Pakistan Economy - News & Updates - Archive

[Neo]

Pakistan mulls IMF aid, no chance of default: SBP ​

DUBAI (updated on: October 29, 2008, 14:27 PST): Governor State Bank of Pakistan said on Wednesday that an International Monetary Fund (IMF) package would be announced in due course and there was "no possibility" that the country would default on its debt.

"We are taking steps to build up the reserves. We are developing a macroeconomic stabilisation package which will help us attract capital flows," said Shamshad Akhtar, governor of the State Bank of Pakistan.

"We have a technical engagement with the IMF and in due course a package will be announced," she said on the sidelines of an Islamic finance meeting in Dubai.

Asked if Pakistan would turn to the IMF, she said "it is under consideration. We have a few plans and we have other options.... There will be no default by Pakistan."

 

[Neo]

ADB to provide $450 million for sustainable economic growth​

FAISALABAD (October 29 2008): Asian Development Bank will provide US $450 million (Asian Development Fund US $100 million and Ordinary Capital Resources US $350.00 million) for Sustainable Economic Growth Governance Accelerating Economic Transformation Programme-2 during the year 2009.

According to official sources, the Technical Assistance programme of ADB will be implemented over a period of two years starting in October 2008 and running until September 2010. This sub-project will focus on the design and implementation of targeted safety net programs for the poor and vulnerable, gradual elimination of wheat and energy subsidies, and restructuring of the electricity sector debt.

Pakistan Government has agreed with the ADB that the targeted safety net program coverage expanded to over 5 million households, while market-based pricing for farmers and flour millers will be adopted by 2010. It was also agreed with the ADB that the electricity subsidy will be brought to zero by June 2010, and would be maintained at that level, except for lifeline tariffs.

The design for this new TA takes into account existing TAs and will be supplemented by a sub-project from ADB's ongoing governance TA cluster, financed by the Department for International Development of the United Kingdom. This sub-project will focus on the design and implementation of targeted safety net programs for the poor and vulnerable, gradual elimination of wheat and energy subsidies, and restructuring of the electricity sector debt. In addition, an ongoing TA will also support Pakistan's anti-money laundering efforts.

The TA is estimated to cost $1,040,000 equivalent. ADB will provide $800,000 on a grant basis from its TA funding program. The Government's contribution of $240,000 equivalent will cover office accommodation, training and workshop facilities and counterpart support.

According to official sources, the Ministry of Finance will be the executing agency for the TA and will help co-ordinate the work of the TA with the implementing agencies. For the financial sector component, the work wil

l be co-ordinated and supervised directly by the concerned regulatory agencies. The TA will be implemented over a period of 2 years starting in October 2008 and running until September 2010. The AETP will provide significant benefits and will have a positive impact on the poor.

First, the immediate outcome of AETP, particularly under sub-program-1, will be to help Pakistan overcome the short-term exogenous shocks of spiralling food and fuel prices and meet the immediate and large fiscal needs. Second, it will help the Government move away from inefficient and untargeted subsidies to a targeted safety net program for the poor. Beginning with about 2 million households immediately, and expanding to cover 5 million households during the 2008-2009 fiscal year if the safety net program implementation is smooth, the AETP could potentially target up to 9 million households.

In parallel, the AETP will also assist the Government in embarking on a medium term reform agenda. As such, third, the AETP will raise public confidence in the banking system through a depositor protection scheme, and stronger financial intermediaries that are better able to mobilise and allocate resources and risks.

Fourth, the AETP will open the way forward for structural transformation, and in the process, it will help cut transaction costs for businesses (eg, by reducing red tape in tax payments) and improve the investment climate. Fifth, the AETP framework will enable ADB to sustain policy dialogue on structural reform in sectors where ADB has been actively involved through past and current investments.

Commenting over the "Social Protection and Safety Nets in Pakistan", ADB expert mentioned that the National Social Protection Strategy which aims to bring social safety nets to 6.2 million households in the next five years was approved by the Government of Pakistan in 2007.

Pakistan's existing safety nets include: (i) cash transfers (Zakat, Pakistan Bait-ul-Mal's Food Support Program, and conditional cash transfers); (ii) Old-age income security (pension for Government employees, employees old age benefit institutions); (iii) other employment-based programs (Workers Welfare Fund, programs through various foundations); (iv) Micro credit and NGO programs (Pakistan Poverty Alleviation Fund, Khushhalibank, Rural Support Programs etc); (v) Public works Programs; (vi) food based programs (Tawana Pakistan Mid-day school meals); (vii) wheat subsidy; and (viii) social security programs (pension - old age, survivor and disability and benefits to formal sector workers).

Prior to the 2007 Strategy, there was no overarching social protection strategy in Pakistan. It obviously led to lack of direction and poor co-ordination on the part of individual agencies and programs working in this area. The absence of a social protection strategy could also explain the low and irregular budgetary allocations for the purpose. Public spending on key safety net programs is only 0.5percent of the GDP.

This is low by international standards and inadequate to meet existing needs. It is hard to assess the effectiveness of these programs in addressing poverty and vulnerability given a lack of monitoring and supervision system, any third party verifications, and feedback loops for self-correction and learning.

Organisations implementing safety net programs are involved in multiple activities not part of their core competency (running schools, hospital, training centre etc) hence thinly spreading limited resources and providing no synergies between agencies and program. There is no systematic targeting and beneficiaries are selected on the basis of administratively determined criteria.

Ad hoc selection process of beneficiaries, distribution system and discretion of the government functionaries leaves room for leakage of funds. All this has reduced the effectiveness of the programs and lowered their credibility in public eye, they pointed out.

ADB report stated that Pakistan offers income support through two cash transfer programs, Zakat and Bait-ul-Mal. Zakat, managed by federal Ministry of Religious Affairs, Zakat and Ushr, is a State-based option for Muslims to meet their charitable obligations through a deduction once a year at the rate of 2.5 per cent on the value of certain financial assets.

It applies only to Sunni Muslims and others can choose not to be included in the scheme and pay their zakat privately. Pakistan Bait-ul-Mal (PBM) is a semi-autonomous organisation within the Ministry of Social Welfare and Special Education. Bait-ul-Mal's objectives as stated in the Bait-ul-Mal Act are to provide financial assistance to destitute and needy widows, orphans, invalid, infirm and other needy persons.

Unlike Zakat, Bait-ul-Mal benefits are open to all regardless of creed. Also, unlike Zakat, the funds are entirely controlled by public servants. It has offices at provincial and district levels that are closely linked to, but not part of provincial administrations.

Bait-ul-Mal's main programs of direct assistance to individuals are the Food Support Program, Individual Financial Assistance, National Centres for Rehabilitation of Child Labour, Vocational Training Institutes, Tawana Pakistan (school feeding program) and building of homes. It also gives grants to NGOs to provide institutional support for orphans, the disabled and abandoned and destitute women, and the aged. It also provides some grants for water supply. In the past, it has also completed a housing development scheme for the poor in Sindh.

The PBM programs face problems of poor targeting, fragmentation, duplication, inadequacy, poor monitoring and sustainability. The government has laid out its strategy to deal with these issues in the National Social Protection Strategy. The Vision of the Strategy is to develop an integrated and comprehensive social protection system, covering all the population, but especially the poorest and the most vulnerable.

The Core Instruments proposed by the Strategy include expanding the coverage of cash transfers using conditional cash transfers (CCTs) supplemented with unconditional transfers (through the Food Support Program (FSP) and Zakat) among others. PBM is undertaking efforts to improve targeting, delivery mechanisms and monitoring through a number of initiatives.

They are in the process of cleaning-up their database and creating a comprehensive computerised Management Information System based on relatively authentic Computerised National Identity Cards (CNIC). Developing, piloting and expanding proxy means tested targeting mechanism in combination with community validation is expected to enhance transparency and credibility of the system. Fiduciary risks are being minimised through improved financial management and introduction of consolidated accounts at the field level to ensure effective reconciliation, they added.

ADB report mentioned that the Pakistan Government has announced the launch of a new cash transfer program in addition to the already existing program of Zakat, Bait-ul-Mal, and provision of food items at subsidised rates through the existing and expanded network of government-run Utility Stores.

The new program, named after the former Prime Minister of Pakistan, is called "Benazir Income Support Program". For this purpose, the Government has allocated an amount of Rs 34 billion to be raised to Rs 50 billion in the future.

The program entails provision of a cash grant of Rs 1000 per month to each qualifying household to be selected through a means tested program based on the CNICs. Relying on this system will require the Government to address the coverage issues of the CNIC database. Additional TA will be required to develop systems for the new scheme.

Despite challenges, ADB experts pointed out that it is very clear that the Government not only has existing safety nets but also intends to improve their coverage and targeting. The programs are expected to target more than 5 million households.

They have also substantiated their intentions by allocating substantial amounts in the budget. Subject to improving systemic issues, the programs have a significant scope and need for expansion. World Bank is working with the Ministry of Social Welfare and PBM to improve targeting of their existing programs. UN has fielded a joint mission to assess the situation and propose immediate and medium to long-term measures in the wake of recent food crisis, they concluded.

 

[Neo]

Pakistan and Turkey to sign framework agreements ​

ANKARA (October 29 2008): Prime Minister Syed Yousuf Raza Gilani held tête-à-tête followed by a detailed delegation level meeting with Turkish Prime Minister Recep Tayyip Erdogan, here on Tuesday. Both Prime Ministers covered whole gambit of bilateral relations in a very cordial and friendly atmosphere and there was complete agreement between the two on almost every issue of mutual interest.

Noting that the present bilateral trade of around $700 million was not commensurate with the potential and opportunities available in both countries, it was agreed that it would be enhanced to level of $1 billion as soon as possible by diversifying the export products. Turkey would assist Pakistan in development of its tourist infrastructure and tourism sector by sharing its experience in this important field.

It was agreed that Pakistan and Turkey would sign framework agreements for co-operation in economy and trade, science and technology, defence and on upgradation of cultural ties and promote student exchange and people-to-people contacts.

Pakistan and Turkey would also promote project co-operation and place negotiations for Preferential Trade Agreement on fast track. The meeting of Joint Ministerial Commission, which has remained dormant since 2002, would be convened in the near future to add new impetus to the existing overall economic co-operation.

Turkey would encourage its corporate sector to invest in Pakistan in Thermal and Hydel power generation, agriculture, packaging of agro products, housing and infrastructure construction sectors. The Turkish Exim Bank would offer buyer's credit to Pakistan to finance the supply of trucks to Pakistan's Armed Forces.

The Prime Minister of Pakistan assured his Turkish counterpart that his government would help in resolution of some problems being faced by the Turkish investors in the country. Pakistan would also look into the Turkish request for strengthening the transport links between the two countries for facilitation of trade links, particularly by road transport.

The Turkish Airlines would be allowed to increase the numbers of its weekly flights to Karachi and would also be permitted to start operating its flights to Lahore and Islamabad. Both sides also agreed to cooperate in counter-terrorism campaign. The Interior Ministers of Pakistan and Turkey would remain in close regular contact in this regard to determine the ways and means of enhanced co-operation in this area.

The Prime Ministers of Pakistan and Turkey also discussed the regional and international issues of mutual interest particularly South Asia, Middle East and Afghanistan. Pakistan offered its complete support to Turkey's Istanbul Initiative on Afghanistan.

 

[Neo]

All set to achieve $22 billion export target: TDAP chief​

KARACHI (October 29 2008): Chief Executive, Trade Development Authority of Pakistan (TDAP) Syed Mohibullah Shah said on Tuesday that the country is all set to meet its export target of 22 billion dollars fixed for current fiscal year 2008-09.

Talking to Business Recorder on the second day of Expo Pakistan organised by TDAP in collaboration with Pegasus at Expo Centre Karachi, he said that Pakistan has done "breakthrough" in the export sector by arranging ever-biggest exhibition "Expo Pakistan" in the history of Pakistan. He said that all negative concepts about peace situation in the country and worst economy proved wrong.

He said, now Pakistan has proved the world that the country has excellent potential and open for the world business community. He said that it was now very easy not only to meet exports target of 22 billion dollars but hopefully it will exceed the target. "There were two reasons behind arranging this event, one was to undo the negative propaganda about law and order situation and secondly attracting the world business community that we have achieved by arranging the event successfully," he added.

Mohibullah Shah said that various countries were giving advises to their citizen especially to the businessmen to avoid visiting Pakistan, which after this event has proved wrong and in future these countries will hesitate in giving such advises. He said that international media is not sculpturing the proper picture of Pakistan, which is condemnable.

He said that over 500 delegates from 50 countries had visited the exhibition and most of them are serious buyers. He said that most of these delegates called on him and assured him of increasing and enhancing their business in Pakistan. He said these delegates expressed their satisfaction over peace situation and trade potential persisting in the country. "However, I admitted that security is tightened but it has perspective of international law and order situation, which on every passing day would be resolved and security arrangements would be softened for visitors," he added.

He said that although the exports are growing but sectors in which the exports are being done are very narrow and the country will have to broaden its trading field like agro-based industries, mechanical, minerals, sports, medicines and others.

Shah said TDAP also arranged tours of industrial zones in various cities like Lahore, Faisalabad, Multan, Islamabad etc, as well as in five industrial zones of Karachi for foreign delegations and give them more and broad exposure regarding business in Pakistan.

He said that it was the first time in Pakistan history that 100 percent stall capacity has been booked, while 40-50 companies could not get space in the exhibition. "I was told by some traders even by some chambers not to arrange the event due to law and order situation, but I took bold step and proved that Pakistan is not a war-zone," he said.

 

[Neo]

Industrialists allowed to have power plants​

LAHORE (October 29 2008): All Industrial zones in the Punjab province were allowed to have their own power production plants so as enable them to cope with the ongoing energy crisis. Provincial Secretary Industries Tahir Rizvi disclosed this while addressing the Board of Management of Quaid-e-Azam Industrial Estate.

He said that full co-operation would be extended to all the industrialists who wanted to get license from Lesco for having their own plants. The business community is the backbone of the economy and all the genuine problems would be given priority, he said. The present government is working out an economic revival plan that would help the industry and facilitate the business community, which is under tremendous pressure owing to multiple factors.

It is a happy sign that the Quaid-e-Azam Industrial Estate was well on way and for this credit goes o the Board of Management of the Quaid-e-Azam Industrial Estate. Speaking on the occasion, the President of Quaid-e-Azam Industrial Estate Mian Nauman Kabir said the business community is paying high cost of power and gas while the rising interest rate has made the local products uncompetitive in the global market. He also said the industrial estate needs Rs 300 million to start work on Phase-III and expressed hope that the government would release required funds soon.

 

[Neo]

Marble sector likely to miss fiscal exports target by 25 percent​

KARACHI (October 29 2008): The country's marble sector is likely to miss the current fiscal export target of $60 million by at least 25 percent, owing to the rampant electricity load shedding and deteriorating law and order in the country, exporters said on Tuesday. They said that prolonged load shedding, which is frequently being carried out for months, has created negative impact on its exports, hindering its growth.

Talking to Business Recorder Sanaullah Khan, former chairman, All Pakistan Marble Mining Processing Industry and Exporters Association (PMMPIEA) said that the Karachi Electric Supply Corporation (KESC) is carrying out 10 to 12 hours load shedding daily, causing immense financial losses to the sector, which already being suffered by inadequate resources.

He said that electricity tariff has also been increased and termed it as another main factor for the decline of marble exports, saying that the hike in electricity tariff has directly reflected on the cost of marble production, creating immense difficulties to compete international market with high cost products.

The meeting with KESC management to be held on November 1, he said. Highlighting the agenda of a meeting, Khan said that association would urge KESC to give industry status to the sector, which is currently being entertained as commercial consumers.

He said that the association would also stress the need of eradicating illegal electricity connections (Kundaas), causing low voltage. He informed that the government had approved around Rs 4.5 million fund for upgrading electricity transmission infrastructure of the marble sector in last fiscal budget, but he added that no positive measures have yet been taken in this connection by KESC.

He said that industry has potential to achieve exports target fixed for current fiscal year by the government but continued electricity failure hampered its growth and making the target as "unachievable task".

He said the government has completely ignored the sector in its policies, however sector has privately taken some positive measures for its survival. "Marble exporters have no option left but to windup businesses, owing to the government's unfriendly policies". He said marble industry has discovered new venue Middle East for marble export, which is encouraging strength to the industry.

 

[Neo]

PSO maintains Rs 222 billion turnover in first quarter​

KARACHI (October 29 2008): Pakistan State Oil (PSO) despite difficult conditions in the country maintained a turnover of Rs 222 billion in the first quarter maintaining the overall market share of 71.3 percent with a market share of 60.2 percent and 85.2 percent in white and black oil respectively.

This was stated by Kalim Siddiqui, Managing Director, Pakistan State Oil while briefing the media here on Tuesday. He said that the extraordinary external factors including foreign exchange and inventory losses led oil marketing companies and the refineries to report losses in the first quarter of FY09.

He highlighted that the average Opec crude oil price for the FY-08 was $1l4/bbl while the spot on price as of October 23, 2008 is reported to be $60.27/bbl. To further explain the impact of external factors, he presented PSO's Profit and Loss statement without foreign exchange and inventory losses which stated a profit after tax of Rs 3.53 billion.

He further highlighted the key issues facing the largest oil marketing company importing approximately 80 percent of fuels, which includes the circular debt of Rs 72 billion which has led PSO to delay the payment to refineries.

Kalim Siddiqui explained that the circular debt primarily was caused due to non-payment of Hubco, Wapda, Kapco, PIA and the Price Differential Claim (PDC) accumulated with the government. The circular debt has compelled the company to take financial assistance at high interest rates from the banks resulting in payment of over Rs 1 billion as financial cost on borrowing, he added.

He pointed out that the PSO's receivables from Wapda had increased to Rs 17 billion, which are currently Rs 12 billion, from Hubco Rs 34 billion, from Kapco Rs 11 billion and from PIA that amount is Rs 4 billion. On the other hand, PSO's delayed payments to refineries were Rs 66 in September 2008 and currently it has increased to Rs 71 billion.

He mentioned that the government is aware of the liquidity crunch faced by PSO and is taking all possible measures to facilitate the company. He said the media that the government has ensured the payment of PDC at the rate of Rs 600 million/day to pay off the current accumulation of Rs 12 billion in the next few days. On October 21, 2008 the government of Pakistan paid Rs 8.34 billion on account of PDC and another 5 billion on October 27, 2008 to offset dues from power companies.

He underscored the importance of immediate resolution of circular debt to effectively plan the future imports of POL products and continue the supply of fuel to the country. He thanked the media for their support in this difficult time.

 

[fatman17]

Pakistan Oil and Gas Report Q4 2008

market research reports, research reports and industry analysis

© companiesandmarkets.com

2008-10-30 04:55:02 - Pakistan Oil and Gas Report Q4 2008 - a new market research report on market research reports, research reports and industry analysis

The latest Pakistan Oil & Gas Report forecasts that the country will account for just 1.45% of Asia Pacific regional oil demand by 2012, while providing 0.91% of its supply. Asia Pacific regional oil use of 21.40mn b/d in 2001 reached 25.68mn b/d in 2007. It should average 26.32mn b/d in 2008 and then rise to around 28.99mn b/d by 2012. In terms of natural gas, the region in 2007 consumed 409bcm, with demand of 565bcm targeted for 2012, representing the strongest growth globally (34.40% between 2007 and 2012). Production of 336bcm in 2007 should reach 471bcm in 2012, but implies net imports rising from 85bcm per annum in 2007 to 94bcm in 2012. This is in spite of the fact that many Asian gas producers are major exporters. Pakistan’s share of gas consumption in 2007 was 7.32%, while its share of production was 9.17%. By 2012, its share of gas consumption is forecast to be 7.10%, with the country accounting for 8.49% of supply.

In Q208, we estimate that the OPEC basket price averaged just under US$115 per barrel – up around 24% from the Q108 level. The OPEC basket price had exceeded US$127 on the 22nd of May, slipping back towards US$121/bbl later in the month. In June, we assumed an average of around US$120, to deliver our quarterly estimate of US$114.98/bbl. The estimated Q208 average prices for the main marker blends are now US$118.63 for Brent, US$119.61 for WTI and US$115.89/bbl for Russian Urals (Mediterranean delivery). Our projections for 2008 as a whole have been revised upwards from the last quarterly report.

We are now assuming an OPEC basket price average of US$106 per barrel for 2008, compared with the US$81 estimate provided by our last quarterly report. Based on recent price differentials, this implies Brent at US$109.71, WTI averaging US$110.64/bbl and Urals at US$106.88/bbl.

Pakistan’s real GDP growth for 2008 is forecast by BMI at 6.6%, down from 7.0% in 2007. In 2009- 2010, growth is put at 6.7%, followed by 6.8% in 2011-2012. Several state-controlled oil and gas companies are in the throes of privatisation and already work with international oil companies (IOCs) in the upstream segment. We foresee oil and gas liquids production of no more than 78,000b/d by 2012, with the country able to pump an estimated 72,000b/d in 2008. Consumption is forecast to increase by around 3.5% per annum to 2012, implying demand of 420,000b/d by the end of the forecast period. The import requirement would therefore be approximately 342,000b/d by 2012. Gas demand is set to rise from 31bcm in 20076 to 40bcm by 2012.

Between 2007 and 2018, we are forecasting a reduction in Pakistan oil production of 20.3%, with crude volumes falling steadily to 55,000b/d in 2018. Oil consumption between 2007 and 2018 is set to increase by 39.8%, with growth slowing to an assumed 3.0% per annum towards the end of the period and the country using 506,000b/d by 2018. Gas production is expected to rise from around 31bcm in 2007 to a possible 45bcm by 2017/2018 (+46%). With demand growth of 79%, this requires imports rising to 10bcm by the end of the forecast period. Details of the new BMI 10-year forecasts can be found in the Appendix of this report, which provides global, regional and country-specific projections.

Pakistan now ranks fifth, just behind the Philippines, in BMI’s updated Upstream Business Environment rating, reflecting a reasonable resource position, better-than-average output growth outlook and falling state involvement. The country sits just ahead of Thailand and Malaysia, and should be able to keep both at bay over the near term. Pakistan now ranks outright eighth in BMI’s Downstream Business Environment rating, reflecting its significant refinery capacity expansion plans, above-average oil and gas demand growth outlook and low level of retail site intensity. It is ahead of Thailand and just behind Indonesia in the league table.

Mike King
Web: market research reports, research reports and industry analysis

 

[dr.umer]

Wateen and Motorola to Expand WiMAX Network in Pakistan​

30 Oct 2008

Motorola, Inc. (NYSE:MOT) has signed a contract with Wateen to expand Wateen's WiMAX network, enhancing coverage and doubling the capacity of the network which covers a population of 30 million across 22 cities in Pakistan. Wateen's customers will benefit from improved access to wireless broadband service.

Wateen's WiMAX service, launched in 2007, brings customers price and quality benefits through innovative services such as voice calling and WiMAX for residential customers and enterprise-level services which include Data VPN, high speed Internet access, VoIP, conferencing and find me/follow me applications for business customers. By expanding the network, Wateen will extend its service to more subscribers, and continue its dedication and commitment to serving Pakistan with an enriched experience.

Tariq Malik, CEO Wateen said, "Wateen Telecom was the first company in the world to roll out an 802.16e WiMAX network on a nationwide scale. Today's announcement confirms our commitment to WiMAX and continued investment in our network to ensure our customers receive the most advanced services using the latest OFDM-based WiMAX solutions. Working with a global leader such as Motorola, we are revolutionizing broadband communications and enriching the lives of consumers in Pakistan." "Together Motorola and Wateen have pioneered the deployment of WiMAX. We're proud to have created one of the world's largest and most advanced wireless broadband networks and excited to be expanding its reach," said Ali Amer, Vice President Sales, Middle East, Africa and Pakistan, Motorola Home & Networks Mobility. "It is a clear display of Wateen's faith in Motorola, and a demonstration of the strength of our relationship and solutions that we remain Wateen's exclusive supplier of WiMAX equipment and services in Pakistan." Motorola's network expansion for Wateen is already underway and will be fully operational in the fourth quarter of 2008.

Wateen Telecom selected Motorola's WiMAX and IMS core technology to build its next-generation wireless broadband network in 2006. With Motorola's global experience and services expertise, Wateen's WiMAX network was deployed in 17 major cities within a short time span of just nine months. Wateen also selected Motorola's managed services capability which ensures the service provider focus on critical resources, helping to increase operational efficiencies and match the pace of rapidly advancing technologies.

Wateen Telecom uses Motorola wi4 WiMAX technology to bring wireless broadband to Pakistan. A portion of the purchase of this contract is being financed by Motorola About WateenWateen Telecom is the Abu Dhabi Group's latest communication investment in Pakistan, after the successful launch of Warid Telecom which provides mobile GSM services customers in 145 cities across Pakistan. Wateen Telecom is set up to become the leading "Carrier's Carrier" providing services based on quality, reliability and affordability in the communication and media sector. Wateen is committed to bringing next generation services to your doorstep... today. For more information about the company, please visit Wateen Telecom :::

Motorola is known around the world for innovation in communications. The company develops technologies, products and services that make mobile experiences possible. Our portfolio includes communications infrastructure, enterprise mobility solutions, digital set-tops, cable modems, mobile devices and Bluetooth accessories. Motorola is committed to delivering next generation communication solutions to people, businesses and governments. A Fortune 100 company with global presence and impact, Motorola had sales of US $36.6 billion in 2007.

 

[Neo]

'Pakistan has potential to enhance trade with Turkey' ​

ISLAMABAD (October 30 2008): Pakistani business leaders and Industrialists in MUSAID International Trade Fair and International Business Forum in Turkey used this forum to attract the businessmen and investors of more than 60 participating countries to take advantage of attractive investment opportunities in different sectors of Pakistan.

"Our efforts were to make sure that Pakistan could get maximum investment in this critical phase of its history", said Muhammad Ijaz Abbasi, ICCI President after his return from Turkey on Wednesday.

The ICCI President said MÜSIAD is an Independent Industrialists and Businessmen's Association and MÜSIAD International Trade Fairs promise to give the indispensable means of increasing sales, expanding to the promising markets. He said MÜSIAD has the potential to continue to initiate prosperous commercial opportunities for the enterprising business entrepreneurs who are willing to take part in its fairs.

He said many sectors of the economy like machinery, computers, automation, automotive, spare parts and electrical goods, textiles, garments, leather and carpets, construction, furniture and building materials, food, beverages, packaging and service sectors get representation in this trade fair to explore more business opportunities.

Speaking about the opportunities of further enhancing bilateral relations between Pakistan and Turkey, ICCI President said Turkey ranks 3rd in the world glassware production and 6th in the world textiles and garments production while Turkey's production capacity ranges from food industry to hi-tech based products such as F-16 warplanes and electronics.

 

[Neo]

Korea keen to boost bilateral trade with Pakistan​

KARACHI (October 30 2008): Leaders of Korean trade delegation and Vice Chairman KEMA, Kin Hyon has said that Korea is interested to boost two-way trade and want to establish industrial units in joint venture with Pakistan.

Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI) on Wednesday, he said that there is number of areas in which Korea can cooperate with Pakistan and provide technical information Speaking on the occasion, Commercial Counsellor of Pakistan in Korea, Fawad Hasaim Rabbani said that 80 percent goods export to Korea from Pakistan comprises raw material.

He advised business community to export goods after some value addition to fetch more foreign exchange. He said there is good chance to export fish and fish products, vegetables and fruits etc. Referring to rice export to Korea, he said that Korean prefer another brand of rich which is not produced in Pakistan. He said that Korea imports only five percent of its total consumption of rice.

He said that yarn export from Pakistan to Korea also declining due to yarn contamination. However consumption of Pakistani fabric is on rise in Korea. He advised business community to frequently visit Korea to apprise themselves about Korean requirement and try to meet their demand as well as standards to boost export from Pakistan.

He pointed out that during 2007-08 Pakistan exported goods worth 490 million dollars to Korea and imported 650 million dollars which indicated that trade gap between two countries have narrowed down to some extent. President KCCI Anjum Nisar said Korea is an advance country and it can help Pakistan by establishing power generating units in joint ventures.

 

[Neo]

Foreign investors much impressed by Expo Pakistan: TDAP official​

KARACHI (October 30 2008): The Chief Executive, Trade Development Authority of Pakistan (TDAP), Mohibullah Shah, on Wednesday said that Expo Pakistan had impressed foreign investors, as most of the delegates were likely to ink new export contracts with Pakistan shortly.

Talking to Business Recorder on the third day of Expo Pakistan, he said that although the main contracts would be unveiled at the concluding press conference, most of the delegates expressed interest in many fields, including agro-food, pharmaceutical, bio-medical and others.

He said that over 22 delegates, who had been brought by commercial counsellors, and nine delegates from other countries, called on him and showed their interest. He said that a delegate from Argentina assured him to establish a lithotripsy manufacturing plant in collaborating with local manufacturers after doing research and development, and added that this plant would produce hundreds of thousands of machines and bring more investment in Pakistan and job opportunities.

He said these machines are being produced at very high prices at the native country but now these would be produced at cheaper rates. Similarly, the delegates from China and Hong Kong showed interest to import agro-food including dates, mango, oranges, apple etc from Pakistan, while the delegates from Argentina are likely to ink contracts to import rice from Pakistan, especially Basmati rice.

He said that most of country's exports are being done through middle countries, even some time there are three or four companies of different countries involved in exports, which eventually increase the prices of goods. But after developing these new contacts, Pakistan would export its goods directly to targeted countries on cheaper rates that would open new dimensions of exports in the country.

He said that the delegates from France, led by Ms Rene Mardellet, expressed much confidence over Pakistani business and they are mulling to open institution of fashion designing including designing. He said that they would also help in drawing the curriculum regarding textile including designing, merchandising, dyeing, etc.

He said that the delegates who showed their great interest were from Sweden, Los Angeles (USA), Spain, South Africa, France, Malaysia, Romania, Bangladesh, Argentina, Morocco, South Korea,, Hong Kong, Norway and Moscow.

Regarding the impression on law and order situation he said that the delegates were highly satisfied with security arrangements, and added that most of the delegates were freely moving in the industrial areas of the city as well as in the market for shopping.

Meanwhile, M D, Pegasus Consultancy, Asim Siddiqui said that the event would be helpful to attract foreign buyers at large scale and bringing foreign exchange into Pakistan. owever, he added that getting exports from these types of exhibition were year-lasting exercise, but TDAP was reviewing inputs that were claimed by commercial counsellors.

He said that the TDAP had arranged tours for other cities including Lahore, Faisalabad and Sialkot to seek new trading dimensions across the country. He said that this event was a breakthrough in the prevailing uncertain condition and would provide support to the business community.

Regarding tight security arrangements he said it was not a local issue but internationally the countries have made security arrangements as their first priority to avoid any untoward incident, which could defame the country's creditability. He said that Expo Pakistan had proved that Pakistan has best atmosphere for international buyers.

 

[Neo]

Industrial and special export processing zones to be converted into SEZs​

ISLAMABAD (October 30 2008): Industrial Zones and special export processing zones established in different cities of the country would now be converted into Special Economic Zones (SEZs) which would be enclaves for sector specific economic activities.

Sources told Business Recorder on Wednesday that SEZs would be given incentive-laden package to make them more competitive in the international market. The SEZ, which would be an enclave for enterprises operating in well-defined geographic location with certain economic activities which are sector specific are promoted by a set of policy measures generally not applicable to the rest of the country.

In consultation with the Ministry of Industries, the Ministry of Privatisation had moved a summary to ECC on Special Economic Zones framework to make the industries to be sold more attractive for the prospective buyers, which the ECC had approved.

It was proposed in the summary that these zones be given handsome concessions like the incentives being carved for the Special Re-construction Opportunities Zones (ROZs) for encouragement of Zone developers and investors that included corporate income tax holiday of up to 10 years.

The other incentives include: minimum size of the Economic Zones reduced from 500 to 50 acres; the condition of minimum 40 percent foreign equity would not be applicable in these economic zones; and country/company specific provision would be deleted.

Policy framework for the establishment of SEZs would be protected through an Act of Parliament, which is being drafted at the federal government level.

The policy framework for SEZs emphasises development and operational management of SEZs by the public sector or through Public-Private Partnership. It includes governing of all aspects of the zones from planning, development, land allotment and zone management; to defining mechanism for the establishment and administration of SEZs.

The framework also encompasses incentives for promotion of investment; industrial estates, parks and small industrial parks; and reconstruction opportunities Zones (ROZs) in the NWFP and Balochistan with special status as accorded by the United States.

The modalities of the SEZ policy framework include a Board of Approval (BoA) at the federal level. The BoA will be comprised of relevant ministries, business leaders, and provincial governments and will be chaired by the Prime Minister. It would have the authority to grant SEZ status to all new and existing zones. The BoI will work out details of the administrative methods for processing applications for approving SEZs. The BoI will provide secretariat services to the BoA and will cater for all matters of SEZs through creation of SEZ Cell by hiring services of required professionals.

The private sector or public-private partnership zone developers, once approved for SEZ status, shall have authority to develop their master plans, allot land and approve individual investors in compliance with the rules set forth in the SEZ policy frame work.

Zone developers may purchase land privately on ownership or lease land from Federal/Provincial/Local Governments. The minimum size of an SEZ would be 50 acres with lease period of 50 to 100 years. The SEZ cell, BoI would facilitate investors in acquisition of already notified land in co-ordination with concerned government/department.

 

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UAE group keen to invest in Prime Minister's 'House for All' scheme​

ISLAMABAD (October 30 2008): Talon Group of United Arab Emirates (UAE) has shown interest of investment in mega housing projects of the Prime Minister Housing Scheme, "House for All." A delegation of the group held a meeting with Federal Minister for Housing and Works Rehmatullah Kakar here on Wednesday, and expressed the keenness to participate in the upcoming housing scheme in Pakistan.

The delegation, headed by its Chief Executive Kerman Shahchi, exchanged views with the Minister on the modalities, financing and other issues of common interest related to the construction of housing units/flats under the Prime Minister's "Housing for All" programme. Housing Secretary Sami-ul-Haq Khilji, Managing Director of PHA Raja Muhammad Abbas, Chief Engineering Advisor Ali Abid, Director General of Pak. PWD, Ali Akbar Sheikh and other senior officials of the Ministry also attended the meeting.

Rehmatullah Kakar expressed gratitude to the UAE delegation for their interest of participation in the upcoming mega housing schemes in Pakistan. He said that there existed a lot of potential for the local and foreign companies in the construction of one million housing units in the country annually under the Prime Minister's housing programme and the government would provide all out co-operation.

Housing Secretary Sami-ul-Haq Khilji briefed the visiting delegation about the salient features of the scheme which, would be provided to the poor, needy government servants as well as to the general public on affordable cost. He said that all arrangements had been made to kick off the gigantic housing scheme.

 

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UAE sets Nov 17 for urgent Pakistan aid meeting ​

ABU DHABI (updated on: October 30, 2008, 15:26 PST): Potential donors to Pakistan will meet in Abu Dhabi on Nov. 17 to discuss urgent help in a financial crisis that has left the country needing billions of dollars in loans, the UAE foreign minister said on Thursday. 'It is an important conference,'Sheikh Abdullah bin Zayed al-Nahayan said during a joint news briefing with his visiting German counterpart Frank-Walter Steinmeier.

"It will be important for the Friends group to act quickly to shield Pakistan from the worsening impact of the financial crisis," he said through a translator, referring to the "Friends of Pakistan" group launched in New York last month.

Pakistan is facing a balance-of-payments crisis and has just a few weeks to raise billions of dollars in foreign loans needed to meet debt payments and pay for imports.

Steinmeier, whose tour has already taken him to Pakistan and Saudi Arabia, welcomed progress towards new talks on Pakistan, which German diplomatic sources said would take place at the level of senior officials.

Germany and the United Arab Emirates are both members of the "Friends of Pakistan" group. Saudi Arabia confirmed on Tuesday that it would also attend the meeting in Abu Dhabi next month.

Steinmeier earlier this week urged Pakistan to seek the help of the International Monetary Fund to tackle its financial woes and said Germany would be ready to help negotiate a deal.

Seven-month-old government, running Pakistan after more than eight years under former army chief Pervez Musharraf, has been reluctant to go the IMF but has been looking for help from friendly governments.

Donors caught up with their own problems brought on by the global financial crisis apparently prefer to wait for IMF involvement, which would bring discipline by attaching conditions and targets, analysts say.

Pakistan has been in talks with the IMF in Dubai since last week but has yet to decide if it will seek extra IMF aid.

"I assume that by the date of the (Friends of Pakistan) conference the negotiations with the IMF will have been concluded," Steinmeier said. "This assumes that there is agreement on the conditions. We are both confident that this will happen in the next few days."

Steinmeier has insisted that the global market crisis can only be tackled with international cooperation, saying the circle of the Group of Eight had to be expanded on this issue. He has welcomed Gulf states' willingness to get involved.

Asked about British Prime Minister Gordon Brown's call on Gulf oil producers to boost funds to the IMF, Steinmeier said: "We have seen that there is a lot of demand on the IMF. In this context the IMF is reaching the limit of its capacity and we must find possibilities to keep it liquid together. This is the duty of everybody including the Gulf states."

Sheikh Abdullah said Gulf Arab states were willing to make all the necessary efforts to protect the international economy from the effects of the financial crisis.