Pakistan Economy - News & Updates - Archive

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BEIJING (May 03 2006): Pak-China border for land route trade via Karakoram Highway was reopened Tuesday. Chinese official sources told APP in Beijing that the Customs authorities have started work at Taxkorgan-Sust customs point for facilitating import-export between two countries.

The customs check-point, which was opened to Pakistan in 1982, is normally closed for trade and tourism during winter season from December 30 to May 1. It located in the western suburbs of the Tajik autonomous country of Taxkorgan and about 3,200 meters above sea level.

The border trade and tourism are likely to get impetus in June as the governments of both countries had decided to run a bus service between Gilgit and Kashgar thrice a week. It will be for the first time that Pakistan's Northern Areas will be connected with China's Western region through a regular bus service.

According to formal protocol concluded by the two countries last March, one bus will be operated from each side on daily basis that will travel between Sust and Tashkorgan. Each side will launch another bus service thrice a week between Kashgar, Sust, Khunjrab and Gilgit.

The two countries will also start goods transportation service via Khunjrab Pass from this month. Pakistani vehicles carrying goods will have direct access up to Kashgar. They would not be required to reload their goods at the border point.

Whereas the Chinese containers and trucks will have direct access up to Pakistani ports. This will be in line with the policy of Pakistan government to develop its ports as hub of trade activities for the regional countries.

It was also agreed that each side would issue 3,000 permits to their registered transporters to carry goods between the two countries. Each permit will be valid for one-round trip and the vehicles will be operated from the designated points. The number of permits could be gradually increased according to the demand of the transporters.

The protocol is an important step forward to channelise the existing road network arrangement between the two countries. It will go a long way promoting their commercial links and strengthening people-to-people contacts, the sources added.

Meanwhile, an official of the Chinese government hoped that the Preferential Trade Agreement (PTA) that came into effect from January this year would also help strengthen the Sino-Pak economic bilateral trade through land route.

The Preferential Trade Agreement, he said, would open greater opportunities for Pak products to access to the Chinese market.

As per agreement, China allows tariff concession to Pakistan on more than 800 items, whereas Pakistani side will give concession to China on about 200 items.

 

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RAWALPINDI (May 03 2006): President General Pervez Musharraf has said the ongoing development process in Balochistan province was on the track and directed that necessary steps should be taken to ensure it gathers further momentum.

He was chairing a high level meeting here on Tuesday, which reviewed the development projects in the province. The meeting was attended by PML President Chaudhry Shujaat Hussain, PML Secretary General Mushahid Hussain Sayed, Balochistan Governor Awais Ahmed Ghani, Chief Minister Jam Muhammad Yousaf, Federal Minister Zubaida Jalal, Deputy Chairman Senate Jan Muhammad Jamali, Ministers of State, Parliamentarians belonging to Balochistan from both Senate and National Assembly, provincial Ministers and senior officials.

 

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LAHORE (May 03 2006): Punjab government has set May 10 as cut-off date for getting additional funds by different departments for various ongoing schemes under Annual Development Programme (ADP) 2005-06, while the provincial departments have already been instructed to surrender its unutilised ADP funds by May 3.

Sources disclosed this to Business Recorder here on Tuesday.

They said that during the recent meeting of Planning and Development Board Punjab, the progress of ADP during the third quarter of FY20005-06 ending on March was reviewed.

The provincial departments were also asked to submit cases for additional funds for the ongoing ADP schemes. The Finance Department would not entertain such requests after May 10. "Only the Punjab Health department has surrendered Rs 59.6 million; and also submitted a request for additional funds of the same amount, while the rest of the provincial departments were yet to respond," they added.

According to them, although the ADP has been reviewed but breakup report was yet to be compiled, which would be possible only after all the provincial departments submit the figure they surrender and demand for additional funds.

However, the review of the third quarter revealed that 63 percent of the Rs 59 billion Annual Development Programme (ADP) has been utilised, which was marginally below the figure of 72 percent.

Eight percent per month utilisation of ADP is an ideal figure and by this standard the Punjab government should have utilised 72 percent of the ADP, but fell short by nine percent.

 

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ISLAMABAD (May 03 2006): Pakistan among top 10 recipients of the world business awards, which showcase the best practices of the business sector in alleviating poverty and boosting development to reach the millennium development goals (MDGs), were announced on Tuesday by the International Chamber of Commerce (ICC).

This year's awardees include business-sponsored projects that provide low-income housing in Mexico, comprehensive HIV/AIDS treatment in Botswana, venture capital for small business in India, and health education in Turkey's primary schools.

On May 9, at the United Nations headquarters, the winners will present their projects to the 14th meeting of the UN commission on sustainable development.

The statement said that media representatives had been invited to attend both events.

The statement added that the event was being organised by the ICC in association with the United Nations Development Programme (UNDP) and the Prince of Wales International Business Leaders Forum (IBLF).

The world business awards are the first world-wide business awards to recognise the crucial role of the private sector in implementing the UN's millennium development goals of reducing poverty by half around the world by 2015, as agreed to in 2000.

THE 10 WINNING INITIATIVE ARE:

-- Aaviskaar India Micro Venture Capital Fund: Lends to poverty-reducing small and medium-sized enterprises in India.

-- Africa Comprehensive HIV/AIDS Partnership (ACHAP), Merck - Addresses the disease in hard-hit Botwana.

-- EcoLogic Finance: Finances conservation in fragile areas of Africa and Latin America.

-- Global Alliance for the Elimination of Lymphatic Filariasis (GAELF), GlaxoSmithKline, Global Community Partnership: Connects health ministries with 40 partners to fight elephantiasis.

-- Health Care Logistic, VidaGas, Village Reach: Supplies propane for health facilities in rural Mozambique.

-- Patrimonio Hoy, Cenex Mexico -Helps CEME: Provide low-income housing in Mexico.

-- Siwa Sustainable Development Initiative, Environmental Quality International (EQI): Invests in projects safeguarding Siwan heritage in Egypt.

-- SOLO, Eezacibasi Georgia - Pacific/Ipek kagit: Promotes personal hygiene in Turkish primary schools to ward off diseases.

-- Sustainable Development in Banking, Banco Real/ ABN Amro: Integrates the MDGs into ABN Amro's operations in Brazil.

-- Tetra Pak Food for Development: Tetra Pak delivers meals to schoolchildren in developing countries and nations in transition.

The eight millennium development goals offer an integrated framework to the challenges that afflict individuals, countries and the global community with quantitative and measurable targets to be achieved by 2015 to alleviate hunger, disease and make tangible improvements in education, health care, shelter and environmental protection.

http://www.brecorder.com/index.php?...&term=&supDate=

 

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ISLAMABAD (May 03 2006): Renowned Pakistani businessman in UK, Sir Anwar Pervez, has been ranked as the 12th richest Asian in Great Britain. He is the first Pakistani who has achieved this distinction.

According to 'Sunday Times,' Sir Pervez is the richest of all of the Pakistani Diaspora in UK with assets valued at 390 million pounds. After a comprehensive research, 'Sunday Times' published the list of 50 richest Asian businessmen in the UK wherein Sir Anwar Pervez is positioned at No 12 among top 15 richest Asians in the UK, says a press release.

The 'Sunday Times' report states that Sir Pervez owns the second largest cash and carry wholesale network in Britain and has illuminated the name of Pakistan by sheer hard work, dedication and honesty.

He was the first ever Pakistani knighted by Her Majesty the Queen of Britain.

Bestway is one of the fastest growing business groups in UK operating in diverse sectors from Cash and Carry business, real estate to banking. Sir Anwar Pervez founded the Group in 1976 by establishing a modest store and with his hard work and vision, he has taken Bestway Group to the heights of fame and stability. Bestway is currently, establishing one of the most sophisticated cement plants in Pakistan.

Recognising his services for his country and community, Government of Pakistan had awarded him the Hilal-e-Pakistan.

 

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ISLAMABAD (May 03 2006): President General Pervez Musharraf said on Tuesday Pakistan's newly developed modern deep seaport at Gwadar offers Central Asian States the shortest route to the Arabian Sea for commerce with the world and added that under the Economic Co-operation Organisation the region can benefit enormously from trade through Pakistan.

"The fruition of ECO agreements on trade and tariff would bring a qualitative change in the regional trade milieu," he stated at a banquet, he hosted in honour of the visiting Uzbek leader Islam Karimov. Prime Minister Shaukat Aziz, members of the federal cabinet, services chiefs, diplomats and senior government functionaries attended the banquet.

Noting a recent increase in Pakistan-Uzbekistan trade, the President said the two ECO members must continue to diligently move forward to unlock the true potential of trade ties.

President Musharraf expressed gratitude to Tashkent for its wholehearted support for Pakistan's bid to gain full membership of the Shanghai Co-operation Organisation and added that he would be attending the Summit meeting of the organisation being held in China.

Speaking about Pakistan's critical role in counter-terror, the President said the country is in the vanguard of the global drive to uproot the menace. However, he reiterated his emphasis that for the achievement of lasting success, it is essential the root out causes of extremism. He said disputes long left to fester by the international community through neglect or sheer callousness must be resolved soon.

"The world must also realise that denomination of a faith is no substitute for a meaningful dialogue."

About the ongoing composite dialogue process with India, President Musharraf said Pakistan is earnestly pursuing a serious dialogue with New Delhi.

"We earnestly desire to resolve the core dispute of Jammu and Kashmir, which is necessary for durable peace in the region."

 

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By Khaleeq Kiani

ISLAMABAD, May 2: As the budget-making exercise enters a crucial stage, the government has decided to constitute a 21-member planning and development policy board headed by the prime minister to enhance the role of the Planning Commission in formulating a long-term policy for development and economic growth.

The government has also decided that the prime minister would be chairman of the Planning Commission from now onwards instead of the finance minister, reveals official documents available with Dawn.

These decisions have been taken to restructure, revamp and strengthen the Planning Commission’s capacity to meet country’s future planning and development needs.

The commission is currently in a bad shape due to retirement of about 70 per cent of its section heads, as no recruitments could take place in the country’s planning agency during the last 30 years.

Historically, the finance minister used to be the chairman of the planning and development division as it was part of the finance ministry. The deputy chairman of the Planning Commission used to be its functional head, while its secretary performed the role of principal accounting officer.

Now, the Planning Commission would be separated from the finance ministry and would be headed by the prime minister.

Under the prime minister, a full-time policy board, again headed by the prime minister, would work as a policy-making forum and the deputy chairman would perform his duties under this board.

Under the decision, the number of Planning Commission members has also been enhanced to nine instead of three members and all of them would be given special MP-1 (management post) grades. In the past, there were only three members for infrastructure, production and management and social sectors.

The full-time members would be appointed for infrastructure, energy, science and technology, food and agriculture, social sector, implementation and monitoring, besides member coordination, director Pakistan Institute of Development Economics (PIDE) and chief economist.

Even before the notification of restructuring, three members have already been inducted in the Planning Commission without any selection process. They include: Dr Asad Ali Shah, a relative of Dr Salman Shah, adviser to the prime minister on finance; Dr S.H. Khan, a former official of the Pakistan Atomic Energy Commission; and Dr Kokab.

All these members would be assisted by nine respective task forces on each sector to recommend sectoral policy initiatives. The members would then act as think-tanks to take up policy measures with the policy board for approval and implementation.

The prime minister would also be the chairman of a newly-created policy board of the Planning Commission. The board will comprise 20 members, including 10 ministers and nine full-time members, besides deputy chairman of the Planning Commission.

Sources said the decision to revamp the Planning Commission had been taken due to deteriorating capacity of various wings of the commission. They said almost 70 per cent of these wings have lost their top-tier officers, commonly known as chief and deputy chiefs, due to retirement as no direct recruitments through the normal selection process of the Public Service Commission could be made during the last 30 years.

The number of chiefs and deputy chiefs has already declined from about 80 to 24 during the last few years. The existing operational role of the Planning Commission that includes formulation of annual plan and preparation for the Public Sector Development Programme and its implementation and monitoring would continue to be performed by the existing planning and development division.

The restructured Planning Commission would now assist in defining the national vision and undertaking strategic planning, assessing material, capital and human resources of the country, formulating proposals for augmenting such resources and building capacity of the agencies involved in the development process.

 

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By Aamir Shafaat Khan

KARACHI, May 2: Consumers continue to show their desire for imported used cars, jeeps, vans, pickups etc., and it is visible from 280 per cent jump in import of such vehicles under various schemes to 27,917 units in July-April 2005-2006 as compared to 7,337 units the same period last year.

The government has netted Rs7.5 billion in customs duty, Rs3 billion in sales tax and Rs1.4 billion in income tax during the period under review as against Rs3 billion in customs duty, Rs1 billion in sales tax and Rs546m in income tax the same period of last fiscal, figures compiled by Appraisement Collectorate revealed.

The collectorate has now computerised the import procedure for used cars by registering importers’ names, passport number and vehicle chassis number.

The collectorate under SRO 179 has also collected Rs55 million from the importers of used cars as a fine who could not fulfil the requirement for their goods declaration on time.

Import of automobiles has already exceeded the $1 billion mark during the last nine months and it is expected to cross $1.5 billion by the end of current fiscal. Auto imports constitute almost 20 per cent of the machinery import group.

As the government is now giving final touches to the budgetary measures for next fiscal (2006-07) to be announced on June 5, car dealers have expedited their efforts in pressurising the government to further liberalise car imports with new incentives and concessions or at least maintain the current policy.

On the other hand, local car assemblers/manufacturers have been lobbying the government to reverse the decision on used car imports and come out with a long- term policy which will encourage the auto makers to further invest in their expansion plans, increase employment and enhance liberalisation.

The import of used cars and other vehicles has been flourishing from August 2005 after the government liberalised import of used vehicles under personal baggage, transfer of residence and gift schemes in the budget in order to curtail the demand and supply gap, high premiums and late delivery problems with locally assembled cars.

As far as premium is concerned massive import of cars has finally resulted in bottoming out premiums on locally assembled cars. The demand and supply gap has remained almost same as market people say it is still 30,000-40,000 units per annum. However, delivery period for high demanding cars still range between three to six months.

No matter how the trade deficit has swelled owing to rising import of used cars and what is its long-term effect on the local assemblers, consumers have got a variety of choices now as previously their wishes to own new car were confined to few models produced locally.

On the other hand, it was presumed that the import of used cars would give a severe blow to the financial viability of the local car assemblers but so far no prominent damage had been done.

For instance, Pak Suzuki sold 86,602 vehicles in 2005 as compared to 65,120 units in 2004. The company’s profit after tax rose to Rs2.237 billion from Rs1.4 billion in 2004. From January 2005, plant capacity had been increased to 80,000 units from 60,000 units. From January 2006, the capacity had been jacked up to 120,000 units. Since December 2003, capacity has increased by 140 per cent. Pak Suzuki has invested Rs3.4 billion in the last two years on expansion, modernisation and balancing.

The board of directors of Pak Suzuki had approved capital expenditure budget of Rs4 billion for 2006.

Sales of Honda Atlas Cars surged to Rs25.6 billion for the year ended March 31, 2006 as compared to Rs16.5 billion in the same period last year. Profit before tax rose to Rs1.1 billion from Rs264 million while the profit after tax surged to Rs705 million from Rs162 million.

The local car assemblers were of the view that used cars were being imported by dealers rather than overseas Pakistanis. The car dealers were not sales tax registered and there was no parts and service availability for used vehicles.

Not only used cars are arriving, some local assemblers have also been in the forefront in bringing costlier cars. For instance, Pakistan would soon witness arrival of Rolls Royce (by the dint of Dewan Farooqui Motors) and one can assume the financial strength of its buyers. The company has also brought German’s BMW and Hyundai luxurious models.

German’s Porsche has already been introduced in Pakistan. Indus Motors and Pak Suzuki have also started distribution business by importing luxurious cars, jeeps and commercial vehicles of higher engine capacity.

 

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ISLAMABAD, May 2: The Board of Investment (BoI) will be reorganized and restructured to transform it into a more vibrant organisation providing one-window operation for expeditious finalisation of local and foreign investment projects.

This was stated by Prime Minister Shaukat Aziz while chairing a meeting at the Prime Minister’s House here on Tuesday. The prime minister took important decisions to further streamline the working of the BoI. He gave instructions for the reorganisation of the board to make it a more focused organisation to encourage, promote and facilitate both domestic and foreign investments.

Mr Aziz said it was heartening to note that during the last four years, the amount of foreign direct investment (FDI) increased about five times. “During the first nine months of current financial year, the country received $2.2 billion as FDI, which will lead to further growth, employment opportunities and overall economic uplift.”

He said the BoI should develop a marketing plan which should dovetail with the overall investment and reform strategy of the government. “The marketing plan should clearly identify the potential areas of investment and incentives provided by the government. It should also identify 8-10 countries which should be generally focused. The plan should also identify specific countries for each potential areas/industry,” Mr Aziz added.

The prime minister said the marketing plan should also include a clear and comprehensive strategy to achieve the targets set, create awareness at local and foreign level about the investment potential of Pakistan and to sell the investment potential of the country more affectively.

Noting that different parts of the world have different requirements, the prime minister asked the board to develop geographical expertise. They should do research about the interests of investors in Pakistan and prepare country-specific plans and policies to guide different categories of investors more effectively.

“The BoI should study peculiarities of major countries to work as an affective organisation,” the prime minister said.

He asked the board to consistently guide foreign missions and federal and provincial government departments about investment policies and potential areas of investment.

Mr Aziz identified IT and telecom, real estate, engineering, construction business, agribusiness and manufacturing as major potential areas for investment. The premier also asked the BoI to focus more on preparation of promotional and marketing material for the guidance and facilitation of potential investors. He said the existing facilities at various offices of the BoI would be upgraded and modernised.

The meeting was attended among others by Privatisation and Investment Minister Zahid Hamid, Minister of State for Privatisation and Investment Umar Ahmad Chuman and senior officials.

 

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Wednesday May 03, 2006

ISLAMABAD: Prime Minister Shaukat Aziz has said that Pakistan attaches great importance to relations with the Netherlands, which is not only one of our important trade partners but also the 7th largest foreign investor in Pakistan, and a major partner in the area of development cooperation.
Talking to Mr. Bernard Bot, Foreign Minister of Netherlands, at the Prime Minister’s House Tuesday, the Prime Minister said Pakistan has a strong interest in further strengthening relations with Netherlands.

Matters relating to bilateral cooperation, national and international issues, Pakistan’s role for peace in the region, defence and security matters and investment friendly climate in Pakistan came under discussion.

On Afghanistan, the Prime Minister said Pakistan wants to see peace and prosperity in Afghanistan. A strong, peaceful, stable and vibrant Afghanistan is in favour of its people and important for Pakistan, the region and the world.

On the Iranian nuclear issue, the Prime Minister said Pakistan is opposed to nuclear proliferation. However, Iran has a right to use nuclear energy for peaceful purposes under the IAEA safeguards. He said Pakistan is in favor of a peaceful resolution of the issue through dialogue and is opposed to any coercive measures against Iran. The use of force against Iran will be catastrophic, the Prime Minister added.

The Prime Minister reiterated Pakistan’s commitment to peace process with India through a process of composite dialogue. He said Pakistan’s suggestions of demilitarization and self governance in Kashmir can form the basis of meaningful dialogue and concrete progress on the Kashmir issue.

Talking of the defense and security issues, the Prime Minister said Pakistan wants to have minimum credible deterrence to maintain balance of power in the region.

"Pakistan does not have aggressive designs against any country and our defence policy is designed to maintain our sovereignty and integrity," the Prime Minister added.

Observing that gaps between various faiths is widening, the Prime Minister emphasized the need to work harder for promoting interfaith harmony to "ensure a better future for the coming generations."

"All of us need to open our minds, think more rationally and create tolerance to avoid potentially conflict situations which can destroy peace and hamper prosperity," the Prime Minister said.

Commenting on the internal political situation, the Prime Minister said that the country today has a functioning democracy, active parliament and free press. All parliamentary institutions and systems are gaining maturity and strength, he added.

Talking about the economic recovery achieved by Pakistani Prime Minister said that the reforms agenda undertaken by the government was one of the most broad based, comprehensive reforms process ever undertaken by any country.

He said Pakistan has been consistently achieving high growth rates since the last few years. Last year its GDP growth was the second highest in Asia. All sectors of economy are showing an upward trend. Pakistan has over 150 million consumers with growing incomes, a growing middle class and Per capita income is expected to rise to $800 this year.

Talking of investment opportunities available in Pakistan, the Prime Minister said Pakistan has the most liberal investment policy in South Asia. Government’s policies of liberalization deregulation, privatization coupled with consistency, continuity and transparency of policies have made Pakistan an ideal destination for foreign investments.

The Foreign Minister of Netherlands, Mr. Bernard Bot agreed with Prime Minister Shaukat Aziz on the need to work harder for promoting interfaith harmony and apprised the Prime Minister of the steps taken by Netherlands to promote interfaith dialogue.

Mr. Bernard Bot emphasized the need to enhance trade and commercial ties between Pakistan and Netherlands particularly in the fields of food processing, agriculture and horticulture.

He said Netherlands wants to strengthen cooperation between the two countries in various fields of education and has approved a grant of 30 million Euros for educational purposes.

He said the world wants to see stability and peace in Afghanistan and Netherlands will be sending more troops to Afghanistan. He emphasized the need for better coordination and intelligence sharing between all parties involved in maintaining peace in Afghanistan.

Mr. Bernard Bot said Netherlands favors a peaceful resolution of the Iranian nuclear issue through diplomatic efforts and is opposed to the use of force against Iran.

The meeting was attended among others by Secretary Foreign Affairs, Ambassador of Netherlands in Pakistan and senior officials.

 

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Wednesday May 03, 2006

RAWALPINDI: Expressing hope that Holland can play matchless role to help access of Pakistani exports to European markets, President General Pervez Musharraf underlined the need Pak-Holland should bolster ties in various areas with special reference in defence sector.
President Musharraf expressed these remarks in meeting with Holland foreign minister Bernard R. Bot who called on him here Tuesday.

"Holland is enjoying important position among European states. The Holland should extend full cooperation in access of Pakistani exports to European markets," Musharraf added.

Terming Pak-Holland cooperation against the nasty game of terrorism, Musharraf said that Pak-Holland closer cooperation would help ensure international peace.

 

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Wednesday, May 03, 2006

LAHORE: A growth 6-8 percent in GDP would prove a wishful thinking in the absence of foreign direct investment in the country, says leading economist Dr A R Kamal.

Talking to the Daily Times on the sidelines of the Second Annual Conference on The Management of the Pakistan Economy at Lahore School of Economics on Tuesday, Dr Kamal, who is also Director of the Pakistan Institute of Development Economics, Islamabad, said the future outlook for the country would depend upon the rate of foreign investment in the country.

“The future outlook could be deteriorating in case the country fails to attract foreign investment in near future,” he said.

Dr Kamal said the privatization proceeds are not enough to project the portfolio of foreign direct investment, as these proceeds could be helpful in retiring debt and that’s all.

“Investment in the private sector should increase in proportion to the privatization proceeds, as handing over the public sector resources to the private sector without any major breakthrough in direct investment in the private sector may hit hard the GDP growth,” he said.

According to him, the private sector investment could get boost only when both the government and the opposition make some joint statements to ensure the investors that no major change would take place in key investment areas.

Talking about law and order, Dr Kamal said: “It is more of an issue of perception than reality.”

He also deplored the government’s focus on agriculture sector saying it is not up to the mark, as no adequate allocations have so far been made to develop the sector.

He disagreed with the impression that the per capita income of $800 does not reflect the ground reality and stressed that the economy possesses more potential than the present levels.

He, however, added in the same breath that an increase in per capita income from $450 to $800 has failed to show up in the lives of common people and income inequalities have increased sharply.

 

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Wednesday, May 03, 2006

KARACHI: Profit after taxation of listed banks during the first three months of the current year 2006 has improved by 58 percent mainly on the back of improving margins that is spread between lending and borrowing rate compared with the corresponding period of previous year 2005.

Pakistan’s commercial banking sector was the most profitable sector for the year 2005 among 34 listed sectors at the Karachi Stock Exchange (KSE). Listed banks’ profitability grew by 99 percent and reached Rs 47.5 billion in the year 2005. The momentum of bank’s profitability growth, which started in 2003, is continuing in 2006 as well.

Currently out of 38 commercial banks in the country, 21 are listed. The 20 listed banks’ profitability in the first quarter of 2006 went up by 58 percent to Rs 14 billion mainly on the back of improving margins that is spread between lending and borrowing rates.

Of the Rs 14 billion earnings, National Bank of Pakistan (NBP) topped the list with Rs 3.6 billion followed by MCB Bank with Rs 3 billion and United Bank’s Rs 2.2 billion. Of 20 banks, five banks, Askari, Faysal, Bank Alfalah, NIB and Bank of Khyber, posted decline in profits during the period under review and only one bank, Crescent Commercial Bank, incurred losses in this period.

Muhammad Imran, an analyst at Jahangir Siddiqui Capital Markets, said contrary to common perception, where local investors multiply quarterly earnings by four to estimate full year’s profits, banks normally earn less in the initial months of the year. By historically analyzing the first quarter profitability of the banking sector we find out that in 2004, listed banks earnings were 18 percent of full year and in 2005 it was 19 percent. This is because of the reason that banks’ lending and deposits activities are sluggish in first three months of the calendar year.

He said during the period major contributor to the earning growth of the banks was their improving net interest income (NII) in the outgoing quarter. The growth in NII was due to the rising yield on earning assets. During the first quarter of 2006, banks’ advances increased by 2.1 percent or Rs 19 billion only as compared with the advances’ growth of six percent or Rs 98 billion in the corresponding period of last year. This less growth in advances was, however, compensated by the rising spread of the sector. The average spread of the sector for the first three months of the current year was recorded at 7.32 percent, which was 223 basis points higher than the average spread of the first three months of 2005.

 

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Wednesday May 03, 2006

KARACHI : The Adviser to Chief Minister on Environment, Alternative Energy and Information Technology, Mohammad Noman Saigol, on Tuesday stressed the need for using alternate means of energy, specifically wind energy. He emphasized physically starting the windmill project after resolving concerned issues with immediate effect. This, he said, would resolve the electricity needs in the country and Sindh.

Cities like Karachi, Hyderabad and Sukkur were major sufferers in Sindh due to shortfall in electric supply, which had affected industrial units at large, he added.

He also stressed using alternate means of energy to enhance industrial growth in Pakistan.

Insisting on the PPA, he requested the authorities to do it on war footings to enable investors to stay back, “otherwise we dread they might pull out because of further delay”.

He feared that if the wind energy project was ruined, other relevant means of alternative energy would also suffer by going through the same experiences.

He said the Sindh government was also working on solar energy, high tide, and biogas projects, besides suggesting that ethanol could also become a source of alternative energy and be used in vehicles.

Meanwhile, he also appreciated the support given by the Sindh Governor to expedite the IT project, specifically e-Policing.

 

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Wednesday May 03, 2006

ISLAMABAD : Minister for Information Technology Awais Ahmad Khan Leghari has said his ministry had decided to set up career placement offices in about 25 top universities to pick up talented IT graduates for their placement in the industry.

"These youths will undergo extensive training-***-internship at the leading IT companies for a period of three years and the ministry would provide 50 per cent of the total cost that would include a monthly stipend."

He said this in his address to the two-day Nascon 2006, all Pakistan IT, Engineering and Business Gala that concluded here at the National University of Computer and Emerging Sciences Fast Islamabad. He said the objective of setting up career placement centres in the universities was to harness the talent possessed by youths in the far-flung areas.

"These career placement offices will be run and managed by Pakistan Software Export Board and the selection of candidates will be made strictly on merit and performance." he said. The program - to be funded by the National ICT Research & Development Fund will start in the next five to six weeks and it would include 5,000 to 6,000 internships at best IT companies of the country.

The minister pointed out that about 80 to 85 per cent of the human resource employed by the industry came from four to five tier-one universities, which house around 2,000 seats in the IT discipline. "Our aim is to bring up 15 to 20 tier-two universities to the tier-one level and the ministry has decided to pump resources into this crucial area along with complete support and assurance from the IT industry for 100 per cent absorption of the human resource," he added.

The minister lauded the FAST University for offering quality education in the fields of IT, telecom, and business management and announced 200 scholarships in the IT discipline.

He said the government had already taken lead in sending 65 boys and girls abroad last year to top international universities to pursue M S / Ph D programme. "The cost of these 65 scholarships was Rs 200 million, which was borne by the National ICT Research & Development Fund of the ministry," he said adding the foreign scholarship programme would continue in future as well.

Earlier, FAST Rector Dr Amir Mohammad in his address stressed the need for a greater university-industry liaison to strike linkages between academia and the industry. Later, Awais Ahmad Khan Leghari gave prizes and trophies to successful participants.

A total of 100 teams comprising 540 students from all over the country participated in the Nascon 2006. Hamid Mukhtar and Majid Khan of NIIT won the first prize. Anam Ghaffar and Misbah Mubarak from Nust won the second prize. Lums and PUCIT shared the third prize.

In the category of Engineering Project (hardware) EME - Nust got the first and second prizes, while the third prize went to the University of Faisalabad. In Harvard Case Simulation CIIT Abbottabad won the first prize. MAJU Islamabad and Fast-NU Islamabad Campus shared the second position.