Pakistan Economy - News & Updates - Archive

[Neo]

UK grant doubled to £480 million

KARACHI (May 03 2007): British Deputy High Commissioner Hamish Daniel has said that the British government has doubled its grant aid framework for Pakistan to 480 million pounds for the period of 2008-11. Addressing members of Site Association of Industry (SAI) on Wednesday, he said that funds of this grant are managed by Department for International Development (DFID).

He said DFID is currently preparing its new country assistance plan (CAP) for Pakistan for the period 2008-2013. This will set out how available resources will be used to help in education and reducing poverty in Pakistan.

DFID is consulting widely with the federal and provincial governments, private sector, and civil society organisations to prepare its actin plan. In the next few days DFID will carry out a consultative excise in Sindh. It has already completed consultative excise in Punjab, he said.

Regarding fish exports and anti-dumping duty on Pakistani products to European Union (EU) countries, he said that "there are certain standards, which we have to meet". However, he added that a meeting would be held soon to discuss the issue.

Hamish said that EU is the largest market of Pakistani products. Britain in one of the biggest supporters of Pakistan on the issue of market excess to EU countries.

Referring to two-way trades, he said that it is slightly in favour of Pakistan. Total exports from Pakistan amount to 523 million pounds, whereas imports amount to 489 million ponds. Last year, Pakistan's exports to UK increased by 5 percent, he added.

He said that the British consulate makes efforts to encourage UK business community to visit Pakistan and see the existing opportunities of investment and increasing two-way trade. He noted that in the last few months around 10 UK missions visited Pakistan to discuss ways and means to increase two-way trade and investment.

About UK visa, he said that some new rules have been introduced and now visa seekers have to go for Tuberculosis (TB) test if they intend to stay more than six months there. Welcoming the guests, SAI Chairman Imran Shaukat brief the UK Deputy High Commissioner about SAI and its functions.

http://www.brecorder.com/index.php?id=559004&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

NWFP to promote private investment in mineral sector

PESHAWAR (May 03 2007): The government of NWFP is likely to constitute a Mine Facilitation Committee under the supervision of the provincial secretary industries to promote private investment in the mine and mineral sectors in the province.

Talking to Business Recorder, Director General, Mines and Minerals NWFP, Mian Farooq Iqbal said that the proposed facilitation committee would have 10 representatives of the private sector to resolve problems confronting mining sector in the province. He said that for the promotion of investment in the sector, the provincial government has brought transparency in auction of the leases of different mines.

The said that the auction of the two emerald mines of Gujjar Killi and Shamozai, district Swat held in presence of the officials of National Accountability Bureau (NAB) to guarantee transparency and fairness in the deals. The two mines have been auctioned for Rs 44 million and Rs 95 million respectively in February this year.

"One of the mine has been leased out to a multinational, Luxury International while the second to a local firm," the DG mine and mineral informed adding that the third emerald mine at Fiza Gat, Mingora, Swat would be auctioned shortly.

Mian Farooq Iqbal said that the reforms introduced for the purpose of the promotion of investment has helped in maximum increase in the collection of royalty and other receipts of the department. The royalty of Rs 150.801 million collected in financial year 2003-04 during last four years jumped to Rs 240.804 million during last financial year. During last eight months of the current financial year the directorate had collected Rs 179.025 million and likely to surpass the target of Rs 230 million for the whole financial year.

http://www.brecorder.com/index.php?id=559006&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Drug expenditure to touch $1.82 billion

KARACHI (May 03 2007): Pakistan's drug expenditure is expected to touch $1.82 billion mark with per capita spending to be over $10 in next three years. According to international report on Pakistan Pharmaceutical and Healthcare domestic drug sector was still striving to modernise.

The Business Monitor International (BMI) report said that the country had around 400 licensed pharmaceutical companies, including 30 multinationals.

Foreign drug-makers account for the majority of drug market in value terms, with a 53 percent share, although domestic companies are dominant in volume terms.

Despite having a large population, Pakistan's share of the global pharmaceutical market remains relatively low.

Meanwhile, the small-scale nature of the pharmaceutical manufacturing sector and the fact that production consists mainly of basic medicines has meant that Pakistani drug exports are relatively minimal.

However, the government is encouraging this sector by offering incentives to local exporters and supporting the improvement of domestic production standards.

Entrance to the WTO would also help drug exporters by opening up markets across the globe, the report said. BMI's adjusted Business Environment Rankings for Asia reveal that Pakistan's position was unchanged in 14th place.

"This is primarily due to the country's poor regulatory system, which we rate as one of the worst in the region," the report said.

The government seems to be making some efforts to improve this situation and has recently increased the number of courts dealing with counterfeit drugs from nine to 20. It is hoped that efforts to battle fake and substandard products would boost foreign investors' confidence and stimulate local production.

The country's long-term political risk rating has improved slightly as compared to the previous quarter.

Pakistan is going ahead with plans to implement a new autonomous drug authority. The organisation's main function will be to help streamline the registration process for pharmaceuticals and healthcare ensuring the quality of all medicines. Pakistan has several problems with counterfeit drugs and the World Health Organisation (WHO) estimates that between 40-50 percent of drugs in the market are fake or substandard.

http://www.brecorder.com/index.php?id=558989&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Abu Dhabi gifts power plant to CDGK

KARACHI (May 03 2007): The 320MW power plant gifted by Abu Dhabi government to City District Government Karachi (CDGK) would be operational by next year. Sindh Governor Dr Ishratul Ibad Khan, who presided over a meeting held to review the pace of work. He stressed on expediting the work, a release from Governor`s Secretariat said on Wednesday.

Governor Ibad said every possible resources should be arranged to enhance electricity production to meet city requirement. He also thanked Abu Dhabi government for providing a power plant for Karachi. The project co-ordinator Tanveer Zaidi informed at the meeting that Abu Dhabi has decided further investment for this gifted power plant as more power plants are coming to increase generating capacity to 1800MW.

He said a joint company PORTEC of Singapore and Italy is executing the project. Meanwhile, a delegation of Al-Rajhi Group of Saudi Arabia called on Sindh Governor Dr Ibad at Governor House. The delegation consisting of Abdullah Hegeali and Zubair Darowala showed keen interest in investing in real estate sector here. They told that their company has talked to CDGK, Civil Aviation and PA in this connection.

http://www.brecorder.com/index.php?id=559041&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Pak, Iran oil ministers agree to speed up IPI project

ISLAMABAD: May 03, 2007: Pakistani and Iranian oil ministers met Thursday in Riyadh on the sideline of an Asian energy conference and agreed to speed up the Iran-Pakistan-India (IPI) gas pipeline project, according to message received from Saudi Arabia.

Federal Minister for Petroleum and Natural Resources Amanullah Jadoon and Iranian Oil Minister Seyed Kazem Viziri Hamaneh are attending the 2nd Asian Energy Ministerial Roundtable in the Saudi Arabian capital.

During the meeting the two ministers emphasised that IPI would create linkages and interdependencies leading to a win-win situation for all and promote peace in the region.

They expressed satisfaction at the progress so far achieved on the IPI project and agreed on its early implementation.

Amanullah Jadoon said Pakistan and Iran enjoy deep rooted cordial and brotherly relations based on Islamic fraternity, culture and commonality of views on regional and international issues.

He briefed his Iranian counterpart about the steps being taken by the Pakistan government for promoting the energy sector on modern lines and efforts to explore the untapped hydrocarbon and alternate energy resources.

The ministers agreed that there exists a lot of potential and opportunities for expanding bilateral co-operation and exchanged views on avenues of co-operation in various fields, particularly in the oil and gas sector.

The Iranian minister said that Iran attaches great importance to its brotherly relations with Pakistan which were growing in multi-dimensional fields.

He said expeditious implementation of IPI gas pipe line project would promote peace and prosperity in the region and bring the people closer.

http://www.brecorder.com/

 

[Neo]

Telecom top earner of FDI with $1.4bn inflows

By Israr Khan

ISLAMABAD: Pakistan’s communication sector has attracted Foreign Direct Investment (FDI) of $1.41 billion including $133.2 million privatisation proceeds during the first nine months of 2006-07 followed by financial businesses with $696 million and oil and gas exploration $420 million.

Between July-March 2006-07 the inflows in communication sector, financial businesses and oil and gas exploration grew by 34 percent, 162 percent and 93 per cent respectively over corresponding period of 2005-06 when these were recorded at $1.025 billion, $265.5 million and $216.9 million respectively, the central bank’s data reveals.

FDI inflow is climbing and government’s economic managers are hoping for further growth in current fiscal. They expect that the foreign investment in Pakistan would breach six billion dollar mark by the year-end.

It is also pertinent to note that during the whole fiscal 2005-06, total investment in communication sector was $1.94 billion, financial businesses $329.2 million and in oil and gas exploration foreign investment was $312.7 million.

Investment in tobacco and cigarettes also increased substantially to $387.3 million from only $1.9 million recorded in corresponding period of the last fiscal.

Trade and construction sectors also fetched sizeable investment of $128.4 million and $114.4 million against $81.9 million and $54.4 million respectively in corresponding period of the last fiscal.

Investment in petroleum refining stood at $98.7 million, beverages $88.4 million, textile $47.1 million, transport equipments (automobiles) $36.7 million, and in chemicals FDI stood at $27.3 million.

However, on the other hand the data gives a bleak picture, as in power and cement the main sectors, which facilitate jacking up the economy the inflows were declining. In power sector the inflows declined by about 58.8 percent to $125.1 million and in cement sector it dipped by 60 percent to $13.4 million. In corresponding period of the last fiscal, the inflows were $304 million and $33.6 million respectively.

The inflows in tourism were also not satisfactory which stood at $2.2 million against $2.5 million in corresponding period of the last fiscal. Foreign Direct Investment in food sector also declined by 71 percent to $13.1 million.

Economists believe that if the inflow of direct investment in the country remained strong, it would give a big boost to Pakistan’s economy by improving per capita income and accelerating the government efforts in bringing down poverty level. Besides, it would work as a cushion against the external shocks and would mute the pressure of climbing current account deficit.

http://www.thenews.com.pk/daily_detail.asp?id=53970

 

[Neo]

May 03, 2007
Aptma offers 250MW power to Wapda

LAHORE, May 2: Textile mills have offered to provide up to 200-250MW of electricity from their furnace oil-fired power units to Wapda on a 30-day notice provided the utility agrees to pay a price of Rs1.31 per unit on top of the cost of fuel.

“We’ve for long been discussing with Wapda the possibility of selling electricity to it so that the public utility can bridge the current gap between the demand and supply of electric power, which has led to widespread load-shedding around the country,” Punjab Aptma Chairman Samir Saigol told a press conference here on Wednesday.

He said the textile industry had furnace oil fuelled captive power plants with a capacity of about 400MW lying idle since the mills had already shifted to gas-fired power generation to reduce their generation costs.

He said the industry had been negotiating with Wapda the price, which was far below the rates at which the public utility purchases power from any existing or proposed independent power producer (IPP) generating electricity from furnace oil.

“What we are asking is Rs1.31 per unit from Wapda, exclusive of the cost of furnace oil used. This is quite reasonable because a major chunk of it would be used for covering the maintenance of the power units and other operational expense. However, Wapda has so far not shown any signs to accept the offer,” he said.

Wapda is currently facing a gap of about 1,500MW in demand and supply of electricity, which has forced it to go for what the utility calls as load management. Reports suggest that Wapda is resorting to two-hour load-shedding daily in the urban areas alone. The situation in the rural areas is described to be even worse.

If Wapda agrees to purchase power from the textile industry, it will help it bridge the power shortages by up to 17 per cent. “Besides, it will also help the mills recover to some extent their investments on installation of power generation capacity, which is lying idle for years after those shifted to gas generation,” Samir said.

He said though the industry had an accumulated idle generation capacity of 400MW, not all units are in an operational condition. “A contribution of 200-250MW should not be taken as a small gesture in a situation where the country is faced with huge power shortage,” he added.

http://www.dawn.com/2007/05/03/ebr1.htm

 

[Neo]

Progress on IPI pipeline

GIVEN the pressure that America has traditionally brought to bear on the workings of the World Bank and the International Monetary Fund, the WB’s verbal offer to “seriously consider” funding for the IPI gas pipeline comes as a pleasant surprise. America’s 30-year-old adversarial inimical relationship with Iran has nosedived in recent years, with Tehran refusing to abandon its uranium-enrichment programme and Washington threatening to let loose the dogs of war. A military attack on Iran was always going to be unfeasible given how troubled US forces are in Iraq and Afghanistan, not to mention Washington’s failure to rally international support for such action. However, the US did succeed in arm-twisting the UN Security Council into imposing tougher military and nuclear sanctions on Iran in March this year. Seen against this backdrop, it is intriguing that the World Bank has chosen to focus on the IPI project’s financial viability instead of being guided to by the geopolitical interests of the United States. Coming at a time when the WB is headed by a diehard neoconservative like Paul Wolfowitz, the views expressed on Tuesday by the bank’s vice-president for South Asia are indeed heartening. Pakistan is yet to request financial assistance for the IPI pipeline, he said, but stressed that such a request was likely to be viewed favourably.

Mr Praful Patel, the visiting World Bank VP, accurately summed up the country’s energy woes when he said that Pakistan was standing on the deck of a burning ship. Both industrial and domestic users have already been hit hard by the electricity shortage, and there are fears that productivity in the manufacturing sector may shortly suffer a crippling body blow if generation capacity is not increased substantially. The IPI project is of vital importance in this context. Indigenous gas supplies are overstretched as it is and are clearly insufficient to meet the need of additional power plants that are so urgently required. Oil-fired units will have to meet the need in the short term but this is not a prescription that Pakistan can afford to follow indefinitely. If all goes according to plan from this point onwards, the $7.4 billion, 2,600-kilometre IPI project will take between three and five years to materialise. The tariff issue has already been sorted out by the three countries involved, and Pakistan and India are also in agreement over the gas-sharing formula. At the same time, progress is being made on the transit charges that New Delhi must pay Islamabad. Both Pakistan and India need the IPI pipeline if they are to sustain their economic growth of recent years. Islamabad also stands to make substantial monetary gains from the annual transit fee.

Besides the economic benefits accruing to all concerned, the IPI pipeline offers a golden opportunity to strengthen regional bonds in a unipolar world. Both Pakistan and India need their strategic and economic ties with the US but that does not mean that Pakistan should be subservient to Washington and fail to stand by its neighbours. Moscow has also shown keen interest in the IPI pipeline and the involvement of an energy giant like Russia bodes well not just for the project’s financial viability but also for its sustainability in the event of US or western European opposition. Pakistan and India must stand firm and look to their own interests first and foremost.

http://www.dawn.com/2007/05/03/ed.htm#1

 

[Neo]

Thursday, May 03, 2007

Potential exists to irrigate extra 9m acres: MINFAL

By Sajid Chaudhry

ISLAMABAD: The estimates of the Ministry of Food, Agriculture and Livestock (MINFAL) show that the country has potential to extend irrigation facilities to additional 9 million acres of land for enhancing agriculture produce.

All on-going and planned water development projects would provide additional irrigation facility of around 4 million acres and 2 million acres increase in cropped area. There is also potential of developing around 5 million acres of land by using flood water of hill-********.

According to a MINFAL report the government is progressing well in the direction for extending irrigation facilities and improving water efficiency.

Diamer Bhasha Dam, Kalabagh Dam, Kurram Tangi Dam, Munda Dam, Akhori Da, are among big dams to be constructed by 2016. The construction of these dams would enable the agriculture managers to utilise additional water resources for agriculture development.

The ongoing water sector projects are Mangla Dam Upraising project, Gomal Zam Dam, Mirani Dam Project, Sabakzai Dam project and Satpara Dam Project. Feasibility studies are also being arranged on Sukleji Dam, Winder Dam, Naulong Dam, and Hingoli Dam.

The government is pursuing an aggressive water sector development agenda under which dams are being planned to increase water availability in the country for agriculture. Some 2 million acres of land would be available through the development of Mangla Upraising project and construction of three canals Kacchi Canal , Rainee canal and Greater Thal canal.

The programmes being implemented for improving irrigation efficiency through lining of canals, judicious use of surface and tube well water, increased investment in water usage efficiency and experimentation with sprinkle and drip irrigation.

The future growth of the agriculture sector aimed at the development of the livestock, dairy, agri-business and horticulture sectors. The livestock is emerging as a key sector of growth and there is still a huge un-realised potential of livestock and dairy.

The government has adopted livestock growth strategy to address the constraints like in adequate feed resources, unavailability of superior germplasm, epidemics of infectious diseases, poor marketing infrastructure, poor institutional framework and out dated regulatory framework.

The report also sheds light to key policy goals for growth of the agriculture sector through diversification to horticulture, livestock and fisheries, narrowing yield gap by enhancing productivity especially of small farmers, promoting demand driven research and adoption of new technologies, ensure fair price to farmers and be compliant with WTO regulations, especially international quality standards to avail more share in the global agriculture market.

http://www.dailytimes.com.pk/default.asp?page=2007\05\03\story_3-5-2007_pg5_1

 

[Neo]

Five million tonnes wheat to be exported in 2007

ISLAMABAD (May 04 2007): The government has decided to export 5 million tonnes of wheat in 2007 through the private sector, announced Sikandar Hayat Khan Bosan, Federal Minister for Food, Agriculture and Livestock, at a press conference held here on Thursday. He said that the decision was taken at a meeting with Prime Minister Shaukat Aziz.

As the country is expected to be surplus in wheat this year, therefore, it has also been decided to allow its export through sea and land routes to all countries including India. But no subsidy would be given to the exporters", he stressed.

Continuing he said, "In this respect, the Indian government has floated international tender to buy wheat. This year we have successfully achieved the wheat production target of 22.5 million tonnes and it seems that we will exceed the target by a considerable margin", the minister said.

He highlighted that the wheat crop area has increased from 8.355 million hectares in 2005-06 to 8.420million hectares in 2006-07. He told the journalists that the country is going to export wheat after 50 years.

He explained that the factors that led to the record production of wheat include increase in minimum support price from Rs 415 last year to Rs 425 per 40 kg this year. The subsidy of billions of rupees on the import and production of DAP and other phosphatic and potassic fertilisers, the adoption of good agricultural practices (GAP) by the farmers and also the good weather conditions.

He said that the government believes in farmer-friendly policy. He disclosed the government has given as a toll free number to farmers to make calls against any injustice by the dealers. Besides, payments would be made to the farmers within 48 hours.

He hoped that due to record production, the price of wheat flour in the local market would be low. "The prices of our wheat flour in the local market are less than any other country of the region like India, Afghanistan, Bangladesh and Dubai for the last two 2 years", he emphasised.

http://www.brecorder.com/index.php?id=559315&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Power load management plan approved: shops to be closed at 8pm

ISLAMABAD (May 04 2007): The government has approved, in principle, a load management plan including closure of shops at 8pm to overcome power shortage. It would, however, not apply to medical stores, restaurants and petrol pumps.

"We have asked Discos to prepare 'zoning plans' of their respective areas based on 'equal shortage sharing' for categories of consumers," said Ashfaq Mahmood, Secretary Water and Power while briefing newsmen along with Advisor to Finance Ministry Dr Ashfaque Hasan Khan here on Thursday.

He said, Minister for Water and Power Liaquat Ali Jatoi would announce the plan in the next few days after consultations with the provinces and other stakeholders. The plan also envisages closure of advertising signs after 8 pm.

"We do not want to go for forced load shedding but in case of non-cooperation by the consumers, government will have no other option but to take such a decision," he added. Secretary said regional power utilities have been asked to discuss with local industry for staggering of weekly industrial holidays. He said already a consensus has emerged under which industrialists would ensure 25 percent reduction in power consumption in the evening.

He appealed to 17 million power consumers to switch off one 100 Watts bulb daily to conserve 1700 MW of electricity. Similarly, he hoped people and owners of marriage halls would also cooperate by reducing or discarding lighting during ceremonies at peak hours.

Replying to a question, Ashfaq Mahmood said there was no plan for two-day weekend for the government offices. Similarly, he said street-lights would not be switched off because of its negligible impact on the overall energy situation and security concerns.

He said, as of now the capability of the entire system was 14500 MW as against demand of 15476 MW. The existing deficit of 976 MW would increase during the next few weeks and start decreasing thereafter due to increased water availability in dams and re-starting of some thermal power plants, which were closed down for necessary maintenance.

He said the demand of electricity was increasing due to unprecedented economic growth, village electrification and tubewell connections. Last year 13,000 villages were electrified while 10,400 have been electrified during the current financial year. Similarly, about 30,000 tubewell connections were given during this period.

He said water availability has increased due to rising temperature and reservoirs have five times more water as compared to April last year. Ashfaq Mahmood said government has taken a firm decision to provide all necessary funding for constructing water reservoirs. He said the government is determined to make necessary finances available to initiate work on the crucial Neelum-Jhelum hydroelectric project.

He said Wapda has identified a number of sites for generating hydel power on run-of-the-river. The total capacity of such sites comes to about 15000 MW. In replying to another question, he said that KESC is now facing only 90 MW shortage as Wapda is supplying 715 MW electricity at peak hours and 550MW at the daytime.

He was of the view that the government is making efforts to save Karachi from loadshedding and for this purpose prevailing situation has been discussed in details. Briefing newsmen on the occasion, Dr Ashfaque Hassan Khan said the country's foreign exchange reserves increased by $390 million during March and April this year. The reserves stand at $13.752 billion as of 30 April.

He said exchange rate remained stable during these two months while market capitalisation of the stock exchange increased by nine billion dollars during the period. KSE index rose by 1162 points in March and April. Dr Ashfaque Hassan said road shows for floating bonds in the international market would begin this month.

He said in its assessment Goldman Sachs, a global investment bank, has included Pakistan in the list of eleven countries the economy of which would be on the top in the world by 2050.

Ashfaque negated a statement attributed to Governor State Bank, in which she was quoted as saying that the International Monetary Fund (IMF) has expressed concern over some of the actions taken by the government. "It does not make any sense, if IMF has any concern, it should have been conveyed to the government not the Governor SBP," he concluded.

http://www.brecorder.com/index.php?id=559295&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Hmmm...not sure if that's the right thing to do. It will reduce revenue generation, hit the business community, specially the SME.

 

[Neo]

Cotton output target not achieved

KARACHI (May 04 2007): The country has missed its set cotton production target of 13 million bales for the 2006-07 by some 0.589 million bales as the major cotton producer-Sindh and Punjab were hit badly by uneven weather conditions. The process of cotton bales arrival in to the ginning factories has been completed, depicting a drastic shortfall.

"This year outcome is'12.41 million bales, which is short by last 0.589 million bales against the revised target of the 13 million bales and now process of phutti arrival from up country in the ginning factories has completed".

Of total production of 12.41 million bales, 0.117 million bales have been exported and 11.88 million bales sold to the textile mills, while the unsold stock stands at 0.396 million bales, Pakistan Cotton Ginners Association (PCGA) said.

Ginning factories of Punjab produced total 10.09 million bales, while some 2.32 million bales has been produced in the ginning factories of Sindh, it added. However, current year cotton production is 0.12 percent as compared to the corresponding period last year, last year total production stood at 12.394 billion bales.

Ghulam Rabbani a leading trader said that heavy monsoon rains has badly hit the cotton crop at final stage of phutting and we were expecting more losses but due to the sowing of BT cotton in different parts of the country, losses were under control.

Up-till the last month government officials were defending that country will achieve a bumper cotton crop of 13 million bales despite uneven climate and heavy rains on the most fertile cotton belts and areas of the country.

Sikindar Heyat Bosan federal minister for food agriculture and live stock during his visit of Karachi cotton Exchange in March also claimed that "country will surpass the cotton target of 13 million," while traders were insisting that target would not be achieved.

On Thursday PCGA released final statistics of cotton production that cotton production is 5 percent lower than target. Although these are not official statistics but it is believed authentic, all the stakeholders including KCA, All Pakistan Textile Mills Association (APTMA) are members of the collection committee therefore they are agreed on these statistics.

Ghulam Ranbbani said that there are some other factors including uncertified seeds low quality medicines and late availability of Diammonium Phosphate (DAP) fertiliser are some other reason of missing the target, he added.

He said that crop medicines, which are available in the markets are not as per standard and some of them were expired. The government should ensure that fertiliser availability on time and quality seeds and medicine to achieve next year cotton target, he added.

http://www.brecorder.com/index.php?id=559304&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

May 04, 2007
Factors for slow export growth analysed: PM chairs meeting

ISLAMABAD, May 3: Pakistan will have to improve its productivity level, ensure quality and concentrate on value-added products for achieving the desired level of export share in international trade.

This was observed in a high-level meeting chaired by Prime Minister Shaukat Aziz on Thursday to consider various factors responsible for slower than expected growth in the country's exports in the first nine months of the current financial year.

An official announcement issued here said that the ministry of commerce had made a detailed presentation to the prime minister, analysing the factors underlying the export performance during the current financial year.

The meeting was informed that from reports of reputed international consultants it emerged that the incentives regime available to the Pakistani exporters was at par with and in some cases even better than regional competitors.

In terms of various costs, like workers wages, electricity, gas and POL prices, container cost and price of cotton, Pakistan is cheaper as compared to most countries of the region.

Similarly, in industrial tariffs and long-term normal financing for exports, Pakistan is among the cheapest in the region. Pakistan is the only country that provides R&D at the time of export of textile products.

The prime minister observed that the need now was for all stakeholders, including the government, industry, labour and the trading community, to play their role in taking full advantage of opportunities available in export markets.

He emphasised the need for skill development programmes on a war footing to solve the problem of low productivity. Such skill development programmes were already being undertaken by the government, but needed to be intensified in partnership with the private sector.

He said that the government would continue to provide all necessary incentives to the private sector to help and encourage it to enhance the export of value-added products. He said there was an urgent need to find new markets and diversify exports as the regime of quotas has disappeared with globalisation.

Mr Aziz said that the signing of a FTA with China was a landmark development which needs to be leveraged by the private sector as it provides a huge market geographically contiguous to the country.

He said that government was making efforts to concluded FTAs with the US and the European Union.

http://www.dawn.com/2007/05/04/ebr1.htm

 

[Neo]

Friday, May 04, 2007

Country’s IT revenue crossed $2bn in ’05-06

ISLAMABAD: Pakistan’s total information technology industry revenue crossed two billion dollars in FY 05-06, while its total exports crossed one billion dollars in the same period, which was measured using a methodology developed by the WTO and the IMF that is also used by other countries like India in reporting the IT industry size.

Furthermore, growth in exports in each of the last three years has been around 50 percent, while the domestic market has grown at 33% per year, according to the study.

“The study shows that Pakistan is now on the world IT map and more international customers can feel comfortable in outsourcing work here,” said Ashraf Kapadia, President of the Pakistan Software House Association (PASHA).

These benchmarks were established following preliminary studies undertaken by the PSEB and have been fully endorsed by the PSEB board of directors.

More exhaustive studies in collaboration with the Gartner Group, State Bank of Pakistan and Statistics Division are underway.

“Though the IT industry has made significant strides over the last few years, we are future-focused on the immense potential that yet needs to be realised, said Yusuf Hussain PSEB MD. He further said: “We must work hard with other government departments to continue to support the IT industry in areas like human capital development, it park construction and marketing.”

http://www.dailytimes.com.pk/default.asp?page=2007\05\04\story_4-5-2007_pg5_8