Pakistan Economy - News & Updates

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Some relief in sight for Swat businessmen ​

PESHAWAR: The federal government is considering writing off the loans extended to the business community of the militancy-affected Swat region, besides giving relief in interest rates to businessmen of other parts of the Frontier province.
These incentives are part of a package the federal government is preparing, which will be announced in a couple of weeks, Senator Ilyas Ahmad Bilour told Dawn here on Monday.

Citing his recent meeting with Federal Finance Minister Shaukat Tarin, Mr Bilour said the centre had realised the problems faced by NWFP businessmen. He said the Finance Division was working out a relief package for the business people of the province, particularly of Swat.

The proposed package would include writing off loans of Swat businessmen, while the relief for businessmen of other areas of the NWFP would be either elimination of interest on bank loans for two years or it would be fixed at five per cent, said Mr Bilour, quoting the minister as saying.

An official told Dawn that different departments and agencies of the federal government were working on a development plan for the Malakand region.

The proposed plan includes schemes for the social sector as well as initiatives for industrial and economic revival.

Apart from that, the official said, the Frontier government has also worked out a five-year ‘Comprehensive Development Strategy’ for Malakand that will cost Rs193 billion. The government plans to present the proposed strategy in the forthcoming meeting of Friends of Democratic Pakistan, scheduled for Aug 25 in Istanbul.

The federal government, according to the official, has also endorsed the demand of declaring NWFP as a war-affected province.

The Sarhad Chamber of Commerce and Industry has been demanding to declare the NWFP as a war-affected province since long in the wake of damages caused by militancy.

Mr Bilour said the war on terror had affected the economy and businesses of the Frontier province the most and that was why the Senate’s Standing Committee on Finance had also demanded declaring NWFP as a war-hit province.

‘The finance minister has agreed to the SCCI demand and assured of unveiling a special package for the province in Ramazan,’ he said.

He hoped that the proposed package would help bring the local industries again on the path of progress and would consequently boost up the provincial economy.

DAWN.COM | Provinces | Some relief in sight for Swat businessmen

 

[white_pawn]

Current account deficit dips by 49 percent in July ​

RIZWAN BHATTI
KARACHI (August 20 2009): The country posted $606 million current account deficit during July 2009--first month of the current fiscal year 2009-10. The State Bank of Pakistan on Wednesday said that the country's current account deficit declined by 49 percent during the first month of current fiscal year mainly due to positive measures taken by the government to cut the rising current account deficit.

With this decrease, the country's current account deficit narrowed down to 606 million dollars in July 2009 as compared 1.182 billion dollars during same period of 2008-09, depicting a dip of 576 million dollars. "Decrease in current account deficit has been contributed by a large decline in trade, services and income deficit, besides rising inflows of services exports," analysts said.

They added that government measure to arrest the rising current account deficit now witnessed positive impact on the balance of payments. "The improving current account situation also indicates overall economic strength, and we are expecting further stability in near future," they said.

Services deficit decline by 35 percent during July 2009 to 307 million dollars with 237 million dollars exports and 544 million dollars imports in July of the current fiscal year as compared to 476 million dollars--with 230 million dollars exports and 706 million dollars imports--in July of last fiscal year. The country's overall goods imports stood at 2.795 billion dollars and exports at 1.546 billion dollars with a trade deficit of 1.249 billion dollars during July 2009.

Similarly, income deficit declined by 35 percent to 223 million dollars with 269 million dollars outflows and 46 million dollars inflows during the first month of the current fiscal year. Overall deficit including goods, services and income stood at 1.779 billion dollars against the current account transfers of 1.176 billion dollars during the first months of current fiscal year. It may be mentioned here that the country's current account deficit had shrunk by 36 percent, to 8.8 billion dollars, in last fiscal year 2009 mainly due to higher home remittances and sharp decline in the trade deficit.

 

[white_pawn]

'War on terror causing $6 billion losses in exports annually' ​

RECORDER REPORT
KARACHI (August 20 2009): Pakistan is suffering $6 billion export losses annually due to the ongoing war against terrorism, said the Chief Executive Officer of Trade Development Authority of Pakistan (TDAP), Syed Mohibullah Shah, here on Wednesday. Speaking at the 5th meeting of intellectual property rights subcommittee of Karachi Chamber of Commerce and Industry, he said that Pakistan is not only taking part in the war against terrorism for its own safely but also for safety and security of the world.

He urged all countries of the world in general and European countries in particular to provide market access to Pakistan. He also advised business community to develop its own website and display its products to boost Pakistan's exports. "Websites are accessible from anywhere in the world and it can help introducing more and more products of Pakistan in world market. The TDAP chief also advised business community to concentrate on developing brand names.

"Pakistan can easily fetch three times more export earnings from the same volume of exports by introducing band name, maintain high quality of products. Prices are reasonable and no compromise on quantity." Citing example of Bangladesh, he said that Bangladesh is getting 100 percent more unit price of readymade garments than Pakistan due to high quality, brand name, etc.

Warning Pakistani business community, Mohib said that Pakistan may face difficult times at home market and exports markets if they compromised on quality, price and quantity. "The world is now a global village and buyers prefer to buy from where they get better quality goods and at reasonable price. Tariff barriers have already gone," he added. He said that TDAP would organise an exhibition in collaboration of KCCI in Vancouver next year.

 

[white_pawn]

PM forms Business Persons Council ​

LAHORE: Prime Minister Yousuf Raza Gilani has constituted a 53-member Business Persons Council to develop a strategy for the commerce and trade sector.



Federal Minister for Industries and Production Manzoor Ahmad Wattoo told APP on Wednesday that the president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), office bearers of its affiliated chambers, trade bodies, including key players of business community, veteran trade leaders from across the country have been given representation in the newly established council headed by the federal finance minister.


Elaborating on the main objective of the council Mian Wattoo said that the prime minister wanted to take private sector into confidence in policy making process to make it more viable in the larger interest of the country.


He said the council would help a lot to establish a close liaison and cordial relations for promoting and encouraging public-private sector partnership, besides addressing the economic issues confronting the country in the wake of global recession.


Mian Wattoo said that a strategy for boosting industrial production and exports will also be worked out in consultation with the council members. Shaukat Tarin will chair the first meeting of the council on August 21.


Prominent council members among others, include Sultan Ahmad Chawla, president FPCCI, Muhammad Adrees, Hameed Akhtar, Muhammad Mansha Churra, Tariq Sayeed, Iftikahr Ali Malik, S. M. Munir, Sardar Muhammad Ali Jogezi, Haji Ghulam Ali, Zubair Ahmad Malik, Mian Misbahur Rehman, Anjum Nisar, Sikandar Mustafa Khan, Zubair M Tufail and Muhammad Farooq Dadabhoy.


Mr Wattoo said that his ministry would also facilitate the council members to help frame better future policies to strengthen the national economy. He said the government always attached great importance to business community and will solve their genuine problems on priority basis.

 

[white_pawn]

Pakistan very attractive country for investment: NBP President ​

KARACHI, Aug 20 (APP): President National Bank of Pakistan (NBP) Syed Ali Raza said Pakistan is a very attractive country for investment in the region and its future is very bright. Investors from all over the world show their interest in making investment here for lucrative business opportunities which is very encouraging, he said while speaking at Karachi Chamber of Commerce and Industry (KCCI).
He said Pakistan has a very strong base of human resources and they can build it further to meet the requirements of international market.

He underlined the need for individual and collective efforts to make the country strong on economic and social fronts.

President KCCI Anjum Nisar briefed the NBP President about the problems related to banks facing the business community.

 

[white_pawn]

E-banking transactions grow 7.8% to Rs 3.9 tln in last Qtr of FY09​

KARACHI, Aug 20 (APP): Electronic banking (e-banking) and branchless banking transactions continued to show growth momentum as both the volume and value of these transactions exhibited a rise in the country trend during the last quarter of the fiscal year (FY2008-09). According to the Fourth Quarterly Report on “Branchless Banking/ Electronic Banking,” the volume and value of e-banking/ branchless banking transactions in the country reached 44.5 million and Rs 3.9 trillion (tln) respectively showing an increase of 11.1 percent in number and 7.8 percent in value as compared to 6.5 percent increase in number and 11.4 percent increase in value in the previous quarter of FY09 (Jan-March 2009), said a SBP statement here on Wednesday.
During the fourth quarter (April-June) of FY09, the volume and value of online banking transactions in the country reached at 13.7 million and Rs 3.7 trillion respectively showing a growth of 10.8 percent in numbers and 7.4 percent increase in value as compared to 14.8 percent increase in numbers and 11.7 percent increase in value in the previous quarter.

According to the Report, during the fourth quarter, the volume and value of ATM transactions in the country reached 25.2 million and Rs 189.0 billion respectively showing a growth of 12 percent in numbers and 12.2 percent increase in value as compared to 5.2 percent increase in numbers and 10.2 percent increase in value in the third quarter.

During the period under review, the volume and value of internet transactions in the country recorded at 0.6 million and Rs 22.2 billion respectively, showing an increase of 15.4 percent in numbers and 35.7 percent increase in value as compared to 2.8 percent decline in numbers and 2.1 percent increase in value in the previous quarter. Whereas, the volume and value of mobile transactions in the country recorded at 21,733 and Rs 4.9 million respectively showing an increase of 40.6 percent in numbers and 48.2 percent increase in value as compared to 12.1 percent decline in numbers and 15.4 percent decline in value in the previous quarter.

According to the Report, the total quantity of ATM machines during April-June, 2009 period reached 3,999 registering a growth of 5.7 percent as compared to 7.4 percent increase in the previous quarter. The volume of Real Time Online Branches (RTOB) during the quarter reached at 6,040 and recorded a growth of 1.3 percent as compared to 1.8 percent increase recorded in the previous quarter. The total quantity of POS terminal reached at 49,715 showing an increase of 2.7 percent in number as compared to 1.1 percent decline in previous quarter.

It said that total quantity of cards (debit / credit /ATM only) in circulation during fourth quarter of FY09 reached at 8.9 million which shows an increase of 6.6 percent as compared to 3.1 percent decline in the previous quarter. The quantity of credit cards has decreased by 0.6 percent as compared to 6.2 percent decrease in the previous quarter. The quantity of debit cards has increased by 9.6 percent as compared to 2.5 percent decline in previous quarter and stood at 6.4 million, it added.

The Report pointed out that paper-based instrument during the fourth quarter of FY09 witnessed a growth of 4.8 percent to 85.6 million in numbers compared with 1.4 percent decline in the previous quarter (81.7 million). The value of transactions decreased by 6.1 percent to Rs 33.1 trillion as against 1.6 percent increase or Rs 35.3 trillion recorded during third quarter of FY09.

It said that during the last six quarters the transition from manual (paper-based) banking to e-banking has been gradual, yet consistent, in terms of both volume and value of transactions. The composition (in percentage) of electronic transactions increased to 34.2 percent of the total number of transactions as compared to 32.9 percent recorded last quarter. In terms of value, the same increased by 10.5 percent as compared to 9.3 percent rise recorded last quarter.

 

[Hyde]

100,000 Pakistani workers in Malaysia by next year​

KARACHI (August 29 2009): Pakistan is set to join Indonesia, Bangladesh and Myanmar as a primary source of foreign labour for Malaysia, with a three-fold increase in workers, taking their numbers to 100,000 by December next year. This was reported by Balan Mosses, the Deputy Chief News Editor of Malaysia's second highly circulated English language news papers the "New Strait Times' in a four column story published prominently on Thursday.

While quoting High Commissioner for Pakistan Lieutenant General Tahir Mahmud Qazi (Retd). Balan Moses, who is the top most writer and columnist of Malaysia, conduced an exclusive interview of the High Commissioner on August 24 and mainly focused on bilateral relations with Malaysia, the trade investment and business opportunities available in Pakistan especially after signing of Malaysia Pakistan Comprehensive Economic Co-operation Agreement (MPCEPA) in 2007, and opportunities for Pakistani workforce in Malaysia.

The High Commissioner told Balam that inflow of Pakistan's skilled and semi-skilled workers would contribute in Malaysia progress and prosperity, especially after the expected boom in construction activities in Malaysia as an aftermath of creation of various corridors of development in the country including Iskandar Development Region in Johor, Malaysia.

He said all necessary steps would be taken to increase the Pakistani workers to 100,000) from the existing 30,000 by December next year to assist in the development of Malaysia's various newly announced construction projects. Tahir Qazi said a memorandum of understanding (MoU) had already been signed between the two countries in 2005, wherein Pakistan had been declared as one of the source country for Malaysia for recruiting workers.

The High Commission was also liasing actively with the Construction Industry Development Board of Malaysia on the anticipated need for Pakistani workers in the short-and long-term. Giving the existing status of Pakistan labour force in Malaysia, he said there were about 30,000 Pakistani workers who were mostly employed in construction industry.

They had a proven track record of being hardworking and dependable. They had made a name for themselves in the Middle East as well, due to their ability to adapt to local conditions besides their high level of skills and expertise in the building industry. The High Commissioner said Pakistani workers were doing very well in Malaysia, too, as they had been able to work well with local employers.

 

[ejaz007]

Technical talks on Pak-Iran gas pipeline project kick off
Tuesday, September 01, 2009
By Khalid Mustafa

ISLAMABAD: Pakistan and Iran on Monday initiated technical talks on draft of the operational agreement under the IP gas pipeline project.

“In the marathon six-hour long meeting, experts from both sides deliberated upon each word and clause of the proposed operational agreement draft,” a reliable source, who was part of the talks, told The News. He, however, refused to divulge any further details, saying that talks would continue for another three days or so, adding that nothing was final as yet and therefore could not be shared with the media.

The five-member Iranian team was led by Iran’s Director Gas Exports, while the six-member Pakistan team was headed by Managing Director Inter State Gas System Hasan Nawab. In the coming rounds of these negotiations, Pakistan and Iran will also hold talks on Conditions Precedent (CPs), which are prerequisites before making the gas sales purchase agreement effective that both Islamabad and Tehran have already signed in Istanbul.

Under the gas sales purchase deal, Pakistan is bound to submit some conditions precedent before September 5, otherwise the deal could elapse. However, the date for finalising the conditions precedent can be extended, one time only, through mutual agreement. Under the CPs, Pakistan will have to submit a Performance Guarantee and a Comfort Letter.

Hasan Nawab, MD ISGS, who is the focal person on all issues pertaining to IP gas pipeline when contacted said the experts of both the sides had discussed the standards and codes of the engineering that would be utilised in constructing the IP gas pipeline. “The standards and codes of the engineering would be the same for the whole IP gas line.”

“Although the pipeline will be constructed under the segmented approach under which Iran will construct the pipeline in its area and Pakistan will construct in its own area from Iran border to Nawab Shah, but factually the pipeline will be the same from Paras field (Iran) to Nawab Shah (Pakistan).”

He said such meetings at operational level would continue and that officials of both the countries would meet again after Eidul Fitr. On the issue of comfort letter, the source said as per this letter, the government of Pakistan would have to allow a third country to import gas through IP pipeline in the event of any such country joining the project in the future. Such permission, however, will be subject to the gas tariff and transit fee that would be worked out at that time’s best practices.

Technical talks on Pak-Iran gas pipeline project kick off

 

[ejaz007]

OGDCL discovers oil and gas in Nashpa block
Staff Report

KARACHI: Oil & Gas Development Company (OGDC) has made an oil & gas discovery in Nashpa Block at Nashpa-1 well in NWFP Province. The well was spuded on June 29, 2008 and drilled to the depth of 4384 meters.

A successful drill stem test was carried out which flowed at a rate of 3,000bbls/day of oil and 9.68mmcfd of gas at 32/64 choke size. The information was communicated to shareholders on Tuesday. This is the second discovery in the block.

In September 2006, OGDC hit a major discovery at Mela-1 well. It may be recalled that Mela-1 was tested for 4,100bbls/day oil and 12mmcfd gas. The Block was granted to OGDC in 2002. As an operator in the block, OGDC held 56.45 percent(post-discovery) stake.

The block is situated in a highly prospective area, where Tal Block has already proved to be the largest discovery of the decade. Besides OGDC, PPL and GHPL also have non-operating post-discovery stakes of 26.05 percent and 17.5 percent, respectively.

OGDC is the heavyweight of local stock market and included in the blue chips that are dominated stocks. Company holds Rs.425 billion market capitalization and government has 85 percent of the stakes in the company. At the end of month of July,, OGDC announced financial results for the year ended June 30 2009, recording 25 percent growth in earnings to Rs.55.5 billion translating into earnings per share of Rs.12.91. Analysts had attributed the handsome growth in the company’s earnings to increased gas production and improved wellhead gas prices.

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

Zardari calls for reimbursement of outstanding $1.6bn CSF

* Payment essential for ongoing military operation against Taliban
* President emphasises early approval of Kerry-Lugar Bill

Staff Report

ISLAMABAD: President Asif Ali Zardari on Tuesday urged the United States to expedite reimbursement of the $1.6 billion worth outstanding payments in the Coalition Support Fund (CSF), an early passage of the Kerry-Lugar Bill and the legislation to set up reconstruction opportunity zones (RoZs) in the war-affected areas of Pakistan.

During a meeting with a three-member delegation of the US Senate, the president also sought repayment and assistance in the energy sector and the massive $2.5 billion plan undertaken for the rehabilitation and reconstruction of the internally displaced persons (IDPs).

Later, briefing reporters about the meeting between the US delegation and Zardari, President’s spokesman Farhatullah Babar said the president sought personal intervention of the visiting senators in expediting the reimbursement process and also in the supply of the critically-required equipment, including helicopter gunships.

Interior Minister Rehman Malik, Minister of State for Foreign Affairs Malik Ahmad Khan, Secretary General Salman Farooqui, Foreign Secretary Salman Bashir, Senator Sughra Imam and Defence Secretary Lt Gen (r) Athar Ali were also present.

Importance: Babar quoted the president as saying that the payment of outstanding amounts in the support funds was important for security forces to continue the ongoing military operation against the Taliban.

“Inordinate delays in the reimbursement of the CSF claims are not conducive for the continued fight against militancy,” the president’s spokesman said.

Zardari also emphasised the need for an early approval of the Kerry-Lugar Bill as well as the RoZ legislation.

The president said the RoZ legislation was very important for the national security and called for enhancement of the area as well as product coverage of the reconstruction opportunity zones.

Zardari had told the US senators that the security forces had cleared 94 percent of the area in Swat and a large number of the displaced population had already returned home, Babar said.

He quoted the president as impressing upon the senators the need for ISAF and NATO forces in Afghanistan to ensure that there was no direct or indirect support to the militant factions from Afghanistan.

The president also asked for enhanced market access to the US and the EU.

Daily Times - Leading News Resource of Pakistan

 

[Hyde]

China gave $1 billion to improve Pakistan's economy: envoy​

ISLAMABAD (September 05 2009): Chinese Ambassador to Pakistan Lou Zhaohui has said that China has already given one billion dollars in two tranche to enhance Pakistan's foreign reserves and improve Pakistan's economy. "Pakistan is the only country in the world that China has ever given such a huge amount on very low interest rate that is due to the nature of bilateral relations", the Chinese envoy said while talking to media here on Friday.

President Asif Ali Zardari and his Chinese counterpart Hu Jintao are to meet in New York later this month on the sidelines of UN General Assembly, he said, adding that their meeting will focus a wide range of regional and international issues, but the main emphasis would be on bilateral relations.

Zhaohui said that within the last one year President Zardari has twice met both the Chinese premier and the president. The interactions will further deepen the relations between the two countries, he added. He deeply appreciated Pakistan's stance over July 5 incidents in Xinjiang province and said it was the only country in the world to have issued a statement in support of China.

To a question, the ambassador said that Pakistan's religious/political parties also supported China on the issue. Zhaohui said President Zardari during his first official visit to China last October had committed to visit China after every three months and each time he would visit a new province of the country.

"President Zardari has kept his promise and has so far visited his country thrice learning from Chinese model of development and holding interactions with various business leaders, economists and agriculturists," he added.

To a question about the protocol President Zardari was given in China, the ambassador said that no head of state is ever given such a protocol if he is on a working visit to cities other than Beijing. "This is rare. When dignitaries from other countries are there in Chinese provinces, they are received by an official of the Chinese foreign ministry. No one outside Beijing gets protocol which President Zardari receives during his working visits," Zhaohui said.

He said although President Zardari was not on a state visit, but still he was received by vice premier and the foreign minister also met him in Guangzhou. Ambassador Lou Zhaohui also dwelt upon areas of Pakistan-China co-operation and other international and regional issues. He said last year there were 3,000 Chinese engineers working in Pakistan on a number of projects, but this year their number has increased to 10,000 and the total projects they are working on are 120.

Expressing satisfaction over the security that interior ministry is providing to Chinese diplomats and engineers, he said the embassy has a joint task force with Pakistan's interior ministry and have a 24 hours hotline. "A number of foreigners left Pakistan, but we are committed to complete all the projects on which Chinese are working," he said. To a question he said for timely completion of Gawadar Port, China provided $300 million and was interested in its operating rights, which were given to Singapore Port Authority. He said China is also co-operating in Neelum Jhelum power project and in defence field his country has provided JF-17 fighter jets and handed over Frigate-22 to Pak Navy.

The ambassador informed that an MoU between the two countries will be signed next week to launch Pakistan's satellite into space. He said unlike Pakistan, his country has a number of political issues with India including border issue and Dalai Lama. Zhaohui, however, stated that relations with India were improving and recent talks on border issues have been satisfactory and some Indian army officials have also visited China.

 

[Omar1984]

KSE-100 index breaches 9,000 pts for first time in ’09
​

KARACHI: The benchmark KSE-100 index breached the psychological barrier of 9000 points on Firday, a phenomenon, which could only be witnessed 263 days back when the market was artificially held up by the placement of the floor.

The major force behind this upsurge in the bourse is the flocking of the offshore investors.

The buying frenzy that took the local bourse to new heights after the removal of floor from the market helped the market gain 461 points or 5.4 percent on weekly basis.

Despite no positive triggers, flows from offshore investors have created a bull run, analysts pointed out. They believed that the local investors, who have been supporting the market after the last year price-floor triggered crisis, are the major sellers in the market

But the buying euphoria by the Foreign Investment Institutions (FIIs) is so strong in Pakistan that benchmark KSE Index gained 11 percent in last two weeks at a time when regional markets have not performed well.

Mega inflows have been observed in Pakistan market that saw huge outflows at the beginning of the calendar year. In just two weeks, net buying of $110 million was seen in local bourses, according to NCCPL statistics. Last week $86 million net buying occurred. This brought down the net selling to date in 2009 to $98 million.

“It looks like that the risk-loving investors who have minted money in other markets are targeting under-performing Pakistani market whose paying ability has improved after the IMF additional funding. S&P has also endorsed this by upgrading Pakistan by one notch to B-, still six levels below investment grade,” Mohammad Sohail, Chief Executive Officer (CEO) Topline Securities observed in a research report.

These huge flows have created a price impact because since last one year the depth of Pakistan market has been affected substantially due to absence of famous badla and due to the fact that big players have lost tonnes of money.

Muniba Saeed, analyst at InvesCap said that despite other factors, these are the foreign investors are pulling the strings in the market with their entry like sheep herds in the lock market during the week.

The impact can be judged from the fact that in last two weeks foreign activity was 13 percent of total volume of Karachi bourse. As a percentage of actual settlement, foreigners share was 30 percent on an average in last two weeks.

At current levels, Pakistan is trading at 8.5x PE multiple. This is slightly better than last 20-year average PE of 9-10x. After the recent bull run, Pakistan is at 40 percent discount to average regional PE of key Asian countries from a discount of more than 50 percent a few months back. However, the current discount is now in line with historical average discount of 30-40%.

With local investors now on the sideline after selling aggressively during last week, the FIIs inflows can only sustain these price levels. Though the local political and economic conditions have an impact on stock market, Sohail said that the main driver in next few weeks would remain the buying and selling numbers of offshore investors.

 

[Omar1984]

SBP announces financing scheme for ginning units
​

KARACHI: The State Bank of Pakistan (SBP) has decided to provide financing facilities to ginning sector for modernisation of cotton ginning factories.

A spokesman of SBP said financing would be available only for balancing, modernisation and replacement (BMR) of cotton ginning factories.

Only SME borrowers, as defined in Prudential Regulations for SMEs will be eligible to avail financing facilities under the scheme.

This scheme will be effective from the date of issuance of circular September 4, 2009 and will remain valid up to 31 December 2010 on first come first served basis and subject to availability of funds under the scheme, he added.

He said cottonseeds crushing machinery installed in ginning factories would also be eligible to avail financing facilities under the scheme.

The financing will be available for purchase of new locally manufactured plant, machinery and equipment, he added.

Financing for purchase of new generators up-to a maximum capacity of 500 KVA will also be eligible, however, not be in excess of the ginning factory’s in-house energy requirements or upto 500 KVA whichever is less. Financing under the scheme will be available for a maximum period of seven years including a maximum grace period of six months. Locally manufactured machinery using more than 80 percent imported components shall not be eligible for financing under the scheme.

However, the financing will be limited only to the extent of local components. This condition will not apply to purchase of generators.

Financing will not be available for the purpose of acquisition of land, construction of building etc.

Advance payment to the extent of 20 percent of the ex-factory/showroom price can be made in terms of related underlying agreement by securing the bank’s interest.

Disbursements by banks/DFIs should not be made to the borrower directly, instead payments shall be made to the manufacturers and suppliers of the locally manufactured machinery and generator.

He said the rate of refinance upto 3 years would be 6 percent with bank’s spread of 2 percent and end user rate of 8 percent. Similarly over 3 years and upto 5 years the rate would be 6.50 percent with bank spread of 2.50 percent and end user’s rate of 9 percent. Over 5 years and upto 7 years rate would be 7 percent with bank spread of 3 percent and end user’s rate of 10 percent. Financing rates will be revised on annual basis effective from July each year.

Similarly, in cases where the loan amount is not disbursed in full during the validity of an applicable rate, the un-disbursed amount shall attract the new rate of finance/refinance applicable on the date of its disbursement by the bank/***.

Principal amount of loans will be repayable in equal quarterly, half yearly installments after prescribed grace period, if any.

However, if a borrower repays the loan amount or its installment, in part or in full, before the due date(s), the banks/DFIs will be under obligation to repay the amount(s) so received within three working days to the concerned office of SBP-BSC (Bank) failing which fine for late adjustment of loan will be recovered from the concerned bank/***, at the rate specified by the State Bank.

The refinance granted by SBP-BSC offices to the Banks/DFIs shall be recovered on the due dates as reported in the original repayment schedule from the account of the banks/DFIs maintained with the respective office of the SBP BSC (Bank).

In case the borrowers fail to make repayment of the amount of installment as per the original repayment schedule, the bank/*** will be entitled to charge normal rate of mark up on such overdue principal amount besides taking other actions to recover the same as are incidental to such defaults. staff report

 

[Omar1984]

Pak-UK bilateral trade expanding 12% every year: UK Diplomat
​

KARACHI: Pak-U.K. bilateral trade is enhancing with ratio of 12 percent every year; London recognizes the commercial potential of Karachi and Pakistan and expects value-addition in Pakistani Exports to enhance bilateral trade, said Robert W Gibson, Deputy High Commissioner, British Deputy High Commission.

He expressed these views while addressing in the eight meeting of Diplomatic Affairs Sub-Committee of Karachi Chamber of Commerce & Industry. He was invited as Chief Guest in the said meeting to discuss matters of bilateral trade.

Robert W Gibson appreciated that during the last 50 years KCCI has made commendable efforts to strengthen the trade, industry and economic activities of Pakistan. He stated that U.K. has great hope to flourish the commercial activities between both countries.

He informed that U.K. investment in various projects of Pakistan has reached to 400 million British Pounds. He said that trade has not suffered during the global recession however; he emphasized on regular exchange of trade delegation between two countries.

Commenting on the Travel Advisory, he said that their responsibility was to advice but they cannot compel anyone to visit or not visit Pakistan. He said that situation in Karachi, Lahore & Islamabad was better and British do visit these cities. Travel Advisory is reviewed with the span of time, he added.

Commenting on the GSP plus status of Pakistan for market access in EU, British Deputy High Commissioner said that it was the job of governments to further the agenda and reach an agreement. He said that Pakistani Value-added textile products is popular is U.K. and its export can be increased with further value-addition.

Robert W. Gibson said that U.K. can provide advance Agricultural Technology and Pakistani farmers have to show their interest and contact for the needful. He said that Royal Agricultural Exhibition would be held in U.K. soon and Pakistani Agriculture sector shall participate in it. He informed that presently 26 British companies were engaged in different sectors and investment is energy sector is also expected.

Commenting on the issuance of Visas, British Deputy High Commissioner said that visa issuance procedures is rationalized and applications from Pakistan are forwarded to U.K. Mission in Abu Dhabi where visa are processed according to the specified criteria and requirement of the Mission. Visas are processed on available evidences and refused due to incomplete or forged documentation.

During his visits to UK and in his speeches to British Business Circles, he highlights that Pakistan is a very dynamic country with great potential for investment having talented people who appreciate peace and harmony. Pakistan is not what you see in e-Media and read in newspapers and certain quarters of foreign media portray gloomy picture about the law and order situation.

He said that he was working in Pakistan since the last one and a half year and had noticed that law & order situation was much better as it is portrayed by foreign media. He informed that British companies doing business in Pakistan were enjoying profitable business with satisfaction and most of them are expanding their business.

Earlier, President, Karachi Chamber of Commerce & Industry, Anjum Nisar welcomed him and expressed his gratitude and high regards towards better relationship among the Governments and people of both Pakistan & United Kingdom.

Anjum on the occasion drew the attention of British Deputy High Commissioner towards great export potential of Pakistan in Value-added textile products, readymade garments, cotton yarn, woven fabrics, leather goods, surgical & sports goods, hand-made-carpets, Mangoes, plastic articles, Jewellery of Gold fish and sea food.

He said that imports from U.K. are machinery, boilers, mechanical appliances, iron & steel, chemical products, generators, transmission and telecom apparatus and pharmaceutical products. Anjum Nisar, also expressed his gratitude for British support in “Friends of Pakistan” Donor Conference, however, he was of the view that Pakistan need trade instead of aid.

He said that the current economic scenario has faced a slowdown and economic activities faced a loss of $1.5 million due to energy crisis in Pakistan. He drew his attention to motivate British companies to invest in the energy and agriculture sector. He also requested to reduce the British Visa Processing time of three-months to three-week and stated that due to prolonged visa processing time, Pakistani Businessmen very often lose their order and their counterparts from other countries take-away orders from their buyers.

He also lamented that due to travel advisory British businessmen were reluctant to visit Pakistan. He also criticized some quarters of foreign channels for biased reporting of law & order situation in Pakistan.

He was also of the opinion that Pakistan government must spend adequate amount of its budget in health and education sector as healthy and educated population contributes to economy.

 

[Omar1984]

US keen to support Pakistan in energy sector
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ISLAMABAD: A US delegation informed business community on Friday that the US is interested to help Pakistan to cope with energy crisis because power shortage is the second most serious problem in Pakistan after terrorism.

These views were expressed by a three-member US delegation led by Christian De Angelis, Director for South Asia & Central Asia, Office of the US Trade Representative, Executive Office of the President during a meeting with business community at Islamabad Chamber of Commerce & Industry (ICCI). They said US was actively engaged in energy dialogue with Pakistan to improve the situation.

They said hectic efforts were afoot to get the legislation passed by US Congress about the establishment of Reconstruction Opportunity Zones (ROZs) in Pakistan with the core principle to create jobs and generate economic activities in war hit areas.

These ROZs would cover NWFP and Balochistan and would create investment opportunities for Pakistani and foreign businessmen. The USA was also in talks with Pakistan and Afghanistan for cooperation in agriculture sector, they added. They said the US was focusing on enhancing funding for local organizations in Pakistan for economic uplift of the country.

Speaking on the occasion, President, Islamabad Chamber of Commerce & Industry (ICCI) Mian Shaukat Masud said the USA should sign FTA with Pakistan as it had already signed with other developing countries.

He said USA has provided duty free access to Bangladesh for export of textile products, which was hurting Pakistani textile sector and urged that the USA should provide similar access to Pakistani products in its markets to offset damaging effect on exports.

The ROZs should provide equal benefits to Pakistan and USA and it should be ensured that it could not have any negative impact on industry in other parts of Pakistan.

He said USA should help Pakistan in hydel, coal, wind and solar energy generation, which were cheap sources of energy as compared with thermal power.

He said federations, chambers and other trade bodies should be taken on board about negotiations between USA and Pakistan officials on economic & tax matters by sharing information with businessmen who were the key stakeholders in implementation of these decisions.