Pakistan's Economy - News and Updates

[iioal malik]

8 billion dollars were the dept since this government took over.regardless of every piece of corruption by PPP n co i have no doubt this government will bring Pakistan back on it's feet.Keep ignoring the haters n be optimistic ..Long live pakistan

 

[That Guy]

8 billion dollars were the dept since this government took over.regardless of every piece of corruption by PPP n co i have no doubt this government will bring Pakistan back on it's feet.Keep ignoring the haters n be optimistic ..Long live pakistan

No, that was the circular debt, our actual debt is over $65 billion dollars.

Pakistan Debt Clock :: National Debt of Pakistan

 

[Edevelop]

Bank of Punjab more than doubles profits

KARACHI: On Friday, the Bank of Punjab announced its earnings, multiplying its profits two and half times as exemptions from provisioning allowed by the State Bank in the wake of crisis and income from non-core operations relieved pressure of the bottom-line.

According to a notice sent to the Karachi Stock Exchange, the bank earned Rs1.004 billion in the first half of 2013 ending June 30, compared to Rs406 million in the corresponding period of last year. The earnings announcement was not accompanied by any payouts, however the notice said the auditors’ without qualifying their opinion have emphasised on relaxation given by the regulator, undertaking and equity injection arrangements by the Government of Punjab. Moreover, all of the Public Sector Development Programme funding the Punjab government will receive will have to go through the Bank of Punjab.

Bank of Punjab’s equity has risen Rs940 million in the six-month period as the government injected money into the bank, while its deposits grew Rs30 billion to Rs296 billion and advances shrunk Rs11 billion to Rs139 billion showing that the bank has been working on growing deposit-base while cutting down lending.

Resultantly, net interest income of the bank, excluding provisions, saw an increase of 11.7% to Rs1.1 billion in the period. Reversals in provisioning expense of the bank to the tune of Rs930 million also boosted the growth in earnings.

The State Bank had allowed the Bank of Punjab to not provision for Rs30 billion in bad loans. That provisioning would cost the bank over Rs27 billion, which would more than wipe out the bank’s total equity of close to Rs13.3 billion on June 30, 2013.

The exemption from provisioning appears to be consistent with the State Bank of Pakistan’s policy of letting time heal all financial wounds. As a response to the 2008 crisis, the central bank allowed all banks to take asset write-downs over four quarters, instead of having to provision for them all at once.


Non-interest income of the bank witnessed an increase of an impressive 91% as higher capital gains due booming stock market and surging other income helped the bank earn Rs2.05 billion in the semi-annual period, while climbing expenses on account of expansion operations absorbed more than the non-core income leaving the company with a net profit after tax of Rs1.004 billion.

Corporate results: Bank of Punjab more than doubles profits – The Express Tribune

 

[ziaulislam]

No, that was the circular debt, our actual debt is over $65 billion dollars.

Pakistan Debt Clock :: National Debt of Pakistan

infact circular debt was paid by simply taking more debt!!

 

[Edevelop]

Railways earns Rs 2.92b in two months

LAHORE, Aug 31 (APP): The Pakistan Railways has earned Rs 2.92 billion during two months due to its pro-passenger policies through introducing discount rates for them in trains. According to the PR sources here on Saturday, the department has earned additionally Rs 670 million as compare to the previous year and an additional Rs 249 million than the budget.

It is pertinent to share that the PR had introduced a special discount on fare for rail-cars run between Lahore and Rawalpindi in Ramazan.
It had also reduced fare up to 60 percent on several sections and trains which produced a positive result and the income of the PR had been increased.
The steps also attracted passengers and number of passengers had also been increased due to facilities and discount fare.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Railways earns Rs 2.92b in two months

 

[Edevelop]

Indonesia, Pakistan to operationalize Preferential Trade Agreement on Sunday

ISLAMABAD: Indonesia and Pakistan have agreed to operationalise the Preferential Trade Agreement with effect from September 1 (Sunday) ensuring greater market access to Pakistani products in the country.

The Indonesia-Pakistan Preferential Trade Agreement (IP-PTA) was signed in February 2012, the Ministry of Commerce said in a statement here on Saturday.

The PTA's operationalization followed the signing of a Mutual Recognition Agreement (MRA), on plant quarantine and SPS measures, between Indonesia and Pakistan, on Friday and acknowledging Pakistan as a pest-free area for Kinnow.

Indonesia also allowed the entry of this product through the Tanjung Port of Jakarta.

Through these steps, Pakistani agriculture products will gain a greater market access in Indonesia, the statement added.

Under the IP-PTA, Indonesia would grant market access, at preferential rates, for products of export interest for Pakistan, including fresh fruits, cotton yarn, cotton fabrics, readymade garments, fans (ceiling, table, pedestal) sports goods (badminton and lawn tennis rackets), leather goods and other industrial products.

Indonesia has also granted market access to Kinnow from Pakistan at 0%, which is expected to significantly enhance the export of this product to that country.

Similarly, Pakistan would provide market access, at preferential tariff rates, for products of export interest for Indonesia.

Pakistan has extended the same concession for Palm Oil products from Indonesia as provided to Malaysia under Pak-Malaysia FTA, i.e. 15% Margin of Preference (MoP) over the MFN tariff.

This would help in decreasing the prices of vegetable ghee, cooking oil e.t.c in the country and have a positive impact on the overall economy of the country.

It is expected that the mutual trade arrangements with Indonesia would also contribute to enhance our trade linkages with other economies in the ASEAN region and help in the diversification of our export markets.

Indonesia, Pakistan to operationalize Preferential Trade Agreement on Sunday

 

[That Guy]

infact circular debt was paid by simply taking more debt!!

rule of finance, things must get worse before they get better. There is no way to avoid this.

 

[ziaulislam]

Railways earns Rs 2.92b in two months

LAHORE, Aug 31 (APP): The Pakistan Railways has earned Rs 2.92 billion during two months due to its pro-passenger policies through introducing discount rates for them in trains. According to the PR sources here on Saturday, the department has earned additionally Rs 670 million as compare to the previous year and an additional Rs 249 million than the budget.

It is pertinent to share that the PR had introduced a special discount on fare for rail-cars run between Lahore and Rawalpindi in Ramazan.
It had also reduced fare up to 60 percent on several sections and trains which produced a positive result and the income of the PR had been increased.
The steps also attracted passengers and number of passengers had also been increased due to facilities and discount fare.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Railways earns Rs 2.92b in two months

so is this the revenue or is it profit?

 

[Edevelop]

Pakistan producing 6.16mn ton rice annually

FAISALABAD: About 438 million ton rice is produced in the world Pakistan produces 6.16 million ton rice annually.

A spokesman for the agriculture department told APP on Sunday that Pakistan was exporting 3.75 million ton rice every year.

He said more than 4,198,456 acre land was brought under rice cultivation in Punjab last year which produced 3,460,123 ton rice.

"The Rice Research Institute is developing new varieties which will not only have strong resistance against bacterial leaf blot disease but also produce high yield," he added.

"In Pakistan, new hybrid rice varieties are being developed which would give maximum yield by utilizing minimum input costs during water scarcity," he added.

He said the Rice Research Institute had developed new techniques to cultivate rice through a broadcasting system instead of manual sapling plantation. Under the new technique, if farmers succeed in planting 80,000 plants in a field, they will get 6-8 maund more production besides saving input costs up to Rs 14,000 per acre. This technique is not only cheaper but also helps save 30-35 % irrigation water, he added.

Pakistan producing 6.16mn ton rice annually

 

[ejaz007]

Lucky Cement’s profit jumps 43% in FY13


KARACHI: The Lucky Cement Limited announced its fiscal year (FY) 2012-13 result on Tuesday. It posted profit after tax (PAT) of Rs 9.7 billion, reregistering 43 percent increase as against PAT of Rs 6.8 billion in last fiscal.
Lucky Cement, Pakistan’s largest cement company announced FY13 earnings per share (EPS) of Rs 30.04 as against Rs 20.97 in last fiscal year. The FY13 marks the year where Lucky Cement recorded the highest-ever profit. The company also announced dividend payout of Rs 8.0 per share along with the result.
Despite volumetric variance of 1.0 percent, topline grew by 13 percent to Rs 37.8 billion as against Rs 33.3 billion during the corresponding period last year due to sharp increase in cement prices, said Topline analyst Asad I Siddiqui.
The company successfully increased its export market share to 27.3 percent in FY13 as against 26.3 percent in the previous year. On local front, Lucky Cement’s market share fell by minor 0.5 percent to 15 percent, the analyst added.
Revenue per tonne of the company rose by 12 percent to Rs 6,240 as against Rs 5,578 during the same period previous year. Cost per 50 kilogrammes (kgs) bag on the other hand inched up by 1.0 percent. This resulted in gross margins expansion by 6.0 percentage points to 44 percent.
Other income was realised at Rs 248 million during the current year as against Rs 5.0 million during the same period previous year.
In the fourth quarter of FY13 the company posted profit of Rs 2.72 billion as against Rs 2.69 billion in the third quarter of FY13, up 2.0 percent while is up 30 percent as against Rs 2.09 billion in the same period last year.
Striving for quality, Lucky Cement has placed orders for two vertical grinding mills to be installed at Karachi plant. In addition to this, the company is planning to introduce Tyre Derived Fuel (TDF) at Pezu Plant to replace coal. Furthermore, the company is in negotiations with PESCO to supply surplus power to the DISCO, said Siddiqui.
According to the analyst at Shajar Capital, higher earnings stem from a 13 percent increase in the company’s topline despite stagnant dispatches and considerable improvement in the company’s other income.
The company’s volumetric sales grew by a meagre 1.4 percent to 6.1 million tonnes while residual variance in the topline came from increased retention prices. Bifurcating the volumes sales, local sales rose by 1.0 percent while company was able to achieve a growth of 2.0 percent in its exports.
On the other hand, retention prices are estimated to have increased by 12 percent to Rs 312 per 50kgs bag.
High cement prices and lower international coal prices (down yearly 30 percent) also reflected positively on the company’s margins. Lucky Cement’s gross margin increased by 6pps on yearly basis to 44 percent in FY13. staff report

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

‘NZ offers good opportunities for promoting Pak exports’
Staff Report


ISLAMABAD: New Zealand offers good opportunities for promoting the export of Pakistani products.
This was stated by Pakistani High Commissioner to New Zealand Zehra H Akbari in Wellington during a meeting with a nine-member delegation of local businessmen led by Islamabad Chamber of Commerce and Industry (ICCI) Founder Group Chairman and former ICCI president Sheikh Tariq Sadiq, which visited New Zealand to explore business opportunities.
Ms Akbari said a large number of Pakistani and Indian communities are living in New Zealand having same culture and eating habits. Thus Pakistani businessmen have great scope to promote export of their agro and food products to New Zealand.
She said Pakistan and New Zealand have enjoyed good relations over many years, especially in the field of sports, education and culture, but trade and economic relations are still below their existing potential. She said New Zealand is now focusing towards Asia for trade and Pakistani businessmen should accelerate their efforts for tapping all untapped areas of exports promotion.
She said more business delegations from Pakistan should visit New Zealand to explore new trade prospects. She assured that Pakistan Embassy in New Zealand would extend all possible support and facilitation service to Pakistani entrepreneurs for improving bilateral trade and economic relations between the two countries.
The delegation represented different areas of agro sector including flour millers, rice millers, Halal food processors, exporters and poultry farmers. The matters regarding bilateral trade were discussed and the business prospects for Pakistan were highlighted.
Speaking at the occasion, Sadiq said we have come here to discover more trade opportunities for Pakistani products, especially in agro and food sectors. He said there are opportunities for exporting Pakistani food products, mangoes, textiles, apparel, carpets and software products to New Zealand.

Daily Times - Leading News Resource of Pakistan

 

[salman77]

Pakistan: Mangoes worth $60m exported

All-Pakistan Fruit and Vegetable Exporters, Importer and Merchants Association chairman Waheed Ahmed said mango export got underway with limited quantities to Japan followed by trial shipment to Australia.

He said problems emerged in sending mango shipment this year as the UK rejected mango consignment from Pakistan while big export opportunities were also lost in Japan and US.

In a statement, he said quality related issues also cropped up at Dubai market, causing huge losses to exporters during June. Waheed said exporters lost Iranian market of 30,000 tonnes causing loss of $10 million this season.

However, huge demand of mango arrived during Ramazan in markets, like Saudi Arabia, Middle East, UAE, Afghanistan and Central Asia which fetched better prices as compared to last year, he said.

A record shipment of 165,000 tonnes of mango worth $60 million was achieved this season as compared to 118,000 tonnes last year, valuing $38 million.

Pakistan: Mangoes worth $60m exported

 

[American Pakistani]

Pakistan producing 6.16mn ton rice annually

FAISALABAD: About 438 million ton rice is produced in the world Pakistan produces 6.16 million ton rice annually.

A spokesman for the agriculture department told APP on Sunday that Pakistan was exporting 3.75 million ton rice every year.

He said more than 4,198,456 acre land was brought under rice cultivation in Punjab last year which produced 3,460,123 ton rice.

"The Rice Research Institute is developing new varieties which will not only have strong resistance against bacterial leaf blot disease but also produce high yield," he added.

"In Pakistan, new hybrid rice varieties are being developed which would give maximum yield by utilizing minimum input costs during water scarcity," he added.

He said the Rice Research Institute had developed new techniques to cultivate rice through a broadcasting system instead of manual sapling plantation. Under the new technique, if farmers succeed in planting 80,000 plants in a field, they will get 6-8 maund more production besides saving input costs up to Rs 14,000 per acre. This technique is not only cheaper but also helps save 30-35 % irrigation water, he added.

Pakistan producing 6.16mn ton rice annually

TBH 6.14 million tons rice is nothing. An agrarian country producing just 6.14million tons rice is a joke, it can do alot better than this.

 

[ejaz007]

Major development : OMV boosts gas supply in Pakistan by 100 MMSCFD
By Ijaz Kakakkhel


SAWAN/ISLAMABAD: In a major energy sector development, Pakistan witnessed headway in integrated gas supply chain.

This happened as Prime Minister Nawaz Sharif inaugurated the first gas delivery into the 47-kilometre long gas pipeline connecting four development wells of Latif Field with the Sawan Processing Plant. This iconic project led by OMV will result in 100 million standard cubic feet per day (MMSCFD) targeted supply of gas to Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Ltd (SNGPL).

As winter inches closer the new development has been received as good news by industrial as well as domestic stakeholders and consumers across Pakistan. OMV along with its joint venture partners Eni and PPL has been working on the project commissioned by Directorate General of Petroleum Concession (DGPC) under the provisions of the Petroleum Policy 2012.

The field has been contributing to the country’s gas production since December 2008. DGPC approved the Latif Field Development Plan (FDP) on June 8, 2012 with an addendum reflecting joint venture commitment for development activities and respective funding. In return the govenrment allowed 2012 policy gas price for the incremental volumes beyond the FDP base production once a minimum 10 percent increase is achieved in gas production upon its execution and formal notification.

As a pragmatic result, Latif JV received regulator’s (DGPC) approval on June 8, 2012 for Latif discovery; Declaration of Commerciality, FDP and the grant of Development and Production Lease over 178 square kms based upon the agreed dual-pricing mechanism. The government also nominated the buyers for Latif gas allocating 50 percent sales volumes each to SNGPL and SSGC.

The revised scope of work in this retrospect includes drilling, completion and tie-in of four development wells; well compression facilities; 47 kms 16 inches CS pipeline to connect Latif Field to Sawan Plant; reception and metering facilities at Sawan.

One of the major project activities; 47 kms of 16 inches pipeline was awarded to two leading contractors SNGPL and Pipe Link Construction that led to simultaneously commence activities thus reducing the pipeline construction time by 50 percent with a further improvement in time due to competitive environment.

Known for the high-held HSE records, OMV ensured completion of Latif Field Development Project while achieving 3.0 million LTI free man-hours with average manpower deployment of around 1,400 at multiple work sites.

The prime minister hailed OMV, its joint venture partners and all contractors engaged in this landmark project on setting examples of excellence while serving the communities and caring for the environment.

During the graceful ceremony, its was also highlighted that several community development schemes will benefit Latif in addition to Miano, Sawan and Gambat concessions population. OMV is already supporting six schools in the region with local cooperation. On the sidelines, a Training Resource Centre was also established to ensure the quality in education. In addition opportunities have been provided to local youth to obtain technical education and widen their career prospects.

On account of healthcare for communities in proximity with this phenomenal project of national energy security - Family Medical Centre at Chundko, District Khairpur was established. The project also enabled Hepatitis B Prophylaxis vaccination with the financial support of Austrian Development Agency (ADA) benefiting almost 33,000 people from the local communities while support for polio eradication has also been a priority area of focus for the project’s social responsibility initiatives.

It is a encouraging to see that foreign direct investment continues to focus on Pakistan as democracy gains stronghold. Besides an exponential boost to the energy-critical gas supply system of Pakistan undoubtedly the Latif Field Development Project provided job opportunity to thousands of unskilled locals throughout the project life besides engaging local contractors in transportation and logistics. It has also been reported that the local landowners received handsome compensation for their land for the right of way for gas transporting pipeline while roads infrastructure was also built in interior Sindh regions to the well sites and facilities.

With more exploration and production players following the success stories of OMV, the future of Pakistan’s energy sector looks promising.

Daily Times - Leading News Resource of Pakistan

 

[jupiter2007]

Pakistan is not fully taking advantage of Gwadar Port.... Pakistan work toward establishing commercial port in Pasni and Ormara to in next 5-10 years to reduce dependency on Karachi Port. If the port is established in these cities, these will eventually become major metropolitan cities in Southern Balochistan.