Pakistan Economy - News & Updates - Archive

[Neo]

Corporate debt market touches Rs50bn mark​

KARACHI, June 18: The corporate debt market, with an addition of Rs11.6 billion during the current fiscal year, has reached Rs50 billion mark, but is mostly dominated by commercial banks.

Bankers said Rs50 billion corporate debt market, created through the issuance of term finance certificates (TFCs), was much below the size of the corporate sector and far below than the Indian debt market.

Ten new TFCs worth Rs10.65 billion were issued during the current financial year, while last year, nine TFCs worth Rs10.4bn were issued. The total outstanding market of TFCs in Pakistan has reached Rs50 billion.

“The rate of return on these TFCs was 1.50 per cent to 2.75 per cent over six- month KIBOR while three TFCs were issued by the commercial banks,” said Mohammad Imran, an analyst at the First Capital Equities.

The State Bank has been emphasising on the depth of the secondary debt market which could play a vital role in the growth of the financial sector. Though the financial sector’s growth boosted during the last four years, the debt market was still not reflecting the growth of the financial sector, as well as the rate of economic growth of the country.

As per data of June 9, listed TFC market is only 2.2 per cent of total commercial bank advances. Advances grew sharply during the last five years. Scheduled banks’ total advances, which were just Rs970 billion in June 2002, reached Rs2,127 billion in June 2006, and further moved to touch the figure of Rs2,358 billion till February 2007.

A similar picture emerges when the volume of TFCs is compared with the boost in the Karachi Stock Exchange. The comparison shows that the TFC volume is only 1.3pc of the total market capitalisation of the KSE.

Credit growth in the private sector also took a sharp jump during the last four years.

“A lot of potential exists to deepen the debt market and more TFCs are expected to come in the next financial year,” said Imran.

Three new companies -- Faysal Bank limited, First National Equities and Shah Murad Sugar Mills -- plan to float their TFCs in FY 2008.

During FY05, seven TFCs were issued by the commercial banks, out of 14. Similarly, in FY06, out of nine, three TFCs were issued by banks. This trend continued in FY07, as of the 10 TFCs, banks issued three, and analysts believe that in the financial year 2008 also, banks will continue to issue TFCs.

“As these TFCs count in tier 2 capital of the bank for the purpose of capital adequacy and the banks which are facing problem in maintaining capital adequacy, above eight per cent (prudential requirement) are likely to issue TFCs,” said Imran.The Allied Bank was the highest issuer of TFCs which sold TFCs worth Rs2.5 billion in December 2006. United Bank issued TFCs worth Rs2 billion, Bank Al-Habib issued TFCs worth Rs1.5bn, Jehangir Siddiqui and Co worth Rs1.1 billion, while the Orix Leasing issued TFCs worth Rs2.5 billion while the listing is expected before the end of the current fiscal.

http://www.dawn.com/2007/06/19/ebr1.htm

 

[ARSENAL6]

ARe they developing their own cars and electronic stuff like japan ?

Cus thats where the money is beside Oil Neo ?

 

[Neo]

Pakistan’s Internet sector growing at 40 percent​

ISLAMABAD: The national Internet communication sector of Pakistan is growing at 40 percent, said speakers during the Cisco Systems Incorporation’s 10 years celebration of Net Academy in Pakistan on Tuesday.

The celebration had 300 educationists representing Cisco academies from all over Pakistan.

Pakistan’ telecom boom has created around 300,000 jobs in the ICT sector. However this has also created a huge demand for professional and capable ICT workforce that can expertly meet the new age requirements of these positions. To fill the shortage of skills, creative public private partnerships need to be implemented immediately.

Majority of the participants were women in education comprising of principals, vice principals and teachers, administrators, as well as students of various schools and colleges.

Muhammad Zaheer, Regional Director NAVTEC said, “NAVTEC is very pleased to partner with Cisco, in order to support its mandate of producing ICT trained professionals that would make Pakistan a globally competitive nation. A competent technology workforce is a dire need for our country and NAVTEC through Cisco’s Net Academy programme looks forward to training technology leaders of tomorrow – nationally and internationally.”

The Cisco Networking Academy Programme, established in 1997, teaches students networking and other information technology-related skills, preparing them for jobs as well as for higher education in engineering, computer science and related fields. Since its launch, the programme has grown to more than 11,000 academies in more than 150 countries with a curriculum taught in 11 different languages.

Dr. Qasim Sheikh, CEO of R&D Fund under Ministry of IT said, “Cisco commitment to increasing the impact of women on all aspects of technology in Pakistan is highly commendable. R&D fund strongly endorses such gender initiatives and is very pleased with the leadership being demonstrated.” He also said that the R&D fund was very keen on soliciting proposals for the development of ICT with the country and promoting this cause within the country. In this regard the fund would encourage universities and colleges as well as other national enterprises to approach the fund with concrete propositions for national development through information communication technologies. The R&D fund under the ministry of IT has been specifically launched to facilitate various country transformational initiatives in information communication technology.

http://www.dailytimes.com.pk/default.asp?page=2007\06\20\story_20-6-2007_pg5_9

 

[Neo]

Swede firm, KWSB to install 40 megawatts power plant in Dhabeji ​

KARACHI: June 20, 2007: Water and Sewerage Board (KWSB) under the public private partnership would install a 40 megawatts power plant in Dhabeji that would start production in two years.

A renowned company from Sweden will make an investment of 100 million US$ in this project. Representative of company Ansar Zafar called on Nazim Karachi Syed Mustafa Kamal in his office on Wednesday to brief him in detail about the project.

Managing Director of KWSB Ghulam Arif and other officers of water board were also present on this occasion.

The water board at present receives 21 mega watts of power for Dhabeji pumping station from KESC. After installation of this plant water board would be able to save the amount it spends on power head besides earning million of rupees by selling extra power.

The new plant will also prove economical as it would cost less than the existing KESC rates.

Nazim Syed Mustafa Kamal asked the company to accelerate work so that the plant could be installed in minimum possible time.

He also said that the installation of this plant would not only prove beneficial for water board but would also enhance the production of power by 40 mega watts in the city which at present most needed.

Brecorder

 

[Neo]

Sindh to have 400 megawatts power units ​

KARACHI (June 20 2007): A Memorandum of Understanding (MoU) will be signed between Sindh government and an Australian group for establishing 400 mw power generating units. Sources in CM House told Business Recorder that the agreement would be signed in the first week of July and Sindh Chief Minister Dr Arbab Rahim would be the witness to this agreement.

Sindh Mines and Mineral Department had asked the Australia-based company, Cougar Energy (Pvt) Limited, to go ahead with the project. The process is almost complete and Sindh government has endorsed the project.

After MoU signing, it would take about three to four years for the electricity to be generated. The company will use underground gasification technology in generating power. In this system, coal is burnt underground and the exertion of synthetic gases is utilised for power generation.

The company would produce electricity from Thar coal by applying latest method of underground gasification technology that has been working successfully in three countries of the world, source said.

The advantage of using this technology is that the cost of power generation is reduced and the main beneficiary is the end user. In this technology, coal mines are not required, thus saving huge amounts required for setting up power plants.

Cougar Energy is planning to start the work at Thar Block-III. It completed the feasibility study on this site some four years back, in collaboration with a Dubai-based company.

The company would initially produce 400 mw and later the capacity would be enhanced to about 1,000 mw. The investment layout could not be known. However, the spending on this project would be in phases.

http://www.brecorder.com/index.php?id=579869&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Import of pulses set to shrink this year​

KARACHI, June 19: The import of pulses is expected to fall to 260,000 tons during this calendar year, from 460,000 tons imported in the last year, due to improved local production of some pulses to meet the consumption demand.

It is estimated that the combine local production of pulses will be 907,000 tons as against the projected consumption demand of 1.16 million tons this year.

The demand for desi chic peas (black gram or kaala channa) is estimated to be 650,000 tons, while the local production stands at 700,000 tons, leaving a surplus of 50,000 tons. Last year, the production was just 300,000-350,000 tons.

An estimated 15,000 tons of green mung beans will be surplus this year as its production is estimated at 125,000 tons as against consumption of 110,000 tons.

Around 95,000 tons of lentils (masoor) are estimated to be imported this year due to low production of 25,000 tons, while demand stands at 120,000 tons.

According to a study carried out by the Karachi Wholesale Grocers Association (KWGA), some 55,000 tons of black matpe (mash) will be imported this year due to low production of 20,000 tons as against consumption of 75,000 tons.

Some 30,000 tons of kabuli chic peas will be brought from various countries to meet the consumption of 60,000 tons as compared with local production of 30,000 tons. Around 43,000 tons of Red kidney beans (lal lobia) will be imported to meet the local demand of 50,000 tons while domestic production is estimated at 7,000 tons.

Consumption of yellow peas/don peas is estimated at 100,000 tons which will be entirely imported due to negligible local production.

Desi chic peas accounts for 77 per cent of aggregate production and 57 per cent of aggregate consumption of pulses in the country, the KWGA study says. Green mung peas makes up for 14pc of production and nine per cent of consumption.

Lentils accounts for three per cent of production and 10 per cent of consumption. Black mapte makes up for two per cent of production and six per cent of consumption. Kabuli channa chic peas accounts for three per cent of production and five per cent of consumption.

This year the country has enough desi chic peas, previously it has been imported from Australia, Canada, Ethiopia and Tanzania. Green mung is imported from Australia, China and Myanmar, while import of kabuli channa is met from Myanmar, Iran, India, Turkey, Australia and Canada. Masoor arrives from Canada, Australia, India, Turkey, Nepal and Ethiopia. Black mapte has been procured mainly from Myanmar with little quantity from Thailand.

China is preferred as main supplier of kidney beans while imports are also managed from Ethiopia and Myanmar in case of short crop in China. Canada mostly supplies yellow peas while some quantities from France and Ukraine are also imported.

The study notes that pulses are marginal crops mainly grown in rain fed areas of Punjab, upper Sindh, Bannu and D.I. Khan with low input use levels.

The government last year had provided a subsidy of Rs8 per kg on import of one million tons of desi chic peas to meet the demand and stabilise the prices in local markets.

This year due to surplus production some 25,000 tons of desi chic peas had been exported to the Middle East and Gulf countries despite 35 per cent export duty on pulses. However, the government had put a ban on export of pulses in order to stabilise prices.

http://www.dawn.com/2007/06/20/ebr1.htm

 

[Neo]

Trade and commerce can enhance Pak-US relations: Kasuri ​

WASHINGTON (June 21 2007): Foreign Minister Khurshid Mahmood Kasuri met with US Secretary of Commerce Carlos Gutierrez on Wednesday and discussed the critical role, and urged that the commerce and trade could enhance the US-Pakistan relationship.

Khurshid Kasuri spoke of the tremendous potential that exists for further bolstering of bilateral commerce, and said the greater access for Pakistani products in the robust US market would further increase the volume of Pakistan's exports and help the country achieve and sustain higher economic growth. Pakistan triggered twice of its exports to the world in the last six years. The foreign minister is in Washington in continuation of high-level contacts between the United States and Pakistan to further reinforcement of their wide-ranging relationship.

The Commerce Secretary Gutierrez agreed that the two governments share the objective to strengthen the relationship and added the US attaches great importance to its trade and economic ties with Pakistan. The United States, he said, is appreciative of Pakistan's counter-terrorism efforts along the Afghan border.

They also discussed progress towards establishment of reconstruction opportunity zones, saying these would generate economic opportunities for people in disadvantaged areas. They also discussed progress towards concluding a bilateral investment treaty and free trade agreement between the two countries. The US-Pakistan relationship has expanded significantly in recent years to several areas including trade and economy. Pakistan's exports to the United States totalled $3.6 billion last year while its imports from the US were under $2 billion.

http://www.brecorder.com/index.php?id=580563&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Turkish traders invited to invest in AJK ​

ISLAMABAD (June 21 2007): Prime Minister of Azad Jammu and Kashmir (AJK) Sardar Attique Ahmed Khan on Wednesday invited Turkish industrialist for joint investment in quake hit areas of AJK.

Addressing at a function organised by MUSIAD (NGO) in Istanbul (Turkey), he said that Pakistan is a country with growing economy and there are huge scope for foreign investors to invest in different sectors.

He invited the top business persons of Turkish international industrialist conglomerate known as (MUSIAD) to visit AJK and explore the areas of investment on partnership basis, says a fax message received here. Sardar Attique said "Even the chronic political disputes get settled all over the world through the agency of big businesses and they are enjoying the strongest political clout globally".

Attique said that MUSIAD has accreditation with all global financial organisation like the World Bank, Asian Development Bank, Islamic Development Bank and other financial institutions. Prime Minister highlighted the vast scope for investment in hydro-power generation, tourism and infrastructure in AJK.

He thanked the MUSIAD for their medical services in the quake-hit areas of AJK and appreciated surprising industrial growth of Turkey. MUSIAD President, Dr Omar Bolog in his welcome address said that his organisation has its own foreign relations commission and training facilities for business men. He informed that MUSIAD has thus so far held over 300 international industrial fairs. Dr Omar Bolog assured MUSIAD's economic activities to expend in Pakistan and Azad Kashmir.

http://www.brecorder.com/index.php?id=580626&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Balochistan advised to find new income sources ​

KARACHI (June 21 2007): The government of Balochistan must find new and dependable sources of income to get rid of dependence on federal divisible pool for meeting its financial needs.

Balochistan Economic Forum (BEF), a private sector organisation, which has played an important role in attracting foreign investments into the province, gave this advice to the government of Balochistan on Wednesday on the eve of the provincial budget presentation in the Assembly on June 21.

The BEF said: "When the federal government's revenue collection was shrinking, due to the persistent pressure of the private sector for more and more incentives, the provincial government (of Balochistan) would have to find alternative sources to meet the growing needs of the socio-economic development in the province."

In a handy document containing suggestions, it said that with the rapidly changing economic scenario of the country, it would be difficult for the government to collect sufficient revenue through the old methods of revenue collection.

It was, therefore, necessary that Balochistan government widened its revenue base by encouraging direct foreign investments into the province and seeking international economic aid agencies' and multilateral institution's support for the socio-economic development of the province, with the cooperation of the federal government.

It said that the political leadership in Balochistan should strongly support foreign direct investment and, more importantly, also ensure that the message is reflected in the bureaucratic policies and procedures. The foreign investors would happily invest in Balochistan, provided they were reciprocated with the same business-like cooperation based on good bargains and prudent investments.

Foreign investors, who were willing to invest in Balochistan, were giving less importance to the extraordinary incentives offered to them. Instead, they found high returns, due to cheap labour and raw material available in the province, quite attractive.

The BEF said that all incentives and planning for industrialisation in the province was based on incentives and tax relief provided by the federal government for a certain period. In the case of Balochistan, the industrialists rolled off their units when the period of relief in taxation was over. The government should, therefore, mobilise all its energies and resources to gear up the industrialisation process in the province in order to cope with the existing economic problems.

"Active and aggressive private sector development is one opportunity of enormous importance to Balochistan in particular for accomplishment of economic development in the province. Provincial government should take appropriate steps on priority basis for the exploitation of natural resources, as the delay in effective use of resources will keep industrial activities in Balochistan at low profile."

Investment scenario in Balochistan, the BEF said, was bright because of foreign investors' interest in economic exploitation of abundant resources in mineral, fisheries, agriculture & livestock sectors, and the province could develop into a major trading and business centre, as its potential is now widely understood. It received more attention with the establishment of Economic Cooperation Organisation (ECO) as Balochistan provides a gateway to all ECO member countries, the BEF added.

In the opinion of BEF, the political leadership of Balochistan will have to wage an economic war on all possible fronts to bring economic and industrial revolution and improve the quality of life in the province. A political and professional initiative on the part of the provincial government at this stage would make it able to prepare sound economic foundation for the province. The need of the hour is to develop the necessary infrastructure with the help of international development and supporting agencies that could help boost the private sector investments in the region and to attract the foreign investors to explore and utilise the natural resources available in the province.

The economic assistance has become very competitive as more and more under-developed countries are approaching concerned institutions for support, as such a very skilled marketing strategy is required even to win over the required economic assistance during the present time, the BEF said.

http://www.brecorder.com/index.php?id=580564&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

12,500 megawatts plants start trial production by year-end ​

KARACHI (June 21 2007): Coal fired 12500 MW power plant near Thatta with Chinese collaboration will start trial production by the end of this year. This was stated by out-going commercial consular of China Zhao Qingmao at a meeting of Karachi Chamber of Commerce and Industry (KCCI) on Wednesday.

He said that the power plant has been established on BOT basis. The plant will start full-fledge power production by 2008. He said beside this, China National Machinery Company is negotiating with City District Government for establishing power units at different places in the city.

He said that the company is also negotiating to establish solar power plants in the country Incoming commercial consular of China Wang Qihui appreciated the fast ongoing development projects in the city and said that this indicates economic development of Pakistan.

Speaking on the occasion, former President KCCI, Siraj Kassim Teli said that Pakistan and China both enjoy best economic and cordial relation and added that people quote Pakistan-China relationship as example in the world.

http://www.brecorder.com/index.php?id=580594&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

India to push pipeline deal with Iran, Pakistan ​

NEW DELHI: India will push for an accord on a multi-billion dollar pipeline to transport gas from energy-rich Iran through Pakistan by mid-July, oil minister Murli Deora said Wednesday.

“On June 27th there is a bilateral meeting (between India and Pakistan) and on 28th and 29th there are trilateral meetings in New Delhi,” Deora told reporters, the Press Trust of India news agency reported. “We have to strike the deal by mid-July,” he said postponing an earlier date he had set for June. New Delhi and Islamabad will meet to sort out differences on transportation, tariff and transit fees first and then follow it up with discussions with Iran, Deora said.

Oil ministers of the three countries would then meet in July to ink the framework agreement on the 7.4 billion dollar pipeline, he said.

The 2,600-km (1,600-mile) pipeline from Iran’s giant South Pars gas field will initially carry around 60 million standard cubic metres per day of gas Talks on the proposal started in 1994, but have been stalled because of technical and commercial issues, apart from objections by the United States, which has locked horns with Tehran over its atomic programme.

http://www.thenews.com.pk/daily_detail.asp?id=61283

 

[Neo]

Economy may face mounting pressure: C/A gap, M2 growth​

KARACHI, June 20: The mounting inflationary pressure, widening current account deficit and very high monetary growth in the outgoing year may create serious problem for the government in the next fiscal year.

While the government is under serious criticism over slow export growth, the State Bank on Wednesday said that the current account deficit rose by 60 per cent during the eleven months of the outgoing fiscal year.

The current account deficit reached to $7.379 billion during the period under review compared to $4.602 billion in the corresponding period last year. The high current account deficit with poor export growth would put more pressure on the economy and the government would have to borrow more and sell state assets through privatization to meet the deficit in the next fiscal year.

The supply of excess money fuels inflation and has resulted in the high growth of monetary assets (M2) till June 9, 2007.

The target for the full year was 13.46 per cent while the M2 grew by over 16 per cent in just 11 months adding Rs89 billion into monetary assets.

The trade deficit reached to $9.124 billion while the balance of goods and services during the July-May 2006-07 stood at minus $13.401 billion.

The State Bank has been showing satisfaction over the monetary growth and putting responsibility on the high foreign inflows in the form of investment and remittances from the overseas Pakistanis.

However, analysts said the new budget 2007-08 carried huge spending plan which would ultimately push inflation further higher. The government has admitted that the main inflation for 2006-07 would remain at 8 per cent.

Analysts said the new budget of Rs1.9 trillion would again not allow the government to curtail the monetary growth and inflation.

The inflation, which is termed an additional tax, could not be brought down to 6.5 per cent in the outgoing fiscal. “There is no hope that it will start declining in the next fiscal year,” analysts added.

They observed the export sector performance had not been satisfactory in view of massive subsidies and packages announced for various sectors in the outgoing year. Despite the fact, the government in the new budget announced more incentives for export-oriented industries particularly for textile sector. But it did not take any concrete measures to curtail import bill, which is the real reason for high trade deficit.

http://www.dawn.com/2007/06/21/ebr2.htm

 

[Neo]

‘Electricity shortfall declines to 163MW’​

ISLAMABAD, June 20: The electricity shortfall in the country has declined to about 163MW mainly because of increase in hydel generation and fall in temperatures, an official statement said on Wednesday.

The power supply on Wednesday peaked at 13,335MW against a demand of 13,498MW, leaving a shortfall of 163MW, said the statement issued after a meeting presided over by Minister for Water and Power Liaqat Ali Jatoi.

The shortfall had surged to 2,900MW early last week when temperatures touched this year’s peak amid closure of more than two dozen units of the power stations. The demand was computed at 17,421 MW on Tuesday last against maximum supply of about 14,530MW.

The meeting was informed that the hydel generation has increased from 5,000MW to 5,600MW and thermal from 2,600 to 2,800MW, in addition to maximum generation by the independent power producers (IPPs).

The ministry said there was surplus capability of power generation on Monday and Tuesday as more units started production on the back of higher releases for irrigation and a simultaneous drop in temperatures. It said the load management in some parts of the country under Wapda system was only due to distribution problems.The meeting was also informed that Wapda was providing up to 800MW of electricity to the Karachi Electric Supply Corporation (KESC) in peak hours against its commitment of 600MW. The statement said there was no more load shedding in Karachi as its 180MW Bin Qasim plant was back in production from Tuesday but some areas might be facing some problems because of distribution issues, necessary repairs and overloading of transmission system.

THERMAL POWER PLANT: Meanwhile, Sapphire Electric Company Limited (SECL) on Wednesday announced to have achieved financial close for its 225MW thermal power plant to be situated at Muridke.

http://www.dawn.com/2007/06/21/top7.htm

 

[Neo]

Indus Motor raises car prices by Rs 54,000-80,000​

KARACHI: The Indus Motor Company Limited has raised prices of all its brands of cars by Rs 54,000 to Rs 80,000 throughout the country from Thursday (today) following the decision of the federal government to levy five percent withholding tax on locally manufactured vehicles.

The federal government, through the Finance Bill 2007, imposed a five percent withholding tax and one percent surcharge duty on all local car manufacturers.

An industry source said, “Pak Suzuki, Honda Atlas, and Dewan Farooq group are also considering to raise prices of their vehicles from six percent to l2 percent after the budget speech.”

Most of the authorised dealers said that they have closed bookings of the vehicles, as the companies are not ready to pay the withholding tax and surcharge from their own pockets.

Indus Motor increased the price of Toyota Corrolla XLi by Rs 54,000 to reach Rs 939,000, Corrolla GLi by Rs 69,000 to make it Rs 1.38 million, Corrolla 2.0D by Rs 63,000 to equate Rs 1.102 million, Corrolla 2.0D SE by Rs 68,000 to make it Rs 1.187 million, Corrolla 2.0D Saloon by Rs 78,000 to Rs 1.357 million, Toyota Altis IM by Rs 75,000 to Rs 1.379 million and Toyota Altis IA (t) by Rs 80,000 to Rs 1.399 million.

Similarly, the price of Daihatsu Cuore has been raised to Rs 4,61,000 from Rs 434,000 and Cuore AC CNG to Rs 503,000 from Rs 474,000. Cuore Automatic prices have gone to Rs 483,000 from Rs 464,000.

Industry sources said the own-money of all the makes of Toyota has gone up by Rs 50,000 to Rs 70,000. The own-money on most of the Toyota vehicles was almost zero before the budget announcement, they added.

H M Shahzad, chairman All Pakistan Motor Dealer Association (APMA) said, “the decision of the federal government to restrict auto dealers to import only three-year old cars has paralysed them to compete in the local market.”

“The automobile industries will now have a free-hand to raise the prices of cars on their will,” he added.

He demanded from the government to withdraw its decision of imposing three-year old vehicle condition and allow them to import upto five-year old vehicles.

“We were expecting the government would accept our demand to allow the import of vehicle without any transfer of residents or luggage and gift scheme, but the government has impost this three-year condition to support this raise in prices,” he said.

Car sales stood at 146,784 units during the first eleven months of the current fiscal, 4.79 percent above the last year’s sale of 140,071 units.

Large slides have been witnessed in the sales of Honda City and Honda Civic during the period mentioned. Sales of Honda City have fallen by 31.91 percent to 10,149 units from 14,907 units last year. Civic managed to attract only 5,936 buyers compared to 11,657 during the same period last year.

However, the sales of Daihatsu Cuore, Hyundai Santro, Toyota Corolla, Suzuki Cultus and Suzuki Alto have been rising.

http://www.dailytimes.com.pk/default.asp?page=2007\06\21\story_21-6-2007_pg5_1

 

[Introvert]

Pak furniture exports to be increased to $ 1 billion mark

Pakistan plans to increase its furniture exports to $ 1 billion by the year 2015 from the existing level of $ 15 million.

" Government's strategy to maximise the exports of non-traditional items like furniture will definitely help achieve this lofty but doable goal," Chairman of newly formed company, Furniture Pakistan, Shahbaz Aslam told a news conference here Saturday.

He said that the company, formed on the basis of public-private partnership, would spend Rs 590 million for the establishment of furniture training institute to produce skilled manpower.

He said, initially, training institutes would be established in Chiniot and Peshawar which would produce skilled manpower and while collaboration would be sought from Germany and Italy to impart training to the master trainers.

Out of the total funding of Rs 590 million, Rs 150 million were allocated for setting up of company whose board members would mainly be draw from the private sector.

Shahbaz said that Pakistan with only 3 percent area under forests is lagging behind other countries in the world which have 25 to 60 percent area under forest cover.To avoid further de-forestation, Pakistan would have to import wood for which government has reduced duty from 25 percent to 5 percent while machinery import has been made zero rated in the budget 2007-08.

To a question, he said that Middle East would be Pakistan's target market because the European standards are high to be met.

Speaking on the occasion, Dr. Warren Weinstein, Country Director J.E Austin Associates said that first ever timber testing laboratory would be established to test the quality of wooden furniture so that its credibility for the exports could be enhanced.

The company would develope its linkage with Germany, United Kingdom , Italy and other countries.

He appreciated the role of Pakistan Council of Scientific and Industrial Research (PCSIR) Laboratories in developing the industries in the country.

Zonal Chairman FPCCI, Azhar Saeed Butt and Sh. Muhammad Ali, also spoke on the occasion.

http://www.app.com.pk/en/index.php?option=com_content&task=view&id=11019&Itemid=49