Pakistan Economy - News & Updates - Archive

[Owais]

Pakistan's debts reduced to half in seven years: Prime Minister

ISLAMABAD (February 03 2007): "Pakistan's external and internal debts have been reduced to half during the past seven years", Prime Minister Shaukat Aziz said here on Friday. He gave facts and figures about the performance of Pakistan's economy for the past seven years at a book launching at the Prime Minister House.

He said that in 1999 Pakistan's external debt was 51.7 percent of the GDP, which came down to 26.3 percent of the GDP in September 2006. In 1999, the debt was 300 percent of the foreign exchange earnings, which is now 111.7 percent. The debt was 19 times of the foreign exchange reserves in 1999; now it is 3 times.

Similarly, internal public debt has also been reduced to half. The Prime Minister said: "Our economy has doubled during the past 5 years with an average yearly GDP growth of 7 percent, making Pakistan as one of the most attractive countries for foreign investment."

He said that Pakistan is one of the few countries which have adopted 'fiscal responsibility laws' to ensure openness, financial discipline and transparency for all times to come. He said that in a short span "we have regained our economic sovereignty and said goodbye to the International Monetary Fund for borrowing on its terms and conditions." He said that investors from USA, EU, Middle East and Far Eastern countries were rushing to Pakistan for investment, "as Pakistan is a market of 160 million hard working, intelligent and peaceful people".

He said that the present government believes in freedom of the press and welcomes criticism of its policies. Earlier, the author of the book titled 'Pakistan - Sovereignty Lost', veteran journalist Shahid ur Rehman spoke about the dismal performance of previous successive governments in Pakistan, leaving the people high and dry. The ceremony was attended by Minister for Information & Broadcasting, Mohammad Ali Durrani, economists, senior government officials, intellectuals and journalists.

http://brecorder.com/index.php?id=524797&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

February 03, 2007

Donors to fund Bhasha dam

By Khaleeq Kiani

ISLAMABAD, Feb 2: The World Bank and the Asian Development Bank (ADB) have agreed to finance the construction of $6.5 billion Diamer-Bhasha dam and increase overall funding to Pakistan to about $4 billion.

Prime Minister Shaukat Aziz told Dawn on Friday that he had meetings with presidents of the two institutions during his recent visit to Davos and both agreed to fund the mega dam.

He said the ADB had agreed to enhance its annual funding to Pakistan to about $2 billion and the World Bank would also be catching up.

The ADB’s annual financing to Pakistan currently stands at $1.45 billion as part of three-year country assistance strategy while the World Bank provides about $1.25 billion per annum. As such, the total annual funding from the two institutions currently stands at about $2.7 billion.

The government has estimated a total foreign exchange requirement of $17 billion for big dams. This includes $2.964 billion for Bhasha dam alone.

The prime minister said the overall needs would be spread over many years.

The government had decided to develop big hydel projects in the public sector if the private sector investment was not available because of long gestation period, he said after presiding over the first meeting of the cabinet committee on energy (CCE) earlier in the day.He said Bunji power project alone had the capacity to produce 5000MW electricity.

He said he had also issued instructions for restoration of the 1995 hydel power policy to encourage investment in this sector. He, however, said the construction of small hydel projects would not solve the energy problem on long-term basis and hence big projects would have to be taken in hand.

Mr Aziz said he had expanded the composition of the CCE. The chairmen of the National Electric Power Regulatory Authority (Nepra) and Oil and Gas Regulatory Auhtority (Ogra) and heads of Sui Southern and Sui Northern gas companies had now been added to the committee, he added.

He said he had directed the relevant ministries and the utilities to refine and update demand assessment technologies and prepare accordingly for supply arrangements. He said it was not prudent to add power generation plants much earlier than actual demand and keep on paying for just 12 or 15 per cent capacity utilisation while delayed capacity addition could choke economic growth. Therefore, he said, the relevant ministries should prepare a comprehensive policy keeping a balance between actual requirement and timely capacity availability.

He said he was excited by the plans presented to him about the upcoming projects to overcome power shortage in the longer run while temporary arrangements were being made through rented power plants to meet immediate needs.

The prime minister said the two rented power projects of 150MW capacity each had already been imported. Similarly, he said, the number of time-of-day meters for agriculture tubewells was being increased substantially so that the tubewells could meet their requirements in the night hours.

An official statement quoted Mr Aziz as saying that the government was making all-out efforts to bridge the gap between demand and supply that had emerged as a result of robust economic growth.

The prime minister said the CCE would make focused efforts for energy management and take policy initiatives to meet the demand and encourage investments. It would take holistic approach to energy sector planning to ensure adequate and secure supply of energy, he added.

Wapda presented an update on its hydropower development programme envisaging power generation capacity addition of 10,000MW by 2015. Wapda is also undertaking feasibility studies of hydropower projects, including Dasu, Bunji and Kohala, with a potential of 11,000MW.

The Private Power and Infrastructure Board (PPIB) briefed the CCE regarding the status of thermal and hydel projects in the private sector and said it was expecting thermal power generation capacity addition of 2,000MW by 2008, and a total of 4,500MW by 2009.

The PPIB also expects hydel capacity addition of 4,900MW by 2015. It will be awarding a feasibility study for a 1,000MW power plant based on imported coal shortly.

This would be in addition to ongoing feasibility studies for 550MW of generation capacity based on domestic coal.

http://www.dawn.com/2007/02/03/top7.htm

 

[Neo]

February 03, 2007

17 blocks to be opened for oil, gas exploration

ISLAMABAD, Feb 2: Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon has said that the government is opening 17 new blocks for oil and gas exploration in onshore and offshore areas.

The minister was talking to the President of Rally Energy Corporation of Canada, Mr Abby Badwi, who called on him on Friday and discussed with him investment potential in the oil and gas sector.

Mr Jadoon said there was a lot of potential for foreign investors in the upstream and downstream petroleum sector and invited the Rally Energy to participate in the biddings for promoting friendly relations between the two countries.

The minister said that the government was formulating a new petroleum policy containing attractive incentives for the prospective investors in the onshore and offshore oil and gas exploration being announced shortly.

During the meeting, Mr Abby Badwi briefed the petroleum minister about profile and oil and gas activities being carried out by the Rally Energy in Egypt, Western Canada and Pakistan.

He said the Rally Energy had working interest in Safed Koh Block in Dera Ghazi Khan where the joint venture had made successful discovery of gas reserves.

Mr Badwi appreciated the speedy growth of petroleum sector in Pakistan during the last few years and assured that the Rally Energy would continue to avail investment opportunities for mutual advantage.

Additional secretary petroleum Shaukat Hayat Durrani, director-general (Petroleum Concessions), Mr M. Naeem Malik, and vice-president of Rally Energy in Pakistan, Mr A. Faheem, were also present during the meeting.

http://www.dawn.com/2007/02/03/ebr2.htm

 

[Neo]

February 03, 2007
Vision-2030 calls for steps to boost industrial exports

By Ihtasham ul Haque

ISLAMABAD, Feb 2: The manufacturing and industrial sector of Pakistan is suffering from various structural problems, resulting in slow growth rate of output and exports, low level of investment and high concentration of the manufacturing industries.

The working draft of the Vision-2030 finalised by a committee of the Planning Commission, has called for industrial diversification to compete with other developing countries for increasing exports, particularly through value-addition and quality control.

It said that technical inefficiencies, poor quality of products, low level of research and development (R&D) activities have resulted into slow growth of productivity, making the Pakistani products "uncompetitive" in the world market.

The traditional industries such as food and textile still account for an overwhelming share of the manufacturing output; food industries accounted for 13.8 per cent and industries for 24 per cent of the total manufacturing of value added products.

On the other hand, industries for machinery both electrical and non-electrical, and automobile accounted for just 4.4 per cent and 4.7 per cent of value added, respectively. Even though chemical industries accounted for around 15.2 per cent of manufacturing output, most of the chemical industries output is concentrated in low-tech and low value added industries.

The draft calls for massive structural changes rather than a marginal change, a shift in the production paradigm to technology and knowledge-based industrialisation, with a focus on the quantitative and qualitative growth of an integrated and competitive industry in the private sector.

The inefficiencies of import substitution must give way to an export-led strategy, and to diversification away from traditional industries and services.

In this regard, the draft said that four sectors with the largest share in world trade are machinery/semi-manufacturers, electronics and electrical, pharmaceuticals, automobiles, and agriculture products, in that order with the last classified as low technology.

Pakistan's strength at present lies in textiles (excellent local and foreign markets); however, the automotive sector (just coming up to the right economies of scale), pharmaceuticals (large domestic market and just beginning exports) and electronics/electrical/home appliances, (growing fast, with large local demand, and some exports) are showing great promise on the basis of a fast growing middle class, consumer financing and capacity utilisation.It said that the share of agriculture in GDP has fallen from 39 per cent in 1969-70 to 21.6 per cent in 2005-06. During the same period, share of the services sector increased from 38.4 per cent to 52.3 per cent and manufacturing from 15.9 per cent in 2001-02 to 18.2 per cent during 2005-06.

To reach the quantitative targets of 30 per cent GDP share by 2030, within an overall average GDP growth rate of seven per cent until 2030, the manufacturing sector needs to grow at an average rate of just under 10pc.

Taking about cost of doing business, the working draft vision said that one window operations have been promised for a long time, but have only now reached fruition with an excellent public private partnership for creating industrial zones, industrial estates and industrial corridors, where skills and physical and administrative infrastructure can be clustered and matched for greater efficiency.

This will further reduce the cost of starting new enterprises. A textile city in Karachi and garment cities in Lahore and Faisalabad are current projects in exploiting cluster strengths in key sectors.

It also said that small and medium enterprises (SMEs) are an integral part of the country's manufacturing supply chain in all sectors. They are also major players in industrial chain, producing a wide variety of products such as sports goods, bed wear, towels, surgical instruments and marble fire places, large share of which are exported.

In this behalf, the draft proposed that with SMEs as the focus in order to improve quality of processes, products and management; this will be coupled with incentives for those who undertake such upgrades.

This needs to be implemented as on-the-job training for those businesses having up to 10 employees, but it will have to be based in a formal environment for medium sized organisation having 10-50 employees.

http://www.dawn.com/2007/02/03/ebr5.htm

 

[Neo]

US Senate bill recommends $3 billion assistance to Pakistan

WASHINGTON: A bill moved in the US Senate on implementation of recommendations of the9/11 commission report, recommends to the president to provide $3 billion in assistance to Pakistan for the next five years.

The bill says that "it is the sense of Congress that the commitment of the President to provide $3 billion in assistance over the next 5 years to Pakistan should be commended."

A bill recently moved in the US House of Representatives conditioned the military and other aid to Pakistan with anti-terror cooperation.

The Senate bill says that the Government of the United States should provide assistance to Pakistan to improve Pakistan’s basic education system and to emphasize development. The Bill urges Pakistan to increase its efforts against terrorism but contains no conditionality, as does a proposed legislation of the US House of Representative.

The US administration has expressed its strong support for Pakistan’s efforts against terrorism under President Pervez Musharraf and said the country continues to demonstrate commitment to cooperation with US counterterrorism efforts.

The US officials have said the administration will work with Congress for removal of certain provisions vis a vis assistance for Pakistan from the proposed House legislation.

The bill recently moved in the US House of Representatives had recommended conditions for military and other aid to Pakistan.

According to the US legislative process the two versions of a bill are eventually reconciled between the two chambers.

http://www.thenews.com.pk/updates.asp#17271

 

[Janbaz]

Several options to meet energy needs, says PM

OUR STAFF REPORTER
ISLAMABAD - Prime Minister Shaukat Aziz on Saturday said there is surge in the energy demand as a result of the high growth achieved by the country during the last few years.
“The government is focusing both on increasing indigenous production and import of gas to bridge the gap between demand and supply,” he said while chairing a meeting at the PM’s House to review the government’s energy strategy. The government is weighing various options to meet the energy needs of the country in an optimum manner, he added.
Ministry of Petroleum and Natural Resources made a presentation about the status of Iran-Pakistan-India gas pipeline project and briefed the Prime Minister about its negotiations with the Iranian authorities on the subject.
Aziz said that in view of the high growth projections for the future, in all sectors of economy, the energy requirements are expected to rise further and the government is making focussed and concerted effort to increase our capacity in the energy sector to maintain the momentum of growth.
He said achieving energy security is among the major global challenges as energy security will be the key for future growth. In the gas sector, the Prime Minister said, the government is taking measures to use all options including pipeline gas, LNG, LPG to provide gas to domestic and commercial consumers in a cost effective manner.
The Ministry also apprised the Prime Minister about the status of other projects to increase the production of natural gas in the country.
Aziz instructed the ministry to take further steps to increase exploration and drilling activities.
The meeting was attended among others by Minister for Petroleum and Natural Resources Amannullah Khan Jadoon, Adviser to the Prime Minister on Finance Dr Salman Shah, Minister of State for Petroleum and Natural Resources Muhammad Naseer Mengal and seniors officials.

The Nation.
http://www.nation.com.pk/daily/feb-2007/4/bnews4.php

 

[Janbaz]

Pak to export 2.5 million tons of cement in FY07

LAHORE (APP) - Federal Minister for Industries, Production and Special Initiatives Jahangir Khan Tareen Saturday said that Pakistan would export 2.5 million tonnes of cement during the current fiscal year.
“Cement production has doubled from 11 million tonnes over the last four years. This is going to give a fillip to construction industry,” he said while addressing a press conference at SMEDA head office here.
Tareen said that the government would not allow artificial hike in the prices of cement and would protect the consumers’ interest like it took action by providing subsidy on import when the cement prices significantly shoot up in recent past.
“We have month wise details of cement prices during the last four years, which reveal that the present prices are the same as those prevailed four years ago” he added. Stability in cement prices is an outcome of the government’s balanced and even-handed policies, he maintained.
Tareen said that the Economic Co-ordination Committee approved 5-year auto policy for car manufacturers, which would help bring fresh investment in this vital sector that had shown substantial growth.
Similarly, Ministry of Industry is working on a long-term policy for the manufacturing of buses and trucks and later it would take up motorcycles’ policy, he added.
The auto policy envisages five-year road map, which will enable the industrialists to make investment plan and implement it. Besides, the auto policy would give break-through to the vendor industry, which is based on small and medium enterprises, he maintained.
Expressing his optimism, the minister said that Pakistan would be producing 200,000 cars this year and if growth continues with the same pace, the production would increase to 500,000 by the year 2011-12.
To a question, he said the government’s policies are aimed at bringing industrial development and protecting rights of the consumers. As a result of these policies, not only the delivery period of cars reduced but premium has also declined.
“We found unreasonable premium on Honda Civic and already warned the manufacturer to enhance production to overcome the supply-demand gap issue,” Tareen said. He said that the ministry had also asked manufacturer of Suzuki car to increase its production and added that the company has started working on it.
He said that Suzuki had acquired more land for capacity enhancement and was likely to increase its production from 150,000 to 200,000 units in next year. After expansion, Suzuki would be producing up to 300,000 units, he maintained.
Pakistani car manufacturers wanted continuation of deletion programme but due to enforcement of WTO, the government had recently introduced a tariff-based system.
To a question, he said the government would take action against those car manufacturers, which failed to increase production of cars as per targets given by the government.
About the National Industrial Park in Karachi, Jahangir said that it would be replica of Sunder Industrial Estate Lahore, which would be set up at downstream area of Pakistan Steels and would be managed through public-private partnership. Sunder Industrial Estate is the success story of Punjab which we took to Karachi and would also replicate in other cities of the country. The Park would be completed in 18 months of time over an area of 1000 acres and developed plots would be provided at a cost of Rs 7 million, which also include land cost of Rs 1.5 million. He categorically said the allottees would not be allowed speculation and allotment of plots would be canceled immediately.
Responding to a question, he said the land on downstream to Pakistan Steels would not be acquired for the Park and we would ensure availability of land to the extent of Pakistan Steel expansion up to 5 million tonnes. He hoped that the Pakistan Steels could be privatized through initial public offering (IPO).

The Nation.
http://www.nation.com.pk/daily/feb-2007/4/bnews8.php.

 

[Janbaz]

Barclays and Malaysian 'May' on course to buy some Pakistani banks

IQBAL MIRZA
KARACHI (February 03 2007): Several foreign banks, including Barclays and May Bank of Malaysia, are discussing joint venture and buy-out arrangements with some Pakistani banks. According to sources, of late some leading foreign banks have been showing interest in buying over or taking majority stakes in Pakistani banks due to heavy profitability in the banking sector.

The lead banks, like Muslim Commercial Bank (MCB), National Bank of Pakistan (NBP), and Allied Bank of Pakistan (ABL) have shown high growth, especially NBP and MCB, and the 'Earning Per Share' (EPS) of these two banks is expected to be around Rs 30 per share.

The largest sale, involving more than $400 million, of Pakistan Industrial Credit & Investment Corporation (Picic) and Picic Commercial Bank by Temasek group of Singapore, it is reported, is going smoothly. It is learnt that a data room has been established by Picic and Picic Commercial Bank at a neutral place, and KPMG, a leading chartered accountants firm, is co-ordinating due diligence. AG Ferguson & Co is also involved in due diligence.

Picic is the largest conglomerate of financial institutions in Pakistan, having a commercial bank, a huge asset management company, and an insurance company. It is expected that due diligence will be completed in four to six weeks' time and change of hands may take place in March, 2007. It is also understood that the price agreed between Temasek group and the sponsors is around Rs 85 per share.

Earlier it was reported that Shaukat Tareen, an experienced banker, had finalised a deal to take over more than 51 percent shares of MyBank from its sponsors. But it seems that no final arrangement has been reached and no final agreement has been accomplished, nor any due diligence has started. According to market reports, the deal is yet to go through.

Similarly, almost eight months back, an agreement was reached between ABN Amro and Prime Bank, but it is now learnt that the deal has not yet been finalised in spite of the fact that due diligence has been carried out. Difference of opinion is reported to have emerged between the sellers and buyers.

Market sources have further confirmed that some huge banks are also finalising joint venture arrangements with Pakistani banks, and many groups have shown interest in taking over commercial banks, investment banks and other financial institutions of international repute operating in Pakistan.

Business Recorder.
http://www.brecorder.com/index.php?id=524694&currPageNo=1&query=&search=&term=&supDate=.

 

[Janbaz]

Pakistan suffers $600m deficit

HINA ALI
KARACHI - Pakistan’s balance of trade with Europe witnessed the negative trend in the first five months of current fiscal year.
The imports from Europe amounted to $ 2.470 billion during the first five months of current fiscal year against the exports of $ 1.865 billion during the same period of time.
Europe has been the Pakistan’s largest trading partner over the years. During the period of July to Dec 2006 the overall volume of trade between Europe and Pakistan stood at $ 4.335 billion. Trade with Pakistan is clearly in Europe’s favour.
Pakistan’s import bill of European countries has disappointingly mounted over the course of the last three fiscal years from $ 2.991 billion in 2003-04 to $ 4.447 billion in 2004-05 and up to $ 6.137 billion during 2005-06. Exports witnessed a slow rise from $ 3.716 billion in 2003-04 to $ 4.306 billion in 2004-05 and $ 4.324 billion in 2005-06.
Pakistan holds good prospects for European markets but due to non-compliance with sustainable business practices for example; environment friendly policies and quality packaging have turned The European buyers to the other potential markets.
Pakistan’s export to Europe have shown a wavy trend over the period during Jul-Dec 2006 $ 350.311 million in July, $ 393.703 in August, $ 381.444 million in Sep, $ 374.618 in Oct and $ 364.959 million in the month of November. The same trend has also been seen in imports from Europe over the said period of time $ 564.048 million in July, $ 417.938 million in August, $ 547.850 million in Sep, $ 408.942 million in Oct and $ 531.548 in Nov 2006.
Pakistan’s trade with the Europe is mainly composed of textiles, which account for over 50 per cent of the total Pakistani exports to the Europe, followed by leather products.

The Nation.
http://www.nation.com.pk/daily/feb-2007/4/bnews1.php

 

[Janbaz]

PTA to establish 400 telecentres in rural areas

ISLAMABAD (February 03 2007): Pakistan Telecommunication Authority (PTA) has launched a telecenter project to provide modern telecommunications and Internet facilities in rural and far-off areas.

Under the project titled 'Rabta Ghar,' 400 telecenters would be established in the first phase for which the equipment worth Rs 50,000 each would be provided free of cost. Applications have been invited from eligible candidates.

These telecenters will be provided to those individuals who are unemployed with at least intermediate qualification. They will arrange a shop or room of the size of 10x12 ft (minimum). Females of rural areas fulfilling the criteria may also apply.

According to PTA here on Friday, individuals from those villages and union councils will be considered for "Rabta Ghar" where the population is 4,000 to 10,000 and no public telephone or net cafe facility in the radius of 5 km is available.

In case of Balochistan, applications can also be forwarded at Tehsil level. If more than one application is received from an area, the most suitable applicant will be selected.

In the first phase of the project, PTA with the support of telecom operators, will establish 400 "Rabta Ghar" all over the country. Telecom operators have pledged their support to PTA for setting up these "Rabta Ghar" including PTCL (100), Mobilink (100), Ufone (50), Instaphone (15), Intel (10), Worldcall (Payphones in all Rabta Markaz) while PTA will be sponsoring 125 "Rabta Ghar" bringing the total to 400.

PTA has also arranged free delivery, installation and training of the "Rabta Ghar" equipment on the premises/location of the selected individuals by Intel through its Genuine Intel Dealers (GIDs). PTA has prepared training CD/manual for the selected "Rabta Ghar" owners and the GIDs will provide the basic necessary training to them.

Applications can be submitted on the prescribed application forms through mail before February 15 to Deputy Director (Rural Cell), PTA H/Qs Building, F-5/1, Islamabad.

PTA's Zonal Offices will verify the details provided in the application forms and after proper verification the list of selected individuals will be displayed on PTA's website. In addition, PTA Zonal Office will notify the selected individuals. Further information can be obtained from Telephone Nos. PH: 051-9225329-31 Ext: 147 or email address: rabtaghar@pta.gov.pk.

It may be added that a "Rabta Ghar" (Telecenter) is a small business set up that provides PCO, Internet, Fax, Printing and Scanning services to small communities. A "Rabta Ghar" owner can earn approximately Rs 5,000 per month.

Business Recorder.
http://www.brecorder.com/index.php?id=524811&currPageNo=1&query=&search=&term=&supDate=

 

[Janbaz]

Rs 420 million allocated for three gas supply projects

KASUR (February 04 2007): Punjab chief minister has approved an initial grant of Rs 30 million for the Tehsil Complex building in Kot Radha Kishan, work on which will commence within a few days, while a Rs 420 million gas supply project is in the pipeline.

This was informed by National Assembly's standing committee for Railways Chairman Tufail Ahmed while addressing a meeting of local Nazims at Kot Radha Kishan. He said a special package of Rs 420 million had also been approved for provision of Sui gas to Kot Radha Kishan, Raja Jang and Mustafa Abad areas, with work on the Raja Jang project to commence in March.

"Local governments are playing a pivotal role in planning and executing development projects according to the requirements of the people and the area," he said, adding that positive government policies had ensured national uplift at the grassroots level and a better life to the masses everywhere.

Business Recorder.
http://www.brecorder.com/index.php?id=525180&currPageNo=1&query=&search=&term=&supDate=

 

[Janbaz]

US investors exploring textile sector

By Sabihuddin Ghausi

KARACHI, Feb 3: Rolling in liquidity and confident of unlimited demand growth in their domestic market, a few American companies are exploring investment opportunities in Pakistani textile business through acquisition and joint ventures.

The names of at least two companies are being taken that are reported to have negotiated in Karachi, Faisalabad and Lahore.

West Point Stevens and Danz River are the two USA-based textile sourcing companies that are reported to have entered into negotiations with a few textile companies in Lahore, Karachi and Faisalabad to explore acquisition possibilities and joint ventures. These two companies are involved in multi-billion dollars textile business and are exploring investment opportunities in India, China and Vietnam also.

A Karachi-based textile group — said to be one of the six biggest in the country that has a big stake in cement too — was initially targeted by the American companies and local business circles even mentioned a sum of $200 million for the deal.

However, one of the co-owners of the same Karachi company denied any such possibilities while maintaining that “we want to expand and diversify our business,” ruling out any indication of company changing hands.

Business circles, however, do not give any weight to this denial and insist that negotiations are still on and “for entirely business considerations, the Pakistani company in Karachi wants to keep a cover till something is finalised.”

While confirming the interests being shown by the American companies in acquisition and joint venture arrangements with Pakistan’s textile business, an official in the government said that under the changed rules the present government had allowed foreign investors 100 per cent acquisition of any business, including textile and full repatriation of profit.

“Not only this, the military led government is most obliging to business and more particularly to the foreign investors in Pakistan to give them all freedom of profit making,” remarked an independent economist and consultant, who said never before in last 60 years the profiteers, speculators and big business were given such taxes relief and price fixation liberties as by the present one.

Textile business sources say that quite a few American and European companies have closed down their business in their home countries and shifted their units to India and China. “Pakistan offers much more tempting environment for business than India,” remarked a senior official and made it clear that any negotiations between the European or American companies with Pakistan textile businesses enjoys full government patronage.

Senior textile businessmen recall that way back in decade of eighties when Suzuki set up a joint venture automobile project in Karachi, the Japanese investors then showed interest to set up joint venture in readymade garments in Lahore with a well known local business group. “But that group did not have the capacity or vision for such a project,” he said while pointing that the Japanese returned disappointed.

Since eighties, Japanese entered into joint venture arrangements also set up textile manufacturing units in China and now China is the biggest source of supply of high value textile products to Japan.

“Acquisition or joint venture with American or European companies will give access to Pakistani business to markets in USA and Europe where textile business volume is expected to touch $800 billion in next few years,” the official said.

“Textile business grammar has changed a lot after 2005,” a local garment exporter said adding, “The buyers in USA and Europe now want delivery of textile products at their doorsteps and on time. For this you have to have warehousing and outlet facilities in USA and Europe.

In last five years or so, the Indian textile business is going in a big way to enter into joint venture arrangements for setting up warehousing and outlet facilities in USA and Europe.

Pakistan is also taking up specific textile projects on joint venture arrangements on a rather bigger scale with China in next few weeks when Prime Minister Shaukat Aziz visits Beijing with a big delegation of businessmen.

On Saturday, Federal Textile Secretary Mr Masood Alam Rizvi held a meeting in Karachi with about two dozen leaders of textile and textile related businesses to discuss the projects that can be explored with Chinese investors either late March or early April when the prime minister visits Beijing.

The areas of collaboration in textiles are being identified under a five-year bilateral economic cooperation agreement signed between China and Pakistan when Chinese President last visited Pakistan.

The agreement covers a large area for mutual cooperation in which China has committed to provide investment, know how, production and marketing techniques, technical assistance, training and education in many areas, including textiles.

“Recognising Pakistan’s need for improving cotton growing and processing technology, developing chemical fibre industry, upgrading textile equipment and technology, boosting the international competitiveness of its products, China is willing to intensify cooperation with Pakistan in the above mentioned areas and to encourage business investment and technology collaboration in this regard,” reads one of the articles of the agreement.

“China will assist Pakistan in the whole chain of textile production from spinning to finished textile goods,” declares the agreement, which the officials in Saturday meeting said was a challenge to Pakistan textile business to demonstrate their capacity for acquiring skills and technology now being offered to them generously rather than begging for loan concessions and financial incentives.

Sources said that the meeting identified areas of textile machinery fabrication, dyes chemicals, textile technical education, polyester fibre, development of infra structure and many other related areas for drawing up specific projects that would be taken up for discussion with Chinese investors.

The Dawn.
http://www.dawn.com/2007/02/04/ebr1.htm

 

[Neo]

Over 26 mega projects completed in one year: Nazim

KARACHI (February 04 2007): City Nazim Syed Mustafa Kamal has said the city government in the last one year has not only completed six mega projects of signal-free corridor but also over 26 other mega projects have been finished/underway which is a record in the history of Pakistan. We had done all tasks to complete these projects from its planning to provide resources.

Mustafa Kamal said this while chairing a high-level meeting at Karachi Water and Sewerage Board office at Karsaz on Saturday. The meeting was held to discuss the ongoing and completed projects by city government during the last one year and start more projects in future. The meeting was also attended by Additional Vice Chairmen of KWSB Imamuddin Shahzad, DCO Karachi Fazlur Rehman, EDO Revenue Saleh Ahmed Farooqi, EDO Master Plan Iftikhar Qaimkhani, heads of different departments of the city government besides water board.

Kamal said "We had planned thoroughly and started different mega projects on rapid pace to meet the needs of citizens' demands which they face in 2030." He pointed out that when they started work on signal-free corridor, some of the people had objected and said the city government had dug up the entire city but this was initiated to complete all projects on this corridor simultaneously. "If we had not started these projects at the same time then the corridor could be completed in 10 years not in 10 months," he said.

He said it is history-making effort in Pakistan that any district government had completed over two dozens mega projects within record one-year time period to spend billion of rupees. Elaborating the development projects, Kamal said the city government had completed six mega projects on signal-free corridor. Work is in full swing to complete road 5000 in New Karachi, Pak Colony road, Shahrah-e-Orangi, road 8000 in Koragni, Abul Ispahani road, road 12,000 in Korangi, New M.A. Jinnah Road, ALtaf Hussain Brelvi road, Shahrah-e-Pakistan, Garden road, Business Recorder road, Sadiq Wahab road Lyari, Shahrah-e-Qazafi Orangi.

He added the lingering issue of water and sewerage in Jaffer Tayyar Society for over 30 years, construction and provision of Gulistan-e-Johar, new pipeline to supply 6 million gallons in Lyari, construction of five stadiums on international standard, Sohrab Goth bridge, Malir bridge, storm water drain in Clifton and in Bath Island, completion of Bagh-e-Ibn-e-Qasim, improvement of Abbasi Saheed Hospital, Trauma Centre, Karachi Institute of Heart Diseases and Spencer's Eye Hospital.

He also added the work to install infrastructure in all four industrial zones of Karachi was also started during this period. He sai it is our vision to ease the life of common man in the city to provide all basic civic facilities as the ongoing and completed projects will bring more benefits and change the life style of every citizen in the city.

http://www.brecorder.com/index.php?id=525164&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Chamalang coalfield mining to start from February 8

QUETTA (February 04 2007): Mining in one of the largest coalfields of Asia, Chamalang coalfield, will start from February 8. All arrangements have been finalised in this connection. The security of the coalfield has been handed over to 750 jawans of newly raised Marri Force.

This was informed at a meeting of Chamalang Coalfield Action and Implementation Committee held here on Saturday with its chairman Brigadier Nazeer Ahmed in the chair. The sixty kilometre long and seven kilometre wide coal-field, which is situated 45 kilometre north of Kohlu in Loralai district and was discovered in 1973, would produce 6,000 tons of coal daily with an annual revenue generation of Rs 30 billion.

The meeting was further informed that Loralai-Chamalang road has been cleared of landmines and the security situation is now satisfactory. Chamalang would be linked with Kingri and Mekhtar telephone exchanges for which arrangements have been made on emergency basis. A bank will also be opened in the area.

For this purpose National Bank and Askari Bank authorities will be contacted, it added. It was also informed that the Chamalang technical committee has approved Rs 1.319 billion project under which a labour colony, a hospital and a school would be established in Chamalang.

The survey in this regard would begin on February 6 while a project officer would also be appointed to implement the project. The meeting was told that Balochistan government has also approved installation of four tube wells in the area to ensure supply of clean drinking water to the area people.

Later, talking to newsmen, Brigadier Nazeer said four committees have been formed to run the affairs of Chamalang coalfield project. These include technical, action and implementation, finance and pay and collection committees, he added. He said the government has provided uniforms to 1,200 personnel of Marri Force free of cost. The elders of Marri tribe would also be included into the force with the consent of Marri and Luni tribes who would take over administration of the force on payment of regular salaries, he added.

"Two tents have been given to every platoon of the Marri Force while the treatment facilities will initially be provided to them by Pakistan Army which will be later given by the provincial government," he said. A police or levies station would also be set up in the area to maintain peace, he said, and added 60 Marri youths would be provided technical training in EME Centre Quetta with a monthly stipend of Rs 1000.

"These youths will either be given jobs in various departments or loans to start their own business after completion of training," Brigadier Nazeer said and added that the poor youths of Luni and Nasir tribes would also be included in this training programme.

http://www.brecorder.com/index.php?id=525125&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

February 04, 2007
Formal accord on Gwadar Port on 6th

By Shamim-ur-Rahman

KARACHI, Feb 3: A formal agreement for handing over operating rights of the Gwadar Port to the Port of Singapore Authority, envisaging a 40-year tax relief, will be signed on Tuesday in the presence of Prime Minister Shaukat Aziz.

The port is expected to be inaugurated by President Pervez Musharraf some times in March.

This was stated by the federal minister for Ports and Shipping Babar Ghauri in a news conference at the Karachi Press Club on Saturday.

Dispelling all criticism of concessions to the PSA, he said that the process was transparent and operators from private sectors were involved in the negotiations.

The federal minister said that Pakistan needs to develop third and even fourth port to handle future trade which, he said, was growing at over 10 per cent per annum.

He said the KPT and the PQA had their own limitations of draught and availability of port land.

Three companies have been set by the operators. One of them would deal with cargo handling while the second would be responsible for infrastructure development, and the third will be responsible for developing free zone.

Under the agreement, government of Pakistan would be entitled to have nine per cent of the revenue from the first two companies and 15 per cent from the third. Operators were expected to invest $3 billion annually in the project that would help Pakistan earn up to $4 billion through operations.

Under the agreement operators would have full authority, but in case of national security, the government would be able to use the facilities.

The federal minister said that Gwadar Port would serve as an international Hub, and claimed that contrary to 40-year concession given to the operators by the present government, former rulers had envisaged identical concessions spread over 50 years. Senator Ghouri said that apprehensions were wrong that due to Gwadar Port, Port Qasim and Karachi Port would be affected.

Gwadar, he said, would serve as centre for transshipment where mother ships would unload cargo which would then be shipped to other ports by feeder ships.

Justifying concessions to operators, the minister said that Gwadar would be competing with Dubai port which is a tax- and-duty-free port.

But the minister did not explain as to how investors would choose that destination for transshipment and setting up industries in the free zone when there was no infrastructure – water, electricity, roads and adequate settlements for living.The minister was confident that the port would provide large-scale employment, and value of land would further increase, and there would be other income generating activities for local people.

When asked that why Balochistan government was deprived of revenue as local and municipal taxes were also revoked, Federal Shipping Minister said that the decision of exemption was taken by the Balochistan government itself and announced by the chief minister of Balochistan. The federal government, he said, had nothing to do with this decision.

http://www.dawn.com/2007/02/04/ebr4.htm