Pakistan Economy - News & Updates - Archive

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Per capita income falls to $1,071 ​

Thursday, May 21, 2009

ISLAMABAD: Pakistan’s per capita income fell to $1,071 in 2008-09 compared to $1,102 in the previous fiscal year, show official figures, which will be released in the upcoming Economic Survey for 2008-09, but available with The News.

Finance Adviser Shaukat Tarin, when contacted on Wednesday for comments, said depreciation of the rupee against the dollar and decline in real gross domestic product growth caused the drop in per capita income in fiscal year 2008-09. “Pakistan will have to return to growth in order to show improvement in per capita income in the years ahead,” he added.

He said rupee stability could help boost per capita income, but the country required real GDP growth of 5 to 6 per cent per annum for achieving sustained progress on the economic front.

Discussing the factors behind the fall in per capita income, official sources said the real GDP growth touched 2 per cent in accordance with the initial assessment done by the National Accounts Committee (NAC) a few days ago while the rupee fell 30 per cent against the dollar in the current financial year. The rupee dropped from Rs60 a dollar to Rs80 just in a few months in 2008-09.

Population growth was 1.9 per cent per annum while real GDP growth came to around 2 per cent, meaning a negative growth in per capita income in 2008-09.

Per capita income is treated as one of the major indicators suggesting the depth of growth and general well-being of any country.

Per capita income, defined as gross national product at current market price in dollar terms divided by the country’s population, has grown at an average rate of around 13 per cent per annum during the last five years rising from $586 in 2002-03 to $926 in 2006-07 and further to $1,085 in 2007-08, initial estimates show. According to final figures of 2007-08, per capita income increased to $1,102.

Real per capita income in rupee terms increased by 4.7 per cent, on average, in the last five years. Real per capita income grew by 4.2 per cent as compared to 4.8 per cent last year.

 

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Tunisia targets $300m trade with Pakistan ​

Thursday, May 21, 2009

LAHORE: Tunisian Ambassador Mourad Bourehla has said there is a wide scope of cooperation with Pakistan in textile, science and technology, telecommunications, health, education, tourism and agriculture to achieve the target of $300 million in bilateral trade by 2010.

Speaking at the Lahore Chamber of Commerce and Industry on Wednesday, he said keeping in view rapidly changing international economic environment and global economic and financial crisis, Tunisia wanted to diversify and reinforce bilateral cooperation.

He said Tunisia’s modern infrastructure, favourable laws, climate of stability and growth and favourable geographical situation in the heart of Mediterranean region had made it the first country on the southern shore of the Mediterranean sea to sign an association agreement with the EU.

The agreement was designed to enhance Tunisia’s integration into the world market and to make it a hub for investment, production and distribution. He said Pakistani businessmen could utilise the opportunities by initiating joint ventures with their Tunisian counterparts.

 

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Govt declares 10-year tax holiday for Gwadar Export Processing Zone​

ISLAMABAD: The government has decided to provide ten-year tax holidays for Gwadar Export Processing Zone, Federal Minister for Industries and Production announced it during a press conference here on Wednesday.

The cabinet has approved awarding tax holidays for industrial units to be set up in Gwadar. The zone would be established over 46,000 acres areas where industrial units, hotels, warehouses and others would be established.

There would be zero percent sales tax on construction materials and stamp duty will also be exempted. Terming the development of Gwadar Port development as landmark achievement of the present government, he claimed that capacity of the Gwadar port was more than Karachi Port.

It would enhance Pakistan's trade with China, Russian States, Middle East, Afghanistan, Iran and others. He said that trade centres would be established at Gwadar port, which would enhance trade and economic activities in Balochistan that ultimately would help in removing their deprivation.

About fertilizer meeting held today, the minister claimed that the government decided to provide Rs 20.88 billion subsidy on imported and locally manufactured urea fertilizers for Kharif Crops. Among the total Rs 14.38 billion would be provided to local manufacturers of urea fertilizers in the form of subsidy on gas and Rs 6.5 billion subsidy would be provided on imported urea fertilizers. The price of imported urea fertilizer was Rs 1200 per 50 kg bag and the government would provide Rs 500 per bag subsidy.

The minister told reporters that 19.246 million acres area was brought under cultivation for Kharif Crops including cotton, sugarcane, rice, maize and others Three million tonnes urea fertilizers was required for cultivation on this area.

About 2.55 million tonnes urea fertilizers would be produced locally and 0.45 million tonnes would be imported. The government has already imported 164,000 tonnes while tenders have been open for 255,000 tonnes for which letters of credit would be open soon. "We are importing extra commodity in order to avert any possible risk of shortage," he added.

He requested the growers not to make panic and ensured that it was duty of the government to ensure availability of urea fertilizer in the country. The minister claimed that the panic would create black marketing, however, he cleared that retail price of urea fertilizer would be Rs 710 per 50 kg bag.

Answering a question, the minister said the government was taking appropriate measures to stop smuggling of the commodity, as its price at international level was higher as compared with price in Pakistan.

 

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Revised target of 2.5 percent missed: GDP growth recorded at just 2 percent in FY09​

ISLAMABAD: The economy during current fiscal year 2008-09 registered a growth of just 2 percent against the budgetary target of 5.5 percent and downward revised target of 2.5 percent and only agriculture sector posted a positive growth of 4.7 percent against the target of 3.7 percent, according to the revised figures after the National Accounts Committee (NAC) meeting.

The country have been pushed back to decade of nineties with low growth, unemployment, higher inflation and higher interest rate regime leaving all the sectors of economy to suffer, official sources told daily Times on Wednesday. Almost all other indicators were found in red zone due to the world financial crisis, government’s policy to pacify the economy to curtail demand.

According to the officials at Ministry of Finance, Pakistan’s economic performance in 2008-09 must be judged against the policy objectives of the government, international developments and domestic constraints. Faced with tenable balance of payments situation and rapidly declining foreign exchange reserves, the government took decisive actions to restore macroeconomic stability. This entailed curtailing domestic demand through contractionary fiscal and monetary policies and rationalised planned public sector development expenditures. According to the revised figures, commodity producing sectors growth, which was targeted at 4.8 percent, have been recorded at 2 percent only in ongoing fiscal year. Agriculture sector surpassed its target of 3.5 percent and posted a growth of 4.7 percent.

Within the agriculture major crops posted a growth of 7.7 percent against the target of 4.5 percent, minor crops 3.6 percent growth against the target of 2 percent, livestock 3.7 percent growth against the target of 3.2 percent, fishery posted a low growth of 2.3 percent against the target of 3.4 percent, forestry negative 15.7 percent against the target of 1.5 percent growth.

Industry: Industrial sector posted a negative growth of 3.6 percent against the growth target of 6 percent fixed for current fiscal year 2008-09. Mining and quarrying posted a growth of 1.3 percent against the target of 5 percent.

Manufacturing: Manufac-turing sector also missed its growth target of 6.1 percent as its growth has been recorded at negative 3.3 percent for ongoing fiscal year. Within manufacturing sector LSM posted a decline of 7.7 percent against the target of 5.5 percent, small scale and house hold posted a growth of 7.5 percent against the target of 8 percent, other sectors within industry were also under pressure and posted a growth of 4.2 percent against the target of 5.2 percent, construction sector’s growth declined to 10.8 percent against the growth target of 8 percent, electricity, gas and water supply sector also declined by 3.7 percent against the target of 3 percent.

Services: Services sector, which was targeted to growth by 6.1 percent, has recorded a growth of 3.6 percent in ongoing fiscal year 2008-09. Within this sector transport, storage and communication posted a growth of 2.9 percent against the target of 4.5 percent, wholesale and retail trade declined to 3.1 percent against the target of 5.4 percent, finance and insurance also witnessed a negative growth of 1.2 percent against the target of 12 percent, ownership of dwellings stood at 3.5 percent against the same target. Public administration and defence recorded 5 percent against the target of 4 percent.

 

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KESC increases generation capacity by 560MW​

KARACHI: KESC is set to aggressively deliver on its commitment to improve electricity supply for the people of Karachi, by increasing its internal generation capacity with the addition of a 560MW power plant, obtained from GE.

The contract for a 560MW of dual-fired combined cycle plant at Bin Qasim was initially signed in June 2008. Following new management’s takeover at KESC, the price was successfully re-negotiated bringing the original prices down by $15 million. The reduced package price, of $378 million will produce power at $675 perMW. This makes the project one of the most economical combined-cycle projects in Pakistan, compared to projects being constructed using the same technology and projecting prices of $800 or more per MW.

Keeping in mind the need for dependable solutions for Karachi’s electricity grid, KESC has selected the proven technology of GE’s 9E Frame Gas Turbines, manufactured in France, as well as including a Steam Turbine to provide a Combined Cycle Power Plant. M/s Harbin of China has been selected to perform Project Works and Plant Commissioning, with an advance payment of $56.6 million. The project is to be built under a fixed price formula, and will follow World Bank guidelines to ensure environmentally-friendly guidelines are met.

The plant is to be completed in four phases, with the first GT expected to be online within 24 months (May 2011), and the second and third GTs to be commissioned in June and July 2011 respectively. The Steam Turbine will be commissioned by January 2012, thereby achieving total capacity of approximately 500 MW connected to the 220 kV network through GIS.

Naveed Ismail, CEO, KESC has said that, “We are moving as quickly as possible to install additional power generation capacity to meet the critical needs of Karachi’s business and residential sectors. KESC has selected GE technology because they have a proven track record in Pakistan and the technology can be installed very quickly.”

Furthermore, GE also has the manufacturing capacity to meet our needs for succeeds for such a large number of engines in a very short period of time. We are confident that this project will go a long way towards helping KESC improve grid service to support economic growth in the city, which is of vital interest to the entire country.”

The addition of this power project will take KESC a key step closer towards self-reliance in power generation to meet Karachi’s long-term needs. In addition to reducing load-shedding as an immediate priority, KESC’s efforts are aimed at providing the best value for its shareholder and consumer money. KESC’s management is fully committed to change the face of the company through positive results. This current addition is a culmination of an extensive effort to provide power solutions that are most competitive on a per MW basis.

 

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Chinese team invited to invest in energy sector​

ISLAMABAD: The business community on Wednesday invited Chinese businessmen to invest in power, agriculture and automobile sectors of Pakistan. The Chinese delegation led by Ms Kay Zhang of Commerce and Sourcing House Co., Ltd met today with Islamabad Chamber of Commerce and Industry leaders. The delegation was informed that Pakistan offered attractive investment opportunities in different sectors and urged the Chinese investors should take advantage of these prospects.

 

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APCC to consider PC's 3.3 percent growth target on May 22​

ISLAMABAD (May 21 2009): The Planning Commission has proposed an ambitious growth target of 3.3 percent for the next fiscal year, 2009-10, in its annual plan to be considered by the Annual Planning Co-ordination Committee (APCC) scheduled to meet on Friday, it is learnt.

The Annual Plan for next fiscal year will be taken up by the APCC on May 22, and growth target of 3.3 percent would be entirely dependent on the performance of three major sectors--agriculture, manufacturing and services sectors.

The proposed growth has been calculated on the assumption of 3.8 percent growth in agriculture, 1.8 percent in manufacturing, and 3.9 percent growth in services sector. Analysts believe that a slight decline in the growth of these sectors would affect the annual growth for the next fiscal year.

They said that the real challenge for the government would be how to revive the manufacturing sector which has shown negative growth of 7.7 percent during nine months of the current year due to energy crisis, high input cost, and skyrocketing interest rate. This compelled the government to revise the GDP growth downward to 2 percent from 2.5 percent.

As an outcome of the envisaged economic scenario, GDP at current market prices would increase by 10 percent. Agriculture sector has been estimated to grow by 3.8 percent with 3.5 percent growth forecast for major crops, 4 percent for livestock, 2.4 percent for fisheries, and 1 percent for forestry. Rice production has been estimated at 5.9 million tons, sugarcane 56.5 million tons, and cotton 13.36 million bales for the next fiscal year.

The growth in manufacturing sector has been estimated at 1.8 percent for next fiscal year, but this may be possible only after the supply of energy to the industrial sector rises, and incentives are provided for export competitiveness in the budget. Large-scale manufacturing is targeted to grow by 1 percent, which should be viewed against the backdrop of negative growth of 7.7 percent during the ongoing fiscal year. The services sector is likely to grow by 3.9 percent, with wholesale and retail trade growing by 3.3 percent, and finance and insurance by 3 percent.

Total investment in the next fiscal year is expected to be 20 percent of the GDP. National saving is projected to be 14.7 percent, implying that almost 74 percent of investment would be financed through national savings.

This will leave 26 percent of investment to be financed from foreign savings, which would be 5.3 percent of the GDP. Monetary expansion would be in line with the projected GDP growth of 3.3 percent, and CPI inflation is targeted at 9 percent, the CPI of 20 percent for the current year.

The estimated trade deficit for the next fiscal year would be $8.8 billion, with $19.9 billion exports and $28.7 billion imports. Imports are estimated to decline by 0.5 percent to $28.7 billion from $30.2 billion in current fiscal year. The projected exports are close to current year's export target of $19.5 billion.

The current account deficit for next fiscal year has been estimated at $9.5 billion, which is also close to $9.4 billion for the current fiscal year, and remittances at $7 billion for next year are close to the level of remittances target for the current fiscal year.

Total investment has been projected at 19 percent in current financial year against 21.2 percent last year in line with the trends in GDP growth. Total public sector investment is forecast at 4.7 percent of GDP and national savings have been projected at 13.6 percent during the current financial year against 12.9 percent of last year.

 

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EC allocates euro 50 million to Pakistan to solve food crisis​

ISLAMABAD (May 21 2009): European Commission (EC) allocates Euro50 million (roughly Rs 5.4 billion) to Pakistan to help solve the food crisis in the country. The initiative is part of the recently announced aid package at the Friends of Democratic Pakistan meeting in Tokyo last month.

To this effect, the European Commission organised a workshop on food scarcity in the country in collaboration with FAO at the National Agricultural Research Centre here Wednesday. More than 40 participants discussed the existing food shortages and the ways and means to it through the EC's Food Facility initiative. Officials from Pakistan's Ministry of Food and Agriculture, diplomats from the European Union Member States' Missions, researchers from the National Agriculture Researcher Centre, the UN agencies' representatives and partner NGOs attended the event.

 

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Planning Commission likely to propose Rs650bn PSDP​

By A Reporter
Friday, 22 May, 2009 | 05:40 AM PST

ISLAMABAD: The Planning Commission, in the pre-Annual Plan Coordination Committee (APCC) meeting held here on Thursday, decided that the overall size of the PSDP is Rs650 billion, which includes Rs450 billion for federal government and Rs200 billion for provinces’ development budget.

The pre-APCC also asked the provinces to concentrate on the completion of ongoing projects instead of initiating new projects due to financial constraints faced by the country.

The pre-APCC was chaired by the Deputy Chairman Planning Commission Sardar Aseff Ahmed Ali and the representatives of all four provinces, FATA, AJK and Northern Areas attended the meeting.

The meeting on Friday will give final shape to federal and provincial development budgets, which would be recommended to the National Economic Council (NEC) for final approval.

The NEC is scheduled to be held on June 1 to be chaired by the prime minister.

Sources said that during the pre-APCC, experts of the Planning Commission asked the provinces that the ratio of 80:20 between ongoing projects and the new projects may be altered to 90:10 for the next fiscal year.

The experts reviewed the ongoing and new projects proposed by the provinces and asked them to reduce the cost of projects by completing these on time.

The Annual Plan Coordination Committee will also consider the federal PSDP, which, for the current fiscal year was originally set at Rs371 billion but was later revised to Rs219 billion due to financial constraints and economic crunch.

The working papers of APCC said that the federal PSDP for the next fiscal would be Rs253 billion of local component and Rs41 billion worth of foreign portion.

For the federal PSDP the maximum allocation of Rs16.86 billion has been recommended for projects related to ministry of food and agriculture and the ministry of livestock.

While, Rs34.45 billion has been recommended for water related projects and Rs14 billion for power related projects.

The Annual Plan Coordination Committee working papers said that Rs35 billion has been recommended for special programmes and Rs22.5 billion for the higher education commission.

Projects related to Pakistan Atomic Energy Commission amounts to Rs17.14 billion, which include establishing fuel rods for future nuclear plants for electricity generation.

DAWN.COM | Business | Planning Commission likely to propose Rs650bn PSDP

 

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International bids invited for Bhasha dam ​

By Our Staff Reporter
Friday, 22 May, 2009 | 04:34 AM PST |

ISLAMABAD: International bids have been invited for the construction of Bhasha dam, the president’s spokesman said after a meeting convened by President Asif Ali Zardari on Thursday to monitor the progress on Chinese-aided projects.

Talking to newsmen, Farhatulah Babar said the offer contained an incentive clause for early completion of the project.

Three Chinese companies had already expressed interest in the project. He said the feasibility study had been offered to Chinese companies.

The president was informed that the Water and Power Development Authority had invited bids for project consultancy on international competitive bid basis.

A special invitation had been extended to the three Georges Dam Corporation of China to participate in the construction of the dam and other projects.

The Executive Committee of the National Economic Council has already approved the project. It will include a reservoir for 8.1 million acre feet of water. The Ecnec sanctioned $745 million for acquisition of land and payment of compensation to people affected by the project, which will cost $12.6 billion and is likely to be completed in seven years.

The president was also briefed about the projects undertaken in collaboration with China after his visit to Beijing, Babar said.

About progress in other areas, the meeting was informed that Chinese companies had been invited to explore possibility of transfer of hybrid technology.

A Chinese delegation visited Pakistan about two weeks ago and brought hybrid rice seeds for sowing in selected areas on an experiential basis.

Other Chinese companies have offered hybrid seed of cotton and wheat and drip irrigation technology to optimise use of water and save its resources.

The meeting was informed that the Chinese Academy of Agricultural Sciences was imparting technical expertise to Pakistanis and also acting as coordinator with Chinese firms.

An MoU has been signed with the Agricultural Sciences Academy of China. The Chinese ambassador also attended the briefing.

DAWN.COM | Pakistan | International bids invited for Bhasha dam

 

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EU wants to expand trade ties with Pakistan ​

By Our Reporter
Friday, 22 May, 2009 | 04:05 AM PST |

LAHORE: European Commission Ambassador Jan De KOK has said that the European Union was seriously considering on broadening and deepening of its trade relations with Pakistan.

Speaking at the Lahore Chamber of Commerce and Industry on Thursday, the envoy said that for the first time Pakistan-EU Summit was going to take place on June 17, 2009 in Brussels to discuss the issue of trade with Pakistan.

He said that the decision to hold Pakistan-EU summit was taken on Dec 18 last year by the Council of EU Foreign Ministers because before that the trade and trade policy regarding Pakistan was discussed at technocrat and bureaucrat level.

The council had now decided to take up the issue at political level which would definitely go a long way in expanding trade ties between the two sides.

He said that it was a difficult process to win any favour for Pakistan but it was no more a secret that political will at the highest level in Europe was there. There were, however, a number of manufacturing sectors in Europe which did not want any sort of FTA or GSP Plus status for Pakistan under the pretext that Pakistani manufacturers could be more competitive.

He said that EU was among the largest trading partners of Pakistan and presently its 20 per cent of exports were going to Europe and of that about 65 per cent were textile and foot wear.

The European Commission dealt with the trade policy of the European Union and no individual state could speak on the issue of FTA individually. There was, however, a consensus on broadening economic relations with Pakistan in the EU and in EU.

On the issue of assistance to Pakistan, the ambassador said that the EU commitment with Pakistan in terms of assistance was for a longer term. ‘We are very committed and we would continue to extend assistance.’

LCCI President Mian Muzaffar Ali said that European Union should help Pakistan for sustained development through more investment and trade.

Pakistan had always viewed the European Union as a key partner with sound opportunities for trade and investment. The presence of a remarkable number of Pakistanis in Europe gave added strength to the traditional relationship.

The LCCI president reiterated the need for Free Trade Agreement between Pakistan and the European Union saying that by helping Pakistan in trade the European Union would be actually helping itself as well, as it had its own strategic interests in this region.

DAWN.COM | Business | EU wants to expand trade ties with Pakistan

 

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Load-shedding to continue till Dec 2010: minister ​

Friday, May 22, 2009

LAHORE: Federal Minister for Labour, Manpower and Overseas Pakistanis, Syed Khurshid Ahmad Shah, has said people would continue to face the problem of load-shedding till December 2010, though the federal government is putting in its best efforts to overcome the power shortage.

The minister was speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Thursday. He said that to cope with the shortage of electricity, the government was considering all options including wind and coal energy.

Shah said that the government was quite conscious of the problems being faced by the industry due to power shortage, which is a major raw material for a number of industrial sectors.

He also made it clear that the government was well on its way to modify all out-dated industry related laws and in this regard, a consultation process with all stake-holders is very much on. He said that the new laws would be free of any complexities.

He, however, urged the Lahore Chamber to forward its suggestions and proposals for Industrial Relations Act 2010 which is in the formulation process. “We want to facilitate them. We want proper care of their children’s health. We want to educate them and for that purpose, all available resources will be utilised.”

The minister also revealed that his ministry has finalised a proposal to construct 40,000 new houses for the industrial workers of Punjab, which would be given to them on ownership basis.

Speaking on the occasion, LCCI President Mian Muzaffar Ali said that at a time when the all businesses and industries are in crisis, increase in mark-up rates, rupee/dollar disparity, high cost of inputs, labour inspections and policy are adding to the problems.

He said that a peaceful industrial relation system is actually needed at this moment. The LCCI President said that the Lahore Chamber has already sent proposals for the formulation of Labour Policy 2009 to the Ministry of Labour and Manpower wherein it has suggested: the policy should be employment oriented; labour laws and procedures must be very simple; effective utilisation of welfare funds collected from employers, social security and old age contribution through one window operation and management by tripartite boards headed by the employers.

About Industrial inspections, the LCCI president suggested to the minister that the inspections must not be outsourced as this would lead to corruption and financial burden on the government exchequer or the end users.

 

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Macroeconomic Framework for the 2009-10​

Petroleum group to dominate $9.365bn import bill for 2009-10​

ISLAMABAD: Petroleum group would continue to dominate country’s imports with projected oil import bill at $9.365 billion during next fiscal year 2009-10 as compared with latest estimated bill of $9.858 billion in ongoing fiscal year 2008-09. The oil import bill was targeted to be $13.669 billion in ongoing fiscal year 2008-09, however, with the decline in oil price in international market, it is projected to be $9.858 billion in ongoing fiscal.

Total imports of the country are projected to be $28.7 billion in 2009-10 as compared with estimated imports of $30.187 billion by end 2008-09, projecting a decline of $1.487 billion. According to the projections contained in Macroeconomic Framework for the 2009-10, total imports were targeted to be around $37.196 billion in 2008-09, however, due to the measures taken by the government and slowdown in economy, total imports of the country are projected to be at $30.187 billion.

Machinery group’s imports were projected to be around $7.269 billion in ongoing fiscal year but latest estimates suggest that machinery imports are to end up at $5.180 billion for the ongoing fiscal year. It is projected that machinery imports would decline by $259 million and would be around $4.921 billion in 2009-10.

Food group’s imports were projected to be $3.130 billion in ongoing fiscal year and latest estimates suggest that these imports to end up at $3.033 billion by end June. Food group’s imports are now projected to decline to $2.881 billion in 2009-10 against the estimates of $30.033 billion in ongoing fiscal year showing a decline of $2.848 billion.

Transport group’s imports mainly vehicles were projected to be $2.411 billion in the ongoing fiscal year 2008-09, however, additional duties imposed on import of luxury vehicles and reduction in depreciation rate on used cars imported by overseas Pakistanis, such imports are now projected to be $1.936 billion. Transport group’s imports are projected to further decline by $97 million and to be around $1.839 billion in 2009-10.

Textile group’s imports like raw cotton, fiber and yarn were projected to be $868 million, and however, such imports are now projected to be around $1.703 billion with an increase of $$835 million. The imports of this group are projected to be around $1.617 billion in 2009-10.

Agriculture and other chemical imports were targeted to be around $2.659 billion in ongoing fiscal; however, such imports are now projected to be around $2.435 billion by end of this fiscal year. Agriculture and other chemical imports are projected to be around $2.313 billion in 2009-10 with fertilizer imports at $727.3 million. Metal group’s imports were targeted to be $2.224 billion in ongoing fiscal year but latest estimates suggest that such imports to end up at $1.840 billion for this fiscal with iron and steel imports at $1.114 billion. This group is projected to import such metal products at $1.748 billion in next fiscal year 2009-10 with $1.087 billion imports of iron and steel.

Miscellaneous group’s imports were targeted to be $655 million and latest estimates suggest such imports at $549.8 million in ongoing fiscal year 2008-09. Such imports are targeted to be around $522 million in 2009-10. All other imports were targeted to be at $7.616 billion but latest estimates suggest that such imports are to increase to $7.833 billion in 2008-09. These imports are targeted to be around $7.442 billion in next fiscal year 2009-10. sajid chaudhry

 

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US to invest billions in Pakistan: envoy ​

Friday, May 22, 2009

LAHORE: The United States wants to make investment of billions of dollars in Pakistan and will continue to provide relief for the displaced people of Swat.

Speaking at the launch of American Business Forum (ABF) here on Thursday, the US Ambassador to Pakistan, Anne W Patterson, said that the US has already announced $110 million relief funds for the Internally Displaced Persons (IDPs) and would continue its assistance in future as well.

Terming the launch of ABF a positive signal for Pakistan and its economy, the ambassador said American business community is willing to invest in Pakistan. She pointed out that US companies had already invested $750 million in Pakistan during this year and paid some Rs40 billion in the shape of different taxes.

Regarding trade relations between US and Pakistan, Patterson said Pakistan imported $3.6 billion worth of products and exported items worth $2 billion.

She hoped that ABF would be helpful in strengthening the relationship between US companies and Pakistan. She further said that ABF would also work for US foreign direct investment in Pakistan and hoped that it would bring $1.3 billion FDI from the US to Pakistan.

“US wants closer ties with Pakistan and would construct Reconstruction Opportunity Zones (ROZ) soon,” the ambassador said, adding US companies are interested in making investment in energy projects.

Speaking on the occasion, State Minster for Investment, Senator Waqar Ali Khan, said Pakistan is passing through a new era and facing new challenges. To handle the situation bold steps are needed, he said, adding that the most important thing was the implementation on bold steps.

He urged the nation to unite. He said that foreigners were interested in five sectors of Pakistan including energy, oil & gas, food, corporate farming and Information Technology (IT).

Founding President of ABF, Country Manger Pakistan-Afghanistan of Coca-Cola, Rizwan U Khan, in his welcome address, said that the forum was constituted with 35 member US companies operating in Pakistan. He said US bought 25 per cent of the total exports of Pakistan.

 

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Accord for mini-hydropower plants in Chitral ​

Friday, May 22, 2009

ISLAMABAD: United Nations Global Environment Facility (GEF) on Thursday signed a project document with Alternative Energy Development Board (AEDB) and Economic Affairs Division (EAD) for the implementation of a $19.2 million plan for setting up mini-hydel power plants in the Chitral district.

The agreement for the project titled ‘Productive Uses of Renewable Energy in Chitral district (PURE-Chitral)’ was signed by Mikiko Tanaka, Deputy Country Director UNDP, Arif Alauddin, CEO AEDB and Muhammad Asif, Joint Secretary (UN/China) for EAD. Federal Minister of Water and Power Raja Pervez Ashraf witnessed the signing ceremony, a press release stated.

Under the project, 103 micro/mini-hydropower plants (MHPs) would be installed with a total capacity of 15 megawatts.

Ashraf said, “Rural electrification has always been a central objective for power sector reforms in Pakistan and about 130,000 villages will be supplied power by decentralised options, of which mini and micro hydropower (MHP) can provide sufficient capacity to provide power for social and productive uses to initiate rural economic development.”

Tanaka said, “In partnership with AKRSP, PPAF and AEDB, we are hopeful that the planned activities would lead to the promotion of clean and manageable energy resources, thereby demonstrating climate change mitigation through local actions. Furthermore this project fits in the framework of UN joint programme on environment which has targeted interventions on access to sustainable energy sources.”

The objective of the project is to harness the micro/mini-hydel energy resource at selected sites in Chitral district and promote productive use of renewable energy. The project will create new local jobs and sources of income while directly mitigating some 461,465 tons CO2 equivalent in the first seven years and 1,890,868 tons CO2 equivalent over 22 years.