Pakistan Economy - News & Updates - Archive

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Exports can go up to $100 billion

KARACHI (April 02 2006): Federal Commerce Minister Humayun Akhtar has said that Pakistan's exports can go up to $100 billion through a co-ordinated effort by different ministries.

In an interview with Aaj TV, he said that Federal Industries, Food and Agriculture and Information Technology Ministries could help the Commerce Ministry a lot in achieving this feat.

The minister said that the government was not alarmed at the continuously widening trade gap as it was only one of the many components of balance of payment, "which is satisfactorily under control right now".

The minister said that the Commerce Ministry should not be thought as solely responsible for the widening trade gap. He said that trade policies mostly influence exports of a country while imports are influenced by the overall economic policy of the country.

He said that the monetary policy of a country plays a major role in imports. The government had liberalised the monetary policy of the country because of which exports became cheaper and therefore increased manifold. If the government would tighten the monetary policy, imports would start falling the next day, he said.

He said that if the industrial and agricultural sectors of the country start producing surplus exportable goods, the Commerce Ministry "is ready to find markets for them". Citing an example he said his ministry found markets for export of wheat, and did export it for some time. But then it came to know about the shortage of wheat in the country to the extent that Pakistan needed to import wheat in the end.

"When we could not provide wheat to our just-found markets, we lost these markets for good. Through a co-ordinated effort, we can increase our exports to $100 billion," he added.

Humayun said that exports would rise by about 20 percent this year and the exports target would definitely be achieved. He said that the government was trying to diversify exports, "and that is why the share of textiles in total exports has been reduced from 68 to 59 percent". Textile sector was performing well, but the weaving sub-sector still needed further improvement, he added.

The minister said that progress in engineering sector was necessary for rapid growth of exports. The privatisation of Pakistan Steel Mills and establishment of steel mills in the private sector would give impetus to this growth, he said. The government was trying to rectify the fundamentals of this sector so that it could play its part in the national economy, he added.

http://www.brecorder.com/index.php?...&term=&supDate=

 

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Over 4500 people to get job opportunities at Al-Tawairiqi Steel mills project worth $ 300m: Dr Bilawal

KARACHI, March 29 (Online): Al-Tawairiqi Group of Companies is in process of establishing the state-of-the-art Steel Mills over 220 acres of land at Bin Qasim, where over 4500 people will get job opportunities .
Addressing a press conference at a local hotel on Wednesday, Chairman Al-Tawairiqi Group of Companies Dr Bilawal Tawairiqi said, in first phase direct reduced iron (DRI) plant with capacity of 1 million direct reduced iron will be completed in next 18 to 24 months costing around $ 130 million .

In phase two with an additional expenditure of $ 170 million, the plant will start making steel billets, wire rods, heavy structures, seamless pipes and other construction material. Tawairiqi Steel Mill project will cost of $ 300 million with production capacity up to 1.5 million tons of iron products annually, he said .

Using the world's most advanced DRI technology, the plant will produce the direct reduced iron through the MIDREX process for a conversion further into steel through the electric Arc Furnace technology .

Al-Tawairiqi Group of Companies (ATG) is one of the leading business concerns in Saudi Arabia and the largest private sector steel producer in the Kingdom .

With an annual turnover of 1.5 billion Saudi Riyals, the group is among the top five industrial companies in private sector in Saudi Arabia .

It has seven large industrial units in Saudi Arabia and UK, five of these units are metallurgical and steel plants .

Founded in Saudi Arabia in 1977, the group is now a leading industrial conglomerate in the Kingdom, producing billets, rebars. Wire rods, spring wires, wire mesh, epoxy coated steel, medium voltage electric switch gears, protection and control panels, automation panels and compact sub stations .

ATG's trading arm deals in a wide range of industrial supplies, building materials, and high tech medical equipment .

Its three mega steel projects, one in Dammam, one Sharjah and one in Pakistan currently are in progress .

 

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Expo 2006 visitors discover real Pakistan

By Afshan Subohi

KARACHI, April 1: The warm reception accorded to the Expo Pakistan 2006, currently in progress at Expo Centre in Karachi, by the foreign businessmen, only goes to reconfirm the fact that Pakistan has an immense export potential in both traditional and non-traditional items. All that needed — is a proper introduction to international business players and some space for private sector for matchmaking with business houses of the West.

A review of the 5-day mega event showed that businessmen and their representatives were quite excited and pleased with the commerce ministry’s performance this year.

The commerce ministry with the support of Export Promotion Bureau (EPB) is primarily responsible for putting up the show.

Unlike last year, there are believed to be many genuine potential western buyers of Pakistani products in attendance this year. Four days into the exhibition and the private sector of Pakistan has already signed a number of MoUs with visiting trade teams. It was learnt that many business houses and associations had been approached by representatives of international business houses in the city to make inquiries in order to evaluate different business options.

Some of the foreign delegates asked for their impression by Dawn, appeared quite satisfied with the arrangements and were all praise for Pakistani hospitality. They found the country to be a lot better than the way it is projected in international media. “We only discovered the real Pakistan when we disembarked the flight,” said a representative of a major business group. “Frankly, we carried a scary image of your country,” he said and added that he was not aware of what they were missing out.

“My colleagues and I are impressed by the quality of exhibits at the expo and are looking forward to forging a long term business relationship with Pakistani entrepreneurs and traders,” he said.

The local business community is expecting many new trade and business relationships to materialize as there is a lot of match-making taking place on the sidelines of the expo. It would take about a year’s time before the actual gains to the local businesses and to the Pakistani economy accrue. Business leaders are, nonetheless, satisfied with the show: “The outcome is far better than what we expected,” Ameen Bandukda, Chairman Site Association of Industry said commenting on the Expo.

He confided that the community was initially sceptical since the previous exhibition was not able to attract the kind of crowd from abroad that business people were expecting.

One of the reasons, they thought, was that last year the event’s organization was handed over to an agency that probably mismanaged the show. “The government can not and should not do it alone. It is a business event and its success to a great measure will depend upon the level of involvement of direct market players,” said the chairman SITE Association. This year the government did well to involve trade associations and exporters in the organization of the event.

The business community attributed the proper performance of the Expo to a number of factors. “In my view three major factors that contributed to the success are: one, inducting the private sector in the organization; two, efforts by the government to avoid mistakes of the last year; three, very effective performance of commercial councillors of Pakistan in Western countries,” say Atiq A Kochra, Zonal Chairman of the Pakistan Readymade Garment Manufacturers and Exporters Association (Prgmea). He observed that there was no doubt in his mind that Pakistan had the potential and given an enabling environment the private sector can work wonders for the country.”

Some textile associations have reportedly booked certain halls in hotels, where the delegates are housed, to facilitate their members to make one to one contacts with the visitors.

Zaid Bashir, the CEO of Gul Ahmed Lawn, who is exhibiting at the expo, expressed some reservations. He said: “We have mostly management people here and not the decision-makers. It would be unrealistic to expect too much from them,” adding: “We should target the right people to make most out of this exercise.”

Some businessmen were also critical of the government for unnecessarily politicising the event. “We have a tendency to transform everything into a political affair. If the government wanted to honour the delegates it could have been done in some other way. Too much involvement of the political hierarchy in a business event only leads to frustration and time loss. Who likes to wait for the identification for hours, to listen to lengthy boring speeches, or for that matter, how could a fashion show exhibiting Eastern dresses in day-time amuse Westerners. They do not. These delegates are here to make business contacts and establish business relationships, the government should let them do what they are here for and should not tax their patience for accepting an invitation,” said an angry businessman who did not approve of the VVIPs presence, which he felt, was more of a hassle.

Another marked feature of the exhibition was absence of businessmen from Saarc region. There are delegates from US, Sweden, France, Germany, Canada and several other far off nations but none from India, Bangladesh, Nepal or Sri Lanka was spotted. “They are our competitors and not buyers primarily. However, it would have been good had they been here as well. Indians must be interested but there still are procedural problems that act as a discouraging factor,” Amin Bandukda felt. “May be it reflected the old mindset of looking Westward even when more can be achieved at much lesser cost by trading in the region,” commented another businessman.

Weighing benefits against costs, the local business community generally felt that even if a handful of major deals are done, the event would be worth its while.

 

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Sunday, April 02, 2006

KARACHI: An agreement was reached on Saturday between the Pakistan-China Business Council (PCBC) of the FPCCI and the China Council for Promotion of International Trade (CCPIT) to hold the second joint meeting of Pakistan-China Business Council in China on a mutually-agreed date this year.

The agreement was reached between Syed Mazhar Ali Nasir, Chairman of the PCBC, Wang Zhingzhen, Assistant Chairman of the CCPIT, in Beijing at a meeting held in Federation House, Karachi.

Mr Nasir, who led the PCBC team, also announced that the site for the opening of FPCCI Liaison Office in China will be selected within one month and advertisement is being placed for hiring a Chinese national well conversant with English.

He said that the joint meeting of the PCBC would identify problems and bottlenecks being faced by the businessmen of Pakistan and China in promoting bilateral trade, which would be submitted to the respective governments for removal.

Shahid Mehmood, commercial counsellor of Pakistan in China, made a presentation on the Pakistan-China Early Harvest Programme under the Free Trade Agreement, which was signed in April 2005 and became effective from January this year. Under EHP, a common list of 31 four-digit items and unilateral lists of 52 four-digit items have been agreed.

The items in the common list whose tariff was more than 15 percent will be reduced to 10 percent in 2006, 5 percent in 2007 and 0 percent in 2008; while the items in the unilateral lists whose tariff was between 5 and 15 percent will be reduced to5 percent in 2006 and 0 percent in 2007 while 575 items under the PTA whose duty was less than 5 percent will be reduced to 0 percent in 2006.

He mentioned that the common list under the EHP includes fruits and vegetables (mangoes, citrus, dates, garlic, etc.), stone material etc, while unilateral list for Pakistani products includes guar gum, industrial alcohol, cotton and blended fabrics, home textiles, instruments, cutlery, sports goods, etc. The unilateral list for Chinese products include machinery items and chemicals.

Wang Zhingzhen, assistant chairman of the CCPIT, said that Pakistan and China enjoy friendly relations and hoped that economic cooperation and trade between then will grow in coming years.

He said that the bilateral trade, which was $1 billion in 2000, had increased to $4.2 in 2005 and investment of $100 million had been made by Chinese companies in Pakistan, which was not a big amount but there was potential for higher growth. He said that with the implementation of open-door policy the business environment has improved in China. Over 3,000 laws will be modified.

According to a survey, 80 percent of the American investors in China feel comfortable. The taxes in China have been gradually reduced. Now tax on agriculture was 15% and on industry 9 percent. Under the economic plan approved by the Chinese Congress, the annual GDP growth of 7.5 percent will be maintained and energy consumption will be reduced by 20 percent in the next five years.

He said that $50 billion investment was made in 10,000 projects by China last year out of which $6 billion investment was made in Asian countries.

He said that the total imports of China in the last five years amounted to $2.2 trillion and it was projected that the imports will increase to $5 trillion in the next five years, out of which $3 trillion imports will be from Asia.

He said that China has a huge domestic market of 1.3 billion people. Over 300 million people came out of poverty last year while 20 million people are still below the poverty line while there are 16 million disabled persons.

 

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Sunday, April 02, 2006

ADB to give $770m for $2.3b highways’ uplift plan

ISLAMABAD: The Asian Development Bank (ADB) will provide $770 million for the $2.3 billion National Highways Development Programme (NHDP).

The investment programme comprising the first three batches to be implemented amounts approximately to $966.8 million equivalent, according to the report and recommendation of the president to the Board of Directors of ADB for the proposed Multitranche Financing Facility and Loan for National Highway Development Sector Investment Programme.

The investment programme is structured into three batches of sub-projects. The first batch comprises three sample subprojects totalling 376 kilometers, the second batch five sub-projects totalling 460 km. The number of subprojects under the third batch has not yet been determined.

The ADB financing would be based on Multitranche Financing Facility (MFF) of up to $770 million from its ordinary capital resources. The MFF is expected to be drawn down in five separate periodic financing request (PFRs) during the 2006 to 2011 period.

The loan will have a 32-year term, including a grace period of eight years, an interest rate of 1% per annum during the grace period and 1.5% per annum thereafter, and such other terms and conditions as set forth in the relevant draft loan and project agreements.

In 2005, the government approved a Medium-Term Development Framework 2005–2010 (MTDF) targeting key infrastructure sub-sectors. Roads, railway systems, ports and airports are some of the priorities.

The investment programme under the framework will not only help modernize existing facilities, but will also add new assets. The outcome will be greater and better connectivity within and across the country’s principal economic centres and into neighboring countries.

This will pave the way for greater and better logistics, which in turn will improve access to export points, people’s mobility, trade and competitiveness. Better logistics will also cut the final cost of goods and services.

The projected capital outlays from the National Highway Authority (NHA) over the next 10 years runs into Rs138.5 billion ($2.3 billion). The ADB is one of the financing sources being tapped by the authorities. Others include the private sector through the structuring of various investments under the modality of Private-Public Initiatives (PPIs), commercial banks and other multilateral and bilateral agencies.

The investment programme includes non-investment interventions, especially in the area of capacity building. This support will focus on planning and design, management supervision for construction schedules, procurement, safeguards, and fiduciary arrangements. The work will also cover policy reform. The sector roadmap provides for public policy changes during the investment programme.

Impact and Outcome: The investment programme will improve the existing road network, create new ones and advance policy reform. The latter will create an enabling environment for private sector participation in the system. The main reforms are summarized in the Road Sector Development Framework. This framework has been endorse by the NHA and will trigger future lending by the ADB to Pakistan’s national highway sub-sector.

The Investment Programme will deliver on two basic objectives. The first is improvement in transport efficiency by (i) adopting a national transport policy, (ii) strengthening the NHA performance in managing the national highways’ network, (iii) improving road safety, and (iv) improving road maintenance and funding.

The second objective is to increase the private sector participation in road sub-sector investments by (i) increasing outsourcing of road works, and (ii) establishing operations jointly with the NHA. To realize these objectives, the Investment Programme will consist of national highways’ network investment and institutional strengthening of the NHA.

The NHA will establish an investment programme coordinating committee, chaired by the NHA chairperson, to monitor and oversee the overall investment programme implementation. The NHA will establish two management units, one for implementation of the national highways’ improvement component and the other for implementation of institutional strengthening of the NHA.

Pakistan is ideally located to act as a hub for sub-regional transport and to take advantage of the sub-region’s rapidly improving political situation for the development of transit and cross-border trade and commerce. Pakistan’s road corridors offer the shortest route to the sea by several hundred kilometers for landlocked Afghanistan, Central Asia, Xinjiang province of the People’s Republic China, and parts of the Russian Federation. However, physical, institutional and other constraints currently prevent Pakistan from taking full advantage of its location.

The potential for increased trade through improved trade facilitation, rehabilitated transport links, efficient cross-border movements and increased efficiency at ports is highly significant for the Pakistan economy.

The proposed Investment Programme provides Pakistan with an opportunity to play the role of a catalyst in the development of such transport initiatives, thereby enhancing sub-regional cooperation in addition to promoting its domestic development.

http://www.dailytimes.com.pk/defaul...2-4-2006_pg5_13

 

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DATED:, April 01, 2006
Pakistan on Friday sought civilian nuclear cooperation from France, which concluded a civilian nuclear agreement with India in February this year.

Pakistan made the call in a meeting with a visiting four-member delegation of the French Senate commission for foreign affairs, defense and armed forces, headed by Jean Francois-Poncet, former foreign minister. The French delegation called on Pakistani Foreign Minister Khurshid M. Kasuri in the foreign office.

In a statement at the end of the meeting, the foreign office said, "The foreign minister also briefed Francois-Poncet about Pakistan's growing energy requirements in view of its rapid economic development and stressed the need for a non- discriminatory approach by all Nuclear Suppliers Group members including France towards cooperation with Pakistan in the civilian nuclear sector."

A wide range of bilateral issues were discussed with a view to enhancing cooperation in different areas and the Pakistani foreign minister briefed the French delegation on Pakistan's role as an anchor of peace and stability in the region, it said.

Francois-Poncet, appreciating Pakistani President Pervez Musharraf's vision of Enlightened Moderation, commended Pakistan's role in promoting peace and stability and rooting out extremism from its society, the statement said.

He also appreciated Pakistan's impressive economic development and stated that Pakistan was playing a credible role in regional peace, security and development, it said.

He maintained that Pakistan can be a bridge between the West and the Muslim world to create better understanding and cooperation between the two, according to the statement.

 

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ISLAMABAD (April 03 2006): The United States through USAID will provide more than $1.5 billion in development assistance to Pakistan over the next five years to improve education, health, governance and economic development.

United States Agency for International Development's Disaster Assistance Response Team (Dart) completed its portion of the earthquake relief assistance to Pakistan on March 31 and will continue to provide transition and reconstruction assistance designed to help those in the affected areas rebuild their homes and livelihood.

"Just as we were here with the US military and the Dart to help the government of Pakistan with the disaster-relief phase, we would continue to be a long-term partner to the government and the people of Pakistan in reconstruction phase," said US Ambassador to Pakistan Ryan C Croker, in a press release here on Sunday.

The statement added that USAID portion of the US humanitarian assistance to date has totalled more than $80 million, which is part of more than $510 million US commitment that includes $200 million for reconstruction during the next four years.

According to the release, USAID will continue to work with Pakistani officials at all levels. The UN agencies and international NGOs would also support transition and reconstruction efforts focussing on education, health and livelihood.-PR

 

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SIALKOT (April 03 2006): The Punjab government is spending more than Rs 160 million during current fiscal year on the upgradation of existing industrial estates of Daska, Gujrat, Gujranwala and Sargodha.

Official sources told Business Recorder here on Sunday that under the programme missing facilities would be ensured in Daska, Sargodha, Gujrat and Gujranwala industrial estates aimed at facilitating the local business community.

Besides this the government has decided to initiate the 'Cluster development' scheme for imparting training and skill development to industrial workers in various trade fields. The step was being taken for the promotion and increasing manufacturing capacity of industrial sector of these cities.

The government has set aside Rs 8 billion for extending loan facilities to SMEs and other interested persons who are willing to start new industrial projects in the province. Under the programme loan facility upto Rs 5 million was available on 8.5 percent mark-up for upgradation of existing industrial units and for setting up new industrial projects in the province, the sources added.

 

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'Lahore-Sialkot motorway to boost Punjab's economy'
LAHORE (April 05 2006): Punjab Chief Minister Chaudhry Perviaz Elahi, while announcing the construction of motorway from Sialkot to Lahore in a Punjab Cabinet meeting on Tuesday, has said that this six-lane motorway, which would be completed during 2007, between two important industrial centers of Punjab would give an impetus to economic activities in the province.

According to an official, the meeting decided to take a number of steps for the welfare of the people and to accelerate the pace of ongoing development process. These measures include construction of an international standard motorway from Sialkot to Lahore, action on war footings against manufacturing and sale of spurious drugs, activating of provincial and district price control committees to monitor and maintain prices of daily use items as well as construction of a modern sports city in the provincial metropolis.

The Chief Minister said that the proposed motorway would pass through Gujranwala and would be linked with Gujrat, Wazirabad, Muridke and other industrial centers through highways.

"This first motorway of its kind in the country could be aptly termed as 'Shahrah-e-Sanat' and it would reduce the distance between Sialkot to Lahore to only 45 minutes. After construction of the proposed motorway, more such projects would be initiated in the province.

The purpose of this mega project is to facilitate export of the products grown or produced in Punjab and as such it would leave a positive impact on the economy of the whole country.

Referring to manufacturing and sale of spurious drugs, he ordered action on war footings against the elements involved in this heinous trade as they deserve no leniency. He directed that raids be conducted against those engaged in the sale or manufacturing of spurious drugs and such factories should be immediately closed down where injurious medicines are being produced.

He further said that drug stores and pharmacies, which sell bogus medicines, are equally guilty. He directed the administration to ensure strict implementation of the laws regulating sale of medicines and the licenses of all such medical stores should be cancelled that are operating under the name of only one qualified dispenser.

He further directed that government hospitals should purchase medicines from only those firms which guarantee their genuineness.

He also directed that price control committees be fully activated in the province for stabilising the prices of essential items.

"These committees to be headed by District Nazim of the concerned district, are being reconstituted and would hold their meetings on daily basis. I would personally receive reports of these committees and monitor their performance."

Regarding provision of health facilities to the masses, he said that the Punjab government is spending a sum of Rs 6 billion for this purpose and the major share of this amount would be spent in rural areas.

He averred that due to better facilities for the doctors serving in rural areas the number of willing candidates has raised manifold and 25 additional marks would be given in Punjab Public Service Commission interviews to doctors having two years service in villages.

The meeting also decided medical check up of all school-going children twice a year. The CM said that this decision would help early diagnosis of diseases.

The Provincial Cabinet also gave approval for setting up of a sports city in the provincial metropolis over an area of 3,000 acres. An amount of Rs 30 billion would be spent on this project, which would be undertaken through foreign investment under public-private partnership.

The meeting was informed that the services of only those experts would be acquired for this project who had undertaken construction of such sports centers in Dubai or western countries.

The Chief Minister said that after the construction of sports city, Pakistan would be able to host Asian games and other international competitions.

The meeting also decided to award proprietary rights to the residents of Herbanspura village. According to the decision, land would be allotted at the rate of Rs 600,000 per kanal to those living on 10-marlas of land. The CM would give away documents of proprietary rights to the residents at a public function to be held shortly.

The meeting also offered 'Fateha' for eternal peace of Muhammad Tahir MPA, who had died recently.

 

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BEIJING (April 05 2006): Governor of the Xinjiang Uyger, autonomous region of China, Ismail Tiliwaldi has said his government will establish rail link with Pakistan to expand the avenues of bilateral co-operation in socio-economic sectors.

"We will soon hold a feasibility study to work out possibilities of operating rail network between the two brotherly countries through Kashgar," he said during his meeting held in Urumqi with the visiting delegation of Pakistan Muslim League (PML), led by Senator Mushahid Hussain Sayed.

China, particularly its western region (Xinjiang) attached great importance to its socio-economic ties with Pakistan and wished to have greater interaction to strengthen their mutually beneficial co-operative partnership, he added.

The two sides agreed that the western region envisaged rich potential to emerge as hub of Sino-Pak business activities, with further development of the road, rail and air network.

Pakistan and China have already decided to start a regular bus service between Kashgar and Gilgit on daily basis from June 1. Two countries will also start goods transportation service via Khunjrab pass from May 1.

Pakistan International Airlines and China Southern Airlines are also operating their flights on this route on regular basis.

The Xinjiang, Muslim-majority region has 17 ports open to the outside world. The region, also linked through old Silk Route could provide tremendous boost to economic collaboration at regional and international levels, said Mushahid Hussain.

Talking to newsmen, he said the two sides had bright prospects to strengthen their strategic partnership in various sectors, including trade, energy and defence.

He termed his visit to China as highly successful further strengthening the bonds of friendship. A framework of co-operation and regular exchanges has been worked out between the PML and Communist Party of China.

 

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Government to facilitate investors in setting up refineries: minister
ISLAMABAD (April 05 2006): Minister for Petroleum and Natural Resources Amanullah Khan Jadoon has said the government would encourage and facilitate local and foreign investors in setting up oil refineries in the country aimed at enhancing the existing 12.7 million tons per annum capacity to 16 million tons.

He said this while presiding over a high level meeting of Chief Executives of Oil Refineries here on Tuesday to review the updated progress of the refining sector.

Secretary Petroleum Ahmad Waqar, Additional Secretary Shaukat Hayat Durrani, Director General (Oil) Sabir Hussain, Chief Executives of Parco, ARL, NRL, PRL and Bosicor Refineries attended the meeting.

The minister said setting up new refineries in the country is the need of the hour to bridge the supply and demand gap in the refining sector.

He outlined the need to utilise the latest technology and know how for enhancing the local refineries production and to minimise the imports.

He said the government has deregulated and liberalised the petroleum sector and providing lucrative incentives to the investors in a business friendly environment in the country.

The minister said in view of the government's policy of deregulation, the prime objective was to develop market competition. Therefore, refineries should also improve their efficiency in supply of quality products to the consumers as well as to compete in the existing deregulated regime.

He said refineries should upgrade to produce international standards like low sulphur content to HSD and fuel oil.

Jadoon said refineries must ensure supply of their products to the oil marketing companies indiscriminately and hydro-desulphurisation and pipeline infrastructure projects be started as early as possible with a time frame to curtail its construction costs.

The chief executives of the refineries briefed the meeting about the updated progress and future development plans of their organisations.

It was informed that new refineries under construction were expected to start production by the year-2008.

They informed that hydro-desulphurisation and pipeline infrastructure projects were in process and all out efforts were being made to kick of as early as possible.

 

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ISLAMABAD (April 04 2006): Attock Oil Refinery (AOR) will lay down white oil pipeline from Machi, Lahore to Talu Jhapa, Peshawar at an estimated cost of 180 million dollars. The project will be completed within two years.

Talking to journalists here on Monday, Chief Executive of AOR, M. Adil Khattak said that furnace, diesel and other petroleum products would be transported from this pipeline. This would be second project of white pipeline after Karachi-Gujrat (Muzaffargarh) pipeline. It would be environment-friendly and also reduce the cost of transportation of petroleum products from the refinery to its depot, Khattak added.

The company is also planning to install a 50-MW power plant at an estimated cost of 150 million dollars. The work on the plant will resume soon and it would be operational within 18 months, Khattak said.

About the tariff, Khattak said that the company has filed petition with the Nepra for determination of tariff, as the power would be sold to Wapda.

 

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ISLAMABAD (April 04 2006): WorldCall Broadband Ltd (WBL) Karachi strikes yet another mega deal to lease its high quality metro fibre to TransTWA Ltd. The signing ceremony was held at Islamabad at TWA's Head office.

The contract was signed by Kamran Malik President/COO of TWA and Tanvir Ahmad Group, Managing Director of WorldCall group, while other senior executives from WroldCall and TWA were also present during the signing ceremony.

The contract in question warrants 117 KM of fibre cable laying and subsequent maintenance by WorldCall and is the latest in the series of such lease contracts after Mobilink, Paktel, Telenor, Financial institutions and other corporate sector segment.-PR

 

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Foreign Office spokesperson, Ms Tasneem Aslam in her weekly press briefing said that Control of Gwadar seaport not being handed over to any other country.

ISLAMABAD, April 05 (Online): Pakistan ruled out handing over the control of Gwadar sea port to some other country. However Pakistan said that flow of investment from any part of world in Gwadar port would be welcomed.

This was said by foreign office spokesperson Ms Tasneem Aslam in her weekly press briefing here in foreign office Tuesday.

On a question about handing over the control of Gwadar sea port to some other country she said Gwadar is located on Pakistan territory and its control is not being handed over to any other country.

On a question about missile test she has said that Pakistan will continue missile tests to ensure its national security and maintain minimum credible deterrence. Our relations with Afghanistan are vibrant and both the countries want the bilateral ties to grow stronger, she held.

Citing to Richard Boucher visit to Pakistan she said that the visit is aimed to boost bilateral ties and it is follow up of President Bush visit to Pakistan. Boucher has met foreign minister Khurshid Mehmood Kasuri. He has held talks with the foreign secretary. Boucher is also likely to meet President Musharraf.

To a question spokesperson said Inquiry commission are working to probe into killings of Pakistanis in Spin Boldak. One commission has been set up by interior ministry and second has been constituted by governor Kandahar.

On resolution of Kashmir issue she said we are optimistic that headway would be made on this issue. International community is encouraging composite dialogue process between Pakistan and India. Both the countries are parties to this dispute as per UN resolutions. However Kashmiris are natural stakeholder.

She told Mir Waiz had not made any hint in his interview that China was holding any part of Kashmir. He has given proposal to associate China with the dialogue process because China is a larger country.

Responding to a question she said composite dialogue between Pakistan and India are aimed at addressing the issues rather than scaling down the tension. Problems will be solved only when there is a movement forward towards settlement of core issue of Kashmir. Work is underway through back door diplomacy and at diplomatic and political level to sort out the issue.

Spokesperson said US had not sent any application to us to attain observer status in SAARC nor has SAARC secretariat informed us in this regard.

She pointed out that extradition treaty has not been signed between Pakistan and UK. However it has taken final shape and it will be signed at opportune time.

 

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ISLAMABAD, April 05 (Online): Federal Minister for Information Technology Awais Ahmad Khan Leghari has said the government had decided to outsource work worth billions of rupees to local software companies in the process of implementing big projects such as federal data centre project and e-procurement in the public sector.
"The government is working aggressively to create demand for work in the IT sector and it will soon be identifying 15 to 20 key public services to outsource them to local IT companies who could then charge the government a certain price per transaction," he said in his address to a function organized by Pakistan Software Export Board (PSEB) to give away CMMI/ISO certificates to 28 national IT companies.

With the award of 25 ISO certificates and 3 CMMI certificates in this latest round, the number of Pakistani companies having been awarded ISO/CMMI certification has touched 100 as compared to approximately 130 such companies in India.

The ISO 9001 is the de facto standard of quality across the globe while CMMI (capability maturity model integration) is the process framework developed by the Carnegie Melon University in collaboration with the US Department of Defense and is considered a requirement in all major software tenders floated in the US.

Awais Leghari believed quality could only be sustained as an element in the IT sector through a consistent supply of quality human resource which had emerged an major issue in recent years with the IT graduates being produced by the country not really matching up to the standard required by the sector.

He said the ministry of information technology had set up a research & development fund boasting of over Rs 3 billion funds which would be used to train young IT professionals to fill three to four basic skill areas required by the industry. The programme would be implemented in consultation with the industry, which would be requested to pinpoint niche areas that could absorb such trained human resource.

He said a sizeable amount of the R&D Fund was also being set aside to be used as seed money for the upcoming venture capital fund that would aim at providing financial assistance in launching innovative projects in the IT sector.

He said the venture capital fund, to be supported by all players in the financial sector, would be used solely by the private sector with no inference from the government and the mechanism and framework for the fund was being prepared through international level consultancy.

Awais Leghari admitted there was lack of space required by IT companies to set up and expand their operations in major urban centres such as Karachi, Lahore and Islamabad and while the issue called for a shift of focus in the real estate business, the ministry of information technology itself had tasked the NESPAK to construct in Islamabad a structure offering one million square feet space for setting up offices.

He said the Dubai Internet City was also being wooed to set up a separate echo-system in Islamabad for which it would be provided land at subsidized rates.

Later talking to newsmen, Awais Leghari said the country’s IT industry was hugely under-estimated and the $ 48 million IT export figures recorded last year no way reflected on the size of the industry that had grown enormously in the last few years.

He said the industry according to rough estimates was worth more than $100 million but the realistic size of the industry would be determined within the next four to six weeks his ministry was planning to use to acquire correct revenue figures and export proceeds data from the IT companies.

He said today there were five to six national IT companies boasting a workforce of 2000 each and many more with 500-600 workforce size as compared to three to four years ago when the number of companies with 300-400 workforce was less than few.

To a question, he said the Pakistan Steel privatization had been concluded in a smooth manner and the reports of its being underpaid were not correct.

"It is good to have reservation about the privatization programme which is a norm everywhere, but criticizing a deal that comes up to all standards of merit and fair-play, is not fair," he said, clarifying that the government had set aside Pakistan Steel land worth Rs 48 billion alongside Rs 7-8 billion account money, while the 4500 acre land passed on the consortium would not be used for any purpose other than setting up additional steel plants.

To a question, he said the next item on the privatization agenda list was Pakistan State Oil and its privatization schedule would b worked out in the next few weeks.

He said privatization was a necessary process to keep the governments efficient and economies stable and flourishing, and all doors shut on misuse of power and misappropriation of government money.

Earlier, Jehan Ara, chairperson of Pakistan Software Houses Association (PSHA), commended PSEB for assisting the local IT industry in acquiring different quality certification.

She said the industry was picking up aggressively but certain issues such as lack of quality human resource capable of filling mid-level positions, lack of space, unavailability of capital, and underestimation of the IT industry were issued that needed to be addressed as early as possible to create a Pakistani brand in the international IT market.

Pakistan Software Export Board managing director Yousaf Hussain said the PSEB was evolving a strategic vision to transform the IT industry through help and coordination received the government and the private sector.

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