Pakistan Economy - News & Updates

[owais.usmani]

Swiss companies keen to invest in Pakistan​

Saturday, November 21, 2009
KARACHI: Consul General of Switzerland Martin Benz has said that some large Swiss companies have shown interest in investing in Pakistan, especially in Karachi.

He was speaking at a lunch hosted by the honorary Consul General of Mozambique, Khalid Tawab, here on Friday. A large number of leading businessmen attended the lunch.He said that a large number of Swiss companies were successfully operating in Pakistan, especially in pharmaceutical business and made huge investments.

He informed the businessmen that Switzerland has already started issuing Schengen visas for European countries. This visa is valid for three years, he added.Khalid Tawab urged the Swiss Consul General to remove hurdles in the way of issuing visa to Pakistani businessmen and industrialists to further strengthen bilateral ties amongst the private sector and promote investment.He also urged him to encourage Swiss businessmen to invest in energy sector projects, especially coal based projects in Pakistan, to end power shortages.


Swiss companies keen to invest in Pakistan

 

[Omar1984]

Punjab set to lead in IT
​

THE Punjab is set to take a lead in computer technology, as the provincial government has vigorously started the process of establishing computer labs in its schools with an aim to make every student fully computer literate.

In the first phase it has established computer labs in 4286 of its schools each equipped with 15 seats comprising three desktops Personal Computers and 12NComputing virtual desktops that will impart training to over three million students annually.

Experts say that introduction of computer labs in the government schools will have a contagious impact. It will force the low end private schools to establish at least similar if not superior computer labs. The Punjab government may even make it mandatory in the next few years for the registered private schools to have computer labs. The introduction of computer knowledge among the children will increase the internet use in the country and expose the unexplored talent of millions who have remained deprived of this modern technology.

The idea was conceived last year by the planners of the Punjab government, and the budgetary allocations were made in the provincial budget for 2009-10. The News found that the original idea was to procure 15 desktop PCs for each school. However, the government was able to save Rs1.8 billion from its budgeted allocation by adopting the NComputing technology.

The NComputing solution includes both the virtualisation software (vSpace) that creates the “virtual” sessions inside a PC or server, and the thin-client devices that connect the user’s monitor, keyboard and mouse to the shared computer. Thus one desktop PC can be connected with 4-10 virtual desktops. Thus instead of buying 64290 desktop PCs, the government procured 12858 PCs and supplemented the balance 51432 seats with NComputing devices.

Punjab Government’s IT Labs project can change the computing environment, especially in emerging economies like Pakistan. The decision to deploy this IT labs project establishes the Punjab government as an innovator in educational computing in Pakistan and a model for other governments, considering similar projects.

This project has been successful due to the key factor that the Punjab government is determined to provide maximum number of computer seats at a minimum cost. Through this IT Labs project the Punjab government will not only save nearly Rs. 1.8 billion in up-front and Rs.10 million per month in ongoing costs which translates into more than 360 million over the project life of three years.

The cost will be saved on energy consumption that 64290 desktop PCs will have consumed. One desktop PC consumes 100 watts of electricity per hour. A virtual desktop installed through NComputing device will consume only 10 watts of electricity per hour that will translate into saving of Rs10 million per month at current electricity rates or Rs 360 million in three years.

NComputing’s desktop virtualisation technology has now become a part of the lives of millions people across the world.

This technology has revolutionised the education system in Macedonia, where every student in that country has a computer at his desk. Similarly in Andhra Pradesh, India, the government deployed NComputing to provide computing access to 1.8 million schoolchildren throughout the state.

In Pakistan only few highly expensive schools provide each student with a separate computer desk. With the introduction of Ncomputing technology the time is not far when many schools will be doing that. They will simply require for a class of 30 only two desktops and two Ncomputing devices, having 15 virtual desktops each to provide one terminal to each student and the teacher. The learning process will accelerate.

 

[Omar1984]

US to help Karachi overcome power shortage
​

The city was abuzz with business-related programmes last week including the visit of US consul general and promotion of small and medium industries.

US Consul General Stephen G Fakan attended a reception at the Hyderabad Chamber of Commerce and Industry but not at the chamber’s secretariat but at a club obviously due to security reasons.

In his remarks, the diplomat said the US government wanted to enhance contacts with the people of Pakistan and the US was also supporting Islamabad in the power generation sector. Karachi, the country’s industrial hub, would become self-sufficient in power generation, he added.

He said US companies were also helping in dairy product processing and technologies were being provided in that regard. He proposed the HCCI should support scholarship for students who could get education in the US for transfer of technology, adding the US consulate would support such an initiative.

“Modern technology is a prerequisite for making the products acceptable worldwide,” he said.HCCI President Azizuddin Arain suggested that US companies should invest in power generation, construction, coalmines and food processing and a joint venture should be started.

Other participants of the meeting representing various business sectors said US companies should invest in Hyderabad because of its satisfactory law and order situation.The diplomat also held a separate meeting with District Nazim Hyderabad Kanwar Naveed Jameel, who briefed him about the development work and initiatives for economic activities in the city.

Small and Medium Enterprises Development Authority’s Sindh Manager Mukesh Kumar also visited Hyderabad during which he announced that a glass products design and development centre was being established for the glass industry of Hyderabad. “The centre will also impart free training to glass industry workers,” he said.

The centre is being constructed in collaboration with the Sindh Small Industries Corporation at the SITE area of Hyderabad. It will help introduce new and diverse glass products.

Project Manager Syed Asif Ali Shah said the development centre would start running by June next year and would not only provide information and training but would also help reduce unemployment.

Meanwhile, Sindh Industries Secretary Ali Ahmed Lund, while examining SMEDA projects in Hyderabad, said the authority’s role in the development of industries was praiseworthy.

He assured SMEDA officials that the provincial government would cooperate and support these projects. At another reception, the HCCI president said participation of delegates in international exhibitions and trade fairs would help boost business prospects of Hyderabad.

journalistadeel@yahoo.com

 

[ajpirzada]

Rice export likely to surpass target

* TDAP, REAP making plans to export 4 million tonnes of rice

By Moonis Ahmed

KARACHI: The rice export of the country is likely to surpass the target of $2.5 billion set for the current fiscal year 2009-10, as the Rice Exporters Association of Pakistan (REAP) following its strategic policy has started joint efforts to boost exports with different trade authorities.

Recently, REAP held a meeting with Syed Muhibullah Shah, Chief Executive of Trade Development Authority of Pakistan (TDAP), in which the commodity export plan was reviewed and discussed, Rafiq Suleman, Vice Chairman REAP said.

He said that the meeting discussed ways and means of increasing export of Basmati, IRRI and parboiled rice from Pakistan to international markets. The meeting noted with satisfaction that rice exports had risen to take second position in export earnings for Pakistan after the textile sector.

The meeting reviewed the position of existing rice stocks as well as the increased production expected from the new crop coming in the market. “The TDAP and REAP agreed to work out a joint strategy for achieving export target of 4 million tonnes of rice,” Suleman said. TDAP would provide full support to REAP in its efforts to achieve this export target.

Rafiq said that during last four months of the current fiscal year 912,487 metric tonnes non-basmati rice worth $35.59 million has been exported while basmati rice worth $30.64 million has also been exported to different countries.

“Our estimate suggests that hopefully we will end the season by exporting more than $2.5 billion worth of rice,” he said.

Moreover, the State Bank of Pakistan has allowed rice exporters one-time facility of getting financing up to 100 percent instead of 85 percent of the value of firm export order in order to facilitate domestic rice procurement process for exports.

According to that facility the exporters would be required to make shipments equivalent to 100 percent instead of 117 percent against refinance availed for 270 days from the export of eligible commodities. However, he added that this relaxation would be available to rice exporters only for the current 2009-10 fiscal year.

He appreciated the 100 percent financing facility from SBP saying that the step taken by the central bank would have a very good impact on the exports.

He informed that during last week around 103,000 metric tonnes rice worth $37 million has been exported to far-east countries and Saudi Arabia and Dubai.

The federal government has prepared a five-year strategy for development of agriculture, industrial and services sector on a sustainable basis.

He said that under the proposed plan the production of rice would be enhanced to 7.5 million tonnes from existing 6.5 million tonnes by the year 2015 and new markets for the export of rice would be explored.

Daily Times - Leading News Resource of Pakistan

 

[ajpirzada]

Production target achievable as ginneries receive 10.43m bales

By Razi Syed

KARACHI: Around 10.43 million cotton bales reached at the ginneries till December 1 2009 making the prospects for achieving the production target of 12.10 million cotton bales brighter.

“The crop season will end by the February 2010 while last year stocks stands around 1.85 million bales till December 2, 2009”, member of FPCCI Cotton Committee, Ghulam Rabbani said Thursday.

He said the lint price crossed Rs 4,400 per maund on Tuesday as the leading buyers made purchases on sensing higher price of the commodity in the international market and better grade of domestic cotton.

According to fortnight arrival report by Pakistan Cotton Ginners Association (PCGA), textile sector during period specified, purchased around 8.85 million cotton bales, private sector exporters bought 627,018 cotton bales while Trading Corporation of Pakistan remained inactive as a second player in the market refrained from participation.

He said the Central Cotton Committee first estimated the cotton production for the year 2009-10 at 13.36 million bales.

The price of cottonseed (Phutti) is likely to touch another high level in the country on back of increasing demand and lowest prevailing prices in the international market.

The higher price of the cottonseed will push the cotton prices further up in next coming weeks, he said.

The cottonseed price remained Rs 2,200 to 2,300 per 40 kg in the country and is expected to cross Rs 2400 per 40 kg, he added. He said the cotton prices in Pakistan were still 20 percent lower in comparison to the international market as today cotton in domestic market was available at around Rs 4,300 per maund.

The New York Cotton prices touched around 76 cents per pound while China, India, Korea and Bangladesh are eager for Pakistan’s lint as they consider it the best lint in international market with lower price.

He said the arrival of cottonseed would continue for another month and crop size could be determined by December-end when the arrival would become slower.

Regarding demand from some textile sectors to ban raw cotton export he said, “The government should take up this matter seriously and convene a joint meeting of all stakeholders in order to resolve the issue amicably.”

“Our domestic coarse yarn is still cheaper in the global market with high quality and available at local market around Rs 32 per pound,” Rabbani said.

He said in open market economy, there should not be any ban on export or import except ban on import of luxury items.

Around 75 percent of local yarn is used by the value addition sectors in the country and only 25 percent coarse yarn is exported to China, Sri Lanka, India, Bangladesh, Indonesia and Thailand.

Daily Times - Leading News Resource of Pakistan

---------- Post added at 04:17 AM ---------- Previous post was at 04:16 AM ----------

gud news comin on the agriculture front atleast. earlier we had a bumper crop of weat

 

[white_pawn]

Rice, sugar prices start falling ​

KARACHI: Prices of various varieties of rice have declined by Rs2 to Rs10 per kg, while supply of sugar from the mills has resulted in some stability in its wholesale rates.

A wholesale rice trader said that the price of a normal variety fell to Rs48 from Rs50 per kg, while Basmati (ponia) rice is now available at Rs45 as against Rs50 earlier.

He said the new 386 Punjab variety now sells at Rs35 as compared to Rs40 per kg, Kernal Basmati price fell to Rs75 from Rs80 per kg, while Kernal special Basmati rate has declined to Rs90 from Rs100 per kg.

A retailer said that Kernal Basmati super rate is now tagged at Rs120 as compared to Rs125 per kg. Irri-6 price fell to Rs24 from Rs26 per kg while Basmati sela rate plunged to Rs95 from Rs115 per kg.

Shopkeepers said that the prices had declined owing to some declining trend in rice exports from July onwards. As a result ample supplies of various varieties of rice had arrived in the local markets.

Figures of Federal Bureau of Statistics (FBS) gave a dismal picture of rice export. Pakistan’s total rice exports (basmati and others) fell by 33.4 per cent in value during July-Oct 2009, fetching only $537 million (809,872 tons) as compared to $806 million (787,222 tons) in the same period of 2008. Basmati exports fell by 51 per cent in value and 33 per cent in quantity to $240 million (228,991 tons) in July-Oct, 2009 as compared to $488 million (342,350 tons) in the same period of 2008.

Exports of other varieties stood at $296 million (580,881 tons) in July-Oct 2009, as compared to $318 million (444,872 tons) in the corresponding period of 2008.

However, vice-chairman Rice Exporters Association of Pakistan (Reap), Rafiq Suleman said exports had been going up. He claimed that during July-Nov 2009, non-basmati exports went up by 32 per cent to 993,617 tons as compared to 751,770 tons in the same period of 2008.

Basmati exports, however, went down slightly by six per cent to 372,686 tons during July-Nov, 2009 as compared to 398,327 tons in the same period of last year.

Rafiq added that as exports are picking up, total exports of rice in the current financial year is likely to achieve target of $2.2 billion while in the last fiscal year, exports fetched $2.04 billion.

Sugar

The wholesale sugar price is now quoted at Rs51-52 per kg as compared to Rs58 per kg a month back but the retailers are not ready to pass on this impact to the consumers.

Majority of the retailers are charging Rs60 per kg in many areas, while some are demanding even more than Rs60 per kg.

Wholesalers said if the supply of sugar from the sugar mills improves further in coming days, the rates would further fall.

DAWN.COM | Business | Rice, sugar prices start falling

 

[white_pawn]

Ports record 10pc growth despite recession​

KARACHI: Minister for Ports and Shipping Babar Khan Ghauri said on Saturday that due to financial crunch many ports around the world recorded a negative growth but Pakistani ports overall achieved 10 per cent growth.

He said that delay in developing link roads and railway line with hinterland kept the Gwadar Port non-functional for a long and ultimately the present government on the directives of the prime minister began to handle public sector cargo. However, the minister stressed that the Gwadar Port should be used for transshipment and for this purpose the government had already started to acquire surrounding land required for the port.

Babar Ghauri was speaking at the inauguration of the PICT Bridge (phase-I) and said that the federal government would not have any objection if the provincial government like to run the Gwadar Port.
He said that it was the right of the people of the area to benefit from any such facility and the benefits of all the natural resources should first go to the local people.

The minister was pleased to know that the Pakistan International Container Terminal (PICT) owned by a Pakistani company has achieved fabulous growth of 200 per cent last year and had also achieved all development targets much ahead of schedule. He said presently there were three container terminals operating in the country, two are run by well-established and reputed foreign operators but the PICT is being run by a Pakistani company, which had performed well.

However, the minister felt unhappy over the present state of affairs of many institutions and said that a desert country like Dubai only 90 minutes away from Pakistan developed so fast that it became icon and trade hub of the region. But Pakistan which was better placed and at the time of independence got fairly large developed infrastructure is presently lagging behind and most of ‘our institutions have deteriorated’. Capt Haleem Siddiqui, chairman PICT said that the terminal was fully financed by IFC and Opec Fund and local bank is involved in funding this project.

He said the terminal had installed its own scanner and have its power generation system. All equipments which were supposed to be installed much later had been already included in the inventory due to rapid growth of the terminal. Nasreen Haque, chairperson KPT speaking on the occasion said that the Karachi Port is the premier port of the country and has undertaken flagship project of deep water container port with 18 meter draft.

DAWN.COM | Business | Ports record 10pc growth despite recession

 

[Omar1984]

Food Security: Speakers stress for more investment in NWFP, FATA


ISLAMABAD: Experts have stressed for increased investment in militancy-hit areas of NWFP and FATA for ensuring food security, which has taken a jolt in the aftermath of the operation against the terrorists.

The World Food Programme (WFP), and government of NWFP arranged a consultative meeting on 'Planning Households Food Security in NWFP and FATA'. Experts stressed for provision of quality seeds and fertilizer as well as other important inputs for enhancing agriculture production in these affected areas.

The province along with FATA areas produced only one third of its food requirements despite the fact that great potential existed for increasing food production. There was inability on part of provincial government to reach farmers with sufficient supply of seeds, fertilizers and other agri related machineries. However, the government has shown its seriousness regarding food security by enhancing allocation for this sector i.e. Rs 715 million in 2009-10 from Rs 315 million in 2008-09. Provincial Relief, Rehabilitation and Settlement Authority Director General Shakeel Qadir said the provincial government is constructing storehouses in different parts for keeping strategic reserves of food items. "We feed 2.5 million internally displaced persons (IDP) of Swat and Malakand in 2009 but the challenge is still not over," he maintained. Now, the South Waziristan IDP problem has arised, which requires emergency assistance.

For ensuring food security at provincial level, the NWFP government is initiating vulnerability assessment survey soon, which would help the International Financial Institutions for assisting the targeted people. The NWFP government is going to initiate huge agriculture related programmes with the help of Italian government with a cost $3 billion. About safety net, Shakeel said the NWFP government has already initiated Bacha Khan Poverty Alleviation program, and was providing relief activities totally different that of Benazir Income Support Programme (BISP). Under Bacha Khan program, he said multi-Sectoral approach the health, education and other social activities were carried out through involvement of local community.

Additional Secretary FATA, Habibullah Khan speaking on the occasion said that the FATA was passing through difficult scenario in respect of security and food concerns. He said that FATA was in dire need of humanitarian as well as food assistance. Despite security concerns, a number of line departments as well as international organization including WFP and others were working there. Following these organizations, he stressed for other organisation/departments to work there directly as it was in dire need. The prices of food items were much higher as compared to other parts of NWFP and rest of the country. A number of projects worth $39.04 million are being carried out in NWFP/FATA through financial assistance of EU, and others international organisations.

The speakers were of the view that producing 24 million tonnes of wheat was not a sufficient indicative for food security. Rather it is the purchasing power of the people which is a better measure of food security. The meeting was informed that vulnerability to food insecurity emerged as an active subject of public debate in Pakistan in the aftermath of the sharp rise in food prices in 2007-08, with food inflation touching nearly 30 percent. Within the subject of food security, attention has begun to move from traditional supply issues to include aspects that determine the ability to access and the ability to absorb food. Further, greater interest was now being focused on hunger and malnutrition, in particular. The evidence was clear on the regionally differentiated nature of the food security problem within Pakistan, with higher degree of food insecurity, including hunger and malnutrition, in the western and southeastern parts of the country. The speakers said that food security was determined by three factors; availability, access and utilisation (absorption). Availability of food was a necessary, but not a sufficient condition for food security. Sufficiency was provided by fulfillment of access and absorption conditions. Availability, access and utilization could be adversely affected by shocks from economic factors, natural disasters or conflicts. ijaz kakakhel

 

[Omar1984]

‘Marble exports to cross $62m by end of December’


KARACHI: The exports of all kinds of marble products will cross $62 million by the end of December 2009, All Pakistan Marble Mining Processing Industry and Exporters Association (APMMPIEA) said Monday.

Around 15 percent growth is expected in the marble sales-both local and international- with local sales contributing nine to ten percent.

"The growth and export depends on the back of construction boom in Middle East and increase in demand from India," chairman, businessman group of APMMPIEA, Sanaullah Khan said.

He said country witnessed around 60 percent increase in export during June-July 2009, which stood at $31.9 million as compared with $19.9 million during 2007-08.

"Export to Dubai and other Middle East countries including Saudi Arab increased as compared to export to USA and European nations during this period," he added.

Demand from India alone is around more than one million dollar every month as India possesses granite but does not have any marble reserves.

He said Federal Minister for Industries and Production, Manzoor Ahmed Wattoo also appreciated the efforts of stakeholders and Pakistan Stone Development Company (PASDEC) for enhancing export.

China is the largest importer of chromite. "It is exported to China at Rs 45 per kg but due to disturbance in the tribal areas our export is jolted," he claimed.

Chromite is a black colour stone and contains around 55 percent steel properties and used in steel making.

He said presently export orders of marble products including tiles and slabs to Middle East, USA, China, Italy, Hong Kong and South Korea are in the pipeline.

There is export potential of about $1 billion in the marble sector. Realising the potential in marble and granite sector, the last government approved in principle the project relating to the establishment of 10 model quarries, two machinery pools and four common facility training centres.

The marble products export was hit by load shedding, as it could not meet set target of $ 60 million in July-June 2009.

Mining and quarry sector contributes nearly 0.6 percent to Pakistan's Gross Domestic Products (GDP) with an estimated value addition of more than Rs 16.5 billion.

 

[Omar1984]

KPT development commitment reaches Rs 60bn in FY ‘09


KARACHI: The Karachi Port Trust (KPT) in its centuries old history has never seen a development hyperbola as is being implemented now with its development commitment and contracts during the current financial year totalling to an estimated Rs 60 billion.

This was stated by KPT Chairperson Nasreen Haque on Monday. Crediting the Ports and Shipping Minister Babar Ghouri for these outlays, Haque said KPT is pursuing the land lord port doctrine which helps to better compete with the regional ports and meet the ever growing challenges of the International and Regional Sea-Trade.

An example of success of the landlord port strategy is PICT, which has made remarkable progress since its inception, she pointed out.

She explained that a port represents a collection of physical facilities and services designed to serve as an inter-model point between land and sea transport.

The awareness of actual and potential market possibilities and requirements, flexibility, responsiveness, reliability, friendliness, ancillary services, logistics etc, to mention only a few are nowadays important requirements of the market, she added. app

 

[Omar1984]

First session of Overseas Pakistanis Forum: Overseas Pakistanis extend full support to Pakistan's challenges


DUBAI: The first session of Overseas Pakistanis Forum, organised by Pakistan's Ambassador at large Javed Malik and chaired by Federal Minister for overseas Pakistanis Dr Farooq Sattar concluded here on a high note with the overseas Pakistani community expressing their full support to their homeland in these challenging times.

Delegates from UAE and some middle-eastern countries also took part.

"The forum provided a platform for the overseas Pakistanis in the region to directly interact with the decision makers, and therefore we invited the federal minister for overseas Pakistanis to listen to their issues," explained Malik who is leading this effort.

Presidents of all Pakistani associations and business councils in the UAE were represented in the forum and took part in the interaction. The forum started with a presentation by Malik in which he highlighted the issues being faced by overseas Pakistanis. He was critical of the fact that successive governments have wrongly stereotyped the role of overseas Pakistanis only as workers who can simply send remittances. This is not all that they are capable of doing, times have changed and Pakistanis living abroad have acquired positions of affluence and influence, they have gained skills, professional training and resources and many other features in the most influential and rich list of their host countries. All of them are keen to play a role in supporting their country, but there is no framework that allows them to do this.

They often feel like they are second-class citizens in their own countries. This culture needs to change, and the government must review its policy on overseas Pakistanis as a whole. He also made recommendations on how further opportunities of employment abroad can be utilised to the maximum if adequate training is provided to overseas workers before leaving the country.

Speaking about the issues of Overseas Pakistanis in Dubai, he said that as the population of Pakistanis has increased in Dubai their needs have changed and increased. The Pakistani Schools are not up to the standard and need urgent attention of the Minister and the OPF in improving their standards. Similarly, a Pakistani College and University is greatly needed. He also made the case for establishing a Pakistan Skills and Information Centre, which would operate under the auspices of the OPF to provide facilities to overseas Pakistanis residing here, the centre would also have an Overseas Pakistanis Business Club, which would allow business networking and provide investment advice to those who want to invest in Pakistan through a structured system.

He also urged the Minister to set up a working group of bankers and finance professionals to work out a fast and transparent way of sending remittances that give a sense of confidence to the expatriate workers, as this would at least double the remittance amounts. The issue of a special housing scheme for Pakistanis living in the UAE also came under discussion.

Speaking on the occasion, Dr Farook Sattar said that he has taken into account the points raised and called on the community to look at the possibilities of public-private partnership opportunities whereas the government would extend its support to the initiatives raised in today's forum. He said that he has high hopes from this forum as it provided him with the advice and the consultation towards issues being faced by the communities at present. He called the overseas Pakistanis a ray of hope for Pakistan and appreciated their role in supporting their country in these challenges. He expressed his full support to the recommendations being made on the forum by its organiser Malik and said that he will ensure that these recommendations are followed and implemented. Prominent Pakistanis based in the UAE were included in the OPF, which was largely attended by businessmen, professionals, academics, and officials of OPF and Pakistani embassies. The next session of the Forum will be in London in March 2010. pr

 

[Omar1984]

Pak, German firms sign MoU for solar project


KARACHI: A well-reputed German solar company Azur Solar GmbH has signed a Memorandum of Understanding (MoU) with Raza Impex Pvt Ltd Pakistan during the visit of the Prime Minister Yousuf Raza Gilani to Germany. According to the Board of Investment (BoI) on Monday, the signing ceremony was attended by the officials of German Ministry of Economics and BoI officials. The two companies have agreed to enter a joint venture for installation of a 50 megawatts solar power plant in Pakistan. CEO Bernd Sauter signed the MoU on behalf of Azur Solar whereas CEO Zafar Hussain and Managing Finance Partner Khurram Bilal signed it on behalf of Rafza Impex Pakistan. app

 

[Owais]

Remittances rise over 29 percent in first five months

KARACHI (December 11 2009): Remittances sent home by overseas Pakistanis continued to show a rising trend as an amount of 3.832 billion dollars was received in the first five months (July-November) of the current fiscal year 2009-10, showing an increase of 866.13 million dollars or 29.20 percent over the same period of the last fiscal year.

The amount of 3.832 billion dollars includes 0.93 million dollars received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs). In November 2009, an amount of 742.79 million dollars was sent home by overseas Pakistanis, up 19.70 percent or 122.27 million dollars, as compared with 620.52 million dollar received in the same month last year.

The inflow of remittances in the July-November, 2009 period from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to 854.21 million dollars, 797.18 million dollars, 708.35 million dollars, 544.88 million dollars, 408.49 million dollars and 123.90 million dollars respectively as compared to 534.25 million dollars, 767.12 million dollars, 600.25 million dollars, 496.21 million dollars, 188.95 million dollars and 81.02 million dollars respectively in the July-November, 2008 period.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first five months of the current fiscal year amounted to 394.60 million dollars as against 298.39 million dollars in the same period last year.

The monthly average remittances for the July-November 2009 period comes out to 766.52 million dollars as compared to 593.30 million dollars during the same corresponding period of the last fiscal year, registering an increase of 29.20 percent.

During last month, ie, November 2009 remittances from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to 174.98 million dollars, 144.12 million dollars, 134.75 million dollars, 109.65 million dollars, 92.67 million dollars and 21.68 million dollars respectively as compared to 146.16 million dollars, 140.19 million dollars, 105.45 million dollars, 100.74 million dollars, 39.18 million dollars and 15.87 million dollars in November 2008.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during November 2009 amounted to 64.86 million dollars compared with 72.77 million dollars in the same month last year.

It may be pointed out that the State Bank, Ministry of Finance and Ministry of Overseas Pakistanis had undertaken a joint initiative called 'Pakistan Remittance Initiative (PRI)' recently with a view to facilitating the flow of remittances through formal channels. This initiative has started to materialise and remittances through formal channels are showing considerable growth.

Business Recorder [Pakistan's First Financial Daily]

 

[ejaz007]

NWFP talking to US for massive hydel power projects
Thursday, January 28, 2010
By Dilshad Azeem

ISLAMABAD: As federal authorities are bent upon obtaining expensive rental power projects, the Frontier government, on the other hand, has sought massive US investment for much cheaper hydroelectric power in the provincial jurisdiction.

“We are shortly submitting before the US authorities, the power projects, besides identifying sites for maximum electricity from our province having potential of up to 48,000 megawatts (MW),” a member of the NWFP’s special body on energy and power told The News. US Special Envoy Richard Holbrooke, US Ambassador Anne W Patterson and US Embassy Economic Wing’s Ms Robin Raphael are prominent American authorities with whom the Frontier government contacted and “received an encouraging response”.

“In the latest round, we held discussions with Ms Robin Raphael after holding detailed sessions with Patterson and Holbrooke with one-point agenda of developing hydropower resources in our province,” Awami National Party (ANP) Senator Haji Muhammad Adeel confirmed.

Adeel, a member of the provincial special committee on energy and power, has been tasked by Chief Minister Amir Khan Hoti and the ANP to bring in US investment up to the maximum after the provincial industry stood destroyed amid the war on terror.

“I held a meeting with Ms Raphael of the economic wing in the US Embassy on Tuesday and apprised her of discussions with Anne Patterson and Holbrooke who had called for a spade work with her about the electricity projects,” the senator maintained.

Replying to a question, he said the whole roadmap, including potential sites and already worked-out projects, would be presented to her soon after the committee meeting. These hydropower projects with generation capacity from 50-100 MW have the potential to cover a large population of the province, including those in Hazara, Malakand, Swat, and Mansehra.

“We will provide a comprehensive action plan to the US authorities for availing the investment opportunity, as there are thousands of such schemes,” the senator added. The ANP senator said the chief minister as well as his party was fully backing him while initiating the task to explore power projects and clinch heavy investment. “Due to serious financial constraints, our province direly needs such schemes.”

The ANP leaders say once talks start, the federal government would be involved as power is a federal subject. Haji Adeel was optimistic that these schemes would provide employment opportunities for the people of the province. “I do not think we will face any problem,” was his response when asked about the sovereign guarantees of the Pakistani government the investor would require.

“As far as our approach is concerned, we want to give priority to the private sector to avail the opportunities, get their business flourish and ultimately contribute to the progress and prosperity of the province,” Adeel concluded.

NWFP talking to US for massive hydel power projects

 

[ejaz007]

AEDB and GE arranging turbines for wind energy projects

ISLAMABAD: Alternate Energy Development Board (AEDB) has announced on Wednesday that US Overseas Private Investment Corporation (OPIC) and their leading wind turbines manufactures, M/s General Electric (GE) and AEDB have jointly devised a mechanism under which, the OPIC financing would be linked with the GE’s long-term operations and management contracts.

An AEDB statement stated that as per estimates, Pakistan possesses power generation capacity of over 350,000 megawatts through wind energy alone. However, such an immense potential could not be explored mainly due to difficulties in acquiring wind turbines and arranging suitable financing facilities.

After having identified these two major barriers in the growth of wind energy sector in consultation with all the public and private sectors’ stakeholders, AEDB has been approaching various national and international agencies to facilitate the investors in securing required finances and wind turbines.

In the back drop of US interest in promoting RE sector in Pakistan, as a part of their overall energy assistance programme, AEDB also approached the US public sector project financing agency, OPIC and their leading wind turbines manufactures, GE for offering financing options and arranging turbines for the wind energy projects in Pakistan.

Under this mechanism, the OPIC financing would be linked with the GE’s long-term operations and management contract, which is scheduled to be presented to the local investors at an orientation seminar being organised today (Thursday). Over 20 potential investors, interested in setting up wind power projects from across the country are expected to attend. AEDB Chairman and Federal Minister for Water and Power Raja Pervez Ashraf is expected to conclude the seminar. staff report

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