Pakistan's Economy - News and Updates

[ejaz007]

KSE goes zooming up to breach record 20,000 points

KARACHI: Karachi Stock Exchange (KSE) went booming up and up to gain in early few hours some 300 points breaching KSE-100 index record of 20,000 points, as the investors hailing the outcome of the May 11 polls and hoping for the restoration of some peace and stability in the country went jolly good and thronged for buying the blue chips, Geo News reported.

Sources said that ML-N landslide victory has given hopes to the investors yearning for peace and stability in the country, which they reveled and rejoiced at the very go of the business in the stock market that soon saw the KSE-100 index zooming up by 300 points and breaching Pakistan’s all records in the history of stock trading.

KSE-100 index was seen pegged at 20177 points at his hour of filing this report.

KSE goes zooming up to breach record 20,000 points - thenews.com.pk

 

[Bobby]

Pakistan’s reserves stand at over $11.86bn


ISLAMABAD: The total liquid foreign reserves held by the country stood at $11,863.1 million on May 3. Giving the break-up of the foreign reserves position a statement of the State Bank of Pakistan (SBP) said foreign reserves held by the it stood at $6,772.4 million while the net foreign reserves held by banks (other than SBP) stood at $ 5,090.7 million. app

Daily Times - Leading News Resource of Pakistan

Tractors production up by 61% in eight months

ISLAMABAD: The production of tractors increased by 60.94 per cent during the first eight months of the current fiscal year over the corresponding period of last year.

As many as 33,193 tractors were manufactured during July-February 2012-13 against 20,624 during July-February 2011-12, according to the data of Pakistan Bureau of Statistics (PBS).

The production however witnessed negative growth of 53.47 percent in February 2013 when compared to February 2012, the data revealed.

Tractor production during February 2013 was recorded at 2,665 units against 5,728 units during February 2012.

The country’s Large Scale Manufacturing (LSM) registered positive growth of 2.93 percent during the first eight months of current fiscal year over the corresponding period of last financial year.

The LSM grew by 3.84 percent during the February 2013 when compared to the same month of last year. app

Daily Times - Leading News Resource of Pakistan

I month back your reserve was around $6 billion...how can it be doubled in less than a month

 

[ejaz007]

I month back your reserve was around $6 billion...how can it be doubled in less than a month

5 Billion are held by the state bank of Pakistan while 6.7 billion are held by private banks.

 

[ejaz007]

NESPAK gets Iraq irrigation project

LAHORE: Encouraged by past successes of the National Engineering Services of Pakistan (NESPAK), Iraq’s Ministry of Water Resources has awarded an irrigation project to NESPAK. The project called East of Gharaf aims at strengthening the war torn economy of Iraq by providing sustainable irrigation and drainage facilities to about 390,000 acres of land in Nassiriya and Kut Governorates, the area between Tigris and Euphrates rivers. Dr Mansoor Ahmad Hashmi Vice President Water Resources Division of NESPAK would go Iraq by the end of this month for signing the contract agreement for the East of Gharaf Project with the Ministry of Water Resources, Government of Iraq. NESPAK will render engineering consultancy services including update of topographic survey and detailed design of irrigation and drainage networks of the project area with full reclamation concept. The state-owned NESPAK has worked on a number of irrigation projects in early 1980’s, such as Euphrates East Drains Project, Saddam Dam Project, North Jazira Irrigation and Drainage Project, Rumaitha Irrigation and Drainage Project. NESPAK still retains its registration with the Iraqi Ministry of Water Resources. NESPAK is one of the largest consultancy firms in Asia with staff strength of over 4,200 with over 1100 professionals including MS and PhD degree holders as well as foreign qualified professionals in various engineering fields. Over the last four years, its revenues have become more than doubled with nearly 30 percent contribution from overseas projects in Saudi Arabia, Oman, Afghanistan, Iran, Qatar, Yemen, Bangladesh and Ethiopia. staff report

Daily Times - Leading News Resource of Pakistan

 

[A.Rafay]

Turkey can act as gateway to EU for Pakistan

Staff Report

KARACHI: Pakistan is the gateway to Central Asian Republics, South Asia, Middle East and China whereas Turkey can act as the gateway to European Union (EU) for Pakistan and other Asian countries in respect of commerce.

President Karachi Chamber of Commerce and Industry (KCCI) Haroon Agar talking to a business delegation of Turkey said ‘One-Nation, Two-States’ was the phrase which best described the relations between Turkey and Pakistan.

Turkish delegation headed by General Manager of Turkish Airlines Huseyin Cepni accompanied by regional Director Pak-Turk International Schools Ali Karan and Director Public Relations Huseyin Demirdelen visited KCCI.

KCCI attaches high level of significance to Pakistan-Turkey Bilateral Trade and relationship due to geo-strategic locations of two brother Muslim countries.

He appreciated the Turkish Airlines was vibrantly operating in Pakistan while providing quality services for Eurasian region and entrance to European Union countries via Istanbul and of course to other countries worldwide.

Indeed the Turkish flag-bearer airline was not only connecting the business communities of two countries but also providing air cargo services, he added.

Agar invited Turkish Airways to exhibit in the Turkish Pavilion of KCCI’s 10th My-Karachi Exhibition 2013 in July 2013.

Regular flights between two countries are crucial to facilitate the business travelling and transportation of air cargo, particularly for perishable goods, he maintained.

Husseyin Cepni said Turkish Airline aimed to provide services to Pakistanis to fly from Pakistan to worldwide. He announced during his recent visit to Airlines Headquarters at Turkey, he got special approval for discount to KCCI’s members. All KCCI’s members can avail exclusive 5 percent discount on ticketing from any Turkish Airlines office operating in Pakistan while showing their membership card. He apprised KCCI members Turkish Airlines was providing quality services to Pakistanis travelling between Pakistan and Turkey and to other regions of the world particularly Europe. From Istanbul, Turkish Airlines fly to all leading European countries and their major cities on daily basis. The Turkish Airlines is also offering air cargo services between two countries and other destination.

He confirmed participation of Turkish Airlines in the Turkish Pavilion of My-Karachi Oasis of Harmony Exhibition 2013.

Turkish Airlines will offer free tickets and gift hampers to the visitors of My-Karachi Exhibition through luck draw.

Turkish Airlines is state-owned enterprise and the Turkish national carrier is negotiating with Pakistan’s Civil Aviation Authority to start daily operations from Karachi and also flights from Islamabad and Lahore.

Turkish Airline is also good friend with Pakistan’s national carrier having joint arrangements on some routes. Turkish Airlines is a Star Alliance member having youngest fleet of more than 200 aircrafts was ranked as best airline in Europe last year and one of the top ten airlines of the world.

The Airline flies to more countries than any other airline in the world, he told.

Daily Times - Leading News Resource of Pakistan

 

[Hyde]

The only good thing about PML-N is that it has always been business-friendly government. Keeping the recent history of Pakistan and PML-N in mind, I feel the growth rate may not be my favourite above 8% but still they will manage to raise it to above 5% for sure. It is very much likely as they are far more competent comparing to PPPP. Yes not so as PTI at least by claims

I hope if KPK is able to raise the growth rate to above 10% --- that will certainly boost our hope for future government of PTI in center... as well as Punjab

and if both Punjab and KPK are able to post higher than 6-8% of growth... It will be good competition between two parties and provinces. I am not sure about Sindh right now as I don't see any change of government over there and their past record of 5 years has been very bad... Balochistan i think will be better than last government but not sure how good..

what say?

 

[Jango]

The only good thing about PML-N is that it has always been business-friendly government. Keeping the recent history of Pakistan and PML-N in mind, I feel the growth rate may not be my favourite above 8% but still they will manage to raise it to above 5% for sure. It is very much likely as they are far more competent comparing to PPPP. Yes not so as PTI at least by claims

I hope if KPK is able to raise the growth rate to above 10% --- that will certainly boost our hope for future government of PTI in center... as well as Punjab

and if both Punjab and KPK are able to post higher than 6-8% of growth... It will be good competition between two parties and provinces. I am not sure about Sindh right now as I don't see any change of government over there and their past record of 5 years has been very bad... Balochistan i think will be better than last government but not sure how good..

what say?

PML will be better than PPP, no doubt about that.

And also as you said, competition between the two will be good. Both have a chance to prove themselves, more so PTI since it carries then slogan of change and improvement...

Btw, do provijces shown different growth rates? Isn't the growth rate of a whole country documented only?

 

[Hyde]

PML will be better than PPP, no doubt about that.

And also as you said, competition between the two will be good. Both have a chance to prove themselves, more so PTI since it carries then slogan of change and improvement...

Btw, do provijces shown different growth rates? Isn't the growth rate of a whole country documented only?

Provinces has different growth rate, country has different. You always know about the progress of each province.

 

[ejaz007]

With right support FDI can rise to $6bn: OICCI
Staff Report

KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) expects that given the right environment and support the foreign direct investment (FDI) inflow can substantially increase to as much as $5 billion to $6 billion annually.

The chamber is optimistic that the new government will set a clear and focused direction to address key issues of governance, security, energy, and inconsistent policy implementation, which in the recent past has severely affected the inflow of FDI in the country.

OICCI President Kimihide Ando, on behalf of the foreign investors, expressed his confidence in the government of Pakistan. He congratulated Nawaz Sharif, Pakistan Muslim League-Nawaz leadership and other major election leaders as the new set up moves towards a smooth transition of the power at the Centre and in the provinces.

OICCI believes that the ongoing democratic process is creating a positive international perception, which is partially reflected in the increasing level of FPI in the stock market. This window of opportunity can be used to channel the longer term FDI to bolster the manufacturing and infrastructure sector for sustained business activities, which will help increase employment and economic growth. OICCI believes in Pakistan’s great potential and is confident that a few bold economic policy initiatives by the new government can dramatically change the economic situation.

Ando suggested the government to constitute a high-powered Economic and Investment Committee with representation from key trade bodies, like OICCI to get periodical feedback on policies and performance and, more importantly, agree on way forward to achieve rapid economic growth.

Daily Times - Leading News Resource of Pakistan

 

[2ndslip]

Even 3-4 bn is good for Pak in the current environment.

 

[Bobby]

Even 3-4 bn is good for Pak in the current environment.

They say ...expects that given the right environment and support...... in current environment that does not look like right environment

 

[ejaz007]

Foreign exchange reserves rise to $11.62bn


KARACHI: Pakistan’s foreign exchange reserves rose to $11.62 billion in the week ending May 24 from $11.43 billion the previous week, the central bank said on Thursday. The reserves held by the State Bank of Pakistan stood at $6.56billion, after increasing 2.83 percent from $6.38 billion in the pervious week, whereas the reserves held by commercial banks surged by 0.17 percent to $5.059 billion as compared with $5.05 billion in the previous week. Remittances from Pakistanis abroad rose 6.37 percent to $11.57 billion in the first 10 months of the 2012-13 fiscal year, from $10.87 billion in the same period last year. The fiscal year runs from July to June. reuters

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

E&P drilling activities increase by 50 percent

* 90% drilling target of FY 2012-13 achieved so far

By Abrar Hamza

KARACHI: Manzalai-10 in Tal Block has successfully tested for gas reserves while the exploration and production (E&P) industry has drilled 50 percent more wells in 11 months of fiscal year (FY) 2012-13 as compared to drilling in FY 2011-12, said Pakistan Petroleum Information Service (PPIS) activity report on Monday.

Progress on drillings of important wells promises further production additions as the industry has moved closer to FY 2012-13 target. The E&P industry has drilled 82 wells till the end of May, which includes 29 exploration and 53 development wells. This translates into 90 percent of FY 2012-13 drilling target in the first 11 months, PPIS report stated.

The latest PPIS activity report indicates successful testing of gas reserves at Manzalai-10, located in the Tal Block in NWFP and Gyorgy Mosonyi, while testing at Manzalai-10 is still underway.

On the other hand, Nashpa-IV’s drilling bid has been fixed as industry sources suggested that Drill Stem Test (DST) on the well is likely to start in the next two weeks. First three wells on Nashpa are producing cumulatively 15,000 barrels per day (bpd) oil and 50 million cubic feet per day (MMCFD) gas.

Moreover, another production well, Kadanwari, on the field has been completed with flow of 30 MMCFD. Oil and Gas Development Company (OGDC), which carries 50 percent stake in the field, stands to benefit.

JS Research’s Syed Atif Zafar said that a relatively modest gas discovery of 25-35 MMCFD has been discovered, which will be 20 percent of total Manzalai gas flows, 12 percent of Tal Block gas flows and 1.0 percent of country’s gas flows.

OGDC, Pakistan Petroleum Limited (PPL) and Pakistan Oilfields Limited (POL) have respective stakes of 27.8 percent, 27.8 percent and 21.1 percent, respectively in the block. Zafar said that production from Manzalai-10 is likely to provide annual earnings upside of two paisas per share for OGDC, five paisas per share for PPL and Rs 2.5 per share for POL. He expects the field is likely to be tied-in over the next three to six months. The E&P space has seen renewed interest in recent times, where OGDC, PPL and POL have gained 19 percent, 21 percent and 5.0 percent, respectively in the past one month.

Meanwhile, the latest industry updates on drilling are largely encouraging and suggest positive production outlook for the listed E&P companies. The industry has already drilled more production wells than envisaged at the start of the year though exploration drilling has relatively lagged behind.

Mohammad Fawad Khan of Foundation Research Equities said that a key highlight of FY 2012-13 activity is contribution from private sector and healthy success ratio. Overall private E&P companies (OGDC and PPL) have drilled 21 exploration wells. United Energy Limited contributed the lion’s share with two thirds of drillings. Altogether, private sector enjoyed a success ratio of 50 percent. Most of the finds are in Badin block and in terms of size can be termed as small to modest.

Khan further said that Manzalai-10 has been completed though production numbers on development well are not known but should range between 10-15 MMCFD gas. Manzalai-10 will help in arresting the production decline on the field, he added.

Tal drilling on a new exploration well, Kot-01 has started with total target depth of 5,488 metres, highest among all eight wells drilled so far. Kot-01 is the first exploration well since completion of drilling on Tolanj in 2011-12 and highlights operator’s focus on scanning the remaining potential in Tal block.

Daily Times - Leading News Resource of Pakistan

 

[W.11]

Korean delegation to visit Karachi today


KARACHI: A high-level Korean delegation comprising business leaders from 12 Korean companies will visit Karachi, Pakistan’s economic hub and biggest metropolitan city, from Wednesday to Friday (June 5 to 7, 2013). According to the KOTRA Karachi office, the delegation is mainly from Gwangju Metropolitan City, looking for business opportunities with Pakistani companies. The delegation is comprised of automotive, medical and information technology sector companies, which will hold business meetings, on June 6 at a local hotel. KOTRA Karachi Office Head Byung Hoon Sung said, “Currently, the volume of bilateral trade is only $1.6 billion, which is much below the existing potential. Many Korean companies count Pakistan, with population of 180 million, as a big potential market, rich with natural resources and loaded with dexterous manpower; enough recipe for a nation to make it to the top. It is encouraging to witness big Korean corporations like Samsung, LG, Lotte, Ssangyong, POSCO, Daewoo and others presenting their keen interest in investing and establishing relationship with Pakistani business community, specially in the fields where Pakistan needs the most like hydropower generation, rural development, hospitals, roads etc. KOTRA will play a proactive role for the increase of cooperation between the two countries.” staff report

Daily Times - Leading News Resource of Pakistan

 

[muse]

What’s the plan?


Dr Farrukh Saleem
Sunday, June 09, 2013

Capital suggestion


Sir, we would have to cough out $10 billion in the following 12 months; the current account gap plus our maturing debts. As of May 24, the SBP had $6.5 billion. Sir, the budget that your finance minister is about to announce will have a trillion rupee hole; that’s Rs1,000,000,000,000.


Sir, your manifesto maintains that the “PML-N will focus on motorways, dams, housing projects and development of new urban centres and cities.” There is little doubt that we need new drivers of economic growth. Motorways need real money and so do housing projects, development of new urban centres and cities. Sir, where would all that money come from?


Sir, your energy plan is about replacing “furnace oil boilers by coal fired boilers. This will cost around $2 billion.” Sir, where would all that money come from? Sir, you have pledged to “generate 10,000 MW of electricity....” That is going to cost $20 billion. Sir, where would all that money come from? Sir, your energy plan promises “Permanent elimination of circular debt.” Our accumulated circular debt is Rs1,000,000,000,000. Sir, where would all that money come from?


Sir, you have three choices: go begging to Saudi Arabia; borrow from the likes of the IMF, the Asian Development Bank, the World Bank and the State Bank of Pakistan or generate funds through fiscal consolidation and internal austerity.


Sir, you know it better than anyone else that there ain’t no such thing as a free lunch – neither in Saudi Arabia nor in China. Saudi Arabia gives us money to get what it wants from us – influence over this region along with its agenda. Sir, project financing from China is to promote and safeguard Chinese interests in Pakistan – and the region. As a matter of fact, one of the drivers of state failure is when a state begins to allow interference by other states – be it Saudi Arabia or China. Sir, we can’t simultaneously drink free Saudi oil and go for the Iranian gas pipeline. Then there’s sectarian violence within Pakistan that almost always follows truckloads of free dates. Will the Saudi-American combine tolerate the Gwadar-Khunjerab-Kashgar rail network? China, as a matter of principle, finances neither budgetary deficit nor provides funds for balance of payment crisis.


Sir, we could take the IMF route but borrowing is what messed us up in the first place. Imagine: every Pakistani man, woman and child is already indebted to the tune of Rs75,000. And if you borrow from the domestic banking sector there will be nothing left for the private sector. Sir, we are already in violation of our own Fiscal Responsibility and Debt Limitation Law of 2005.


Sir, all that we are left with is reform, restructuring and fiscal consolidation. Sir, the state-owned enterprise sector, if reformed, can save us Rs500 billion a year. Sir, there’s Rs27 billion in the prime minister’s discretionary fund (additional billions in the CMs’ discretionary funds). Then there’s at least Rs4 billion in secret funds of various ministries.


Sir, are you serious about tax reforms? Let us begin with Punjab. Sir, the tax-to-GDP ratio for the federal government is 9.1 percent. Imagine: the tax-to-GDP ratio for the Punjab government is 0.2 percent. Imagine: the Punjab Revenue Authority, with a population of 97 million, has received a total of 300 tax returns. Sir, do you commit to abide by the Fiscal Responsibility and Debt Limitation Law of 2005 (the law caps public debt at 60 percent of GDP)?


Dear Prime Minister, unless “commitment is made, there are only promises and hopes...but no plans.”