Pakistan Economy - News & Updates - Archive

[Neo]

Plan to develop 'National Energy Efficiency Programme' ​

FAISALABAD (January 29 2008): The government is planning to acquire and implement a phased strategy for undertaking a systematic, broad-based 'National Energy Efficiency Programme' with the financial assistance of Asian Development Bank.

In a project report, Dr Akhtar A Awan, Member Energy, Planning Commission said that the ADB financial assistance of $600,000 would enable the government to develop and implement a comprehensive energy efficiency development and investment programme.

He said that the TA will design a suitable programme proposal that supports the government efforts to (i) establish an enabling policy and business environment for energy efficiency; and (ii) provide immediate financing of priority projects.

Key activities will include (i) in-depth energy efficiency market and economic assessment; (ii) awareness building for energy efficiency through short-term policy and regulatory recommendations as well as developing targeted public relations programmes; (iii) strategy and action guidelines for initiating a sustainable long-term national energy efficiency programme; (iv) a roadmap for implementing the national energy efficiency programme with corresponding investment plans; and (v) design of bankable investment projects.

The TA will also require the services of an international consultant (firm) with practical knowledge and expertise in energy efficiency and demand-side issues, energy efficiency project management, project and energy economics, financial analysis and financial management, and energy system planning. A consulting firm or consortium of firms will be engaged by ADB in accordance with its guidelines on the use of consultants. Recruitment of consultants will be under the quality and cost-based selection procedures, and simplified technical proposals will be requested.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Telenor launches environment friendly initiative ​

ISLAMABAD (January 29 2008): Telenor Pakistan has launched another environment-friendly initiative by using solar energy to power one of its repeater sites in the NWFP. Telenor Pakistan is the country's first mobile communications services provider to have started using solar energy to power a commercial site.

The pilot site, which is in Buner, is a solar-electricity hybrid system that runs entirely on solar energy during the day and switches to electricity or battery power at night. Such Telenor Pakistan's use of alternate energy sources in its operations is of particular significance considering that the company has the fastest growing network in the country.

"Telenor Pakistan continues its efforts to roll out modern networks in a socially responsible manner, delivering on environmental and health and safety standards," says Chief Technical Officer Telenor Pakistan Peter Anthony Dindial. "We are first in the industry to have started using solar energy to power a commercial site. We aim to help reduce the load on the national power grid through innovative solutions and in longer term we mean to upscale this pilot project to other parts of the country after assessing its success.

He said, such solutions are more eco-friendly and less of a burden logistically in difficult terrains, where mobile coverage might be needed the most, and constant generator refuelling might be an issue.

The industry must boldly experiment with alternate energy solutions to connect the remote, unconnected populations of Pakistan in a sustainable manner," he added.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Construction of Kalabagh dam: government to develop national consensus ​

ISLAMABAD (January 29 2008): The government will take fresh initiatives to develop national consensus on Kalabagh dam as big water reservoirs are badly needed to overcome the worsening energy crisis country is facing.

"We have decided to make efforts afresh for consensus on Kalabagh," said the Caretaker Minister for Inter-Provincial Co-ordination (IPC) Dr Muhammad Amjad on Monday. "More water reservoirs including Kalabagh Dam will be built, but this will be done with consensus," said the minister in a news briefing after the meeting of provincial secretaries of the IPC division.

He said that the cabinet had already approved the reconstitution of Council of Common Interest (CCI). He added that the IPC division was in favour of regular meetings of the CCI.

The provincial secretaries meeting was part of preparations being made in connection with holding of a conference in Lahore in the second week of February on confidence building measures to strengthen inter-provincial harmony.

The Lahore conference will also be attended by Caretaker Federal Ministers for Water and Power, Commerce, Interior, provincial ministers for IPC, provincial secretaries and representatives of chambers of commerce of the four provinces. The conference would discuss issues including distribution of revenue among the provinces.

The minister said a multi-facet formula on revenue distribution is under consideration. The proposed formula is more stressful on some other factors instead of the current revenue distribution system that is based on the principle of strength of population of the province.

He said that Kalabagh Dam was a purely technical issue and this project should not be used for political purposes. Dr Amjad said that no major water reservoir was built after Tarbela and Mangla Dams thus the country was facing acute energy crisis. Amjad said the government would try to remove apprehensions of the stakeholders, as opponents to the construction of Kalabagh dam would also be invited to the conference.

The minister said the meeting would formulate ways and means to promote inter-provincial harmony among the federating units and to resolve their issues and concerns from the platform of the ministry.

He said that the conference would formulate recommendations and suggest measures for strengthening integration and harmony among the provinces form the viewpoint of business community.

The conference will make business specific recommendations to National Disaster Management Authority to protect valuable private national business assets. It will also propose specific preventive law and order steps to the law enforcement agencies for protection of industrial sites and factories, he added.

The Minister said that the conference would also recommend appointment of liaison officers of each chamber of commerce and industry to interact with provincial secretaries IPC for action and feedback. The conference will provide business-oriented inputs into provincial commerce trade development plans for consideration by appropriate government forums.

About the draft provincial autonomy bill, he said the Sindh and NWFP have sought a number of amendments in the draft bill. About the agenda of the one-day conference, he said the first session would be on energy crisis in which construction of new water reservoirs in the country would be discussed. In the second session, law and order situation would be discussed while in the third and final session, the corporate business-related issues would come under discussion.

Business Recorder [Pakistan's First Financial Daily]

 

[Nafees]

Pakistan Economy - News and Updates​

Continued from : http://www.defence.pk/forums/economy-development/1049-pakistan-economy-daily-update.html

ISLAMABAD, Jan 29 (APP): Excise and Taxation Department has recovered a tax amounting to Rs 340,861,796 during the five months starting from July 1 to November 30 in the financial year 2007-08.

These recoveries included monthly vehicle registration fee, motor token tax, excise duty, professional tax, M.V.D and real estate agents, tobacco vend fee, bed tax, and education cess, an official in E&T told APP here Tuesday.

Giving breakups of this recovery he said monthly vehicle registration fee stood at Rs230,128,140, motor vehicle token tax Rs.7,56,37,769, excise duty Rs3,23,95,216, professional tax 16,24,190, M.V.D and real estate agents Rs4,38,850, tobacco vend fee Rs12,200, bed tax Rs.1,95,496 and education cess Rs4,29,908 respectively.

 

[Neo]

Index closes above 14,000 points level after two weeks ​

Wednesday, January 30, 2008

KARACHI: Karachi stock market on Tuesday managed to go higher consecutively on the third trading session with benchmark KSE 100-Index restored above 14,000 points psychological barrier after two weeks.

KSE 100-share Index registered another smart increase of 129 points (i.e. 0.93 per cent) and concluded at 14,009 points. The 30-Index surged by 179 points (i.e.1.09 per cent) and finished up at 16,657 points.

The cumulative gain of three successive bull-runs was 290 points or 2.11 per cent from 13,719 points pre-opening level of 100-Index on Friday.

Ahsan Mehanti CEO of Shahzad Chamdia Securities observed heavy institutional buying in fundamentally strong stocks in the market in the backdrop of financial results announcement season, which had formally kicked-off in the middle of previous week.

Moreover, the rise in international oil prices, which is reportedly being traded near and around $90 per barrel in the world markets, also helped the relevant stocks to surge in accordance with, he added.

Live Securities reported that 100-Index surpassed 14,000 points barrier despite of the news by S&P that the ratings are at risk to downward revisions for Asia-Pacific countries. The index remained in the positive domain from the beginning as the global stocks recover on speculations that the US will cut interest rates to encourage economic growth.

Investment banking led the 100-index as it stood on top among all the sectors contributing 15.6 per cent of the entire turnover supported by AHSL that scored the highest volume of 25.16 million shares.

Banking sector witnessed a minor slump after accumulating 13.9 per cent of the total volume. Fertilizer sector performed identical to the banking sector gathering 14 per cent of the total volume receiving strong support from FFBL that gained 85 paisa.

Hasnain Asghar Ali of Aziz Fidahussain observed that main board stocks witnessed surge in the early hours, although the activity by the local players offered trading opportunities the accumulators of previous sessions opted for profit taking.

S. Kashif Mustafa of ECL Research said that the banking sector was the main driver of the day amidst rumours of increase in discount rate by SBP in the upcoming Monetary Policy statement.

The turnover in the ready market remarkably surged to 235.345 million shares from 171.636 million shares changed hands a day earlier. Also, future market volumes enhanced to 25.187 million shares from 18.089 million shares of yesterday.

Accordingly, the overall market capitalisation surged by Rs37 billion to Rs4.294 trillion. Value of 212 stocks advanced, 128 declined and 36 remained unchanged with total 376 active counters on board.

Highest volumes were witnessed in Arif Habib Securities at 25.161 million trading at Rs179.60 with gain of Rs6.60 followed by Fauji Fertilizer Bin Qasim at 20.941 million trading at Rs42.60 with a gain of 85 paisa and NIB Bank at 11.087 million trading at Rs23.15 with a gain of 10 paisa.

Index closes above 14,000 points level after two weeks

 

[Neo]

Technical training programme designed for vacancies in Punjab ​

Wednesday, January 30, 2008

LAHORE: A special training programme has been designed to train unemployed youth of the area around Sheikhupura to make the workforce available to the auto cluster where factories are expected to commence production in the third quarter of June 2009.

Director National Industrial Park Development and Management Mohsin Syed stated this while briefing newsmen about the first-ever industrial park to support the auto industry in the country to be launched in March 2008.

The proposed auto cluster project site is located on Lahore-Sheikhupura road having 170 acres of land, which has been acquired and preliminary work has already been started. He said a comprehensive technical programme would be launched in order to give training under a crash programme to residents of the neighbouring areas having qualification of middle and matric classes and training will be provided through mobile training centres in three major disciplines including automobile, mechanical and construction.

These disciplines he added will cover 23 different sectors including mechanic (petrol), auto mechanic (diesel), motor cycle mechanic, auto electrician, driving and vehicle maintenance, mason, shuttering carpenter, steel fixer, building painter, house carpenter, welder/construction fabricator, plumber, domestic electrician, diesel engine mechanic, site accountant-cum-store keeper, civil surveyor, material technician, quantity surveyor, industrial filter, milling machine operator, turner, molder, electronic equipment repair, industrial electrician, home appliances repair and motor winding etc.

Training will be provided by TEVTA under its TSTP (TEVTA special training programme). It has already trained 70,000 apprentices for vacancies of various professions in Punjab and they all have been given employment on different technical positions in industrial organisations, he disclosed.

Technical training programme designed for vacancies in Punjab

 

[Neo]

German technical agency praises SMEDA’s role ​

Wednesday, January 30, 2008

LAHORE: Technical Adviser of the German Technical Cooperation Agency ‘GTZ’ Bernd Meyhoefer has appreciated cooperation and excellent work done by the Small and Medium Enterprise Development Authority (SMEDA) under the Renewable Energy and Energy Efficiency (REEE) programme.

Myehoefer said in a meeting held at the SMEDA here on Tuesday. The meeting reviewed the progress of ongoing activities of the REEE programme and introduced Meyhoefer as a new technical adviser, who has recently replaced Tobias Becker, former adviser of GTZ.

The adviser assured them of complete assistance on behalf of GTZ and his own personal capacity in forthcoming projects of the REEE programme and hoped SMEDA will be one of the focal partner agencies in the execution phase of new projects.

SMEDA CEO Shahid Rashid briefed about the existing energy scenario of Pakistan and highlighted the importance of energy conservation in industrial sector. SMEDA General Manager Iqbal A Kidwai said fortunately, energy efficiency and conservation procedures are the lowest cost options for meeting energy needs coupled with many other environmental, economic and social benefits.

SMEDA Deputy General Manager Fayyaz Riaz said recent work done by a joint team of SMEDA and GTZ has created a number of success stories under this programme. This collaboration has also introduced a system for energy audit in the textile sector.

German technical agency praises SMEDA’s role

 

[Neo]

2,300 MW projects to be launched by 2009​

ISLAMABAD, Jan 29: The independent power producers (IPPs) will install new power projects of 2300 MW by 2009 to meet current power shortage in the country.

This was stated by caretaker Minister for Water and Power Tariq Hameed while presiding over a meeting held to decide installation of fast track power projects, which could be operational by the end of the current year.

The minister said that another thirteen power projects totalling 3120 MW will be commissioned by the year 2010.

He said there was a rapid growth in economy and an expansion in the industrial sector was being witnessed because of the development reforms of the present government. He observed that there was a need to augment this with in uninterrupted power supply.

“The progress in the power sector is a proof of our commitment towards the development of the country and economic betterment of the people”, he remarked.

The meeting decided to create a capacity of around 1,000-1,200 MW for a period of three to four years to bridge demand and supply gap by 2010.

The meeting among others was attended by the Deputy Chairman Planning Commission, additional secretary finance, director general (gas) petroleum and natural resources, director general Board of Investment (BoI), chairman Wapda, managing director Power Projects Infrastructure Board (PPIB), chairman Nepra and MD Pepco.

2,300 MW projects to be launched by 2009 -DAWN - Business; January 30, 2008

 

[Neo]

Crescent Petroleum interested in investing in IPI​

ISLAMABAD: Sharjah based Crescent Petroleum Company is keen to take the contract of laying gas pipeline in Pakistani territory regarding billion dollars Iran-Pakistan-India (IPI) gas pipeline project, sources told Daily Times on Tuesday.

Sources said the company has started lobbying in Pakistan for level playing field to get the contract of laying gas pipeline and is said to make a consortium to carry out project. The cost of laying the pipeline within the Pakistani territory has been estimated at around $3 billion, sources added.

Sources said the company is having a strong involvement in the signing of Gas Sales Purchase Agreement (GSPA) on IPI as the task was assigned to the company to make arrangements for signing GSPA on IPI between Iran and Pakistan in Abu Dhabi on January 25.

Due to involvement of the Crescent Petroleum Company that is having the American shares, Iran stayed away to sign GSPA on IPI with Pakistan in Abu Dhabi in caretaker set up and conveyed to Pakistan it would sign the agreement with the next elected government, sources added.

Sources said that at present a caretaker Petroleum minister Ahsanullah Khan is playing the role of ladder between Crescent Petroleum Company and government of Pakistan to award the contract of laying gas pipeline in Pakistan to the company. Caretaker minister has earlier been the main player to make a deal between government of Pakistan and UAE based company etisalat on PTCL privatization, sources added.

Sources further said that the Crescent Petroleum Company also contains American shares and the company at present is also negotiating with India for Liquefied Natural Gas (LNG) import. Sources further said that this company was earlier to work on laying Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline before the hold of Taliban in Afghanistan. But the company stayed away to work on TAP project after the Taliban gripped Afghanistan.

Sources further said that Crescent Company had also involvement in Gulf-South Asia Pipeline project under which Pakistan was to import gas from Qatar but the government of Pakistan stayed away from working on the project, as it was not feasible.

The Economic Coordination Committee (ECC) of the Cabinet has approved the signing of gas sale/purchase agreement (GSPA) with Iran for the multibillion-dollar Iran-Pakistan-India (IPI) gas pipeline project.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Services trade deficit crosses $3 billion ​

KARACHI (January 30 2008): The country's services trade deficit has crossed $3 billion mark, up by 34 percent, during the first half of fiscal year 2007-08 as compared to same period of last fiscal year mainly due to the rising imports and decline in the exports of service.

The exports of services are declining, while the imports are increasing constantly during the current fiscal year and it is expected that during the current fiscal year services deficit would also reach new peak level, like trade deficit.

SBP statistics show that service sector exports stood at 1.392 billion dollars as against the imports of some 4.673 billion dollars during the July-December 2007 period, depicting a deficit of 3.281 billion dollars.

The deficit during the first half year also showed an increased of 829 million dollars, or 34 percent, as against the same period of last fiscal year, as during the July-December of 2006 overall services deficit stood at 2.451 billion dollars.

Heavy payments on account of transportation, travel services, insurance, technical fee, royalties and government sector were the major contributors in the services trade deficit, economists said.

"Rising imports had also played a major role in the services sector deficit, while the raise in the tariff of shipping lines was another leading factor behind it," they added.

Pakistan does not have any shipping line except one flag carrier Pakistan National Shipping Corporation (PNSC). Therefore, exporters and importers both are compelled to hire and pay to the international shipping lines, they said. The overall exports of services sector declined by 22 percent, while imports increased by 11 percent.

Overall services sector exports registered at 1.392 billion dollars as compared to 1.774 billion dollars during corresponding period of last year, a decline of 382 million dollars. Imports of services sector rose by 447 million dollars to 4.673 billion dollars as compared to 4.226 billion dollars during 2007.

The country earned some 501 million dollars on account of transportation against the payments of 1.671 billion dollars. Some 132 million dollars were earned from travel sector as against the payments of 808 million dollars, and communication sector exports stood at 69 million dollars as against the imports of 50 million dollars.

The construction sector earned 16 million dollars, insurance sector 14 million dollars, and 51 million dollars from were earned in financial sector during July-December 2007. About 68.78 million dollars payments were received on account of computer and information sector royalties and licence fees, 23.78 million dollars for cultural services, 1.2 million dollars other business services earning stood at 206 million dollars.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Metropolis to have Media City soon ​

KARACHI (January 30 2008): A Media City would be established in the metropolis where there would be an investment to the tune of $400 million. Sindh Information Technology Minister Jam Karam Ali stated this. He said this after a presentation by the Smart City Development Limited, Dubai, says a statement on Tuesday.

It was informed that the provincial government has identified 200 acres of land on the National Highway and Super Highway Link Road where the Media City would be established.

The minister said the Media City is being set up for the first time in the country and that there would be an investment of $400 million. He said the information technology sector is making a rapid headway in Sindh where there are a lot of opportunities for the investment. Jam Karam Ali pointed out that Sindh as well as Pakistan offer huge opportunities for investment.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Launching of industrial park in March ​

LAHORE (January 30 2008): The National Industrial Park Development and Management Company is working on an industrial park to back the auto industry and will launch it in March 2008, it emerged on Tuesday. "The proposed 'auto cluster' project site is located in Lahore, having 170 acres of land," said company Director Mohsin Syed.

The Ministry of Industries, Production and Special Initiatives has appointed Mohsin's company. Mohsin told a meeting that his company would set up a comprehensive technical programme to train people under a crash programme through mobile training centres in three major areas, including automobile, mechanical and construction. The three areas will cover 23 different sectors - from mechanical (petrol) to appliance repairs and motor winding.

Tevta will provide the training course. Tevta has already trained 70,000 students in different posts in the Punjab and had them employed in different technical positions in industrial organisations. The training aims at creating jobs for the unemployed with the production being expected to begin in the third quarter of June 2009.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Modern wholesale centres: 'establishment leaving positive impact on economy' ​

LAHORE (January 30 2008): Caretaker Chief Minister Ejaz Nisar has said that setting up modern wholesale centres in the province is leaving a positive impact on the national economy and accelerating the pace of development.

He said his government was encouraging foreign investment and promoting public-private partnership to strengthen development and that growing investment by international institutions in the Punjab was a good omen to improve the living standard.

He said the system of Metro Cash and Carry is resulting in availability of quality items to the citizens at affordable rates. He was talking to Managing Director of Metro Cash and Carry Giovanni Soranzo at Chief Minister Secretariat, here today. Provincial Housing Minister Mian Shafqat Ali was also present on the occasion.

The Chief Minister said that government is promoting trade and economic ties with the foreign countries. He said that setting up of wholesale centres in the province is resulting in provision of quality items to the consumers at reasonable rates.

He said that government is replacing the old system of trade with the modern system of marketing, which will help in safeguarding the rights of consumers as well as modernising the economy.

Nisar said that setting up of Metro is directly benefiting the farmers who are getting better returns for their produce. He said that establishment of Metro centres will also help in the export of local items to the foreign countries which will result in increase in the income of farmers as well as their prosperity.

Managing Director Metro Cash and Carry Giovanni Soranzo said setting up Metro Cash and Carry Store in Lahore is benefiting agriculture and local industry as well as resulting in availability of essential items to the consumers at affordable rates. He said that besides setting up of another branch in Lahore, Metro Cash and Carry would soon open its centre in Islamabad.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Efforts on to promote economic activities in NWFP, Fata ​

PESHAWAR (January 30 2008): NWFP Governor, Owais Ahmed Ghani has said that indeed we are confronted with highly important challenges with restoration of peace at the top. However, he added, we are following a multidimensional approach not only to tackle the problems effectively.

But solid measures will also be taken to promote economic activities and investments especially to encourage foreign investors in the province and Fata.

Addressing the industrialists and traders, during his visit to Sarhad Chamber of Commerce and Industry, Peshawar on Tuesday, the Governor said, "we are faced with an extraordinary situation requiring extraordinary measures to handle it.

However, he pointed out that the root causes of the problems, being faced in our country especially the NWFP and Fata, are the circumstances prevailing in the neighbouring country over the period and therefore the restoration of peace and normalcy in the entire region is linked with the situation in Afghanistan. The governor also dispelled the impression that use of force has always been the last option. He gave the example of Darra Adam Khel where the political administration adopted the process of Jirgas for controlling events. However, the militants did not pay any heed to the Jirgas, which necessitated the use of force.

Owais Ahmed Ghani further pointed out that majority of the people living in Fata were the peace loving and patriotic Pakistanis, however a small minority of the extremists had created all the trouble. He paid tributes to the personnel of security forces who sacrificed their lives while fighting extremists and the elements involved in militancy and said that they were truly martyrs and we are proud of them. The governor also pointed out that Pakistan is a responsible member of the world community and our economic development especially the income through exports and imports is only possible because of our good relationships with the rest of the world and we would continue our role in this respect.

The governor also stressed the effective role of the traders and industrialists in the development process and said that realistic, concrete and broad-based suggestions would be welcomed in this respect. However, he also made it clear that the government is quite conscious of the difficulties being faced by the industrialists, especially because of the demand of making further improvement in infrastructural facilities, provision of congenial atmosphere for investment and availability of required quantity of energy resources and solid measures are underway for this purpose.

Responding to the demands for construction of customs complex at Torkham and establishment of a dry port in the vicinity of Peshawar, the governor assured that necessary initiatives would be taken on top priority in this respect.

Referring to the establishment of carpet village in Peshawar, provision of normal quantity of natural gas to industrial estates of the province, especially the restoration of the facility to Gadoon Industrial Estate, resolving the grievances of flour industry, ensuring smooth trade activities through land route to Afghanistan, resolving traffic congestion problem in Peshawar City and curbing incidents of kidnapping for ransom, the governor assured that effective steps would be taken in this connection. The governor also said that protection of life and property of all citizens was the responsibility of government and we are fully cognisant of our obligations in this respect.

Earlier, the president of the Chamber, Haji Muhammad Asif and the chairman of Businessman Leaders Forum, Senator Ilyas Bilour while welcoming the governor highlighted the problems being faced by the industrialists and the traders of the province. They also thanked the governor for visiting the Chamber. Meanwhile, the governor also responded to the questions and points raised by the participants including representatives of media.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Work on 7-star hotel in jeopardy ​

KARACHI (January 30 2008): The joint project of the Sindh government and the Gulf-based company for the construction of 7-star hotel with the cost of around $1 billion is in jeopardy.

Highly placed sources in the Sindh planning and development department told Business Recorder on Tuesday that due to political uncertainty in the country, the huge investment was likely to be stopped by Gulf-based firm for the proposed project of 7-star hotel at Shahrae Faisal.

They apprised that before December 27, firm was waiting for green signal from the provincial government to start the construction of first ever 7-star hotel in Karachi, but after martyrdom of Benazir Bhutto, the company was seriously pondering to wind up the proposed project before its commencement. They said the think-tank of a firm believed that political instability would create hurdles in the construction of 7-star hotel.

Sources said the firm has thoroughly analysed country's current political condition and thereafter they decided that the 7-star hotel would not be constructed unless the democratic government would not be established in the country.

They said the department received a letter from the company in which they informed the department that "The construction of hotel will not be started before elections else if company starts project, it would be a chance to bear huge losses in the project."

Sources in the department said the commencement of a project was now based on country's political stability, which would only be possible after conducting fair and free polls. "They feared that if it sets out the project before election, the huge investment would be stuck during its construction, besides facing difficulties to continue the project in any untoward situation happened", sources maintained.

They said that Karachi had the capacity to have more four and five-star hotels as the number of foreign visitors and tourists besides official delegations was increasing every year. "Rooms in all the big hotels in the metropolis are occupied by foreign and local visitors and you have to reserve the room prior to the arrival at the hotel," they said.

"It shows the urgent need for more luxurious hotels in the city to provide convenient accommodation to the visitors." It may be mentioned that the Sindh government was inviting investors to build four and five-star hotels in Karachi. A scrutiny committee was also set up with the authority to take up the matter and remove all ditches in this regard.

Business Recorder [Pakistan's First Financial Daily]