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Great job by PIF! Karachi needs an uplift badly to prepare for the economic boob we're yet to see. Infrastructure, energy supply, housing, water management all suck!

ADB's $800 million and PIF's $500 million could turn Karachi into a modern mertropole, hope the government and the KMC sticks with the modernisation. :)
 
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'Pakistan is fast growing economy'

LAHORE (December 20 2006): NSK, which is one of the leading bearing manufacturer companies, is focusing to grow its business in Pakistan, said Leonard Tan, General Manager, Asean and Oceania Aftermarket Business NSK.

Talking to Business Recorder after opening of Ahad International branch office at Empress Tower here on Tuesday, Tan said Pakistan is one of the fastest growing economies in the world and NSK is carrying out investigations to explore the possibilities of business potential.

He maintained that NSK, which was established in 1916, has at present 130 sales centres in as many as 25 countries of the world. The company has 21 manufacturing plants in Japan and 37 in other parts of the world, he said. To a question, he said NSK is going to set up its representative office and a branch office in the near future.

To another query, Tan said that NSK products support the moving parts that form the hearty of every machine. They are rigorously tested to ensure precision, quality, durability and safety under the most demanding conditions. In every industry, NSK technology enhances performance and opens up new product applications and categories.

He added that bearings are vital to any machine and in Japan they are called "the rice of the machine industry". The use of bearings is endless and these are several hundreds of thousands of different types used in almost the whole industry including textile, automobile, pharmaceutical etc. Nevertheless, bearings are vital to all machinery and the functioning of modern society because these enable cars to run smoothly and support the wheels of trains.

The Sales Manager Aftermarket Business NSK, Dennis Sim said on the occasion that purpose of opening representative office of the company in Pakistan is to provide technical support to customers of NSK products. Apart from this, necessary technical knowledge will be provided to the customers. He said that at present NSK has four distributors in Pakistan.

Ahad International Chief Executive S.M. Irfan on the occasion said that they are doing business with NSK for the last 23 years and purpose of opening the office at Empress Tower is to provide guidance and technical knowledge to customers.

From this new office Ahad International hopes to better serve its after market sales and offers the complete range of NSK's automotive and industrial bearing, and high precision positioning and electronic control products, he added.

Moreover, Irfan Sheikh hosted a dinner in honour of Leonard Tan and Dr Dennis Sim at the Royal Palm Golf and Country Club. The dinner was attended by leading industrialists from Punjab.

http://www.brecorder.com/index.php?id=509622&currPageNo=1&query=&search=&term=&supDate=
 
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This is the kind of development we need, more industrial plants under multinational consortium.

Next five year plan is being designed to focus on industrial growth, spoecially large scale and heavy industry will be promoted and will attract more companies like NSK to open plants in Pakistan. :thumbsup:
 
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Pakistan's first syndicated automotive study initiated

KARACHI (December 20 2006): JWT Asiatic and Oasis Research have initiated Pakistan's first ever-syndicated automotive study that will provide insights into the Pakistan automotive market.

According to a press release issued here on Tuesday, the continuing upsurge of consumerism in Pakistan has brought about a new demand for an incisive look into customer needs and aspirations. This national urban study will provide insights and invaluable information to better understand customer segmentation and assess their true potential.

The study has been subscribed by several automobile manufacturers in Pakistan and abroad. Results of the study would help companies fine-tune their strategies and offerings.

JWT is a 100 percent-owned subsidiary of JWT New York, part of the WPP Group Plc London. Oasis is one of Pakistan's premier research agencies.

http://www.brecorder.com/index.php?id=509570&currPageNo=2&query=&search=&term=&supDate=
 
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R & D is yet another sector that needs serious attention since demand for consumer goods will increase due growing desposible incomes.

We want to learn from the mistakes of other growing economies where this aspect has caused chaos and pollution due negligence.
 
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Chinese firm offers help to build second steel mill

ISLAMABAD (December 20 2006): Beris Engineering and Research Corporation of China has said it was ready to help Pakistan build its second steel mill. The company's president, Sun Xian Min said this during a meeting with the Engineering Development Board, CEO, Imtiaz Rastgar on Monday.

A 5-member Chinese delegation is currently visiting Pakistan. Xian said that the corporation had also shown interest in revamping the Karachi Steel Mill, but difficulties at the government level hampered such progress, said an EDB statement.

Briefing the delegation about Kalabagh project, Rastgar said the government was keen to restart it in view of the growth in steel market and shortage of its products.

He said that the Kalabagh project started in 1964 with the collaboration of a German company. The German company completed the necessary spade work and even started construction of blast furnace but the government shifted the project to Karachi.

He said although the iron available there is low in quantity yet all other ingredients, required for a steel mill, are there. The Chinese company can save a lot of time after going through the earlier findings of the German company, he added.

The Chinese delegation underlined the importance of steel in development of heavy industries in any country. The Chinese technology was most suitable for Pakistan as it was cheap compared to other countries, the delegation added.

The Chinese company had recently signed an MoU with a private steel manufacturing unit for expansion of their plant with indigenous input of Kalabagh iron ore.

The Chinese team also consists of blast furnace specialists and will visit Kalabagh mines soon. They are also going through the report of the German company to judge the feasibility of the project.

http://www.brecorder.com/index.php?id=509541&currPageNo=2&query=&search=&term=&supDate=
 
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Good news!

There's serious shortage in steel production and we're rely on imports. The only Steel Mill we have in Karachi was supplied by Russia in mid seventies and needs modernisation which is expected as soon as the privatisation is completed.

With new iron ore deposits discovered in Kalabagh, Sindh and Balochistan we can become selfsufficient and process the raw materials adding value to GDP.

We need atleast 8 million ton capacity in steel production to meet domestic demand till 2010.
 
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Iranian minister sees trade touching $1bn

ISLAMABAD: The trade volume between Pakistan and Iran can be enhanced from $650 million to $1 billion because considerable potential exists for expanding trade between the two neighbours.

Iranian Deputy Commerce Minister Dr. Sadegh Mofateh stated this while addressing a press conference here on Tuesday. He said the trade between Pakistan and Iran has increased from $141.7 million to $638 million during last six years.

He said “presently trade volume between the two countries is around $650 million which is not satisfactory and it has the scope of expansion to the level of $1 billion”. So that, he said, the volume of trade should be considerably enhanced.

He said Pakistan and Iran are committed in the friendship bonds, as a lot of commonalities exist between the people of both the countries.

Dr. Sadegh Mofateh said “We attach high priority to imports from Pakistan and wanted to enhance import of Pakistani Basmati rice”.

He said Iran could help Pakistan by providing export route to its goods towards Russia and other areas. “Iran can provide best route to Pakistani goods for exports”.

Responding to a question, he said, presently Iran import 200,000 tones of Basmati rice from Pakistan and this quantity can be enhanced many fold.

To another question, he said, we are negotiating with the authorities to set up Iranian Bank in Pakistan.

Meanwhile during a meeting with the Commerce Minister Humayun Akhtar Khan Iranian Deputy Commerce Minister Moffateh pointed out that exports from Pakistan have increased eight folds in last six years.

Humayun and Mofateh discussed bilateral trade between the two counties particularly the export of Basmati rice to Iran.

Khan told the visiting minister that Pakistan is a big exporter of kinnoo, which is unique to Pakistan.

Here it is important that Iran has quarantine requirement on export of Pakistani fruit like mango and kinnoo to Iran. There are no such quarantine conditions imposed even by the European countries on import of fruit from Pakistan. The visiting minister said that Iran exports onion but imports potato. Pakistan could export its surplus potato to Iran. He said that there is considerable potential for expanding trade between the two countries and the environment is ready for trade.

Pakistan and Iran have signed a Preferential Trade Agreement (PTA) in March 2004, which has become operational from September 1, 2006. Pakistan and Iran have granted tariff concessions on more than 600 items under the PTA. It is imperative to enlarge the ambit of PTA and to further deepen the tariff concessions.

http://www.thenews.com.pk/daily_detail.asp?id=36173
 
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ADB to help improve power transmission in Pakistan

The Asian Development Bank (ADB) is supporting Pakistan's program to remove transmission bottlenecks to power delivery through a multitranche financing facility amounting to 800 million U.S. dollars, an ADB report said on Wednesday.

The funds will rehabilitate and expand parts of the country's transmission system to meet present and anticipated future demand and ensure the system's continued operation and maintenance, said the report.

"Pakistan's present transmission system faces considerable risks and costly servicing because it is operating at or above rating limits," said Rune Stroem, an ADB Principal Energy Specialist.

"The system as it stands cannot keep up with present demand and risks major delivery constraints. Providing more reliable power is essential for growth and expansion of Pakistan's economy and, in turn, economic and social development," said Stroem.

Excess load on transmission lines at substations is one of the critical factors causing transmission and distribution losses in Pakistan's power system. At the end of FY2006, more than three quarters of the country's 500 kiloVolt and 69 percent of its 220 kiloVolt transformers were overloaded, said the report.

http://english.people.com.cn/200612/20/eng20061220_334387.html
 
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Pakistan to increase local cars production to 500,000 by year 2011: official

Pakistani government has introduced a five-year Auto Industry Development Plan (AIDP) aiming to increase local production of cars from 200,000 in fiscal year 2005-06 to 500,000 in 2011, a cabinet minister said Wednesday.

The development plan will help make local auto industry more competitive, create capacity for local design and innovation, domestic competition, human resource development and auto cluster development, said Jahangir Khan Tareen, Pakistani federal minister for Industries, Production and Special Initiatives, according to state-run Associated Press of Pakistan.

He expressed these views during a meeting with top leaders of the major Car Assemblers in Pakistan, including Toyota Indus Motor, Suzuki and Honda, according to the APP report.

Under the AIDP, the used car import policy will be regulated so as not to impede the growth of local industry while protecting the consumer interests, the minister said.

It was agreed during the meeting that indigenization of the local auto industry will be done as required under the AIDP, according to the report, with the minister saying that the government is keen to bring indigenization in the local auto industry.

The Assemblers were reportedly in agreement with the Ministry on almost all the points of the AIDP draft.

The automobile industry in Pakistan has witnessed tremendous growth during the last few years. The car production rose to almost 200,000 units by end 2005-06 from about 40,000 in the year 2002-03.

Source: Xinhua

http://english.people.com.cn/200612/20/eng20061220_334485.html
 
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Definatley, the auto industry is booming. Not only that the retail sector for automobiles is getting bigger. As economy grows people get bigger better cars and the auto manufacturers then set production plants. BMW, Mercedes, Volvo and others are already there and others coming.:flag:
 
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Government to develop knowledge-based economy: Musharraf

LAHORE (December 21 2006): The government is striving to create a synergy between education and requirements of the industry so as to develop knowledge-based economy in the country. This was stated by President General Pervez Musharraf while speaking at the fifth convocation of Government College University (GCU), here on Wednesday.

Punjab Governor Khalid Maqbool, Chief Minister Pervaiz Elahi, Education Minister Imran Masood and GCU Lahore Vice-Chancellor Dr Khalid Aftab were present on this occasion.

The President said that nine engineering and science and technology universities were being set up in different parts of the country with the assistance of leading universities of the developed nations like Germany, Austria, France, the Netherlands, Italy, China and Korea to help produce world class technical manpower. "No absolute sovereignty exists in the world, as sovereignty is directly dependent on economic stability. Therefore, it is imperative to strengthen economy in order to fortify sovereignty of the country," he said, and added that any country, which is dependent on others, cannot claim complete sovereignty.

"Our textile sector constitutes 60 percent of total exports, and if the US and Western countries stop buying our products, textile sector would collapse and workforce would lose their jobs," he added.

He said: "The GDP of all 57 Muslim countries, which produce 70 percent of world's oil and 50 percent of gas is half of Japan and less than Germany. A very small country having no natural resources is earning over $400 billion. On the contrary, Pakistan has potential to exploit in the field of gemstones but, without cutting and polishing technology which adds hundred times value, could not take advantage of this natural resource.

"Similarly, despite the fact that we are fifth milk producing country, we are importing butter, yogurt and other milk products. Now it is time to run very fast and develop our human resource. We have enhanced budgetary allocation for education sector from 2.7 percent of GDP to 4 percent, which constitutes Rs 150 billion. We also need to make additional allocation for this vital sector."

He said: "Pakistan is a 'leadership failure state' because the previous leaders could not harness human and natural resources potential that we had. The society as well as previous governments failed to develop Pakistan of 160 million population and huge natural resources. The previous leaders should have built Kalabagh Dam and Bahsha Dam and resolved NFC award and addressed issues concerning provincial autonomy and grievances of Balochistan. The present government has adopted the policy of long-term gain for which we can bear short-term losses."

He said that the standard of primary and secondary education is pathetic and realistic approach needed to be adopted to overcome this challenging issue. "The government is now aware of this problem that where we stand in education," he added.

He said that the government was also improving literacy rate through universalism of education so that the children should have access to primary school within a range of one kilometre. The National Commission for Human Resource has been assigned the task of achieving 85 percent literacy rate by the year 2010. The government is also focusing on improving teachers' potential, curriculum and examination system.

He called for learning geography and said that this subject had gained significant importance because everything, including geo-politics, geo-economic, geo-strategic, relate to learning of geography. "Now relations, be it political or be it economics, are developed on the basis of geography of a country," he added.

President Musharraf said that unemployment was also a problem of this country, which could be redressed by promoting technical education and vocational training centres. "Information technology and computer sciences are market-driven subjects and we must look at the market to decide about acquiring education. The students should avoid going for FA/BA/MA and Ph D, which provide nothing except frustration. We will also have to look for the area of science and technology in which gap is gradually widening in comparison with the developed countries," he said.

He said the government is going to set up nine engineering universities in the country which would help save foreign exchange being spent at present on students for studying abroad. Work has already been started on universities being set up by Pakistan and France in Karachi, by Pakistan and Austria in Lahore and by Pakistan and Sweden in Sialkot, while work would be started on all universities by the year 2008. Out of nine universities, four including one in Multan would be set up in Punjab, three in Sindh and one each in NWFP and Balochistan, he said.

Talking about Ph D education, he said that Pakistan was producing only a couple of dozen Ph Ds, while the Higher Education Commission has planned to produce 1500 Ph Ds by the year 2009-2010, for which budget allocation has been enhanced from Rs 600 million to Rs 28 billion.

He said that corruption and nepotism are problems of serious concern, as in their presence no system can flourish. He lamented that a group has spread the misconception that Islam is in danger in Pakistan, "which is totally wrong". "We just want a tolerant society and no one should be allowed to impose his own point of view on others. This is the time to dictate peace that is for the benefit of Pakistan in particular and for Muslim Ummah in general."

The Pakistani nation has to show to the world that to whom they want to give power in elections 2007, either to moderate and progressive forces or extremists forces, he added.

Punjab Governor Khalid Maqbool said that number of male students in 17 public sector and 16 private sector universities has been increased from 41,000 to 100,000, and female students from 12,000 to 40,000 in just six years. Similarly, the education budget has been enhanced from Rs 1 billion to Rs 11 billion during the period. In order to promote higher education in remote areas, the provincial government is setting up campuses from Chakwal to Rahim Yar Khan. Besides harmonising academic calendar and improving curriculum, the examination system has also been revamped and improved to make it more transparent. However, the research being done in the universities is not included in international ranking, "and that is our ultimate goal" to be achieved, he added.

G.C University Vice Chancellor Dr Khalid Aftab presented the university report.

http://www.brecorder.com/index.php?id=509877&currPageNo=1&query=&search=&term=&supDate=
 
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Efforts on to maintain economic growth rate: Prime Minister

ISLAMABAD (December 21 2006): Prime Minister Shaukat Aziz on Wednesday highlighting the economic achievements of the government said there was need to check population growth rate, improve infrastructure, better security and continuity of policies to maintain 7 to 8 percent growth rate in the economic sector.

Addressing a seminar on "the economic growth potential for the emerging economics in 21st century and Pakistan's position in the emerging economies" organised by Ministry of Finance here at Prime Minister Secretariat, Aziz said due to structural reforms and macro-economic policies, Pakistan would sustain 7 percent growth rate in economy.

He said: "Pakistan required macro-economic stability, financial discipline, and consistent and transparent policies to bring the country back to the path of high and sustained growth." He said due to prudent macro-economic policies and structural reforms pursued by the government have transformed a fragile economy into a stable and resurgent one.

The prime minister said Pakistan's economy continues to maintain a solid pace of expansion over the last four years. He said the economic recovery had been strong, rapid, sustained and broad-based. He said with economic growth averaging almost 7.0 percent per annum during the last four years, Pakistan had positioned itself as one of the fastest growing economies in the Asian region.

He said this strong growth has been achieved in spite of several exogenous negative shocks, including October 2005 earthquake thereby clearly reflecting the resilience of Pakistan's economy and its capacity to absorb shocks.

The growth momentum that Pakistan has sustained for the last several years is underpinned by dynamism in industry, agriculture and services and the emergence of new investment cycle with investment rate reaching new height at 20 percent of GDP, he said.

The prime minister said, "We believe that pre-requisites for sustained economic growth appear to have gained a firm footing during the last four years." He said besides improved governance, human capital and physical infrastructure were needed to encourage the private sector to play a leading role in promoting investment and growth. The prime minister said the government on its part needed to redefine its role in the economy and encourage the private sector to improve its role.

http://www.brecorder.com/index.php?id=509951&currPageNo=1&query=&search=&term=&supDate=
 
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'EU attaching high priority to trade with Pakistan'

LAHORE (December 21 2006): European Union (EU) is attaching high priority to trade with Pakistan and encouraging the EU investors to make investment in Pakistan, as consistency in policies and the liberal environment provided by the present government has now started yielding results.

These views were expressed by head of the 11-member EU Parliamentary delegation Neena Gill while speaking at Lahore Chamber of Commerce and Industry (LCCI) on Wednesday.

The EU delegation consisted of Edward Macmillan Scott, Josef Leinen, Robert Evans, Philip Kamaris, Claudia Schwendenwein, Ruth De Cesare, Balthasar Benz and Parliamentary Secretary Rozina Tufail. LCCI President Shahid Hassan Sheikh, Senior Vice President Yaqoob Tahir Izhar, former Senior Vice President Sohail Lashari, Executive Committee members Shafique Riaz, Syed Umair and Mohammad Riaz were also present on the occasion.

While appreciating the economic reforms initiated by the government, the head of the delegation said that this was a right time that the chambers of commerce in Pakistan should establish linkage with EU chambers to increase the volume of two-way trade. She averred that EU acknowledges Pakistan's efforts for poverty alleviation and economic revival but there is a need to take more steps for improving its perception in the eyes of foreign investors," she added.

LCCI President Shahid Hassan Sheikh said that enhancement in trade and investment between Pakistan and EU countries is possible through active engagement of the chambers of two sides, frequent exchange of economic and trade delegations, as this would help identify the areas of mutual interest. "Participation of Pakistani exporters in the international trade fairs in EU and vice versa could also expand trade between the two countries. The real problem is the denial of market access to Pakistani products," he added.

According to him, the level of trade between the two sides could be increased significantly by giving greater market access to Pakistan by removing anti-dumping duties imposed at the rate of 5.8 percent by the European Union on the export of bed linen from Pakistan, and doing away with the subsidies provided by EU to its agriculture to give a level playing field to Pakistan.

Shahid Hassan Sheikh informed the delegation that doing business in Pakistan is comparatively easy to other South Asian Nations. He averred that the top ranked countries in the region are Maldives (53), Pakistan (74), followed by Bangladesh (88), Sri Lanka (89), Nepal (100), India (134), Bhutan (138) and Afghanistan (162). "Pakistan has been the runner-up reformer in South Asia this year," he added.

He said that Pakistan's growing economy and its strategic location as a regional hub gateway to Central Asian Republics, large consumer market, abundant natural resources, cheap but skilled labour and liberal investment friendly policies offer immense opportunities for foreign investors. According to him, Pakistan's agriculture produce is among the best in the world but we have failed to exploit our traditional strengths in agriculture, horticulture, livestock and food processing because we lack technology. Pakistan is the fifth largest producer of milk in the world. EU equipment, cool chains and technologies could exploit Pakistan's full potential in these sectors.

Speaking on the occasion, LCCI Senior Vice President Yaqoob Tahir Izhar said that business environment in Pakistan has improved considerably and Pakistan's economy has been growing at the rate of 7.5 percent on average over the last three years. He averred that investment cycle is gaining momentum and foreign investment has increased by almost three times. "Pakistan's stock market is one of the best performing markets of the world. It has outperformed the markets of Malaysia, India, Indonesia, Egypt and Turkey. Pakistan's investment policy offers attractive terms to foreign investors; 100 percent foreign equity has been allowed and no government sanction is required. Remittance of capital, profits, dividends, royalty has been allowed," he added.

http://www.brecorder.com/index.php?id=509889&currPageNo=1&query=&search=&term=&supDate=
 
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Economic reforms are starting to show results.

Just a few years ago when Pakistan became major ally in US led WoT the EU offered to ease quota's on some Pakistani export products which didn't go well with some of our neighbors.

Today, only five years later its a different story, its the EU coming to us now!

Well done Mushy and Aziz!
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