Pakistan Economy - News & Updates - Archive

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Industrialists plan their own security arrangements ​

Say police, Rangers’ personnel left businesses, citizens at the mercy of anti-social elements during recent disturbances

KARACHI: Industrial associations of Karachi plan their own security arrangements after the loss of property and human lives in industrial areas in the aftermath of Benazir Bhutto’s assassination on Dec 27, industrial associations of the city and businessmen said at a press conference at Karachi Press Club on Friday.

“Personnel of law-enforcing agencies were nowhere seen when they were most needed during the recent looting and arson, so we plan to have our own security arrangements on public-private basis. This can be possible if the government allows industrial associations and other trade bodies to use some of the share of the taxes that we pay to the government and the rest of the amount would be generated by the associations,” said Haseeb Khan, a businessmen.

S M Muneer, Patron-in-Chief of the Korangi Association of Trade and Industry (KATI), said: “We offered sincerest and heartfelt condolence to the family of Ms Bhutto and we will visit Garhi Khuda Bakhsh with our delegation to offer Fateha on behalf the business community. Benazir’s death is a great loss for the entire nation. The entire nation is still in a state of shock. Benazir was a great leader of international stature,” he said.

Muneer roundly criticised the LEAs for their failure to control looting and arson attacks in Karachi and in other places of Sindh. “Where were the Rangers when people needed them desperately,” asked Muneer. “The deployment of Rangers was made very late. We demand of the government to induct more law enforcers to avoid such incidents in future. It is time to think for future and to take steps on a war footing.”

“Achieving the export target of $20 billion would be very difficult because of the destructions in the country,” said Muneer. The Korangi Industrial Area was turned into a war zone where banks, restaurants, petrol pumps and industrial units were torched, he said, lamenting: “The Korangi Industrial Area looks like it has been bombarded.”

Many workers lost their jobs as factories they were working at were destroyed he said, informing that 7,000 workers were laid off at one industrial unit alone that has closed after it was destroyed by miscreants.

“If governmental indifference continued, repetition of such events could not be ruled out. When we contacted the government about the law-enforcing agencies’ role, they said: “We have insufficient number of the police and Rangers to control entire Sindh,” he added.

The government should include businessmen in meetings concerning law and order along with the police, as we are the party who has credible information and views to share with the government. This can be helpful at times of crisis, he demanded.

Shaikh Fazle Jalil, Korangi Association of Trade and Industry Chairman, said: “There is an accumulated loss of Rs20 billion only in Korangi Industrial Area.” Sixteen industrial units, 45 trailers loaded with cargo, 55 vehicles, 4 petrol pumps, 2 car showrooms, and 1 restaurant were torched in Korangi Industrial Area in the riots. “The death toll in the industrial area is now 9 and 16,000 workers have lost their jobs,” he explained while presenting the losses at Korangi Industrial Area.

Industry is the backbone of any country. Foreign businessmen are very fearful of the law and order situation in Pakistan; many of them say ‘your country lacks working environment’, said Masood Naqi, a former chairman of Korangi Association of Trade and Industry.

This has been the first time in the history of country that industrial areas were targeted, “we cannot do business in this environment, how can we invest and do business in this environment,” he said.

“Since, lumpen elements from kachi abadis (slum areas) close to industrial areas were involved in the recent riots, we demand that these slums be removed immediately. For whole two days miscreants looted and vandalised property in Korangi Industrial Area raising questions that there were certain forces using these slums for their own vested interests,” he added.

Dawood Usman Jakhura, Vice-Chairman of the Landhi Association of Trade and Industry, said: “We cannot link the post-Dec 27 riots to the assassination of Benazir Bhutto. The rioters were anti-social elements who found a good opportunity to plunder property in the absence of law enforcers. Engines were found missing from most of the torched vehicles in our industrial area.”

Chairman of the North Karachi Association of Trade and Industry Noor Ahmed Khan said: “We have suffered more than Rs53 million losses. Six factories were damaged. We have a significant number of small industries employing mostly semi- skilled women workers. Both the factory owners and the workers are now worried about their survival.”

Muhammad Idrees Gigi, Chairman of the sub-committee on Building Project of the Federal B Area Association of Trade and Industry, said: “We need to establish our security force to tackle such riots in our industrial areas.”

Businessman Mian Zahid Hussain, former Korangi Association of Trade and Industry chairman said: “We need crisis management in the country to avoid such incidents. The miscreants involved in the post-Dec 27 riots must be punished in accordance with law.”

Industrialists plan their own security arrangements

 

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Leather exports unlikely to cross $1bn ​

Saturday, January 05, 2008

LAHORE: The leather sector has lost all hopes of crossing the $1 billion export mark this fiscal year after a series of recent events from the assassination of former prime minister Benazir Bhutto to acute electricity crisis in the country.

The export of leather and its products, which reached $950 million last fiscal 2006-07, was earlier expected to cross $1 billion mark as exporters were getting a good response for their products from foreign buyers.

Leather industry experts pointed out that the month after Eid-ul-Azha was the most busy and productive period for the industry. During the three days of sacrifice of animals, the industry receives bulk and quality leather from the market.

In that period, they said, usually the industry collected 26 to 28 million pieces of sheep, goat and cow hides. “People choose healthy and strong animals for sacrifice,” an expert said, adding “during the rest of the year the animals slaughtered are not so healthy and strong.”

The experts said raw hide was treated with salt and lime to preserve it for tanning process which was performed at the tanneries. All hides were to be processed within a month of slaughter in cold weather and within shorter periods during warmer climate.

They said 20 days after the Eid had been a nightmare for the tanning industry because it remained closed for four days due to Eid holidays and then for another four days following Benazir’s murder. Now the industry has been forced to stop operation because of power shortage.

This year, they said, two million cows and 6.7 million sheep and goats had been slaughtered. Lahore Chamber of Commerce and Industry former vice president Sheikh Arshad, who was a leading hide merchant, said the industry closure had badly hurt the tanning process. “Hide is a perishable item and long load-shedding has damaged hides at different stages of tanning process.”

Explaining the tanning process, he said “hide is preserved immediately after slaughter through salting process followed by liming. After 10 to 15 days, it has to be desalted to start the tanning process during which hairs are removed. Then it is pickled chromed to bring it to wet blue stage. After this, the process of finishing is started.”

However, he said the hides rot at different stages of tanning and finishing due to frequent power shutdown. “This has badly impacted the quality of leather.” The experts feared that there would be acute shortage of quality leather in the market in the current year due to the recent chain of events which occurred at a crucial time for leather production.

They pointed out that 45 per cent export earnings came from the export of finished leather and 55 per cent from the export of value-added products like shoes, leather garments and leather gloves.

They said world famous shoe brands like Bali used Pakistani leather, adding the largest national shoe-maker exported its leather shoes and imported cheaper Chinese shoes for the domestic market. Even China imports quality leather from Pakistan. However, they warned the current situation would not be favourable for Pakistani leather mainly due to the damage caused to its quality by the frequent power shutdown.

Leather exports unlikely to cross $1bn

 

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Retail, foreign investors back on market, KSE gains 263 points ​

Saturday, January 05, 2008

KARACHI: Karachi stock market on Friday maintained its recovery drive in the second successive trading day and restored KSE 100-share Index well above 14,200 points level in a long leap.

KSE 100-share Index posted another increase of 263 points or 1.88 per cent and closed at 14,260 points. The 30-Index showed a massive gain of 410 points or 2.49 per cent and concluded at 16,890 points.

The cumulative gains of two consecutive sessions stand at 906.22 points (i.e. 6.78 per cent) from the colossal losses of 1,419 points (i.e.9.6 per cent), which were incurred in 100-Index following Benazir Bhuto assassination on Dec 27.

The recovery in this session was not as aggressive as it was in the previous session. However, about nine stocks hit or closed near their upper circuit breakers including two giant cement scrips i.e. Lucky Cement and DG Khan Cement.

Moreover, some of the heavy weight stocks again played important role in lifting market beyond 14,200 points level. The major contributors to the 100-Index included National Bank, Oil and Gas Development Company, Pak Petroleum, Pakistan Telecommunication Company, MCB Bank, United Bank and JS Co.

The highlight of this session was participation of retail and foreign portfolio investors on buying side, a leading analyst observed and added that in earlier session, majority of the accumulators were the local financial institutions.

“The participation from overseas and retail investors has restored confidence in market,” he further said.Another analyst said that the oil prices hovering around $100 per barrel, expectations of payouts in upcoming financial results announcements season and increased numbers of cement dispatches kept the stocks fundamentals intact.

Also, the leading political parties’ confirmation to take part in the rescheduled parliamentary election for Feb 18, 2008, did not allow bears to takeover trading sessions at the local bourse and kept sentiments bullish, he added.

Banking sector continued to lead the gainers on board, as investors showed buying interest in the overall scrips including second tier stocks with higher expected returns. MCB, NBP and UBL remained the major drivers gaining Rs16.40, Rs8.90 and Rs6.65 with NBP ending a volume leader amongst the sector, said S. Kashif Mustafa of ECL Research.

Oil and gas sector also remained in the limelight with giant ODGC index mover in the positive zone. Overall oil and gas scrips gained owing to international crude oil prices touching all time high of $100 a barrel with expected reflection of the prices on the local market, he added.

Owing to increased participation of investors the overall turnover in the ready market slightly surge to 288.081 million shares from 228.785 million shares changing hands a day earlier.The future market turnover also increased to 54.198 million shares as compared with 35.173 million shares of previous session.

The overall market capitalisation swelled by Rs87 billion and stands at Rs4.352 trillion. Plus signs continued to dominate the board as 206 stocks advanced against 100 stocks declined, while the value of 38 scrips remained unchanged with total 344 active counters in the market.

Highest volumes were witnessed in TRG Pakistan at 32.853 million closing at Rs14.45 with a gain of five paisa, followed by National Bank at 16.488 million closing at Rs233.50 with a gain of Rs8.70, DG Khan Cement at 15.575 million closing at Rs94 with a gain of Rs4.25, Arif Habib Securities at 13.478 million closing at Rs172.35 with a gain of Rs8.20 and Oil and Gas Development Company at 12.087 million closing at Rs121.45 with a gain of Rs2.40.

Retail, foreign investors back on market, KSE gains 263 points

 

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LSE continues to recover ​

Saturday, January 05, 2008

LAHORE: The astonishing recovery on the capital market continued into the second day on Friday with experts unable to explain the unusual buoyancy at a time when nothing concrete has occurred to warrant such speedy recovery.

The Lahore stock market closed at 4,545 points after gaining 120 points in its LSE-25 index during the day long trading on Friday. The trading volume was moderate at 31.1 million shares. The BOSI recording a turnover of 3.4 million shares was the volume leader.

There were 120 active companies whose shares were traded. Out of these the value of 49 increased, 17 declined with no change in 54 companies. Unlike yesterday the recovery was not spread in all sectors. The mutual funds remained under pressure. Some companies in investment banks sector went down while majority gained value. The commercial bank sector was largely positive. All the larger banks gained handsome value except ABL.

Performance of the insurance sector was mixed with bulls having slight edge over the bears. Cement sector companies improved their gains further only a few units ended the day on negative note. Refinery sector was completely bullish all refineries recording substantial gain on last working day of the week. The oil and gas marketing companies and its exploration sector helped push the index up. Even heavy weights like OGDC gaining well over Rs2 per share.

The experts remained confused about the unusual performance of the market. Some think that big players have picked the stocks available at low values. Others fear that this is a ploy to lure small investors who would not know what hit them when the big players would liquidate their stocks bought at low values in last two days at higher value.

LSE continues to recover

 

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Rupee touches new 6-year low ​

Saturday, January 05, 2008

KARACHI: The Pakistani rupee weakened to a fresh six-year low against the dollar on Friday as importers bought the US currency to clear payments, dealers said.

They said the rupee closed at 62.20/25, its lowest level since October 2001 when it was at 62.28/35. On Thursday, the currency had closed at 61.92/95. Dealers said rising import payments, especially for oil, and outflows from financial markets had boosted dollar demand.

“There is increasing demand for the dollar to clear payments,” said a dealer with a brokerage house. Short-term money rates rose on Friday as the central bank conducted a repo to mop up liquidity, dealers said.

Overnight call rates ended at 9.5 percent after hitting a low of 6 per cent. They had closed on Thursday at 4 per cent. Pakistan’s cental bank sold 10 billion rupees ($162 million) of Treasury bills on Friday under three-day repo contracts at 8.86 per cent to mop up funds from the money market.

Rupee touches new 6-year low

 

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Govt paying Rs14bn monthly subsidy on oil ​

Saturday, January 05, 2008

ISLAMABAD: The government has paid Rs14 billion monthly subsidy to keep the oil prices at a present level and provide solace to poor, caretaker Finance Minister Dr Salman Shah said.

Talking to Geo News on Friday he said global oil prices have increased to unprecedented level from $20 to $100 per barrel within a few years. The government will have no option but to ultimately pass on the increase to consumers as huge subsidy is increasing the budget deficit. He said food prices in the country are increasing at much cheaper rates of 10 to 11 per cent as compared to global increase rate of 20 to 25 per cent per annum.

Ultimately, food prices in the country will come in line with world food prices as current price spiral was a global phenomenon. As many as 1.5 million tonnes wheat were being imported from abroad to meet the supply situation. He said wheat is available in the country at Rs16 per kg while world price of wheat is Rs30 per kg. He said 35 per cent regulatory duty has been imposed on wheat product to check its exports.

He said the next government is going to inherit a very healthy economy. Economy is in very strong and solid position and it would continue to grow and prosper and if the country continues current policies.

Regarding electricity shortage he said power consumption in the country has increased extremely. The government is striving to enhance the production to meet the shortage. He stressed national consensus on building new dams to increase cheap power production in the country.

Govt paying Rs14bn monthly subsidy on oil

 

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Habib Bank unveils massive investment plan ​

Saturday, January 05, 2008

KARACHI: Habib Bank Limited has unveiled its worldwide investment strategy for the next five years and for the purpose the bank passed a special resolution with its shareholders’ consent at an extraordinary general meeting held the other day.

Accordingly, the HBL would increase its shareholding in Urumqi City Bank or in any other entity in China up to 20 per cent, the bank said in an official communique sent to the Karachi Stock Exchange on Friday.

The bank would also increase its shareholding in Diamond Trust Bank Kenya Limited, Kenya and equity in Diamond Trust Bank Uganda Limited and Diamond Trust Bank Tanzania Limited up to 26 per cent, and in Kyrgyz Investment and Credit Bank, Kyrgyz Republic up to 26 per cent.

Shareholders also approved to raise the bank’s stake in New Jubilee Insurance Company and New Jubilee Life Insurance Company up to 10 per cent in each company. The bank also received shareholders’ approval to enhance its investment in Habib Allied International Bank Plc, UK by up to 20 million pound and make capital investments in strengthening the bank’s international franchise in the international markets where the bank has presence or where the bank wishes to have its presence.

During the next five years, the HBL would restructure its shareholding in Platinum Habib Bank Plc, Nigeria to maintain a shareholding of up to 15.3 per cent, the resolution said. The bank would make an investment of up to Rs2 billion in the microfinance sector in an existing microfinance bank or participate in a new initiative. It would also invest up to Rs2 billion over the next three years in the leasing sector by establishing a dedicated leasing company.

However, the bank said all investments would be subject to approval of the State Bank of Pakistan and other regulatory approvals being taken (including Government of Pakistan if required, for overseas investment exceeding US$5 million or other limits prescribed).

The board of directors of Habib Bank are authorised to determine the manner in which and the time and price at which each investment shall be made provided that the equity investment would be made at the fair value of the equity at the time, said the notification.

The shareholders further ratified the investment made to date in New Jubilee Insurance Company Limited (at an average price of Rs103 per share for 5.3 million shares), New Jubilee Life Insurance Company Limited (at an average price of Rs51 per share for three million shares), Diamond Trust Bank Kenya Limited (9.8 per cent shareholding for approximately US$16 million) and Kyrgyz Investment and Credit Bank (at US$2.25 million for approximately 18 per cent shareholding) which had been authorised by the Board of Directors of the bank prior to the change in Section 208 of the Companies Ordinance 1984, the notification added.

Habib Bank unveils massive investment plan

 

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Load-shedding affects export orders ​

Saturday, January 05, 2008

LAHORE: Quaid-e-Azam Industrial Estate (QIE) President Mian Nauman Kabir has urged the government to take urgent measures to overcome the energy deficit as it is affecting the whole economy.

Chairing a meeting of the QIE board of management on Friday, he said unannounced load-shedding was hitting the industrial production hard. The country had not been achieving the export target for the last two years and if the situation remained the same, it would be very difficult to meet the target set for the current fiscal year, he added.

Kabir said more than 400 industrial units had started functioning at the QIE, out of which 70 per cent units were export-oriented. But these had not been able to execute export orders due to power outages.

He said the closure of those industrial units would deprive more than 40,000 people of their jobs while the government would also lose huge revenue. He said the government should take energy crisis very seriously and make both long-term and short-term plans to resolve the problem.

The long-term plan, he suggested, included utilising all hydel resources by building big water reservoirs and power generation units which was a cheaper way to produce energy. He said Pakistan should also go for alternative energy resources like other countries. Germany is producing more than 21,000 MW and India is generating more than 7,000 MW of power through wind energy. He urged the government to take immediate measures, otherwise the industrial sector would be fully destroyed.

Load-shedding affects export orders

 

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Cotton crop registers 17.75pc shortfall ​

Saturday, January 05, 2008

MULTAN: The new cotton crop at ginneries across the country has been recorded at 9.114 million bales till Jan 1, showing a shortfall of 17.75 per cent.

Last year the production on Jan 1 stood at 11.082 million bales. Initially the official production target of the silver fibre for the current season had been fixed at Rs14.10 million bales. Later, it was revised to 12.8 million bales. At the moment, 1,008 ginning factories are operating, 818 in Punjab and 190 in Sindh.

According to a report issued by the Pakistan Cotton Ginners Association (PCGA) head office here on Friday, arrival of cotton at ginneries in Punjab was recorded at 6.865 million bales, compared to last year’s 8.937 million bales.

Thus the shortage has been computed at 23.18 per cent. In Sindh, arrival of cotton was recorded at 2.248 million bales, as compared to 2.145 million bales last year. The excess has been computed at 4.84 per cent. The textile mill owners have so far procured 7.126 million bales compared to last year’s 8.943 million bales in Punjab and Sindh.

The exporters have purchased 80,800 bales till now compared to 76,650 bales last year. The unsold lint and Phutti stocks have been computed at 1.907 million bales compared to last year’s 2.062 million bales.

The approximate existing rate of good quality lint is at Rs3, 200 per maund and that of seed-cotton or Phutti is at Rs1, 550 per 40 kg. The government’s support price for Phutti is at Rs1, 050 per 40 kg.

Cotton crop registers 17.75pc shortfall

 

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IA, PPA signed for 400 power projects ​

Saturday, January 05, 2008

ISLAMABAD: Financial closure has been achieved by two power projects of the Mansha Group, Nishat Power Project and Nishat Chunian Power Project, of 200MW each. Earlier, the group signed the Implementation Agreements (IA) and Power Purchase Agreements (PPA) of both these projects in the last quarter of 2007.

The projects are being set up at the Kasur district near Lahore. The signing ceremony was held at the Private Power and Infrastructure Board (PPIB) office, attended by Mohammad Yousuf Memon and other senior officials from the PPIB and project companies, said a press release. The sponsors of Nishat Power Project are Nishat Mills Ltd and those of Nishat Chunian Power Project are Nishat Chunian Ltd, both owned by Mian Mohammad Mansha.

Lenders of both the projects are a consortium of commercial banks including Habib Bank Ltd (HBL), Allied Bank Ltd (ABL), United Bank Ltd (UBL), Standard Chartered Bank (Pakistan) Ltd (SCB) and Faysal Bank Ltd (FBL) being financial advisor and lead arrangers.

The estimated cost of both the projects is $204 million each and they are targeted to be commissioned by June 2009 and December 2010, respectively. With the financial closure, a total of eight projects with accumulative capacity of 1,667MW has achieved financial close under the 2002 power policy expected to be commissioned by the year 2010, it is a very positive sign showing increase of interest of the investor community in the power sector of the country.

IA, PPA signed for 400 power projects

 

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Fighting money laundering: ADB to help SBP set up Financial Management Unit​

ISLAMABAD: Asian Development Bank (ADB) will assist State Bank of Pakistan (SBP) to strengthen the anti-money laundering regime including effective consolidation of AML/Combating Financing of Terrorism (CFT) monitoring and analytical measures within a single financial intelligence unit.

An international consulting firm will be engaged to provide services pertaining to setting up of a Financial Management Unit in the State Bank of Pakistan in this regard, stated detailed Terms of Reference (TORs) developed for the hiring of the services of international firm and experts for Support to Governance Reforms in Pakistan “Strengthening Anti-Money Laundering Regime in Pakistan.”

Qualified consulting firm to be appointed that is capable of providing the experts like Anti-Money Laundering Expert, Forensic Accounting Expert, Financial Intelligence Unit Database Expert, Law Enforcement and Legal Expert, Securities and Banking Expert, Assist in the establishment of the Financial Monitoring Unit (FMU) in the State Bank of Pakistan (SBP) in accordance with the new Anti-Money Laundering (AML) Law.

The Asian Development Bank (ADB) has approved the provision of a technical assistance cluster (TAC) to the Government of Pakistan for a value of $11.5 million for “Support to Governance Reforms in Pakistan.” The TAC is being financed by the Department for International Department (DFID), UK and provides a flexible financing mechanism to support a range of ongoing governance-related initiatives in Pakistan.

On the request from the SBP, a subproject titled “Strengthening Anti-Money Laundering Regime in Pakistan” is being financed from the TAC under the sub-cluster Accountability, Transparency and Anticorruption. A consulting firm will be hired under this subproject, to set up a Financial Management Unit in the SBP. Selected firm and experts also to assist in elaborating the roles, functions and organization of the FMU, including preparation of an organization chart; providing recommendations on FMU staffing (number of staff and position/title) for each of the years 2008 and 2009 and projected for subsequent periods. It will prepare draft standard operating procedures for FMU staff.

It will develop mechanisms for effective cooperation and collaboration among the concerned regulatory and law enforcement agencies, review compliance requirements for banks and non-bank financial institutions under the new AML Law, and, in consultation with SBP and concerned agencies, draft implementing regulations for the new AML law (draft amendments as needed); provide technical advice with respect to AML practices, systems, and programs that should be instituted to ensure compliance with the AML Law.

It will prepare, in consultation with SBP staff, draft Memoranda of Understanding (MOUs) between the FMU and other jurisdictions in accordance with IOSCO principles and best international practices, and assist the FMU in developing coordination mechanisms and procedures for mutual assistance programmes.

Daily Times - Leading News Resource of Pakistan

 

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Benefiting from WTO framework: Participants emphasise enhancing productivity​

ISLAMABAD: The Ministry of Food, Agriculture and Livestock (MINFAL) on Friday stressed on enhancing agriculture productivity of all crops so as to get maximum benefits from the World Trade Organisation (WTO) framework.

Pakistan Agriculture Research Council (PARC) and other agriculture related institutions were asked to find out a new mechanism for enhancing agriculture production not only to meet domestic requirement but also for export purposes. Secretary MINFAL Ziaur Rehman expressed these views while addressing in the concluding session of 3-day workshop.

Despite having 23.3 million tonnes of wheat production during 2006-07, government is importing the commodity at a high cost of above $500 per tonnes, he added. Instead of gaining from bumper wheat production, the country is losing the market. The wheat production in the current year was above the country’s domestic requirement but still the government is importing wheat at higher cost.

The MINFAL secretary suggested more incentives for farmers so that they would encourage for increasing their productivity. He assured the participants that the government would encourage farmers through international policies and steps would be taken to keep agriculture produce prices stable in the market. However, he said that researchers could play vital role in increasing agriculture production not only to feed local population but also for export surplus.

Unlikely, the secretary said that in the first half season there was glut (excess of supply over demand) and farmers were paid nominal. While in the second half season, there was shortage of the commodity and the government imported the same commodity on higher prices.

To meet the WTO challenges, he asked local growers and processors to meet international standards in lab system and grading system. If surplus production occurred but was unable to meet international standards, then no country would be ready to purchase it. He stressed for maintaining hygienic standards.

The MINFAL secretary stressed for strengthening the WTO cell in the ministry. He appreciated the ministry for organising the seminar on such important topic. Earlier, the participants were informed about WTO negotiations and agreements on agriculture in detail. Main objective of the seminar was to inform policy makers about development occurred in WTO and position of Pakistan in it.

Daily Times - Leading News Resource of Pakistan

 

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Pakistan, Iran discuss oil, gas sectors co-operation​

ISLAMABAD: Minister for Petroleum and Natural Resources, Mr Ahsanullah Khan said there exists tremendous scope for promoting Pak-Iran ties in the oil, gas and mineral sectors and invited the Iranian companies to participate in the upcoming petroleum projects for learning a lot from each others’ experience.

Iranian ambassador, Mr Mashallah Shakeri called on Ahsanullah Khan here Friday and discussed with him matters pertaining to promoting bilateral cooperation in the oil and gas sectors.

During the meeting both sides have expressed satisfaction over the pace of progress on IPI gas pipeline project and reiterated the desire of their leaderships for its early implementation for the benefit of the entire region.

The Minister said that the government is taking concrete steps for exploiting the untapped hydrocarbon resources, spanning over 627,000 sq. kms sedimentary area in order to meet the speedy socio-economic growth in the country. He said that further onshore and offshore blocks would be opened for enhancing the oil and gas exploration activities in the country, which would provide enormous investment opportunities for the investors.

Expressing his sentiments, the Iranian Envoy said that IPI gas pipeline project would not only open up new avenues of cooperation among the member states but also help to bring the regional countries closer. Secretary petroleum Farrakh Qayyum was also present during the meeting.

Daily Times - Leading News Resource of Pakistan

 

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Power Plant : Mansha group achieves financial close​

ISLAMABAD: Private Power Infrastructure Board (PPIB) and Mansha Group signed financial closing documents for commissioning of 400 MW power projects worth $408 million here on Friday.

According to an official statement issued here financial closure has been achieved by the two power projects by Mansha Group, namely Nishat Power Project and Nishat Chunian Power Project of 200 MW capacity each. Earlier, the company signed Implementation Agreements (IA) and Power Purchase Agreements (PPA) of both these projects in last quarter of 2007. The projects are being set up at Kasur district near Lahore.

The signing ceremony was held at PPIB office, and was attended by Mohammad Yousuf Memon and other senior officials from PPIB and the project companies.

The sponsors of Nishat Power Project are Nishat Mills Limited and those of Nishat Chunian Power Project are Nishat Chunian Limited, both owned by Mian Mohammad Mansha, while lenders of both projects are the consortium of commercial banks including Habib Bank Limited (HBL), Allied Bank Limited (ABL), United Bank Limited (UBL), Standard Charted Bank (Pakistan) Limited (SCB) and Faysal Bank Limited (FBL) being Financial Advisor and Lead Arrangers.

Daily Times - Leading News Resource of Pakistan

 

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Deficit in services trade surges to 33% in July-Nov 2007-08​

KARACHI: The deficit in services trade widened phenomenally by almost 33 percent during the five months of current fiscal year over the corresponding months of last year because of double digit in import of services.

During July-November 2007-08, services imports grew by 18.43 percent against the exports, which posted 7.13 percent growth over the same period of previous year, latest statistics showed the on Friday.

Trade deficit totaled at $7.221 billion in the period under review compared to $5.439 billion in the same months of previous year, which analysts believed to swell further in the remaining part of this fiscal year because of recent chaos and violence, which hit the economy badly.

Services export stood at $7.381 billion during the said period over $6.890 billion of the previous year while imports were $14.603 billion against $12.330 billion of the last year.

In month of November, deficit in trade of services also grew by 15.71 percent to $1.618 billion over $1.398 billion in the same month of last year. Exports during the month grew by 12.28 percent to $1.543 billion against $1.374 billion of the previous year. And imports were up by 14.01 percent to $3.162 billion in month of November as compared to $2.773 billion in the corresponding month of last fiscal.

Services trade deficit, however was narrowed down by 18 percent as it shrunk to $1.618 billion in November of this year against $1.976 billion in preceding month of October with exports growing over nine percent during the month, imports slid by 6.59 percent compared to October of this fiscal.

According to analysts of foreign trade, like goods trade, services sector has also been hit hard by the assassination of former Prime Minister Benazir Bhutto and ensuing violence and riots in the country, which has distorted the image of the country badly abroad.

“The consequences of the current disturbances and chaos would be felt in the coming days when the services exports are feared to bear its brunt as particularly tourism sector would be major victim, which brings considerable foreign exchange for the country,” the analysts noted.

Country’s service exports comprise of transportation, travel, communication, transportation, financial, information technology and government services with the last having a major share in overall exports.

However, services export is confronted by the issues like quality, acceptance of professional qualifications, visa restrictions and above all the image of the country in the world, they pointed out as well as the tariff and non-tariff barriers are also big hurdles in the way of Pakistan’s service providers to penetrate in the international market.

Daily Times - Leading News Resource of Pakistan