Pakistan's Economy - News and Updates

[Omar1984]

‘Pakistan to export 100,000 tons cement to India’​

KARACHI: Pakistan is likely to export 100,000 tons of cement to India in next three months after getting permission to resume exports, a report said on Monday.

“The Bureau of Indian Standards (BIS) has renewed licences of Pakistani cement exporters, allowing them to export the commodity,” said Furqan Punjani, an analyst at Topline Securities.

During the first eight-month of current fiscal year, Pakistan exported 320,000 tons of cement to India, which was 24 percent less than the same period last year.

Pakistan is expected to export an additional quantity of upto 100,000 tons of cement to India during the remaining last three-month of the current fiscal year, he added.

Asad Siddiqui, an analyst at InvestCap, said that BIS licence was essential for all kinds of exports to India. Majority of cement exporters got their licences expired in the last four to five months.

But Siddiqui was quick to add that the renewal did not indicate that India was allowing export through land rout of Wagha Border, but it would continue to do so through rails.

Punjani said that Pakistani cement has an edge over Indian cement in terms of prices in areas where the landed cost is lower. India has planned to add more production lines in future.

“India has a cement manufacturing capacity of 261 million tons which is expected to increase to around 290 million tons by the end of fiscal year 2012,” he said.

Despite chances of major expenditure on construction, supply glut would prevail in Indian markets. This casts pall over the future of Pakistani cement exports to New Delhi compared to fiscal year 2007-2008 when there was an acute shortage of cement in India and it imported around one million tons from Pakistan, Punjani added.

“(In spite of these realities) this new opportunity of export is set to enhance cement dispatches to India in the range of 500,000 tons to 800,000 tons in next two years.” —Salman Siddiqui

 

[Brotherhood]

China, Pakistan trade to reach 15 bln USD by 2015 - People's Daily Online April 22, 2011

The Pakistani parliament was informed on Thursday that bilateral trade with China is current over eight billion U.S. dollars and both sides are committed to achieving a trade target of 15 billion U.S. dollars by 2015.

Minister of State for Foreign Affairs Hina Rabbani Khar said in the National Assembly, lower house of the parliament, that friendship with China was the cornerstone of Pakistan's foreign policy, adding "Pakistan considers China to be a factor of stability in the region and beyond".

She said both the countries had developed a comprehensive framework for sustained development of economic and trade relations.

About India, she said that as the result of the meeting of the Foreign Secretaries of Pakistan and India, sidelines of 33rd Session of SAARC (South Asian Association for Regional Cooperation) Council of Ministers on Feb. 6 in Bhutan, both countries decided to resume the dialogue process.

"This has served to reduce trust deficit and the two countries agreed to resume full spectrum dialogue on all issues," she said.

She also informed that it was agreed to hold secretary level meetings on all segments of the previous "Composite Dialogue", adding that Pakistan's foreign minister would visit India by July this year to review the progress on all issues.

Source: Xinhua

 

[Omar1984]

Taunsa to open new avenues of investment​

LAHORE - Punjab Chief Minister Shahbaz Sharif has said the agreement for Taunsa Power Project with the Chinese company, which built the biggest dam of the world, will prove to be a new chapter of foreign investment in Pakistan.

He said this at a briefing after a visit to Three Gorges Dam, which is the world’s largest hydel-power project in the Chinese province of Hubei.

While recording his impressions in the visitors’ book, the chief minister termed the Tree Gorges Dam a “gorgeous one” in reality and a tribute to the unshakable commitment, indefatigable efforts and indomitable spirit of the Chinese people. He described the dam as the eighth wonder of the world.

Referring to Taunsa Power Project, the chief minister said that the project would prove to be a memorable gift for the people of Punjab from the government and people of China and a glaring example of Pak-China friendship. He said that Taunsa Power Project would help reduce loadshedding, transfer of hydel-power technology to Pakistan, resumption of industrial activities and creation of job opportunities.

The chief minister said that Pakistan wanted to benefit from Chinese expertise at Taunsa Barrage and other projects. He said that he would be happy to play host to Chinese engineers and workers.

Later, leaders of Chinese Communist Party hosted a reception for the chief minister and his delegation in Ye Chang, which is the central city of Hubei province.

Speaking on the occasion, he said people of China are the custodians of the ancient wisdom of China, spanning over thousands of years, while the Communist Party had played a historic role in utilising their capabilities.

He said that he and his delegation had come with a programme of cooperation with China in agriculture, livestock, road construction, hydel-power, communication and other sectors and were happy that the leadership of the Communist Party was extending all out encouragement and patronage.

Local leader of Chinese Communist Party Li Ya Long in his address said that visit of the delegation led by Punjab Chief Minister would play an important role in cementing friendly relations between the two countries and mutual contacts would be made more effective and result-oriented in science, technology, culture and other sectors.

Meanwhile, an important agreement was signed between the Punjab government and a renowned Chinese company Sino-tech in Beijing on Thursday.

CM Shahbaz Sharif and other members of his delegation including Senator Pervaiz Rashid, Provincial Minister for Law Rana Sanaullah, Saud Majeed, Hafiz Mian Muhammad Nauman, Zaeem Qadri, Kiran Imran, and Shamsa Gohar were also present on the occasion.

Chairman Punjab Board of Investment Rizwan Ullah Khan and the head of Sino-tech, Jin Guang Ming signed the agreement under which the Chinese company will select projects for investment in livestock, agriculture and other sectors while Punjab Investment Board will help in the purchase of land, supply of power and gas and other facilities.

 

[Omar1984]

Pakistan can be next destination for Chinese firm’s investment ​

WEIFING, BEIJING Apr 24 (APP) - A leading Chinese tractor manufacturing firm is mulling over setting up four production units overseas and Pakistan can be one of the choice countries for its investment because of an increasing demand of its farmers to adopt mechanized farming.The Chinese firm Foton Lovol International manufactures heavy machinery like tractors, harvesters, loaders and excavators. It is located in Weifing city which is situated in one of the most developed provinces- Shandong in East of China. It produces one tractor every five minutes and rolls out 200 machines in a month, vice secretary of the party committee Yang Hongyi said in an informal talk to a group of Pakistani journalists during their visit to the plant.

A group of Pakistani journalists is visiting China as the two countries are celebrating 60th year of establishment of their diplomatic relations which have stood the test of time and are set to expand their multi-faceted cooperation in years ahead.

Foton is already exporting its quality products to 112 countries including America, European Union and Pakistan as well. It started exporting its machinery to Pakistan in 2005 and had been selling one thousand units per year,sad Hongyi. He said the firm was very keen to expand its exports to Pakistan which would further cement relations between the two countries.

Another official said price of the one tractor ranged from $ 19000 to 18000.Answering a question on number of the workers, he said of the 10,000 workforce, many thousands were women-an indication that over fifty per of Chinese female population were equally contributing to the amazing pace of development of China. China had surprised many in the West, over the way its economy absorbed the shocks of the 2008 recession in the leading economies of the world, by maintaining a double digit gross domestic product.

The tractor firm has won the top ranking in sales of its products in the Chinese market for the last eight consecutive years and “its percentage of market share exceeds 70%”.

 

[Abu Zolfiqar]

Expo ''Made In Pakistan'' starts in Chandigarh

Chandigarh, Apr 29 (PTI) More than 48 exhibitors from Pakistan are showcasing their products in an exhibition 'Made in Pakistan' which started here today.

After inaugurating the fair, Pawan Kumar Bansal, Minister for Parliamentary Affairs and Science and Technology and Earth Sciences said, "There is potential for bilateral trade to go up to an estimated USD 6.5 billion from the current USD 2 billion.

Cross-border trade requires the movement of people and investments and both the countries are working towards increasing potential trade dynamics and economic activities."

The fair presents an exclusive range of products from almost all regions of Pakistan, including garments and embroidered fabric from Multan, Karachi and Lahore, ethnic footwear from Lahore and Multan, exclusive handicrafts from Swat Peshawar, decor products from Karachi, carved rosewood furniture from Peshawar, and designer melamine from Gujranwala.

Pakistan World Trade and Promotions CEO Khurshid Balras said, "Astonishingly, but true, major part of Pakistan's current export goes to the European Union and US. Presently, only 5.5 per cent of the Pakistan trade is done with SAARC counties, which stand a potential to improve it by 10 per cent."

Expo ''Made In Pakistan'' starts in Chandigarh, IBN Live News

 

[bc040400065]

Exports deliver rare good news for Pakistan
By Syed Fazl-e-Haider


Asia Times Online :: South Asia news, business and economy from India and Pakistan

KARACHI - Exports from Pakistan surged almost 30% over the past 10 months, and the trade deficit shrank by a third last month amid rising global commodity prices and a weakening of the rupee. The figures were rare good news for a struggling economy that depends to a large part on foreign aid and loans.

Exports grew 27.9% to US$20.18 billion during July 2010 to April 2011, from $15.77 billion in the same period a year before, outpacing a 14.7% increase in imports to cut the trade deficit in the period by 2%. Exports in April jumped 40% to $2.38 billion from a year earlier, and the trade deficit last month shrank by 34% compared with April last year.

"Pakistan has been consistently crossing the $2 billion [export] mark for the last five months," Associated Press of Pakistan

 

[Abu Zolfiqar]

Sindh Achieves Record Wheat Production

KARACHI: Sindh has achieved record production of wheat as the commodity’s yield has broken all the past records by reaching more than 4.219 million tonnes this year, Geo News reported on Friday.

According to sources in Sindh agriculture department, despite floods record wheat production is recorded this year.

It is pertinent to mention here that the federal government had set a target of 3.68 million tonnes for Sindh province.

Agriculture experts are of view that floods have enhanced the fertility of the soil, adding the production would further increase in the future.

Sindh achieves record wheat production - GEO.tv

 

[Obambam]

 

[Brotherhood]

Pakistan seeks investment lift - People's Daily Online May 20, 2011

More Chinese investment in Pakistan, especially in the energy, infrastructure, agriculture and technology sectors, will help lift the nation's economy to a new high, Pakistan's leader said.

Prime Minister Yousuf Raza Gilani called it a "win-win scenario".

Gilani, who began a four-day state visit to China on Tuesday, made the remarks at the Pakistan-China Entrepreneurs Forum held on Thursday.

Pakistani officials said their country could export more non-traditional goods such as "marble, leather, food and minerals" to China under the framework of China-Pakistan free-trade agreements (FTA), to realize the target of almost doubling bilateral trade to $15 billion by 2015. In the past, Pakistan exported mostly textile goods.

"As China diversifies its economy, with special emphasis on the development of its western regions, and shifts to high technology, the economic transition makes it attractive for Chinese companies to relocate and establish manufacturing bases in Pakistan," Gilani said.

"I would urge Chinese corporations to focus on Pakistan in their strategic business plans."

The sectors that hold huge potential for Chinese companies are "infrastructure, energy and natural resources".

Pakistan suffered heavy monsoon flooding last year and incurred huge losses. Its government is now attempting to reinvigorate the economy, discussing with China a second joint five-year economic and trade program, as the first one expires this year.

"Pakistan is a developing country, and our strategic priority is development. We are developing infrastructure, not only in railroad links, but also building new cities, airports and expressways," Gilani said.

China has helped Pakistan build the port of Gwadar, in Balochistan, and the Karakoram Highway, connecting northern Pakistan to western China.

However, the unstable political situation and shortage of energy resulted in foreign direct investment (FDI) in Pakistan declining during recent months. According to Pakistan's central bank, FDI decreased by 28.6 percent to $1.23 billion in the 10 months leading up to April.

"As the political situation stabilizes and the economy keeps growing, there will be increased potential for investment, and Pakistan's exports will gradually pick up," said Wan Gang, China's minister of science and technology, at the forum.

The coming years will see more investment in "energy, infrastructure, telecommunications and agriculture," he said.

China Mobile Ltd, the world's largest mobile operator by market value, is planning to buy Pakistan operations from its parent, China Mobile Communications Corp, said China Mobile's Chairman Wang Jianzhou on Thursday.

The Asian Development Bank predicted that Pakistan's economy would grow by a moderate 2.5 percent in 2011, and by 3.7 percent in 2012.

In 2006, the two countries signed the FTA, bringing more Chinese investment into Pakistan. By 2010, it had invested an accumulated $1.37 billion in Pakistan, according to the Ministry of Commerce, and in 2010 alone, the figure was $26.1 million.

"The investment is relatively large, and it is mainly in energy," Tariq Puri, chief executive of the Trade Development Authority of Pakistan, told China Daily.

After Thursday's forum, Ruba Group, Pakistan's leading industrial and trade group, signed agreements with the energy companies China Huadian Group and Tebian Electrical Apparatus Stock Co.

In late 2006, when the bilateral FTA was signed, the Pakistan-China Special Economic Zone was established, the first such zone China established overseas. The zone aims to facilitate Chinese investment into Pakistan, especially in the manufacturing sector.

China's Minister of Commerce Chen Deming said bilateral trade could reach $15 billion by 2015.

"As the China-Pakistan FTA is gradually implemented, such a goal will easily be reached," said Wan.

Puri agreed. "The bilateral trade would be probably more than that then."

Pakistan is China's second-largest trade partner in South Asia. In 2010, bilateral trade grew by 27.7 percent from a year earlier to $8.67 billion, with exports increasing by 25.5 percent to $6.94 billion and imports by 37.2 percent to $1.73 billion.

China exports chemicals, telecommunications equipment and machinery to Pakistan, and it imports textiles and minerals.

Source: China Daily

 

[Brotherhood]

China's ICBC opens two branches in Pakistan - People's Daily Online May 21, 2011

The Industrial and Commercial Bank of China (ICBC), China's largest commercial bank, inaugurated two branches in Karachi and Islamabad respectively on Friday.

Addressing the ceremony in Islamabad, Pakistani President Asif Ali Zardari said the ICBC initiative to open branches in Pakistan would begin a new era of cooperation in the banking sector of the two countries.

"The opening of ICBC branches, which coincided with the 60th anniversary of the diplomatic relations between Pakistan and China, will take the economic relations between the two countries to new heights," he said.

The president hoped that ICBC's investment in Pakistan would prove to be profitable and the bank would play a prominent role in channeling bilateral investments.

Huang Xilian, Chinese Charge d'Affairs to Pakistan, said the economic and trade cooperation between China and Pakistan is entering into a new historical stage of opportunities, featured with wide-range, multi-level and all-round.

ICBC President Yang Kaisheng said the increasingly closer economic ties between China and Pakistan has laid a sound foundation for ICBC's development in Pakistan.

Backed by its advantages in customer base, financial strength, network, IT and brand, ICBC Karachi and Islamabad branches will build up partnership with Chinese enterprises in Pakistan, support the local transportation, energy, telecommunications and other infrastructure, he said.

"They will provide quality and efficient service for companies and individuals, strive to become a bridge for Pakistan-China economic and financial cooperation and play an active role in facilitating the economic development of Pakistan," Yang said.

ICBC, ranking No. 1 worldwide in terms of market capitalization, profits, customer deposits and brand value, has been granted banking license and business certificate by the Pakistani regulatory authorities, becoming the first Chinese commercial bank operating in Pakistan.

Source: Xinhua

 

[ejaz007]

390MW power generation capacity added to system
Staff Report

ISLAMABAD: Two private sector power projects having cumulative net capacity of 390 MW have been added to the national grid.

The projects include a gas-based IPP i.e. 176.6 MW Fauji Dharki Power Project, which was commissioned on 22 April, 2011 and 213.8 MW Hubco-Narowal Power Project, which started its commercial operations on 16 May this year. This was briefed in the 88th meeting of the Board of Private Power and Infrastructure Board (PPIB) held Monday under the Minister for Water & Power Syed Naveed Qamar.

Secretary Water and Power Imtiaz Kazi, Secretary Planning Commission Sohail Ahmad, Secretary Petroleum and Natural Resources Muhammad Ejaz Chaudhry and Managing Director PPIB N A Zuberi, besides directors of PPIB and other senior government officials and co-opted members of the Board attended the meeting. Another three IPPs are in construction phase which include 209 MW Bhikki Power Project expected to be commissioned very soon while the other two include 84 MW New Bong Hydropower Project and Uch-II 375 MW Power Project based on gas, expected by 2013.

Naveed Qamar said the government believes in the policy of facilitating the investors and saving them from any hurdles or delays during the processing of their projects; therefore Policy for Power Gene-ration 2002 is being reviewed to make it more investor-friendly in consultation with public and private sectors’ stakeholders. He further said that in order to make electricity affordable, the concept to convert existing thermal IPPs to cheaper fuels like Coal, LNG etc is being seriously considered.

The progress of all the power projects was reviewed in the meeting. The Managing Director of PPIB gave a briefing on the status of power projects under process. While appreciating the role of the PPIB in bringing investment in the power generation sector, the minister asked the PPIB to focus on the development and implementation of the indigenous power projects based on hydro and coal for medium and long-term needs and take measures for facilitating the same.

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

Chinese co expresses interest in power generation

KARACHI: The President of China Water and Electric Corporation (CWEC) Wang Yu has offered Sindh government for financial and technical assistance in the establishment of a Hydro Power Plant at Sukkur Barrage on River Indus.

He pointed out the province has great potential for power generation through the establishment of hydro power plants as well as coal, wind and solar plants. The CWEC was ready to provide all possible technical assistance in enhancing capacity of presently working power plants, he added.

Wang Yu met with Sindh Minister Electric Power Shazia Marri along with a five-member delegation. During the meeting development of hydro, thermal, wind and solar power generation through CWEC’s expertise and technical support came under discussion. Wang Yu said his company was ready to initiate work on projects in hydro, coal, wind and solar energy power generation sectors immediately. Shazia Marri briefed the media the issue pointed out regarding the development of energy sector was necessary to meet the growing needs of energy. The Sindh Government has enlisted energy sector on top priority, she added.

Marri said the government of Sindh has initiated feasibility reports to look into the development of hydro power plants on 5 suitable points on River Indus of which Sukkur Barrage was recognised as the most potential area.

She expressed the government’s willingness to share available data regarding power generation possibilities in Sindh. staff report

Daily Times - Leading News Resource of Pakistan

 

[hembo]

Pakistan Inflation Accelerates to 13.23%, Adding to Interest-Rate Pressure
By Haris Anwar - Jun 1, 2011 12:50 PM GMT+0300

Pakistan’s inflation accelerated in May, holding above 13 percent for the third straight month and increasing pressure on the central bank to raise interest rates.

Consumer prices rose 13.23 percent from a year earlier, according to Federal Bureau of Statistics data released at a news conference in Islamabad today. That compares with a 13.04 percent gain reported earlier for April.

The State Bank of Pakistan kept the discount rate unchanged at 14 percent in May to support economic growth as it awaited this week’s budget for signs the government will tighten fiscal policy and help contain price pressures. The central bank raised rates in three consecutive meetings from July to November, blaming state spending for pushing inflation to more than 15 percent late last year.

“We see average inflation to be around 14 percent,” Sayem Ali, a Karachi-based economist at Standard Chartered Plc, said before the report. “There is a higher chance that the government will keep printing money.”

The government cut domestic fuel prices as much as 6.5 percent today, reducing the price of gasoline to 88.23 rupees ($1.03) a liter from 88.41 rupees and light-diesel oil to 82.52 rupees from 88.30 rupees, the Islamabad-based Oil & Gas Regulatory Authority said in a statement on its website. The price of kerosene fell to 84.65 rupees a liter from 89.70 rupees a liter.

Pakistan’s $162 billion economy, sapped by terrorism and floods in 2010, is forecast by the government to expand 2.4 percent to 2.5 percent in the year through June, slower than an earlier target of 4.5 percent. The country has the highest inflation rate in Asia after Vietnam, among 17 economies tracked by Bloomberg in the region.

To contact the reporter on this story: Haris Anwar in Islamabad at Hanwar2@bloomberg.net.

To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net

 

[hembo]

SBP to issue new circular to scrutinise written-off loans, SC told
By: Terence J Sigamony | Published: June 02, 2011

ISLAMABAD - The State Bank of Pakistan will issue a new circular for scrutinising all the cases of written-off loans under Circular BPD-29 and others from 1971 to onwards.

Iqbal Haider, counsel for SBP, on the short notice after consulting the Governor SBP informed the court on Wednesday.

‘Shahid H. Kardar, Governor State Bank of Pakistan, has agreed to issue new circular containing ways and means to examine the cases of write-off loans’, he added.

The court has mandated to the counsels of all the parties in the case to prepare a draft of circular and submit it before the bench by Thursday (today).
The Chief Justice said after finalisation of circular by SBP officials the matter would be referred to the Commission, whose terms of reference have already be formulated, to decide the written-off loans cases.

The court said that commission should have power not only to re-examine old loan cases, but if need arises reopen them as well. A three-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry which comprised Justice Muhammad Sair Ali and Justice Ghulam Rabbani was hearing a suo moto case of the written-off loans.

The State Bank has waived off loans worth Rs 256 billion from 1971 to 2009. During the proceedings, the Chief Justice said that they were examining the legality and Constitutionality of BPD-29 on the request of politicians, particularly MQM Quaid Altaf Hussain, who has sent an application that written-off loan cases from 1971 onwards be examined. He said according to Section 25AA of the Banking Companies Ordinance 1962 ‘the SBP shall prepare, and submit to the Federal government, a special report every year on cases of written-off loans, mark up and other dues, or financial relief through rescheduling and restructuring of loans in which established banking practices or authorised procedures have been departed from with a view to causing wrongful loss to the bank. If the matter raised in the report relate to public interest, the Federal government may submit the report, or such part of it as relates to public interest to Parliament or to the Standing Committee of a House of Parliament dealing with finance’.

 

[bc040400065]

Against all odds: FBR surpasses tax collection target in May

Published: June 2, 2011

ISLAMABAD:
Tax officials have claimed that they have surpassed the monthly revenue collection target by five per cent, making the annual target comparatively easy to reach by collecting Rs278 billion in one month.

According to the Federal Board of Revenue (FBR), tax collection in May increased by 5.1 per cent to Rs160.6 billion compared to the target of Rs152.8 billion. Compared to the same month last year, the FBR achieved a growth of 15.3 per cent as revenue collection rose by Rs50 billion.

Still the revenue growth is below the nominal Gross Domestic Product (GDP) growth of 17.4 per cent (15 per cent inflation plus 2.4 per cent GDP). Any growth above the nominal GDP growth indicates the extra efforts put in by the tax authorities. So far, Rs1,310.4 billion has been collected in taxes in 11 months.

Parliament had approved a tax target of Rs1,667 billion for the FBR, which was later brought down to Rs1,630 billion, then to Rs1,604 billion and finally to Rs1,588 billion. To achieve this, the FBR needs to collect Rs278 billion in June or an average of Rs9.2 billion per day.

Against all odds: FBR surpasses tax collection target in May – The Express Tribune