Pakistan Economy - News & Updates

[Omar1984]

Govt likely to allocate Rs 560bn for PSDP 2010-11 ​

ISLAMABAD: The government is likely to allocate Rs 560 billion for the Public Sector Development Programme for the year 2010-11, while last year it was Rs 621 billion, showing a decrease of around 10 percent, sources told Daily Times on Wednesday.

Among the total PSDP (Rs 560 billion) for the coming fiscal year, an amount of Rs 300 billion is likely to be allocated for the projects of federal government funded, whereas, an amount of Rs 260 billion is to be earmarked for provinces to be spent through their Annual Development Programs (ADPs). Last year, the government allocated Rs 421 billion for federal funded development projects and Rs 200 billion for provinces.

Keeping in view the emergent financial position of the country, the sources said the government is trying to reduce funds for PSDP sponsored projects. Majority of the development projects coming under provinces will be transferred to them. Secondly, under 7th NFC award, more funds will be provided to provinces, therefore, more projects will be transferred to the provinces.

The sources claimed that the main objective of the development budget 2010-11 was to meet infrastructure requirement of the country. During the year, the government would provide more funds for important infrastructure projects like Diamer Basha Dam and others.

Due to ongoing war on terrorism and financial constraints, the government has to cut the PSDP 2009-10 by Rs 150 billion or more. Sources said the budget deficit was moving towards 5.3 percent against the estimated deficit 4.3 percent during the year 2009-10, political uncertainty, security problems, higher prices of global prices. Fiscal position of the country was under severe stress and strain, which compelled the government rationalize development budget (PSDP).

The government announced Rs 621 billion PSDP 2009-10, which consists of Rs 421 billion as federal component, Rs 200 billion for provinces. The federal component of Rs 421 billion consists of Rs 21 billion as operational shortfalls and the net federal component of PSDP was Rs 400 billion. With the rationalization process the government would reduce the PSDP by up to Rs 150 billion and the net amount would be Rs 250 billion, showing a cut of Rs 37.5 percent.

However, sources in the ministry of finance told Daily Times that total releases during the current fiscal year would be not more than Rs 200 billion instead of budgetary allocated amount of Rs 421 billion. The sources suggested that the government should approve the realistic size of the PSDP, which could be released by the Finance Division and utilized by the implementing agencies. The strategy of the government to give over-estimated size of the PSDP was tantamount befooling the general public that the government was sincere in public development.

Officials in the Planning Commission claimed that the government could not announce any cut in the PSDP in the current year, but actual realisation would be around Rs 200 billion. Increase in government taxes and unofficial cut in PSDP would help the government to bring down the fiscal deficit to the level already negotiated with the IMF.

The inadequate releases from PSDP 2009-10 funded major four water and power related schemes would further delay in getting 118.16 MW and 644 GW in the national system, sources told Daily Times here on Wednesday. ijaz kakakhel

 

[Omar1984]

50MW wind power project in Thatta soon ​

KARACHI - Chief Executive of Iran- Pak Wind Power (Pvt) Ltd Khurram Sayeed on Wednesday called on Chief Minister Sindh Syed Qaim Ali Shah at Chief Minister House.

He apprised the Chief Minister Sindh about his project which will be undertaken by joint venture with complete loan from his firm.

He further said that they had made survey of Thatta and Jamshoro districts, where these projects are feasible and as a first step, the Wind Power Project will be initiated in Thatta district, for which an area of 600 to 100 acres will be required. He added that 50 MW power will be generated by this project.

He informed that there firm is already running these projects in Iran and their firm is fully equipped with latest technology in wind power concept.

He further said that an amount of $ 200 million will be provided as loan for the project. Chief Minister Sindh Syed Qaim Ali Shah appreciated the proposed Project and said that the Government of Sindh will encourage projects aimed at for power generation so as to meet the shortage of electricity. He added that incentives will be provided to intending investors.

Chief Minister Sindh assured the officials of Iran - Pak Wind Power (Pvt) Ltd that the project will be examined and land required will be provided. He further advised them to process matter through Board of Revenue Sindh & Board of Investment, Sindh for allotment of land.

 

[Omar1984]

CM for promoting investment to eliminate poverty ​

LAHORE - Punjab Chief Minister Muhammad Shahbaz Sharif Wednesday said that promotion of investment was the need of the hour for rapid development of the country and elimination of poverty and unemployment.

A comprehensive programme is being implemented for this purpose, he said while addressing a meeting of Board of Directors of Punjab Board of Investment and Trade presided over by him as its chairman at Chief Minister’s Secretariat here.

Members Board of Directors, Chairman Planning and Development, Additional Chief Secretary and Secretaries of Agriculture, Livestock and Finance departments were also present.

He said that a vibrant and active Board of Investment and Trade comprising government representatives and experts in various sectors has been set up which is not only encouraging foreign investment but is also ensuring provision of necessary facilities under one roof.

He said that Punjab is rich in natural resources which could be exploited for attaining self-reliance as well as development and prosperity of the province.
He said that huge foreign exchange can be earned through export of livestock and agri products to Middle East and other countries.

He said that negotiations are being held with foreign investors for the development of these sectors as well as setting up of a Halal Meat Processing Plant by using modern technology in dairy sector.

Appreciating performance of the Board of Investment and Trade, the Chief Minister stressed the need for promoting public-private partnership.

He said that transparency is the most important element of all projects of investment and this culture is being promoted throughout the province to ensure utilization of every penny of public money for the welfare of the masses.
He directed that a roadmap should be evolved for achieving the objective of investment of one billion US dollars in Greenfield project.

Earlier, Vice Chairman Punjab Board of Investment and Trade, Pir Saad Ahsanuddin gave a detailed briefing regarding investment and promotion of public-private partnership in the province.

He said that special attention is being paid to food processing, corporate farming, dairy development, solid waste management and energy sectors.
Members of the Board also gave their proposals for the promotion of investment in the province.

 

[Omar1984]

Foreign interest in blue chips pushes Karachi stocks 95 pts up ​

KARACHI: The Karachi stock market observed a bullish trading session on Thursday on account of continued foreign investment in telecom, banks and power sectors.

Rise in international oil prices to $83 per barrel also boosted investors’ confidence. The Karachi Stock Exchange (KSE) 100-share index increased by 94.72 points or 0.97 percent to close at 9,879.70 points as compared to the previous session’s 9,784.98 points. The KSE 30-share index closed at 10,361.72 points with a gain of 100.11 points. The KMI 30 closed at 14,897.13 points with a rise of 165.09 points.

Analysts said the market opened in the green zone and this trend remained prevalent throughout the trading session.

The market turnover went up down by 59.96 percent and traded 204.48 million shares as compared with the previous session’s 127.83 million shares. The overall market capitalisation was down by 0.88 percent and traded Rs 2.842 trillion as against Rs 2.817 trillion of the previous session. Out of a total of 410 active companies, 215 closed in the positive zone, 173 in negative and 22 remained unchanged.

“Huge foreign inflows of $44 million in the last 10 days has boosted investors’ confidence,” said TopLine Sec analyst Farhan Seth. “However, some selling by local institutions was witnessed on upper levels but due to higher volumes and expectations of further foreign inflows, selling pressure was restricted.” PTC dominated the volumes on the back of foreign interest in the scrip.

“Strong valuations in blue chips played a catalyst role in the positive activity in the post results announcement session despite renewed concerns over rising circular debt in oil and gas sector and investor concern over rising CPI inflation in the country,” said Shahzad Chamdia Sec senior analyst Ahsan Mehanti.

“High interest shown by the offshore participants in the blue chips infused energy in the local participants,” said Aziz Fida Husein and Co analyst Husnein Asghar Ali. The KSE 100-share index opened in the green zone with a gain of 32.38 points and at the end of the day closed at 9,879.70 points with a rise of 94.72 points.

PTCL was the volume leader with 30.82 million shares as it closed at Rs 20.80 after opening at Rs 20, gaining 80 paisas. Lotte Pakistan traded 30.00 million shares as it closed at Rs 11.48 from its opening at Rs 10.93, rising 55 paisas. staff report

 

[Omar1984]

BOC to invest Rs 2bn to install new plant ​

KARACHI: BOC Pakistan has approved Rs 2 billion investment plan for the largest air separation plant in Pakistan. “Board of Directors of BOC Pakistan Limited accorded approval to the investment plan at an urgent meeting”, company announced at Karachi Stock Exchange (KSE) on Thursday. It announced that new state of the art plant would be located in Lahore and would be capable of producing up to 150 tonnes per day of merchant and gaseous products. The investment will also include distribution equipment required to support the volume growth with existing and new customers. staff report

 

[Omar1984]

Pakistan, Afghanistan to develop communications network, boost trade to US 15 billion ​

ISLAMABAD, Mar 11 (APP): Reiterating that Pakistan-Afghanistan ties were important for regional peace, security and development, the two countries agreed to develop communications network, boost trade to 15 billion by 2015 and enhance cooperation in education, agriculture and energy sector. A Joint Declaration issued at the end of two-day visit of President Hamid Karzai on “Next Steps in Afghanistan-Pakistan Comprehensive Cooperation” expressed determination by the two sides to realize the full potential of their vast human and natural resources for the progress and prosperity of their peoples.

Pakistan and Afghanistan agreed to evolve joint strategies for early implementation of trans-Afghan energy projects, with particular focus on CASA-1000 and Turkmenistan-Afghanistan-Pakistan Gas Pipeline.

The Joint Declaration signed by the two foreign Ministers Makhdoom Shah Mahmood Qureshi and Dr. Zalmai Rassoul agreed on developing a roadmap for strengthening road, rail and air connectivity and upgrade existing facilities.

The two countries agreed to attach priority to undertaking completion of Peshawar-Jalalabad Expressway and completing feasibility study of Peshawar-Jalalabad rail link.

Pakistan and Afghanistan also agreed to undertake joint studies on promotion and facilitation of multi-modal transport to operationalize transport corridors on mutually agreed routes and to expand aviation links and extend bus services to additional destinations.

They also agreed to develop plans of action for customs harmonization and trade facilitation to facilitate bilateral trade between Afghanistan and Pakistan and to optimally utilize the natural comparative economic advantage of the two countries so as to enhance bilateral trade to $ 5 billion by the Year 2015.

The two sides also agreed to establish a Silk Route CEOs Forum, and establish Pakistan-Afghanistan Reconstruction Consortium, pool public and private corporate resources for reconstruction and development.

It was also decided to explore establishment of a Joint Investment Company to undertake joint development projects, including initiatives to develop region’s vast mineral and hydel wealth and also to consider setting up Economic and Industrial Zones.

The two countries decided to enhance the number of scholarships for Afghan students in Pakistani educational institutions from the current 1000 to 2000 and to make special arrangements for female Afghan students.

It was also decided to set up an Institute on Management, Business Administration and Faculty Training in Afghanistan.

Pakistan and Afghanistan agreed to cooperate closely in capacity building of institutions. In this context, Pakistan offered extending assistance to Afghanistan, in setting up new capacity building institutions and upgrading the existing ones, in Afghanistan.

On agricultural sector the two agreed to focus on food processing, consider creation of a Pakistan-Afghanistan Food Bank to strengthen food security, initiate joint research in agriculture and crops substitution programmes.

They also decided to initiate comprehensive dialogue on environmental protection and mitigating impact of climate change.

Pakistan and Afghanistan also agreed to further strengthen people to people contacts, and promote exchanges among intellectuals, parliamentarians, journalists, academia and students.

It was agreed to establish close links among the media including print, radio and television of the two countries and to promote cultural exchanges.

The joint declaration acknowledged the special bond “grounded in history and geography and spiritual, cultural, and civilizational affinities that impart a compelling sense of shared destiny.”

The two countries also reaffirmed their mutual commitment to respect each other’s sovereignty, independence and territorial integrity, consolidate good neighbourly relations, and uphold the principles of the United Nations Charter.

The statement also recalled the Kabul Declaration on Good Neighbourly Relations of 22 December 2002 and the Joint Declaration on Directions of Bilateral Cooperation signed between Pakistan and Afghanistan on 6 January 2009 in Kabul.

 

[Omar1984]

Rupee gains strength vs dollar ​

KARACHI: The dollar lost strength versus the rupee in the interbank market, dealers said on Saturday. The dollar started the week’s trading at Rs 84.64 for buying and after losing strength closed at Rs 84.02 for buying and Rs 84.07 for selling. The rupee incurred a gain of 62 paisas. The euro witnessed mix trend versus the rupee as it started the week’s trading at Rs 115.07 for buying, gained strength and closed at Rs 115.29 for buying and Rs 115.49 for selling. The rupee incurred a loss of 22 paisas. The British currency recorded losses versus the rupee as it started the week’s trading at Rs 127.30 for buying, witnessed losses and closed at Rs 126.96 for buying and Rs 127.16 for selling. The rupee incurred a gain of 34 paisas.

Open Market: The dollar remained low versus the rupee, dealers said. The dollar commenced the week’s trading at Rs 84.70 for buying and after recording losses closed at Rs 84.20 for buying and Rs 84.40 for selling. The rupee incurred a gain of 50 paisas. The European single common currency incurred gains against the rupee, as it started the week’s trading at Rs 114.40 for buying, continued its upward march and closed at Rs 114.70 for buying and Rs 114.90 for selling. The rupee incurred a loss of 30 paisas. The pound sterling lost grounds against the rupee, as it started the week’s trading at Rs 126.60 for buying and after losing strength closed at Rs 125.45 for buying and Rs 125.95 for selling. The rupee incurred a gain of Rs 1.15. staff report

 

[Omar1984]

Karachi stocks upbeat on continuous foreign buying ​

KARACHI: Across-the-board foreign buying at the Karachi stock market during the week boosted the 100-share index above the psychological level of 10,000 points.

The Karachi Stock Exchange (KSE) 100-share index gained 399.70 points or 4.2 percent to close at 10,025.99 points as compared with 9,626.29 points of the previous week.

Analysts said that other major factors that helped the market regain its lost composure and cross the psychological level of 10,000 points were higher international oil prices and rising global capital markets.

The turnover was recorded at 191.59 million shares as compared to 157.22 shares of the previous week, reflecting an increase of 21.86 percent.

“Incessant foreign buying for the sixth consecutive week boosted market sentiments with LPCL, SNGP and SSGC being the star performers,” said JS Sec analyst Rabia Tariq. “Macro data for the month of February was also unveiled during the week with the CPI down at 13 percent, trade deficit at $9.4 billion and remittances at $5.8 billion for the eight months of the fiscal year 2010.”

The latest CPI number for the month of February came in at 13.02 percent, down from 13.68 percent in January primarily due to a decline in oil and sugar prices, shae said and added that moreover, trade deficit for eight months of the fiscal year 2010 narrowed by 19.5 percent to $9.4 billion, while home remittances depicted a declining trend from $668 million in January 2010 to $641 million in February 2010. The improved macro economic outlook led the rupee to appreciate 1 percent to Rs 84.1 in the outgoing week.

LPCL, SNGP and SSGC emerged as the top gainers during the week as they outperformed the market by 18 percent, 13 percent and 11 percent, respectively. The uplift was predominantly driven by a stable political situation in the country, which led to increased foreign interest in the market via hefty buying.

Foreigners remained the net buyers of $29 million for the sixth consecutive week. Since July 2009, net foreign buying stood at $380 million. Banks and individuals on the other hand emerged as net sellers of $14 million and $11 million during the week.

“Intense buying was witnessed during the week on back of intense foreign interest in oil and gas sector and banking scrips,” said Shahzad Chamdia Sec analyst Ahsan Mehanti. “Stronger valuations in oil and gas and banking sector played a catalyst role in the positive activity despite growing concerns over delay in appointment of the finance minister and release of the 4th International Monetary Fund tranche for Pakistan’s economic stability.”

 

[Omar1984]

CDWP to take up 54 projects worth Rs 321.518 billion ​

ISLAMABAD: The Central Development Working Party (CDWP) of the Planning Commission (PC) is likely to take up/recommend 54 projects costing Rs 321.518 billion with Rs 87.296 billion as foreign exchange component (FEC) in its next meeting scheduled for March 18.

PC Deputy Chairman Dr Ashfaq Ahmad will chair it. The meeting will take up national importance projects in different fields including agriculture and food, forestry and wildlife, cultural sports and tourism, environment, education, industry and commerce, science & technology, Higher Education Commission (HEC), water resources, devolution and area development (D&AD), physical planning and housing (PP&H), transport and communication, governance, health, and energy.

The CDWP will consider five projects about agriculture and food worth Rs 12.036 billion with Rs 6.442 billion as FEC, one about forestry and wildlife worth Rs 87.707 million, one about culture, sports and tourism worth Rs 483.298 million, one about environment worth Rs 348 million with Rs 332.50 million as FEC.

The meeting will also consider a single project about industries and commerce worth Rs 8.698 billion with Rs 3.489 billion as FEC, four developmental schemes for science and technology worth Rs 34.685 billion with Rs 2.376 billion as FEC, four projects for HEC worth Rs 16.138 billion with Rs 10.649 billion as FEC and one project for water resources worth Rs 3.789 billion.

The CDWP will take up three projects for D&AD worth Rs 21.898 billion with Rs 14.923 billion as FEC, five projects for PP&H worth Rs 3.048 billion with Rs 161 million as FEC, 10 developmental schemes for transport and communication sector worth Rs 24.162 billion with Rs 13.685 million as FEC, six schemes for governance sector worth Rs 2.105 billion with Rs 608 million as FEC, six projects for health sector worth Rs 102.081 billion, four developmental schemes for energy sector worth Rs 86.821 billion with Rs 34.549 billion as FEC.

The sum-total of all these 54 projects is Rs 321.518 billion with Rs 87.296 billion as FEC.

According to the rules, the CDWP can approve a project valuing up to Rs 1 billion and the projects costlier than it will be sent to Executive Committee of the National Economic Council (ECNEC) for recommendations.

Some of major important projects to be discussed in the meeting are: third 500 KV AES-Jamshoro-Moro-R.Y.Khan and 500 KV Moro-Dadu T/Lines Along with 500 KV New Switching Stations at Moro and Matiari and Extension at 500 KV etc.

 

[Omar1984]

Govt will pay Rs45bn to ease energy crisis ​

ISLAMABAD: The government decided on Friday to immediately release Rs45 billion to Pakistan State Oil, power companies and refineries to scale down rising circular debt which was causing an oil, gas and electricity crisis in the country.

The decision was taken at a special meeting called by Prime Minister Yousuf Raza Gilani to ward off an imminent default in foreign payments against oil supplies.

The prime minister asked the ministry of petroleum and natural resources to present the Pakistan-Iran gas pipeline project to the cabinet on Wednesday.

An official said the finance ministry had been ordered to release Rs2 billion to PSO on Saturday, followed by Rs9 billion on April 2 and another Rs34 billion before April 30 through different sources, including issuance of Rs15 billion term finance certificates (TFCs) to the banking sector.

He said Minister for Petroleum and Natural Resources Syed Naveed Qamar sought permission to allow PSO to discontinue fuel supplies to Hub Power Company, Kot Addu Power Company, other independent power producers and power companies of the Pakistan Electric Power Company for non-payment of dues.

The prime minister did not agree to the suggestion and expressed the hope that the payment of Rs45 billion would greatly improve PSO’s cash-flow position in the short term.

The prime minister ordered that an inter-ministerial committee should meet every week and secretaries of the ministries concerned every alternate week to permanently solve the problem of inter-corporate circular debt.

According to sources, Minister for Water and Power Raja Pervaiz Ashraf said the power companies were facing difficulties because of over-dependence on furnace oil and diesel for electricity generation and non-availability of natural gas.

The prime minister asked the ministries of water and power, petroleum and finance to jointly ensure that maximum gas was made available for power generation.

The sources said that the Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas Company (SSGCL) wanted a three-year moratorium on benchmarks set by the Oil and Gas Regulatory Authority for reduction in ‘unaccounted for gas’ because they were finding it difficult to reduce theft and other system losses.

The proposal was opposed by Ogra which said the gas companies had been given loss-reduction targets a decade ago and still their losses were among the highest in the world. A one per cent loss of natural gas was equivalent to not setting up a large fertiliser plant, resulting in loss of billions of rupees in foreign exchange for fertiliser imports, an official said.

Mr Gilani ordered the ministries, Ogra and gas companies to examine their performance and discuss how the losses could be brought down.

 

[Omar1984]

KESC raises Rs6.3bn in right issue ​

The relentless foreign inflow of funds into the stock market — net buy of $5.98mn on Thursday — raised the aggregate portfolio investment by the offshore investors to a staggering $54mn in just 11 days. - Reuters/File photo


KARACHI: Karachi Electric Supply Corporation has raised Rs6.3 billion by the issue of right shares at 14.5 per cent.

A notice released on Thursday by the power monopoly, followed the close of period of payment/renunciation of rights on March 2, stated that the KES Power Limited -- the overseas parent had fully subscribed to its allotted 1.805 billion right shares issued at Rs 3.50 per share.

KES Power, the private equity arm of Abraaj, the giant firm based in Dubai, holds 72.17 per cent of the KESC stock. The government, being the second largest shareholder with 25.66 per cent of the total shares, also managed to pump Rs2.245 billion of cash into the beleaguered power company, thus fully subscribing to its portion of the right offer.

Minority shareholders subscribed Rs0.232 million against the right offer of 190.1 million.

In the notice at the Exchange on Thursday, KSE stated: “KESP had given an undertaking to subscribe any unsubscribed portion of the right shares of the minority shareholders in addition to its own portion of the rights issue and that remittance process of the shortfall in the minority shareholders’ subscription amounting to Rs190 million has been initiated.”

The company said the process would be completed within 14 business days from the closing date ie by March 22.

The KESC which carries substantial debts and deficit on its balance sheet is banking upon fresh equity to improve its debt-to-equity and liquidity ratios, reduce cost of financing and “enhance profitability for the benefit of all stakeholders.” Abraaj has pledged to pour a huge sum of $361 million in the company, through KES Power, in the next three years.

Foreign inflow

The relentless foreign inflow of funds into the stock market —net buy of $5.98 million on Thursday — raised the aggregate portfolio investment by the offshore investors to a staggering $54 million in just 11 days.

Gross foreign buy stood at $9.51 million, while gross sale amounted to $3.53 million.

Banks reduced their portfolio by net sale worth $4.37 million. The equity market was buoyed by the net purchases by overseas investors, which shot the KSE-100 index up by 95 points to 9,880 on Thursday.

 

[Omar1984]

Japanese Economic Zone to be set up ​

Karachi: Japan Special Economic Zone (JSEZ) will be set up near Dhabeji and Japanese investors will be provided with all facilities and security, said Zubair Motiwala Advisor to Chief Minister Sindh on Investment while meeting a Japanese delegation headed by Gota Yamamoto DCM Japan Embassy, stated a press release.

In this regard a 2000 acre land has been allocated for Japan Special Economic Zone. The JSEZ will be set up 35 kilometers away from Karachi airport and 17

kms from Port Qasim, near a railway line.

He said the Sindh government will give tax holidays and provide foolproof security to the Japanese investors and also briefed the delegation about the investment opportunities in the province.

The delegation emphasized more on bilateral trade between the two countries

and appreciated the JSEZ project and said the Pakistani market had a lot of potential for investment. They suggested that in JSEZ project import of spare parts from Japan should be duty free. Members of the delegation said they will talk to the government so that the project can be started soon.

 

[Omar1984]

Asia becomes largest Pak exports destination ​

Karachi —Expo Pakistan 2010 has succeeded in obtaining orders worth $ 80 million for export of Pakistani products while negotiations for another $ 30 million exports of products are in progress. Official sources having information about the deals reached by Pakistani businessmen with the visiting foreign delegations said that Pakistan has diversified its exports and foreign buyers are fully satisfied with the quality of Pakistani products.

Meanwhile the Chief Executive of Trade Development Authority of Pakistan (TDAP) Mohibullah Shah in an interview with a private TV channel said Monday that Asia has taken the number one position for export of Pakistani products, followed by Europe and the United States. He said this has happened because of diversification of exports due to recession in the western countries. He said we need to be conscious of challenges occurring around us to channel exports to non traditional markets.

Mohibullah Shah said Asia is the largest destination of Pakistani exports for the first time and overtaken Europe and America. The major countries importing Pakistani products are from the Gulf, Middle East, China, Iran, Turkey, Korea and South East Asian Nations. He said demand from these countries is for textile products, gaments, rice, handicrafts, organges and Mangoes. He said Motor cycles and CNG rickshaws manufactured in Pakistan have also been exported to Egypt and East African countries. He said there is also demand in these countries for cosmetic products, marble and granite, fans, cutlery items, surgical and medical equipment.

Replying to a question he said due to Expo Pakistan 2010 volume of business would increase as the visiting businessmen not only talked of trade but investment through joint ventures. He said they have shown interest in Pakistan in many areas including water treatment plants, housing, textile and valu added products, alternative energy, gems and jewelry and electronics. To another question he said Pakistan has been offered 10,000 english language teachers jobs by Yemen and more than 300 professors. He said there is also demand for doctors, nurses from Romani and other European countries.

 

[Omar1984]

Saudi Arabia lifts ban on Pakistan seafood ​

KARACHI: Adviser to Sindh CM Sharmila Faruqui said that Saudi Arabia lifted a ban from import of Pakistani seafood.

Talking to a delegation of seafood exporters at her Sindh Secretariat Office on Friday, she maintained that matters related to export of Pakistani seafood had been finalized with Saudi government officials and Pakistan waters fish and other marine products were being exported to Saudi Arabia and other Gulf states.

The adviser mentioned that several countries had issued health certificates to Pakistan regarding fish, prawn and other marine products. She added that Pakistani seafood were free from cholera microbe or any other epidemic disease while in the past a propaganda was launched that Pakistani seafood were contaminated with cholera microbe but later laboratory tests conducted by Gulf states and other countries had dispelled it and now export of Pakistani seafood was going on to these countries.

Sharmila noted the government has paid special attention to modification of fishing boats and the Sindh government had taken strict measures in this regard. She said the government is providing nearly 75 per cent subsidy to boat owners for modification purpose.

 

[ajpirzada]

Foreign Firms Keen on Investing in Pakistan

15 March 2010 ISLAMABAD — Foreign business and industrial houses have confirmed their plans to continue to invest in Pakistan despite certain difficulties.
These difficulties relate to an uncertain law and order situation on the back of terrorist activities in the country’s western region. But, seventy-four per cent of the foreign investors already operating in Pakistan are interested in going ahead with new investments over the next two years and beyond.

This is indicated in the latest “Perception Survey 2009,” conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), the results of which have just been unveiled. Farrukh H. Khan, President of OICCI, said: “the survey is based on responses from 71 per cent — or 124 out of 181 — of the chamber’s members, representing diverse sectors. It is representative of the sentiments of foreign investors, operating in Pakistan at present.” The pro-investment sentiment according to the similar survey in 2008 was 
76 per cent.

This small decline, is attributable to the rising cost of doing business, continued military fight against terrorism, and slackness in the governance 
standards.

But, the plus point is that “113 of the present investors do not plan to curtail their business due to such concern.”

The chamber surveyed 13 regulatory institutions. Sixty-two per cent respondents are “dissatisfied” with the performance of the electricity supplier Water & Power Development Authority and National Power Regulatory Authority. But, 86 per cent respondents are “satisfied” with the operations of State Bank of Pakistan (SBP), the central bank, Security & Exchange Commission of Pakistan and the Federal Bureau of Revenues. Ninety per cent of them appreciated the working of Pakistan Telecom Authority.

The uncertainty is impacting future FDI inflows, business investment, and expansion. “Most of the companies tend to be conservative as far as bringing fresh capital in 2010.”

Farrukh Khan said: “the law and order is declared as the No.1 challenge to business by 90 investors.” The slowdown in international capital movements following the global financial crunch in 2008, has also translated into a 37 per cent FDI inflow in 2009, compared 
to 2008.

The overall sentiment is quite upbeat. Farrukh Khan said: “the general tone of the investors surveyed and the information they provided is positive.” But, he said that OICCI expects the government to adopt “an effective strategy to address investors’ concerns, if it wishes to bring about a paradigm shift in attracting foreign direct investment.”

Farrukh Khan said that in contrast to the popular perception, “Pakistan has various positives and plus points to offer to investors. Almost 60 per cent of the respondents find the overall business climate to be ‘average’ and 40 percent call it as ‘poor.’”

Corporate governance has to be improved, because 57 per cent of the investors consider it to be ‘average’ or ‘acceptable,’ but, another 10 per cent see it to be “above average” or even “good.”

However, 114 members — or 86 per cent of those surveyed — feel “weak government policy implementation as the chief obstacle to smooth operations of businesses.”

Pakistan is considered to be “relatively better,” but only “eight per cent prefer Pakistan in comparison to other countries, including India, China, and Middle East in the region.

The survey considered that ministries of finance, communications, and commerce are performing “reasonably well,” but the working of the ministry of ports and shipping is viewed 
as “average.”

There are bad eggs, too. Sixty-nine per cent investors described ministries of water, power and health as “the most unpopular,” and their performance as “below average.” Working of ministries of law, Justice and interior, too, is viewed as poor. The OICCI opinions and views are considered to be the most authentic. They provide the best professional corporate guide to potential investors and business partners.

(Views expressed by the author are his own and do not reflect the newspaper’s policy)

Foreign Firms Keen on Investing in Pakistan