Pakistan Economy - News & Updates

[Omar1984]

Pakistani rice export to Malaysia may increase four times ​

KARACHI, March 9 (APP): Malaysia is expected to increase its rice import from Pakistan four times this year.This was disclosed by the Commercial Counselor for Pakistan High Commission Wijiuallah Kundi in Kuala Lumpur.He said that Malaysian Padiberas National Berhad (BERNAS) and its group of companies which are involved in the procurement and processing of paddy, as well as import, warehousing, distribution and marketing of rice in Malaysia have been actively engaging Pakistan to bring about four fold increase in import of Pakistani rice with the objective to diversify its import base of rice and to minimize its dependence on rice import from Thailand and Vietnam.

The Malaysian import of rice from Thailand and Vietnam make up 45.91% and 34.5%, respectively. Currently Pakistan is the third biggest exporter of rice to Malaysia, but it makes up only 4.1% of the total rice import which now have been projected to increase four fold in the year 2010.

The Commercial Counselor said that during the visit of the Minister of Agriculture and Agro-based Industry of Malaysia from 14th to 17th December, 2009 to Pakistan, the Malaysian importers secured many contracts for Pakistani companies for rice import, the trend will continue the year 2010 leading to substantial increase.

The rice varieties of Pakistan which are priced world over and by Malaysia consumers due to their excellent taste, enchanting flavor and healthy nutritious value includes various varieties of Basmati rice including Super, Shaheen and Kernal, Basmati and other varieties includes NIAB, IRRI-9 and IRRI – 6, Broken rice, Rice in the husk, paddy Husked or brown rice both Semi-milled or wholly milled.

In the year 2008, total rice export to Malaysia was valued at RM 110.97 million. However this sector did not perform well in the same year and registered a decline in its share of export to Malaysia of Pakistan goods from 32% to 14% whereas import of rice during first ten month of 2009 was recorded at RM. 57.523 registering a decline of 46.25% from import of 107% in first ten months of year 2008. This declining trend is being harnessed and in 2010 is expected to register substantial increase of four fold.

 

[Omar1984]

Freight train expected to be operational soon ​

LAHORE: Federal Minister for Railways, Ghulam Ahmad Bilour said a Godown-to-Godown Freight Train is being worked out to facilitate the business community and it would be functional as soon as the modalities to this regard are finalised.

Speaking to representatives of the Lahore Chamber of Commerce and Industry on Tuesday he said that Godown-to-Godown Freight Train (from Railway godown to customer’s godown) was being worked out on the demand of the business community and to promote train culture in the country, and all the possible measures are being taken to give a timetable of freight trains to its customers and once the timetable is finalised, it would be implemented at all costs. “All the trains will reach their destination at the scheduled time and Railways would compensate the businessmen who suffer because of any delay of the freight train.

He said Pakistan Railways would soon be starting 24-hour freight service as a lot of businesses were suffering only due to absence of this service.

The Minister gave a patient hearing to all the issues raised by LCCI members and told Pakistan Railways has purchased 75 new locomotives from China to overcome the shortage as Railways needs 410 locomotives daily, and as soon as the new locomotives arrive, the situation would improve considerably.

He maintained that, unfortunately the Ministry is facing different problems, particularly lack of funds to improve the railway system, as Pakistan Railways has been operating on aging engines that need repair or replacement, adding the existing outdated tracks also need to be doubled to make railway journey more safe.

Whereas, LCCI President Zafar Iqbal Chaudhry said on the occasion that the Lahore Chamber of Commerce and Industry was working on three projects including Model Freight Train, Model Passenger Train and a new Dryport, and presentations to this regard have been prepared that would be presented to the concerned authorities very soon.

He added Pakistan Railways forms the lifeline of the country by catering to its needs for large-scale movement of freight as well as passenger traffic. It is a major source of transportation of wheat, coal, fertilizer, rock, phosphate, cement, container traffic and sugar. Being the most effective transport system, it plays a vital role in generating development opportunities. Railways has a definite and unmatchable edge over road for long and bulk haulage and mass scale traffic volume being safe, pollution free, environment friendly and most economical as compared to any other mode of transportation. staff report

 

[Hyde]

@ Omar & to whom it may concern

you follow economic news almost every day, any updates on Karachi Circular Railway or Lahore Rapid Mass Transit?

Thanks

 

[Omar1984]

@ Omar & to whom it may concern

you follow economic news almost every day, any updates on Karachi Circular Railway or Lahore Rapid Mass Transit?

Thanks

Latest news on Karachi Circular Railway:

Circular Railway project hits a snag ​

GHULAM ABBAS Sunday, 24 Jan, 2010 4:01 am


KARACHI : The long-awaited Karachi Circular Railway (KCR) project has hit a snag because of the issue of what sources said "re-lending" of around $1.58 billion by the Japanese government. The transfer of the amount to Karachi Urban Transport Corporation (KUTC) through the federal government would face a 17 percent cut, making the project unviable, sources said.

They said this procedure of releasing funds would face the drastic cut of 5 percent "risk rate" and almost 12 percent "interest rate", making total deduction of 17 percent. Interestingly, they said, the corporation had not addressed this issue since the project was going through different studies during the last few years.

"If the issue of deduction, under different heads, is not resolved timely, the project would face another delay which could ultimately increase its cost," sources said, adding that the government of Japan, which would invest $1.58 billion on revival of KCR to mitigate traffic problems in this metropolis, would issue the funds to government of Pakistan directly.

To address the re-lending issue, sources said, a meeting was held on December 18 in Economic Affairs Division (EAD), Islamabad, but it was yet to be resolved by the concerned authorities. However, they said, it was decided in the meeting that the foreign funds, to be received by the federal government, could be used through Pakistan Railways (PR).

The Ministry of Railway would later release the fund to KUTC, which is the vehicle for the implementation of the project having on its Board-Directors the senior officials of PR, Government of Sindh and City District Government Karachi (CDGK).

An urgent meeting in this regard was needed to solve the issue without any further delay, as the project's cost has already been increased from $872.316 million to $1.58 billion due to the persistent delay, they added. However, Ejaz Khilji, Managing Director, KUTC, said the corporation was seriously considering the re-lending issues and it would be resolved within the next few days.

As KUTC has already handled many issues regarding the important project, the transfer of funds was not a big problem, he added. It is to mention here that the KCR project was to be funded by government of Japan through the Japan Bank of International Co-operation (JBIC). Tokyo has commissioned 100 percent funding for the project under "STEP Loan" at 0.2 percent markup rate for a 40-year payback time, including a 10-year grace period.

The project, with the completion of different studies like Environmental Impact Assessment Study (EIAS) and resettlement action plan etc under the aegis of Japan External Trade Organisation), has already been approved by Executive Committee of National Economic Council (Ecnec).







However, there's a mention in a much recent article that this project will be revived with international help:

http://www.nation.com.pk/pakistan-n...2010/Malirbased-farmers-to-get-agri-land-Qaim

 

[Omar1984]

@ Omar & to whom it may concern

you follow economic news almost every day, any updates on Karachi Circular Railway or Lahore Rapid Mass Transit?

Thanks

Latest news on the Lahore Rapid Mass Transit (sorry for the bad news).

PML-N dumped mega projects, says Pervaiz ​

PML-Q leader Chaudhry Pervaiz Elahi has alleged the incumbent provincial government had abandoned multi-billion dollar foreign-funded projects such as ‘Lahore Rapid Mass Transit System’ and Abu Dahbi Centre at Ferozepur Road due to their inefficiency and lack of vision.

Addressing a press conference, Pervaiz claimed that the execution of LRMTS project would have helped the provincial government address traffic problems, environment pollution and oil consumption. He claimed that the city traffic could have a different look altogether had this project been implemented. The Asian Development Bank and private sector had agreed to put $1 billion each in the project, and the Punjab government $400 million, he added.

He regretted that the current PML-N government has abandoned the project only because it was started by the PML-Q government. He urged media to inform the people about injustices being done to them by the PML-N government. He claimed that he would raise this issue in Punjab Assembly through Opposition Leader Chaudhry Zaheer and Deputy Opposition Leader Ahmed Yar Hiraj.

About the LRMTS project, Pervaiz said it included 97 kilometres of underground and elevated passages. In the first phase, it had linked Hamza Town on the Ferozepur Road to Shahdara. He said his government had planned to complete it before 2011 prior to the schedule of Cricket World Cup in 2012. He deplored that the current PML-N government simply lost interest and let the ADB loan expire in June 2009. The project had the capacity to cater to 35,000 passengers every hour, making it 350,000 commuters in ten hours.

“It is criminal negligence and we are taking our case to the people of Punjab to assess for themselves who was, or is, serving them better,” he said.

Flanked by Ch Zaheeruddin, he said that the party would raise the matter on the floor of the Punjab Assembly.

The project was well studied and thought out. Urban reliance on public transport system in Lahore is almost 60 per cent. In Vietnam, where such reliance was only 20 per cent, it rose rapidly with the introduction of rapid mass transit system, he said.

In India, the rapid mass transit system started in Kolkatta and in Delhi. The Delhi Metro is now the second largest underground rapid transit system in India, he said. Due to the introduction of rapid mass transit system, the Indian society has witnessed a rapid economic, social and cultural transformation. For the financial year ending March 2008, it reported operating revenues of Rs3 billion ($62.89 million), with a profit of $4.12 million.

Lahore, with a population of over 9 million, is the country’s 2nd largest city with a growth rate of four per cent. Its transport system, which has horizontal not vertical growth, is poorly developed and under-maintained. Due to high economic growth during 2002-07, vehicle ownership growth also accelerated leading to increased congestion, poor environment and degradation in quality of life, further exacerbating by diverse traffic mix and lack of traffic and pedestrian discipline. According to an international survey more than 1.35 million passenger trip take place in Lahore daily, he said.

The city is suffering annual loss of $100 million due to the absence of rapid, efficient, convenient, time and fuel saving mode of transportation. It has been a huge set back to real estate development, environmental pollution control and contributed to the flight of foreign capital and international investments, he claimed.

“Every concerned citizen of Lahore must ask the current provincial government what made it dump the project of public welfare on political and personal grounds,” he said.

 

[Omar1984]

Rupee up ​

KARACHI (Reuters) - In the currency market, the rupee ended firmer at 84.51/57 to the dollar, compared with Monday’s close of 84.68/78.

Dealers said there were few import payments in the market, and portfolio inflows had provided some support over recent days. According to official data, foreigners have bought shares worth a net $31.86 million this month. The rupee ended at an all-time closing low last week and hit an all-time low of 85.15 last month.

Dealers said the rupee may firm in the event of more selling by exporters and if external flows started to come in. But the medium-term outlook remained weak. The rupee has lost 0.25pc against the dollar this year after losing 6.17pc last year and a 22.12pc slide in 2008.

 

[NWO]

Rupee up ​

Dealers said the rupee may firm in the event of more selling by exporters and if external flows started to come in. But the medium-term outlook remained weak. The rupee has lost 0.25pc against the dollar this year after losing 6.17pc last year and a 22.12pc slide in 2008.

That is probably due to the insurgency and military operation. Once the fighting slows down, foreign investments will trickle back into the country.

 

[Hyde]

Pakistan-Iran gas pact likely to be inked on Mar 16​

Updated at: 1956 PST, Wednesday, March 10, 2010
ISLAMABAD: Heads of Agreement about Iran-Pakistan gas pipeline project is likely to be signed on March 16, Inter-State Gas Company Managing Director Naeed Sharafat told the National Assembly Standing Committee on Petroleum Wednesday.

Sheikh Waqas Akram chaired the meeting.

The committee was told that there was complete agreement on four of the five-point agreement about the Iran-Pakistan gas pipeline pact.

On this occasion, committee member Hanif Abbasi said that he would himself get a case registered against the Sui Gas officials if people grievances about gas bills were not addressed.

He said that people were paying Rs19.73 per litre oil as tax but nothing was being charged from the Nato for delivery of oil.

 

[Omar1984]

‘Made in Pakistan Products’ exhibition launched
​

ISLAMABAD, Mar 10 (APP): The launching ceremony of the forthcoming ‘Made in Pakistan Products Exhibition 2010’ was held on Wednesday in Rawalpindi. ‘Made in Pakistan, Products Exhibition 2010’ will be held in Kathmandu (Nepal) from May 12 to 16 to promote bilateral trade between the two countries besides promoting Pakistan branded products in that market.The exhibition has been organized by Pak World Trade and Expo Centre with an aim to lead the industrialists, manufacturers, organizations, individuals and the country to export-oriented trade.

Announcing the launching of the exhibition at a function here, CO, Pak World Trade and Expo Centre, Khurshid Barlas said that the centre has recently organized similar exhibition at Chindigarh, India and at Pakistan Pavilion at Dhaka international Trade Fair, which he said had received tremendous response.

He said that more than 65 companies and 125 members of delegation from different chambers of commerce are scheduled to participate in the event.
Speaking on the occasion, Ambassador of Nepal Embassy, Bala B. Kunwar, said that although Pakistan and Nepal were enjoying cordial relations, however the trade relations between the two countries were very nominal.

He urged upon the private sector to explore the trade potential and exploit it for the benefit of both the countries.

He said that Pakistan was producing quality products, however it needed to market these with its own brand. He also lauded Pakistan for helping Nepal in manpower development.

He expressed the hope that the exhibition would help promote trade relations between the two countries and enhance trade volume.

Speaking on the occasion, Acting High Commissioner, Bangladesh, M. Mahfuz ur Rehman stressed the need for enhancing trade relations among the SAARC countries. He urged upon the member countries to rectify the SAARC Free Trade Agreement for the promotion of trade in the region.

He said that the exhibition would not only help promote business to business relations but also people to people contacts.

President Rawalpindi Chamber of Commerce and Industry, Kashif Shabbir while speaking on the occasion stressed the need for promoting Pakistani brand in the international market.

He said that the country was producing quality products however due to lack of brands it had to suffer great losses in terms of currency.

Chancellor, National Institute of Cultural Studies (Lok Virsa) Rauf Khalid, also spoke on the occasion and highlighted the importance of the exhibition.

 

[Omar1984]

FFC finalizes contract for wind power project with Germany company ​

ISLAMABAD, Mar 10 (APP): FFC Energy Limited (FFCEL), a subsidiary of Fauji Fertilizer Company Limited (FFC) here on Wednesday finalized contract with Nordex of Germany for the development of 50 mega watt wind power project. According to the contact, Nordex, a leading manufacturer of Wind Turbines, would be responsible for Engineering, procurement, construction and operation as well as maintenance of the project, said a press release.

The contract documents were exchanged between Carsten Pedersen, Founder and Chief Sales Officer, Nordex and Gen.(rtd) Malik Arif Hayat CE, FFC and MD, FFCEL here.

Arif Alauddin, CEO Alternative Energy Development Board (AEDB) Pakistan was also preset on the occasion.

According to press release, FFCEL would soon file tariff petition with NEPRA for the project and the construction of the project would begin after its approval and signing of Energy Purchase Agreement between FFCEL and Central Power Purchase Agency.

The project, once operational, would help reduce energy shortage by providing cleaner, sustainable and economical electricity.

The FFC further plans to develop and establish more renewable energy projects in the country to contribute towards fulfilling Pakistan’s electricity needs through captive renewable resource.

FFC has already obtained Letter of Intent (LOI) of additional 100 MW Wind Power Projects from AEDB, the press release added.

 

[Omar1984]

German, Italian Investors want investment in Balochistan ​

QUETTA, March 10 (APP): Chief Minister Balochistan Nawab Muhammad Aslam Raisani Wednesday told that German and Italian investors had expressed their interest to invest in Balochistan regarding solar energy and seafood sectors. He expressed these views in a meeting with Minster for State Salim H Mandviwala. Chief Minister Balochistan Nawab Muhammad Aslam Raisani Wednesday said that various sectors in Balochistan including fisheries, seafood, chromite, marble, coals and others had a great charm for investors, adding the provincial government would extend its all out collaboration in this regard.

Talking to the Minister for State for Investment Board Salim H Mandviwala, Nawab Raisani said the Balochistan government wanted local and foreign investment in various sectors including mines and minerals, cotton, fruits particularly olive cultivation. Installation of solar and coal power plants and others.

He regretted that investors would have to face some difficulties when they express their interest of investment, adding the provincial government had pledged to remove all such obstacles.

Senior Minister Maulana Abdul Wasey, Provincial Information Muhammad Younis Mullazai, Secretary Investment Board M Salim Khan, Chief Secretary Balochistan Mir Ahmed Bukhsh Lehri, Additional Chief Secretary Development Qayyum Nazar Changezi and other high officials were present on this occasion.

The CM Balochistan viewed the provincial government had decided to establish shipping yard in order to promote sea food industry in coastal areas of the province. He maintained that the government would welcome investment in solar and coal power production projects.

He lamented that no adequate investment could be attracted in marble cutting industries, adding investment in this sector would boost local economy. He offered the provincial government would provide all possible facilities to investors desirous to invest in Balochistan.

Earlier, Minister for State Salim H Mandviwala said that President Asif Ali Zardari and Prime Minister Syed Yousuf Raza Gilan were keen on investment in Balochistan.

He highlighted that a German investor Group had expressed his interest to install a 50MW solar energy plant in Pakistan and the federal government would provide the site for the purpose in Balochistan.

He mentioned that Italian investors had also expressed their interest to invest in seafood industry in Balochistan.

He added the federal government would provide facilities to foreign investors wanted to invest in Balochistan.

 

[Omar1984]

Turkey show great interest in investing in Pakistan ​

RAWALPINDI, March 10 (APP): Turkey has shown interest to invest in energy sector, sewerage and mega project like metro train in Rawalpindi, President Rawalpindi Chamber of Commerce and Industries Kashif Shabbir said on Wednesday. He was talking to Babur Hizlan ambassador of Turkey in Pakistan here. He thanked the honorable guests for visiting RCCI premises.

Kashif said that Free Trade Agreement (FTA) should be signed between the two countries to foster the bilateral trade activities adding that all the Muslim States should enhance trade relations with each other to curb the prevailing global economic crunch.

The Ambassador said that it is need of the hour to enhance the bilateral trade between the two brother Islamic countries.

He stressed that only true cooperation between the two business communities would play a proactive role in this regard.

Senior vice President Syed Ali Raza Saeed Shah, Vice President Kh. Rashid Waien, former Presidents, Executive committee member and renowned businessmen were also present on the occasion.

 

[Omar1984]

Economy may improve by year-end, says Gilani ​

ISLAMABAD: A meeting of federal ministers and senior finance ministry officials chaired by Prime Minister Yousuf Raza Gilani on Tuesday was informed that the country’s financial position might improve by the end of the year because some friendly countries had indicated that they would provide funds for development projects.

The government had to cut its Public Sector Development Programme by 44 per cent to Rs250 billion from Rs446 billion—because of additional expenditures on security.

The meeting which reviewed the progress on development projects, expressed the hope that partial fulfilment of pledges made by the Friends of Democratic Pakistan might help in carrying out some major projects.

An official told Dawn that a final report on FoDP commitments would soon be submitted by the ministry of finance to the prime minister.

The meeting, attended by ministers for industries and production, ports and shipping and science and technology, minister of state for finance and economic affairs, State Bank Governor, chairman of the Board of Investment, Secretary Finance and chairman of the Board of Revenue, stressed the need for enhancing the capacity of provincial governments for timely utilisation of allocated funds.

It agreed that projects in underdeveloped areas needed to be given priority to bring them at par with other areas of the country.

According to an official handout, the meeting called for speeding up work on mega projects and early completion of the Gawadar-Ratodero road and Gawadar airport.

 

[Omar1984]

Operator hopeful of salvaging $3bn copper venture ​

Tethyan Copper Co. said the authorities were worried about getting a fair deal and also wanted to undertake smelting and refining to ensure the maximisation of benefits. - File photo


ISLAMABAD: The operator of a $3 billion joint venture copper and gold project in Pakistan is hopeful the project will go ahead despite a government threat to scrap it because of misgivings about the share of benefits.

The project is owned by Canada’s Barrick Gold and Chilean copper miner Antofagasta.

The two firms are partners in the Tethyan Copper Co. (TCC) which has a 75 per cent interest in the Reko Diq project in Balochistan and hold the exploration licence for the site.

The provincial government holds the remaining 25 per cent.

Tethyan is finishing up a feasibility study into the site, which could yield 22 billion lb (10 billion kg) of copper and 13 million oz (368 million grams) of gold over the 50-60 year project, and aims to apply for a mining licence within weeks.

But late last year, the provincial government said it wanted to cancel the project, ostensibly to get control of resources in Pakistan’s poorest province where anger over exploitation of gas and minerals is fuelling insurgency.

Peter Jezek, chief executive officer of Tethyan Copper Co., said the authorities were worried about getting a fair deal and also wanted to undertake smelting and refining to ensure the maximisation of benefits.

But Jezek said anxiety about Pakistan’s first world-class mining operation was largely the result of misunderstandings.

“There is a combination of a lack of information and fear of the unknown,” Jezek told Reuters in an interview in his Islamabad office. “The problem to a very large extent is not having the basics of understanding in place.”

“The fear on their side, obviously, is ‘are we getting a fair deal?’”, he said.

The authorities’ proposal to set up a smelting and refining operation was based on a doubtful perception of benefits. “Mining and concentrating actually captures over 90 per cent of the copper chain value, smelting less than 10 per cent ... We have pointed out that the economics of smelting and refining are very poor,” Jezek said.—Reuters

 

[Omar1984]

KSE sees increase in foreign portfolio investment ​

KARACHI: Foreign portfolio investment flooded the capital market in the first ten days of current month when it received $44 million worth of investment. The flurry of the buying activity by the foreigners has been going on for the last few days and signals the return of foreign buying in the local stock market bodes well for the local bourse, which has been feeling a bit of pressure due to implementation of capital gains tax from July 01, 2010. According to local market players, the attractive buying levels have received the attention of foreign funds because their local ones have got panic to some extent due to commencement of the capital gains tax from next financial year. The buying spree by the foreign funds is getting stronger with the each passing days and even on Wednesday foreigners were the net buyer with almost eight million dollars in the market. Market gurus pointed out that discounted prices of the local scripts are cheaper compared to their regional peers as well as the steady progress being made against the militancy have been received well by the foreign investors and are putting their money on the local scripts. Equity analysts said that after month of August and September last year, it is the best selling on the part of foreign investors after having a cautious stance in the latter part of last year and month of January. However, the beginning of month of February brought bonanza for the local market in the form of herds of foreign investors flocking the local market by raising their holdings in the local equity scripts. The share of foreign funds in average daily volumes have also increased to about 12 percent presently against just 3.5 percent few years back, analysts pointed out. According to stock market analyst, if the much-awaited leverage product has been introduced, more brisk buying by the foreign funds has been witnessed. tanveer ahmed