passenger revenue increased by 28.7pc to Rs79.8bn due to higher passenger yields on scheduled services. But profit in 2009: Though the 2008 loss has pushed up accumulated losses of the national flag carrier to Rs72.4 billion, it aims to post profit this year. Encouraged by falling fuel price and a stable rupee, the PIA has set target to earn Rs598 million in 2009, airline officials told The News.
 

Friday, March 27, 2009

KARACHI: There exist a lot of opportunities to bolster trade between Pakistan and Hong Kong.

This was stated by a senior official of the Hong Kong Trade Development Council (HKTDC), Raymond Yip. Talking to reporters on Thursday, he pointed out that the HKTDC is organising six major international trade fairs in Hong Kong next month. These, Yip further pointed out, offer rewarding opportunities to the Pakistani businesses and that the businessmen from Pakistan should take advantage of these.

He said that these six trade fairs were: Electronics Fair, International ICT Expo, International Lighting Fair, Houseware Fair, Gifts and Premium Fair and International Printing and Packaging Fair. On the occasion, Yip announced a $10.3 million package for the SME sector in Pakistan.

He pointed out that focusing on emerging markets like Pakistan, this initiative offers various subsidised packages of air ticket and hotel stay for international buyers to the trade fairs in Hong Kong organised by the HKTDC throughout 2009.

Yip pointed out that as 43rd trading partner of Hong Kong, the total volume between Pakistan and Pakistan in the year 2008 stood at $613 million.

The direct investment of Hong Kong in Pakistan was $340 million in the year 2007 and that it ranked fourth after the United States, United Arab Emirates and the United Kingdom.

Yip also pointed out that Hong Kong may export a number of products from Pakistan including food items such as fruits and vegetables, rice, consumer goods, textile and garments, raw material, jewellery, precious stones.

He said that during his visit to Pakistan, which is also the first one, he has held meetings with officials and trade bodies representatives in Islamabad, Lahore and Karachi. Yip also mentioned the presence of the 16,000 strong Pakistani community in Hong Kong.
 

ISLAMABAD: Pakistan is likely to get $700 million from the World Bank (WB) and the Asian Development Bank (ADB) by the end of March, a Finance Ministry official has said. Pakistan expects $500 million from the World Bank and the rest from the ADB, the official told Dow Jones on Wednesday. The IMF board is scheduled to meet on Monday in Washington to take its final decision on releasing the second instalment – $840 million – of a $7.6 billion standby arrangement loan to Pakistan. Pakistan received the first instalment of $3.1 billion in November 2008. daily times monitor
 

QUETTA (March 27, 2009): President Asif Ali Zardari Friday announced a Rs 46.6 billion development package for Balochistan and said the people and the parliament of Pakistan will ensure that the rights of the people of the underdeveloped province are not denied.

Addressing the elders and parliamentarians of Balochistan here at the provincial capital, the president urged the people of Balochistan to strengthen democracy. Otherwise, he cautioned, that those who do not do so will be strengthening those who were trying to break Pakistan or cause subversion in the province.

The president who is on a two-day visit to the province announced four water storage reservoirs at a cost of Rs 36 billion, small delay-action dams at a cost of Rs 2.5 billion, package for Quetta city for Rs 3 billion and transmission lines for Rs 5 billion.

He said the people of Balochistan have a long history of struggle and with the democracy in place all they would be able to avail all their rights. He said he remains fully in contact with the governor and chief minister of the province to find their problems and address the issues that crop up.

The president said that political maturity was coming as he believed that the only way forward was through democracy. He said the Pakistan Peoples Party would ensure that the people of Balochistan get their rights.

President said Balochistan was an important province and the future of the country was linked to it. He said Balochistan’s soil would not be allowed to be exploited for any subversive activity. He said some people were involved in exploiting people for their own political interests.

Balochistan Governor Nawab Zulfiqar Ali Magsi, Chief Minister Nawab Muhammad Aslam Raisani, Federal Ministers Qamar Zaman Kaira, Hamayun Aziz Kurd, Hayatullah Durrani, Manzoor Ahmed Watto, Raja Pervez Ashraf, Nabil Gabol, Nazar Muhammad Gondal and PM’s Adviser on Interior Rehman Malik, MNA Umar Gorgej, provincial president PPP senator Haji Lashkari Raisani and other members of the provincial cabinet were also present on the occasion.
 
Status
Not open for further replies.
Back
Top Bottom