Pakistan Economy - News & Updates - Archive

[Neo]

Thursday, April 12, 2007

Pakistani PC, server market suffered setback in 2006

* 15% GST slowed down PC market growth significantly

By Hamid Waleed

LAHORE: Springboard Research, a leading innovator in the IT Market Research industry, announced on Wednesday that according to its Asia Emerging Countries (AEC) Quarterly Tracker, Pakistan’s PC and server shipments grew just 16.4% in 2006. The lower than expected market performance in 2006 is attributed to the 15% goods and services (GST) imposed in June 2006, resulting in higher prices for IT products.

Although the Pakistani government has implemented IT development measures such as infrastructure building and automation, its policies to support fair market competition have been undermined by the 15% GST.

“The GST tax imposition is being perceived within the IT industry as a serious setback, which will particularly impede hardware market growth,” noted Rehan Ghazi, Springboard Research’s Pakistan-based Market Analyst. “The tax will raise the cost of hardware and the cost of doing business in the IT sector.”

The new tax imposition comes at a time when Pakistan’s IT industry is at a growth stage. Massive investments in IT infrastructure are being planned by the financial services and telecommunication industries, and the new GST could delay their ambitious plans. The fast-growing software export market is also expected take a hit due to rising operational costs.

Other fallout from the recently imposed tax includes an increase in smuggled components into Pakistan. Springboard reports a 10-15% increase in the grey market business and this trend is expected to gain momentum in the future. In addition, the refurbished market is expanding its presence in the country.

Local IT companies will suffer most from Pakistan’s current market conditions, because in addition to the 15% GST, the government has withdrawn the 3.5% sales tax exemption previously given to local vendors.

In 2006, the multinational corporations led the market with HP at 5.4% of total PC shipments, followed by Lenovo and Dell. Leading local brands Inbox and Raffles contributed a combined 4.6% share to total PC shipments.

Springboard’s AEC report data further showed that Pakistan’s portable segment experienced the highest growth in 2006 with a 30.4% increase in business, followed by desktop and X86 Server products. Among the application segments, the large enterprises, especially telecom and banking, invested in IT, receiving 24.3% of total PC shipments in 2006, followed by the government and home sectors. Small- and medium-sized business (SMB) showed less IT spending in 2006, and seem to be waiting for the Pakistani government to abolish or reduce the 15% GST.

In its 2007 market forecast, Springboard Research predicts the market to grow 17.4% - less than expected - due to the increased tax burden and decreasing imports. Nevertheless, Springboard anticipates the government will take some positive steps in promoting healthy competition in the domestic market by abolishing or reducing the tax.

http://www.dailytimes.com.pk/default.asp?page=2007\04\12\story_12-4-2007_pg5_2

 

[Neo]

Thursday, April 12, 2007

Export target for IT services to be attained

ISLAMABAD: Prime Minister Shaukat Aziz has said the $10 billion export target for IT and telecom services will be achieved by developing adequate human capital, improved fiscal regime, necessary infrastructure and an enabling environment for ICT companies.

The IT industry, which was virtually non-existent seven years ago, has grown to be worth $2 billion of which $1 billion is export related.

The prime minister was presiding over a meeting to review the profile and performance of the country’s IT industry.

He said information and communication technology was the wave of the future and Pakistan was well positioned to become a major global player. He said the sector was open to local and foreign companies.

He approved, in principle, the setting up of a Venture Capital Fund in the private sector. The IT ministry should make efforts to attract venture capital in the IT sector and reputed international companies be approached for this purpose, he said.

Mr Aziz said allout efforts were needed to provide IT skills to the youth as Pakistan would need 230,000 trained IT personnel by 2010. Now the sector employed 90,000 professionals.

The prime minister said the IT industry was growing at the rate 50 percent per year which was truly phenomenal and one of the fastest in the world. He said there was a need to promote the vast potential of software export and also to promote domestic software houses, which was huge source of job creation.

He said services and expertise of the Pakistani community living abroad should be leveraged to further expedite the growth of IT in the country. He praised the excellent work done by the ministry to promote IT industry in the country.

Minister for Information Technology Awais Ahmed Leghari informed the meeting that the IT ministry had set up a special fund to provide and enhance IT skills of the youth. He said the ministry had an excellent internship programme under which IT companies were training the youth, expenditure for which was being borne by the ministry.

All IT-related services had also been outsourced, he said.

The managing director of the Pakistan Software Export Board, Yousaf Hussain, in his presentation informed the meeting that the IT sector comprised over 950 companies of which 125 were either ISO certified or CMMI appraised. He said bandwidth consumption in Pakistan had increased from 800 MB in 2003 to 2.5 GB at present.

http://www.dailytimes.com.pk/default.asp?page=2007\04\12\story_12-4-2007_pg5_8

 

[Neo]

Pakistan's Energy Ministry Unveils New E&P Policy To Spur FDI

SINGAPORE -(Dow Jones)- Pakistan's energy ministry unveiled a draft oil and natural gas exploration policy Thursday that includes allowing foreign and domestic exploration and production companies to sell oil and gas at higher prices in the domestic market.

Energy analysts said the approval could pave the way for increased foreign investment in oil and gas exploration, which has languished due to a lack of adequate incentives.

Pakistan is experiencing a severe energy shortage and imports over 80% of its oil.

The draft policy, approved by the cabinet earlier this week, pegs natural gas sold in the domestic market to an oil price band of $10-$45 a barrel. Under the current policy, it is pegged to an oil price band of $10-$36 a barrel.

With crude oil futures traded on the New York Mercantile Exchange currently hovering around $62 a barrel, the current band is considered too low, making it difficult to attract foreign direct investment, energy ministry officials said.

In addition to the revised gas pricing formula, the policy also permits E&P companies to build, own and operate pipeline infrastructure, though it gives third-party access to the pipeline system.

The draft policy is now up for comments from industry groups as well as other government ministries and will be submitted to the Cabinet's Economic Coordination Committee in May.

A committee that will oversee and implement the new policy will also be set up.

http://www.nasdaq.com/aspxcontent/N...CQDJON200704120309DOWJONESDJONLINE000417.htm&

 

[Neo]

London to host Pakistan Investment Conference in September

By ANI
Wednesday April 11, 2007

London, Apr.11 (ANI): London will play host to an international conference on investment in Pakistan in September to highlight the business opportunities in the country.

This was stated on Tuesday by the Lord Mayor of London, John Stuttard, at a debriefing on his recent visits to Pakistan, Kuwait, Qatar and United Arab Emirates held at the Asia House here.

The Lord Mayor paid a six-day visit to Pakistan with a large business delegation from the City's financial district.

Stuttard said the conference, scheduled for September 10 and 11 will be organised by the City of London which will be attended by members of the Pakistani business community and Government leaders.

He noted exceptional economic reforms over the past six years which have led to increase in the size of the middle classes and the flow of foreign investment is helping build infrastructure.

Stuttard said the business friendly policies of the Government is driving up the standards and efficiency and drawing in investment notably in energy, banking, real estate and communications.

The Mayor also spoke about women empowerment in Pakistan and said the female graduates in that country have high education qualities. He said the Pakistanis were keen to acquire British education and professional skills.

Pakistan's Acting High Commissioner to the UK Abdul Basit was also present on the occasion. (ANI)

http://in.news.yahoo.com/070411/139/6eef3.html

 

[Owais]

UAE invest $3.2 billon on 'Flower of Asia' project in Gwadar


QUETTA (updated on: April 12, 2007, 21:37 PST): Balochistan government and UAE entered into an agreement under which HRC Pakistan Ltd and Gwadar Coast Center Ltd will invest 3.2 billion dollars on setting up Oil & Gas service, supply, fabrication and maintenance base in Gwadar city, if was officially announced here on Thursday.

The agreement was signed by representatives of HRC Pakistan, Gwadar Coast Center Ltd (GCC Group) and Balochistan Development Authority at the Governor House. The project to be called "the flower of Asia" will be one of the largest and most important single developments in Pakistan history and will be ready by the end of 2014.It will be joint venture between GRCP, GCC and BDA.

The Chairman HRC Pakistan Sheikh Nahyan Bin Zayed Al-Nahyan and company's associated partners strongly believe in the vision and leadership of Pakistan President Gen. Pervez Musharraf and his continues efforts in making Pakistan and Gawadar into one of the most important port in the World, the announcement said.

The GCC Base will be a one-stop-business-hub for all oil and gas services for the entire region, and will secure new exploration projects in Pakistan. It will be a high-technological and state-of-the art supply base for the entire Gulf region. It will be an ultra-modern, sustainable community that reflects on the international demands for amenities, environment sensitiveness, Health and Security.

The GCC will be a marketplace spread over 1.087 hectares and will hold a 6.5 to 7 kilometer sea front. The project is beautifully architecture within what the GCC Group has defined as the Industrial Village and the Commercial Village. Additional 200 acres will be sought for building wind farms, gasification and desalination plants using reverse osmosis and some 180 acres will be adjacent for special community landscaping.

HRCP Ltd has also joined hands with Green Energy Development PLC to develop and build a Renewable Energy city in the same facility to establish a complete research and manufacturing Industry to produce turn-key wind turbines and solar panel systems made in Pakistan under license by world class suppliers.

Building on the proven and successful role model of Dubai and Abu Dhabi, Gwadar Coast Center will comprise small strategic developments all integrated into the vast Master Plan

The Industrial village will have a pure industrial zoning for Polluting Industry, Dense Industry, Light Industry, a separate residential zone beautifully situated on a proposed 50 acre reclaimed peninsula and a dedicated fabrication zone for a complete and full service on-shore and off-shore oil and gas maintenance, service and supply station built using latest environment sensitive technologies.

In addition HRCP Ltd will develop a special industry technology center for developing a regional educational, training research and development institute. HRCP will also build an advanced University that will encourage and stimulate international companies to promote their special programs and courses to be held in Gawadar ultimately making Pakistan and export nation for highly skilled labor to special industries within Oil and Gas.

The Commercial village will include special zoning for Media village, finance village, medical village Internet village, Knowledge, Service Village and a beautifully landscaped Residential zone with all known community developments, including a PGA-built and certified 18-hole international standard Golf course.

Both the BDA and GCC Group stated "we have had very productive and encouraging meetings and we have achieved the success we came for tenfold, we are very excited about the future. Together we will build a city inside Gawadar".

Through out GCC, HRCP Ltd will develop numerous parks, botanical gardens, ponds and artificial lakes connected by paved walkway and palms creating picturesque and tropical scenery. The development is proposed to facilitate marinas, shopping malls, hotel resorts, business hotels, trade centers, equestrian, amusements etc.

The project will bring housing and accommodation for more than 50,000 people, attract more than 1500 international companies and create thousands of new jobs


brecorder.com

 

[Owais]

ADB to provide financial assistance for construction, energy, other sectors


KARACHI (updated on: April 12, 2007, 21:47 PST): Asian Development Bank (ADB) will provide financial assistance for the construction, infrastructure development, irrigation and energy sectors of Pakistan, a report said here on Thursday.

According to ADB's fact sheet about Pakistan, the multi-lateral institution will continue to support the rehabilitation of barrage system and construction of small water storage dams to improve availability of fresh water in the country.

ADB will also assist Pakistan in improving its national and provincial highways' networks to cut inefficiencies, long waits and travel time.

Similarly, ADB's projects in energy sector will address constraints in the overstressed transmission and distribution systems and rehabilitate and modernise the power infrastructure to meet the growing energy needs.

ADB is also providing support for Karachi to improve the provision of infrastructure and services.

For private sector development, ADB will approve new investments in the areas of copper mining, thermal power and coal power till 2008.

During 2005, ADB had approved 776 million dollars for eight projects including 200 million dollars each for Punjab Resource Management Programme II and Balochistan Devolved Social Services Programme.

Agri business project costing 31 million dollars, a technical assistance loan of 25 million dollars for infrastructure development and Rawalpindi Environment Improvement Project worth 60 million dollars were also included in the approved financing.

It may be noted that Pakistan has received 25.39 billion dollars in total assistance from ADB between 1966 to 2005, of which 10.31 billion dollars were disbursed till end of 2005.

Energy, agriculture and natural resources sectors are the major recipients, constituting 40 per cent share of the total funding from ADB.

Energy sector received 47 loans worth 3.099 billion dollars while agriculture and natural resources secured 50 loans worth 3.008 billion dollars till December 31, 2005.

Other sectors included finance (1.878 billion dollars), multi-sector (1.789 billion dollars), transport and communication (4 1.607 billion dollars), industry and trade (1.29 billion dollars), law, economic management and public policy (1.187 billion dollars), education (501 million dollars), water supply, sanitation and water management (444.5 million dollars) and health, nutrition and social protection (229.4 million dollars).

According to ADB, the success rate of projects in energy, transport and communication sectors was 82 percent followed by agriculture and industry and multi-sector with 60 percent each.


brecorder.com

 

[Owais]

Pakistani overnight rates rise; rupee up vs dollar


KARACHI (updated on: April 12, 2007, 17:58 PST): Pakistan's short-term money rates rose on Thursday following outflows of more than 71 billion rupees from the market, and dealers said rates were likely to hold around current levels in the near-term.

Overnight call rates ended at around 8.0 percent, up from 5.0 percent the previous day.

During the day, there were outflows of 52.1 billion rupees for the settlement of a State Bank of Pakistan Treasury bills auction on Wednesday.

Also during the day, the central bank mopped up 19.5 billion rupees through four-day repo contracts.

"There were inflows of around 59 billion rupees today, and since outflows were more than that, rates went up," said a local bank dealer.

Dealers said rates were likely to hold firm around current levels in the near-term, as no inflows from maturing government securities were due before next week.

In the currency market, the Pakistani rupee gained against the dollar on soft demand for the US currency from importers, and dealers said healthy dollar inflows were likely to keep the local unit stable in coming days.

The rupee closed at 60.72/74 to the dollar, compared with 60.81/83 on Wednesday.

"The rupee was under slight downward pressure in the last few days because of higher dollar demand," said a dealer.

"But since dollar inflows are pretty healthy, the rupee is likely to hold steady in weeks ahead."

brecorder.com

 

[Owais]

Fiscal Year 2008 PSDP allocation may go up by 17 percent

ISLAMABAD (April 12 2007): The size of the Public Sector Development Programme (PSDP) for federal programmes in the next fiscal year is expected to be increased by 12 to 17 percent and could be close to Rs 315 billion compared to Rs 270 billion in the current fiscal year, sources told Business Recorder on Wednesday.

Sources, however, said that actual size of the PSDP for 2007-08 would be proposed to the Annual Plan Co-ordination Committee (APCC) after the mid-year review of the PSDP of 2006-07, which is scheduled to begin from April 16.

The Planning and Development (P&D) Division would be in a better position to propose the PSDP allocation in the next budget after evaluating the exact position of the PSDP spending in the first nine months of the current fiscal year. In the first six months of the current fiscal year, the PSDP spending was Rs 99 billion, which is not up to the mark, they said. Sources said the actual funding available for federal projects in the current fiscal is Rs 250 billion, as Rs 20 billion has been estimated to be consumed as operational shortfall.

According to the sources, the ministries have increased their demands for development projects to be taken up under the PSDP 2007-08. The initial demand of the ministry of water and power, including Wapda is Rs 100 billion for the development projects in the next fiscal year. If this demand is accepted as it is, the government will be required to increase water and power allocations by around 109 percent as the allocation for the ministry in the current fiscal year is Rs 47.7 billion, they added.

The housing and works division is seeking an amount of Rs 28 billion in the PSDP 2007-08, which is many times higher than the current allocation of Rs 1.3 billion. The ministry of food, agriculture and livestock (Minfal) is also seeking an allocation of a little over Rs 20 billion in the next fiscal year against this fiscal year allocation of Rs 11.8 billion, the sources said.

The communication division has also enhanced its demand by more than 100 percent from the current fiscal year allocation of Rs 25.5 billion. Generally, according to the sources, the demands of the ministries for PSDP allocation are not accepted in toto. The P&D always cut their demands in accordance with the availability of funds, they added.

Sources said after the mid-year review the P&D would know the exact position to propose the actual size of the PSDP as there could be some unspent money under the current year development programme.
http://brecorder.com/index.php?id=549564&currPageNo=1&query=&search=&term=&supDate=

 

[Owais]

'US providing $600 million grants yearly since 2005'

ISLAMABAD (April 12 2007): National Assembly Standing Committee on Economic Affairs Division was told that in addition to loans, the USA was providing grants to the tune of $600 million each year since 2005. The secretary Economic Affairs Division informed the committee, which met in the Parliament House here on Wednesday that UK's share in this was 100 million pounds sterling each year.

It was also informed that Pakistan is paying interest at the rate of 7.125 percent. Secretary EAD added that Pakistan's current rating in the financial sector was B. The committee constituted a sub-committee to examine the loans for the projects of earthquake, Rawalpindi environmental improvement and Pakistan Railways

http://brecorder.com/index.php?id=549566&currPageNo=1&query=&search=&term=&supDate=

 

[Owais]

PPL may ink oil exploration agreement with Australian firm
KARACHI: Pakistan Petroleum Ltd. (PPL) and Australian company may reach to an agreement next month for oil exploration in Yemen.

Chairman PPL Munsif Raza talking to Geo News here said that PPL talks with the Australian company were in final stage and a formal agreement can be reached in the next month.

Pakistan Petroleum Ltd. in the annual company report had indicated that talks were underway with Australian company OMZ for oil exploration at Block-29 in Yemen.

Yemen oil exploration project would significantly affect the PPL revenues, analysts said.
http://geo.tv/geonews/details.asp?id=4641&param=3

 

[Neo]

China, Pakistan team up on energy

A new China-financed port on Pakistan's coast ups the ante in the new 'Great Game' for energy resources in the Middle East and Central Asia.

By David Montero

ISLAMABAD, Pakistan If China is to become the economic powerhouse it envisions, the road to its new future could run, literally, through Pakistan.

Or so the two nations hope. Last month, they inaugurated Gwadar Port in Pakistan's Balochistan Province, the first step in an elaborate "energy corridor" that will one day ship Persian Gulf oil from Gwadar overland through Pakistan to China. China bankrolled the $200 million port and plans to put billions more into railways, roads, and pipelines linking Gwadar to China. Pakistan hopes it will generate $60 billion a year in transit fees in 20 years' time.

The deal could point to new fortunes on the horizon. But many observers wonder what price the two nations will pay for such inextricable energy ties.

Gwadar shines a spotlight on a little-studied dimension of the global showdown for the world's depleting oil. Pakistan, with Chinese money, hopes to reinvent itself as one of the region's largest energy players  but it could also become a victim of the new Great Game, some observers say, crushed in the squeeze between the American and Chinese race for influence in volatile, lucrative Central Asia.

As China positions itself as Pakistan's chief patron, that could tilt Pakistan's center of political gravity, observers add, outweighing US influence dollar for dollar  and without the strings of human rights, democracy, and counterterrorism attached.

"The Americans come with a great deal of ideological baggage. There's none of that with the Chinese," says Richard Russell, a professor of national security affairs at the National Defense University in Washington. "[Pakistan's] interactions with the Chinese are not nearly as radioactive as with the US."

Analysts have long fretted over a possible collision course between the US and China over energy. China is now the world's second-largest consumer of oil after the US. Its consumption is expected to double by 2025, with 70 percent coming from the Middle East. Both giants are competing for finite supplies.

"I think most security experts are looking at this very closely because this is the closest access point China has to the Persian Gulf," says Gal Luft, executive director of the Institute for the Analysis of Global Security in Washington. "I don't know that this is something the US particularly likes."

Pakistan could be crucial to China's bid for regional influence. Transporting oil is currently a long, expensive, and dangerous process for Beijing, traversing some of the most pirated seas in the world. For that reason, China is rapidly diversifying its sources, cutting billion-dollar deals from Sudan to Iran and scoping out alternative transport routes through Burma (Myanmar), Thailand, and Bangladesh.

Pakistan is likely to be among the most important routes.

Sitting at the mouth of the Persian Gulf, the Gwadar Port, which becomes fully operational next year, will provide an overland energy corridor connecting the Middle East to Xinjiang, China's future energy base. That will cut transport by 12,000 miles, shaving a month off the journey's time and 25 percent off the fees. Washington speculates that Gwadar could also be part of China's push to protect its growing energy system with a robust Navy.

For Pakistan, Gwadar is a chance to refashion itself a global energy player  a dream in the making for several decades. The potential is rich, given its prize location near the Gulf, at the feet of the energy-rich Central Asian states, and in the shadow of South and Southeast Asia, which houses a third of the world's population and where energy demands are expected to soar.

Given the energy game's high stakes, some wonder if Gwadar will set off alarm bells in Washington. Last April, while hosting the China-Pakistan Energy Forum in Pakistan, President Pervez Musharraf was asked as much by a visiting delegate. But to a roar of applause, he quickly deflected the question: "I do not care about pressure from major powers. If Pakistan suffers pressure from certain major powers, I believe China will come forward to help us apply pressure on the other side."

Still, the opening of Gwadar is indicative of how China's largesse in Pakistan is coming into open competition with the US  and how that could alter the region's political landscape.

China's investment in Pakistan stands at more than $4 billion, with at least 114 projects under way, according to 2004 figures publicized by Pakistani Prime Minister Shaukat Aziz. That's analogous to the more than $6 billion Washington has given Pakistan since 9/11, although Uncle Sam's money is earmarked for counterterrorism, not energy.

Last March, China seemed to one-up the US. It announced that it would invest another $12 billion in Pakistan. There was no mention of human rights, democracy, or terrorism. The Democrat-led Congress, meanwhile, is threatening to pull funds if Mr. Musharraf doesn't deliver more.

The contrast in policy objectives is telling, analysts say. The more money China dishes out, the more Pakistan is likely to gravitate toward Beijing as a countervail to US influence, given that Islamabad is increasingly pummeled to do more in the war on terrorism.

"[It's] a no-brainer," says Mr. Russell. "[Pakistan's] winning ticket over the long run is the Chinese."

It's a drift that Washington will certainly monitor, but ultimately may not mind, Russell adds. "India is going to play a greater role in democracy in the region and the Middle East," he says. "The US has more vested interests in India than Pakistan."

http://abcnews.go.com/International/...ory?id=3036249

 

[Neo]

April 13, 2007
Pakistan GDP seen growing at 7.5 per cent

KARACHI, April 12: Pakistan economic growth could expand by more than what the government estimates and it could be 7.5 per cent, Merrill Lynch said in a report released on Thursday.

The report did not consider the recent difficult political situation as hinder for the economic growth and expected that the GDP growth to sustain in 2007 and 2008 at 7.0-7.5pc and 6.8pc, respectively.

This will happen owing to robust consumption growth, supported by higher remittances from workers (up 21pc) and foreign investments (up 147pc), it said.

The report said that the investors to remain upbeat in the coming months, backed by withdrawal of expected monetary aggression by State Bank of Pakistan, expected concessions to the corporate sector in the next budget and the government’s decision to reduce its public sector holding through GDR.

The Merrill Lynch’s expectation of GDP growth was more than the State Bank estimates which put it in the range of 6.6 to 7.2 per cent while the government expects 7pc growth.

However, the report said that the likelihood of hitting the upper limit depends on the performance of livestock farming, which comprises approximately 50pc of the agriculture sector.

“Prospects of agriculture growth recovery appear bright on account of the timely rains, sufficient water reservoirs, availability of subsidised agriculture inputs, and higher agriculture commodities support prices,” said the report adding that countrywide rains are likely to boost the output in livestock farming.

“Pakistan’s politics has been in the headlines of international press and we think issues have been exaggerated,” said the report, adding that President Musharraf will remain firmly at the helm of what is the best privatisation and deregulation story in Asia.

The political turmoil seen in the last few months has been unable to hamper investments in the country, as reflected in foreign flows. Foreign inflows surged 147pc to $4.6bn during July-Feb FY07 and are expected to expand further to $6bn (or 4pc of GDP) by the end of this fiscal.

“Despite adversities in domestic politics, foreign private investments have risen by 147pc and continue to be a dominant feature over the last three months. This reflects investors’ confidence on Pakistan’s future economic growth,” said Merrill Lynch.

The report expects that the fiscal deficit to be contained at 4.5pc and current account deficit at 4.8pc of GDP on account of unexpected slowdown in exports.Rising foreign investments should continue to correct macro imbalances and help sustain economic growth, however, rising foreign inflows will continue to pose a challenge for SBP.

The report said that the rupee was overvalued by two per cent against the US dollar.

“In trade weighted index rupee is overvalued by 2pc. We maintain our rupee verses US$ exchange rate forecast of Rs62.20 by June 30, 2007” said the report.

The report said that the robust foreign exchange flows in the past few months have protected exchange rate from downward revision.

http://www.dawn.com/2007/04/13/ebr2.htm

 

[Neo]

KSE breaches 11,900 barrier with modest gain

KARACHI: The positive outlook of Merrill Lynch about the Pakistani economy amid likely increase in oil and gas price at the domestic market thrilled brokers to breach through the romantic level of 11,900 points at Karachi bourse.

KSE 100-share price index managed to post another modest increase of 10.96 points on sixth consecutive bull-run session and closed at 11,905.92 in an extremely volatile session on Thursday.

“Despite the fact that shares’ prices have reached the burning levels on across the board, market players showed their courage and extended their positions in fundamentally strong stocks. Therefore, 100-index resisted hard and succeed to cross another barrier of 11,900 points at KSE, a leading analyst said.

The junior 30-index also registered another fresh surge of 9.61 points and closed at 14,830.06.

Analysts observed that Merrill Lynch forecasting of witnessing 7.5 per cent growth rate in the Pakistan’s economy by the end of ongoing fiscal year 2006-07 created another small room for bulls to keep their journey continue to north.

Analysts noted that Merrill Lynch forecast was higher than the government of Pakistan’s claims of registering seven per cent growth in its economy this fiscal year was surprising for them, they added.

Moreover, the news of allowing local and foreign exploration and production companies to sell oil and gas at higher prices in the domestic market strengthened positive sentiment for the relevant scrips at KSE, they further said.

Equity market, therefore, maintained its recent times’ tradition of opening on a positive note. It commenced the day business with extended gains beyond 11,900 points level.

Though market maintained in green throughout the day except closing hour, however, indices witnessed sharp ups and downs during the session.

By mid of the session, it hit intra-day high of 11,964.08 points, recoding the day maximum gain of 69.12 points in the 100-index from pre-opening level of 11,894.96 points.

Closing hours witnessed shares’ trading two sides of the fence, as index first shed 87.84 points from the peak level to 11,876.24 points intra-day low. And then recovered intra-day losses to close session in positive column with modest gains.

Session started with a day earlier bullish trends, as buying was seen in almost all the sectors at KSE. Later on, selling of stocks near their fair values and buying on dips kept market players active throughout the day.

Small and medium size banks remained the day volume leaders in green while majority of the cement scrips closed in negative column on account of profit booking.

On the other hand, NBP, PPL and PTCL, three most speculative stocks, also closed in red region following profiteers performed for the sake of short-term gains on price differentials.

An analyst observed institutional and foreign buying in some of the fundamentally strong and potential stocks (especially banking) at the local bourse. He argued that balances in SCRA (Special Convertible Rupee Account) registered an increase of US$7.5 million in a single day on Thursday.

The SCRA balances stand at $585.539 million to-date from $578.012 million a day earlier, according to SBP website.

He maintained that Friday twin-trading sessions might play a role of reducing their (investors) high holdings due to overbought stocks market where hearing of “non-functional” Chief Justice case might substantiate the deceptive role of bears as well.

Ready market failed to generate as good turnover as it were a day earlier at 310.776 million shares. Turnover reduced to 297.829 million shares on board.

Modest buying infused more Rs16 billion in the overall market capitalisation that stood at Rs3.252 trillion.

It was somehow a balance market, as 158 companies’ stocks closed in the positive column against 171 stocks concluded in negative column. Therefore, the value of 39 scrips closed pegged with total 368 active counters on board.

Highest volumes were witnessed in Bank of Punjab at 34.515 million closing at Rs96.30 with a gain of Rs2.20 (2.34 per cent), followed by Lucky Cement at 25.159 million closing at Rs96.85 with a gain of Rs1.25 (1.31 per cent), Askari Bank at 21.866 million closing at Rs87.20 with a gain of Rs1.50 (1.75 per cent), Bank Al-Falah at 18.295 million closing at Rs48.40 with a gain of 60 paisa (1.26 per cent) and DG Khan Cement at 17.296 million closing at Rs94.85 with a decline of Rs1.70 (1.76 per cent).

http://www.thenews.com.pk/daily_detail.asp?id=50851

 

[Neo]

Friday, April 13, 2007

Pakistan has potential to solve energy problems: USAID

ISLAMABAD: Pakistan has many trained energy professionals and significant financial resources to develop its energy sector, according to United States Agency for International Development (USAID) Senior Energy Adviser, Gordon W. Weynand.

Gordon W. Weynand, who recently visited Pakistan to study prospects for further USAID support for the country’s energy sector, expressed his satisfaction over the energy prospects of Pakistan.

“One of my strongest impressions from Pakistan is that although there are many complex energy challenges, the people in the government of Pakistan seem to have strong potential to solve those problems and a ready willingness to try and use new approaches,” he said at the conclusion of his visit, says a statement of USAID.

During his two-week stay, Weynand visited Lahore, Karachi, Sialkot and Islamabad along with USAID Pakistan’s Economic Growth Team.

“USAID is exploring the possibility of including energy sector development in its future economic growth strategy,” said Amy Meyer, the Director for USAID Pakistan’s Economic Growth Office.

“USAID is particularly interested in exploring this area where government and private sector actors are willing to partner with USAID in financing this assistance.”

Since its start in 2004, USAID Pakistan’s Economic Growth program- mainly focusing on business development initiatives, financial services, and agriculture and science & technology development-has also included interventions in the country’s energy sector.

The US-Pakistan Science and Technology Partnership Program is funding a project on “Improving the Lifestyle of Villagers in Remote Areas of Federal Administered Tribal Areas of Pakistan Using Renewable Energy” with the aim to provide solar water pumping capabilities for five villages in the Federally Administered Tribal Areas (FATA) of northwestern Pakistan.

These USAID efforts in the energy sector also include the South Asia Regional Initiative for Energy (SARI/Energy), an eight-country program promoting energy security across Afghanistan, Pakistan, India, Nepal, Bhutan, Bangladesh, Sri Lanka and the Maldives.

SARI/Energy is completing both wind and solar maps of Pakistan and has also assisted Pakistan in the development of a strategic and business operating plan for the South Asian Association for Regional Cooperation (SAARC) Energy Center (SENTER) that was set up in Islamabad in December 2006.

http://www.dailytimes.com.pk/default.asp?page=2007\04\13\story_13-4-2007_pg5_3

 

[Neo]

Rs one trillion revenue target likely for 2007-08

ISLAMABAD (April 14 2007): Despite decline in customs duty and sales tax collection at the import stage, the Central Board of Revenue (CBR) is committed to meeting the estimated revenue collection target of around Rs 1 trillion for the next financial year.

Sources told Business Recorder on Thursday the projected target of Rs 1 trillion was discussed threadbare during the last board-in-council meeting chaired by CBR Chairman M. Abdullah Yusuf.

The issue came to the limelight when CBR Member Fiscal Research and Statistics (FRS) informed the council about the negative growth in customs duty and sales tax collected at the import stage during March 2007. The FRS member had highlighted the facts and figures about the tax-wise performance of collection in March.

Responding positively to the presentation, tax authorities told CBR members that the board has committed with the President General Pervez Musharraf to collecting Rs 1 trillion in fiscal 2007-08. Thus, all CBR Wings should seriously start preparing policy proposals to increase revenue collection and broaden the tax-base. The CBR will not rollback from this promise made with the President and the necessary plan must be chalked out to collect Rs 1 trillion in fiscal 2007-08 for raising tax-GDP ratio.

Sources quoted the CBR chief as saying during board-in-council meeting that the board would not only surpass the set target of Rs 835 billion for fiscal 2006-07, but would also devise a plan to cross Rs 1 trillion in next fiscal. The President had approved the CBR 10-year taxation plan, "Vision-2017" taking total revenue collection to Rs 4.3 trillion and tax-GDP ratio to (14.5-15 percent) by 2016-17.

The "Vision-2017" is a 10-year programme for raising revenue collection through broadening the tax-base and raising tax-GDP ratio. The vision envisages 10-year revenue projections starting from fiscal 2007-08 to 2016-17 and strategy to meet these targets. Under the programme, the CBR will achieve 5 percent growth in Tax-GDP ratio by tapping potential sectors in the next 10 years.

http://www.brecorder.com/index.php?id=550212&currPageNo=1&query=&search=&term=&supDate=