Pakistan Economy - News & Updates

[Hyde]

ya true. but its not very common for ppl to take interest in pakistani market at least in last two years. so be happy.... lol
we have a lot of risk factor involved. if we could somehow control that, which means political stability and no bomb blasts, we will attract lot of investment. taking steps to increase return should be our medium term strategy.
you must be aware of the risk return model, arent u?

of course it is my job Pirzada Saab........ i trade currencies, stock exchanges, gold, silver, oil, shares in companies on daily basis so i understand the risk factor and i usually say trading in KSE is a lot of fun because it is highly volatile and if you are experienced enough you will earn a lot more investing in KSE than investing in DOW Jones. That is because DOW is a stable stock exchange despite the major changes in american economy it only moves a little but here in Pakistan if one bomb blast takes place and peoples come on streets whole market crashes.

I don't trade in KSE but i believe it would a great investment

 

[ajpirzada]

of course it is my job Pirzada Saab........ i trade currencies, stock exchanges, gold, silver, oil, shares in companies on daily basis so i understand the risk factor and i usually say trading in KSE is a lot of fun because it is highly volatile and if you are experienced enough you will earn a lot more investing in KSE than investing in DOW Jones. That is because DOW is a stable stock exchange despite the major changes in american economy it only moves a little but here in Pakistan if one bomb blast takes place and peoples come on streets whole market crashes.

I don't trade in KSE but i believe it would a great investment

will be interesting but very un predictable bec of KSE being less efficient than Dow.
on top of that they must have come up with a dividend-bomb model or CAPM minus probability of bomb blast multiplied with a depreciation of 100%

 

[Hyde]

will be interesting but very un predictable bec of KSE being less efficient than Dow.
on top of that they must have come up with a dividend-bomb model or CAPM minus probability of bomb blast multiplied with a depreciation of 100%

 

[ameer219]

Boosting tax revenues and power supply expansion: World Bank pledges continued help


ISLAMABAD (April 03 2010): Isabel Guerrero, World Bank Vice President for South Asia, on Friday pledged continued support for Pakistan''s efforts to boost tax revenues and to expand the supply of power in the country.

According to a press release of the WB issued on Friday, during a two-day visit to Pakistan, Guerrero called on President Asif Ali Zardari and Prime Minister Yousaf Raza Gillani and key officials, including the government''s economic team, led by the Finance Adviser to the Prime Minister, Dr Hafiz Sheikh, to discuss the economy and vital reforms in the power sector and tax administration.

Ms Guerrero commented on the substantial economic progress since her last visit to Pakistan in 2008. The government has implemented tough economic measures to stabilise the economy. The country''s fiscal deficit has declined and foreign exchange reserves have rebounded.

Continued implementation of these measures will help steer the country back onto a high growth path for significant poverty reduction. Ms Guerrero discussed with the government officials the importance of increasing tax revenues. The country''s tax-to-GDP ratio, at about 10 percent, is among the lowest in the world, leaving the country vulnerable to shocks and dependent on external aid.

"To become independent of foreign aid, Pakistan needs to strengthen its own revenue generation," Guerrero said. "Resources to finance more schools, health centres, roads and other critical infrastructure remain severely limited. The Bank is supporting implementation of the Government''s plan to introduce a national broad-based VAT on goods and services which we have seen bring in substantial additional revenues in countries world-wide."

Guerrero also discussed measures needed to restore the financial health of the power sector and reduce load shedding in the country. In her meetings with officials including Shakil Durrani, Chairman of the Water and Power Development Authority, she discussed the need for actions to increase efficiency and reduce losses.

"The Government has taken bold actions over the last 24 months to improve the financial health of the power sector. Reducing the cost of subsidies in the budget is important. Now the focus is on reducing costs and freeing up idle generating capacity - for example by allocating more gas to the power sector," Guerrero said on the conclusion of her visit.

"The World Bank will provide strong support to expand power supply in the coming years and, at the same time, work with the sector to continue to improve its financial health and quality of services." Guerrero also discussed with the Government the Bank''s upcoming Country Partnership Strategy (CPS) for Pakistan.

Spelling out the priorities in the strategy, Guerrero said the Bank would support removal of constraints to economic growth and the Government''s capacity to better manage shocks to the macro economy and households. Specific support will also be in areas of economic management, education, conflict risk management and mitigation, and social protection, the press release added.-PR

Copyright Business Recorder, 2010

Business Recorder [Pakistan's First Financial Daily]

 

[ameer219]

Index crosses 10,400 points mark



RECORDER REPORT





KARACHI (April 03 2010): The Karachi share market witnessed bullish session on Friday on foreign investors' support, and the KSE-100 index breached 10,400 points level. The index closed at 10,416.52 points level with a gain of 169.75 points. Trading improved significantly and the volume at ready counter increased to 205.629 million shares as compared to 170.343 million shares traded on Thursday.

Market capitalisation increased by Rs 44 billion to Rs 2.951 trillion. Of 370 active scrips, 220 closed in positive and 136 in negative, while the value of 14 scrips remained unchanged. TRG Pakistan was the volume leader with 26.234 million shares and gained Re 0.38 to close at Rs 4.21. SilkBank, Bank of Khyber and NBP increased by Re 0.18, Re 0.47 and Rs 1.20 to close at Rs 3.25, Rs 5.00 and Rs 70.61 with 17.369 million shares, 10.504 million shares and 5.637 million shares respectively. Lotte Pakistan inched up by Re 0.11 to close at Rs 11.17 with 11.065 million shares.

POL surged by Rs 9.49 to close at Rs 244.87 with 9.245 million shares. Engro Corp increased by Rs 9.99 to close at Rs 209.90 with 8.610 million shares. First Capital Sec gained Re 1.00 to close at Rs 9.33 with 7.298 million shares. PTCL increased by Re 0.44 to close at Rs 21.31 with 6.981 million shares. DG Khan Cement lost Re 0.20 to close at Rs 31.62 with 6.386 million shares.

Unilever Pakistan and Rafhan Maize were the highest gainers and increased by Rs 93.31 and Rs 20.27 to close at Rs 3735.25 and Rs 1340.00 respectively, while Fazal Textile and Atlas Battery were the worst losers and declined by Rs 19.83 and Rs 6.64 to close at Rs 380.17 and Rs 213.09 respectively.

Ahsan Mehanti at Shehzad Chamdia Securities said that intense buying was witnessed at the share market as international oil prices crossed $85 inviting foreign interest in Pakistan oil & gas sector, followed by blue chip fertiliser and banking scrips. The political consensus on Pakistan constitutional reforms, expectation of early release of IMF tranche for Pakistan, and support and record rise in global equity markets played the catalyst role in positive activity in the market.

Copyright Business Recorder, 2010Business Recorder [Pakistan's First Financial Daily]

 

[ameer219]

Rental power plant to be inaugurated at Naudero on Sunday: all arrangements finalised


ISLAMABAD (April 03 2010): The Ministry of Water and Power has said that all arrangements have been made to inaugurate first rental power plant of 51mw at Naudero, District Larkana, on April 4. The plant is technically designed to operate on gas turbine generating units with 92 percent power availability factor.

The plant has been assured 12mmcfd gas for five years through Pepco's Generation Company-II, and an SSGC gas transmission pipeline has been linked to the said plant, besides laying of 132 kv transmission line to connect the power so generated to national grid, said a press release here on Friday.

The Economic Co-ordination Committee (ECC) in its meeting held on August 21, 2009 had approved the said project, followed by tariff approval from Nepra within the prescribed period. The Walter Power International's 51 mw rental power plant 'Naudero -One' has been completed at a cost of $91.65 million.

The project shall not only give a boost to Papco's power generation output, but shall also be a major source of economic development of the area, particularly in industrial and commercial sector. The plant soon would be upgraded by addition of another 50 mw, which would help improve power shortage in sizeable areas of Sindh province.

It is understood that energisation of a total of 101 mw of power soon shall lead to attaining another milestone towards the electric power sufficiency of the country-a goal which is on the high priority list of the present government. The plant is to be run on natural gas, and its construction has been completed over a record period of six months after completion of contract obligations by Pepco.

The plant is not only capable to supplying power to over 250 medium sized industries but would also ensure creation of over 100 jobs for technical, skilled and unskilled personnel of the area. What could satisfy the people of the area is that it would meet 2500 agri tubewells' power need which are designed to irrigate 75,000 acres of land that produces 1.2 million tons of wheat and rice besides ensuring stable power to over 1000 average sized villages in the area, the press release said.

It certainly would strengthen an industrial estate based power availability from this plant which not only would create additional jobs but would also help kick-start economic activity in the area that is presently underdeveloped and needs the government's special attention along with an attractive incentive package.

It is hoped that all rental power plants in the country, duly approved by the Cabinet and endorsed by Asian Development Bank audit report would finally achieve the same level of efficiency as IPPs, and the government may, as a policy, consider converting them into IPPs if they would meet the efficiency, affordability and availability criteria.

As per approved policy, these rental power plants would be injecting additional power to Pepco system and the national grid through overseas investment, while the government would continue to look forward to new investors to come and invest in the power sector.

Business Recorder [Pakistan's First Financial Daily]

Copyright Associated Press of Pakistan, 2010

 

[ameer219]

Textile export: $9.7 billion forex earned during 2008-09, National Assembly told



RECORDER REPORT
ISLAMABAD (April 02 2010): Minister for Textile Industry Rana Muhammad Farooq Saeed Khan on Thursday informed the National Assembly that major importers of Pakistani textile products are USA, European Union countries, UK, United Arab Emirates (UAE) and other Middle Eastern countries.

In a written reply to the house, he said $9.7 billion foreign exchange was earned during 2008-09; $10.8 billion 2007-08 and $11.1 billion during 2006-07 through export of textile products. Under Rules of Business, trade is the domain of the Ministry of Commerce including exports.

Notwithstanding, the Ministry of Textile Industry has taken initiatives for enhancing exports of textile products. It included provision of duty drawback @3 percent on garments and payment of the outstanding claims of R&D support. Exports of cotton yarn have been restricted at 35 million kgs per month for all types of yarn for the next 4 months ie March 1 to June 30, 2010.

Other initiatives included continuation of LTEF Scheme by State Bank of Pakistan and initiation, continuation of Stitching Machine Operator Training (SMOT) Scheme and establishment of Garment Cities in Karachi, Lahore & Faisalabad and Textile City at Karachi. The government is picking cost of social security and EOBI expenses of the female workers employed by industry, he added.

Copyright Business Recorder, 2010
Business Recorder [Pakistan's First Financial Daily]

 

[ameer219]

Reform bill good omen for country: Gilani
By Ahmad Hassan
Saturday, 03 Apr, 2010





ISLAMABAD: Prime Minister Yousuf Raza Gilani has said that he is aware of the fact that restoration of the 1973 Constitution through the proposed 18th amendment will increase manifold the responsibilities and powers of his office and nation’s expectations.

In his monthly radio address to the nation on Friday, he said: “Our aim is not to increase our authority and command. We consider the government as a means to serve people.”

The prime minister promised to fully implement the recommendations of the pay and pension commission.

He said the agreement reached by political parties on constitutional reforms was a “historic event” and a good omen for the country.

He said restoration of the 1973 Constitution would be of immense benefit to the common man.

Greater provincial autonomy will change the environment and people’s problems will be effectively solved.

“I assure you that our government will fulfill its duties and responsibilities of serving the masses with more dedication and sincerity,” he said.

The prime minister felicitated the people of the NWFP on the proposed renaming of the province which would meet their longstanding demand.

“Democracy, reconciliation and harmony are the bases on which we can build the edifice of the nation’s great future,” he said.

Mr Gilani said the government realised that problems like inflation and loadshedding were adversely affecting people’s lives.

He, however, said that food prices in Pakistan were much less than in other countries in the region.

He said inflation had dropped from 25 to 13 per cent, budgetary deficit had also decreased and foreign exchange reserves had increased to $15 billion.

“Our government is not only trying to run power generation units optimally, but also encouraging installation of small generators by the private sector.”

He said: “We will continue to respect the decisions of the judiciary to maintain harmony among state institutions and meet the obligations of justice.”

The prime minister said the US had assured Pakistan of providing relief in economy and energy.

“Our government will not hide anything about the talks and parliament will be taken into confidence.

“I again want to reiterate that we are a peaceful nation and desire resolution of all disputes, including Kashmir, peacefully.”

Prime Minister Gilani said Turkey’s President Abdullah Gul had offered help to resolve the energy crisis and several memorandums of understanding had been signed during his visit to Pakistan.

DAWN.COM | Front Page | Reform bill good omen for country: Gilani

 

[sparklingway]

KSE 100-share index at 19-month high on foreign buying
Sunday, April 04, 2010
By Salman Siddiqui

KARACHI: Massive foreign buying, worth $36 million, pushed the Karachi Stock Exchange 100-share index to a 19-month high of 10,400 point-level with oil and gas and chemical sectors outperforming all the other sectors, dealers said on Saturday.

“There were many factors, which kept the interest of foreign investors alive in Pakistani stocks,” said Rabia Tariq, an analyst at JS Global. “Among the leading ones, the presentation of historic 18th amendment package before the national assembly headed the list of positive developments this week.”

KSE 100-share index rose 278.89 points, or 2.75 per cent, on weekly basis to close at 10,416.52 points. KSE 30-index surged 238.06 points, or 2.28 per cent, to end at 10,680.98 points this week.

The oil, gas and chemical sectors outperformed the market with OGDC, POL and PPL gained 4.6 per cent, 4.2 per cent and 2.3 per cent, respectively on the back of rising international oil prices to a 18-month high of $85 a barrel, she added.

Moreover, keen foreign interest was witnessed in Engro which rose by 8.9 per cent this week. Mixed activity was observed in the cement sector following the implementation of ‘inland freight subsidy’ which was confined to companies in the north, she added.

The market began the week with dull sentiments. The status quo remained under the latest monetary policy announced on last Saturday (Mar 27), and news about delay in release of the IMF fifth tranche, together convinced investors to book profits on Monday.

KASB Securities reported that some respite emanated from Moody’s statement that Pakistan’s macro pressures were adequately reflected in ratings and therefore any improvement could pave the way for an upgrade in ratings. In addition, Pakistan’s Eurobond yields also slipped below eight per cent which combined with recent currency appreciation hinted that international perception of Pakistan was apparently improving. These factors convinced foreigners to injected 30-week record high of $35.66 million this week. Ahsan Mehanti, CEO at Shahzad Chamdia Securities, said the expectation of early resolution of circular debt, following the ministry of finance announced to float Rs100 billion Sukuk(bonds), played a catalyst role in the positive activity at KSE.

The overall market capitalisation soared by Rs72 billion to Rs2,951 billion. On the contrary, local investors, both the corporate and individuals, stayed busy in profit sell-off. Among the notables, the individual investors withdrew $14.18 million this week; mutual funds $11.65 million; and banks/DFIs disinvested $8.33 million, according to the NCCPL.

Some political tension over judiciary’s stance to implement its decision in letter and spirit over the annulled National Reconciliation Ordinance (NRO) is said to be the one major reason.

Going forward, foreign flows would remain the key driving factor for the market to maintain its recent enthusiasm, but any slowdown in the same could force the market to shift its focus to thorny issues such as political noise (NRO case), IMF concerns on economy and uncertainty on implementation of Capital Gains Tax (CGT) on shares transaction from Jul 01, added KASB Securities.

TRG Pakistan, Pakistan Telephone Cables, Gharibwal Cement, Unilever Pakistan and Nestle Pakistan were major gainers while Azgard Nine, Lafarge Pakistan, Jahangir Siddiqui & Co, PNSC and Bank of Punjab were major losers at KSE this week.

 

[ameer219]

Pak-Ukraine Trade Centre inaugurated


Business Recorder [Pakistan's First Financial Daily]


MULTAN (April 04 2010): Ukrainian Ambassador, Ihar Pasco inaugurated the Pakistan-Ukraine Trade Center in Chen Tower Multan here on Saturday. Chairman Pakistan Crop Protection Association (PCPA) Haji Atta-ur-Rehman was also present along with him on this occasion. While addressing the ceremony, Ihar Pasco said that southern Punjab is a very rich region especially in the agricultural sector and there are enormous opportunities available in this sector.

Ukrainian Ambassador specially quoted the import of cotton and mango from Multan and said that Pakistani mango and cotton are the best in the world and with the establishment of this Trade Center especially these products would be focused. He said that opportunities are also available in the textile and value added products sector that would strengthen the business ties of both the countries.

Chairman PCPA, Haji Atta-ur-Rehman on this occasion thanked the Ukrainian Ambassador to establish Pakistan-Ukraine Trade Centre and ensured the ambassador that this step would increase the trade opportunities with Ukraine. He said that with the co-operation of Ukraine our region would further prosper in the field of agriculture. He said that with the exchange of fertilisers, high breed seeds and pesticides from Ukraine, per acre production of our lands would increase.

Haji Atta-ur-Rehman said that PCPA is working day and night to take measures to increase the per acre production so that the government's target of wheat could be achieved. He demanded of the government to increase the number of procurement centres of wheat in the province because harvesting season would start from April 20.

Copyright Business Recorder, 2010

 

[ameer219]

USAID to finance: TDAP to open IT centres for women entrepreneurs

KARACHI (April 04 2010): The Trade Development Authority of Pakistan (TDAP), under the funding of the United States Agency for International Development (USAID) is going to open information technology (IT) centres for women entrepreneurs in the country.

To bring the women into the mainstream activities, the Authority is planning to impart IT-related knowledge and development of IT business skills among women entrepreneurs of any business type and size in Pakistan, sources told Business Recorder on Saturday.

The important project, under which the women across the country would be provided IT-related knowledge/training, would be funded by the USAID, they said. TDAP in collaboration with USAID would start the project through temporarily hiring pre-furnished office space on rent, while purchasing a range of required office equipment such as computers, projectors, backup generators, presentation boards, internet connections, software, etc, soon after the budget of the project would be approved, sources said.

They said that in order to avoid initial lengthy process of screening and selection, human resource recruitment firms could be hired which would do the necessary hiring in all regions of Pakistan on defined criteria. Existing trained human resource of TDAP could also be utilised. To ensure success of the project, which is of crucial business nature, qualified and experienced workforce would be hired in respective regions, sources said.

According to sources, USAID would finance premises rent, hiring of faculty, purchase of office electronic equipment's, furniture and stationery and other expenses of the training project. TDAP, they said, would conduct research of existing women entrepreneurs while hiring premises to accommodate the requisite number of students in all regions of Pakistan. It has published a directory of women entrepreneurs with special training courses on export procedures and handholding programs for women exporters.

Besides, they said, the Authority, in conjunction with Women Chambers would assess needs to engage or hire professionals and equipment's to impart requisite training. The professionals would develop training plans, training strategy, advise on duration of training, gather and report training feedback to form a region-wise consolidated report and measure training outcomes. Affiliation with a good IT institute or board or PASHA would also be developed to certificated/diplomas at the end of the course.

The training, they said, is aimed to enable women entrepreneurs to use IT in business activities, learn/manage and use computer-based tools, get knowledge of internet, browsing on internet and access websites of different businesses, create and manage a website for their business and efficiently use computer communication systems. As mostly business today communicate electronically, TDAP, with the help of USAID, is speedily working on the project which, according to sources, would not only help developing IT skills in women entrepreneurs but also boost trade and commerce in Pakistan.

Copyright Business Recorder, 2010

Business Recorder [Pakistan's First Financial Daily]

 

[Hyde]

Its a very good news indeed. I would love to see collaboration between Pakistan and Ukraine. We need to enhance our ties with Central Asian countries to become a major economy in future

 

[ameer219]

Its a very good news indeed. I would love to see collaboration between Pakistan and Ukraine. We need to enhance our ties with Central Asian countries to become a major economy in future

Yes, its a good news indeed,insyallah, we will be able to sign collobaration and probably MoU with other EU states, and then we might be able to request for access to their market.

 

[Hyde]

Yes, its a good news indeed,insyallah, we will be able to sign collobaration and probably MoU with other EU states, and then we might be able to request for access to their market.

we need FTA's with all European countries (for supporting in WoT) and Central Asian Countries (to enhance our ties and use our ports and increase imports and exports in this region) required

 

[ameer219]

Pakistan all set to join TPPA


ISLAMABAD: Pakistan is set to join the Trans-Pacific Economic Partnership Agreement (TPPA) that is being predicted as a ‘free trade area’ and trading block of 21 major trading players of the world, official sources informed Daily Times on Saturday.

New Zealand, Chile, Singapore and Brunei Dar Es Salaam are the existing members of the TPPA and United States, Australia, Peru and Vietnam have already announced their intention to join the TPPA, the sources added. After a long interval, the federal cabinet has authorised the Ministry of Commerce to start negotiations for Pakistan’s joining of TPPA that is expected to cover 50 percent of the world trade, official sources informed.

According to the information obtained from the Ministry of Commerce, the TPPA is a Regional Trade Agreement (RTA) signed by New Zealand, Chile, Singapore and Brunei Dar Es Salaam. The TPPA includes provisions for liberalisation of trade in goods and services and also contains trade facilitation measures such as rules of origin, trade remedies, sanitary and phyto-sanitary measures, technical barriers to trade and protection of intellectual property rights. One of the objectives of the agreement is to create a trading block that would be seen as a model in the Asia Pacific region.

The four original signatory members of the TPPA intend to expand the membership of the RTA. The agreement is open for accession ‘on terms to be agreed among the parties’ by any Asia Pacific Economic Cooperation (APEC) economy or other state. The United States, Australia, Peru, and Vietnam have already announced their intention to join the TPPA. The first round of negotiations to expand the membership of TPPA was scheduled to be hosted by Australia in January 2010. The Australian trade minister while meeting with Pakistan’s high commissioner in Canberra informed that TPPA was a step towards a Free Trade Area (FTA) of Asia Pacific and had suggested Pakistan to join the agreement.

Pakistan has been striving for bilateral FTA with United States, New Zealand, Australia and Vietnam. Pakistan as a part of its ‘Look East Policy’ is also working on a possibility of a FTA with ASEAN on a 10 + 1 basis. However, the responses from partner countries have not been very encouraging. The TPPA, therefore, provides Pakistan an opportunity to pursue market access initiative with Pakistan’s important trading partners and leverage it as a platform to integrate its economy in the Asia Pacific Region.

The proposed expansion of TPPA would create a market that would rival the ASEAN, NAFTA and EC free trade areas. staff report


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