Pakistan Economy - News & Updates - Archive

[Neo]

Punjab announces $3.25 billion reconstruction package ​

LAHORE (August 02 2007): The Punjab government will spend Rs 3.25 billion to repair and reconstruct 454 schemes of government offices and residences in the current fiscal year. The Punjab Minister for Communication and Works, Chaudhry Zaheer-ud-Din, said on Wednesday.

The government had sanctioned Rs 2.71 billion for 309 development schemes and additional Rs 53.25 billion for new schemes. While chairing a meeting, the minister announced to build 30 police stations and 247 highway patrolling posts in different districts, additional barracks and hostels for 2000 police employees.

He also informed the meeting about the government's plan to set up child protection institutes and 80 housing units for civil servants in Gujranwala and Sialkot as well. He also briefed the meeting regarding the plan to establish police points at the territorial margins of all districts so as to enable them check inter-district crime.

http://www.brecorder.com/index.php?id=599458&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Italy to recruit Pakistani manpower ​

KARACHI (August 02 2007): Italy is likely to recruit manpower from Pakistan soon for which process is being undertaken, an official of Overseas Employment Corporation (OEC) told Business Recorder on Wednesday. He said that as Italy had chalked out a plan to recruit manpower from the Asian countries, OEC had started negotiations to convince Italy to recruit larger share of manpower from Pakistan instead of other regions.

He said that OEC was established under the administration of Ministry of Labour, Manpower and Overseas Pakistanis, as a state-owned corporation to enhance recruitment of Pakistanis in other countries. Before the establishment of OEC, he said, although foreign employers were satisfied with the Pakistani manpower but still some cases of incompetent recruitment were reported. He maintained that OEC was safeguarding the interests of both the employer and the employee with moral principles and high ethical values.

"OEC has been able to make a remarkable leap in the field of manpower supply by sending over 127,000 workers to 53 different countries of the world", he added.

He apprised that technical manpower from Pakistan was well qualified and trained having diversified experience within the country and abroad in the fields of medicine, engineering, education, science, agriculture, manufacturing and shipping, etc.

He said that the Saudi ministry had recruited 130 doctors and 33 nurses who would leave Pakistan within a month besides that OEC had received requisition of professional and unskilled manpower from Middle East, he added. He further informed that 300 agricultural labours had been recruited by Sharjah ministry, while about 80 doctors and technicians would leave for Oman soon.

About EU and other Western countries he said that they avoid recruiting manpower from the Asian countries because they already have illegal immigrants who provide them cheap labour and are not entitled to legal benefits as well.

http://www.brecorder.com/index.php?id=599429&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

$10 billion industrial estate inaugurated ​

LAHORE (August 02 2007): Punjab Chief Minister Chaudhry Pervaiz Elahi inaugurating first phase of M-3 Industrial City Faisalabad at a local hotel said that with investment of $10 billion, largest industrial estate in the country was being established. He said the industrial estate was being made on 4500 acres. The CM also on the occasion announced establishing of IMAX theatre in Faisalabad.

The CM said the industrial estate would create job opportunities indirectly or directly for four million people. The CM disclosed that every year 7,00,000 new jobs were being created in the province.

Punjab CM said that with 528 acres were kept exclusive for Chinese investors in the industrial estate. He said separate zones were being established for foreign investors in the new industrial area. Pervaiz Elahi speaking about establishing of industrial units in the estate said that small and big 1,000 new industrial units would be established in M-3 Industrial City Faisalabad.

Punjab Chief Minster speaking about Sundar Industrial Estate on the occasion said it was an exemplary model of establishing of industrial estate in the Province. Punjab CM said that provincial government had allotted 13 kanal land in the heart of Faisalabad city for establishing of Faisalabad Institute of Textile and Fashion Design. He said land had also been provided in the City for construction of EXPO Centre.

http://www.brecorder.com/index.php?id=599386&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

KPT seeks $750 million loan to build bridge over channel ​

KARACHI (August 02 2007): The Karachi Port Trust (KPT) is looking for international lending companies as it plans to build a cable-stay bridge (CSB) over the channel at an estimated cost of $750 million. KPT Chairman stated this while talking to news persons at the "soft opening" of the KPT Interchange Flyover at Hino Chowk, Korangi Road here.

"We have a plan to build the largest ever bridge over the channel at the Karachi Port and it would cost us around $750 million for which we are in search of foreign lending companies", said the KPT chairman. He said the designing work for the 70-meter-high bridge was assigned to a German company and likely to be completed by December this year.

"This project (CSB) would be the first of its kind in Pakistan and would be completed within four years", said the KPT chairman. He said the bridge would have two causeways in which the first would connect Manora to Sands Pit Road while the other would extend further to pass over Western Backwaters.

The KPT chairman said the cable stay bridge would connect the Pakistan Deep Water Container Terminal (PDWCT), which it would construct at Keamari Groyne to the proposed Cargo Village to be developed in the vicinity of the Karachi Port.

"The bridge would connect the proposed deep water container terminal to the cargo village and Manora to the Clifton's Defence area and Sands Pit road", he said.

Earlier, the KPT chairman, after inaugurating the third tier of KPT Interchange Flyover told the journalists that this was the soft opening to ease traffic pressure on the road and the "final opening" would be performed after the completion of project which would take another month.

The flyover, he said, would interconnect Korangi Road, Shaheed-e-Millat Expressway, Korangi Industrial Area and Defence Housing Authority Phase VII Extension. He said the three-tiered intersections would facilitate the overgrowing traffic in the area without any interruption, adding that eventually the KPT will also provide decorative lighting, drainage facility, 67 feet monument, traffic sign, landscaping and beautification works for the public/commuters.

Elaborating on the salient features of Interchange, the chairman said, improvement was made in oval-shaped flyover by connecting the two-way flyover structure from Jam Sadique Bridge to Kala Pul, which has two-way traffic movement via two lanes on each direction having width of 19.2 meters, along with aesthetically Overpass design connecting Shaheed-e-Millat Expressway to Kala Pul at one end and on the other with Korangi Town with traffic movement in two lanes of 9.2 meters width respectively.

The total length of the flyover and overpass structures including ramp is 605 meters and 1,072 meters respectively, he told the media persons. The vice admiral, who also holds the chair of Karachi Dock Labour Board, said the Nespak had been appointed as Consultants for planning/designing and supervising the project while the Usmani Associates was awarded the contract to build the Interchange.

About other projects undertaken by the KPT, he said the Trust was planning three projects at the Karachi Port, which include construction of the PDWCT at Keamari Groyne, building a Cargo Village in the vicinity of the port and reconstruction and deepening of berths at the East Wharves.

On ground, he said, a 1947-foot-high Port Tower was under planning at Mai Kolachi Road to give the metropolis a commercial-cum-recreational center, while a Shopping District would also be developed on public-private partnership basis.

The project, which was commenced on December 1, 2004 and had cost the Trust Rs 606 million, was a continuation of the four other projects undertaken by the KPT under the President's Tameer-e-Karachi Program.

http://www.brecorder.com/index.php?id=599457&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

'Pakistan needs quantum jump in power generation' ​

LAHORE (August 02 2007): Water and Power Development Authority (Wapda) Chairman Tariq Hamid has said Pakistan needs a quantum jump in the power generation and this is possible only through construction of more than one mega dams catering to the increasing needs of the water shortages.

He was briefing the participants at the 87th National Management Course of National School of Public Policy in Lahore on Wednesday about the population growth and sedimentation of water reservoirs reducing the per capita availability of water in Pakistan to an alarming level.

"On the other hand, the consumption of electricity had been surging by about 10 percent per annum because of high economic growth. Only a series of mega projects could improve the situation vis-à-vis availability of water and generation of electricity. If the storage capacity is not enhanced considerably, Pakistan would become, God forbid, a drought-ridden country like Chad and Ethiopia," he said.

He said Wapda had undertaken feasibility studies of 10 new hydropower projects-Bunji, Oasu and Kohala with a generation capacity of more than 11,000 MW. These studies, including preparation of detailed engineering design and tender documents, would be ready by the year 2008-09, thus helping the government have several options to start generating low-cost hydropower electricity, he added.

He said at present, feasibility reports of the projects with generation capacity of 10,000 MW were in hand and the construction work could start when the federal government approved it.

Pakistan, by the kindness of nature, has the potential of generating 50,000 MW of hydropower. However, the existing capacity stands at only 6,463 MW, he added. The Chairman told the delegation that his government had spent Rs 21.23 billion to up-grade the power transmission system in 2004-07 to bring the line losses down by 3.3 percent from 24.8 to 21.5 percent. Various projects to improve and augment the transmission system, costing Rs 36.68 billion, are in progress and expected to be completed by 2009-10, he added.

He said that Rs 176.34 billion were paid to Independent Power Producers (IPPs) for purchase of electricity during the fiscal year 2006-07. He added that providing electricity on affordable rates to the customers was only possible with the induction of more generation of electricity through water resources. Earlier, the Chairman made a detailed deliberation on various development projects being executed by Wapda in the water and power sectors.

The delegation led by NSPP Rector/Dean Javed Hassan, included faculty member and participating officers. Members of Wapda Muhammad Mushtaq Chaudhry (Water), Fazal Ahmad Khan (Power) and Chaudhry Abdul Qadeer (Finance) and other senior Wapda officials were also present on the occasion.

http://www.brecorder.com/index.php?id=599387&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

KESC to install two 780 megawatts power plants, National Assembly body told ​

ISLAMABAD (August 02 2007): The KESC is planning to install two new power plants of 780MW to control power shortage in the metropolis. This was informed by Chief Executive Officer, KESC to the members of National Assembly's Standing Committee on Water and Power who met here on Wednesday under the chairmanship of Malik Ghulam Murtaza Maitla, MNA.

He said contracts had already been awarded in this regard, which were likely to be commissioned during the next two years to make up for the losses. Briefing the committee about the current acute load-shedding in Karachi, the Chief Executive Officer KESC informed that corporation was facing nearly 1,300 to 1,400 MW shortfall of electricity.

He also briefed the committee about existing power generation and distribution system of KESC. The committee met to consider the current acute load-shedding in Karachi, proposal for enhancing the electricity rates by Wapda and briefing on the destruction of Wapda installations by the recent cyclone in Sindh and Balochistan and the rehabilitation work done in those areas.

While taking up the reported enhancement in the electricity rates by Wapda in the country, the Chairman, Wapda briefed that the authority has been subsidising the tariff approved by Nepra thereby affording financial burden of Rs 48 billion for 2005-06.

He said that Nepra determined 33pc increase (DISCOs-wise) from 23rd February, 2007 but the government allowed only 10pc increase therefore, the tariff subsidy is worked out to be Rs 54 billion during 2006-07.

He informed that due to phenomenal increase in rates of oil and gas, the application for enhancement of tariff will be filed before Nepra after August, 2007.

The committee directed that electricity rate should not be increased. The representative of Hesco and Member Power Wapda also briefed the committee about destruction of Wapda infrastructure by the recent cyclone in Sindh and Balochistan and progress about their rehabilitation.

They briefed that due to recent heavy cyclone, infrastructure in Hesco and Qesco region sustained Rs 43.312 million and Rs 114.952 millions respectively. They also informed the committee that about all damages have been repaired or replaced.

The meeting was attended by MNAs Syed Muhammad Asghar Shah, Muhammad Sanaullah Khan Mastikhel, Chaudhry Mehdi Hassan Bhatti, Dewan Syed Jaffar Hussain Bokhari, Muhammad Pervez Qureshi, Maulana Muhammad Qasim, Mufti Ibrar Sultan and Ghalib Hussain Domki. Additional Secretary Water and Power, Chairman, Wapda other senior officials also attended the meeting.

http://www.brecorder.com/index.php?id=599425&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

IT exports may hit $10bn by 2010 ​

ISLAMABAD: Pakistan is eyeing $10 billion IT exports by 2010 against present export level of $2.2 billion, said Pakistan Software Export Board Managing Director Yusuf Hussain at a press conference here on Wednesday.

The PSEB managing director said that information technology exports would be doubled from last year’s figure, but did not disclose the figure, as the State Bank of Pakistan (SBP) had not released the final data for the whole year.

About the improving image of Pakistan in the world, Yusuf Hussain said that AT Kearney, a Chicago-based research and strategic management consulting company, in its latest annual survey report for the first time ranked Pakistan amongst the top 50 countries for its offshore services market potential in the field of information technology.

“This speaks volumes for the potential of outsourcing capabilities of local companies and is also a strong manifestation of confidence the world has in the Pakistani IT industry,” he remarked.

The PSEB managing director informed the media that the Board was launching the PSEB IT Job Board Portal for the Pakistani industry and said that talent acquisition was the first step in talent management. In that connection, he said, the PSEB and Brightspyre had joined hands to help the IT industry by upgrading their talent acquisition to international standards, besides providing help to foreign investors in acquiring talent pool from Pakistan.

The PSEB would hold an international level CEO Forum in Karachi on August 10, with an aim to showcase the rapid strides made by the Pakistani IT sector over the last few years and also to help increase foreign financing through effective interaction with foreign companies. Title of the forum is “Corporate Success in the Knowledge Economy”.

About the potential of Pakistan in the IT sector, he remarked that Pakistan’s IT industry was growing at a high rate. Its advantages included relatively low wages amounting to as little as half the level of salaries in India, as well as reasonable real estate costs, plentiful government incentives, business environment and readily available supply of skilled workers.

He revealed that over 1,000 companies were registered with the PSEB, out of which 100 were ISO certified and “there are, at this point, 90,000 IT professionals employed in Pakistan.”

More or less 60 foreign IT and telecommunication companies are working in Pakistan that are also further exploring the local market in terms of more investments and outsourcing of IT-based services.

He said that the PSEB is a government agency mandated to promote the IT industry including software, services, hardware and call-centres locally and globally. Pakistan’s IT exports crossed one billion dollar mark last year and IT exports growth in has been fifty percent in last four consecutive years. The PSEB has been facilitating the IT industry trhough its programmes in Human Capital, Office Space, Marketing, Company Capability Development, Telecom Bandwidth, Industry Finance, Public Policy, Strategy & Research, and Facilitation.

http://www.thenews.com.pk/daily_detail.asp?id=66572

 

[Neo]

US economic support programme soon ​

KARACHI: The US Deputy Assistant Secretary of State for Trade Policy and Programmes, Chris Moore said on Tuesday that the US is putting in motion a 15-year long-term initial economic support programme for Pakistan, which is unprecedented and has never been done for any country or region.

“There are many opportunities that are available for Pakistan under this programme such as Trade and Investment Facilitation Agreement, Bilateral Investment Treaty and Reconstruction Opportunity Zones, etc.

“The stability of Pakistan is of vital interest to the US,” said Chris Moore while meeting a 12-member delegation of the Karachi Chamber of Commerce and Industry (KCCI), led by its president Majyd Aziz.

The State Department official added that “a long-term policy is imperative and that vital components of the programme is what Pakistan is doing to promote stability and economic growth in the region.”

He said the ROZs were very important for Pakistan because products made in these zones would be eligible for imports to the US with duty exemption.

He categorically stated that most of the items in the textile sector would be eligible for duty-free import. He added that even ‘cut and sew’ units would be eligible for duty-free status and other benefits.

He said under the new law, the US president would be authorised to grant duty-free status to many non-textile sectors. He agreed that if there are complicated procedures regarding Rules of Origin, then it would become difficult for retailers and buying agents to import and operate.

Moore, moreover stated that physical infrastructure could be provided but private sector must undertake the investment initiative. He said that USAID has done studies for places that are suitable for ROZs.

He said that ROZs are the economic ladders leading towards Free Trade Agreement between Pakistan and the United States.

He said that the USAID has done intensive studies to determine where to set up the ROZs. He said that the economic progress made by Pakistan during the last few years is very commendable. He said there is greater possibility of heavy investment in physical infrastructure such as the power sector.

The Deputy Assistant Secretary appreciated the idea floated by president KCCI that there is need for a Track Two initiative between the business communities and said that this idea needs to be further explored.

Regarding the issue of Intellectual Property Rights, he added that this is critical in cementing the bilateral relations. He applauded the efforts of Pakistan in protecting IPR calling it astounding.

Earlier, Majyd in his opening remarks said that KCCI is supportive of the American initiative to establish ROZs in Pakistan and declared that there would be increase in investment in these ROZs not only from domestic investors but also from Foreign Direct Investment (FDI).

He said that residents of the area would get meaningful employment at their doorsteps and this would also deter smuggling and illegal activities, plus it would also stem the proliferation of negative thoughts and actions that are against human nature.

KCCI president said that the induction of economic prosperity into the areas where these ROZs are to be situated would also discourage inter-provincial migration of people to Karachi and Lahore for better economic prospects.

http://www.thenews.com.pk/daily_detail.asp?id=66573

 

[Neo]

Economist stresses political stability in Pakistan ​

KARACHI: Professor Norbert Walter, the Chief Economist of the Deutsche Bank Group, has said political stability is a pre-condition for Pakistan’s strong growth to continue.

Speaking to journalists at a local hotel on Wednesday, he said if that remained the case, the growth momentum would be favorable and foreign direct investments would be reasonably strong over the next two years.

He predicted that Pakistan also continued to build foreign exchange reserves and enjoyed robust portfolio inflows and strong remittances, all of which would continue to strengthen the country’s strong external liquidity position.

Replying to a question, he said the solution to Pakistaní economic ills lay in immediate enhancement of exports.

He co-related remittance with exchange reserves and said over the past seven years, remittances had increased more than five-fold from nearly one billion US dollars to almost 5.5 US dollars in 2006-2007, and the foreign exchange reserves had increased more than seven times from 2.1 billion US dollars in 2000-2001 to 15.3 billion US dollars in 2006-2007.

Walter said the global economy continued to grow for the fifth year in succession. This trend would most probably continue into 2008. However, there were numerous risks that pointed towards a difficult 2009.

Both central bankís interest rates and bond yields seemed to have reached a plateau. Stock markets had further growth potential. The US housing recession had not yet affected other economic sectors and had thus dampened US economic growth only slightly, he said.

Euro land and Germany as its main economic growth engine are back on the growth track. Structural problems, however, persist. Since they are not addressed by appropriate reforms, the improvement is only cyclical.

Small Asian economies and especially Japan are benefiting from tremendous growth in India and China. Due to increasing investments, strong regional export demand and a low yen, Japan seems to be back on track as well. Emerging market economies, especially India and china, are experiencing strongly export-led growth, implying a large increase in foreign exchange reserves.

Emerging markets, including Asia, are currently being affected by repercussions of the US subprime mortgage market turmoil.

However, fundamentals in emerging economies remain strong and these countries are much more resilient than in the past to external shocks, he said.

He said asset price bubbles and current account disequilibliria will eventually correct. This will imply foreign exchange gyrations and financial market disruption. According to him, protectionist actions may endanger the global goldilocks conditions.

http://www.thenews.com.pk/daily_detail.asp?id=66578

 

[Neo]

Blueprint to develop textile sector: Industrial vision​

ISLAMABAD, Aug 1: The Cabinet on Wednesday approved the much-delayed “Technology-based Industrial Vision and Strategy for socio-economic development,” which sought to provide appropriate incentives by the government to transform the textiles sector into a strong, dynamic and internationally competitive industry led by the private sector.

The vision finalised an action plan, the details of which were made available to Dawn, for achieving the major industrial goals, which cannot be realised without an efficient energy sector.

The plan also stressed the need to diversify engineering and electronics industry. The main focus on the engineering sector is on bridging the widening technology gap with the developed countries by providing conducive environment, including the required technology, financial and physical infrastructure and creating a seamless integration with emerging trends of global production systems.

“The prime minister will head a special committee to achieve the objectives of industrial vision. Also, a Working Group has also been set under the chairmanship of the deputy chairman Planning Commission to ensure implementation on various recommendations given by the authors of the vision,” a source, who was present in the cabinet meeting, told this correspondent.

Chairman of the Higher Education Commission Dr Atta ur Rehman and the economists of Pakistan Institute of Development Economics (PIDE), including Dr. A.R. Kamal were the main authors of the new industrial vision.

The government was advised to address the challenges being faced by the textiles sector, which included lack of trained manpower, low quality standards and low technological base, lack of research and development and too much reliance on cotton.

The key elements of the action plan for the textiles sector, included improving the regulatory and policy framework, human resource development through improving the research institutions and encouraging the private sector to invest in skill enhancement and developing technology up-gradation, rewarding value addition, ensuring quality standards and establishing common facility centres in the areas of garments, knitwear and samples development.

The action plan also sought to establish “fully integrated chemical industry in Pakistan” to achieve higher economic growth and lessen foreign dependence on imports of vast range of chemical products.

The ministry of petroleum and natural resources in partnership with the private sector has been proposed to undertake an action plan, which would cost Rs72 billion to also help achieve self-sufficiency and the development of the agriculture sector.

“There are many proposals currently being looked into to set up a fully integrated chemical industry”, a concerned source said.

However, he said that the Centre will have to consult all the stakeholders, including the provinces before finally arriving at any consensus about the setting of fully integrated chemical industry in the country.

The action plan also called for reducing the cost of production of leather products by lowering the prices of utilities with a view to considerably enhance their export. The government was asked to help increase the export of leather products through quality and improved productivity and by rationalising tariffs and import of chemicals.

Pakistan's exports of leather to European countries were declining due to shifting of tanning industries to China, South Korea and other Asian countries. The export to the United States, the main market for leather apparel, has declined by over 9 per cent.

Pakistan being a developing country, its leather products have to face barriers to export i.e. the use of sanitary and phyto-sanitary standards from the developed countries. EU countries are demanding that leather goods should carry the certification marks of international Standard Organisation (ISO) regarding pollution-free environment at the factory premises where the products are manufactured.

According to the vision, in leather and leather garments industries, only 15 per cent are qualified and experienced workers while 85 per cent are employed without proper experience.

Exported leather goods during the storage and transportation develop problems like spew because of the chemical reaction.

The leather industry is facing the problems of non availability of raw materials for their finished goods. At present lot of companies are exporting the leather in the form of wet blue semi-tanned leather to avoid the effluent treatment problems, which is a tremendous waste.

http://www.dawn.com/2007/08/02/ebr4.htm

 

[Neo]

Good returns to continue wooing investment​

KARACHI, Aug 1: Security concerns are real but as long investors continue to get good returns on their investment in Pakistan the strong trend of foreign direct investment will persist.

More than anything else the surroundings with vibrant galloping India on the east and very rich Arab world in the West Pakistan is most likely to maintain the growth pace in future. Pakistan is a natural destination for multi million funds sitting in Middle East waiting to be invested.

Dr Norbert Walter, Chief Economist Deutsche Bank Group and Managing Director Deutsche Bank Research, expressed these views in response to a question while talking to media after his presentation ‘World economic cycle - mature financial markets nervous’ here on Wednesday.

Referring to security situation for foreigners, Mr Walter said that his presence in the city demonstrated that business opportunities outweigh the risk factor. He was on his annual trip to Pakistan.

He said his bank was not visible as it was not into retail banking in the country. “We serve the country’s corporate citizens”.

He saw high current account and trade deficit as causes of concern but hailed macro management that led to deceleration of inflation in difficult times. He highlighted the benefits of steady inflow of remittances that, in his view, leads to social stabilisation besides putting in people’s hands the seed money to start a new business.

Earlier in his presentation, he predicted the global economy to grow for the fifth year and expect the trend to continue into 2008. However, there were numerous risks that point towards a difficult 2009.

He said there was possibility of a slowdown in the US economy if the housing recession spilled out to other sectors. The difficulties in Japan may persist for a while. He saw better economic prospects for Europe where business sentiments were at 20 years high.

He said business mood was more positive than the actual companies’ performance. He saw India’s economic prospects brighter than China that he felt would be caught up in environmental bottlenecks, etc.

Africa will also develop at a faster pace, he said.

He felt both bonds and real estate asset markets were overpriced whereas capital markets on the strength of profit/earning ratios were still cheap.

The speaker was introduced and welcomed by Chief Country Officer Deutsche Bank AG Pakistan Shazad G. Dada.

http://www.dawn.com/2007/08/02/ebr8.htm

 

[Neo]

Cement dispatches grow 41 percent on yearly basis​

KARACHI: The cement dispatches have marked massive growth of 41 percent year-on-year (YoY) in July of current financial year to 2.39 million tonnes as against 1.69 million tonnes in the corresponding of last year.

According to latest data of cement dispatches in the first month of current financial year, the growth includes exports of 441k tonnes, surging by phenomenal 134 percent in the month under review whereas the local sales of the cement registered a growth of 29.6 percent to 1.95 million tonnes during this period.

The company-wise details of cement dispatches revealed that Lucky Cement registered a growth of 44 percent YoY during the month of July with the 23 percent increase in the local sales of the company and phenomenal rise of 105 percent in export dispatches.

DGK Cement recorded a growth of 62 percent in the said period including 65 percent in its local sales whereas company posted a growth of 85 percent in export dispatches during this period.

Maple Leaf Cement’s dispatches rose by 64 percent in July this year with the 44 percent growth in its sales in the local market while its export dispatches did not see any growth in the month under review.

Fauji Cement’s overall dispatches were stagnant, as it witnessed no growth during the month while the local sales of the company were down by seven percent, however exporter dispatches were up by 41 percent in the month of July over the same period of last year.

Pioneer Cement recorded overall growth of 62 percent in its dispatches with 84 percent in the local sales and negative growth of 24 percent was seen on the export side.

On MoM basis, Lucky Cement saw a growth of four percent in July over the preceding month of June with 16 percent growth in its local sales whereas the export dispatches were down by 11 percent in this period.

DGK Cement registered 10 percent growth in overall dispatches with 11 percent in local sales while the export dispatches did not see any growth in the said period.

Maple Leaf Cement recorded growth of 40 percent in total dispatches with the 44 percent in local sales and seven percent on export side. Fauji Cement saw a growth a 12 percent with no growth in local sales and 125 percent in export dispatches.

Pioneer Cement’s dispatches were up by one percent with three percent rise in local sales and negative growth of 13 percent in the export dispatches.

And Pakistan Cement recorded overall growth of 42 percent including 43 percent in the local sales and 37 percent in the export dispatches.

Analysts identifying various reasons in overall growth in the cement sector believed that still there is a major potential of further export especially after the certification of some Pakistan’s cement companies by Indian authorities, these companies are gearing up to export cement to neighbouring country, once all the formalities are met.

About the drop in local sales and export dispatches of some companies during the month under review, Khurram Shehzad, analyst at Investcap listed the rainy season in the north of the country and even in its export markets like Afghanistan and African countries, which resulted in drop in the local sales as well as export dispatches.

About any impact of cement export to India on the local prices of commodity, Mr Shehzad did not see any negative fallout of export to India on the local market as after meeting the local requirements, an abundant quantity of cement would be available for export purposes.

http://www.dailytimes.com.pk/default.asp?page=2007\08\02\story_2-8-2007_pg5_1

 

[BATMAN]

Pakistan foreign reserves up seven-fold since 2000: Norbert
http://www.thepost.com.pk/CorpNewsT.aspx?dtlid=110528&catid=8
Zafar Ahmad

KARACHI: Pakistan's foreign exchange reserves have increased more than seven-fold since 2000-01, said Professor Norbert Walter, Chief Economist, Deutsche Bank Group on Thursday.

Giving an overall review during a presentation ceremony, Professor Walter said that Pakistan's foreign exchange reserves have increased more than seven times from $ 1.2 billion during 2000-01 to $ 15.3 billion in 2006-07. Pakistan's reserves would continue to grow, he said, adding if the government continues the policy of consistency and the current rate of economic growth is maintained.

With the present rate of growth, he said, all the indicators point that the foreign reserves would continue to grow at a faster rate.

Professor Walter said Pakistan's stability, which continued from 2000 was a pre-condition for its economic growth to continue.

If that remains the case, he said, the economic growth momentum would be favourable and the foreign direct investments (FDIs) would be reasonably strong over the next two years.

It augurs well for the future, he said, adding with all the indicators, it could be established that Pakistan would continue to build up its foreign exchange reserves and enjoy robust portfolio inflows and strong remittances from the overseas Pakistanis, all of which will continue to strengthen the country's strong external liquidity position. He said over the past seven years since 2000, the remittances from the overseas Pakistanis have increased over five-fold from approximately $ 1 billion to almost $ 5.5 billion during 2006-07, while the foreign exchange reserves have gone up more than seven times.

"Pakistan's economic growth record since 2000 had been very encouraging and hopefully, it would be further strengthened in the days ahead as the policies being followed by the government are economically sound and positive," he said. The rate of economic growth, he said would hopefully be maintained and the reserves would continue to grow, he added. Talking about global outlook, he said the global economy continues to grow for the fifth year in succession.

This trend, he said would most probably continue into 2008, he said.

There were numerous risks that points toward a difficult 2009, he said, adding both the central bank internal rates and bond yields seemed to have reached a "plateau" and stock markets have further upside potential.

The US housing recession has not yet affected other economic sectors and has thus dampened the US economic growth only slightly, he said.

The Euro land and Germany as its main economic engine were back on the growth track, he said, adding the structural problems, however, persist.

The Asian economies, especially Japan were benefiting from the tremendous growth in India and China, he said.

Due to increasing investments, strong regional export demand and a low Yen, Japan seems to be back on track as well, he added.

Prof Walter said the emerging market economies, especially India and China, were experiencing strongly export-led growth, implying a large increase in foreign exchange reserves.

The emerging markets, including Asia, were currently being affected by repercussions of the US sub-prime mortgage-market turmoil.

However, he said, the fundamentals in the emerging economies remain strong and these countries were much more resilient than in the past to external shocks.

 

[Neo]

PPIB signs IA with AGL for 165 megawatts plant ​

ISLAMABAD (August 03 2007): The Private Power and Infrastructure Board (PPIB) has signed Implementation Agreement (IA) with the Attock Generation Ltd (AGL) for establishing a 165 MW power plant to be situated at Morgah, Rawalpindi. The Attock Generation Ltd has been given the target of August 2008 to start its commercial operation.

The power plant will be set up at a cost of $113 million. This achievement has been made only a few days after the Implementation Agreement was signed between the PPIB and the Saif Power Ltd to set up 225 MW power project at Sahiwal with a cost of $189 million, said Water and Power Minister Liaquat Ali Jatoi on Thursday.

Jatoi was chairing a meeting at the PPIB which was also attended by PPIB Managing Director PPIB Muhammad Yousuf Memon, directors and other senior officials.

The minister said the Sapphire Electric Company Ltd, who had earlier signed IA with the PPIB in March this year, has now achieved financial closure, and is moving ahead to start their commercial operation by May 2009. The lender consortium consists of local banks, including HBL, MCB, UBL, ABL and NBP, providing Rs 9 billion as debt.

Jatoi appreciated the PPIB efforts for working diligently as a team to provide a proactive role in the development of power sector for the utmost interest of the country. He said since the economy of the country is progressing at a fast pace, we are currently experiencing electricity demand growth of 10-12 percent per annum.

The government is looking for all options and also making efforts to utilise local coal at Thar, where the development will take place only when the required infrastructure like water supply, roads and other allied infrastructure is ensured. The government is looking into the matter, as indigenous coal will help in resolving power crisis.

Furthermore, two power plants of 1,000 MW each are being processed on imported coal near Gadani, and the PPIB will also be considering any other serious proposals on imported coal. Due to the rapid power demand growth, more megawatts to be injected into the system, and participation from the private power sector is essential.

Jatoi said the government is willing to join hands with the private entrepreneurs. "Our attitude is positive and responsive to the investors, and we wish to facilitate them and provide them every co-operation for development of power sector in Pakistan," the minister added.

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3G WiMAX coming to Pakistan soon ​

LAHORE: The Chairman, Pakistan Telecommunication Authority (PTA), Major General (Retd) Shahzada Alam Malik, has said that 3G technology WiMAX would get its way into Pakistan market within a couple of months.

“A Gulf-based company is rolling out this technology in the region soon to help introduce eight-digit mobile phone numbers,” he said while speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Thursday.

He urged the local businessmen to benefit from the opportunities in mobile phone handset manufacturing by setting up units as Pakistan is presently spending huge foreign exchange on the import of millions of sets every year.

Talking about the rising mobile phone density in the country, he said that the number of mobile phone subscribers had swelled to 65 million as two million new subscribers are added every month.

He said that mobile teledensity in Pakistan had touched the enviable mark of 45 percent in just few years.

About fixed line phone growth in the country, Malik said that the growth in this conventional telecom system was now stagnant. “More lines were being laid to provide triple play facilities to the people i.e. internet, telephone and TV in the towns like Lahore and Islamabad.” Responding to a question, the PTA chief said that the Authority’s efforts to curb the mobile phone theft in the country had started yielding positive results. The use of IMEI system had led to blocking of 100,000 stolen mobile phones in the country over a very short period of time.

He said that the business friendly policies had attracted foreign direct investment worth $1.9 billion each during the fiscal years 2006 and 2007.

He said that new entrants in the mobile phone sector had led to great competition in this vital segment of the Pakistani economy, development of more physical infrastructure and creation of jobs.” The number of cell sites in Pakistan has touched the level of 11,800 in June 2007 from 360 in 2003.” Speaking on the occasion, the LCCI President, Shahid Hassan Sheikh, urged the chairman PTA to ensure the provision of DSL (Digital Subscriber Line) service to industrial zones in Pakistan that are suffering because of inadequate DSL services.

The LCCI President said that it was generally observed that whenever there is rainfall, a large number of phone lines go out of order for having connection with underground cable; this is an issue of prime importance for any business firm or industrial concern.

The PTA should give the issue a special consideration as it is pre-requisite for keeping pace with fast growing economy.

Shahid Hassan Sheikh said that line rent being charged by the PTCL was too high so it should be curtailed as in the year 2006, the PTCL earned a profit of Rs20.77 billion.

He urged the PTA Chairman to direct mobile operators to improve quality of their services as the services of some of the mobile operators is not up to the mark.

He also invited the attention of the Chairman towards the repeated disconnection of internet services being provided by ISPs through PTCL.

The LCCI President said that all the banks are charging 15 per cent interest on loans for whole year, the PTCL is charging a surcharge of 10 per cent on late payment.

This is too high surcharge for late payment, this surcharge is totally unjustified and tantamount to exploit the customers, it is suggested that the surcharge is reviewed and brought at par with bank rate.

http://www.thenews.com.pk/daily_detail.asp?id=66719