Pakistan Economy - News & Updates - Archive

[Neo]

BMW X5 to hit Pakistani roads soon​

KARACH: Deliveries of the new BMW X5, a car with powerful eight and six-cylinder engines, permanent all-wheel drive to Pakistan are expected in the current month. According to a press release issued on Monday, President and Chief Operating Officer for Dewan Motors Private Limited, Farooq Mustafa said, “The original BMW X5 created a brand-new segment and set the trend for spacious, luxurious, rough terrain vehicles.”

http://www.dailytimes.com.pk/default.asp?page=2007\07\03\story_3-7-2007_pg5_13

 

[Neo]

SPI-based inflation up 7.65 percent ​

ISLAMABAD (July 03 2007): The SPI-based inflation was up 7.65 percent at the closing week of financial year 2006-07 against the same period of last year affecting the lower income group. According to statistics released by the Federal Board of Statistic for the week ending June 28.

The Sensitive Price Indicator (SPI) stood at 7.65 percent against same period of last year and with 0.74 surge during the week it mounted to 154.75 from 153.62 of last week.

Increasing prices of essential commodities have been hitting hard the low-income groups, as inflation was 9.45 percent for the group earning Rs 3000 against 5.85 percent for those having income above Rs 12,000.

The inflation was 9.35 percent during the week under review for the income group of between Rs 3000 to 5000 and 8.58 for those having income between Rs 5000 to 12,000. The city-wise prices of 53 essential commodities pertaining to 17 urban centres showed an upsurge in prices of 15 items against decrease in prices of 11 whereas the prices remained unchanged for 27 items.

The statistics showed that the prices of tomatoes, eggs, gram, pulses, onion, chicken, cigarettes, wheat flour, wheat, masoor pulses washed, rice basmati broken, rice irri, red chillies, firewood, mustard oil and cooked dal plate increased.

However, the prices of garlic, LPG, potatoes, moong pulse washed, salt powdered, gur, vegetable ghee loose, mash pulse washed sugar and milk powder Nido declined. The tomatoes price increased by 45.77 percent, eggs 14.74 percent, gram pulse washed 2.20 percent, onion 2.02 percent, and chicken farm 1.45 percent. The prices of 19 items increased to double digits compared to last year.

http://www.brecorder.com/index.php?id=586045&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Export target missed by over $1 billion in fiscal year 2007 ​

KARACHI (July 03 2007): The country's exports have missed the target of $18.6 billion set for the fiscal 2006-07 by over 6 percent, sources in the commerce ministry told Business Recorder.

According to the unconfirmed figures, the exports stood at $17.5 billion for the 12-month period ie July-June 2006-07 as against $15.48 billion during July-May 2006-07 thus registering a 26.25 percent growth on MoM basis.

The exports in June grew by over 26 percent to $2.02 billion against $1.6 billion in May taking the export figure to $17.5 billion for the year. The trade deficit for the year could not be ascertained, as the trade figures are in the process of compilation that would take another four weeks.

Trade analysts said that under performance of the textile sector coupled with under-target exports of rice, surgical items, footwears, fruits, gems & jewellery and fisheries remained the reasons for the missing of export target, which was quite realistic.They said the Trade Policy 2006-07 had emphasised that due to attention would be accorded to non-traditional export items like gems & jewellery and engineering goods etc, but the idea was not properly worked out and was not properly implemented.

Analysts said that non-traditional export items particularly engineering products had a big international market and had a lot of potential, which should be tapped, adding the Engineering Development Board (EDB) and the Trade Development Authority of Pakistan should explore the markets for these products.

It may be mentioned here that at present, the engineering item exports stands at around $300 million and had due attention given to the sector it would have crossed $1 billion mark.

The government projected import bill at $28 billion for the current financial year whereas the export target was set at $18.6 billion for the whole year, which translates into $9.4 billion trade deficit. Although the import figures, at present, are not available, the signs of a trade deficit around $14 billion are visible, which would have been highest ever in the history of the country.

The all-time high trade deficit is causing adverse impact on the current account deficit and the balance of payments as well as on the health of the rupee, however, the increased foreign direct investment and growth in remittances is helping make up the losses to some extent caused by the widening trade deficit. It may be mentioned here that the services exports for the year ending June 30, 2007 stood at $2.5 billion.

http://www.brecorder.com/index.php?id=586080&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Development of southern Punjab high priority: chief minister ​

MULTAN (July 03 2007): Punjab Chief Minister, Chaudhry Pervaiz Elahi has said that government is attaching top priority to the development of Southern Punjab and other backward areas and huge funds are being spent for this purpose.

He said that a cardiology institute is being completed with an estimated cost of Rs 1.2 billion while huge funds were allocated for the promotion of education and health sectors, water supply and sanitation schemes, infrastructure development and other projects.

He said that a number of development schemes have been completed in the area while work is in progress speedily on the others. He expressed these views while talking to members of Punjab Assembly and National Assembly of Southern Punjab who met the CM at Chief Minister's Secretariat, here on Sunday.

The CM said that education sector reforms programme is being implemented successfully in Multan as in other districts of the province due to which better academic facilities have become available to students. He said that an amount of Rs 4 billion would be spent on the establishment of University of Engineering and Technology Multan, while a home economic college, a university for women would also be established for the promotion of education in the area and a number of schools have been upgraded while several vocational institutes have also been established.

He said that in order to provide modern health facilities to the masses, an amount of Rs 12 crore is being spent under Health Sector Reforms Programme for the up-gradation of health centers. Similarly, he said, special attention is being paid to the improvement of road network in the area.

The delegation said that a record number of development projects have been executed by the government during the last four and half years. He said that the funds provided by the government for the uplift of Multan division are unprecedented.

They lauded the role of Chief Minister Punjab for the development of the area. They said that due to rapid development process in Multan, popularity of Pakistan Muslim League has grown tremendously in the area and public confidence has increased in the leadership of the party.

http://www.brecorder.com/index.php?id=586105&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Modernising sports goods industry: Smeda plans to set up product development centre ​

SIALKOT (July 03 2007): The Small and Medium Enterprise Development Authority (Smeda) has evolved a strategy for tracking sports goods industry on modern and scientific lines. The Smeda has adopted this approach in close consultation with all the stakeholders. The concept of this programme is to enable the sports goods sector to deal with emerging technology and produce high value added products.

Official sources told Business Recorder here on Sunday that the step was being taken for ensuring the entry of sports goods industry into largest segment of sports goods exports. Presently 55 percent of the sports goods are composite based.

In this regard Smeda has prepared a well-knitted plan for setting up a product development centre for composite in Sialkot at a cost of Rs 443.4250 million and development work on this project would be undertaken shortly.

Regular functioning of the product development centre would extend services like product testing (physical and chemical), provide skilled workforce to the sector, enhance productivity by providing technical support services to new and existing industrial units, help develop imported machinery locally through reverse engineering and facilitate in increasing exports of composite based sports goods.

The globally Sialkot is identified as a producer of quality products in sports goods, surgical instruments, leather garments, gloves & accessories, sportswear and musical instruments. Around 200,000 plus people are engaged directly or indirectly with export activities and annual export earnings of the city hover around 900 million dollars of which the share of sports goods sector is 350 million dollars per annum.

In sports goods industry where new materials had supplanted the old includes tennis, archery, skiing, boating, golf and fishing. The composites had replaced previous materials and eventually declined in price to widely affordable level. In the production of tennis rackets the wood was only material for frames had totally been changed into new high performance materials.

The trend of tubular steel and aluminium rackets took place in 1970s and these were lighter than wood-made tennis rackets as well as unaffected by the weather.

But within next six years composite rackets became available and wood virtually disappeared and at present 95 percent of all tennis rackets are being produced with composite materials. The other sports goods equipment like field, roller and ice hockey sticks and ice skates, golf clubs, fishing rods and tackles base bats and billiard cues have been converted into composite materials.

The proposed product development centre will prepare the local industry to aggressively enter into the international market of composite based sports items. The sports sector already enjoying strong linkages with international sports goods brands, which would help in marketing of Pakistan made products and help in regaining its position in the global market.

The centre will provide technical know-how, trained labour force, testing facilities, prototype development and mold making services to the sports goods sector as well as it will act as for diversification into composite based products like auto parts, home appliances and surgical instruments etc, the sources added.

It may be mentioned that the sports goods was declared as priority sector in 2004 by the federal Ministry of Industries, Production & Special Initiatives in 2004 and Smeda was given this task of developing a coherent strategy for its development.

http://www.brecorder.com/index.php?id=586139&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

IBRD to provide $79 million to increase Karachi port productivity ​

FAISALABAD (July 03 2007): International Bank for Reconstruction and Development will provide $79 million to increase productivity of the Karachi port by reducing Karachi Dock Labour Board-related labour costs; and to facilitate the re-entry of former KDLB registered workers and employees into the labour market.

A Project report said the World Bank, with the support of Pakistan Government recently completed a major study titled "Pakistan: Labour Market Study - Regulation, Job Creation, and Skills Formation", which has informed the development of the KDLB.

Labour issues at the Karachi Port Trust reflect similar challenges faced by the country as a whole. The report shows that the rate of job creation observed in Pakistan at the moment is far below what it should be, partly because of the excessive regulatory burden existing labour laws imposed on businesses.

It also offers evidence that, beyond reducing job creation, excessive regulation tends to aggravate the shortage of industrial skills by discouraging firms from sponsoring on-the-job training schemes.

The report mentioned that the transport system in Pakistan generates high economic losses due to a mismatch between supply and demand for transport services and supporting infrastructure. Poor performance of the trade logistics sector significantly reduces the competitiveness of the actual and potential export industries. It is estimated that overall the inadequate and inefficient transport and trade logistics system is imposing a cost to the economy equivalent to 4 to 6 percent of the GDP.

WB experts said the ports in Pakistan recently started to take measures to improve their performance. They were contributing to the overall poor performance and high costs of the transport sector. Port costs were high as compared to other ports in the region.

Container handling charges in the port of Karachi were 1.5 to 3 times more than the charges in Colombo (Sri Lanka) or in the port of Nhava Sheva near Mumbai in India. Ship dues per ship calls were five times more than those ports in Sri Lanka and Hong Kong and 20 percent higher than in Nhava Sheva. Port productivity was also low with an average ratio of 55 containers handled per ship berth per hour as compared to a range between 65 and 100 in the three regional ports.

The report said the KDLB scheme was created in 1973 to protect the rights of dock workers by registering them and providing regular work on a rotational basis. Previously dock workers in the port of Karachi were employed on a casual basis without employment contract and access to social services (health insurance and pension).

When KDLB started its activities, more than twice the requirement of dock workers registered. Since then, increased containerisation and other forms of mechanised handling have greatly reduced the need for manual workers.

The majority of dock workers currently registered by KLDB has low education and do not have the skills for modern cargo handling operations, having been trained for outdated general cargo manual operations. Containers represent now more than two third of Karachi port's dry cargo.

Since most KDLB registered dock workers do not have the necessary skills, stevedoring companies have to employ other workers from the open market for mechanised operations that require skills. Nevertheless, under the KDLB scheme, they are forced to pay for KDLB-provided teams, which are scheduled for work, but not participating to and in fact often not physically present on port operations.

In addition, the number of dock workers in KDLB is also higher than requirement.

Salaries of KDLB registered dock workers are much higher than salaries of other dock workers employed by stevedores from the open market. The gross wage costs, including wages, overtime, special allowances and social services per KDLB registered worker per month is about Rs 31,000, which is five times high than the average wage per skilled worker in the Karachi region, they pointed out.

Currently 3,272 dock workers are registered by KDLB, down from about 9,000 when KDLB was created. KDLB also employs 155 permanent staff and officers. When dock workers registered with KDLB are not actually scheduled for work, they receive a minimum wage allowance and social services financed by a Cess.

The Cess is paid for 52 percent by shipping agents, 30 percent by the Karachi Port Trust (KPT) and 18 percent by stevedores. On average, taking into account the four categories of dock workers' have been employed in the port of Karachi, the KDLB scheme results in employing about twice the number of workers than what is actually required.

Therefore, the cost of using KDLB workers is 8 times high than the normal cost, which is estimated to be around $1.4 million annually. Closing KDLB would then save about $9.6 million per year to the stevedores and to the economy. At project completion, it is hoped that the cost per TEU of using the port is reduced by 7 percent in six months after the project effectiveness.

It said the proposed project is one of the components of the package developed by the World Bank in support of the National Trade Corridor Improvement Programme (NTCIP). To address the key constraints faced by the transport and trade logistics sectors, the government has decided to launch a major initiative, targeted at improving the National Trade Corridor, which links Pakistan's major ports in the South with the country's major cities and trade corridors to the North.

Together, the ports, road and railways along this corridor handle 95 percent of the country's external trade and 65 percent of total land freight.

In support of the proposed project, the Bank brings its extensive experience of similar operations. The government is seeking to benefit from this experience as other retrenchment plans executed in the past either in KDLB or other government agencies had significant social consequences, having not been designed to mitigate these impacts.

http://www.brecorder.com/index.php?id=586104&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Radical reforms needed to achieve $45bn exports​

ISLAMABAD, July 2: Pakistan will have to undertake aggressive tariff reforms, seek more market access and diversify its export base for reaching the ambitious export target of $45 billion by the year 2013.

Currently, the exports stand at $17 billion and for achieving the target in six years, the country is required to witness 16 per cent growth in its annual exports.

Pakistan’s Ambassador to WTO Dr Manzoor Ahmad in his study “Achieving $45 billion export target by 2013 - The way forward for Pakistan,” observed that three key issues - tariff reforms, market access and diversification of export - are of paramount importance to trade policy to reach the ambitious target.

Achieving this target will undoubtedly be a major boost, but looking at it from another perspective, it would still be well below the current figures for countries of comparable size – Brazil’s $138 billion, Indonesia’s $102 billion, Turkey’s $85 billion and South Africa’s $59 billion.

Pakistan started to liberalise its tariffs in early 1990s in order to integrate its economy with the rest of the world. The liberalisation was accelerated in 1997, but it was still a stop-and-go approach.

Till 2001, some 86 import substitution programmes were in force. During 2001 and 2002, however, the pace of reforms intensified.

Mr Manzoor stated that further tariff reforms would have to be carried out, if the country’s exports were to grow.

“Several studies have shown that reduction in tariff boosts exports since an implicit tax on exports is reduced. If one were to interpolate the results of a 2006 study by IMF’s Stephen Tokarick, one can conclude that by removing its import tariffs, Pakistan could achieve a 16 per cent increase in exports, whereas the increase would be only 11 per cent if developed countries removed all their tariffs on imports from Pakistan”.

For its internal tariff reforms the best way is to benchmark against a group of successful developing countries like Asean and reach that target. India has been working towards achieving that target for the last five years and is gradually closing the gap, he observed.

Next to tariff reforms, he said the most important factor for boosting exports was access to target markets. Whenever this access became easier, Pakistan’s exports jumped as a result.

The country’s export of textile and clothing to the EU rose by 23pc in 2003 and 18pc in 2004 due to preferential market access. Later, when the concession was withdrawn in 2005, the decrease of nine per cent in exports was just as remarkable.

Also in 2002, all restrictions on bilateral trade with Afghanistan were removed just when the reconstruction work was starting there. Exports to Afghanistan surged to $1.2 billion by 2006, compared to just $168 million in 2001.

Afghanistan is now Pakistan’s third largest export market accounting for six per cent of the total exports.

In case of India, with which Pakistan shares 1,800-mile long border, the exports are less than $300 million or less than 1.8 per cent of our total, whereas the potential is huge.

The Indo-Pakistan Business Council estimated in 2005 that the trade level between the two countries could reach $10 billion annually within five years.

Opportunities provided by the Doha Round for improved market access would be substantial and Pakistan will have a better opportunity than many other countries to make use of those opportunities.

However, this will depend upon how well Pakistan is prepared to make use of those opportunities, he remarked.

Currently more than 75 per cent of Pakistan’s exports originate from cotton, rice, leather and sports goods and more than half of its exports go to seven countries. “Therefore, it has to diversify its product range and its export destinations,” he suggested.

The ambassador said one of the reasons why Pakistan’s exports were mostly concentrated in textiles and clothing was that it had never tried to diversify local-grown cotton beyond textiles from the beginning.

“Pakistan now has to provide a level-playing field to its other exports. Pakistan now has to look what other comparable countries are selling and try to make a place for itself as an exporter of dynamic products whose exports is growing at the fastest rate” he asserted.

As far as diversification of export destinations is concerned, Pakistan should concentrate on major economies. It needs to analyse why share of its exports to Japan, which is the world’s second largest economy, has fallen from 6.8 per cent or $500 million in 1992-93 to less than one per cent of the country’s exports or a mere $200 million.

He said that other major economies which accounted for less than one per cent of our exports included South Korea, Australia, Malaysia, Indonesia, Thailand, and Mexico, whose imports from other countries had been rising rather rapidly.

“These are all growing economies where tariff barriers are being reduced and labour costs are going up. Pakistan can make a niche for itself for labour-intensive goods where it has an edge because of abundant labour and lower costs of production,” he concluded.

http://www.dawn.com/2007/07/03/ebr4.htm

 

[Neo]

Revenue collection jumps to Rs840bn​

ISLAMABAD, July 2: Revenue collection increased to Rs840.6 billion during the outgoing fiscal year 2006-07, which is up by 17.8 per cent from 2005-06’s collection of Rs713.4 billion.

According to provisional figures released on Monday, direct taxes recorded an unprecedented growth of 46 per cent, and came to the rescue of the tax department in achieving the overall tax collection target of Rs835 billion set for the outgoing fiscal year.

Two other leading indirect taxes — customs and sales tax — even remained short of the downward revised target indicating a dismal performance during the year under review.

The officials said it was because of decline in dutiable imports.

It was revealed that revenue collection under the head of direct taxes reached Rs329.7 billion, which is even higher by Rs11.7 billion from the upwardly revised target of Rs318 billion.

The share of direct taxes reached 39 per cent during the outgoing fiscal year 2006-07 as against 30 per cent in the previous year.

This will be the first year in country’s history that income and corporate have become leading tax earners, which is a positive development.

Oil and gas, banking and telecom sectors maintained a vibrant growth which emerged as leading revenue spinners for direct taxes and indirect taxes.

The sales tax collection remained short of the downward revised target by Rs2.205 billion as revenue raised under this head reached Rs308.795 billion during 2006-07 as against the downward revised target of Rs311 billion set for the same period. However, it recorded a growth of 4.7 per cent over last year’s collection of Rs294.799 billion.

The FBR attributed the decline in growth of sales tax to negative growth in imports.

It was projected that during the outgoing fiscal year, overall imports and dutiable imports will grow by 15pc. However, the growth recorded in imports was only nine per cent in total imports and a decline in dutiable imports by four per cent.The sales tax at the domestic stage was affected by extra payment of refund to power and textile sectors, which were withheld in the previous year.

The customs duty collection also remained short of target by Rs1.884 billion as it reached Rs132.116 billion as against the downward revised target of Rs134 billion during the outgoing fiscal year. However, the customs duty collection also recorded a negative growth of 4.5 per cent during the year under review in comparison with last year’s collection of Rs156.815 billion.

The same reasons were quoted for the decline under this head, which were made responsible for the low growth in sales tax collection.

The federal excise duty has reached Rs70.021 billion during the outgoing fiscal year as against the upward revised target of Rs72 billion, indicating a shortfall of Rs1.979 billion. However, the excise duty recorded a hefty growth of 26.7 per cent during the year as against Rs55.273 billion collected during the same period last year.

http://www.dawn.com/2007/07/03/ebr8.htm

 

[niaz]

Let us be realistic;our exports were stagnating around $9 -10 billion for the last 10 years or so. It is only after the turn around starting 2001 that the exports started increasing. Wonder if every one realizes as to how many billions will be required for investment in machinery and manpower resources to increase the exports by 2.5 times within next 6 years??? How are we going to finance it??. As it is, we have a trade deficit in excess of $ 10-billion. Would we have enough funds to generate sufficient surplus production for achieving this target of exports in a competetive world??

Our only salvation lies in the IT sector. This is only sector which requires investment in the improvement of quality of manpower rather than in plant and machinery. Our current exports in the IT sector are a meagre $100-million.

 

[Neo]

Pak-UK trade to grow ​

LAHORE: Bilateral trade between the United Kingdom and Pakistan would touch new heights with a huge investment in the near future in a number of sectors including housing, agriculture, energy generation, hotels, fisheries and minerals.

This was revealed by Kashif Younas Mehar, head of a 15-member Lahore Chamber of Commerce and Industry’s delegation that visited the UK.

He said the UK investor trust in Pakistan had been boosted by persistent efforts of the LCCI and continuous liaison for the last three years.

He said the visit had further strengthened the MoUs already signed between the LCCI and Pak-UK Chamber of Commerce.

He said he informed the UK businessmen and expatriate Pakistanis that there was a great scope in the steel sector wherein one could make investment in hot-rolled coils and cold-rolled coils, while same was the case with extraction of iron and copper ores.

Hanzala Malik, Councillor Glasgow City Council, expressed concern over discontinuation of PIA flights to Glasgow, saying it would dampen businesses to a large extent and stressed that measures be undertaken for immediate resumption of PIA flights.

Malik also urged the LCCI delegation to do the needful for one-window operations in Pakistan as bureaucratic hurdles kept discouraging investor activity there.

At a meeting in Greater Manchester Chamber of Commerce and Industry, both sides identified sectors of mutual interest and decided to further cement ties between Pakistan and the UK.

Brian Cleasby, the Lord Mayor of Leeds, while speaking at a reception arranged by the Leeds Chamber of Commerce and Industry in honour of the LCCI delegation, said “Pakistan is going through an exciting period. The success of Pakistan’s reform agenda is a hidden secret which needs to be publicised more.”

He assured the participants that the British government would continue to facilitate Pakistani businessmen in the promotion of trade between the two countries.

Mehar said that Pakistan was energy-deficient and could not sustain a 7.8 per cent GDP growth rate without first tackling its energy demands. He urged the British government to provide civilian nuclear technology to Pakistan and also allow its companies to invest in energy projects in designated industrial sectors.

The UK is the third largest investor in Pakistan. British investment in Pakistan stands at $224.5 million, which is six per cent of total foreign investment in Pakistan in 2005-06.

About 70 British multinationals have invested in various sectors such as food, tobacco and cigarettes, textiles, chemicals, petroleum refining, oil and gas, pharmaceuticals, cosmetics, cement, power generation, communications, financial services, etc.

http://www.thenews.com.pk/daily_detail.asp?id=63108

 

[Neo]

Poultry farms in Sindh suffer loss of Rs670m: Rains, storms​

KARACHI, July 3: The Pakistan Poultry Association (PPA) has finally come out with exact financial loss of Rs670 million from the killing of over 3.0 to 3.2 million live birds and chicks owing to scorching heat, rains and storms in Karachi and other parts of Sindh. However, the wholesalers’ body has expressed reservations on the figures.

Speaking at a press conference at Karachi Press Club, PPA Sindh circle chairman Mohamamd Sohail Chaudhry and convenor press and publication Abdul Maroof Siddiqui said that the mortality of 300,000 layer birds caused a loss of Rs60.36 million, and there was another loss of over Rs330 million due to death of over 3.26 million broiler birds.

The industry people suffered a loss of Rs280 million owing to destruction of poultry sheds.

They demanded of the government to provide a mark-up free loan of Rs1 million to poultry farmers so that they can restart their businesses.

They said the private sector had invested Rs125 billion and the growth in poultry sector had also kept the rate of beef and mutton stable to some extent.

Meanwhile, Maroof Siddiqui told Dawn that the surviving poultry farmers are now releasing their stocks to avert further losses in case rains again hit their farms. As a result, the price at retail stage is stable at Rs62 per kg. Even farmers are not getting poultry feed at their farms in Sindh due to bad road conditions after rains. There are also problems of power failures and lack of water availability.

“Currently, Karachi is consuming 450,000 to 500,000 birds daily as compared to normal consumption of 600,000 to 700,000 birds,” he said while speaking about daily consumption of birds.

The PPA office-bearers pointed out that land mafia was grabbing land between the boundary walls of poultry farms, and also urged the Sindh government to extend the period of lease for another 30 years.

According to Economic Survey 2006-2007, production of commercial broiler is estimated at 316 million in 2006-2007 as compared to 304 million in 2005-2006, while layer bird production in 2006-2007 is estimated at 23.8 million as compared to 23.2 million birds in 2005-2006.

Poultry meat production in 2006-2007 was 480,000 tons as compared to 463,000 tons in 2005-2006.

An estimated 5.2 billion eggs were produced in 2006-2007 as compared to 5.1 billion in 2005-2006.

Meanwhile, general secretary of Karachi Wholesalers’ Poultry Association (KWPA), Kamal Akhtar Siddiqui, said that the PPA office-bearers do not know the exact figures.

He said he had already stated that the industry had suffered a loss of Rs1 billion during rains and storm.

He said around 1.5 million live birds and chicks died before and after storm/rains and not over three million. PPA’s assessment of slaughtering of 600,000-700,000 birds only in Karachi is also wrong and the correct figure is 450,000 birds daily.

http://www.dawn.com/2007/07/04/ebr1.htm

 

[Neo]

Wednesday, July 04, 2007

Foreign firm to start natural gas production ​

KARACHI: The government has allowed Rally Energy Corporation of USA to start natural gas production at its Salsabil Field project in the country.

A report issued on Tuesday said that approval has been given for the period up to November 30, 2007. The corporation will feed natural gas production into the Sui northern gas pipeline system.

Initial production from one well was measured at 9.5 million cubic feet per day, the company said and is expected to rise to 20 million cubic feet per day.

Rally expects an eventual 1,000 barrels of oil equivalent net to the company when a second well is connected to the system later this week, it said.

“This is a significant event in Rally’s rapid growth where we now have a second source of revenue that is sufficient to fund our ongoing development and exploration activities in Pakistan,” Chief Executive Officer of the company, Abby Badwi said. Rally is based in Calgary but mainly runs operations in Egypt, where it has a full interest in the Issaran Oilfield, and also in Pakistan where it holds 30 percent stake in the Safed Koh block.

http://www.dailytimes.com.pk/default.asp?page=2007\07\04\story_4-7-2007_pg5_3

 

[Neo]

Cement exports up by 112 percent: local and regional factors behind robust growth ​

KARACHI (July 05 2007): Country's cement exports have witnessed a strong and healthy growth of 112 percent to an all-time high level of 3.188 million tonnes during the 2006-07 fiscal in the wake of rising international demand and a high increase in local utilisation, industry sources said.

"Regional cement shortages played a key role in achieving the landmark cement export milestone during the last fiscal year, while enhanced production of the local cement factories is another prominent reason behind this huge increase of 112 percent in exports," they added.

They said that during the last fiscal year, strong external demands from the Gulf countries had witnessed pushed the companies to utilise their maximum capacity to meet international demand. Statistics made available from All Pakistan Cement Manufacturers Association (APCMA) shows that cement export registered a robust increase of 1,683,265 tonne during the last fiscal (July-June) and it has touched a new mark of 3,188,424 tonnes against 15,050,159- tonne exports of the same period of the 2005-06 fiscal.

Over all cement dispatches have also been increased by 31.56 percent to all time high level of 2,422,2702 tonnes during the last fiscal year as compared to 18,412,297 tonnes during the 2005-06 fiscal year, depicting a raise of 5,810,405-tonne tons during July-April of current fiscal.

To meet the international and local demand, cement companies' have used maximum capacity utilisation during the 2006-07 fiscal year, which stood at 80 percent, said the sources. Over all cement dispatches also witnessed an increase of 19 percent during June 2007, reaching 2,225,630-tonne mark as compared to 1,867,244 tonnes in June 2006.

During the last month, cement export stood at 392,372 tonnes as compared to 144,544 tonnes during June 2006, denoting an upsurge of 171 percent during June 2007. Local dispatches have gone up by six percent to 1,833,258 tonnes during June 2007 as against 1,722,700 tonnes during the same period of last fiscal.

Cement industry's installed capacity has more than doubled during the last five years, which helped the industry touch all time high dispatches mark during the last fiscal year, industry sources said.

Low prices trend has witnessed in the domestic market, as the cement prices stood at Rs 280-300 per 50-kilogram bag during last July in the domestic market, while presently a 50-kilogram bag is available at Rs 210-225 in the southern region (Sindh and Balochistan) and Rs 180-210 per bag in the northern region.

Huge supply of cement against the low demand has decreased the prices in the local market and due to high competition, cement companies are decreasing their prices to capture the market, they said.

They said that the raise in the export had emerged after the government decisions regarding restoration of the duty drawback on cement exports, in which Central Board of Revenue (CBR) has allowed duty drawback at the rate of Rs 25.08 per tonne on export of cement through a notification. The duty drawback facility is effective since September 27, 2006.

http://www.brecorder.com/index.php?id=587123&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

FBR begins monitoring to achieve Rs 1.025 trillion revenue target ​

ISLAMABAD (July 05 2007): The Federal Board of Revenue (FBR) has started daily monitoring of customs duty collection on import of goods as part of its strategy to meet the Rs 1.025 trillion revenue collection target in 2007-08.

Sources told Business Recorder on Wednesday that the board-in-council meeting, chaired by FRB Chairman M. Abdullah Yusuf, directed the Member, Customs, to ensure proper monitoring of customs duty collection for improving sales tax and withholding tax amassing at the import stage.

The sales tax and withholding tax collection on imports would automatically improve through 24 hours monitoring of import consignments. Even customs duty collection was below target in 2006-07. Therefore, the department would have to remain vigilant in assessing duties and taxes on imports and exports in 2007-08.

Sources said that the board-in-council discussed threadbare the policy strategy to meet the target. The FBR has been making all-out efforts in the start of the new fiscal year to meet the Rs 1.025 trillion target. The initial estimates of direct taxes, sales tax, customs duty and federal excise duty (FED) have been prepared, but the same would be finalised after consulting relevant members. Some changes in taxation and relief measures for 2007-08 would also be taken into account before finalising quarter-wise break-up for new fiscal year.

The board-in-council also directed FBR Members to learn from the lapses and omissions of 2006-07 for maintaining growth momentum in the current year to surpass quarter-wise revenue targets. The Members were directed to keep in mind that the new fiscal year has started from July 1, 2007. Thus, the plan should be implemented from the start of 2007-08 to meet the target.

Sources said that the FBR Chairman directed the Member Customs to submit forthwith the report on the launching of post-clearance audit (PCA). If electronic PCA system needs some time, the project should be started manually, without delay he said. In the meeting, the idea of conducting audit of information technology (TI) projects launched under the reform process was also discussed.

Tax authorities directed the Member Human Resource Management to chalk out rules and regulations under Federal Board of Revenue Act, 2007 for implementation of the appeals process under Internal Job Posting (IJP).

The board-in-council rejected the new organisational structure of Facilitation and Taxpayer Education Wing (FATE) submitted by the communication consultant, which envisaged 25-30 more personnel to carry out the job effectively. CBR Member Human Resource Management (HRM) expressed some reservations over the implementation of the scheme. The board-in-council did not approve the communication policy submitted by the consultant. Sources said that the FBR Chairman directed the consultant to actively work on the project of Compliant Cell to facilitate taxpayers.

The Chief Executive of Pakistan Revenue Automation Limited (PRAL) gave a presentation on different IT related projects including 'One Customs'; Tax Management System (TMS); Sales Tax Management System (STMS); Nexus; Legal Affairs Management System and Audit Management System. Some FBR members inquired about security checks in these systems. Later, sweets were distributed for surpassing the revenue target for 2006-07.

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[Neo]

Indus Motor achieves 50,000 unit sales ​

KARACHI (July 05 2007): The Indus Motor Company (IMC) has achieved 50,000 unit sales for the year 2006-07. A statement here on Wednesday said that to mark the achievement, a ceremony was organised. The event was attended by senior management of IMC, its 35 dealerships and IMC employees.

Addressing the gathering on the occasion, IMC Chief Executive Officer, Parvez Ghias, congratulated all on achieving this historic milestone which, he added, would not have been possible without the support of stakeholders, particularly the joint venture partners TMC and TTC, IMC dealers, vendors, suppliers, employees and the customers.

The occasion was commemorated by the chairman, CEO and dealer principals jointly pressing the button to print the 50,000th invoice in full view of the participants.

The statement said that this milestone is proof of IMC's commitment to meeting ever-increasing demand for automobiles in Pakistan. IMC also received the "Vehicle Sales Record Award" by Toyota Tsusho Corporation earlier this year. At the time, Junzo Shimizu, President TTC said, 'Indus Motor Company will continue to expand capacity by enhancing investment in current production facilities as well as consider setting up an additional plant.

The automobile industry has a key role to play in increasing employment and transfer in a technology while being a major contributor in the growth of the engineering sector.

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