Pakistan Economy - News & Updates - Archive

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KARACHI: Pakistan’s current account showed a deficit of $4.76 billion in the first 11 months of the 2005-06 fiscal year (July-June), according to data released by the central bank on Friday.

The deficit was sharply higher than the $1.64 billion in the corresponding year-ago period. The 11-month deficit number is equivalent to around 3.7 per cent of the provisional estimate of $128 billion for Pakistan’s gross domestic product (GDP) for 2005-06.

In a report issued in April, State Bank of Pakistan forecast a full-year current account deficit of 4.7 per cent of GDP, compared with an earlier forecast of 2.2 per cent of GDP. Analysts said the ballooning current account deficit was a result of the sharply widening trade gap, due to rising imports and higher global oil prices, and could result in a weaker rupee going forward.

According to the central bank, the trade deficit in July-May stood at $7.401 billion, compared with $4.168 billion in the year-ago period. “In my opinion, the overall funding position is secure in the near future, but the rising deficit levels are a matter of increasing concern,” said Asif Qureshi, head of research at brokers Invisor Securities.

“I certainly feel that some policy measures are now needed, such as exchange rate or interest rate adjustments, to counter the problem,” he said. The central bank has itself said that while the current account deficit was sustainable in the short-run, it posed serious threats to the economy if the trend continues.

The central bank is scheduled to release its monetary policy statement for the July-December period later this month.

According to central bank data, exports during July-May amounted to $14.898 billion, while imports stood at $22.299 billion. In the corresponding year-ago period, Pakistan’s exports and imports stood at $13.104 billon and $17.272 billion respectively, it said.

 

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Saturday, July 08, 2006

ISLAMABAD: A World Bank assessment report envisages a three-fold increase in university enrolment by 2016 and allocation of four percent of GDP to education.

A four-member World Bank educationists’ team, led by Benoit Millot, called on Dr Salman Shah, Adviser to the Prime Minister on Finance, here on Friday. Omar Ayub Khan, Minister of State for Finance, was also present at the meeting.

The World Bank team presented to the adviser a copy of the report of “Pakistan Higher Education Policy Note – An Assessment of the Medium-Term Development Framework.”

The report has been prepared by World Bank education specialists after thorough consultations with the Higher Education Commission and the federal and provincial ministries concerned. The team also conducted extensive study of the prevailing educational system being pursued by the public and private sector universities and the Higher Education Commission for meeting future needs of the country for highly qualified professionals and educationists in the technical and engineering fields and social sciences.

The report envisages the measures to be taken by the government and the private sector to improve the standard of education being imparted to students by the public and private sector universities. The report also visualizes the scope of future expansion of the universities as well as the enrolment of students in the coming future. The report also addresses the financial resources required for imparting quality education to the students in the universities.

The adviser appreciated efforts of the World Bank team and asked them to give final shape to the report encompassing financial aspects and high standard of education and the methodology to be adopted by the Higher Education Commission for the implementation of the findings.

 

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Saturday, July 08, 2006

* Improved IPR enforcement in Pakistan clears the way

By Sajid Chaudhry

ISLAMABAD: Due to the improved intellectual property rights (IPR) enforcement in Pakistan, the United States has announced that Pakistan will continue to enjoy the benefits of duty- free exports to US markets under the Generalized System of Preferences Program.

The Bush Administration had announced on June 30, 2006 the outcome of the 2005 Annual Review of the Generalized System of Preferences (GSP), a program created in 1974 under which 136 beneficiary developing countries currently export certain products duty-free to the United States. In the annual review, as required by regulations, the US administration evaluates the list of articles and countries eligible for duty-free treatment under the GSP using statutory criteria. The United States Trade Representative (USTR) office on July 7, 2006 has released further details on the results of the annual review in the US federal register.

The United States had closed in January 2006 an ongoing review of an industry-initiated petition seeking termination of Pakistan’s eligibility for the Generalized System of Preferences (GSP) program based on concerns over intellectual property rights. However, the United States had also announced that it would continue to monitor Pakistan’s efforts to achieve continued IPR protection and enforcement through the section 301 process and ongoing bilateral consultations.

The 2006 “Special 301” annual review initiated by US authorities in April 2006 reviewed in detail the adequacy and effectiveness of intellectual property rights in some 87 countries, including Pakistan. Before this review Pakistan was included in the Priority Watch list of US such countries as were not protecting properly the intellectual property rights. Under the 2006 Special 301 review, Pakistan’s ranking was improved and its name was removed from Priority Watch List and was placed on the Simple Watch List of US authorities. This was due to better enforcement of intellectual property rights in Pakistan.

During the 2005 review, the US administration had determined that certain imports from selected developing countries can compete effectively with imports that are subject to duties and, thus, should no longer be eligible for duty-free treatment under the GSP program. As a result, importers of those goods from affected countries would now pay duties at the normal tariff rates on those items.

The US administration also extended or preserved benefits by continuing GSP benefits that would otherwise expire and restored benefits on some goods. In 2005, $26.7 billion in products were imported duty-free from eligible beneficiary countries under the GSP program, an 18 percent increase over 2004. The majority of products imported from beneficiary countries are eligible for GSP benefits, with a significant exception being textile and apparel products.

As part of the annual review, the administration found that imports of certain products from specific developing countries now account for major shares of US imports of those products and are effectively competitive with imports from other countries, making them no longer eligible for duty-free status. Accordingly, the administration has acted to put those imports on a level playing field with other producers. This action also advances the US goal to administer the GSP program in the way Congress intended, by increasing the share of benefits for those countries that need it the most.

Earlier this year, the Bush Administration restored GSP eligibility to Liberia as a least- developed GSP beneficiary developing country and closed reviews of certain country practice petitions without removing GSP eligibility. These cases examined worker rights in Swaziland and intellectual property rights enforcement in Pakistan, Kazakhstan, and Brazil. Because of the steps taken by each country to address the pertinent concerns, the US administration determined to continue each country’s GSP eligibility.

The GSP program was created by the Trade Act of 1974. Under the program, 136 beneficiary developing countries currently export approximately 5,000 different products duty-free to the United States.

 

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BEIJING (updated on: July 09, 2006, 00:31 PST): The China Road and Bridge Corp (CRBC) has singed a memo with the Pakistani highway administration to initiate the renovation project of the Karakoram highway.

The official Chinese media quoting sources with the state-owned Assets Supervision and Administration Commission said on Saturday that the memo, signed on June 30, paves the way for practical operation of the project.

According to the memo, the CRBC will be in charge of the design and reconstruction of the highway as the general contractor. At first stage, the 335-kilometer road between the Raikot bridge to the Khunjerab mountain pass will be rebuilt and upgraded.

The two sides agreed to complete the drawing of the blue print, listing the work items and signing commercial contracts by the end of October, and try to start working by the end of the year.

During President Musharraf's visit to China in February, the two sides reached an agreement in principle to upgrade the Karakoram highway.

According to the sources, width of the highway will be expanded from 10 meters to 30 meters, and its transport capacity will be enhanced three times. Heavy-laden vehicles will be able to run on the road after the upgradation.

 

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ISLAMABAD (July 08 2006): According to a State Bank study, there is large scope for trade and investment between Pakistan and India. This is the gist of a 76-page SBP report titled 'Implications of Liberalising Trade and Investment with India'.

The potential sectors for mutual co-operation identified by SBP include agricultural products, tires, auto spare parts, minerals, chemicals, pharmaceuticals, leather, textiles, telecommunications, gas pipeline and electricity generation using coal and wind energy in Sindh.

With regard to trade potential, the report says, "compared to the actual trade worth $476 million in FY04, the potential of trade (exports plus imports) between the two countries as estimated by the SBP amounts to $5.2 billion".

The report notes that informal trade between Pakistan and India is estimated at $1.5 to $2 billion, which is being carried out through exchange of goods at the Indo-Pakistan border, the misuse of personal baggage scheme through 'green channel' facilities and Afghanistan. Trade through third countries or 'circular trade' is mainly conducted through agents operating in free ports like Dubai or Singapore and the Central Asian Republics (CAR).

It further says that of the total value of Pakistan's exports in FY04, 32 percent represented items that are also imported by India from the rest of the world, constituting one-third of total Indian imports. About 1,181 items, worth $3.9 billion, were common between Pakistan's exports and India's imports during FY04, covering 45 percent of the total items exported by Pakistan.

About 70.3 percent of the common items exported from Pakistan have unit values less or equal to the Indian import unit values. There is a large scope for export of these items simply by producing the quality required in India.

However, the bank expressed concern over liberalisation of trade of investment between the two countries, as it says that some studies conducted so far have identified three potential areas of Pakistan's economy, ie agriculture, textiles and engineering sector that would be affected following its trade liberalisation with India.

The benefits of trade with India must be weighed against the costs inherent in certain apprehensions about competition from India, which has been feared in the past for a number of reasons, the report adds.

It says that despite liberalisation, India's trade regime still remains more restricted than Pakistan in terms of both tariff and non-tariff barriers. Prohibitive non-tariff barriers in India have made Pakistan's exports to India unattractive.

The report notes that a large part of the resistance in Pakistan comes from the country's business community who feel that the higher cost of production in a relatively smaller economy in comparison with India would make them vulnerable to tough competition. Though low transport cost from India would provide the Pakistani consumers cheaper products, it is also likely to reduce the natural protection of Pakistan's domestic producers.

Relaxing trade links with India should have to be in stages, only opening up sectors first where Pakistani businesses and industries do not feel threatened on a large scale. There is a general apprehension in the business community in Pakistan that the opening up of trade with India would adversely affect the industries, particularly the textiles, automobile and some other industries, in which Pakistan is not so competitive in terms of prices.

It further says though Islamabad is interested to boost bilateral trade with New Delhi, a huge tariff and non-tariff barrier from Indian side not only would squeeze volumes of bilateral trade but would also hinder Pakistan's granting 'Most Favoured Nation' (MFN) status to India.

The relatively restrictive trade regulations of both countries have squeezed the volume of trade between India and Pakistan. India's trade restrictiveness measures 8 (on a scale from 1 to 10), while Pakistan's index stands at 6. Comparatively high trade restrictiveness is partly a regional feature, with the average of South Asian countries at 5.9, compared to an average of all Asian countries of 4.4.

India's tariff peaks are concentrated in the agricultural, automobile, textiles and garments sectors. Its average tariff stands higher at 22.2 percent against 14.9 percent for Pakistan and a developing country median of 11.2 percent.

Pointing out the non-tariff barriers, the Bank says that in India, significant non-tariff barriers include requirement of political or security clearance, sampling or customs inspection, requirement of technical or standard certification, labelling and marking rules, packaging rules specification, etc.

Government-mandated import monopolies in the areas of agricultural and petroleum products are also in place. In addition, India maintains tariff rate quotas in the agricultural sector, and uses technical barriers to trade in the form of technical standards and regulations, administered by the Bureau of Indian Standards.

India's share in Pakistan's total exports remained less than one percent, whereas in total imports, it fluctuated within a narrow range of 1.36 to 2.66 percent during the last five years (FY01-05). Pakistan's share in India's total exports averaged 0.45 percent whereas in imports it constituted only 0.11 percent during FY 1999-00 to FY04.

 

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Islamabad, July 9: Japan has said Pakistan was not entitled to get international companies to build civilian nuclear power plants, rebuffing Islamabad's stance that it was ready to permit such investments in the country and allow the firms to take back unspent fuel.

"Given the current situation, Pakistan is not entitled to major investments in the power sector, especially for the setting up of nuclear reactors," Naoi Yosuke, director for Nuclear Non-Proliferation Affairs at the Japan Atomic Energy Agency (JAEA) said.

Yosuke said Japan understands that Pakistan was confronted with a serious energy crisis and, with the expansion in growth, might face a run-down situation.

But the present environment had serious implications for the world at large due to clandestine nuclear activities by Iran and North Korea as well as possible slipping away of nuclear know-how in the black market, he was quoted as saying by The Post daily today.

Yosuke's comments came days after Foreign Minister Khurshid M Kasuri said Pakistan was ready to permit foreign companies to invest in atomic power plants and that they can take back the unspent fuel to allay fears over proliferation.

"We are even prepared that they come and invest and take their unspent fuel back. Just give us the energy," Kasuri had said on Tuesday.

Yosuka said the Japanese model is the best when it comes to the peaceful use of nuclear energy.

"Japan has 55 light-water nuclear reactors and it produces 15 per cent of its total energy using nuclear capability," he said.

Pakistan had on Thursday agreed to work with Japan to step up campaign against nuclear proliferation.

 

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Friday July 7

Honda Motor Opens $39.13 Million Motorcycle Production Plant in Pakistan

TOKYO (AP) -- Honda Motor Co. said Friday that its joint venture in Pakistan opened a new motorcycle assembly plant to meet growing demand.
The new 4.5 billion yen ($39.13 million) plant in Lahore is the second motorcycle production plant for the joint venture by Honda in Pakistan, the Tokyo-based manufacturer said in a release.

Honda Motor President Takeo Fukui and Yusuf H. Shirazi, chairman of Atlas Honda Ltd., Honda's joint venture partner in Pakistan, were among people who attended Friday's opening ceremony in Lahore, the release said.

The new plant was constructed in the same compound where Atlas Honda's first plant is located, it said. Combined annual production will increase to 500,000 motorcycles from the current 400,000 motorcycles, the release said.

The new plant, which started operations Friday, is to meet with an increasing demand for motorcycles in Pakistan, Honda said.

Atlas Honda, set up in Karachi in 1962, is owned 35 percent by Honda, 51 percent by Pakistan's Shirazi Family and the remaining 14 percent by other interests, it said.

The motorcycle market in Pakistan is expected to grow to above 800,000 motorcycles in 2006 from around 500,000 in 2005, Honda said. In 2005, Honda sold 328,000 motorcycles, up 40 percent from the previous year, it said.

 

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ISLAMABAD: The government on Thursday claimed that the country is poised to attract the highest ever 36 billion dollars investment in diverse fields during next five years.

Minister of State for Privatisation and Investment Umar Ahmad Ghumman said the planned investment includes the London Taxi (black cabs), equipped with modern gadgets like satellite tracking, which will be plying on roads of Karachi, Lahore and Islamabad by next month.

The minister when told admitted that the London Taxi International (LTI) was shrinking its business in the UK due to heavy costs. The government has allowed duty-free import of 300 taxis (CBUs), while the Prime Transport Limited, a company owned by a US-based Pakistani, will invest one billion dollars for setting up an assembly plant of LTI at Gharo, Sindh, he told a press conference.

Minister of State for Foreign Affairs Khusro Bakhtiar, State Minister for Finance Omar Ayub Khan, State Minister for Environment Malik Amin Aslam, MNAs Donia Aziz and Waqas Akram were also present on the occasion.

Ghumman said that President General Pervez Musharraf will inaugurate the London Taxi terminal at Karachi Airport by the end of next month, while Prime Minister Shaukat Aziz will perform the ground-breaking of LTI assembly plant, for which 300 acres of land has already been allocated.

He said the company would offer affordable fare package (Rs 11.20 per kilometre), adding that LTI plant would assemble 18,000 taxicabs annually out of which 9000 would be exported.

The export of 9000 taxis will fetch around $2.8 billion every year, Ghumman said and added that 2400cc (2.4 litres diesel engine) London Taxi which is priced at 42,000 pounds in UK will be available at around 20,000 pounds in Pakistan.

The minister said that Dubai World (DW) of the UAE, Daimler Chrysler, Dubai Islamic Bank, and certain other organisations of international repute would also invest in Pakistan.

DW will construct new modern cities at Clifton, Sandspit, Manora, Hawks Bay and Cape Monte in Karachi with the investment of $15 billion, he said.

It will also build housing units in Lahore and Islamabad which will not only help overcome the six million shortfall in the country but will also put a check on the property prices, Ghumman added.

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

 

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ISLAMABAD (July 09 2006): In a survey on Pakistan's economy, weekly international news and business publication, "The Economist," has praised President Pervez Musharraf for seven percent growth rate.

The paper reported that under the command of President Pervez Musharraf, the country had experienced seven percent average growth over the last three years, the stock exchange had also risen by 1,000 percent in seven years and the foreign reserves were up with public debt down.

"General Musharraf has generally proved much better at running the country - and more popular - than either of his elected predecessors," says James Astill, the survey's author. The paper also applauded Musharraf for the pledges that he had made to crack down on extremism and to promote "enlightened moderation."

James Astill stated that some liberal progress might emerge from President Musharraf's rule, as he had liberated the media, meaning that Pakistanis now had more access to information about the world outside Pakistan. He said television viewers could increasingly watch foreign channels.

Astill said that General Musharraf had done more for peace on the subcontinent than any of his predecessors. "Peace with India is now more likely than ever before - and would be a lasting legacy for the General." The Economist emphasised that what would be the best for Pakistan would be for outsiders to encourage Musharraf's flagging reforms with aid money and praise.

 

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PESHAWAR (July 09 2006): Sindh CM's Adviser on Environment, Alternative Energy and Information Technology Mohammad Noman Saigal has said the Sindh government had required 3,500 acres land to install windmills for generating electricity through alternative sources and overcome the shortage of electricity in Karachi.

Addressing a press conference here on Saturday, he said that each windmill would generate 50 mw electricity, saying that 30 investors have already approached the provincial government and 22 of them have already given land.

He said that investors in contact with the provincial government are including both domestic and foreign investors from Europe, United States and Fareast.

Furthermore, Noman Saigal said the Sindh government is also bringing investors in the biogas sector to produce electricity and resolve the problem of power shortage looming large in Karachi.

He said that electricity generated through alternative sources would also be provided to NWFP and other parts of the country. The adviser said that Sindh is also facing the shortage of water and the provincial government has planned the replacement of old and leaking water pipes to overcome the problem. The completion of the scheme would overcome the water shortage problem into some extent.

Similarly, he said the Sindh government has included a number of new localities in the master plan of Karachi to provide them the basic facilities of water and electricity. "We are initiating development work after realising ground realities as all problems would not be resolved in a single day", Saigal added.

In response to a question, regarding electricity loadshedding in Karachi, he said due the efforts of MQM members of the parliament and provincial assembly the prime minister has taken initiatives for the resolution of the problems and was hopeful about early solution to the matter.

Saigal, who was in the city in connection with the organising of the party in NWFP, announced that very soon Peshawar would have office of the Muthahida Qaumi Movement (MQM), saying that a number of sincere and devoted political workers had joined the party. He said that after establishment of the party office in Peshawar, the activities would also be extended to other districts of the province.

Replying to a question, he said that the party would likely to field its candidates on both national and provincial assembly constituencies in next general elections. He said the MQM has recently completed organisational work in 30 districts of Punjab and would also extend it to NWFP.

About the mood of people towards the MQM, Saigal said the party programme was to serve the people of the whole country and the devastating earthquake of October 8, 2005 provided this opportunity.

He said although the local bodies' elections were in progress in the country, but MQM chief Altaf Hussain directed the party leaders to move to the affected areas and carry out relief work. The adviser said the MQM had distributed relief goods worth more than Rs 3 billion in the quake-hit areas of NWFP and Azad Kashmir.

 

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ISLAMABAD, July 8: Prime Minister Shaukat Aziz on Saturday directed the Planning Commission to come up with a plan to increase country's exports from the current 13 per cent of the GDP to 15 per cent.

Chairing a meeting of the newly-constituted Export Promotion Board (EPB), the premier reiterated government's resolve to facilitate the private sector to enhance and diversify the export base.

Mr Aziz emphasised the need to take further steps to increase the volume of exports and said the Planning Commission should interact with all the relevant government ministries, departments and the private sector. “It needs to study the best international practices and do benchmarking with other countries to achieve best results.”

Commerce Minister Humayun Akhtar Khan gave a detail presentation on the salient features of the board functioning and its objectives to the premier. The board includes representatives both from public as well as private sectors. Commerce Secretary Syed Asif Shah made a presentation on export performance during the outgoing fiscal year.

The prime minister said the government was also in the process of finalising reconstruction opportunity zones (ROZs) to provide access for the goods produced in the commercially depressed areas to the United States on preferential basis.

Mr Aziz said exports were a major mechanism to drive the economy, earn foreign exchange and generate employment and the government wanted serious input from the private sector with a view to enhancing country's exports.

He said it was gratifying to note that the export of both rice and leather and leather goods had crossed the $1 billion mark. He congratulated the exporters of rice and leather and engineering goods.

The premier emphasised the need to tap the vast potential for export available in agri-business, leather goods, rice and engineering goods.

He said the government was making all-out efforts to arrange maximum market access for exporters to enable them to enhance and diversify their exports all over the world. "The government's job is to open access as exports are done by the private sector," he added.

“The government has signed preferential trade agreements (PTAs) and free trade agreements (FTAs) with several countries and many more are in the pipeline to provide new markets for exports.”

The premier said the finalisation of FTA was a time-consuming process and the government had therefore signed early harvest agreements with several countries, covering a limited number of items on which the agreement existed. This, he said, had been done to provide exporters immediate access to foreign markets.

Mr Aziz informed the meeting about the efforts being made by the government at the Doha round and the WTO to obtain better market access for exporters.

He called upon the private sector to increase its competitiveness and productivity and ensure quality and standardisation of products without which a quantum jump in exports was not possible.Similarly, the private sector needed to improve foreign market research and analysis capability to increase exports. "We believe in public-private partnership to establish Pakistan Inc," he added.

The government would be guided by the feedback from the private sector, which would enable it to devise a long-term policy to increase exports, he said and added: "We have totally revamped our visa policy by allowing issuance of visas to businessperson at airports."

Pakistan, he said, had the potential to become a regional hub for the export of agri-business, especially livestock, dairy products and horticulture.

 

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Sunday July 09, 2006

ISLAMABAD: Reiterating the governments resolve to facilitate the private sector enhance and diversify exports, prime minister Shaukat Aziz has directed the Planning Commission to come up with a plan to increase country’s exports from the present 13 % of the GDP to 15% of the GDP.
The Prime Minister said this while chairing the newly constituted Export Promotion Board Saturday, which is the highest policy formulation forum that considers matters pertaining to Pakistan’s exports. It includes representatives both from the public as well as the private sector.

The Prime Minister said exports are a major mechanism to drive the economy, earn foreign exchange and generate employment and the government wants serious input from the private sector with a view to enhancing country’s exports.

He emphasized the need to take further steps to increase the volume of exports and said the Planning Commission should interact with all the relevant government ministries/departments and the private sector. It will study the best international practices and do benchmarking with other countries to achieve best results.

The Prime Minister said it is gratifying to not that the export of both rice and leather and leather goods has crossed the $1 billion mark. He congratulated the exporters of rice and leather goods for doing us proud.

Shaukat Aziz emphasized the need to tap the vast potential for export available in the agri-business leather goods, rice and engineering goods.

The Prime Minister said that the government is making all-out efforts to arrange maximum market access for exporters to enable them to enhance and diversify their exports all over the world.

He said: "the government’s job is to open market access as exports are done by the private sector."

The government has signed Preferential Trade Agreements (PTAs) and Free Trade Agreements (FTAs) with several countries and many more are in the pipeline to provide new markets for exports, the Prime Minister said.

The Prime Minister said that finalization of FTA is a time consuming process and the government has therefore signed early harvest agreements with several countries covering a limited number of items on, which the agreement exists. This, he said, has been done to provide exporters immediate access to foreign markets.

The Prime Minister said that the government is also in the process of finalizing Reconstruction Opportunity Zones (ROZs) to provide access to the goods produced in the commercially depressed areas to the United States on preferential basis.

The Prime Minister informed the meeting about the efforts being made by the government at the Doha Round and the WTO to obtain better market access for our exporters.

He called upon the private sector to increase its competitiveness and productivity and ensure quality and standardization of products without, which a quantum jump in exports is not possible.

The Prime Minister said that there is a need to tap the huge market available in China and Japan, which is mainly looked at as sources of importing machinery.

Similarly the private sector needs to improve foreign market research and analysis capability to increase exports, the Prime Minister said. "We believe in public-private partnership to establish Pakistan Inc," he said.

The government will be guided by the feedback from the private sector which will enable it to devise a long-term policy to increase exports, the Prime Minister said.

The Prime Minister said we have totally revamped our visa policy by allowing issuance of visas to businesspersons at the airport.

Pakistan, he said has potential to become a regional hub for the export of agri-business especially livestock dairy products and horticulture.

Secretary Commerce made a presentation about Pakistan’s export performance and informed the meeting that total exports of the country July to May 2005-06 stood at $14.9 billion during the previous fiscal year which is 16.35% increase over the previous year. Mentioning major export achievements of last year he said that during July-May 2005-06 exports increased by $2.1 billion and the momentum of export diversification strategy was successfully sustained. He said the growth in exports was driven mainly by substantial rise in volume during this period. The increase in quantity indicates greater market access in the international market.

He said that during July-May 2005-06 increase in non-textile sector was mainly in rice, fish & fish preparations, petroleum products and leather. He said six product categories joined the US $1.0 billion club. These include Bed wear ($1.8 billion), Knitwear ($1.56 billion), Readymade Garments ($1.2 billion), Cotton Yarn ($1.2 billion), Cotton cloth ($1.94 billion) and Rice ($1.03 billion).

Giving an overview of the import profile of the country Secretary Commerce said that during the last financial year imports were projected at $21.8 billion as against actual imports of $20.6 billion registered during 2004-05 envisaging a growth rate of 5.8%. The imports during July 2005 and May 2006 were recorded at $25.6 billion as against imports of $18.4 billion during the corresponding period last year showing an increase of 39.4%, he said.

The representatives of the private sector made several suggestions and proposals to remove hurdles in enhancing exports. The Prime Minister said the government will give their suggestions a serious consideration.

 

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Sunday, July 09, 2006

KARACHI: Pakistan has become the fifth largest textile exporter to the US as its share in the textile import of US went up to 3.5 percent in Jan-April period of 2006 compared with three percent in the corresponding period of previous year.

US is the largest market for Pakistani exports, accounting for approx 27 percent of the country’s total export of US$16.3bn, expected for whole fiscal year 2005-06. Textile, which contributes about 60% of total export is gaining popularity in the US market.

According to trade data, textile export from Pakistan to US has grown by 16 percent in Jan-Apr 2006 and reached $ 1,020 million as compared to $ 877 million in Jan-Apr 2005.

According to Muzzamil Mussani, analyst at Jahangir Siddiqui Capital Market, although in the period Jan-Apr 2006, Pakistan’s textile export to US surged by 16 percent over the corresponding period last year, its overall textile export grew by only 7 percent.

“This represents the higher growth momentum for Pakistani textile products to US especially in the post WTO regime”, he believed. Pakistan’s total textile export has increased by 18 percent in the first 11 months of financial year 2005-06.

Whereas, China even after witnessing a decline of 2 percent in its textile exports to US, it still tops, being the largest textile exporter to US. The restriction imposed on import of China-made textile by US could be the reason for declining exports. Following the end of global quota regime US put a 7.5 percent cap on annual rise of China-made textile import

Whereas, neighboring India has also gained its market share significantly from 5.9 percent to 7.0 percent in Jan-Apr 2006. Textile export by India to US surged by 18 percent in this period, leading India to become the 3rd largest textile exporter for US.

 

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Sunday, July 09, 2006

ISLAMABAD: The Asian Development Bank (ADB) would provide $600 million for preparation and implementation of the Public-Private Partnership (PPP) Programme.

A three-member ADB mission, comprising Rainer Hartel, Senior Financial Sector Specialist, Klaus Felsinger, economist, and Jurgen F. Conard, economist, called on Dr Salman Shah, Adviser to the Prime Minister on Finance, here on Saturday.

The ADB team briefed the adviser on the progress being made in its assistance to Pakistan in developing a robust Public-Private Partnership (PPP) Programme.

The ADB’s overall PPP programme includes a Policy Reform Programme component of $300 million and a PPP Investment Programme Multitranche Financing Facility of another $300 million.

The Policy Reform Programme will help establish a PPP policy framework and institutional capacity, whereas the Multitranche Financing Facility will provide long-term infrastructure financing.

The government’s focal point for policy framework and institutional capacity will be the newly established Infrastructure Project Development Facility, whereas the long-term financing will be channelled through a proposed Infrastructure Project Financing Facility of which a business plan is being finalized with the ADB assistance.

 

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Sunday, July 09, 2006


Pia's first Atr-42-500 in new livery.

KARACHI: After breaking all records for last 26 years of PIA history, national flag carrier achieved an enviable regularity of 99 percent and punctuality of 89 percent for entire network- on domestic and international flights during January to June 2006.

The airline improved its punctuality due to on time departures and arrivals in domestic and international operations. PIC Chairman & CEO Tariq Kirmani stressed on further improvement in regularity and punctuality.