Pakistan Economy - News & Updates - Archive

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UK network buys Pakistani satellite services

ISLAMABAD (February 14 2007): PAKSAT International, Pakistan's national communication satellite, has leased out a bulk of its services to a British network, officials said here on Tuesday.

PAKSAT International has successfully concluded an agreement with Skyvision/Primera Networks of the UK for the lease of multiple C-band transponders, said Usman Bajwa, CEO of PAKSAT-1 International, in a statement issued here.

The satellite capacity will be utilised for providing internet, IP and data connectivity services across Africa and Middle East. "This is a landmark agreement for PAKSAT, and signifies the attractive value proposition PAKSAT-I offers for service providers and enterprises looking for satellite connectivity in Africa, Middle East, South Asia, Central Asia and Southern Europe" said Bajwa.

PAKSAT-I that operates at an orbital location of 38 degrees East, offers C and Ku coverage in over 75 countries across Europe, Africa, Middle East, South and Central Asia. The satellite is currently serving a number of local and international customers, including TV broadcasters, telecom companies, data and broadband internet service providers as well as government organisations.

Bajwa said the contract with the British networks for the lease of up to six extended C-band transponders on PAKSAT-1 would hold for a period of three years but it would help fetch more such deals in future. "We believe this is an important landmark for PAKSAT not merely in terms of its commercial viability, but also as a means to penetrate other international markets," he added.

Officials at the Primera Networks also lauded the deal, calling it a move towards designing cost-effective solutions. "We are very pleased to conclude this contract with PAKSAT it will enable our customers to design cost effective solutions for markets in Africa and Middle East without compromising on the quaality of service" said Abu Shafquat, Principal Partner Primera Networks.

http://www.brecorder.com/index.php?id=528499&currPageNo=2&query=&search=&term=&supDate=

 

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Plan outlined to convert transport sector into industry

ISLAMABAD (February 14 2007): The government has outlined a plan to convert the informal transport sector into an industry, proposing that small and large companies be formed and registered to avail soft-loan and tariff incentives, Business Recorder learnt on Tuesday.

The government believes that the sector's inefficiencies were costing annually Rs 150 billion in fuel, road, and infrastructure deficit, thus resulting in low quality of service impeding Pakistan trade competitiveness. The existing industry structure neither integrate into international trucking nor supports Pakistan's projected economic growth.

The government has asked the transporters to establish small and large companies to convert their businesses into formal industry, which would enable them to get bank financing and tax incentives. They have been assured, once they convert their business into formal sector, the government would direct banks to offer soft loans with less interest and long stretch apart from tax incentives.

Moreover, the government may also come up with a scheme to buy all 1,500,000 truck operating to replace them with the modern ones for meeting the international standards in view of National Trade Corridor Program for which efforts are being made to upgrade infrastructure.

The Engineering Development Board (EDB) here on Tuesday organised a workshop on modernising the trucking sector, which was attended by all the stakeholders, including truck manufacturers, consumers, individual transporters, truck-bus body makers and others.

The workshop aimed at formulating comments by all the stakeholders to form a policy was addressed by Industries and Production Minister Jehangir Khan Tareen, Communication Minister Shamim Haider and Planning Commission Deputy Chairman Engr Dr Akram Sheikh.

Talking to Business Recorder, EDB CEO Imtiaz Rasgrar said the government sees a huge potential of the sector with the operation of Gwadar deep seaport, which would open new avenues for transport business. The policy for modernisation of trucking sector, he hoped, would be finalised in a month time.

He said the plan is to develop Pakistan's trucking industry on modern lines from existing five to 25 percent under National Trade Corridor (NTC) program. The modernization of trucking sector without hoods will reduce 15 to 20 percent fuel consumption and road maintenance by $1 billion, he hoped. These include financiers involved in purchase hire-payback of vehicle fleet and equipment, suppliers of vehicle fleet, local assembly and imports and spare-parts and operators, service-providers as haulage enterprises. Under the NTC, the government is addressing issues confronting the country's road freight sector, which carries almost 95 percent of the country's overland freight.

The strategy has been targeted to increase the share of prime movers/trailers to 10 percent from 5 percent by June 2010. This overland freight traffic, domestic and international, is responsible for almost 96 percent of the total tons/kms and dominates the market owing to weak and unreliable railways. Almost 70 percent of the trucking fleet comprise two axle trucks while the estimated figure show that the road freight traffic will grow by 6 percent.

Therefore, the need to modernise the trucking fleet was felt that resulted in framing a strategy to facilitate the expanding trade activities and overcoming the losses caused by the sector's inefficiencies.

http://www.brecorder.com/index.php?id=528450&currPageNo=2&query=&search=&term=&supDate=

 

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14, 2007 Wednesday
Sindh plans to explore hydel power

By Sabihuddin Ghausi

KARACHI, Feb 13: The Sindh government plans to explore hydel source as one of the many alternate energy sources in the province indicated in a feasibility done as far back as decade of late 80s by German engineers.

Preparations are afoot to update this feasibility with a fresh survey to be done by experts to be engaged by the Sindh Power Development Cell.

The German feasibility identified five perennial canals in Sindh that have many locations of waterfall to generate electric power. These are canals on either side of Guddu Barrage, the Nara and Rohri Canal of Sukkur Barrage and the Gujju Canal that brings water to Karachi round the year. In addition, there is a natural Gaj waterfall near Dadu, the home-town of the Federal Power and Irrigation Minister, Mr Liaquat Jatoi.

Well-placed sources in Sindh government said Mr Jatoi is keen to explore the potential of hydel power generation at these spots in Sindh and particularly near his home-town Dadu, but is handicapped because of the limited capacity of the province to take up such projects.

The cell was set up in 2004 and has since remained a one-room and virtually a back room office of the Sindh Irrigation Department. It has rudimentary staff, headed by a deputy secretary of grade 18. But it has a full-time minister, Mr Altaf Unar, while his cabinet colleague, Mr Nadir Akmal Leghari, looks after the Irrigation Department — one of the most sought after green pasture that offers unlimited opportunities — to all those who come to serve here at various positions. Landlords in Sindh are chronic defaulters of water bills and actual recovery is not even one-tenth of that is being spent on irrigation water distribution system.

The cell has been given Rs28 million to engage experts for carrying out fresh feasibilities of hydel power projects in Sindh. Potential investors will be asked to bid only after the feasibilities are carried out and specific locations of waterfall are identified.

“We can issue licences for projects up to 50 megawatt power generation,’’ one of the sources disclosed. The investor will have the choice to sell this power to local distributor which in case of Sindh would be Hyderabad Electric Supply Company (Hesco) or Wapda. But investor can also explore transmitting and distributing this power to adjoining villages or a small town provided he sets up a small distribution and transmission network and is able to find consumers who pay bills regularly.

The investor may also be given the choice of setting up a hybrid power generation plant. It is hydel-based power plant, supported by a gas-based or thermal plant, to keep generation going when water flow may get low or scarce in certain period of time.

The cell also plans to carry out feasibility for wind, solar, coal and gas-based electric power generation projects up to 50 megawatt. The idea is to decentralise electric power generation, transmission and distribution and get away from the over-centralised corrupt system of Wapda.

While the entire coastal belt from Karachi to Thatta and Badin is said to be ideal for wind-generation plants, there are more than half a dozen districts where solar-based plants can be established.

“These projects may be capital intensive but by all means are feasible if consumers pay their bills regularly.The rich landlords do not pay water charges, taxes on their agricultural income, electricity bills and all other government levies. But the small farmers, if empowered and given opportunities to prosper will pay taxes and bills is the expectation.

However, the cell is expected to appoint a full time project director, plus a few others by June next. In case, no director is appointed, the allocated funds will lapse.

Balochistan is said to have successfully set up a few hybrid power projects in some parts but is facing recovery of bills problems from consumers.

http://www.dawn.com/2007/02/14/ebr4.htm

 

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February 14, 2007
Bourses receive record foreign investment

By Shahid Iqbal

KARACHI, Feb 13: Pakistani bourses have received record inflows of foreign investment as the total amount reached all time high in any financial year.

Market analysts said that the petrodollars were being recycled to invest in the emerging markets like Pakistan and pinned hopes for more inflows.

The foreign investment directly invested in the shares market totaled $519 million since July 2006 to date which never happened before in the country’s history.

However, portfolio figure which includes GDRs (Global Depository Receipts) was much higher.

They said that the oil price boom created huge liquidity in the global market and the surplus incomes of the Middle Eastern countries were invested in the United States and Britain or kept in saving products of the two countries. These petrodollars have also found investment opportunities in Pakistan and other countries.

Only during the first 13 days of February, the foreign exchange inflows in the shares market reached $137.7 million reflecting the trend and confidence of the foreign investors.

Analysts said if the inflows continued to flow with the same pace the figure would cross $200 million during February, which would be another record.

The details of these investment showed that most of the funds had been coming from the United States and the UK. The USA invested $77.2 million during the 13 days of the current month while the UK poured $67.6 million during the same period.

The other country, which invested, was Hong Kong and the amount was more than $7.4 million.

The highest outflows were of Switzerland, which reached over $9.8 million during the same period of 13 days.

Some analysts said the investment of foreign funds directly into the shares market had boosted the sentiment and a number of unattractive shares found better place to get higher price.

“Asian bourses are the prime recipient of the petrodollars as the emerging markets used to have enough potential to reap maximum from the investment,” said Saqib Umar, an analyst.

He said during the first seven months (July-Jan) the shares market received $382 million while the inflows during 13 days of February account for 27 per cent of the total $519 million.

“The average per day inflow is $10.5 million, which is very high and could reach $250 million if the inflows continue with the same speed,” he said.

During the first six months the portfolio investment, which included $150 million GDR of MCB Bank, reached $620 million.

However, GDR of Oil and Gas Development Company (OFGCL) has not been included in the portfolio investment.

Experts and analysts said the investment in the shares market was highly encouraging, especially when the country was heading towards general elections, which might bring some political instability in the wake of change of government.

http://www.dawn.com/2007/02/14/ebr5.htm

 

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February 14, 2007 Wednesday
ADB to give $534m for hydel power plants

By Ihtashamul Haque

ISLAMABAD, Feb 13: The Asian Development Bank (ADB) has agreed to offer $534 million through "its soft loan" window to help generate additional 480-mw of electricity and thus reducing growing power shortages in the country.

Official sources told Dawn on Tuesday that Water and Power Development Authority (Wapda) has identified 730 potential sites in Punjab for installing a number of hydel power plants, each having up to 50-mw at different canals and distributaries.

The ADB’s technical experts have approved 730 sites which included 324 potential and 306 raw sites for building small hydel power plants in the province.

The ADB funding is part of the government’s plan to save foreign exchange by not importing fuel that is used in alternate thermal plants. Also, the purpose is to replace expensive thermal plants by hydro power plants in a medium to long term scenario, providing cheaper renewable hydropower resources.

Sources said that this will also help increase hydel share in generation mix to reduce the prevailing high tariff rates of electricity.

Overall Wapda has firmed up a study which said that Punjab has a hydel potential of 5,895-mw along rivers and existing canal falls and barrages with medium and small heads. In this regard, Wapda officials are further exploring new possibilities for mobilising substantial funding from other international donor agencies especially the World Bank.

The financial analysis has been carried out with transmission line cost for generating additional 480-mw of hydel power. The financial internal rate of return (FIRR) with transmission line is 13.73 per cent which according to the ADB experts makes the project attractive.

The project is expected to create employment opportunity during the construction and operation phase directly. However, indirectly other related construction industry, supply of material, workforce in transportation, etc., will get the benefit.

The main objective is to

generate electricity and lay down track for hydel project implementation in the near future in Punjab. It has been planned that five powerhouses will be constructed after detail design and tenders were approved according to the ADB guidelines.

Sources said that the implementation time is estimated 57 months which includes pre-construction time, land acquisition and compensation, site installation, mobilisation, de-mobilisation, testing and commissioning.

Concerned officials said that energy demand is increasing at 8 to 10 per cent annually and Pakistan is still a net importer of energy.

The gap between the demand and supply in the past was met through installation of thermal power projects based on costly imported fuel. This situation, according to them, disturbed the hydel-thermal mix ratio from 65:35 to 35:65 which had resulted into unbearable increase in electricity tariff besides increasing dependency on imported fuels for meeting the energy needs.

http://www.dawn.com/2007/02/14/ebr9.htm

 

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Verdict on Baglihar dam

PAKISTAN has reasons to believe that the World Bank expert’s landmark decision has vindicated its position on the Baglihar dam, India’s own victory claim notwithstanding. Calling the verdict a “great victory”, Water and Power Minister Liaquat Ali Jatoi said that India now had a “moral, legal and political obligation” to accept and implement the expert’s judgment. By accepting three of Pakistan’s four objections to the dam built by India on the Chenab in occupied Kashmir, the World Bank expert’s decision holds New Delhi responsible for violating the 1960 Indus water treaty, because the Indian design of the dam was incorrect. The expert did not uphold Pakistan’s argument with regard to the spillway, but Mr Jatoi said Islamabad reserved its right to appeal against this part of the verdict. Now India must abide by the judgment and reduce the dam’s height by 1.5 metres. This will mean additional problems for India when it goes about reducing the dam’s height and undertakes new construction.

The entire process has some lessons for the two countries. When India began constructing the dam on the Chenab in the 1990s, Pakistan exercised considerable restraint and took up the issue bilaterally as provided for in the 1960 treaty. However, bilateral talks proved infructuous and India continued with the construction of the dam in disregard of the 1960 treaty provisions, forcing Pakistan to go to the World Bank in 2005. Monday’s decision not only partially upholds Pakistan’s position on the Baglihar hydroelectric plant, it also emphasises that solutions to Indo-Pakistan problems can be found by peaceful means. India has welcomed the verdict, claiming that the dam structure will remain intact, the alterations will be minor and the power-generation capacity will remain unchanged. This is a strange reading and interpretation of an otherwise simply worded and forthright verdict.

The Baglihar decision is expected to have a positive effect on the controversial dam India is building on the Neelum river. The Indian cabinet has already decided not to proceed with its construction further without vetting the dam’s design. That’s the right approach. The Indus waters treaty is a monumental accord. By giving Pakistan the exclusive rights to the three western rivers, the treaty removed a major source of conflict between Pakistan and India. The follow-up to the treaty had a positive impact on Pakistan’s economy, for massive construction projects were undertaken in the form of the Tarbela dam — the world’s biggest earth-filled dam — and the link canals. The two projects brought vast tracts of land under the plough and phenomenally increased the quantum of power-generation. Pakistan, therefore, naturally wants a continued adherence to the treaty, because 90 per cent of agriculture in Pakistan — unlike that of India — is dependent on the three western rivers for irrigation. This should make India realise why Pakistan attaches so much importance to this treaty and how any violation of it is bound to seriously undermine relations between the two countries.

http://www.dawn.com/2007/02/14/ed.htm#1

 

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Wednesday, February 14, 2007

$671m shortfall in July-Jan: $18.6b export target unlikely to be achieved

By Sajid Chaudhry

ISLAMABAD: The annual export target of $18.6 billion is becoming increasingly difficult to achieve as the country’s trade managers have missed the export target of $10.304 billion fixed for first seven months (July-Jan) period of the current FY2006-07 by $671 million.

The actual exports of the country managed to reach $9.633 billion against the target of $10.304 billion leaving a shortfall of $671 million in the first seven months of the current fiscal year, a ministry official told Daily Times on Wednesday.

The export target fixed for the month of January was $1.494 billion and the actual exports managed to reach $1.971 billion, resulting in a shortfall of $297 million, the official added.

According to official data, Pakistan’s exports stood at $9.633 billion during the July-January period of the current fiscal year against the exports of $9.271 billion in the same period of the last fiscal year 2005-06, projecting an increase of just 3.86%.

The imports of the country stood at $17.225 billion during the July-January period of the current fiscal year, as compared to imports of $15.795 billion in the same period of the last fiscal year, projecting an increase of 9.05%. The trade deficit during the July-January period of the current fiscal year amounted to $7.595 billion projecting a growth of 16.43% against the trade deficit of $6.523 billion in the same period of the last fiscal year.

The data relating to the month of January 2007 reveals that the total exports of the month stood at $1.197 billion as compared to exports of $1.224 billion in the same period of last fiscal year showing a decline of 2.24%. However, the imports during January witnessed a growth of 8.66% with total month’s imports of $2.33 billion as compared to the imports of $2.14 billion in the same month last fiscal year.

The trade deficit during the month of January 2007 rose by 23.18% to $1.132 billion as compared to a deficit of $919.651 million in the same month last fiscal year. The data relating to exports during the last two months (Dec to Jan) also shows a dismal picture of the country’s trade.

Around 21.10% decline has been witnessed in the exports during January 2007 with the total exports of $1.197 billion against the exports of $1.517 billion in December 2006. However, the imports of the country during January 2007 witnessed a decline of 9.13% with the total imports of $2.330 billion against the imports of $2.564 billion in December 2006. The trade deficit of $1.132 billion during January 2006 was 8.22% more against the deficit of $1.046 billion in December 2006.

http://www.dailytimes.com.pk/default.asp?page=2007\02\14\story_14-2-2007_pg5_1

 

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Wednesday, February 14, 2007

Services sector: Trade deficit widens by 21.57%

By Tanveer Ahmed

KARACHI: The trade deficit in services sector further widened by 21.57 percent to $237.62 million during the first half (July-December) of the current financial year compared with $195.46 million in corresponding period of previous year.

The export of services in the July-December period of 2006-07 declined by 12.15 percent to $178.97 million, compared to the $203.73 million of services exported during the same period of the financial year 2005-06.

The import of services depicted a growth of 4.36 percent during the period under review to stand at $416.60 million compared to $399.19 million worth of services imported in the corresponding period of the previous year, the latest statistics of external trade of services showed on Tuesday.

The major source of concern is the huge deficit in the services sector during the month of December alone, due to declining exports and burgeoning imports, following the growth in the export of services in month of October this fiscal year.

The exports in services under-performed heavily during the month of December, which were otherwise on the higher side in the initial months of the current year. The services exports stood at $24.892 million, registering a massive decline of almost 56 percent compared to last December, when they were at $56.07 million.

Also the export performance in December registered a steep decline compared to the preceding month of November and was almost 50 percent down at $49.31 million.

The import of services during the months of December was slightly up by 0.41 percent to $76.35 million compared to $76.04 million in the same month of previous year and was down by 3.95 percent compared to $79.49 million in the preceding month of September.

Analysts said that the performance of export of services in December was dismal, which further widened the deficit following its recovery in October of the current fiscal, which helped to restrict the trade deficit in services to some extent.

They said that the share of country in the world services sector has been stagnant and could not grow beyond 0.23 percent due to a number of factors.

Analysts believed that there is a vast potential for trade services like financial, construction and other business such as computer, technology, engineering, legal, accounting and other services.

The country’s services export are confronted with a number of issues, which obstructed in tapping the vast potential of export in this sector like quality, acceptance of professional credentials, visa problems and the most importantly the image problem, which the country has been confronting since long.

“Any further growth in the export of services would depend on how we tackle the issues in the coming days, particularly to improve the country’s image abroad to penetrate both in the developed and developing markets,” they added.

The government has started releasing the external trade data of the services sector from this financial year, which was not the practice in the previous years.

According to an international study, Pakistan has a very tangible share in export of information technology related services sector. There are many shortcomings in the sector, which has made it less competitive with those of other countries. There is a lack of skilled labour, quality educated professionals, lack of basic infrastructure, training of human resources, lack of research and development, low-extent fibre optic connectivity to more location in Pakistan and piracy.

http://www.dailytimes.com.pk/default.asp?page=2007\02\14\story_14-2-2007_pg5_9

 

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Wednesday, February 14, 2007

World Bank credit of $138m for quake relief

WASHINGTON: The World Bank approved on Tuesday a $138 million credit to the Pakistan Poverty Alleviation Fund (PPAF) to complete housing reconstruction in areas struck by the earthquake of October 2005.

The additional financing to the Second Poverty Alleviation Fund Project (PPAF), is designed to help finance Stage II and III house reconstruction payments to the 90,000 currently eligible households, as well as to finance community level infrastructure such as link roads and water and sanitation services for earthquake affected communities.

“The scale of the devastation left entire communities gravely affected and in need of rehabilitation. PPAF mobilised within hours of the earthquake and managed various relief, reconstruction, and rehabilitation initiatives in a coordinated manner,” said John Wall, World Bank country director for Pakistan. “This additional financing will enable the PPAF to continue its vital work in rebuilding lives and homes in the affected areas.”

The Bank said the new financing will also allow PPAF to address long term needs of reviving social, physical and economic structures of affected communities through intensive social mobilisation processes and asset building of vulnerable households. The earthquake affected communities will continue to be mobilised into community organisations by partner organisation’s of the PPAF and will be provided with housing compensation and training in seismic house reconstruction.

http://www.dailytimes.com.pk/default.asp?page=2007\02\14\story_14-2-2007_pg7_33

 

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Wednesday, February 14, 2007

WAPDA to complete Kachhi Canal by 2010

LAHORE: The Water and Power Development Authority (WAPDA) will complete the Kachhi Canal water project by 2010, while the phase-I of the project will be completed by the end of 2008.

WAPDA Chairman Tariq Hameed said this while briefing the States and Frontier Regions (SAFRON) minister on water projects here on Tuesday, according to an official statement.

Hameed said that the Kachhi Canal would solve the problem of water shortage in many areas of Balochistan. He added that 300 kilometres of the 500-km Kachhi Canal would run in Punjab, and the rest would be in Balochistan.

He said that the Sabakzai Dam in Balochistan would be completed by the end of March and formally inaugurated in April. Important water projects in Balochistan would be started soon after the groundbreaking ceremony of the Winder Dam in June whereas work on Suklaji Dam will start by December this year, said the WAPDA chairman. In his presentation, WAPDA Member (Water) Mushtaq Chaudhry said that 26 percent of development work on phase-I of Kachhi Canal has been completed and the rest would be accomplished by the end of 2008. He added that the canal would irrigate 713,000 acres of land and thousands of families would benefit from this project.

http://www.dailytimes.com.pk/default.asp?page=2007\02\14\story_14-2-2007_pg7_17

 

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Portfolio investment at year-high

KARACHI (February 15 2007): Portfolio investment, as represented by Special Convertible Rupee Accounts (SCRAs) reported daily by the State Bank, touched the highest of the year. According to the latest (13th February) update, it reached $519.3 million on February 12, 2007 including $27.7 million (mainly USA and Hong Kong) received on 12th alone. It was $359.7 million on January 22.

In between the two dates, it declined to $346.8 million on January 24 before rising to $358.5 million on 26th. Come February and it rose to $387 million on February 2; stood around that level by the 6th; and then jumped to $491.6 million on the 9th before surging to a new record level of $519.3 million on February 12. Between the two highs of January and February so far, it has recorded a rise of $159.6 million in just about 20 days.

The increase of $159.6 million between January 22 and February 12 was shared among USA (up $105.5 million raising its total to $318.6 million), UK (up $62.4 million to $96.8 million), Hong Kong (up $3.9 million to $25.4 million) and Singapore (up $0.4 million to $110.4 million). All the four countries occupied the first four positions with USA leading the list followed by Singapore, UK and Hong Kong. The investment level of Kuwait, the fifth highest investor, remained unchanged at $13.2 million.

Among others, seven reporting countries recorded withdrawals of varying magnitude. That includes $7.3 million by Switzerland, by far the largest dis-investing country raising its total withdrawals to $33.2 million by 12th of February 12. This was followed by UAE (down $3.9 million to minus $6.1 million), Australia (down slightly less than $1.2 million to minus $1.2 million). Luxembourg (down $0.1 million to minus $1 million), Germany (down $0.04 million to $0.6 million). And, Qatar (down $0.03 million to minus $0.06 million) besides a rather minor withdrawal by Guernsey.

Portfolio investment made by all other reporting countries remained unchanged at the level attained on 22nd January. On the stock market, invariably affected by the changes in the portfolio investment, the most representative KSE-100 Index, which had risen to 10,706 points on January 22, rose further to reach the record high level of 11,867 points on February 8 before gradually reclining to 11,630 points in the following days in response to moderate profit-taking.

http://www.brecorder.com/index.php?id=528762&currPageNo=1&query=&search=&term=&supDate=

 

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over 0.5 million tons of wheat.

"Some Indian importers have contacted us to import Pakistani wheat, said a leading wheat exporter, adding: "We are ready to export the commodity to India at lower rates." He said more than six Indian importers have approached and still trying to finalise deal with Pakistani traders. If a deal is finalised, it would be the first time in the history of Pakistan that India will import Pakistani wheat, he added.

"We have offered wheat to Indian importers at $240 per tonne, but they want the commodity at $170 per tonne," said a leading exporter. "Currently, they are importing wheat from Australia at $220 per ton, as Australian wheat is the best in the world, while Indian sells it after blending it with domestic wheat," he added.

http://www.brecorder.com/index.php?id=528795&currPageNo=1&query=&search=&term=&supDate=

 

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FDI rises 10 times in seven years: Zahid

ISLAMABAD (February 15 2007): Minister for Privatisation and Investment Zahid Hamid said that the Foreign Direct Investment (FDI) has increased ten times during the last seven years due to good economic policies of the present government.

It was only in the region of $320 million in the year 2000 and in 2006 it crossed $3.5 billion dollars, the Minister told BBC Television. He said the analysts who compare flow of foreign investment in Pakistan should know that it has to be done in terms of the percentage of GDP.

For example, he said the amount of 3.5 billion dollars FDI registered in Pakistan last year was in the region of 3 percent of the GDP, which is a very high and higher than our neighbours. He said that the government of Pakistan is pursuing a liberal and attractive investment policy and the feed back is encouraging. To a question he said that Pakistan has in fact, one of the most successful privatisation programmes in the region. He said that during the past 15 years, from 1991 to 2007 when the country started privatisation more than $7billion dollars were realised in about 163 transactions.

http://www.brecorder.com/index.php?id=528817&currPageNo=1&query=&search=&term=&supDate=

 

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Pakistan becoming trade, manufacturing hub in region: Musharraf

ISLAMABAD (February 15 2007): President General Pervez Musharraf has said that with opening of all economic sectors, investment-friendly policies, conducive environment and geo-strategic location, Pakistan can serve, and is fast becoming trade and manufacturing hub in the region.

Giving an interview to a private TV channel aired on Wednesday, the president said his strategy was to make the country a manufacturing nation, as it was industrial sector which helps reduce poverty, creates jobs and checks unemployment. The President said Pakistan's trade and economy were based on agriculture sector, adding but only 6 percent of the world trade is driven by textile sector, with 61 percent by the manufacturing, engineering and heavy industries.

He said, "we have to make a gradual shift from agriculture to industrial sector" with efforts to strengthen the manufacturing strategy being implemented since 2000.

Asked as if the country would depend on imported raw material in manufacturing sector, the President said, the country has a lot of potential in raw material and we have to explore and exploit this potential for industrial requirements.

He further said that the dispute resolution between Pakistan and India could also help reduce the problem of raw material, as the two sides can benefit from each others potential.

President Musharraf said, cement industry was also attracting investment and mentioned a recent $100 million investment in this sector. About the rising prices of everyday commodities and the recent increase in sugar and cement, President Musharraf said the government was fully alive to the situation and taking corrective measures.

He said there were certain cartels who manipulate at time and stressed more regulations to counter such trends. To a question about terrorism, the President said it was a serious threat and efforts were being taken to address the issue.

He said Pakistan was pursuing a middle course that moved on to the path of modernisation. To a question about President's election, he said, it would be according to the constitution.

http://www.brecorder.com/index.php?id=528753&currPageNo=1&query=&search=&term=&supDate=

 

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Fata to emerge as model of development by 2015: Aurakzai

PESHAWAR (February 15 2007): NWFP Governor Lieutenant General Ali Muhammad Jan Aurakzai (Retd) has said that by the year 2015, the tribal area would emerge as a model of development through Sustainable Development Plan, which he added envisaged spending Rs 130 billion on multi-sectoral development of Fata over the next nine years.

He was addressing a group of 88 officers from National Defence College, here at the Governor House on Tuesday evening. The governor in his address informed the group, comprising allied officers from armed forces, civil service and friendly countries about the current situation in tribal areas, its historical and strategic importance, and mode of governance, development strategy and the govt's reformation policy with regard to Fata.

He said that after 9/11, the area got importance both at the national and international level, bringing enormous opportunities of progress and development to this backward region.

The governor said that over the period of past five years the annual development budget for Fata had been raised from Rs 800 million to Rs 6.2 billion, whereas presently over Rs 9 billion were being spent in Fata, including Rs 3 billion special development packages and programmes.

The governor said that in order to make space for spending such a huge amount, the Fata secretariat had been expanded and a separate Fata Development Authority formed. The Authority being a semi autonomous body, he added also envisaged the involvement of private sector through joint ventures.

The governor said that FDA had come out with its first mega project of establishment of Marble City in Mohmand Agency for which a MoU was signed on Tuesday. He said that establishment of Marble City was a landmark achievement, which when fully operational would bring enormous economic opportunities for the Fata people.

In the Marble City, he added the investors would get many incentives and facilities including free of cost land to potential investors and uninterrupted supply of electricity.

Responding to various questions asked by the participants, the governor highlighted the steps taken by the government for improving law and order, restoring confidence of the tribesmen and reviving the authority of the political administrations saying that supporting strategies adopted in this regard had proved very effective.

He explained the circumstances in which the historical peace agreement was signed with the tribes of North Waziristan. Regarding jirga process in Afghanistan, the governor said that separate jirga commissions had been formed in Afghanistan and Pakistan for evolving the mechanism. He hoped that both the countries would be able to constitute a jirga to further initiate the dialogue process and resolve the problem politically.

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