Pakistan's Economy - News and Updates

[PeacefulIndian]

In all this 'cheerful' pieces of news, has anyone really looked at the trade imbalance with Chinese?

Trade disparity to be taken up with Chinese premier | Business | DAWN.COM

The Chinese do not eat basmati rice, Pakistan’s main farm export, nor are they interested in importing textiles and garments which were produced in much better quality in their country, an official said.

Even surgical instruments, sports and leather goods could not penetrate the Chinese market because of local production, making the free trade agreement irrelevant from Pakistan’s point of view.

Taller than mountain people are not interested in buying what Pakistan has to sell. This means potentially zero chance of increasing the array of exports to China.

Some elements in the Federal Board of Revenue go so far as to question the logic of having free trade with China which has not increased exports and cost the country a large amount of revenue as a result of massive cuts in duties on Chinese goods.

On target - FTA with China means loss in import duties revenue for Pakistan. Not so much for them - they don't import so much from Pakistan.

They said Pakistan’s main competitor in the international market, India, was constantly opposing free trade deal offers from China fearing that Beijing might only want to dump cheap manufactured goods on its booming economy.

Reality check - take a clue.

The untold story of Pakistan China trade – The Express Tribune

However, there are major discrepancies and variances in data with relation to Chinese goods imported by Pakistan. For instance, in FY 2008, various anomalies existed in the trade data that was reported to the UN by Pakistan and by China.

So - the imports are way more than they are reported. Means more revenue loss in terms of lost duty.

The only thing these 'trade deals' are doing is killing the local market & local businessmen. But no one cares looks like.

 

[Rafi]

In all this 'cheerful' pieces of news, has anyone really looked at the trade imbalance with Chinese?

Trade disparity to be taken up with Chinese premier | Business | DAWN.COM



Taller than mountain people are not interested in buying what Pakistan has to sell. This means potentially zero chance of increasing the array of exports to China.



On target - FTA with China means loss in import duties revenue for Pakistan. Not so much for them - they don't import so much from Pakistan.



Reality check - take a clue.



So - the imports are way more than they are reported. Means more revenue loss in terms of lost duty.

The only thing these 'trade deals' are doing is killing the local market & local businessmen. But no one cares looks like.

In the long run it will be good for our business men to compete with our Chinese friends, and also good for our consumer to get quality products at a good price.

The Sino-Pak relationship is mutually beneficial regarding our press, it is free and independent and they can criticise anything they want to.

 

[PeacefulIndian]

In the long run it will be good for our business men to compete with our Chinese friends, and also good for our consumer to get quality products at a good price.

The Sino-Pak relationship is mutually beneficial regarding our press, it is free and independent and they can criticise anything they want to.

You have chosen to respond with emotions rather than facts & figures. It is good only if your businessmen were competing successfully. There are no signs of that in last 15 years, no chance possible for next 15 years at least given the chinese attitude. Look at the Chinese official figures.

http://pk2.mofcom.gov.cn/aarticle/bilateralcooperation/labourlawhost/200905/20090506266956.html

The imbalance has been on the rise always. And even I would like to get good products for cheap, but not at the cost of local business.

 

[Rafi]

You have chosen to respond with emotions rather than facts & figures. It is good only if your businessmen were competing successfully. There are no signs of that in last 15 years, no chance possible for next 15 years at least given the chinese attitude. Look at the Chinese official figures.

http://pk2.mofcom.gov.cn/aarticle/bilateralcooperation/labourlawhost/200905/20090506266956.html

The imbalance has been on the rise always. And even I would like to get good products for cheap, but not at the cost of local business.

We'll worry about Pakistan, and you can worry about your own country, which by the way has a massive trade deficit with China also.

And we get plenty from China in myriad sectors for this to be a mutually beneficial relationship.

 

[SMC]

Hey bharati, why don't you worry about your own country? Look at your deficit with China.

 

[PeacefulIndian]

Keep out if you don't have anything to add except invectives and emotions.

And yes we are concerned about our deficit to China. That's why we rejected the FTA that was offered to us on a platter.

Whats more - last I checked this was a thread on Pakistan's economy.

 

[TechLahore]

Yes, Pakistan should worry about trade gaps. However, with reference to the visit of the Chinese Premier, the kinds of deals that are being announced are all going to contribute to an increase in Pakistan's export potential, and a reduction of imports. How?

1) Energy deals based on nuclear, wind, solar will decrease oil imports - the most major import for us
2) Investments in Pakistani infrastructure, such as roads, bridges, rebuilding of flood affected areas and more will increase economic output
3) Manufacturing industry will benefit from energy availability and will be able to increase exports - this has been a major issue with the manufacturing sector for the past couple of years
4) Investments in agriculture are obviously huge, since Pakistan is a huge agricultural producer
5) Defence deals with China typically mean less money spent, on easier terms, than any other source - so we again save here
6) Joint production deals, such as the JF-17, in which we have a 50% stake, means that the moment this aircraft meets an export success, Pakistan will enter the big ticket defence export industry. In the past, we have succeeded at a smaller scale with the Mushak trainer aircraft and numerous other defence exports.
7) China is creating substantial employment in Pakistan. They have bought all of BP's assets in Pakistan, China Mobile is now one of the largest mobile phone companies in Pakistan, and a single company like Huawei has created 25,000 direct and indirect jobs .
8) The port deal (Gwadar) and KKH /highway upgrades means that the Gwadar port will start to earn substantial business and transit fees will accrue also

This is INVESTMENT in Pakistan. This is where the Chinese Premier's visit to India and Pakistan were so incredibly different. I have seen people - blithering idiot journalists - comparing INVESTMENT with BILATERAL TRADE. These are two completely different economic variables and cannot be compared at all. $100B bilateral trade can be incredibly bad for a country if the deficits being run are very high. On the other hand, $45B in pure investment into a country can change its future.

Let us see where the future takes us. I will say though that I am absolutely floored by Premier Wen's visit and the absolutely monumental deals (not just in terms of money, but also in terms of technology, strategic importance and symbolism) that have been struck. I thought this visit was going to result in the formalization of the $13B in deals that had been announced earlier. I had no CLUE that we would conclude $45B worth of investments in THREE DAYS!

Long live Pak-China Friendship!

 

[huzihaidao12]

China need attention to our trade imbalance , but China and Pakistan have great trade potential, I mean, Pakistan's exports to China have great potential for growth, as long as enough to improve our transportation network.There are no big problems.

 

[salman77]

Pakistan may enhance mango export to 500,000 tons annually

Pakistan is the fourth largest mango producing country in the world and exports best quality mangoes to different countries earning a big amount of foreign exchange.

The country has the capacity to increase mango export upto 500,000 tons per annum from about 125,000 tons presently, said Chief Executive of Rishad Mateen & Company and Director Agri Business Support Fund, Ministry of Agriculture Food and Livestock, Mateen Siddiqui told APP.

He commented that a better law and order situation is vital to enhance export of agri products as well as foreign investment in country.

He said Pakistan is the fourth largest mangoes producing country after China, India and Brazil.

He informed that the Gulf, Middle East and European countries are the major countries which import Pakistani mangoes.

The Director suggested scores of incentives to exporters including the establishment of Common Export Facility Center in major mango producing cities including Mirpurkhas, Rahimyar Khan, Hyderabad, Nawabshah, Multan, Karachi and Lahore.

He informed that such kind of institutions are working in Indian big cities including Mumbai, New Dehli, Madras and Calcutta where all export facilities are available under one window.

Latest News - Pakistan may enhance mango export to 500,000 tons annually

 

[salman77]

Fuso to Sell in Pakistan

Today, German manufacturer Daimler announced its plans of expanding its truck business in Asia, by launching its operations in Pakistan. The path for growth in the region will be set by the Fuso FV Super Great heavy-duty prime mover and the Fuso FE Canter light-duty truck, who will be marketed in the country by Mitsubishi Fuso Truck & Bus Corporation (MFTBC).

The models will be assembled locally in Karachi by Master Motor Corporation, using completely knocked down kits shipped from Japan. Currently, Daimler is looking to create a sales and service network to handle the task of making the models count for something in Pakistan.

“We’re very pleased to bring our light- and heavy-duty trucks to Pakistan. We see significant potential for business and economic development in Pakistan and South Asia as a whole, and believe our efficient, high-quality commercial vehicles can strongly support the expected growth,” said MFTBC CEO Albert Kirchmann.

“We look forward to working together with our partner Master Motor Corporation to ensuring high product quality and to building a strong service network in support of our Pakistan customers.”

Pakistan is part of the market Daimler likes to call Next 11. Comprising countries like Egypt, Indonesia, Iran, South Korea, the Philippines, Nigeria and Vietnam, this market is seen by the German officials as key to the expansion and growth of the group. Currently, Daimler sells its trucks in nine of these countries.

Fuso to Sell in Pakistan - autoevolution

 

[salman77]

Pakistan, Indonesia likely to sign PTA

JAKARTA: Pakistan and Indonesia are expected to sign Preferential Trade Agreement (PTA) in first quarter of 2011, which would increase bilateral trade to around $ 2 billion in two years.

Pakistan Ambassador to Indonesia, M Sanaullah at Pakistan, Indonesia Economic Cooperation event in Jakarta said recent visit by Foreign Minister Shah Mehmood Qureshi and talks with his counterpart, Marty Natalegawa would have conducive affect on process leading to signing of PTA.

He said Pakistan and Indonesia had agreements on protection of investment and avoidance of double taxation treaty, which formed basis of a cordial investment atmosphere. He invited Indonesian businessmen and companies to invest in sectors like agriculture, fruits, cotton, cotton yarn, cement, sugar manufacturing plants and their parts, steel, steel products, surgical instruments.

Daily Times - Leading News Resource of Pakistan

 

[salman77]

Gilani to visit Oman to boost economic ties

ISLAMABAD, Dec 24 (APP): Prime Minister Syed Yusuf Raza Gilani will pay an official two-day visit to Oman to seek greater investment and increase trade and economic cooperation between the two countries.Prime Minister Gilani during his visit from Dec 27 will have an audience with Sultan Qaboos bin Al-Said and hold talks with the Omani leadership with a focus on trade and investment and further strengthening of bilateral ties in all spheres. Situation in the region, Middle East with particular focus on Iraq, Pakistan-India ties and cooperation at multilateral fora would also figure during the talks.

The Prime Minister would congratulate Sultan Qaboos on Oman’s 40th National Day, that also coincides with 40 years of his reign that brought unprecedented development and progress to the country. Queen Elizabeth of England and other world leaders had already visited Oman to greet the Sultan.
Prime Minister Gilani, will be accompanied by Minister for Foreign Affairs Shah Mahmood Qureshi and Chief Minister Balochistan Nawab Muhammad Aslam Khan Raisani.
Pakistan and Oman have deep cultural, historic, religious and ethnic ties and almost 30 per cent of Omani population is from Balochi. Gwadar and Makran were part of Oman till 1958.
Oman is also home to around 175,000 Pakistanis, working in diverse fields including skilled and non-skilled workers. The remittances from Oman have also seen a quantum leap over the years, increasing from 130 million in 2005-06 to US$ 287 million in 2009-10.
Sultan Qaboos visited Pakistan in 2001 and announced US 100 million dollars grant, the larger chunk of which - US$ 64 million dollars was allocated for development of Balochistan.
An amount of US$ 17.5 million dollars was earmarked for the Gwadar International Airport and US$ 27.5 for Gwadar, and Pakistan would urge Oman to divert the unspent amount of US 19.1 million dollar for the relief of the flood affected people.
Oman is also a founding member of the Gulf Cooperation Council, member of the Arab League and the United Nations as well as founder member of the Indian Ocean Rim Association for Regional Cooperation.
In November 2010, the UN Development Programme’s (UNDP) Human Development Report listed Oman as the “most-improved” nation in last 40 years from among 135 countries worldwide. The report identified top movers relative to the starting point in 1970. Oman ranks first out of 135, followed by Saudi Arabia (5th), Tunisia (7th), Algeria (9th) and Morocco (10th).

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Gilani to visit Oman to boost economic ties

 

[Aeon]

Punjab government approves projects worth billions of rupees

LAHORE (December 25, 2010) : Punjab government has approved development projects worth billions of rupees for various districts of southern Punjab and other cities of the province. The projects were approved in a meeting of Divisional Commissioners, which Punjab Chief Minister Muhammad Shahbaz Sharif presided over here on Friday, disclosed an official.

The meeting was told that the projects are aimed at benefiting maximum people as well as ensuring early availability of education, health, infrastructure, sewerage and other facilities to the masses. Addressing the meeting, the chief minister said that all out resources are being utilised for a rapid progress of the province and special attention is being paid on the provision of basic amenities to the masses. He also said funds are being provided to education and health sectors on priority basis.

"Special attention is being paid to the uplift of backward areas and huge funds have been allocated under special package for the completion of high profile projects. The funds allocated for education sector is not expenditure but investment for the development and betterment of future generation. Transparency, high standard of construction work and speedy completion of development projects is the policy of the government which is being strictly implemented," he remarked.

Granting approval to the development projects, Shahbaz directed that committees comprising elected representatives should be constituted in all districts to monitor pace of implementation of the projects. He added that these committees should review the pace of progress of the projects on monthly basis whereas he will monitor these projects every two months.

He also said that a high standard of infrastructure should be ensured and drains should be an essential feature of all sewerage projects. Tree plantation and culture of beatification of development projects should also be promoted so that they become pleasant to see. Education and health projects should be completed on priority basis, he maintained.

On the occasion, the chief minister announced that three Danish schools will be inaugurated in southern Punjab in January while in the second phase, foundation stone of Danish school in Dera Ghazi Khan will be laid on January 3. Foundation stone of Daanish Schools in Rajanpur and Jand in Attock district will be laid soon. He directed the divisional commissioners to personally supervise development schemes for ensuring a timely and transparent completion.

Earlier, divisional commissioners presented high profile projects in education, health, infrastructure, water supply and drainage sectors in their respective areas, which were granted approval by the meeting. These projects include by-passes, construction and widening of roads, up-gradation of rural and basic health centres and DHQs hospitals, water supply and sewerage schemes, as well as setting up new colleges and vocational institutes.

Senior Advisor Sardar Zulfiqar Ali Khan Khosa, Provincial Law Minister Rana Sanaullah Khan, Member National Assembly Hamza Shahbaz Sharif, Chief Secretary, Chairman Planning and Development, Secretaries of Finance, Health, Communication and Works, Higher Education and senior officers were present on the occasion.

Copyright Business Recorder, 2010​

 

[Aeon]

Government to provide funds for uplift of backward areas: Gilani

ISLAMABAD (December 25, 2010) : Prime Minister Syed Yousuf Raza Gilani said that the government would provide all necessary funds for the uplift of backward areas to accelerate economic activity in all fields of the country. He was talking to Ministers and Parliamentarians who called on him at his Parliament House Chamber here on Friday afternoon.

Gilani said the meeting with parliamentarians provides an opportunity to ascertain the needs of the people in different areas of the country. He added that it would also help in fine tuning the government's welfare and development policies according to the requirements of the people.

The Prime Minister said the government was encouraging farm based local industries so that employment opportunities could be generated for the people living in rural areas. He added that in this regard the road network is being improved and government is prioritising the farms to market roads to encourage investment in the countryside.

The Prime Minister said all the political forces of the country have shown political maturity and sagacity in dealing with the major issues of the national importance. He said time has reached to focus energies on the welfare of the people of the country. The Parliamentarians apprised the Prime Minister about various issues relating to their respective constituencies.

They also discussed proposals for the improvement of living standard of the people. The Minister and Parliamentarians who called on Prime Minister included: Syed Khursheed Shah, Minister for Religious Affairs, Deputy Speaker National Assembly Faisal Karim Kundi, Advisor to PM on Political Affairs Nawabzada Ghazanfar Gul, MNAs, Engineer Usman Khan Tarakai and Sardar Salim Haider Khan.

Copyright Associated Press of Pakistan, 2010​

 

[salman77]

Pakistan eyes maritime trade with Oman

MUSCAT, Oman, Dec 26 (APP): Pakistan is looking forward to start passenger and maritime trade service between Gwadar and Muscat to enhance economic and trade ties, as leaders of two countries meet here on Monday to discuss whole range of issues.Prime Minister Gilani, who has expressed keen desire to initiate maritime trade with Oman and make Gwadar Port fully operational, would also discuss ways to boost bilateral economic ties and explore new avenues of bilateral cooperation between the private sectors.The joint working groups of the two countries would further study the prospects of maritime trade and passenger travel through the Gulf of Oman.

Apart from Foreign Minister Shah Mahmood Qureshi, Minister for Ports and Shipping Babar Khan Ghauri, Minister of State for Ports and Shipping Nabil Ahmad Gabol, Balochistan Chief Minister Nawab Muhammad Aslam Khan Raisani, will accompany the Prime Minister and assist him in his talks.
According to maritime experts, the trade from Gwadar can benefit the two countries greatly as a medium ship to Muscat takes only hours to ply as compared to the distance between Karachi and Muscat, which is generally covered in around three days.
Pakistan’s ambassador to Oman Sohail Amin told APP that Prime Minister Gilani’s visit to Pakistan’s closest Arab neighbour on Dec 27, was aimed at intensifying bilateral ties in trade, defence, banking, infrastructure development, energy besides seeking greater investment.
The ambassador said that Pakistan could utilize its manpower and expertise in energy, infrastructure and oil exploration in Oman. He termed the labour and manpower sectors as an attractive area of cooperation between the two countries.
He said that the Prime Minister’s two-day visit was the result of painstaking hard work with a series of ministerial level meetings between the two countries throughout the year to explore more avenues of cooperation.
He said that work on inking an agreement between the Chambers of Commerce and Industries of the two countries was also in its final stages.
He said bilateral trade between the two countries had more than doubled in the last three years to around US 250 million dollars. Pakistan has been exporting its traditional items, including garments, textiles, footwear, fruits, surgical and sports goods to Oman, he added.
Ambassador Amin said Omani investors were keen to expand business in Pakistan. He said the Oman International Bank and Oman Oil Company were already working in Pakistan, while Omani investors had expressed interest in more sectors.
The two countries initiated their diplomatic relations way back in 1972, and have grown from strength to strength. The current visit is aimed at initiating a more robust relationship and will result in deeper commitment between the two sides for the mutual good of their people.
The last high-level visit from Pakistan to Oman was by Prime Minister Shaukat Aziz in 2005, while Sultan Qaboos visited Pakistan in 2001.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Pakistan eyes maritime trade with Oman