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PIA passenger market up 3.3 percent despite oil bill increase

KARACHI (April 01 2007): With fuel prices expected to be averaging below $60 per barrel, and plan in hand to streamline overheads, PIA has all the potential to successfully revive itself and rebound during the next 12 months. This was stated in a meeting of the airline's Board of Directors, which reviewed its operating performance and approved the 2006 audited accounts.

It was noted that he aviation market in Pakistan, throughout 2006, remained highly competitive and maintained open access to airlines both from within and outside the country. Overall, the passenger market increased by 3.3 percent, while PIA achieved a growth of 4.4 percent (from 5.44 million passengers in 2005 to 5.68 million in 2006).

The airline achieved a passenger seat factor of 71.4 percent on scheduled services whereas 'passenger yield' increased by 6.1 percent over the previous year. Cargo load factor increased to 61.9 percent in 2006 and 'cargo yield' grew by 12.1 percent. PIA retained its share in the international segment and increased its domestic market share to a healthy 69 percent.

The airline substantially modernised its fleet through acquisition of three wide-body state-of-the-art Boeing 777 and induction of three brand new ATR 42 Turbo aircraft to partly replace the Fokker fleet. With the acquisition of Boeing 777 LR, nonstop flights were introduced to Canada for the first time.

The Board was informed that for the year under review the airline's expenditure rose because of the fuel bill. This increased expenditure was essentially caused by the simultaneous occurrence of factors that were both extraneous and unavoidable.

The single key factor for increased operating expenditure in 2006 was the abnormal increase in fuel cost by Rs 6.9 billion, 26 percent higher than the previous year.

Since mid-2005, the crude oil prices in the world market have been witnessing abnormal increase, which reached its peak in late 2006 when crude was being sold at $78 per barrel. As a consequence, the aviation fuel prices also showed sharp increases.

Since PIA had not hedged its fuel prices, unlike some other airlines, all the cost increases were absorbed in the respective period accounts. For the year 2006, PIA fuel bill rose from Rs 26.5 billion in 2005 to Rs 33.4 billion in 2006, showing an increase of 26 percent over previous year.

PIA's fuel bill, as a percentage of sales (47 percent) was far higher than the industry average of 31 percent. Apart from unhedged fuel, it also significantly pointed to the high rate of burn-off of fuel on the ageing aircraft, as average age of PIA's fleet was 20 years at the beginning of 2006--much higher than the industry average.

In addition to fuel, the airline experienced substantial cost increases in the aircraft chartered for meeting scheduled and Haj traffic, engineering/maintenance, aeronautical and flight handling and selling and distribution cost.

Compared to 2005, the interest cost increased by an additional Rs 2 billion to Rs 4.8 billion--71percent increase over previous year-- primarily due to additional borrowing for the purchase of three Boeings 777 and three ATR aircraft, and increased short-term borrowings due to fuel price-led operating loss.

Moreover, increase in interest rates in the country also contributed to the increased financing cost. Despite grounding of 6 Fokker aircraft in July 2006 and some restrictions from European Union under their Safa Program in October 2006, PIA's revenues increased by 10 percent.

"If we are to measure PIA's performance by isolating the abnormal impact of fuel price increase, then the airline using 2004 fuel price level would have posted a profit of Rs 3.3 Billion in 2005 and another profit of Rs 1.5 Billion in 2006, after including increased financing costs", said PIA Chairman Tariq Kirmani, who chaired the Board meeting.

"This is so because all the indicators critical to evaluating an airline's performance have shown improvement in 2006, whether it is market share, number of passengers carried, aircraft utilisation, yield increase, or revenue improvement," he added. During the year under review many strategic and operational levels of initiatives were taken for improving the quality and productivity of the human resources, which eventually should also improve the morale among the 18,500 manpower, he said.

During the year, PIA inducted 42 newly qualified MBA Trainee Officers, 50 Trainee Engineers and 841 Cabin Crew for its expanding fleet. In the area of training, 293 newly inducted cabin crew were trained in 2006 including 55 from overseas, whereas 264 PIA employees were trained in various management disciplines by visiting trainers. Moreover, PIA Training Centre Instructors were trained under train-the-trainer program from Iata, European Union and aircraft manufacturers like Boeing and ATR. Performance Appraisal training was conducted for more than 3000 employees of supervisory/middle & senior management levels.

The airline is going through a challenging time with some new pressures like the March 7, 2007 EU restriction on part of PIA fleet, which is taking priority. It is expected that the airline will be able to resolve the EU issue within the first half year 2007. The management will continue its accelerated emphasis on high standards of safety and engineering maintenance. At the same time, the airline management and the Board have agreed on a plan to accelerate the modernisation of its fleet through cost effective means so as to aim for an average fleet age of around 10 years. PIA is already in the final stages of selecting replacement of aircraft for its narrow body Boeing 737 fleet. Moreover, the process to replace Boeing 747 fleet is also under review by the management.

New state-of-the-art technologies, like Sabre Revenue Management System, are currently under test-run, which would accurately predict future demand enabling PIA to proactively allocate fleet and related resources to be competitive in a complex market environment. This will also help maximise revenue, help enhance market share and keep a close watch on competitive pricing strategy. Additional 3-5 percent revenue is being forecast through this system.

Kirmani said the airline is constantly improving its systems and processes to improve productivity and control cost. In addition, our action in 2006 to expand the distribution network through participation in major GDRs is also expected to generate additional sales as PIA services are now available to a much larger distribution base," he concluded.

http://www.brecorder.com/index.php?id=545462&currPageNo=2&query=&search=&term=&supDate=
 
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Shaheen Air buys two Boeing 737s

KARACHI: Shaheen Air International has purchased another two Boeing 737 aircraft, thus leading to a fleet of seven aircraft.

In a press statement issued Monday, the airline’s spokesman Farooq Nasir Khan said that one Boeing would arrive at Karachi Airport early this week, however the other one has departed from USA and arriving at Karachi Airport on April 6.

He said that with a fleet of seven self-owned Boeing 737 aircraft, Shaheen Air has robust plans and endeavors to expand its flight frequencies swiftly.

http://www.dailytimes.com.pk/default.asp?page=2007\04\03\story_3-4-2007_pg5_16
 
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PIA moves towards global alliances

KARACHI (April 04 2007): Pakistan International Airlines has taken another step forward towards its mission of "Participating in Global Alliances". PTA recently entered into code share agreements with Thai Airways & China Southern Airlines.

PIA and Thai Airways have entered into an exclusive strategic alliance whereby the two airlines will code share on all flights operated by both airlines between PIA & Thailand. This agreement is effective from March 25, 2007 in the summer 2007 schedule. Thai Airways will be operating 12 weekly frequencies, five from Lahore, four from Karachi and three from Islamabad. PIA will be operating four frequencies per week, two each from Karachi & Islamabad, However, PIA is presently operating only two weekly frequencies between Islamabad and Bangkok

Passengers will now have the option to travel on any of the 14 frequencies with greater flexibility of itinerary. Passengers will also be free to travel on any route without the requirement of endorsement. For example a passenger holding ticket on Karachi-Bangkok-Karachi route can now travel on Karachi-Bangkok-Lahore or Karachi-Bangkok-Islamabad or Islamabad-Bangkok-Islamabad by any of the two airlines. The two airlines have also extended SPAs to each other on domestic sectors.

Pakistan International Airlines (PK) and Thai Airways (TG) have also agreed on establishing common market selling fares from Pakistan & Bangkok and through fares on all beyond points that are not served by PTA.

In another step forward, PIA & China Southern Airlines have entered into a long term strategic partnership. The two carriers now have code share on all flights between Pakistan & China effective March 25, 2007. China Southern Airlines (CZ) is the marketing partner on Pakistan International Airline's (PK) operated flights between Islamabad and Beijing. The flights will also carry CZ flight numbers. Similarly, PIA is the marketing carrier on CZ operated flights between Urumqi and Islamabad.

PIA shall have six weekly frequencies to the People's Republic of China, three to Beijing and three to Urumqi PIA is already a code share partner of AeroSvit airlines of Ukraine for operation between Karachi and Kiev since November 2006. PIA operates between Karachi and Dubai with AeroSvit (VV) as the marketing partner. AeroSvit operates between Dubai and Karachi with PIA as the Marketing Carrier. Passengers travel between Karachi and Dubai on PK flight numbers.

PIA and THY (Turkish Airlines) are also operating under code share agreement on flights between Pakistan and Istanbul since June 2006. PIA operates on Islamabad-Istanbul route while Turkish Airlines operates on Istanbul-Karachi route.

The code share agreements with four airlines in nine months is indicative of PIA's commitment and resolve to join global alliances to expand its network and frequencies so as to provide convenience to its customers and improve the economics of PIA operation.

http://www.brecorder.com/index.php?id=546186&currPageNo=3&query=&search=&term=&supDate=
 
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All set to launch Nishter Express today

RAWALPINDI (April 04 2007): Pakistan Railways will start a new train named Nishter Express on Wednesday to ply between Rawalpindi and Karachi for which all the arrangements have been finalised at Rawalpindi railway station. Federal Minister for Railways Sheikh Rasheed Ahmed will see the train off at 11am.

The deputy superintendent of Rawalpindi Railways Division Muhammad Hayat Malik told this scribe that Nishter Express would run from Rawalpindi on every Wednesday and Saturday leaving at 2pm in the afternoon which will reach Karachi the next day at 10.30am. The train would run from Karachi on every Monday and Thursday, he said.

He said the Express train would touch Lahore, Multan, Rohri and Hyderabad have eight coaches including one A/C parlour, 3 A/C lower, two economy class coaches, dining car and a power coach. Three A/C lower and a power coach would be attached with the train from Lahore. He said that fare of A/C parlour would be Rs 2020 while A/C lower Rs 1975, economy class seat fare would be Rs 685 and along with berth it would be Rs 765. Malik said that coaches of the Nishter Express were locally assembled in Railway Carriage Factory using Chinese technology.

He further said Railways has planned to run two more non-stop trains including Mianwali Express between Rawalpindi and Mianwali and Pindi Express between Rawalpindi and Karachi. He said that a Freight Express would also be launched on April 11 from Faisalabad followed by launch of Mianwali Express on April 16 from Rawalpindi and launch of Pindi Express on April 30.

http://www.brecorder.com/index.php?id=546175&currPageNo=3&query=&search=&term=&supDate=
 
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Bab-e-Pakistan to be ready by August 2009

Staff Report

LAHORE: The minister for the chief minister’s inspection team, Col (r) Shuja Khanzada, said on Thursday that work on Bab-e-Pakistan was in full swing and the project would be completed by August 2009.

Inspecting the progress on the project, he said, Bab-e-Pakistan would reflect the Islamic and Mughal architectural heritage of South Asia and the culture of the four provinces as well as Azad Kashmir. He said, “Bab-e-Pakistan will be a symbol of national unity.”

Khanzada said that the Bab-e-Pakistan project, covering 103 acres, would be completed at a total cost of Rs 2.09 billion. He said that the 164-feet tall monument would have the kalima engraved on it. He added that an auditorium, a library, a museum, an exhibition hall, a mosque, a high school for boys, a high school for girls and a garden would be part of the project.

Khanzada credited the project theme to President Pervez Musharraf and Chief Minister Pervaiz Elahi. He said the CM would visit the site soon. He added that information about the Pakistan Movement, along with pictures and messages of national heroes, would be available for visitors at Bab-e-Pakistan.

He said a special body would be established to maintain the monument. He said colleges and university would also be set up near the monument in the future.

http://www.dailytimes.com.pk/default.asp?page=2007\04\06\story_6-4-2007_pg7_47
 
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Private airlines to get more flying rights :tup:

By Masood Anwar

KARACHI: The government has decided to break with its tradition of giving protection to the national flag carrier - Pakistan International Airlines - and restructure the National Aviation Policy.

Under the new policy, the government would facilitate private airlines over foreign carriers with an offer of fifth freedom traffic rights without non-reciprocities, minutes of the National Trade Corridor Improvement Programme (NTCIP) revealed.

Fifth freedom is the right of an airline from one country to land in a second country, to then pick up passengers and fly on to a third country where the passengers then disembark.

Moreover, restructuring of the Civil Aviation Authority (CAA) and privatisation of major airports were also on the cards, documents showed.

“The grant of fifth freedom traffic rights has been included in the new aviation policy,” according to a presentation on the national trade corridor given to Prime Minister Shaukat Aziz on March 1.

“The policy should not be restrictive/selective giving the impression of being protective to a specific airline,” the meeting was told. “Access to Northern gateways should be made liberal.”

As a result of the PM’s directives, the CAA has given fifth freedom rights to Royal Brunei Airline with intermediate stops at Singapore and Dubai while negotiations are underway with Qatar Airways, which may get permission soon.

Talks with Qatar on Bilateral Air Services Agreement (ASA) were held in September 2006 and Qatar Airways had provided sufficient capacity to handle fourth and fifth freedom, the meeting told the PM.

Sources said Qatar Airways had also proposed to start domestic flights in Pakistan and the Ministry of Defence was considering the proposal.

In the new aviation policy, private sector airlines could avoid mandatory operation on low-yield routes of remote areas.

“The spirit of providing connectivity to remotest areas in Pakistan is appreciated. However, operation on secondary routes may not be made mandatory for the private airlines as it would be at the cost of their financial viability. Provision of some incentives for them to fly on these routes may be made in the proposed policy,” the minutes said.

The secondary routes included Moenjodaro, Zhob, Saidu Sharif, Dalbadin, Parachinar, Sehwan, DI Khan, Hyderabad, Ormara, Rawalakot, Muzaffarabad, Chitral, Gilgit, Panjgur, Turbat and Jiwani.

Earlier, the private sector airlines were bound to operate on a minimum of two secondary routes.

Moreover, the private airlines will also be free to fly on lucrative international routes. Previously, they were not allowed to do so in order to give protection to the PIA.

The meeting also discussed the division of Civil Aviation Authority’s functions. In a presentation to the Vice President of World Bank, Praful Patel, the director-general CAA said the government had planned division of the authority into regulatory, commercial and operating areas.

He also told the World Bank the CAA would encourage Pakistani private sector airlines to operate on international routes.

Under the heading of objectives required to be achieved, the meeting was told privatisation of airports and restructuring of CAA should be done.

Building of airport cities at Karachi and Lahore having business centres, leisure facilities, amusement parks, logistic parks and transshipment facility is also underway. The CAA was directed to take steps for the inclusion of private sector in ground handling activities.

http://www.thenews.com.pk/daily_detail.asp?id=49760
 
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Friday, April 06, 2007

‘Banking industry to play due role in infrastructure uplift’

KARACHI: The Governor of the State Bank of Pakistan (SBP), Dr Shamshad Akhtar, has said that the central bank and commercial banks, being socially-responsible corporate entities, are committed to infrastructure development in the country.

Dr Akhtar was speaking at the foundation stone laying ceremony for the reconstruction and refurbishment of I I Chundrigar Road held here at the SBP head office on Thursday.

The road is being built with the financial assistance of commercial banks.

The SBP governor described the project, estimated to cost Rs 220 million, as a manifestation of public-private partnership.

She expressed optimism that the beautification project of I I Chundrigar Road will be completed within four months as assured by the city nazim, Syed Mustafa Kamal.

Dr Akhtar appreciated presidents of commercial banks for their contribution top the project, and hoped that the institutional mechanism established for the implementation of the project will help ensure its completion in record time.

She said the State Bank will also make contribution to the project after obtaining approval from its board shortly.

She said that in order to meet growing infrastructure requirements of the banking industry, the SBP and commercial banks, in consultations with the relevant

government departments, have floated a proposal to set up a financial district in Karachi.

The proposed financial district will have state-of-the-art facilities, she said, adding that a steering committee under her chairmanship has already been set up. Other committee members would be drawn from the Pakistan Banks’ Association and the City District Government Karachi.

The SBP governor urged banks to continue to play their role in the development of the city and ensure cleanliness of their premises as well as adjoining areas.

Earlier, the city nazim, Syed Mustafa Kamal, briefed the SBP governor about salient features of the project. He said that the reconstruction of I. I. Chundrigar Road will be completed within four months. In order to strengthen the security of this vital business area, a network of close-circuit cameras will also be installed on the refurbished I I Chundrigar Raod, he said, adding that Karachi, a financial and commercial hub of the country, is now regarded as one of the 12 mega cities of the world.

The ceremony was attended, among others, by the president of National Bank of Pakistan, Syed Ali Raza, senior bankers and officials of the City District Government Karachi.

http://www.dailytimes.com.pk/default.asp?page=2007\04\06\story_6-4-2007_pg5_9
 
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Prime Minister approves development of new port city in Balochistan

ISLAMABAD (April 07 2007): Prime Minister Shaukat Aziz has approved in principle the concept for the development of a new self-contained port city on the Balochistan coast, which will provide business, tourism, housing and industrial development opportunities to Pakistani and foreign investors.

The prime minister was chairing a presentation on the proposed port city called Alladin Cove at the PM's House on Friday. The actual city would be located at Miani Hor on the Balochistan coast.

He said that the decision to develop the new port city with world class infrastructure, including roads, airport, hotels, IT, banking, industrial parks and oil refineries had been taken in pursuance of the announcement made by President General Pervez Musharraf to develop a new city on March 20 during his visit to Gwadar to inaugurate the Deep Sea Port.

During his presentation, the Chairman Karachi Port Trust, Vice Admiral Ahmed Hayat told the meeting that Pakistan's fourth sea port of the country would be developed at Miani Hor a lagoon near Sonmiani, which is located 80-km North West of Karachi.

The prime minister said that the selected area should be clearly delineated and acquired and the services of a world-class developer should be sought through international tenders to prepare a master plan for the proposed city.

He said that in addition to being a port the new city would be a tourist resort and an industrial hub and would open new vistas of economic opportunities and create thousands of jobs, which would benefit not only Balochistan but the entire country.

He appreciated the positive role of Chief Minster Balochistan, Jam Mohammad Yousaf and the provincial government in facilitating yet another mega project, which would benefit the people of Balochistan.

http://www.brecorder.com/index.php?id=547502&currPageNo=2&query=&search=&term=&supDate=
 
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New Islamabad airport costs surge to $650 million

ISLAMABAD (April 07 2007): The cost for new Islamabad International Airport has increased from $350 million in 2005 to $650 million in 2007 and those abreast with the cause of escalation believe that at the end of the day project will cost $800 million to the nation.

The increase in cost even today is Rs 18 billion at 1=60 dollar/ rupee exchange rate. President General Pervez Musharraf is going to perform groundbreaking of this mega project but without a detailed engineering design on April 7.

Sources said Civil Aviation Authority (CAA) had awarded a Rs 1.5 billion contract of levelling and grading of the land to M/s Hussnain & Co, a Lahore-based construction company, a year back and work is already in progress.

But CAA is yet to hire a consultant for detailed engineering design of the project. Even a lay man can understand that a detailed engineering design is pre requisite to start with an important project like the new Islamabad International Airport.

The purpose of levelling and grading work without detailed engineering design appears to be ensuring groundbreaking for the airport project with the given timeframe.

Sources said CAA had advertised for hiring a consultant for detailed engineering design sometime back and after going through the initial work it's negotiating with CPG- an Australian company- presently engaged with Singapore Authority for the similar job. The experts say the CAA will get the detailed engineering design ready for the project in 8 to 10 months after the award of the contract.

Probably, for the same reason CAA is hinting at start of construction work of the project in 2008. It perhaps does not include grading and levelling in construction work. The CAA estimates of Rs 38 billion for cost of the project, which according to its work plan, will complete in 3-4 years, is also indicative of the concerned authorities perplexity.

The project of constructing a green field Islamabad International Airport was conceived in 1988, by the then president Ziaul Haq, but it could not take-off due to CAA and other departments' indecisiveness. The past events and developments indicate that the concerned authorities kept on changing mode of work and procedure of award of contract for years.

They offered the project to the private sector sometimes on BOO and sometimes on BOT basis but each time the decision was reversed for the reasons known to those who delayed it for 19 years that multiplied its cost besides depriving Islamabad from an airport of the world standard.

http://www.brecorder.com/index.php?id=547570&currPageNo=2&query=&search=&term=&supDate=
 
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PIA shows growth in revenue

KARACHI (April 07 2007): PIA showed a healthy growth and positive trend in all indicators critical in evaluating an airline's performance. It will be seen from the figures that while revenue growth has been 11percent and 10 percent in FY 2005 and FY 2006 respectively, or in other words from Rs 57.7 billion to Rs 70.5 billion, all this gain was neutralised by the increase in fuel prices in the last two years.

This was coupled with the increase in interest rates and interest payments due because of the induction of new aircrafts like the Boeing 777's and the ATR's into the PIA fleet. Had this not been so, and the fuel prices had remained constant at the FY2004 level, PIA would have posted a massive Rs 4.12 billion in profit in the last two years.

However, that was not to be the volatile, unpredictable and almost indifferent nature of the hike in fuel prices was a severe blow to the entire airline industry that cumulatively cost it USD 46 billion extra in fuel cost in five years from 2001 to 2005. Most airlines are still recovering from this unavoidable burden.

In PIA this figure increased from 31percent 2004 to 41percent in 2005 going up to 47percent in 2006 and this percentage is of the total revenues earned. This phenomenal increase is much higher then the industry average of 31percent. In monetary terms this meant that PIA spent Rs 34.1 billion on fuel in 2006 as compared to Rs 19.1 billion in 2004 and Rs 26.9 billion in 2005 showing an Increase of 26.8percent.

Similarly, compared to 2005, the interest cost increased by an additional Rs 2 billion to Rs 4.8 billion, which again was a 71,percent increase over last year. On top of all this, there was a substantial cost increases in aircraft chartered for meeting scheduled and Hajj traffic, engineering and maintenance, aeronautical and flight handling, selling and distribution cost.

The loss to the airline due to these factors would have been very great had them not been a positive trend in all the performance. In sheer performance terms the airline carried 5.7 million passengers in 2006 as compared to 5.5 million passengers in 2005.

This is very significant because whereas the overall passenger market increased by 3.3 percent, PIA achieved a growth of 4.4 percent. Passenger yield increased by 6.1percent and the seat factor stood at 71.4percent in 2006. In the year 2006 the load factor increased from 52.5 in 2004 to 62.4. Cargo yield increased from Rs 3.6 in 2004 to Rs 4 in 2006.

Aircraft utilisation was below par due to the grounding of Fokker aircraft and the as yet uncompleted new aircraft induction. There were 48 aircraft in 2004 whereas there were only 39 aircraft in 2005 and 40 in 2006. The average age of the PIA fleet was 21 years in 2004. Today, in April 2006, the average age of the fleet is 16 years.

By the end of June 2007 the average age of the fleet will further reduce to 11 years. The number of employees was reduced from 19,312 to 18,258 the aircraft to employee ratio still remained much higher at above 400, compared to the international average of 150 employees per aircraft.

http://www.brecorder.com/index.php?id=547597&currPageNo=2&query=&search=&term=&supDate=
 
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'New Islamabad airport to complete in four years'

ISLAMABAD (April 07 2007): Project Director Islamabad International Airport Masood Salam on Friday said that the new Islamabad international airport equipped with modern and state of the art facilities would be completed in four years.

Talking to a TV channel, he said it would bigger than Lahore and Karachi airports and the structure of the building would depict Islamabad's culture. 30,200 acres land has been acquired for the airport, while fencing of the land has already been completed, he added.

The construction work will start in June 2008, while the ground levelling has already been started at a cost of around Rs 1.5 billion, he said adding the contract for this project has been given to an American company, which will complete the initial project in eighteen months.

Masood Alam said that the estimated cost for construction of new airport is Rs 24 billion and the funds would be provided by Civil Aviation Authority. Immediate target is to handle 0.1 million tons cargo by 2010 and it would be the second one after Hong Kong in Asia regarding cargo handling. It would be linked with M1 and M2 having facilities of the motorways, he added.

Alam said the area would be developed commercially. He said that they would follow the international standards for the construction of airport and maintain quality, adding the CAA would be responsible for its maintenance.

He recommended that the new airport area be declared special zone and CDA laws be implemented there. The construction of new Islamabad airport would generate thousands of job opportunities, he added.

http://www.brecorder.com/index.php?id=547638&currPageNo=2&query=&search=&term=&supDate=
 
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Karachi airport: visa counter to be set up for tourists: Nilofar

KARACHI (April 08 2007): Federal Minister for Tourism, Nilofar Bakhtiar has informed the business community that a counter will be set up at Karachi airport for issuance of visa on arrival for tourists. Addressing members of Karachi Chambers of Commerce and Industry (KCCI) on Saturday.

She said that a counter for issuance of visa in arrival has already been established at Islamabad airport. About visa policy, she said that the new visa policy puts Pakistan a head of many countries in promoting tourism and added that the government has allowed national of 24 countries to get visa on arrival for tourism.

Criticising Pakistani embassies, high commission and consulate abroad, she said that many Pakistani mission do not know about this arrangement although servile circulars and advises were sent to them.

Regarding tourism promotion, she said that the government has declared year 2007 as the "vision of Pakistan year". In this regard the ministry has devised a number of events to celebrate and has prepared a full-year tourism promotion calendar.

Nilofar Bakhtiar pointed out that Pakistan is a land of great splendour, which has remained largely undiscovered and has a lot to offer tourists coming to visit this country. Pakistan is a destination, suitable for all kinds of excursions.

Describing unique selling points for tourism, she said that out of 14 highest peaks 5 are located in Pakistan, Pakistan offers world class climbing and hiking areas, sacred religious sites of significance to Muslim, Sikhs, Hindus and Buddhists, sea sports, etc.

The minister informed that the ministry has prepared a comprehensive tourism marketing strategy, which has been approved by Prime Minister of Pakistan. Main focus of tourism promotion policy is to target those countries that do not have travel advises against Pakistan. Criticising travel advises, she said that in many website Pakistan is market as red area whereas Kabul has been market as green areas. No country has put India on negative list although bomb blast also occurred in this country. Many countries in the world are facing worst conditions then Pakistan but they are not on negative list, she added.

The minister said that not only the foreign media but also the national media playing a big role projecting negative image of Pakistan. Whenever we asked foreign media about projecting bomb blats, burning of houses and vehicles they informed that footage is being provided by Pakistani media, she added.

She said that she has visited a number of countries to counteract the negative image that Pakistan has abroad. Efforts have also been made to bring Pakistan on the forefront as a welcoming and tourist friendly country.

Nilofar Bakhtiar pointed out that the tourism ministry faces many challenges to realise this mega task including negative country image abroad and substandard civic infrastructure. The ministry is making efforts to undertake tourism promotion activities including arranging presentations and road shows in target market cities, identifying and train a multi lingual young sales team She commented that Pakistan is a Muslim country, which allows every religion to hold ceremonies according to their religious traditions.

http://www.brecorder.com/index.php?id=547958&currPageNo=1&query=&search=&term=&supDate=
 
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Tuesday, April 10, 2007

Pakistan, India renew 3-year Samjhota pact

ISLAMABAD: Pakistan and India on Monday renewed an agreement on running the Samjhota Express between Wagah and Atari for another three years.

Pakistan Railways General Manager (Freight) Gulrez Hashmi and Indian Railways Adviser (Traffic) SR Thakur singed the agreement at the Railways Ministry, where Railways Minister Sheikh Rashid Ahmed and India’s Deputy High Commissioner in Islamabad Man Preet Vohra were also present.

The agreement between India and Pakistan on rail communications via Wagah, which was renewed on January 20, 2004, expired on January 19 this year.

Later, the Indian government asked Pakistan to extend the agreement for three months, till the renewal of the agreement. Finally, the two countries finalised the agreement at a meeting on Monday, extending it till January 19, 2010.

After the meeting, Ahmed said that both countries had decided to add two passenger coaches each to Samjhota Express and Munabao Express.

He said that it had also been decided to impose a penalty equal to 10 times of the base rate on passengers carrying luggage over 35 kilogrammes in Economy Class and 50 kilogrammes in First Class. Ahmed said that the Indian delegation had told him that India could help Pakistani relatives of the people killed in the Samjhota train bombings identify their relatives through DNA tests.

He, however, said that he had not received any formal update from India on investigations into the Samjhota Express bombings.

Vohra said that investigations into the train bombings were in progress.

http://www.dailytimes.com.pk/default.asp?page=2007\04\10\story_10-4-2007_pg7_2
 
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PNSC to buy two oil tankers, one bulk carrier

KARACHI (April 14 2007): The financing deal of $135 million between Pakistan National Shipping Corporation (PNSC) and ABN-Amro Bank for acquisition of two oil tankers and one bulk carrier is likely to be finalised in a month or two.

Sources told Business Recorder that the Ministry of Ports and Shipping has given November 16, this year, to the national flag carrier for the purchase of all three vessels. In this regard, a technical team of PNSC has inspected some suitable vessels for purchasing, but they were waiting for finalising the financing deal of $135 million with ABM-Amro Bank.

Interestingly, the corporation did not seek any government guarantee for financial deal with the bank. The new vessels include two double-hull oil tankers of 'Aframax class' and one bulk carrier of 'Panamax class'.

The vessel acquisition plan would cost an amount of $150 million, of which $135 million has been arranged through financing from bank (ABN-Amro Bank), while remaining amount of $15 million would be provided by the corporation from its own financial resources.

Earlier, the Prime Minister Shaukat Aziz has given approval for the purchase of three vessels. The corporation fleet renewal and expansion plans are continuing with its efforts to add more tonnage to its fleet. The corporation obtained necessary approvals from the federal government that also appreciated the plan and it is expected that these vessels would be inducted in fleet in this financial year, 2006-07.

The national flag carrier have to replace its ageing oil tankers as one of its oil tankers would be out of business under restrictions of Condition Assessment Scheme (CAS) of International Maritime Organisation (IMO) in 2007, while another three tankers would fall under the same in 2010.

Lack of adequate fresh tonnage (new ships), due to past financial constraints has resulted in gradual deterioration of the PNSC fleet in terms of age profile and unless the trend was reversed, foreign vessels would grab a bigger chunk of the country's sea borne trade, the sources said.

The age profile of the fleet, however, is gradually deteriorating, as, in terms of dead-weight tonnage (DWT), over 62 percent of the fleet of 15 ships with about 636,182 DWT is over 26 years old, while remaining 38 percent is 23 to 18 years old.

With this age profile it has been estimated that over 60 percent of the fleet needed to be replaced within next four to six years. During the past three years, the corporation paid $21.9 million for the purchase of three oil tankers-MT Shalamar, MT Swat and MT Johar-while MT Lalazar was purchased for $13.5 million and a bulk carrier MV Kaghan for $15 million.

With the help of these two oil tankers the country's liquid cargo import, especially crude oil handling, would be enhanced. Now, the corporation manages a fleet of 10 multipurpose cargo ships, four Aframax tankers and one bulk carrier under its flag.

These tankers are over 20 years old, as new tankers are very costly and financial constraints have forced the corporation to opt for second-hand vessels in the past. The requirement of double-hull tanker, against single hull, came into force in 1998, and those countries operating old oil carriers have to replace them with the new version of tankers-double-hull.

A new tanker of double hull of 'Aframax' class costs around $40 million to $60 million, but PNSC had purchased four single-hull oil tankers at a cost of about $35.4 million. However, sources said that better maintained tankers have a longer life. "The purchase of all four tankers was arranged from our own financial resources, without borrowing a single penny from any financial institution," the source added.

At present, the corporation is lifting only 20 percent of the country's total national carriage that stands at 55 million tonnes, due to high growth activity in national economy.

The national flag carrier has already secured a 10-year "Contract of Affreightment" from January 20, 2003, for crude oil transportation with Pakistan Refinery Limited, National Refinery Limited and Pak-Arab Refining Company.

The corporation also transported 90,900 tons crude oil from the Gulf to Colombo for Sri Lanka-based Ceylon Petroleum Corporation and also got itself registered with the company.

In mid-1990, the Corporation had availed a loan option of $50 million from National Bank of Pakistan (Bahrain) for the purchase of three small size gearless container vessels. These three vessels were used for feeder services and have a carrying capacity of about 1100 'twenty equivalent units' (TEUs).

http://www.brecorder.com/index.php?id=550250&currPageNo=2&query=&search=&term=&supDate=
 
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Pesco to build five new grid stations

PESHAWAR (April 14 2007): The Peshawar Electricity Supply Company (Pesco) will construct five new grid stations and would augment heavy power transformers of 19 over loaded grid stations in different parts of the province. This was told to 38th Board of Directors meeting of the company held under the chairmanship of Wing Commandar Jamshed Savul (Retd) at Wapda House Peshawar.

Chief Executive Pesco Brigadier Sakhi Marjan, Dr Mir Hatim Khan, Ahmed Nawaz Mughal, Members, and Pesco's senior management officers attended the meeting. The BoD also welcomed new member Dr Maqbool Khan on the board.

Anwar-ul-Haq Yousafzai Secretary Board of Directors presented a comprehensive report about the minutes of 37th Board of Directors meeting and after detailed discussion the minutes were approved with minor amendments. In order to overcome the problems of overloading causing frequent breakdowns and excessive line losses, BoD accorded approval for bifurcation of feeders so that the electricity problems could be solved.

The chief executive Pesco informed the directors that Pesco has electrified 2,300 villages last year while in the current fiscal year it has electrified 1,300 villages so far and efforts are underway to electrify all the villages of NWFP by the end of December 2007 as directed by Wapda.

The BoD directed the concerned field officials to further improve their performance and curtail the line losses and increase recovery pace and make all out efforts to the menace of illegal use of electricity. Chairman, Board of Directors stressed to start the campaign against illegal use of electricity.

The BoD was informed that after the October 8, 2005 earthquake, the most debilitating natural disaster hit Hazara and Azad Kashmir areas and destroyed the whole infrastructure of power distribution system. Pesco Management and its technical staff made hectic efforts and used all available resources and provided electricity to camps, temporary hospitals and public. The BoD was also informed that the ERRA has approved the PC-1 and immediately after release of loan the rehabilitation work on permanent basis will be started.

Briefing members of the Board of Directors Chief Executive Pesco Brigadier Sakhi Marjan informed that in order to overcome the problems of overloading Pesco will construct 5 new grid stations while heavy power transformers would be augmented in 19 over loaded Grid Stations under 6th STG Program.

Similarly, work on erection of 75km-long 132 KV Transmission line would also be made in the months to come. He told that Pesco has completed a number of developmental projects last year including erecting of HT & LT lines. He said that since July 2006, Pesco has completed 21 HT Line projects while work on 43 HT proposals is under way and would be completed soon.

Similarly work on 373 LT has been completed, and work on 843 LT projects has already been approved. By completion of these developmental works the Pesco distribution system would be improved and the low voltage problem would also be solved.

The BoD has accorded approval for recruitment of sons of 3 martyred Pesco employees and 2 injured workers and also approved Rs 200,000 compensation grant for each to Rural Sub Division D.I.Khan meter reader & Driver of Mardan who sacrificed their lives during performing their duty.

The Pesco Board of Directors appreciated the overall performance of the Pesco team and expressed the hope that they would work with same spirit and zeal for company's welfare and to solve the consumer's complaints at their doorstep. The board of directors also approved a number of technical and managerial matters.

http://www.brecorder.com/index.php?id=550289&currPageNo=1&query=&search=&term=&supDate=
 
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