Pakistan Economy - News & Updates

[Omar1984]

‘Trade policy to help deepen trade with Malaysia’ ​

ISLAMABAD: High Commissioner of Pakistan in Malaysia, Lt General (Retd) Tahir Mahmud Qazi said on Thursday that the new trade policy encompasses a provision of insurance cover for visiting buyers including Malaysian and would help restore investor confidence. Commenting on the salient features of the Trade Policy 2009-12 announced by Minister of Commerce Makhdoom Amin Fahim, he said it aims to set the country on the path of sustainable high economic growth through exports. staff report

 

[Omar1984]

Draft of 10-year investment policy finalised ​

ISLAMABAD: The initial draft of the first ever 10-year investment policy and investment promotion strategy has been finalised with major objectives like poverty reduction through job creation and rapid industrial development of the country.
The policy would protect local as well as international investors against adverse policy changes as well as political victimisation in future governments and ensure continuity of economic policies in the country.
The policy aims at attracting over $10 billion to $15 billion foreign direct investment annually in the country by providing legal, physical infrastructure as well as more favorable incentives regime, official sources told Daily Times on Thursday.
This draft would be made public for feedback during a media briefing at Ministry of Investment where Federal Minister for Investment, Waqar Ahmed Khan, would highlight the salient features of the policy and strategy, sources added.
In order to ensure ownership of the policy by the all the federal ministries and provinces, the input from all the public sector stakeholders have already been obtained and incorporated in the draft.
On the directions of the minister of investment, it has been decided to release the draft of the policy for private sector input before it is sent for approval.
The act of parliament would require the future government to honor in letter and spirit the investment agreements as well as Memorandum of Understandings signed during the successive governments. Legislation, first of its kind in the world, aims at protecting the investors from sporadic changes in economic policy in subsequent governments. Although the constitution of the country provides protection to the investors under investment agreements signed with the present day government against unfavorable treatment in the future governments. However, this kind of protection is mainly available to the foreign investors only and local investors don’t have any such protection. Changes in the government leads to a random change in economic policies, which puts the investors in an uncertain position and the revenue streams are dry either temporarily or permanently.
The investors are left with no choice to create political linkages in present political set up as well as future to protect their investment. For this purpose they are forced to tread the path of kickbacks and commissions—transaction costs.
For finalisation of draft of the investment promotion and protection act, changes or amendments in many existing laws would be needed. While citing example of Investment Act 1976, sources that this law is totally outdated and doesn’t meet the present day needs. Similarly, Economic Reforms Act, Land Laws, Securities and Exchange Commission of Pakistan’s law, Tax Laws and other number of laws would be required to be amended so that aim of protection and promotion of investment in Pakistan is achieved. The new law would provide appeals in higher courts instead of lower courts for the speedy settlement of investment disputes between the parties in this regard, first stage of appeal is proposed to be high courts against the existing practices, he added. In this regard the ministry would also approach Supreme Court of Pakistan for seeking proper advice and guidance.
Other proposed initiatives like establishment of Special Economic Zones for attracting investment in the country, investors making investment in SEZs would be given income tax exemption for 10 years and zone developers would also enjoy same facility. There would be no restriction on industrial units set up in SEZs to sell within the country or export to any country their production. Industrial units located in SEZs would be enjoying true zero rating for their imports and the imports of raw materials and all capital goods would be exempted from general sales tax, federal excise duty, withholding tax and customs duty. A high powered SEZ Board would be constituted with Prime Minister as its chairman and all four chief ministers and Prime Minister AJ&K, federal ministers from all economic ministries, and all important national and international chambers would also be given representation in the said board.

 

[Omar1984]

Rs 5 million allocated for ROZs in FATA ADP ​

ISLAMABAD: The Federally Administered Tribal Areas (FATA), in its annual programme 2009-10, has earmarked a token money of Rs 5 million for activities related to Reconstruction Opportunity Zone (ROZs), sources told Daily Times here on Thursday.
Total allocations for these activities were Rs 150 million, for which the FATA Annual Development Program (FADP) 2009-10 allocated Rs 5 million for the current year.
A ROZ would have duty-free access for certain specified textile and apparel products, as well as non-textile products to the US market up to September 30, 2024 sources claimed.
The ROZ’s was actually proposed by the former US President George Bush during his visit to Islamabad in 2006 and the House of Representatives had approved the initiative and the legislation was now awaiting approval from the Senate.
The sources claimed that the government officials and industrialists were of the view that the ROZs issue was highly politicized and its future depended on security situation in the region (FATA). The ROZs legislation after passage from the House, now awaited action by the Senate Foreign Relations Committee before it could be approved by the Senate and enacted by the President.
The scheme was initiated for both Pakistan and Afghanistan and their respective governments have to fulfill a number of conditionalities which included labour laws’ and strict enforcement apart from ensuring peace and security in the targeted areas.
The governments, as per the legislation, will be required to establish a labour monitoring programme in the ROZ, designate a labour official responsible for the monitoring of the programme and to appoint textile or apparel producers to participate in the labour monitoring programme.
Advisor to Prime Minister on Finance, Shaukat Tarin in his visit to US urged the Washington to quickly approve legislation aimed at creating jobs and fighting extremism in Pakistan and Afghanistan. Sources claimed that the objective behind the plan was to create economic opportunities in the tribal areas and woo the tribesmen, who might have loyalties with the Taliban.
The FADP for 2009-10 included 44 schemes in different fields, allocating Rs1.150 billion which included construction of small dams/power, minerals, skill development, research and development, industries, special initiatives consists of physical planning and housing, tourism development and SME financing. During the ongoing fiscal year, the FADP allocated Rs 500 million for 13 small dams/power projects although the total cost of these projects was Rs 3.901 billion. Rs 340 million were allocated for 13 mineral related projects, while total cost of these projects were Rs 1.362 billion. For ‘Skill Development’ the FADP earmarked Rs 125 million for 4 developmental schemes while total cost of these projects was Rs 644 million.
There were four schemes related to Research and Development, the FADP allocated Rs 112 million to it while total cost of these projects was Rs 231.864 million. For Industrial development, the FADP earmarked Rs 29 million for five developmental schemes while total cost of these projects was Rs 260.200 million.
Under Special Initiatives, the FADP allocates Rs 44 million for five developmental projects related to Physical Planning and Housing, Tourism Development, and SME Financing for the year 2009-10 whereas the total cost of these five projects was Rs 393.696 million.

 

[Omar1984]

UN chief calls Benazir Income Support Programme model for other countries ​

UNITED NATIONS, July 31 (APP): Secretary-General Ban Ki-moon on Thursday praised the Benazir Income Support Programme (BISP), saying it was oriented along the lines of his vision of helping the world’s most vulnerable people. The secretary-general made these remarks during a meeting with Chairperson of BISP Farzana Raja at UN Headquarters in New York when she briefed him on the progress resulting from the eight-months-old programme, which is aimed at empowering women and reducing poverty.
Ms. Raja told Pakistani journalists after the 30-minute meeting that the Secretary-General took note of the fact that BISP is based on the Millennium Development Goals (MDGs), the globally agreed set of social and economic targets that are supposed to be realized by 2015.

She said that Ban proposed that Pakistan share this “model programme” with other countries, especially those in South Asia. “I congratulate the President (Asif Ali Zardari) and you for helping the most vulnerable people of your country,” Ban told the Chairperson.

“This programme is good for your country, good for your people and should be shared with other countries.” Through sheer hard work, she said, programme is already extending financial help to 2.2 million deserving families against the target of 3.5 million in which the household woman receives Rs. 1,000 per month.

The idea, she added, was to bring the women into the mainstream. Besides cash help, the programme caries other benefits like health and accident insurances as well as vocational training so that the recipients ultimately become self-sufficient.

Farzana Raja said she also told the secretary-general that the programme was non-partisan designed to help the most deserving Pakistanis. “This is not a party specific programme, it is for the people of Pakistan, because of its transparency, the entire world, donor agencies are cooperating and are sending their offers to us,” she said.

Ms. Raja said a poverty census was being carried out across the country with the help of the World Bank to identify more deserving households so that they could benefit from the programme. In addition, She said the BISP was also helping the families of the victims of bomb blasts and those of the earthquakes as well as the displaced persons from the Swat region.

During the meeting, Ms. Raja also conveyed messages of greetings from President Zardari and Prime Minister Yousaf Raza Gilani to the secretary-general who warmly reciprocated their sentiments. She also said she invited Ban on behalf of the Government of Pakistan and he accepted the invitation.

Farzana Raja also paid a courtesy call on the President of the UN General Assembly, Miguel D’Escoto Brokmann. Earlier, she conferred with Ajay Chibber, Assistant Secretary-Generl and Regional Director at the United Nations Development Programme (UNDP).

 

[Omar1984]

Pakistan woos global, Canadian, companies to invest in oil & gas sector
​

WASHINGTON, Jul 31 (APP): Pakistan urged the Canadian investors on Thursday to take advantage of its liberal policy package for the oil and gas sector which is fully deregulated and provides a level -playing field and tremendsous business opportuntiies for private and public companies. Inaugurating a two-day ‘Pakistan Exploration Promotion Conference 2009’, in Calgary, Alberta, Dr. Asim Hussain, Advisor to the Prime Minister on Petroleum and Natural Resources, said the country offers attractive oil and gas investment opportunities with liberal terms and a competitive fiscal regime.
Representatives of major oil and gas companies based in Calgary including Shell Canada, EnCana, SNC-Lavalin, Jura Energy etc participated in the conference, a news release said Thursday.

Similar conferences were held in London on July 23rd and 24th, and in Houston, US on July 27 and 28.

Dr Hussain told the businessemen that Islamabad’s new petroleum exploration and production policy 2009 provides opportunities for all investors for a friendly, profitable and competitive environment in the oil and gas industry. He also stated that the government was prepared to accommodate as far as possible to facilitate the needs and requirements of multinational investors, including joint venture arrangements with Pakistani private and public sector companies.

He informed the participants about the hydrocarbon potential in Pakistan which is estimated at 27 billion barrels of oil and 280 trillion cubic feet of gas. He added that given the fact that only 3.4 per cent oil and 19 per cent gas out of this prognostic potential had been realized, there thus exists vast potential for exploration.

Dr. Asim Hussain sounded optimistic and said that the recent studies conducted by foreign companies indicate that Pakistan is rich in hydrocarbon potential and given the accelerated and optimal exploitation of its sedimentary basins the country can not only achieve autarky for its needs but it can also be able to meet the energy needs of other countries as well.

“We are offering 54 blocks to exploration companies for competitive bidding while other free areas are also available to any company interested,” Dr. Hussain said.

He said his country’s current gas production stands at four billion cubic feet per day (BCFD), while requirements are growing at a fast pace and the existing gas fields are declining. A supply-demand gap of 4 bcfd is projected for 2015 which will grow to 6 bcfd by 2020 and 11 bcfd by 2025. Although Pakistan is pursuing gas import options from Iran and Central Asia, these will be remain far short of the requirements and hence the need for an accelerated domestic exploration programme of natural gas.

Dr. Hussain pointed out that only 742 exploratory wells have been drilled so far out of 80,000 square kilometres of onshore and offshore basin area. These have resulted in more than 221 discoveries containing one billion barrels of oil and 53 trillion cubic feet of gas.

With average discovery size of 45 million barrels oil equivalent, highly attractive terms of engagement under a new petroleum policy and together with a large number of open acreages available, Pakistan offers a land of opportunities for any hydrocarbon explorer.

In his welcome address, Pakistan Consul General in Vancouver, Moin ul Haque spoke of the present government’s endeavours to promote foreign investment in upstream petroleum sector with a view to exploit indigenous hydrocarbon resources in an optimal manner while maximising returns for foreign investors.

The Consul General also noted deep rooted and historic relations between Canada and Pakistan, where the first dam in Pakistan; Warsak dam and the first nuclear power plant KANNUP were built with Canadian assistance. He also mentioned that even now many big companies such as Barrick Gold and SNC-Lavalin are operating in Pakistan.G.A. Sabri, Special Secretary, Minstry of Petroleum highlighted the salient features of the policy covering certain fiscal incentives provided therein and also answered the queries of the participants.

George Wachtel of OMV also shared his views about the new Petroleum Policy and termed it the best package providing lucrative fiscal incentives for the E&P companies. He also lauded the conducive and congenial business environment in Pakistan from the point view of 20 years working experience of OMV being one of the largest gas field operators in Pakistan. The conference was addressed by the former Petroleum Secretary, Dr. Gulfraz Ahmed, Blair Shimmield, VP of LMKR.

 

[Omar1984]

Pakistan, Afghanistan, Tajikistan agree on joint cooperation in trade, energy sectors ​

DUSHANBE, Tajikistan, Jul 30 (APP): Pakistan, Afghanistan and Tajikistan on Thursday agreed to strengthen cooperation in trade, energy and communication sectors besides tackling the challenges of terrorism and extremism in the region. This was agreed in a trilateral meeting of the leaders of three countries at the picturesque resort Varzob, some 40 kilometres from Dushanbe.
During the meeting, the three leaders underscored the importance of further promoting bilateral and economic relations, with implementation of joint projects in areas of energy transfer from Tajikistan to Pakistan and Afghanistan as well as construction of inland rail road for transportation of passengers and goods.

The three sides agreed that terrorism is a regional phenomenon that necessitates a comprehensive, concerted and coordinated approach with full participation of regional states and local communities.

President Zardari in a joint stake out with two leaders termed the event historic that brought together the three nations to jointly own the challenges of terrorism and economy.

“We stand together and work together. We will jointly face all the challenges together,” President Zardari said, adding that the cooperation would result into the prosperity of future generation.

President Zardari proposed that the three leaders should meet every year to strengthen cooperation in various sectors.

Afghan President Hamid Karzai and Tajik President Emamoli also reiterated their resolve to cooperate for peace and stability in the region.

After the meeting, the three leaders also signed a joint declaration.

 

[Spring Onion]

TAPI gas pipeline: Pakistan suggests alternate route


ISLAMABAD (August 02 2009): In the wake of stepped-up tactics by the Taliban in Afghanistan, Pakistan has proposed to Turkmenistan an alternate route in western Afghanistan to finalise the much-delayed Turkmenistan- Afghanistan-Pakistan-India (TAPI) gas pipeline, a senior official in the Ministry of Petroleum said on Saturday.

"Alternate western route in the militancy-plagued Afghanistan is under discussion to lay down the TAPI gas pipeline without further delay. The route will be between Afghanistan-Iran and Pakistan-Iran and then again it will enter Balochistan," official said.

He said that the Afghanistan government was in favour of that alternate western route for laying down the gas pipeline. "The TAPI pipeline will pass near Rakho Deeq copper mines project in Balochistan's Chaghai area and will reach the Gwadar port," he added.

Taliban militants are active elsewhere with special reference to the lawless Pak-Afghan border region and the earlier proposed pipeline was feared to be damaged. Pakistan has conveyed to Turkmenistan that more than 72 percent insurgency-related cases by the extremists elements are being taking place on weekly basis on the earlier proposed TAPI gas pipeline route where it links Herat to Kandahar.

"Afghan authorities have also agreed with the Pakistan's point of view that the western route for TAPI gas pipeline is viable and it has been de-mined to make it protected in line with security point of view," the official added.

Another official in the Petroleum Ministry said on condition of anonymity because he was not authorised to speak on the issue: "If the proposed alternative western route is accepted by Turkmenistan, then the length of gas pipeline will reduce to 1,490 kilometres instead of earlier estimated length 1680 kilometres on Herat-Kindhar route."

The official said the alternative western route was feasible and would be acceptable to India, and added Pakistan was set to establish liquefied natural gas (LNG) terminal at Gwadar port, providing a golden opportunity for India to import LNG.

Turkmenistan did not so far come up with any tangible response on the proposed route. "Once the four countries are agreed on timeframe, modalities and other parameters, then an independent consultant will be hired under the Asian Development Bank (ADB) to convert the project into a bankable report," he said.

Turkmenistan has said that it has gas reserves of eight trillion cubic meters, but Pakistan and India want certification about the gas reserves before taking any further step on the TAPI gas pipeline project. Under the proposed project, Turkmenistan will supply 3.2 bcfd gas, which would be shared by Pakistan, Afghanistan and India.

Earlier, the project steering committee meeting on TAPI was held in Islamabad on April 21-24, 2008 and Turkmenistan pledged to submit the audit report on certification of gas reserves by September 30, 2008. The ADB representative in a meeting of the steering committee had expressed reservation over the delay of the project.


Copyright Business Recorder, 2009

Business Recorder [Pakistan's First Financial Daily]

 

[Spring Onion]

Textile policy may be announced in two weeks: 'Rs 40 billion earmarked for export development'

RECORDER REPORT
KARACHI (August 02 2009): The government has allocated Rs 40 billion for the textile sector export development fund in the textile policy. This was stated by Federal Minister for Textiles, Rana Muhammad Farook Saeed Khan here on Saturday. Speaking at a meeting of the All Pakistan Textile Processing Mills Association (APTPMA), the minister said the textile policy was in final stages and expected to be announced in next 10 to 15 days.

He said textiles sector could play an important role in reducing unemployment and overcoming menace of terrorism by creating job opportunities. The minister said it had been proposed that commercial attaches should be hired from among the Pakistanis living abroad.

The present lot of commercial attaches was playing almost no role in enhancing exports, he admitted. Replying to a question, he said the textiles board would be rehabilitated after the announcement of the textile policy. He assured the business community that the government would address the problems of the textile industry without any further delay and expressed his confidence that the textile policy would provide relief to the industry and make it competitive.

About the Research and Development (R&D) fund, the minister said, "It is no more an issue. It has gone now." About stuck-up refunds of R&D, the minister said the government had already settled 40 percent of Rs 12 billion claims and remaining claims would be settled soon.

Federal Secretary Textiles, Dr Waqar Masood Khan said preparation of a comprehensive textile policy was the main objective of the ministry. He said the policy would address the issues of up-gradation of machinery, provide infrastructure facilities and focus on human resource development to enable the industry to compete in the international market. He said the minister of textile was negotiating gas prices for textile industry with the ministry of petroleum.

Adviser to Sindh Chief Minister for Investment, Zubair Motiwala said although Bangladesh was producing not a single bale of cotton, export of its value added textile sector had touched more than 8 billion dollars. He said Pakistan had no option but to provide matching facilities with its competitors in international markets, adding that there was need to reduce cost of production.

APTPMA Chairman, Muhammad Nisar Sheikhani said economic crisis was deepening due to worsening problem of power outages, gas load shedding, water shortage and high cost of manufacturing. He said export could only be increased if the government managed to reduce cost of production and provided level playing field to exporters.

 

[Hyde]

Proposed new Investment Policy 2009-2010 announced ​

ISLAMABAD (August 02 2009): Federal Minister for Investment Senator Waqar Ahmad said that the government has announced proposed new Investment Policy 2009-15.' The New Investment Policy envisages major policy initiatives for materialising the vision of President Asif Zardari and Prime Minister Yousaf Raza Gilani as well as in accordance with the manifesto of the party.

The new policy focuses on policy and legal frame work, promotion and advocacy and initiatives and implementation. The present government wants to put the country on road to economic stability by alleviating of poverty, creation of job opportunities and decreasing the trade deficit through increased productivity of our agriculture and manufacturing sector. Senator Waqar Khan informed the media that under the new policy, it has been envisages that Special Economic Zones would be created in the country to attract foreign and domestic investors.-PR

 

[Hyde]

$75 billion investment envisaged in five years: minister unveils new policy draft ​

ISLAMBAD (August 01 2009): The Government on Friday unveiled a new five years proposed investment policy that would offer tariff incentives to attract around $75 billion local and foreign investment in the next five years in oil and gas, energy and agriculture sectors.

The Minister for Investment, Waqar Ahmed, at a news conference here on Friday said that this investment would come through Special Economic Zones (SEZs) in various sectors of the economy. These SEZs are being set up across the country, he added.

The minister said that investors would be given five years' tariff holiday on imports of raw material and machinery, and to developers for a period of ten years. The policy would provide alternative dispute resolution mechanism to investors, which would have judicial cover, and end interference of 27 different agencies.

The policy encompasses investment strategy having three action programs to attract foreign direct investment. These include enhancing the international image of Pakistan as an investment location, promoting investment projects internationally and providing services to potential foreign investors in Pakistan.

These three action programs would be interdependent and mutually supportive, having components of a coherent investment promotion cycle. The investment promotion activities in Pakistani agencies Smeda, PC and PPIB would be co-ordinated with the foreign investment promotion strategy with a view to maximising synergies and sending a coherent message about Pakistan to the international investors.

The minister claimed that with improvement of law and order situation in the country after operation against militants not only Pakistan's image had improved abroad but also the foreign investors are keen for making investment in different sectors of the economy.

He said that the new policy would act as a catalyst for attracting investment and help in bringing about economic stability and employment generation. The investors would be provided one-window operation at over 24 buildings of SEZs in different cities, and they would be given assurance for continuation of policies. These initiatives would help in achieving about $15 billion annual foreign and local investment in various sectors of the economy. The investors would have one-window operation at over 24 buildings in different cities, he said.

Replying to questions, the minister said that provinces were also consulted and taken on board regarding the proposed policy. The new policy, he said, would be based on about three or four pillars, including institutionalising a structural public-private policy dialogue, strengthening investment protection, launching a foreign investment promotion strategy, and enhancing the capacity building.

Waqar said that the policy was being unveiled to have dialogue by the public and private sectors on it and for seeking inputs from other stakeholders. The minister said that the policy would provide a baseline for chalking out other economic policies and would help achieve the desired economic stability and employment generation.

He did not give any timeframe for implementation of the policy which, he said, had been made public for seeking inputs from media and other stakeholders. He avoided answering a question about whether the government had sought any input from the chambers of commerce or business community, while compiling the policy.

 

[Hyde]

'Pak-Morocco trade volume to grow with increasing ties' ​

KARACHI (August 01 2009): Through strengthening the relations the existing trade volume of $400 million between Pakistan and Morocco can be enhanced in coming days. This was stated by Ishtiaq Baig, Honorary Consul General of the Kingdom of Morocco, during celebrations of 10th anniversary of the enthronement of His Majesty King Muhammad VI at a local hotel, here on Friday.

Baig said that large quantity of textile products is exported to Morocco, which would be increased in future as the business communities of both the countries have shown their interest in enhancing mutual trade.

Pakistan on the other hand is importing phosphates from Morocco, he said, adding that both countries are trying to increase their capacities by introducing trade in other sectors as well. "Both countries have vast opportunities of development in the field of tourism and the mutual co-operation can boost this sector," he added.

A large number of businessmen, diplomats of different countries, bankers and political figures attended the ceremony.

Sindh Assembly's Deputy Speaker Shehla Raza, the chief guest congratulated King Muhammad and the Moroccan people and hoped that bilateral relations would grow more.

 

[Hyde]

Japanese economic zone to be set up near Karachi ​

KARACHI (August 01 2009): A special Japanese economic zone would be established near Karachi on 2,000 acres of land, a high level meeting at Chief Minister House decided this on Thursday night. Chairing the meeting Chief Minister Sindh Syed Qaim Ali Shah underlined the need to provide all facilities at Japan Special Economic Zone (JSEZ) to boost industrial growth with special emphasis to develop agro-based industries.

Earlier, Advisor to Chief Minister Sindh for Investments Zubair Motiwala in his briefing said Pakistan-Japan Business Forum (PJBF) after holding mutual dialogues in Tokyo on May 15 had recommended that due attention should be given to agriculture and human resource development with rapid industrialisation for which more incentives and tax cuts should be given.

He said that during his last year's visit to Japan the Chief Minister had approved the proposed zone land near Dhabeji on Karachi-Thatta National Highway about 50km off Karachi. The zone would have access to National Highway close to Pakistan Steel Mills, Port Qasim and Quaid-e-Azam International Airport, he added.

The meeting was informed that the JSEZ land would be developed and the approach-road would be constructed and security of developers would be ensured.

It was decided that Chief Secretary Sindh would co-ordinate with the government stakeholders to develop roadmap and concept plan, including the development of the master plan, infrastructure, project design, marketing etc. All the facilities would be provided to the investors under one roof.

It was proposed that there should be zero rating of customs duty, reduction in sales tax and excise duty while there may be income tax holiday for a period of 10 years. Provision of electricity, gas, water, transport, railway linkage and approach-road would also be provided.

IG Sindh Police Babar Khattak assured the meeting of full security for the developers in and around the zone. The meeting was attended by Chief Secretary Sindh Fazl-ur-Rehman, Additional Chief Secretary (Dev) Nazar Hussain Mahar, Secretary BOL Islamabad, provincial secretaries for finance, home, transport, works and services, Member (LU) Board of Revenue Sindh, DCO Thatta, officers of KESC, SSGC, KWSB, President PJBF and others.

 

[Hyde]

Proposed new Investment Policy 2009-2010 announced ​

ISLAMABAD (August 02 2009): Federal Minister for Investment Senator Waqar Ahmad said that the government has announced proposed new Investment Policy 2009-15.' The New Investment Policy envisages major policy initiatives for materialising the vision of President Asif Zardari and Prime Minister Yousaf Raza Gilani as well as in accordance with the manifesto of the party.

The new policy focuses on policy and legal frame work, promotion and advocacy and initiatives and implementation. The present government wants to put the country on road to economic stability by alleviating of poverty, creation of job opportunities and decreasing the trade deficit through increased productivity of our agriculture and manufacturing sector. Senator Waqar Khan informed the media that under the new policy, it has been envisages that Special Economic Zones would be created in the country to attract foreign and domestic investors.-PR

 

[Hyde]

Government completes 22 schemes in FR Kohat ​

PESHAWAR (August 03 2009): The government has completed 22 various schemes, while seven are in progress for the socio-economic uplift of tribal communities in FR Kohat, the spokesman of Fata secretariat said on Sunday. 'By initiating various development projects, Fata secretariat has enabled the office of the Assistant Political Agent to address all the legitimate demands of general public,' he said.

Assistant Political Agent, FR Kohat, Sajid Ahmad, showed his complete satisfaction over the pace of these projects, as so far 22 schemes have been implemented whereas seven schemes are in progress.

Under these schemes thousands of the local residents of FR Kohat have benefited from clean drinking water, protection from flood, paved streets, school rehabilitation and youth engagements activities. Assistant Political Agent FR Kohat said that maintaining high standard in quality is hallmark of the schemes implemented in FR Kohat with the support of Fata secretariat. The community elders must come up with innovative ideas for the socio-economic development of the Tribal Communities of FR Kohat.

The government would definitely entertain these ideas and would positively respond to them by translating them into coherent and well thought projects, he added.

 

[ejaz007]

New plant to boost Bosicor’s production by 160,000 bpd
Staff Report

KARACHI: The domestic crude oil refining capacity is estimated to increase by more than 160,000 barrel per day by July 2010 with the completion of $400 million new plant of Bosicor Pakistan Limited.

Speaking to the newsmen, President Oil Refining Business, Zafar Haleem said the new oil refining plant would be the largest ever in the country that would significantly curtail dependency on imports of various petroleum products.

He said the existing oil refining unit will start its enhanced production of 40,000 barrel per day by March 2010 whereas the new under construction unit will increase the overall production of company to early 20,000 barrel per day.

Haleem said the company has planned to install isomerization unit with a capacity of 12,500 bpd, which will convert the heavy naptha into high quality motor gasoline, adding the petro-chemical unit of the company will also start its production after six to eights months of the completion of refining unit.

He said the government should fix the processing fee for oil refining company instead of linking its pricing and margins with international market prices.

The oil refining company reaped windfall profits when the crude oil prices were higher but their profits nose dived as the crude oil price plunged. In this uncertain market situation coupled with government’s inconsistent policy, the refineries have been facing severe financial trouble.

Kalim A Siddiqui, President Marketing Business, Bosicor Pakistan Limited said the expansion of the refinery will strengthen the company’s economy of scale significantly and would also help in reducing oil import bill in the future.

He said government should frame consistent policy for oil industry particularly for the oil refining companies.

Siddiqui mentioned that Bosicor has retained its 1.5 percent share in the overall oil marketing business, which will enhance within two years after establishment of its new retail outlets in the country.

He said the Bosicor will also establish state-of-art retail outlets of petroleum products and auto gas and will attract customers with its highly quality of products and services.

The company has almost constructed crude oil storage tanks with the capacity of 144,000 tonnes, which includes the largest crude oil storage tanks of the country.

Daily Times - Leading News Resource of Pakistan