Pakistan Economy - News & Updates - Archive

[Neo]

KSE up 23 points to cross 14,800 level in overbought market ​

Thursday, December 27, 2007

KARACHI: Buying on selective counters helped Karachi Stock Exchange benchmark KSE 100-share Index easily breach through the 14,800 points barrier successfully for the first time on Wednesday.

KSE-100 closed at 14,815 points with a modest addition of 23 points to 14,792 points previous all time high hit of last working session on December 24.On the contrary, the 30-Index shed five points and concluded at 17,666 points simultaneously.

The second and third tier stocks, mainly from banking sector, provided support to the 100-Index keeping it above the 14,800 points level by the session closed.

Market opened with aggressive buying in all categories of stocks on board and took 100-Index to 14,876 points intra-day high in the just opening minutes. It was the defining moment for the investors that whether they wanted to go ahead from here to the next astonishing destination or they wanted to stop here to minimize the risk factor, a leading analyst said.

Jobbers adopted the second strategy and stopped further accumulations at the day higher share prices. From hereon the speculators took over the market in their hands and pushed indices into the red region where most of the frontline scrips stayed till the session end.

In the middle of the session, the index fell to 14,766 points intra day low - losing 110 points from the day peak level. Blue chips close in red: Engro Chemical and Lucky Cement were the only two scrips, which managed to end in the positive column gaining Rs2.70 and 50 paisas respectively. Otherwise all the front line stocks settled in the red territory.

Pakistan Telecommunication Company closed pegged at Rs44.80 with a thin volume at 0.9 million shares. Fauji Fertilizer Bin Qasim, Oil and Gas Development Company and DG Khan Cement shed in a range of 20 paisa to 70 paisa. Pak Petroleum and Pakistan State Oil lost respectively Rs1.10 and Rs1.15. While National Bank, Pakistan Oilfields and MCB Bank share prices declined in a range of Rs2.10 to Rs3.20, it was noted.

The reason behind adjustment in leading stocks and buying in second and third tier stocks was said to be the risk factor. The leading stocks have entered into the overbought zone and buying in these scrips would be more risky. While potential offering second and third tier stocks were yet to be exploited, a broker said.

CFS rate near 10-month high: The CFS rate at present was near 10 months high level at 14.06 per cent owing to the year ending factor and some of the lenders were busy in year-closing business, he added.

And on the other hand, the available funds in CFS were fully utilized at Rs55 billion by the market players that is why the day traders were not buying the CFS eligible scrips that are incidentally the frontline stocks.

“Those having hard cash in hand were buying potential offering stocks that fortunately are other than the CFS eligible scrips at present”, he added. For this reason, the retail investors’ participation was very thin in the stock exchange and owing to high risk factor in skyrocketing market they just observed the stocks movement and remained dormant on buying part.

SCRA balance declines: So definitely, it were the only local financial institutions who were continuously inflating the new investment bubble at the local bourse, as the overseas investors retraced footsteps, which is evident with the shrinking SCRA balance these days.

According to the State Bank latest available figures of Dec 24, the SCRA balance declined to US$67.2 million to date for this fiscal year from US$109.7 million was recorded on Dec 18. The decline in SCRA account clearly showed that the foreign fund managers were getting distance from local bourses and disinvesting in government bounds.

Turnover in ready market turned higher to 308 million shares with injecting fresh funds worth of Rs9 billion in the overall market capitalisation surged to Rs4.555 trillion. It was somehow a balance market with 180 stocks advanced against 176 declined, while the value of 29 stocked closed stable with total 385 active counters on board.

Highest volumes were witnessed in TRG Pakistan at 37.697 million closing at Rs14 with a gain of Re1, followed by Allied Bank at 20.687 million closing at Rs141.25 with a gain of Rs6.55, JS Bank at 19.275 million closing at Rs23.95 with a gain of 80 paisa, NIB Bank at 17.403 million closing at Rs23.40 with a loss of 20 paisa and Bosicor Paksitan at 15.085 million closing at Rs23.10 with a loss of 15 paisa.

KSE up 23 points to cross 14,800 level in overbought market

 

[Neo]

Containing CAD at 5pc of GDP hard target for govt ​

Thursday, December 27, 2007

ISLAMABAD: The target of containing the current account deficit (CAD) at 5 per cent of GDP as envisaged in the Annual Plan is most unlikely to be achieved.

The average monthly incidence of the CAD (excluding official transfers) was $591 million in the last fiscal year 2006-07, but during the first five months of the current fiscal, the average monthly CAD is almost touching $961 million.

During these five months, in spite of strong build-up in current transfers of about more than four and a half billion dollars, the huge $7.72 billion trade deficit in goods and services was instrumental in turning the current account into deficit, the State Bank of Pakistan (SBP) data released on Wednesday said.

Net current transfers rose to $4.67 billion during the period under review, from $3.9 billion in corresponding period of the last fiscal. Current transfers went up as Pakistan received $2.58 billion in workers’ remittances or foreign exchange sent back home by overseas Pakistanis during the period, up from $2.1 billion a year-ago. At the same time, the resident deposit holders also deposited $216 million in foreign currency accounts (FCA) compared to $61 million they withdrew from these accounts during corresponding period of the last fiscal.

Inflows in these accounts proved as a cushion in moderating current account deficit, but still outflows due to trade deficit, interest payments and profits and dividends remitted by the foreign companies to their respective countries were so huge, that it, (inflows) were unable to keep the CAD from falling in red zone. International Monetary Fund (IMF) has also expressed its concern over possible slippages on ‘twin deficits’. If the current trend persists, there is a possibility that the government would not be able to meet the CAD target.

It is worth mentioning that during July-November 2007-08, trade imbalance (in goods and services) up from $6.43 billion last year to $7.72 billion this year. Higher oil prices spiral since November 2007 might add to the woes on external front through widening trade imbalance.

The government is already in a fix to contain fiscal deficit, which has already reached one of the highest level of 1.6 percent of GDP in the first quarter (July-September) for the last seven years.

Now it has become clear that fiscal deficit target of 4.0 of GDP would be breached by a fair margin and there are chances that current account deficit target would not be achieved as well. In the election year, the government could not shelve its mega development projects and it has to finance fraction of the oil imports bill.

The government is caught between devil and the deep sea in the election year. The pass through of higher international prices has become next to impossible before elections, thus the government has to take the hit for unanticipated rise in the crude oil prices.

One manifestation of the rising twin deficits is the addition of $1.6 billion to the stock of the external debt and Rs.109 billion in domestic debt in the first quarter (July-September) of FY08.

During the last fiscal, Pakistan has added $2.9 billion to the external debt, which is record addition to external debt in one decade. It is also interesting to note that the government has always talked about debt burden. It has also witnessed tremendous rise in the last fiscal year. For instance, external debt and liabilities as percent of foreign exchange earnings are regarded as most reliable indicator of debt burden.

According to State Bank of Pakistan (SBP) annual report, this indicator has witnessed deterioration from 120 percent in FY 06 to 124.8 percent in FY 07. Another indicator of debt carrying capacity reserves to total external debt and liabilities has deteriorated from 28.9 percent in FY 06 to 33.2 percent in FY 07.

Rising debt servicing burden has raised serious questions of sustainability of the debt. Public debt is deteriorating both in terms of absolute amount and debt burden.

Containing CAD at 5pc of GDP hard target for govt

 

[Neo]

Mobile phone users hit 75m ​

Thursday, December 27, 2007

ISLAMABAD: Caretaker Federal Minister for Information Technology and Telecom Dr Abdullah Riar on Wednesday lauded the role of Pakistan Telecommunication Authority (PTA) in developing the country’s telecom sector and termed it a model institution for other government organisations to follow.

Appreciating the recent growth shown by the telecom sector of Pakistan, he said that the telecom industry has made decisive contribution to the national economy.

Talking to media during his visit to the PTA headquarters, he said that broadband revolution is poised to bring positive changes in the country and would enable the citizens to reap the benefits of this revolution during the next few years.

The minister emphasised that there is a need to supplement the telecom revolution with broadband revolution, which impacts every field and segment of life in future. Access to information will not only enhance productivity in every sphere of life but will also contribute towards the overall wellbeing of a common man.

Earlier, Chairman PTA Maj-Gen (R) Shahzada Alam Malik briefed the minister about the functions of PTA, regulatory initiatives and performance of telecom sector. The chairman said that the foreign investment being attracted by the telecom sector and said that during 2006-07 $1.8 billion FDI came into the telecom sector which was 35.6 per cent of the total FDI.

He said that the current number of cellphone users has reached 75 million and the usage has increased manifold over recent years. He said that the overall teledensity of the country is 50.88 per cent while the density of mobile phone users is 47.4 per cent.

Mobile phone users hit 75m

 

[Neo]

IFC to finance power project​

Thursday, December 27, 2007


ISLAMABAD: The International Finance Corporation (IFC), a member of the World Bank Group, has signed an agreement to support Engro Energy’s combined cycle power project, which will help meet Pakistan’s increasing energy needs.

The Engro Energy project includes a 217-megawatt base load plant which will be built in Sindh. The combined cycle power plant will generate electricity using low-quality gas, which would otherwise be flared.

The highly-efficient technology will reduce the average cost of power generation. Substantial investments in power generation in the country are needed to ease serious power shortages, a situation which could deteriorate further in coming years, said a news statement issued here on Wednesday.

The project is being developed by Engro Energy Ltd, a subsidiary of Engro Chemical Pakistan Ltd. IFC’s $59.5m financing package will consist of $56.9m in loan and $2.6m in equity. Other contributing development financial institutions include DEG, FMO, OFID, Proparco and Swedfund.

IFC Director for Infrastructure Rashad Kaldany said: “The project will help Pakistan meet rapidly-growing demand for power and contribute to the country’s economic growth. The project will also help reduce carbon emissions by avoiding the flaring of gas.”

IFC to finance power project

 

[Neo]

Appetite for expansion in commercial banking continued in CY07 ​

Thursday, December 27, 2007

KARACHI: The appetite for expansion in commercial banking continued during the outgoing calendar year amid robust progress in financial sector. However, the regulatory policies of State Bank of Pakistan (SBP) failed to cut down banking spreads by creating a natural competition among banks.

In January 2006 the banking spread was 7.27 per cent as banks were lending at interest rate of 9.89 per cent while paying 2.62 per cent interest rate on deposit, in January 2007 the banking spread further widened to 7.44 per cent as banks were lending at 11.18 per cent and paying 3.66 per cent interest to depositors and the high spread continued till August 2007 when difference between lending and deposit rates was recorded 7.23 percent.

In the last four months from September to December-2007 the banking spread recorded a slight decline, as banks were disbursing funds at 11.32 percent interest rate against paying 4.12 percent interest on deposits. This difference further narrowed to 7.19 percent in October 2007.

As of end calendar 2006 the banking sector profitability was Rs123.6 billion, whereas a year on year increase in assets during CY06 pushed the overall size of banking sector to Rs4.3 trillion which further increased to Rs5 trillion by end of first half of CY07.

The high banking spread was the only factor behind record earnings in the banking sector, that was very charming feature in domestic banking industry which lured some renowned foreign banks to start their commercial operations in local market with intention to grab the prevailing opportunity. State Bank of Pakistan (SBP) issued new license to Barclays the world’s second largest bank just two weeks before end of the calendar.

SBP links entry of foreign banks in Pakistan with stable macroeconomic environment along with relatively low penetration level of the banking sector.Consolidation of financial sector continued during the year. The banking sector saw only two mergers & acquisitions in CY07 against eight mergers and acquisitions in CY06.

Majority shares of Crescent Commercial Banks were acquired by Saudi American Bank (SAMBA) Financial Group and acquisition of mid sized Prime Commercial Bank by ABN Amro Bank were the major transactions of the year. It may be noted that in September 2006, Standard Chartered PLC acquired 95.37 per cent stake in Union Bank Ltd, which was the most noteworthy transactions in last two years.

Since the year 2000 both banks and Non-Banking Financial Institutions (NBFIs) witnessed 50 mergers and acquisitions involving more than 150 financial institutions and out of 30 deals involving commercial banks eight were executed in calendar year 2006. The regulatory capital requirement of SBP is a contributory factor forcing mergers and acquisitions of banks.

SBP raised the Minimum Paid-up Capital Requirements (MCR) from Rs500 million to Rs1 billion for scheduled banks in 2000 and now banks are required to increased their MCR to Rs6 billion by end of December 2009, compared to an MCR of Rs3 billion as of end December 2006.

A major development taking place prior to saying goodbye to 2007 which could be termed as a good omen for local banking sector in future was that the widow of slain Wall Street’s journalist Daniel Pearl withdrew suit against Habib Bank Limited (HBL).

The western media never misses an opportunity to accuse Pakistani banks of money laundering and other illegal financial transaction. Financial market sources said that withdrawal of suit would be a clearance certificate for local banking sector in future against unfounded and baseless accusations of Western media.

Appetite for expansion in commercial banking continued in CY07

 

[Neo]

Drastic decline in net foreign investment​

* Drops by $434m or 19.3% during the first five months of FY08

KARACHI: Net foreign investment in the country took a plunge of $434 million or 19.3 percent to $1.8185 billion during the first five months of the current financial year. The country had received foreign investment worth $2.252 billion in the same period of last financial year.

The inflow of foreign investment into the country continues to decline in the current financial year mainly due to withdrawal of money by foreign portfolio managers.

Overall foreign portfolio investment declined to $106 million in the first five months of this year, recording a fall of 86.3 percent from $771.9 million in the same period a year ago.

Foreign portfolio investment has declined mainly due to uncertain political situation in the country, which has perturbed foreign investors as they fear that the economy may take a downward course as a result of political turmoil.

Net inflow of foreign investment in the country’s stock exchanges from July 1 to December 24 stood at a mere $67.154 million. Last year the country had attracted about a billion dollars in stock exchanges.

Foreign direct investment (FDI) rose by $232.3 million or 15.7 percent to $1.7125 billion from $1.4802 billion. FDI from Western Europe declined from $541.6 million to $278.3 million. FDI from European Union fell from $491.2 million to $187.9 million.

However, FDI from United States soared to $735.1 million from $363.7 million. FDI from developing economies also rose, from $384.6 million to $489.4 million.

The net foreign investment in the country included $133.2 million received as privatisation proceeds and $90.5 million attracted through Global Depository Receipts of UBL.

Economists had criticised the Shaukat Aziz-led economic management of the country, which relied heavily on undependable foreign exchange inflows like portfolio investment and remittances to cover its current account and trade deficits. Now that the government led by a commercial banker has completed its term, it will be a difficult task for the new government to meet demand for foreign exchange in the country with falling inflows.

Keeping this scenario in view, it should be expected of the new government to change policies to control imports and raise exports in order to keep its foreign exchange environment stable. The outgoing government has left difficult challenges for the next government.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Neelum-Jhelum hydropower project: Government set to charge 10 paisa/unit from Jan 1​

Raising n Revising: Approved by the federal Cabinet, the 10 paisa rise in power tariff will meet the financing requirements of the much-delayed 960-MW Neelum-Jhelum hydropower project at a revised cost of Rs 128.4 billion

By Zafar Bhutta

ISLAMABAD: The government would charge 10 paisa per electricity unit from January 1, 2008 onwards to generate around Rs 6 billion for financing Neelum-Jhelum hydropower project,” a senior official told Daily Times here Wednesday.

The federal cabinet has also approved a raise of 10 paisa per unit in power tariff for financing the much-delayed 960-MW Neelam-Jhelum hydropower project at a revised cost of Rs 128.4 billion with a foreign exchange component of Rs 46.5 billion, in its meeting on December 12. Official sources said that the increase in tariff for Wapda and KESC consumers would appear in electricity bills as a special surcharge for the month of January.

The sources said the financing plan had been approved by a committee headed by then prime minister’s advisor on finance, Dr Salman Shah (now caretaker Finance Minister), which had suggested a 10 paisa per unit increase in Wapda tariff for the fund to be called ‘Neelam-Jhelum Hydropower Development Fund.’

The Economic Co-ordination Committee (ECC) of the cabinet also on August 17, 2007 approved, in principle, an increase in tariff to finance the mega hydel power project with a recommendation that the decision should be placed before the cabinet in its meeting.

The sources said the Ministry of Water and Power had forwarded the summary to the cabinet in October but the issue was kept pending for the caretaker setup due to political considerations. The cabinet approved rise in power tariff considering the project was vital for economic growth and security and deserved immediate endorsement especially in the context of water sharing with India on Jhelum River.

Official said that the government of Pakistan has already approached Kuwait Fund and French financers M/S BNP Paribas for arrangement of the foreign exchange component of the $785 million (Rs 46.5 billion).

In order to arrange foreign exchange component of $785 million the government made a presentation to Kuwait Fund management delegation on March 21, 2007 and a formal request has been sent to Economic Affairs division for further submission to Kuwait Fund. The government officials have also held discussion for availability of foreign exchange component of the project with French financers M/S BNP Paribas head office of which is located at Paris on March 29, 2007, the official explained.

Water and Power Development Authority (WAPDA) has also approved award of the contract to the lowest bidder i.e. CGGC-CMEC a joint venture on March 9, 2007 at the contract price of Rs 90.885 billion including foreign exchange of $785 million. The project director office is operational at Muzaffarabad to execute the project in the site,” the official added.

The government has already made an allocation of Rs 5 billion in the Public Sector Development Programme (PSDP) and a sizeable amount is expected to be allocated for the project in the PSDP for the next fiscal year, the official added.

The installed capacity of the project is estimated at 969 MW and annual energy generation capability of 5150 kWh, design discharge at 230 and average head at 450 meters. Two tunnels would be built under the project design; the first would be 15 kilometers each 40 square meters and the second would be of 17 km each 80 square meters. According to the official, the project would be connected with National Grid at Rawat with the construction of two separate transmission lines of 500 kV single circuit.

The official informed that the some 2500 kanals of land would be acquired for the project and in the first phase acquisition of 1123 kanals of private land is under way. WAPDA has already transferred Rs 336 million to the Azad Jammu and Kashmir government as provisional cost of private land being acquired by it.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

LSM growth dull at 7.68% during July-October​

KARACHI: The Large Scale Manufacturing (LSM) grew by 7.68 percent in the first four months (July-October) of current financial year compared to corresponding period of last fiscal year, which is sign of another dull year for the manufacturing sector.

Latest official data released on Wednesday showed that in month of October 2007-08, manufacturing growth was 9.83 percent against the same month of last year. For the current fiscal year, government has set 12.5 percent LSM growth target for the fiscal 2007-08.

In the last two financial years, government missed the LSM growth target and analysts believe that this year’s target is likely to miss because of performance of manufacturing sector so far during the current year.

The LSM index is based on the latest production data of 100 items provided by Oil Companies Advisory Committee (OCAC), Ministry of Industries and Production and provincial Bureaus of Statistics (BoS). The breakup of data shows that OCAC index registered growth of 14.98 percent during the four months of this fiscal followed by ministry of industries which grew by 7.28 percent and provincial BoS index registered 7.14 percent growth over the same months of last year.

While, in month of October, OCAC index rose by 17.84 percent, ministry of industries and provincial BoS indices recorded increase of 9.66 and 8.69 percent respectively.

According to analysts and industry people, with no major capacities coming in the major heavy weights in the LSM, another dull year is expected for the manufacturing sector. However, major capacities are expected to come on ground after this fiscal year, which would help reverse the lower-than targeted production of this sector through enhancing production base. Industries, which are expected to outperform the sector would be cement, beverages and other industries related to construction e.g. glass, soda ash, etc.

Citing the reasons for lackluster in LSM sector, analysts said that high oil prices and monetary tightening are having their impact on the sector by way of increasing the sector’s costs and reducing their competitiveness in the international market. “The targets set for the current year are also reflective of unrealistic approach of economic managers of the government, who know the limited production base set ambitious targets just to show high GDP projections,” they noted.

In petroleum production sector, the statistics show that kerosene oil production was up by 15.18 percent, motor spirits 19.52 percent in, high speed diesel 22.49 percent, furnace oil 19.35 percent, LPG 6.68 percent etc. in first four months of this fiscal.

Whereas Jet fuel oil production dipped by 8.07 percent, diesel oil down by 0.65 percent and lubricating oil by 0.92 percent in July-October 2007-08.

In Ministry of Industries Index, in the months under review, the production of cigarettes was up by 7.45, cotton yarn 4.71 percent, cotton cloth 0.88 percent, jute goods 19.25 percent, soda ash 19.01 percent, caustic soda 13.14 percent, Nit. fertilisers 3.54 percent, Phos. fertilisers 6.79 percent, cement 25.84 percent, coke 19.70 percent, pig iron 3.46 percent, buses 37.13 percent, tractors 3.01 percent, LCVs 28.10 percent, motorcycles 28.85 percent, jeeps and cars 4.76 percent etc.

On the other hand, production of paper and board declined by 16.76 percent, glass and plates 5.47 percent, billets/ingots 3.87 percent and trucks 25.57 percent. In the index of provincial bureau of statistics, in July-October period, cooking oil production was up by 1.30 percent, starch and its products by 2.62 percent, beverages 47.69 percent, footwear by 11.14 percent etc.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Kuwaiti company to invest in Pakistani oil sector

ISLAMABAD: Caretaker minister for petroleum Ahsan Ullah Khan has said that the government is providing a level playing field to investors in oil and gas sector.

Minister stated this during a meeting with the Chief Executive of Bakri Energy Management System of Kuwait Hussain Al-Shama who called on him here on Wednesday and discussed investment potential in the Pakistani oil sector.

During the meeting, minister briefed him about the steps being taken by government to promote the petroleum sector in order to meet the growing energy requirement of the country. The minister said that the government has deregulated the downstream petroleum sector in 2001 that attracted unprecedented investment in the country as well as provided competitive environment.

The Chief Executive of Kuwait Bakri Energy appreciated the growth of petroleum sector in Pakistan during the last few years and investor friendly policies being pursued by government of Pakistan. He said that the Bakri Energy would take full advantage of investment potential in Pakistan’s petroleum sector for mutual benefit.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Engro signs $154m accord for 217MW power plant​

KARACHI: Engro Energy (Pvt.) Limited - a 100 percent owned subsidiary of Engro Chemical Pakistan Limited - has signed $154 million financing agreement with a consortium of foreign institutions for its 217-megawatt power plant being constructed near Qadirpur, district Ghotki in Sindh.

The consortium, comprises of leading international foreign financial institutions including: IFC, DEG, Proparco, FMO, Swedfund International and OPEC Fund for International Development.

This is the first-ever Pakistani private sector power project being funded by Swedfund and Proparco, while the German development finance institution DEG is actively supporting projects in Pakistan as an international finance partner since last two years after resuming its activities in Pakistan.

The project with a total worth of $205 million shows Engro’s commitment to invest in Pakistan. Engro Energy on its part is determined to help in alleviating the power crisis in Pakistan by making much-needed investments in the power sector, company sources said.

The project will generate electricity by consuming low quality permeate gas from Qadirpur gas field, which is being flared currently also resulting in reduced carbon emissions.

The plant will be based on highly efficient technology being provided by China National Construction & Engineering Company (CNCEC) resulting in lower cost of power generation.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Mobilink achieves 30m customers​

KARACHI: Mobilink, announced achieving the figure of 30 million customers, a regional milestone in its 13 years of operation and at the same time also formalised the set up of the Mobilink Foundation as its enduring commitment to supporting the social development of Pakistan.

The company’s commitment towards network expansion with aggressive investments, state of the art technology and infrastructure and quality services is a manifestation of its maintaining a leadership position in a six operator market, a company press release said here Wednesday.

On this achievement, Zouhair A. Khaliq, President and CEO of Mobilink said, “we have come full circle to become a shining example of a very successful multi-national organization whose achievements both on the national and international fronts have been recognized by numerous world bodies.

The formation of the Mobilink Foundation is a testimony to our belief of giving back to the community.”

Daily Times - Leading News Resource of Pakistan

 

[Contrarian]

Neo, quick question,
are there 3G networks in Pakistan? have 3G services started for mobile phones?

 

[Proud to be Pakistani]

3G is available in Pakistan since 1.5 years as per my last visit to Pakistan, but i think still video calls are not allowed. Only mobile TV option is there.

Any news..

 

[Contrarian]

3G is available in Pakistan since 1.5 years as per my last visit to Pakistan, but i think still video calls are not allowed. Only mobile TV option is there.

Mate, 3G does not mean just internet on the mobile. 2G networks have internet as well.

3G networks by default mean very high data transfer rates which means video calls. Mobile TV is also available in India, though there are no 3G networks in India, it can be done in 2G networks as well.

 

[Proud to be Pakistani]

Mate, 3G does not mean just internet on the mobile. 2G networks have internet as well.

3G networks by default mean very high data transfer rates which means video calls. Mobile TV is also available in India, though there are no 3G networks in India, it can be done in 2G networks as well.

In this field....

I have 3G and i know what a 3G network means more than you for a fact.

No offense thou.