Pakistan Economy - News & Updates

[ameer219]

Pak-Turkey trade to be enhanced to $2b by 2012

KARACHI - Turkish Ambassador in Pakistan Babur Hizlan has said that efforts would be made to enhance the bilateral trade between Turkey and Pakistan to $2 billion by the year 2012 from the current level of
$782 million.

Talking to the media, he described the prevailing volume of bilateral trade between the two brotherly countries as unsatisfactory. The Envoy said that, as a first step, the bilateral trade would be increased to 2 billion dollars by the year 2012.

The two governments, he added, want to enhance this to a five billion dollars mark later on as soon as possible. Babur Hizlan also spoke of the deep friendly ties between Turkey and Pakistan. He also referred to the recent visit to Pakistan by the Turkish President Abdullah Gul.

The Envoy said that, in October last year, the Turkish Prime Minister had also visited Pakistan.

He stated, “Our efforts are aimed at increasing the trade and economic partnership between our two countries.”
Babur Hizlan said that the Turkish Airlines has a flight frequency of four times a week between Istanbul and Karachi and there is a desire to increase it to seven days a week.

“There is also a desire to add new destinations of Lahore and Islamabad,” he said.

The Envoy said that increase in flight frequency would also result in enhancement in interaction of businessmen as well as people to people contacts. “This would have a positive impact on the ties between our two brotherly countries,” he added.

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Business/08-Apr-2010/PakTurkey-trade-to-be-enhanced-to-2b-by-2012

 

[Omar1984]

Telenor brings $2bln FDI ​

ISLAMABAD, April 8 (APP) - The telecommunication company Telenor has brought in US$2 billion Foreign Direct Investment (FDI) into the country and is continuing to contribute in terms of ongoing investments, President and Head of Telenor for Asia Operations said.

Heading a Telenor Pakistan delegation that met Minister of State and Chairman Board of Investment (BoI) Saleem H. Mandviwalla, here Thursday, Vice President and Head of Telenor for Asia Operations, Sigve Brekke, however sought BoIs support in rationalizing the taxation structure for the telecom sector to ensure continuous development of the industry in the country.

He said that the move would also fuel channeling of resources towards infrastructure expansion and provision of move innovative services like easypaisa.

On the occasion, Mandviwalla suggested the Telenor delegation to manufacture mobile handsets in Pakistan and establish their own manufacturing plant.

He elaborated on the salient features of the Special Economic Zones (SEZs) and the benefits that it provides to foreign and local investors with tax breaks, fiscal and financial incentives.

He said that a draft SEZ act has been framed and will be presented in the cabinet very soon for approval.

Chairman BoI assured the delegates of support and cooperation for rationalizing the taxation structure for the telecom sector in Pakistan.

 

[Omar1984]

Pak exports to UK maintain upward trend ​

LONDON, April 8 (APP)- Pakistan’s exports to the United Kingdom (UK) have seen an upward growth of 7.71% with £646,172.469 million worth exports from January to December 2009 according to figures of UK World Trade, released by the Revenue and Customs Office. This positive trend has been achieved despite the fact that British economy was in recession resulting in downward trend in exports from European, Asian and Middle Eastern countries. France was down -14.16, Germany -13.36, Italy -16.82, Saudia Arabia -9.55, Iraq-44.87 and Turkey -8.35. The UK remains among Pakistan ’s top five export destinations with balance of trade in favour of Pakistan .

The new figures showed 7.71 per cent growth when compared with the same corresponding period of January to December 2008.

 

[ameer219]

Telecom sector benefiting economy: Khosa


ISLAMABAD: Arguably, Pakistan seems to have created a friendly business atmosphere lately, as there is a lot of potential to invest in the telecom sector. It’s pretty encouraging that the government is cooperating with cellular companies for achieving the targets for expansion of information technology and telecom sector.

Advisor to Prime Minister for Information Technology, Sardar Muhammad Latif Khan Khosa expressed these views, the advisor sought the cooperation of the company to rebuild telecom infrastructure in Khyber-Pukhtoonkhuwa, which had been badly damaged by the terror activities and added, “Infrastructure is being reinstalled in the Malakand Division after normalcy has turned to the area”.

He appreciated the contribution of the Telenor for providing basic telephony and data services in Malakand Division and said the government wants to spread the benefits of the telecom revolution to all corners of the country.

The Ministry of Information Technology is putting all efforts to promote the development of telecommunication services in un-served and under-served areas of the country. “Telecom services being provided in the country include basic telephony, broadband internet, infrastructure for the services (like Optic Fiber) and Community Tele-centers for those who could not afford the necessary instruments/devices”, the Advisor maintained.

Head of Telenor Asia, Sigve Brekke, while meeting with Latif Khosa, informed the minister that Telenor Pakistan was the 2nd largest mobile operator in the country with largest data coverage and has invested over $2 billion and is willing to invest more in the country.

The advisor assured Sigve Brekke to provide protection and safety and said Pakistan has friendly environment for investment. staff report


Daily Times - Leading News Resource of Pakistan

 

[ameer219]

BenefitTing farmers: Gilani allows export of 2 million tonnes wheat

Wheat prices decline by 35 percent in international market

By Ijaz Kakakhel

ISLAMABAD: Prime Minister Yousaf Raza Gilani on Thursday decided to allow the export of 2 million tonnes wheat in order to avoid the expected wastage or losses of the new wheat crop.

The prime mister took the decision in the light of expected 23.864 million tonnes wheat production for the year 2010 and about 4 million tonnes of carryover stock of the previous year.

The prime minister said that the benefits of the growers and small farmers have to be protected while finalising the policies related to agricultural commodities, particularly wheat.

He expressed these views while chairing a special meeting to review the current wheat stock position and assess the production of new crop. The meeting was held here this afternoon at the PM’s Chamber in the Parliament House. During the meeting it was decided that fiscal and storage space would be created to export up to 2 million tonnes wheat at the earliest.

It was observed that wheat production is good but less than the last year’s production. The efforts of provincial governments and federal institutions in managing last year’s wheat crop were greatly appreciated.

However, rates and mechanism of exports would be decided later on, sources told Daily Times. At present the rate of wheat at international market is $210 per tonne. When the government fixed the wheat support price at Rs 950 per 40 kilogrammes in 2008, the wheat price in the international market was $320 per tonne. The price of wheat in the international market declined by 35 percent but in Pakistan the price remained unchanged.

An official in the Ministry of Food and Agriculture (MINFA) told this scribe that the total storage capacity in the country was 4.5 million tonnes, which is full right now while the procurement of new crop had already initiated in Sindh. The harvesting and procurement process of wheat in rest of the country would begin from April 15 and gradually gain full momentum during the month of May 2010.

Due to limited storage capacity, it would be difficult for the government to maintain the expected huge stock of wheat for a longer period. To avoid expected loss to the stored wheat in open areas, it would be better to export wheat as early as possible, the official maintained. The Punjab food and agriculture minister told a private TV channel that the procurement of wheat in the current season would be slow.

The lower wheat procurement process particularly in Punjab would be a great setback for hard producers in the province and allowing wheat export in the current situation was helpful for farmers so that they might get fair returns for their hard produce, the ministry official maintained.

Federal Minister for Food and Agriculture Nazar Muhammad Gondal, Adviser on Finance Abdul Hafeez Sheikh, Punjab Chief Minister Mian Shahbaz Sharif, Senator Ishaq Dar, Leader of Opposition in NA Chaudhry Nisar Ali Khan, secretaries finance, food and agriculture and Punjab chief secretary attended the meeting.

Sources said the meeting decided that the government would contact regional countries including Afghanistan, Iran and Bangladesh at government level to minimise the expected loss to the government. Another option available with the government was to allow wheat products exports through private exporters at subsidised rates.

Agriculture Developmental Commissioner Qadir Bux Baloch said proper mechanism for wheat exports would be determined in the Economic Coordination Committee of the Cabinet.

The government expects 23.864 million tonnes wheat production. The provincial break up is Punjab 18.240 million tonnes, Sindh 3.651 million tonnes, NWFP 1.184 million tonnes and Balochistan 0.789 million tonnes. Officials in the MINFA told this scribe that total wheat stock on April 4 was 4.33 million tonnes comprising 3.49 million tonnes with food departments of four provinces and 0.84 million tonnes with PASSCO.


Daily Times - Leading News Resource of Pakistan

 

[ameer219]

UK backing Pakistan's entry to a trade scheme: Miliband

LONDON (April 09 2010): British Foreign Secretary David Miliband has said both his country and Pakistan enjoy a very positive and mutually supportive relationship, which would continue in future as well. Talking to the media during his visit to the Islamic Centre in Tooting, south west London on Thursday to support the re-election of Labour MP Sadiq Khan, he said this relationship has burnished and nurtured under the Labour Government.

Responding to a question on Kashmir, he said the UK position on the issue has been absolutely clear. "We support strong and improved relations between Pakistan and India and it is up to them to decide the matter through bilateral dialogues."

Answering another question, the Foreign Secretary said there would be no cut in international aid even though the Labour Government has said that on winning May 6 general elections the public spending would be curtailed to reduce deficit. "We are absolutely committed to meet the UN target of 0.7 per cent of national income going to the international development."

He spoke of the 665 million pounds assistance being provided by Britain over the next four years to alleviate poverty in Pakistan through improvement in education and health facilities. The Foreign Secretary said the UK Government, ahead of a crucial EU conference later this month, is backing Pakistan's entry to a trade scheme, which can bring benefits to it of around 250 million Euros a year.

Miliband rejected impression that vast majority of British Muslims are radicalised. On the contrary he said they are proud and committed British citizens who are getting education, jobs and totally committed to their community.


Business Recorder [Pakistan's First Financial Daily]

Copyright Associated Press of Pakistan, 2010

 

[ameer219]

Warid signs MoU with PIA

KARACHI (April 09 2010): Warid Telecom (Pvt) Ltd country's most reliable cellular service provider achieves another milestone by signing MoU with Pakistan International Airlines (PIA). By the virtue of this MoU PIA will use voice and data communication services of Warid Telecom.

The signing ceremony of this agreement took place at PIA head office here. The MoU was signed between Muneer Farooqui, Chief Executive Officer, Warid Telecom and Captain Aijaz Haroon, Managing Director PIA. Shahid M. Murtaza, GM Corporate Accounts and Enterprise Solutions, Warid Telecom, Asad Afridi GM Communications, PIA along with other senior officials were present on the occasion.

Commenting on Warid, PIA partnership, Muneer Farooqui, Chief Executive Officer Warid Telecom said "PIA is the Pakistan's national flag carrier and we are really pleased for having this opportunity to serve the communication needs of such a prestigious and large scale organisation.

I am sure we will bring PIA an exceptionally delightful experience. Our priorities include 'Quality First' at forefront and we always strive to present the smartest, advanced and customised solutions for our Corporate Sector. Our partnership with Pakistan International Airlines is a great value addition to our Corporate Portfolio. Warid is determined to continuously bring best of the breed communication solutions to optimally serve the communication needs across all segments. I wish Warid and PIA relationship to grow and flourish in years to come, Insha Allah."

Warid's GM Corporate Accounts and Enterprise Solutions, Shahid M Murtaza said "We are proud to be associated with Pakistan International Airlines. Our relationship will prove successful and beneficial for both the organisations. We are delighted to have PIA's confidence in us and we are sure the partnership will go a long way." Managing Director Pakistan International Airlines Captain Aijaz Haroon said "PIA is glad to have Warid Telecom (Pvt) Ltd as its partner in business by way of providing communication services to the national carrier.-PR

Business Recorder [Pakistan's First Financial Daily]

Copyright Business Recorder, 2010

---------- Post added at 07:05 PM ---------- Previous post was at 07:04 PM ----------

'Lot of potential exists in telecom sector for investment'

RECORDER REPORT
ISLAMABAD (April 09 2010): Pakistan has conducive working atmosphere, as there is a lot of potential to invest in the telecom sector, said Advisor to Prime Minister on Information Technology, Sardar Latif Khosa. "We want co-operation of cellular companies to achieve the targets of expansion of information technology and telecom sector," Khosa said in a meeting with a three-member delegation of Telenor headed by Telenor Asia Head, Sigve Brekke here on Thursday.

The Advisor sought the co-operation of the company to rebuild telecom infrastructure in NWFP, which has been badly damaged by the terror activities. He further said that infrastructure is being reconstructed in the Malakand Division after normalcy has returned to the area.

He said Ministry of Information Technology is making all out efforts to promote telecommunication services in un-served and under-served areas throughout the length and breadth of the country. Talking on this occasion, Sigve Brekke said that Telenor Pakistan is the 2nd largest mobile operator in Pakistan with largest data coverage and has invested over $2 billion in the country.


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

 

[ameer219]

US offers support to Pakistani entrepreneurs

ANWAR ADNAN JAFRI

KARACHI (April 09 2010): To a question put forward by Business Recorder, Senior Director for Global Engagement on White House's National Security Council (NSC) Pradeep Ramamurthy said that the US is willing to support Pakistani entrepreneurs, particularly the ones from war-torn areas provided they successfully articulate their challenges. The idea behind such a support is to strengthen entrepreneurs in playing a pivotal role towards community development, he added.

Ramamurthy said this in a web chat on Thursday in Washington DC on the Presidential Entrepreneurship Summit, which was arranged to deepen ties between business leaders, founders and social entrepreneurs in the US and Muslim-majority countries, including their minority population and Muslim communities around the world.

The helping hand comes at a time just after the first ever 'Strategic Dialogue' at the ministerial level took place between the two countries. United States Pakistan Business Council (USPBC) also expressed its strong support for the strategic dialogue. In fact, in a press statement Miles Young, member of the Board of Directors (USPBC) lauded the meeting of US Secretary of State Hillary Clinton with Foreign Minister Shah Mehmood Qureshi. Young minced no words in saying: "Deeper economic ties are an essential prerequisite for stronger security ties".

US President Barack Obama in his speech - 'A New Beginning', which was given in Cairo last year, announced the holding of this summit on entrepreneurship to address some of the serious issues faced by entrepreneurs of Muslim majority countries along with their minority population and Muslim communities all over the world.

During the web chat a question was raised by Mahmoud Hamalawy of Aljazeera TV about the objectives behind the summit, Ramamurthy replied that the focal point of Obama's foreign policy is to find out a way in which the country can play a useful role in educating entrepreneurs, particularly the youth.

Answering Nashwa Abdel Wahab, a guest entry in the web chat, he said that agenda of the summit is to spread awareness on the culture of entrepreneurship, an openness about failures and the possible role of technology in achieving favourable results. To another query he said that the US government wants relationship with people outside government also, for instance entrepreneurs, educationists, NGOs, etc.

Replying to a significant question about welcoming entrepreneurs from Afghanistan, he said that already entrepreneurs from Afghanistan are on their (US) list. On a question put forward by a group of journalists from Cairo, the NSC official stated that this will not be a one time gathering, but follow-ups would be held at regular intervals to achieve the ultimate goal.


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

 

[Luftwaffe]

Govt suffers Rs 2.6 billion losses in Gilgit wheat scam
Friday, April 09, 2010
By Usman Manzoor

ISLAMABAD: Contractors in the Directorate of Civil Supplies and Transport of Gilgit have caused a damage of over Rs 2.6 billion to the Government of Pakistan while transporting wheat from Islamabad to Gilgit-Baltistan in the last three years, documents available with The News claim.

The Audit and Inspection Report on the Accounts of Directorate Civil Supplies and Transport, Northern Areas, Gilgit (Now Gilgit Baltistan) for the year 2006 to 2009 shows that the directorate, which was working under the Kashmir and Northern Areas Division, has caused a loss of Rs 2,595,347,026 to the national exchequer under the domain of less recovery of sale price.

Para 04 of the audit report says: “As per provisions of para-26 GFR, it is the responsibility of every controlling officer to see that all sums due to government are regularly and promptly assessed realised and credited in the government account. As per Economic Coordination Committee (ECC) decision dated 17/04/2002 and subsequent clarification by Finance Division, the cost of transportation of wheat and handling charges are to be borne by government. During the scrutiny of record of Directorate of Civil Supplies and Transport, Gilgit, it was observed that the management had not passed on even the purchased cost fully to the purchaser, which resulted into loss to the govt.

“For 2006-07, some 108,096.204 metric tonnes wheat was transported from Islamabad to Gilgit Baltistan. The purchase price of this wheat was Rs 12,331/M tonnes while it was sold for Rs 8,086/M tonnes, thus, causing a loss of Rs 437,653,645 to the national kitty in 2006-07. The next year 120,003.466 M Tonnes wheat was transported to Gilgit-Baltistan and was sold for Rs 8,072/M tonnes while its purchase price was Rs 13,522/M tonnes. This year, the government had to bear a loss of Rs 654,018,889. In 2008-09, some 136,511.529 M tonnes of wheat were transported to the Northern Areas and was sold for

Rs 8,087/m tonne while its purchasing price was Rs 19,102/M tonne, hence causing a loss of Rs 1,503,674,492.

“It was a serious violation to the provisions of GFR and ECC decision on the subject. Audit proposes that responsibility of loss may be fixed and amount recovered from defaulters or position may be clarified to audit or otherwise.”

The department, in its reply, has mentioned that the ECC and the cabinet during their meetings dated 28-03-2000 and 19-04-2000 had decided that the current issue price of wheat to consumers of NA was maintained.

The auditor had replied to the department that the reply was not correct as it was clarified by the Finance Division and subsidy will be only in the transportation charges. Further, the issue price for every next year was issued with the approval of ECC.

Moreover the audit report also points out that an extra amount of Rs 10.4 million was paid to NATCO, a corporate organization, and Rs 4.5 million to different contractors on account of escalation on transpiration charges against the rules. NATCO was also paid Rs 53.89 million extra in contradiction to contract agreement.

 

[SHAMK9]

Govt suffers Rs 2.6 billion losses in Gilgit wheat scam
Friday, April 09, 2010
By Usman Manzoor

ISLAMABAD: Contractors in the Directorate of Civil Supplies and Transport of Gilgit have caused a damage of over Rs 2.6 billion to the Government of Pakistan while transporting wheat from Islamabad to Gilgit-Baltistan in the last three years, documents available with The News claim.

The Audit and Inspection Report on the Accounts of Directorate Civil Supplies and Transport, Northern Areas, Gilgit (Now Gilgit Baltistan) for the year 2006 to 2009 shows that the directorate, which was working under the Kashmir and Northern Areas Division, has caused a loss of Rs 2,595,347,026 to the national exchequer under the domain of less recovery of sale price.

Para 04 of the audit report says: “As per provisions of para-26 GFR, it is the responsibility of every controlling officer to see that all sums due to government are regularly and promptly assessed realised and credited in the government account. As per Economic Coordination Committee (ECC) decision dated 17/04/2002 and subsequent clarification by Finance Division, the cost of transportation of wheat and handling charges are to be borne by government. During the scrutiny of record of Directorate of Civil Supplies and Transport, Gilgit, it was observed that the management had not passed on even the purchased cost fully to the purchaser, which resulted into loss to the govt.

“For 2006-07, some 108,096.204 metric tonnes wheat was transported from Islamabad to Gilgit Baltistan. The purchase price of this wheat was Rs 12,331/M tonnes while it was sold for Rs 8,086/M tonnes, thus, causing a loss of Rs 437,653,645 to the national kitty in 2006-07. The next year 120,003.466 M Tonnes wheat was transported to Gilgit-Baltistan and was sold for Rs 8,072/M tonnes while its purchase price was Rs 13,522/M tonnes. This year, the government had to bear a loss of Rs 654,018,889. In 2008-09, some 136,511.529 M tonnes of wheat were transported to the Northern Areas and was sold for

Rs 8,087/m tonne while its purchasing price was Rs 19,102/M tonne, hence causing a loss of Rs 1,503,674,492.

“It was a serious violation to the provisions of GFR and ECC decision on the subject. Audit proposes that responsibility of loss may be fixed and amount recovered from defaulters or position may be clarified to audit or otherwise.”

The department, in its reply, has mentioned that the ECC and the cabinet during their meetings dated 28-03-2000 and 19-04-2000 had decided that the current issue price of wheat to consumers of NA was maintained.

The auditor had replied to the department that the reply was not correct as it was clarified by the Finance Division and subsidy will be only in the transportation charges. Further, the issue price for every next year was issued with the approval of ECC.

Moreover the audit report also points out that an extra amount of Rs 10.4 million was paid to NATCO, a corporate organization, and Rs 4.5 million to different contractors on account of escalation on transpiration charges against the rules. NATCO was also paid Rs 53.89 million extra in contradiction to contract agreement.

not good but it ill be ok inshallah

 

[ameer219]

Pakistan, GCC close to signing Free Trade Agreement

By Tanveer Ahmed

KARACHI: Pakistan and Gulf Cooperation Council (GCC) are about to sign Free Trade Agreement (FTA) as the consolidated draft incorporating the version of both the governments is almost in the final stage.

Talks of signing of FTA between Pakistan and GCC have been making the rounds for the last many years, however, both sides have now reached at some solid and concrete work to move ahead.

The third round of negotiations on FTA between Pakistan and GCC is also scheduled in the next month, which according to reliable sources would be the final one to sign FTA. Sources said FTA between Pakistan and the GCC would be comprehensive in nature covering the overall economic relations between the two sides.

“Pakistan is negotiating with the GCC on a framework of FTA for the last four years after the former Prime Minister Shaukat Aziz had directed the Commerce Ministry to enter into a pact with Arab countries”, sources privy with the development told Daily Times.

The agreement, sources hoped will provide an opportunity to Pakistani exporters to tap the demand for goods in the GCC countries under the reduced tariff in the first phase and without tariff in the long term.

The FTA will help abolish or reduce the existing five percent import duty imposed in the GCC countries, which will ultimately help reduce prices of Pakistani products in the region.”

Pakistan has already signed FTAs with Sri Lanka, China and Malaysia, besides South Asia Free Trade Agreement. At present, Pakistan is importing raw materials, semi-finished goods and oil from the GCC countries and the FTA will reduce the cost of these imports.

“The country wants to enhance trade ties with the Gulf countries and after signing of this agreement, Pakistan’s exports will show a substantial growth,” sources hoped.

Sources said that the continuous issues between Pakistan and GCC nations are related to agriculture products, which hampered the export growth of these products from Pakistan.

Pakistan was expected to sign FTA with the GCC countries in 2007, but was unable to finalise it due to some procedural delays. The FTA between Pakistan and the GCC would be comprehensive in nature, covering the overall economic relations between the contracting states, including the UAE, Saudi Arabia, Qatar, Bahrain, Oman and Kuwait.

Bilateral trade volume between Pakistan and the GCC states comes around average $4.5–4.7 billion.


Daily Times - Leading News Resource of Pakistan

 

[ameer219]

17% growth in remittances good: ICCI

ISLAMABAD: President Islamabad Chamber of Commerce Zahid Maqbool said the country has witnessed an impressive growth of more than 17 percent in remittances, which have reached to about $5.79 billion during July-Feb 2010 and the government should take measures to channelise these remittances towards the long-term investment for achieving better results for the country. He said Small & Medium Entrepreneur (SME) sector is the engine of growth for Pakistan and one good option for the government is to motivate the returning migrants to set up small and medium size businesses, which will help in boosting SME sector. For this purpose, the government should provide them fiscal incentives like tax breaks and other concessions. staff report

Daily Times - Leading News Resource of Pakistan

 

[ameer219]

Karachi stocks gain 53 points due to stability on political front


KARACHI: The Karachi stock market continued to remain under the bullish spell on the last trading day of the week Friday on support of prevailing stability in the country on the political front, which has vastly helped improve confidence of investors.

The Karachi Stock Exchange (KSE) 100-share index gained 52.89 points or 0.50 percent to close at 10,586.46 points as compared to the previous session’s 10,533.57 points. The KSE 30-share index closed at 10,852.32 points with a rise of 51.96 points. The KMI 30 closed at 15,994.38 points with a surge of 86.21 points.

Analysts said that the market opened on a positive note and this trend continued dominating the market proceedings throughout the trading session. Improved volumes were traded during the session reflecting active participation of investors.

The market turnover went up by 0.97 percent and traded 247.67 million shares as compared with the previous session’s 245.29 million shares. The overall market capitalisation was up by 0.43 percent and traded Rs 2.993 trillion as against Rs 2.980 trillion of the previous session. Out of total 395 companies, 186 closed in the positive zone, 197 in negative and 12 remained unchanged.

“Lotte Pakistan and Silkbank remained unbeaten in the volume leaders’ list,” said Topline Sec analyst Frahan Seth. “Furthermore, better results announced by Azgard Nine triggered heavy activity in the scrip.” “Bullish activity continued in oil and gas, telecom and bank sectors ahead of the quarter end result announcements,” said Shahzad Chamdia Sec senior analyst Ahsan Mehanti. “Continuing foreign interest, strong rupee value and expectations of early release of $1.2 billion International Monetary Fund tranche for Pakistan support played a catalyst role in the positive activity.”

The KSE 100-share index opened in the green zone with a gain of 26.46 points and at the end of the day closed at 10,586.46 points with a rise of 52.89 points. Lotte Pakistan was the volume leader with 22.34 million shares as it closed at Rs 12.59 after opening at Rs 12.80, shedding 21 paisas. Silkbank Ltd traded 20.00 million shares as it closed at Rs 3.92 from its opening at Rs 3.89, gaining three paisas. staff report

Daily Times - Leading News Resource of Pakistan

 

[ameer219]

Locally produced goods: free trade zone facilities to be offered, says Zardari

ISLAMABAD (April 10 2010): President Asif Ali Zardari on Friday said Pakistan would offer free trade zone facilities for locally produced goods for export to the regional markets and a one-window facility for the investors in Pakistan.

Speaking at a dinner hosted in honour of LCCI here at here at the Aiwan-e-Sadr, the President said Pakistan would provide a tax-free regime to goods produced in Pakistan for export to the regional markets and added that such trade free zones will also have dedicated power facilities.

He said the one-window facility would also overcome bureaucratic delays and help those who wish to invest in the country. "We also have adopted a policy of public-private partnership and offer same incentives and facilities to local and foreign entrepreneurs," he added. The President said Pakistan's ports were closer to some markets in China and India from even those countries' own ports. He said the country has a strategic location that enables it to serve the market of over two billion people in China, India and Central Asia.

"Our armed forces, police, para-military forces and the citizens have made huge sacrifices," the President said and added "We salute their heroism and courage." "The war against militancy has cost us over 35 billion dollars that is why the government had to curtail its Public Sector Development Programme," he maintained.

He said the cut in the development programme and infrastructure projects has put great pressure on the business community and their input costs have increased substantially. He said the principal reason for decline in export earnings was due to the country increasingly becoming non-competitive, adding that due to on-going fight against militants, international buyers, entrepreneurs and technicians were shying away from coming to Pakistan.

He said though the international freight charges have gone down but Pakistan freight forwarders charge higher overheads due to risk of terror attacks and the shipping companies have introduced a war risk surcharge, to cover the high insurance cost.

He said in crease in the level of poverty has implications both on Pakistan and the international community and that is why Pakistan has been asking for greater market access. He said Pakistan immediately needs aid and pointed that consequences of delaying it would be serious. "We want trade, not aid," he said, adding that aid was welcome but trade was more sustainable as it helps integrate people and cultures across borders.

He said it was time for the international community to think of ways to compensate the countries most adversely impacted by the war on terror by making some allowance to them for market access. The President also noted with satisfaction that the President Lahore Chamber of Commerce was holding Ambassadors Conference in Gilgit-Baltistan in May this year to highlight the business and investment potential of that area.

"With the political reforms recently announced in Gilgit-Baltistan I am confident that this potential will increase manifold. I am also pleased that a fashion show has been planned to be held in Paris," he added. He said the fashion show will not only help project Pakistan's textile and garments industry but also promote the soft image of the country and the Government will extend full support in this regard.

The President complimented the LCCI and its President Zafar Iqbal Chaudhry for the initiative to bring the business community together and said the practice would continue. The dinner was attended by Prime Minister Yousuf Raza Gilani, Minister for Foreign Affairs Shah Mahmood Qureshi and members of the business community and ambassadors.-PR


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

Hey, Zardari did something good for once!

 

[ameer219]

ICCI chief for incentives to boost remittances

ISLAMABAD - Pakistan has witnessed an impressive growth of more than 17 percent in remittances, which reached $5.79 billion figure during the July-Feb period of the current fiscal year, and the government should take measures to channelise these remittances towards the long-term investment.
Zahid Maqbool, President, ICCI, said this while chairing a meeting of businessmen here.
He said that channeling the flow of remittances towards investment sector would contribute towards ensuring sustained growth of the economy.
He said that the SME sector is the engine of growth for Pakistan and one good option for the government is to motivate the returning migrants to set up small and medium size businesses, which will help in boosting SME sector. For this purpose, the government should offer them fiscal incentives like tax breaks and other concessions.
He called upon the bankers to become more proactive and increase the speed of remittance transactions so that overseas Pakistanis could feel encouraged to send their money through official banking channels. He said such an approach would help develop the financial sector of the economy and contribute to the stability of macroeconomic fundamentals of the country. He said that Pakistan experienced a sharp fall in the net inflow of foreign investments during the July-Feb FY2010 because inflow in the first eight months of the current fiscal year fell to $1.024b as compared with $1.89b in the corresponding period of last financial year. He said that promotion of remittances through official routes and channeling these to long-term investments could sufficiently compensate Pakistan for big decline in the FDI.

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