Pakistan Economy - News & Updates - Archive

[Neo]

1,000MW power import accord with CARs in July ​

Saturday, June 28, 2008

ISLAMABAD: Pakistan will sign an agreement for the import of 1,000MW electricity from Central Asian Republics (CARs) during a meeting of the Inter-Governmental Council (IGC) to be held here next month, Minister for Water and Power, Raja Pervez Ashraf said while talking to the Ambassador of Kyrgyzstan, Nurlan Aitmurzaev who called on him here on Friday.

The Minister said that the agreements will be signed among Pakistan, Tajikistan, Kyrgyzstan, Afghanistan and the International Financial Institutions for the import of 1000MW and to further develop electricity trading arrangements between the Central and South Asian regions during the four day meeting of the IGC in the last week of July.

He said that Pakistan is facing energy crisis and all measures are being taken by the government to bridge the gap between demand and supply. The establishment of this electricity link between CARs and South Asia will strengthen the economic ties and enhance the bilateral relations among the countries, he added. He also stressed the need to explore possibilities for cooperation in other sectors particularly in tourism. He said that both the countries should exchange delegations to promote tourism between the two countries.

The Ambassador discussed other matters of mutual interest especially investment possibilities in water, power, transport and trade sectors. He said that Kyrgyzstan has great electricity potential with surplus power and will provide every possible assistance and technical cooperation in this regard.

During the meeting both underlined the need to expedite the actions on the decision signed in the last meeting of the Kyrgyzstan-Pakistan Joint Economic Commission.

1,000MW power import accord with CARs in July

 

[Neo]

High GDP growth in last five years raised living standard in Pakistan ​

ISLAMABAD (June 28 2008): High GDP growth over the last five years has reduced income-poverty ratio in a significant manner and raised the average living standards in Pakistan, but the country continues to grapple with issues that are fundamental to improve its abysmal human development levels.

After a period of low growth throughout the 1990s, the annual growth figure for Pakistan has been hovering around the 7 percent level since 2003-04. The current growth momentum of Pakistan's economy is largely the result of greater financial and trade integration and the good performance of the services and manufacturing sectors, said Mahbub-ul-Haq Human Development Centre annual report on 'Human Development in South Asia 2007'.

Although the growth in GDP has received strong support from foreign direct investment, the overall saving and investment levels in Pakistan continue to be unsatisfactory. The share of agriculture in GDP has declined, implying that Pakistan's economy is undergoing significant structural change.

The headcount index of poverty, which had increased from 25.8 percent in 1996-97 to 34.5 percent in 2000-01, saw a decline of more than 10 percentage points over the following four years. However, the gap between rural and urban poverty incidence has not seen any reduction, with the headcount index for rural areas roughly twice that of urban Pakistan.

Rising inequalities-income and non-income-have led to a weaker link between economic growth and poverty reduction in Pakistan. There has been a gradual erosion of the consumption share of the lowest 20 per cent and the consequent widening of the rich-poor gap.

Two-thirds of the rural households in Pakistan are landless and an almost similar proportion lacks access to tap water. In short, the seemingly high GDP growth in Pakistan is yet to be directed in an adequate manner towards the betterment of the deprived and the marginalised.

Agriculture sector still accounts for more than 43 percent of total employment, but labour absorption in the non-agriculture sector has been relatively sluggish. Low labour force participation rate, underemployment, high incidence of child labour, falling real wages for unskilled labour, growing proportion of educated unemployed and the flourishing informal economy are critical issues plaguing the labour market in Pakistan.

In terms of human development, the progress has been unsatisfactory. The average life expectancy has been stagnant between 1995 and 2005, while there has been a modest decline in infant mortality. The adult literacy rate is still very low, at 50 percent.

Pakistan is the most illiterate country within South Asia as it has not changed much in 10 years (1997-2007). The first South Asia Human Development Report in 1997 commented that while South Asia is the most illiterate in the world, Pakistan is among the most illiterate countries within South Asia. Ten years on, the picture has not improved much for Pakistan, said the report.

It was observed that it still has half of its population illiterate; has the highest number of out-of-school children in the world. It suffers from huge gender disparity at all levels of education.

The government is the largest provider of education, but the low quality of public sector education is the main issue behind most Pakistan's education failures. Pakistan is far behind in achieving education-related Millennium Development Goals (MGDs) set by the United Nations (UN).

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Govt urged to restore confidence of investors ​

Saturday, June 28, 2008

LAHORE: Pakistan Industrial and Traders Associations Front (PIAF) Chairman Mian Abuzar has urged the coalition govt to come up with a strategy to restore the confidence of local and foreign investors.

At a press conference, the PIAF chairman said that the government should take cue from India where successive coalition governments have acted in unison to ensure progress of Indian economy.

He said after a decade of cohesive policies India today is a force to reckon with in the global economy.

Abuzar said that former Prime Minister and his economic managers always showed a very pleasant picture to the people and now the nation is suffering due to their baseless statements. He said that the former rulers kept on lying for eight years and did nothing to build a single unit to produce electricity.

He also said had they taken an initiative for production of power in the country, economic situation would have been much better.

But now due to power shortage, trade deficit and inflation are touching peaks and export targets have just become impossible to meet.

However, the chairman added that the government has also disappointed the electorate and industry.

He said the country presently needs a prudent economic policy and better governance.

The intra-coalition disputes he added have adversely impacted both the governance and economy.

He said the February 18 elections and formation of the government had sent a positive signal abroad but due to differences between the two main parties, the economy could not make a jumpstart.

He said India or Iran might grab the position that Pakistan currently enjoys as the easiest and cheapest corridor to the central Asian markets.

Govt urged to restore confidence of investors

 

[Neo]

Pak-Japan trade to grow more: Ayukawa ​

KARACHI (June 28 2008): Every effort will be made to tap enormous potential to boost Pakistan-Japan trade, said the outgoing Managing Director of Pak-Suzuki Motor Company Kenichi Ayukawa. He was addressing a farewell dinner given by the Board of Directors of Pakistan Japan Business Forum (PJBF) on June 25, 2008 at Karachi.

Ayukawa said that he enjoyed every minute of his stay in Pakistan. In order to speed up the trade, he would visit Pakistan from Japan once or twice a year, he added. Earlier, PJBF member of Board of Director Sohail P Ahmed in his address of welcome paid glowing tributes to Ayukawa for promoting Pak-Japan trade and hailed that under his leadership Pak Suzuki Motor Company became the first automotive company. Senior Vice Chairman of PJBF, Masaharu Domichi, also appreciated the efforts of Ayukawa.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Gold exploration project to transform Balochistan: PM ​

Saturday, June 28, 2008

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani on Friday said the mega project for the exploration of gold, copper and other allied minerals in Chaghi, launched jointly by Antofagasta of Chile, Barrick Gold of Canada and the government of Balochistan, will bring about transformation in Balochistan. He said this while talking to a delegation headed by Jean Paul Luksic, Chairman Antofagasta, a Chilean joint venture company, which called on him here. The prime minister assured that the government will extend all necessary assistance for the timely completion of the project.

Gilani asked the delegation to ensure that maximum jobs would be given to the people of Balochistan and arrangements would be made for imparting requisite skills training to them so that they can avail job opportunities.

He said Pakistan will consider the signing of a Free Trade Agreement with Chile. He said that a government delegation will soon visit Chile to explore new avenues of cooperation and collaboration.

Luksic informed the premier that the project involves an investment of US$1-1.5 billion which is likely to eventually reach US$5 billion. He said the annual copper export would be over $1 billion. The meeting was also attended by Secretary Petroleum and senior government officials.

Gold exploration project to transform Balochistan: PM

 

[Neo]

Balochistan facing resource constraints​

KARACHI, June 27: With a mega-size cabinet of more than four dozen members, the Balochistan government is facing political pressures, resource constraints and physical and social infrastructure demands.

The province is almost half of Pakistan, with a tiny population that is widely scattered, and is in need of capital-intensive development schemes for logistics, education, health, business operations and what not.

For the next fiscal year 2008-09, beginning from July, the Balochistan government is taking up implementation of Rs15.74 billion development plan which has a built-in deficit of Rs8.30 billion.

Prime Minister Syed Yousuf Raza Gilani has promised a Rs3 billion special grant, but it remains a tentative possibility and hence has not been shown in the provincial budget as an income.

Balochistan Finance Minister Mir Asim Kurd, however, in his budget speech on June 21 said that release of this amount would reduce budget deficit from Rs8.30 billion to Rs5.30 billion.

The planners in Balochistan government want to complete 300 plus development schemes in the next fiscal year so that they could bring down the development budget from the existing Rs34 billion to a level which is manageable for them.

“Completion of schemes in larger durations has its own consequences,’’ said Ahmed Baksh Lehri, Additional Chief Secretary and boss of planning in Balochistan, adding, “planning and development in Balochistan is not an enviable task where resource constraints are an unending problem and there is no end to mounting political pressures from a coalition.”

Groaning under an overdraft of Rs19 billion from the State Bank of Pakistan, for which it was made to pay penalty at the rate of four per cent every year till it was converted into a soft loan last year, Balochistan started the year 2007-08 in a very difficult condition.

It announced a development outlay of Rs13 billion with Rs10 billion deficit, but it ended up spending Rs10.8 billion and completed 226 development schemes. The throw forward was brought down from Rs37 billion to Rs34 billion.

Balochistan carries a huge backlog of development task. It emerged as a province in 1970 on Pakistan map. Before getting a provincial status, Balochistan was an administrative unit controlled by the executive.

For those who were given task to control Balochistan from 1947 to 1970, their focus was Quetta.

Sui gas was discovered in early 50s and that sustained Pakistan’s economy, but Balochistan remained out of the agenda of planners of the federal government when it operated from Karachi or from Islamabad.

“After getting status as a province in 1970, Balochistan started with a development budget which was less than Jinnah Hospital, Karachi,” Lehri informed with a sarcastic smile.

As he recalled, the first-ever university of the province was established in 1971 in a college building. Few more colleges were added, primary school buildings were established “but the donor driven ideas caused serious gaps in the educational system.”

There was no end to woes and troubles for Balochistan after it emerged as a province. The four-year bloody war from 1973 to 1977 left deep scars on Balochistan’s economy and social conditions.

Rolling of Soviet tanks in Kabul sometimes in 1979 or so launched the big game in the region. There was an unending influx of Afghans. It changed the socio-economic and even moral fabric of traditional Baloch secularism and chivalry.

Balochistan emerged as a hub of drug trade and gun-running on international highway. How the planners in the federal government were looking at Balochistan when all these troubles were taking place.

In 1970, the federal government provided only Rs90 million for development budget to Balochistan. This was reduced to Rs62 million in 1971-72. It was Rs120.50 million in 1972-73. It was only Rs344 million in 1977-78. It was in 1985-86 that Balochistan got Rs938 million and Rs1.17 billion in 1986-87.

In 1991-92 when provinces were given for the first time right on their natural resources, Balochistan development budget soared to Rs4.40 billion but were scaled down for four years.

“In last 37 years, total development investment in Balochistan had been only Rs150 billion,’’ Mehfooz Ali Khan, the Balochistan Finance Secretary, revealed.

Not only that bureaucrats and politicians are unhappy on federal government’s attitude towards Balochistan, but the businessmen are also critical of Islamabad’s indifferent approach.

“Logistics is the key issue for expansion of business in this province,” Khalifa Tahir, a former president of Balochistan Chamber of Commerce and Industry, said.

He blamed the federal government for applying a criterion worked out for densely populated Punjab and NWFP on Balochistan.

“A stretch of a mile road in the Punjab or NWFP may service about 10,000 persons,” Khalifa Tahir argued who said perhaps a 100-mile stretch of road in Balochistan may connect two villages with about 20 to 40 houses.

“We don’t have an I. I. Chundrigar Road where we can provide jobs to thousands in Balochistan in a small cluster,” Mehfooz Ali Khan, the Finance Secretary, said. Here, he said the government would have to invest many times more than in Sindh, Punjab or NWFP.

Balochistan facing resource constraints -DAWN - Business; June 28, 2008

 

[Neo]

Pakistan and India settle IPI gas pipeline fee issue ​

NEW DELHI (June 28 2008): India and Pakistan have resolved commercial differences holding up a proposed multi-billion-dollar gas pipeline from Iran, oil ministers of both nations said on Friday. The project, which aims to transport gas from Iran to Pakistan and India, was first mooted in 1994 but has been stalled by a series of disputes over prices and transit fees.

Qureshi also said that Pakistan would "provide foolproof security" for the planned 2,600-km pipeline, expected to pass through Balochistan region: "I am happy to report that as far as Pakistan and India are concerned, we have resolved all bilateral issues. There is no issue whatsoever that needs to be addressed now," Pakistan's Oil Minister Shah Mehmood Qureshi was quoted as saying by Press Trust of India (PTI) news agency.

Qureshi, who also holds Foreign Affairs portfolio, is here on a three-day visit, and made the announcement after talks with Indian Oil Minister Murli Deora. "We have reached an agreement on the principles of charging transit fee. India remains fully committed to the project," the Indian minister was also quoted as saying by PTI. Qureshi also said that Pakistan would "provide foolproof security" for the planned 2,600-km (1,615 miles) pipeline, expected to pass through Balochistan region.

APP adds: Pakistan and India have decided to hold foreign secretary levels talks here on July 21 to launch the fifth round of their more than four-year old composite dialogue. The decision came at the meeting between Foreign Minister Shah Mahmood Qureshi and Indian External Affairs Minister Pranab Mukherjee here on Friday.

Addressing a joint press conference, Pranab Mukherjee announced that Pakistan chapter of Pakistan-India judicial committee would visit Indian jails next month. Shah Mahmood Qureshi said the environment was conducive to resolving outstanding issues and the people of both the countries supported the peace process.

All political players in Pakistan and India were also supportive of the peace process, he said. The Foreign Minister said the secretary level talks would discuss Kashmir and other issues. The issues of Siachen and Sir Creek were resolvable, he said.

"We should seize the opportunity to resolve all outstanding issues," Shah Mahmood Qureshi emphasised. People of both the countries wanted peace and stability, which was necessary for economic development of South Asia, he said. The two ministers expressed the common resolve to take the peace process forward.

Shah Mahmood Qureshi said Pakistan wanted India to join IPI gas project, as it was beneficial for both energy-starved countries. Describing the project as doable, he said both the countries were paying huge subsidies on account of energy. To a question on the issue of death row prisoner Sarabjit Singh, he said his case was under consideration.

Referring to the ceasefire and confidence buildings measures, Qureshi said Pakistan wanted maintenance of ceasefire on the Line of Control (LoC) besides more confidence building measures. The working groups of both the countries would review the implementation status of such CBMs. When asked about security in Peshawar, he said the northwestern provincial capital was absolutely secure.

He Pakistan has adopted three-pronged strategy to counter terrorism including dialogue with those who are against terrorism, economic and social development of the area and use of force as the last resort.

Referring to the issue of prisoners, he said it had been brought to our notice that there was mishandling of prisoners and these cases had been published in Pakistani press. "It is an humanitarian issue and recommendations of the Judicial Committee should be implemented in letter and in spirit," he said.

The Foreign Minister, in his opening remarks at the press conference, said he had come to India with positive mind and realistic agenda. He urged that serious thought should be given to resolving outstanding issues.

"I have come as a representative of democratic government and coalition partners. The region has huge potential which can be exploited if peace, and stability is there," he added. He said Pakistan wanted liberal visa regime, people-to-people contacts and economic cooperation.

Earlier, Pranab Mukherjee said although this was the first visit of Shah Mahmood Qureshi to India as Foreign Minister, he was no stranger to India and had visited many times in the past. He said the composite dialogue process had substantial achievements to its credit. This process had proved to be a useful instrument for developing and enhancing bilateral relations.

"It is our expectation that the fifth round of this process, to be launched in July, will be even more fruitful than the earlier rounds," he said. Mukherjee said Pakistan's Deputy Chairman of Planning Commission held discussions. Issues of energy, security, food security, poverty alleviation, amongst others, were challenges, which confronted both the countries, he said.

He noted that certain ideas for cooperation were emerging in the areas of wind and thermal energy. The joint anti-terror mechanism also met in Islamabad recently and the discussions in that meeting were constructive, Mukherjee said.

He said India was committed to peace, friendship and good neighbourly relations with Pakistan and to develop these relations in an atmosphere free from violence or the threat to use violence. "Such an atmosphere has to be positively promoted," he said.

"I believe we both have certain ideas on the table for detailed technical follow up in the composite dialogue once the fifth round begins at the secretaries level," he said. The resurgence of democracy and popular participation in Pakistan was a positive factor for bilateral relationship and indeed for the whole region, Mukherjee said.

The scope for cooperation was immense and covered all fields, he said, adding India hoped that in the fifth round of the composite dialogue, concrete achievements would continue and pave the way for a qualitative transformation of bilateral relations.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Gwadar Port to refund $2 million: PSA default​

KARACHI, June 27: The Gwadar Port Authority (GPA) in its board meeting has decided to refund $2 million performance bond to the operator Port of Singapore Authority (PSA) despite the fact that the latter defaulted on its agreed business plan.

Sources privy to GPA board meeting held on June 22, at a local hotel, told Dawn that some members raised objections over the decision to refund the performance bond to the port operator, who did not only fail to perform but also defaulted on its business plan.

They said that as per the business plan the PSA was bound to use the port’s operational capacity up to 50 per cent in the year 2007 and 100 per cent capacity this year.On the contrary the PSA failed to bring in even a single vessel to the port during last 18 months and installed 22-year old refurbished two gantry cranes, which are yet to be tested by an independent surveyor.

Meanwhile, port and shipping experts say that the PSA has totally defaulted on agreed concession terms and conditions and was dragging its feet without making any investment in marine services (tug, pilot and mooring boats), port operation and cargo handling.

The PSA has two local partners – AKD securities and NLC – who are primarily involved in the development of a free economic zone and logistics. Therefore, they have little role in bringing the port operational.

These experts said that during 18 months period only one vessel chartered by the state-owned Trading Corporation of Pakistan (TCP) loaded with 72,000 tons of wheat was given berth after lighterage.

Therefore, the performance of the PSA could well be judged from the fact that for any port operator the primary responsibility is to induce shipping lines so that a port becomes operational but in the case of Gwadar any shipping line has yet to show interest.

The shipping circles are flabbergasted over the GPA decision to refund the performance bond of $2 million to PSA at a time when the federal cabinet has proposed a revisit of the contract signed between a consortium of Singapore Port Authority/AKD Securities.

The cabinet also considered the GPA’s revised bill for carving a new corporate structure of the Gwadar Port, which could be based on professionals and qualified people in maritime affairs.

The maritime experts said that had the GPA or for that matter the ministry of ports and shipping monitored the PSA performance during the last 18 months, the situation would not have been so bad.

These experts have suggested that not only the PSA contract should be revisited but the entire bidding procedure for the Gwadar Port should be investigated in which other bidders – West Port Malaysia, and Globe Marine (Saudi Arabia and Pakistan International Container Terminal were not allowed sufficient time to prepare their tender documents for getting the concession.

Gwadar Port to refund $2 million: PSA default -DAWN - Business; June 28, 2008

 

[Neo]

KSE share volume plunges to 7-year low at 30m​

KARACHI, June 27: Trading volume on the Karachi Stock Exchange on Friday fell to a seven-year low at 30m shares as investors kept to the sidelines owing to political uncertainty and the absence of leading brokers who remained busy with the formalities of the rollover week after the expiry of the matured June settlements.

The KSE 100-share index was off by 99 points at 12,353.19.

However, it was not the lowest total as an all-time single-session low was recorded at 15.141m shares on Sept 3, 2001 after the full implementation of T+3 trading system. The second lowest figure was hit at 16.565m shares on Oct 8, 2001 after the US attacked Afghanistan and the highest so far at 1.122 billion shares on April 16, 2004 owing to heavy buying in OGDC, PTCL at the time of their debut.

Some analysts also attributed the steep fall in the volume figure to the rollover week as the matured June settlements were rung off the board and the July contracts assumed the role of ruling deliveries. Clearing problem faced by some of the brokers was another aiding negative factor, they added.

“The share business appears to be in a real trouble as investors are not inclined to put fresh money in stocks owing to an uncertain future outlook,” brokers said.

The shares market suffered fresh pruning as a section of investors indulged in profit-selling on a number of counters at the inflated levels amid light trading but there were not many willing buyers.

Analysts said it was the extension of Thursday’s late selling as investors were not inclined to hold onto their long positions even on the blue chip counters due to law and order situation in the tribal areas and negative US comments on the prevailing conditions in the border areas.

The KSE 100-share index finished with a fall of 98.89 points at 12,353.19 as compared to 12,452.08 a day earlier, reflecting the weakness of the leading base shares. Its junior partner the 30-share index was marked down by 134.16 points at 14,459.14.

Minus signs held a strong lead over the plus ones under the lead of United Sugar and Siemens Pakistan, off Rs16.67 and Rs14.20. Other ended modestly lower under the lead of EFU General, JS & Co, Attock Petroleum, PSO, Shell Pakistan and Pakistan Services, which fell by Rs4.13 to Rs5.40.

Bata Pakistan and Ferozsons Lab managed to finish higher by Rs75 and Rs14.04, respectively, followed by Haseeb Waqas Sugar, Shahtaj Sugar, Agriautos, Indus Motors, Chaudhry Textiles and EFU General, up by Rs5 to Rs9.09.

Trading volume fell to a new low at 30m shares as compared to 146m shares a day earlier as losers maintained a strong lead over the gainers at 190 to 66, with 28 shares holding on to the last levels.

KESC came in for modest support and was marked up by 19 paisa at Rs5.24 on 3m shares followed by MCB Bank, off Rs3.33 at Rs329.67 also on 3m shares and EFU General, higher by Rs9.09 at Rs364.50 on 2m shares.

Bankislami lower by 10 paisa at Rs14.94 also on 2m shares, Arif Habib Securities, easy by Rs1.64 at Rs163.11 on 1m shares, OGDC, lower by Rs1.26 at Rs125.61 also on 1m shares and NIB Bank, easy by 11 paisa at Rs11.48 on 1m shares.

Other actives included JS & Co, off by Rs5.40 at Rs535.50 on 1m shares, Dominion Stocks, lower by six paisa at Rs6.07 on1m shares and D.G. Khan Cement lower by 68 paisa at Rs67.81 on 0.853m shares.

FORWARD COUNTER: Engro Polymer came in for stray selling and fell by 41 paisa at Rs29.55 on 4m shares, Habib Bank, lower by Rs2.17 at Rs215.54 on 3m shares and PTCL, easy by 39 paisa at Rs39.21 on 2m shares.

MCB Bank followed them, off by Rs3.31 at Rs331 on 1m shares and JS & Co, off Rs5.51 at Rs545.59 on 0.888m shares.

DEFAULTER COMPANIES: Trading activity on this counter was slow in sympathy with the ready section as investors most of the time kept to the sidelines. Price changes and volume figures in most of the shares were modest.

Barring a deal of 0.105m shares in Zeal Pak Cement, which ended lower by two paisa at Rs2.76, other actives were neglected, which showed fractional either-way changes.


KSE share volume plunges to 7-year low at 30m -DAWN - Business; June 28, 2008

 

[Neo]

'PTA deposits over Rs 50 billion and $291 million in exchequer' ​

ISLAMABAD (June 28 2008): Pakistan Telecommunication Authority (PTA) has deposited more than Rs 50 billion in exchequer besides 291 million dollars as license fees while mobile phone companies are depositing more than Rs 101 million annually as direct taxes, said Senator Talha Mehmood, Chairman Senate Standing Committee on Interior here on Friday.

While addressing a press conference, he said that besides huge investment and revenue generation, mobile companies have provided more than one million jobs to unemployed youths in Pakistan.

Talha Mehmood praised the performance of the PTA saying that the authority has deposited direct revenue of Rs 44.9 billion, which it collected from mobile companies till this date, while Rs four billion were paid to Ministry of Science and Technology for Universal Services. He said that Rs 2.4 billion were paid to Ministry of Information Technology for Research and Development.

The PTA has collected 291 million dollars as license fees from mobile companies and deposited it in national exchequer, he said, adding that the mobile companies are depositing more than Rs 101 billion in national exchequer in the head of direct taxes, including GST, income tax and other taxes.

He said that two weeks time was given to PTA to provide the data regarding the remaining 2.1 million unauthorised and unregistered SIMs. Talking on the issue of blockage of unauthorised and unregistered SIMs, he said that the PTA has provided him CD regarding the blockage of more than 5.4 million unauthorised and unregistered SIMs and he has constituted a committee to check the data.

The committee will submit its report in two weeks, he added. He said that the deadline for blocking the unregistered SIMs was extended till July 31st and after August 1, massive crackdown will be launched. Besides blocking SIMs, people having unauthorised SIMs will be arrested. "I have asked the PTA to issue notices to cell-phone companies regarding the operation after August 1", he added.

He said that mobile phone service in Pakistan is cheapest in the world but it was exploited and misused as rules and regulations were not followed. "My sole target and objective is to bring complete transparency in this sector", he added.

These companies have been directed to issue SIM only after verification from Nadra, Talha said and added that they had raised the issue of incapability of Nadra to check 100,000 SIMs daily.

"I visited Nadra office on Friday and met with its chairman who briefed that Nadra is capable to verify more than 100,000 SIMs a day", he said, adding that Nadra is upgrading its whole system with the cost of 3.8 million dollars which will make process more easy.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Pakistan’s IT sector progressing rapidly ​

Thursday June 26, 2008

ISLAMABAD:--Pakistan’s IT industry is progressing rapidly at more than 50 per cent annually for each last four years, with many local IT companies winning huge contracts from domestic as well as international market, an official of PSEB (Pakistan Software Export Board) said in a statement issued here.
Quoting the figures released by SBP (State Bank of Pakistan) last year, a quantum annual increase of 61.18 per cent has been registered with IT exports of US $116 million against the previous year’s US$72 million.

Many companies are successful in obtaining huge domestic as well as international businesses contracts and venture capital funds from foreign investors. The official disclosed that Vopium, a Pakistani IT company, has recently gained venture capital fund worth USD 6.75 million from Enex Group SA, Luxembourg. The company’s software allows saving of 40-90 per cent when making international calls or sending SMSs from mobile phones.

Another recent example of two leading US based Venture Capital (VC) firms, ePlanet Ventures and Draper Fisher Jurvetson (DFJ), providing funds to Naseeb Networks, speaks volumes of the trust placed in the potential of the Pakistan’s IT industry by foreign investors, he added.

The PSEB official further said that there is a lot of potential in Pakistan’s IT industry. NetSol, a local leading IT company listed at NASDAQ and has recently been dual-listed for trading on the Dubai International Financial Exchange (DIFX). The presence of Pakistani IT companies on international stock exchanges is a positive sign for the foreign investments in Pakistan IT industry.

Regarding domestic requirements, the official said that Pakistani IT companies are also fulfilling the needs of local industry and many leading telecom companies are utilizing the services of Pakistani IT companies to automate and enhance their operations. Mobilink, for example, has recently singed LMKR, a leading IT company of Pakistan and global provider of Geo technology and information technology services, to automate its Warehouse processes. Similarly, Ufone signed Teradata to expand its Data Warehouse with state-of-the-art 5550H nodes and to enhance its customer support services.

Financial enterprise solutions, developed by various Pakistani IT companies, have been successfully deployed worldwide. To name a few are TPS, MIXIT, Autosoft Dynamics and Systems Limited. The solutions developed by these companies have been successfully deployed in leading banks and financial institutions around the globe, he added.

PSEB is a Government agency mandated to promote Pakistan’s IT Industry, including software, IT Enabled Services, hardware and call centers locally and globally. PSEB has been facilitating the IT Industry through its programs in Human Capital, Office Space, Marketing, Company Capability Development, Telecom Bandwidth, Industry Finance, Public Policy, Strategy & Research, and Facilitation. Government has already introduced a package of incentives including tax exemptions for the IT sector until 2016, 100% foreign equity and earnings repatriation and low-rent facilities for IT companies.

Pakistan News Service - PakTribune

 

[opinion786]

1. Pakistan economy was the 3rd fastest growing economy after China & India in 2006.

2. Pakistan in 1999 was an economy of $75 billion and now in 2006 it is a $160 billion economy. [Source].

3. Under Musharraf’s vision: 9 world class Engineering universities being developed. [Source. Project halted due to Political uncertainty]

4. Private sector institutions have increased from 36,096 (in 1999) to become 81,103 (in 2006). (Source)

5. Pakistan is the 3rd best in world Banking profitability. [Source].

6. Pakistan software now values around $2 billion, including $1 billion exports. [Source].

7. Around 80,000 direct jobs & 500,000 indirect jobs have been created by the Telecom sector alone. [Source].

8. Industrial Parks are being setup throughout the country for the very first time. [Source & this & this].

9. Major Mega projects like the Saindak, Rekodiq, Marble production, Coal production and Mining & Quarrying are being pursued. [Source].

10. GDP growth is now 6%. Earlier it was 3.5%.

11. Foreign Reserves from $1 billion to $17 billion.

12. Karachi stock market: rose from 700 points to 13,000 points. [Source].

13. Literacy rate has improved by 11%. [Source].

14. Poverty levels have decreased by 10%. [Source].

15. 3 dams have been constructed: Mirani, Subakzai, Gomalzam dams. [See this, this, and this. (Kurram Tangi Dam)].

16. 6 Motorways completed or under construction: M1, M3, M8, M9, M10, M11. [Source].

17. Six major highways under construction. [Source].

18. GWADAR advance Mega Sea port developed under Musharraf’s vision. [Source].

19. Historic 100% increase in Tax collection of $11 billion. [Source & this].

20. Large scale manufacturing is 30 year high. [Source].

21. Construction activity is 17 years high.

22. Newly found World class copper- gold deposits in Chagai will fetch around $600 million per year.

23. A new Oil refinery with UAE will fetch $5 billion & will process 300,000 oil barrels a day. [Source].

24. CNG sector has attracted over $70 billion investment in last 5 years. [Source].

25. Industrial sector registered 26% growth. [Source].

Our leader - Musharraf (for sources)

 

[opinion786]

For Pro-Musharraf web-site and Economic information:

Our Leader - Musharraf

Our leader - Musharraf

 

[bhangra12345]

1. Pakistan economy was the 3rd fastest growing economy after China & India in 2006.

The statistics of 2006 for Pakistan has been told by the govt as fudged.
I wouldnt put my bet on this number also. Aziz govt overspent Rs558bn, fudged figures: Dar

2. Pakistan in 1999 was an economy of $75 billion and now in 2006 it is a $160 billion economy. [Source].

For growing from 75 to 160 in 7 years, i.e. a growth of 113% in 7 years, which is more than 15% growth per year. Go figure

3. Under Musharraf’s vision: 9 world class Engineering universities being developed. [Source. Project halted due to Political uncertainty]

establishing five engineering and 3 technology varsities of international standards and it was likely that a couple of varsities would go functional in two or three years time.

from the source dated jan 2006, he was in power from that time to dec 2008, i.e. 2 years, how many univs came up or was this an "election promise" as we say.

4. Private sector institutions have increased from 36,096 (in 1999) to become 81,103 (in 2006). (Source)

The private sector institutions include private schools and madrassas. So what is the break up?

5. Pakistan is the 3rd best in world Banking profitability. [Source].

The rise in earning and profitability indicators was particularly noteworthy, partly reflecting the high spread between deposit and lending rates (700 basis points).

This high spread indicates that there is not much competition in the market and it is a sort of virtual monopoly.

6. Pakistan software now values around $2 billion, including $1 billion exports. [Source].

from a post just two posts above
"Quoting the figures released by SBP (State Bank of Pakistan) last year, a quantum annual increase of 61.18 per cent has been registered with IT exports of US $116 million against the previous year’s US$72 million."

whom should I believe? Note in the source it was given as IT sector. Or some "difference" in meaning of IT?

etc. etc, so may I ask you, what has Musharaff done for Pakistan?
Next time please cross check your sources.

 

[Vinod2070]

For growing from 75 to 160 in 7 years, i.e. a growth of 113% in 7 years, which is more than 15% growth per year. Go figure

Much of this growth was not real growth but the effects of inflation/currency fluctuation.

The economist PM of Pakistan failed to mention this while claiming to double the economy in 5-6 years flat.