Pakistan Economy - News & Updates - Archive

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Food exports grow by 4.78pc in 7 months ​

Export of basmati rice rises 23.95pc and that of other varieties declines​

Thursday, February 28, 2008

ISLAMABAD: Food export from Pakistan has shown an upward trend during the first seven months of the current financial year as it increased by 4.78 per cent when compared with the figures in the corresponding period of the last financial year.

The food group export increased from $1.07 billion from July-January 2006-07 to $1.13 billion from July-January of the current financial year. The export of basmati rice increased by 23.95 per cent during the period under review, however the export of other rice commodities declined by 19.50 per cent, according to the Federal Bureau of Statistics.

The export of fruits from Pakistan grew by 17.36 per cent going up from $71.45 million in 2006-07 to $83.85 million during the period under review. Similarly, the export of vegetables increased by 66.45 per cent by going up from $16.65 million in the last financial year to $ 27.72 million from July-January 2007-08.

The export of fish and fish products declined by 1.4 per cent while export of leguminous vegetables and wheat declined by 55.73 per cent and 100 per cent, respectively. The other items which witnessed an upward trend in export included spices, sugar and meat products, which increased by 5.75, 100 and 27.09 per cent, respectively while the export of oil seeds, nuts and kernals also increased by 161 per cent during the first seven months of the financial year.

When compared with December 2007, food export during January 2008 increased by 12.8 per cent and it increased by 7.6 per cent as against January 2007. —APP Our correspondent adds from Karachi: Rice exports have dropped by 27.74 per cent during July-January 2007-2008 Federal Bureau Statistics reported stating that in last seven months rice export fell to 1.3 million tonnes as compared to 1.8 million tonnes during the same period last year.

Price hike and short supply of rice amid dwindling exports is due to hoarders, market sources claimed. Rice Exporters Association of Pakistan (REAP) Vice Chairman Abdul Bashir said that higher rates of local rice have made its export unviable.

He said that export sales have declined to almost half due to which smaller exporters have shut shop. It has become impossible for small exporters to fulfil export orders due to soaring rates at home, he said explaining that only larger exporters with well-established rice supply chains were surviving in the market.

Pakistan last year produced 5.4 million tonnes of rice and exported about 3.3 million tonnes, and traders were hopeful of exporting even more from the 2007-08 crop estimated at 5.6 million tonnes.

Local consumption of the rice is around 2.5 to 2.6 million tonnes, its contribution in GDP is seven percent and export earnings are around $1.5billion. Exporters fear supply problems could hurt exports and deprive Pakistani exporters of a chance to benefit from good international prices and believe that exports will be less this year if the situation remains the same.

Food exports grow by 4.78pc in 7 months

 

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WB approves $25m for water management ​

Thursday, February 28, 2008

ISLAMABAD: The World Bank has approved $25 million concessionary lending (IDA credit) for Balochistan aimed at improving the management of scarce water resources in the Pishin Lora Basin, located in the northwestern part of the province, which was severely damaged by drought.

According to the World Bank, the Pishin Lora Basin has been severely impacted by drought since 1998, and this has exacerbated underlying water management problems. The surface water availability has decreased and rangelands have degraded, severely curtailing agricultural and other economic activities. The poor and marginalised sections of society have been most affected, resulting in increased urban migration.

The Balochistan Small-scale Irrigation Project is designed to boost agriculture production and improve the use of water in irrigation by increasing surface water availability and reducing groundwater depletion.

It also aims to boost water productivity through a combination of engineering, management and agricultural measures. “Like the rest of the province, the drought has taken its toll on the lives of local population in the Pishin Lora Basin,” said Yusupha Crookes, World Bank Country Director for Pakistan. “This project will address the main causes behind the current water crisis. It will help the province properly manage its water and land resources and build capacity among farmers and water professionals.”

The project will entail partial restoration of the water storage capacity of the Bund Khushdil Khan, and developing small-scale irrigation schemes in the Pishin Lora Basin through a community participation approach.

It will also strengthen and build capacity of the Irrigation and Power Department, water management institutions and farmer and community organisations. “Support for farmer organisations and community organisations is critical to ensure they are participatory, inclusive and well-governed,” said Manuel Contijoch, World Bank Senior Water Resources Specialist and project team leader. “They will be trained in activities such as restoration and management of watersheds and rangelands and in implementation, operation and maintenance of irrigation schemes.”

The credit from the International Development Association (IDA), the World Bank’s concessionary lending arm, carries a 0.75 per cent service fee, a 10-year grace period and maturity of 35 years.

WB approves $25m for water management

 

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Govt budgetary borrowing surges to Rs 284 billion ​

KARACHI: Net government sector borrowing from July 1, 2007, to February 16, 2008, surged to Rs 284.149 billion, indicating the problems the government is facing in financing development projects.

The previous government had boasted of record development expenditure when it announced its last budget. But the huge borrowing shows that the government did not have enough resources to finance this development expenditure.

The economic managers are facing many crises. On the one hand they have to tackle the widening current account deficit, while on the other they face this fiscal deficit.

The government has found it difficult to keep its promise that it made with the central bank that it would meet its borrowing requirement more from the scheduled banks and less from the SBP.

Before the beginning of the current financial year the State Bank had urged the government to cut its borrowing from the central bank because it was inflationary in nature and neutralised the impact of monetary tightening. The government at that time had agreed with the SBP. It was also agreed that quarterly limits would be set for government borrowing from the central bank.

The government claims it is subsidising transport fuel and it is owing to this subsidy that the fiscal deficit has swelled because oil prices have risen beyond what could be imagined at the time of budget making. The government has to give much larger amounts in subsidy than it had estimated.

Oil prices have touched $100 per barrel in the international market. While in the recent years the government has covered its fiscal deficits through issuance of bonds in the international market, this year it has so far relied mostly on domestic borrowing.

The reliance on such borrowing has also increased because the government has failed to move ahead with the issuance of global depository receipts of state-owned institutions as well as privatisation of some of the others. The government was expecting to receive handsome amounts from these transactions and use the same for debt servicing. In the absence of such proceeds now the government has to draw money from other sources to pay its debts.

Daily Times - Leading News Resource of Pakistan

 

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Energy task force decides to build oil terminal at Gwadar​

ISLAMABAD: Energy Task Force of Planning Commission decided to establish oil terminal worth over Rs 2 billion at proposed Gwadar Oil City and has set a deadline for finalising the agreement for setting up of LNG Terminal at Port Qasim by April 15, 2008, sources told the Daily Times on Wednesday.

The Task Force while reviewing the CNG sector situation recommended discouraging new applications for setting up of CNG stations and directed the authorities concerned to ensure the gas availability to the operational CNG stations across the country. Sources said that Task Force backed the idea that new CNG stations should not be set up during the gas deficit scenario.

The Task Force headed by Deputy Chairman Planning Commission Dr Akram Sheikh met here to review the energy conservation situation. Secretary water and Power Ismail Qureshi, secretary Petroleum Farrukh Qayum and other concerned officials, attended the meeting.

Sources said that The Task Force also directed ENERCON to expedite the process of introducing CNG busses so that the dependence on the use of diesel could be reduced. Task Force said that use of cars should be discouraged and buses should be introduced to save energy.

Task Force also said that the Water and Power Development Authority (WAPDA) in consultation with power distribution companies should expedite the process of delivering the energy savers bulbs among the consumers to save energy.

The meeting was informed that the WAPDA will distribute 10 million energy savers to its consumers, free of cost, as part of government conservation policy. WAPDA was directed to complete the work for provision of 10 million energy savers to consumers.

Task Force showed concern over the delay of agreement for setting up the Engro’s LNG terminal project with Port Qasim Authority and directed the authority to finalise the agreement by April 15, 2008 .It is expected that the Terminal will be completed in early 2009. The LNG terminal will be set up by The Engro Vopak Terminal Ltd (EVTL) that is already owns and operates a modern liquid chemicals and LPG terminal at the Port Bin Qasim.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Hydroponic farming to help overcome food shortages​

ISLAMABAD: To overcome food shortages in the future Pakistan can use hydroponic farming. Hydroponics can be a futuristic technology for Pakistan to ensure proper supply of vegetable and fruits crops. It uses 70 percent to 90 percent less water than irrigated soil based agriculture. No water was lost in the ground or absorbed by weeds or lost in evaporation, Officials in the ministry of Food, Agriculture and Livestock (MINFAL) told the Daily Times here on Wednesday.

With the collaboration of government, the officials said, a hydroponic pilot project has recently been started in Rawat (Islamabad) under the name BioBlitz over just five acres of land. The state-of-the-art five-acre greenhouse facility is producing hydroponic tomatoes of all varieties including tangy, elegant, cherry and others.

The officials said if the same technology is properly deployed, the country could be a huge power player in the market because nobody else in the region is using high-tech hydroponics.

In the pilot project, a Dutch hydoponic expert was working with the team training Pakistani staff on how to run a hydroponic greenhouse. The project was exactly producing 50,000 kg of tomatoes a week. “If the government built 1,000 acres of greenhouses just for tomatoes, they would get about $500 million of revenue per year only on one crop”, they said.

According to them, a high tech hydroponic facility was more expensive to set up than soil farming but once it is set up, operating and maintenance costs were low and the very high and definite yields means that invested money would be recovered in one year.

Countries, which were world leaders in hydroponics employ what was called a ‘cluster approach’ where land is allocated just for hydroponic farming practiced by different farmers. To develop a viable hydroponics industry, Pakistan desperately needs to improve its infrastructure facilities, such as availability of electricity and land. Greenhouses need a constant supply of power but the situation in Pakistan is not encouraging, they added. The pilot project BioBlitz for instance was running completely on generators.

With more than 16 million population, the officials said Pakistan needed to boost its agriculture performance, which was low and erratic compared to other major agriculture producers. If hydroponics is introduced properly, the country can triple the revenues earned on agriculture exports. The new technology also has a social impact.

Daily Times - Leading News Resource of Pakistan

 

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Tough decisions to improve ailing economy, Zardari tells traders​

ISLAMABAD, Feb 27: PPP Co-chairman Asif Ali Zardari told a 45-member business delegation on Wednesday that the new government will have to take tough decisions to improve the ailing economy.

“While Mr Zardari received suggestions from the businessmen to prepare new economic policies, he regretted that oil and electricity prices were not increased by the previous PML (Q) government and now the incoming government will be forced to take tough decisions in this behalf,” said former finance minister Syed Naveed Qamar quoting the PPP leader.

However, the PPP leader, according to Mr Qamar, said that certain “safety valve” will be provided to the common man in the shape of some subsidy to deal with the expected increase in oil and electricity prices.

Speaking at a news conference along with the head of the delegation of the businessmen Mr Siraj Qasim Teli, Mr Qamar said that a decision has been taken to shortly finalise a roadmap to improve the economy, which he alleged had been destroyed by the previous government.

The delegation comprised senior members of Aptma, Federation of Pakistan Chambers of Commerce and Industry and different other business organisations.

Those who spoke to the media faced harsh questions for their alleged involvement in stock market crash of 2005 and said that they did not meet Mr Zardari to get any benefit in the new government.

However, Mr Qamar, who is also the former chairman of Privatisation Commission, said that those who were involved in any business scam will be brought to book and that PPP was not there to spare any wrongdoer.

In reply to a question, Mr Teli said that the PPP leader has assured the business delegation that 67 per cent of the country’s economy belonged to Karachi whose problems will be solved on priority.

“The industry of Karachi faces 700MW power shortage daily in the coming summer and this calls for some urgent planning,” he said.

He said that the businessmen were assured by the PPP leader that economic policies would be finalised with the help of business community and that there would be a regular interaction with it aimed at improving the overall economy of the country.

He said that Mr Zardari knew that the new government would be facing a number of challenges on the economic front which demanded careful implementation of the policies.

Mr Teli said that the PPPP co-chairperson has also sought suggestions to improve the business climate of Karachi which had been ruined due to violence and politics in the past.

“We told the PPP leader that confrontation should be avoided at all cost with political opponents as the country can no more afford the politics of violence and disturbance,” he said.

In reply to a question, Mr Qamar said that the PPP co-chairman told the businessmen that he would take all the people concerned into confidence for promoting trade and business activities across the country.

Asked about the problems being faced by the Karachi Electric Supply Corporation, they both said that new investment was required in the power sector to get rid of the electricity crisis. They said the KESC alone could not do anything and that major investors would be provided incentives to invest in the sector.

Responding to a question, the former finance minister said that inflation was important issue which needed to be brought down to help the poor man to fight price hike.

Former finance minister of Punjab and a central PPP leader Shah Mehmood Qurashi, who also attended the meeting, later told Dawn that without taking tough and unpopular decisions, the new government would not be in a position to find out the solution of various problems. “We will convince our people about tough decisions to be taken by the incoming government,” he said, accusing former prime minister Shaukat Aziz and his economic team of creating a mess of the economy during the last six years.

Tough decisions to improve ailing economy, Zardari tells traders -DAWN - Business; February 28, 2008

 

[Proud to be Pakistani]

KSE-index rise on improved sentiment: 100-share index closed at 15,079.71 points
​

KARACHI (updated on: February 28, 2008, 14:58 PST): Shares in Karachi stocks market ended 0.39 percent higher on Thursday as investors got a boost from two reports that were positive about the country however gains were limited as investors booked profits.

The Karachi Stock Exchange (KSE) benchmark 100-share index closed at 15,079.71 points. It set a life high at 15,155.68 points on Wednesday.

Turnover was 263.58 million shares, while losers outnumbered gainers 173 to 168.

The free-float KSE-30 share index ended 0.34 percent higher at 18,644.48 points.

"The market got a sentiment boost from reports by Fitch and Templeton along with higher international oil prices," said Asad Iqbal, managing director at Ismail Iqbal Securities Ltd.

Templeton Asset Management's top emerging markets fund manager, Mark Mobius, said on Thursday Pakistani stocks were attractively priced at forward price-earnings ratios of less than 10.

Fitch Ratings said the Pakistani banking system had been improving, but could be vulnerable to political and economic risks.

Investor sentiment in the Pakistani market has been upbeat since last week's election, which was less violent and more fair than anticipated.

The KSE-100 has gained 5 percent since the Feb. 18 parliamentary polls. It is Asia's top performer this year, up 7.12 percent after a 40 percent rise last year, although many investors still consider it a difficult and illiquid market.

Foreign investors have been active since the election.

According to State Bank of Pakistan data, a net foreign inflow of $13.61 million was seen on Feb. 26, taking the total net foreign inflow for February to about $165.6 million.

The two main parties that won the election have vowed to work together to form a government, although that does raise the prospect of them trying to force President Pervez Musharraf from power.

Among the most active companies, Fauji Bin Qasim ended 3.34 percent up at 44.80, bank Al Falah was up 1.5 percent to 62.25, while National Bank of Pakistan rose 1.73 percent to 272.90.

KSE-index rise on improved sentiment : Business Recorder | LATEST NEWS

 

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Exports become more diversified ​

Exports registered rise of 5.95pc in 7 months​

Saturday, March 01, 2008

LAHORE: The exports of the country have become more diversified as focus has started shifting from textile to other products. This is evident from the fact that overall exports registered an increase of 5.95 per cent during the first seven months (July-January 2007-08) of the current fiscal year while textile shipments fell 3.44 per cent.

Official statistics show total exports during July to January 2007-08 rose to $10.152 billion compared to exports of $9.582 billion in the corresponding period of last year. The sectors that recorded increase in exports during the period included the food group, led by a 23 per cent surge in Basmati rice export, 17 per cent in fruits and 66 per cent in vegetables. This partly explains the reason for the high prices of rice, fruits and vegetables in the country.

Other sectors whose exports rose were petroleum products, up 34 per cent, leather (tanned) 37.51 per cent, leather products 13.99 per cent and chemical and pharmaceuticals 45.58 per cent.

However, the impact of these increases was small mainly because the export of textiles that accounted for 65 per cent of total shipments registered a decline. The textile exports dropped 3.44 per cent in which all categories of yarn and fabric showed a negative growth. In the value added sector, knitwear exports plunged 11.21 per cent, towels 6.72 per cent and bedwear 6.21 per cent. Only the export of readymade garments, among major value added textiles, rose 7.20 per cent.

The engineering sector also remained under pressure during the period under review as its exports decreased 9.70 per cent. Economic experts point out the textile sector came under pressure after the March 2007 crisis. It is perhaps for the first time in two decades that exports have increased despite a decline in textile shipments.

They say the textile sector came under pressure as foreign buyers were reluctant to place orders due to a wave of terror attacks during the first six months of this fiscal. The textile sector’s worst performance was in December last year when the export of its many categories dipped over 20 per cent.

However, the experts say, the sector then showed remarkable resilience as exports rebounded in January, rising 10.38 per cent over the corresponding month of last year. The increase in exports came despite the worst-ever gas and power crisis that hit the country in January. In fact, they say, exports increased because Pakistan enjoyed a competitive edge over its close rival India owing to a difference in currency values. Moreover, shipments being made now are for summer clothing.

The knitwear exports that had been on the decline till December were higher 10.08 per cent in January and readymade garments rose over 39 per cent.The value added clothing exports from Pakistan traditionally increase in the last five months of the fiscal year. The say the buyers have placed large orders for knitted shirts and denim clothing as rates of these products in India are higher. They expect that by the end of this fiscal, textile exports will post a robust growth.

Exports become more diversified

 

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Kazakhstan invites Pakistani investors ​

ISLAMABAD: Kazakhstan is keen to further increase bilateral trade with Pakistan as some Pakistani companies have invested and the government encourages more foreign investment.

This was stated by Yernur Tuyakbayev, First Secretary of Kazakhstan embassy in Islamabad in a meeting with members of Islamabad Chamber of Commerce and Industry here Thursday.

He said that for investment in Kazakhstan long-term visas are granted to the investors and for citizenship 7 years’ stay in Kazakhstan is a must. He said that after 15 years of its independence, Kazakhstan ’s economy is growing well.

Danabekov, who was also accompanied by Yerlan T.Danabekov, Visa Counselor, Embassy of Kazakhstan, said that his embassy greatly facilities for grant of visas to Pakistani businessmen and ratio of issuance of visas is increasing day by day. He said that Kazakhstan is a land locked country and its 85 percent trade is with Russia. Literacy rate in Kazakhstan is about 100 percent and about 5000 students are sent abroad on scholarship each year, he added.

Daily Times - Leading News Resource of Pakistan

 

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Templeton's Mobius bets on Pakistan's energy stocks ​

SINGAPORE (February 29 2008): Templeton Asset Management favours Asian energy stocks and has placed a big bet on fast growing but politically volatile Pakistan, the firm's top emerging markets fund manager, Mark Mobius, said on Thursday.

Templeton expects oil prices to stay around $100 a barrel, helped by its soaring demand in China and India, which will shore up earnings at companies such as Petrochina and India's Oil & Natural Gas Corp (ONGC). "The housing crisis is hitting the US market. There is an impact but what we found in the past is that oil consumption does not go down dramatically," said Mobius in a telephone interview with Reuters.

"The swing factor (for oil) is what is happening in China and India," said Mobius, who manages a total of $40 billion in emerging market assets, about half of which is invested in Asia. Mobius' Templeton Asian Growth Fund was 36 percent invested in energy at end-January, and its top holdings included Petrochina, China Petroleum & Chemicals (Sinopec), Korea's SK Energy and India's ONGC.

The $7.7 billion fund was 106 percent invested in equities as Templeton borrowed to meet redemptions last month rather than reduce its shareholdings, at a time of sliding global stock markets as investors worried about a spreading credit squeeze.

"The values were there and we thought there would be a recovery. It's advantageous for existing shareholders as we are not forced to sell down at unreasonable prices," he said. Asian stocks, excluding Japan, fell close to 20 percent at one stage in January, but are now down about 7 percent for the year.

Templeton said its funds can borrow up to 10 percent of their asset value to meet short-term redemptions, giving managers greater flexibility in managing their portfolio when markets are volatile. The Asian Growth Fund returned 36.7 percent in the past 12 months, beating a 22.4 percent rise in its benchmark, the firm said.

PAKISTAN'S PULL: In Pakistan, a market shunned by most institutional investors but which accounted for 5.3 percent of Templeton's Asian Growth Fund's portfolio, Mobius said the country's stocks were attractively priced at forward price-earnings ratios of less than 10.

Pakistan's stock market is Asia's top performer this year, up almost 10 percent on top of a 40 percent rise last year. Economic growth has averaged about 6 percent in the last five years, but Pakistan has been plagued by political instability and militant attacks. A Templeton spokesman said the firm's Pakistani investments included CB Bank, Oil & Gas Development Co, Faysal Bank and Pakistan Telecommunication.

"It's working out for us well," Mobius said, noting that recent elections had replaced an unpopular military-backed government with a civilian government that was likely to retain the previous administration's pro-private enterprise policies "We don't see any huge problem in terms of a big bear market continuing in Asia," Mobius said. "We think there will be a recovery."

Business Recorder [Pakistan's First Financial Daily]

 

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China to invest $600 million in Sindh coal project ​

ISLAMABAD (February 29 2008): China will invest about $600 million for setting up an integrated coal mining-cum-power project in Sindh. The project will produce 180 million tonnes per annum, which is sufficient to fuel the proposed 405 MW power plant.

A five-member delegation led by Qin Ruijan, vice-president, China National Machinery Import & Export Corporation (CMC), submitted an informal proposal to Water and Power Secretary Muhammad Ismail Qureshi in a meeting. Private Power and Infrastructure Board Managing Director Fayyaz Elahi and other senior government officials attended the meeting.

The Chinese delegation appreciated the investor-friendly policies of Pakistan particularly in the power sector. The project will be set up at Sinda-Jherruk coal mines in Sindh.

Ismail Qureshi appreciated CMC's decision to invest in the power sector of Pakistan using local coal, and encouraged them to submit a formal proposal so that it can be processed at the earliest by PPIB as per the provisions of the power policy.

The CMC is the 10th largest state-owned corporation of China. It is the largest foreign trade enterprise engaged in import and export of machinery products in China, having a trade turnover of $73 billion. The CNC has substantial experience in the development of coal mines and coal-based power projects.

The interest of Chinese investors in the power sector of Pakistan is a further step in realising the Pakistan's efforts to speed up investment in the power sector utilising indigenous coal resources of the country.

Business Recorder [Pakistan's First Financial Daily]

 

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'Political instability, security challenges likely to hinder FDI' ​

FAISALABAD (February 29 2008): Political instability and civil conflicts have been found to be a major factor in reducing the attractiveness of South Asia as a host for foreign capital. Afghanistan, Pakistan, and Sri Lanka continue to face political uncertainties and security challenges that are likely to hinder foreign direct investment (FDI).

According to third issue of the South Asia Economic Report (SAER), released by the South Asia Department and the Central and West Asia Department of the Asian Development Bank (ADB), empirical evidence demonstrates that FDI inflows into Sri Lanka are vulnerable to the ongoing civil conflict there. Likewise, in Afghanistan, the pace of foreign investment also may be slow because of the sporadic suicide bombings, kidnappings, and attacks.

The worsening political situation in Pakistan (particularly in late 2007) may also hamper FDI inflows into that country. It is well documented that existing regulatory systems governing investment in South Asia are weak. Specifically, corruption continues to be rampant; governance remains poor; "red tape regulatory obstacles" commonly affect the conduct of business activities; capital flows are stringently controlled; and there are a lack of "facilitating harmonised frameworks on competition and infrastructure".

The 2006 Corruption Perceptions Index (CPI) of Transparency International, based on a survey of 163 countries (Transparency International 2007) showed that Bhutan is the least-corrupt country in South Asia. Conversely, the remaining countries of the region are positioned well down in CPI scores and country ranking.

Bangladesh scored as the most corrupt country in the region and positioned lowest in the ranking of regional countries. Transparency International's Bribe Payers Index (BPI), a measure of the propensity of the leading exporters in a country to offer bribes (out of a sample of 30 countries). Statistics shows that India had the worst BPI in 2006 among the 30 countries sampled, including the 8 Asian countries sampled. Transparency International notes that one of the most corrupt branches of government in South Asia is the judiciary.

According to report, FDI is a vital requirement for sustained economic growth in South Asia. It can generate employment in the host countries, in addition to supplementing domestic savings and helping meet the huge demand for investment. FDI can also bring foreign currencies into the host countries by stimulating exports of goods and services.

Expectations of significant future domestic demand, especially in countries with large populations such as those in South Asia, can result in FDI from foreign companies establishing large production bases for these domestic markets. Such FDI will expand product variety and consumer choices, and promote technology transfers and knowledge spillovers through forward and backward linkages in the host economies.

The report highlights the strong inducements for FDI offered by South Asia, such as its robust economic growth with the impressive showing of the services sector and exports, its large domestic markets, and the positive perceptions of foreign investors. However, the level of FDI inflow into South Asia is still low compared to other Asian regions. This is considered to be the result of the poor business climate, poor infrastructure, restrictive labour policy and labour unrest, political uncertainties and civil conflicts, weak regulatory systems, and rampant corruption.

According to report, South Asia exhibited robust macroeconomic performance in 2006. Economic growth was strong, with savings and investment rates high, inflation moderate, trade and foreign direct investment (FDI) expanding, and fiscal deficits lower. South Asian countries are expected to sustain high growth rates in 2007 and 2008.

Economic growth in South Asia was stronger in 2006, as aggregate gross domestic product (GDP) posted an 8.8 percent expansion. It was the second consecutive year of the highest growth rate in the region since 2003. Most economies in South Asia registered GDP growth rates exceeding 6.0 percent in 2006, largely the result of impressive performance by the services sector and the industrial sector.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan's foreign exchange reserves swell by $57.1 million ​

KARACHI (February 29 2008): Country's liquid foreign reserves have increased by 57.1 million dollars during week ended February 23, 2008. Sources said during the last week, a payment of some 289 million dollars has been received from the US on account of reimbursement, therefore, the foreign reserves has shown some upsurge.

The State Bank of Pakistan statistics depicting that during last week, the foreign reserves held by the State Bank of Pakistan (SBP) raised to 11.9632 billion dollars up from 11.8687 billion dollars as on February 16, depicting an upsurge of 94.5 million dollars during the last week.

While reserves held by commercial banks have decreased by 37.4 million dollars to 2.1742 billion dollars on week ended February 23, as compared to 2.2116 billion dollars a week earlier. It may be mentioned here that country's foreign reserves are consistently declining due to the high foreign payments and this is the first raise during the current calendar year.

Business Recorder [Pakistan's First Financial Daily]

 

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Master plan for small, medium industrial zone in Multan ready ​

MULTAN (February 29 2008): The government has finalised a master plan on small and medium industrial zone in Multan to promote the small and medium industry in this area and providing maximum jobs to skilled workers.

Punjab Caretaker Minister for Labour Shehzad Azam Khan said this on Thursday while laying the foundation stone of a modern labour complex over 40 acres of land in Industrial Estate Multan. Punjab Minister for Industries Khawaja Muhammad Jalaluddin Roomi was also present on the occasion.

Addressing the opening ceremony, Jalaluddin Roomi announced to alocate 6.5 acres of land for vocational institute in the industrial estate to produce maximum number of skilled workers. He said that a power-loom cluster, and small and medium enterprises estate was also being developed in Multan.

The government would construct the shelters, which would be allotted to power-loom and, hand-loom operators and other small entrepreneurs on rental basis. He said, "credit goes to the caretaker government which got approved a project of gas supply to this industrial estate within shortest time and also Labour complex project was approved and funds were allocated."

He said a dispensary and schools for boys and girls, recreational parks and 600 homes in the first phase would be constructed, which would be allotted through ballots, while total 1,200 to 1,500 single storey homes would be constructed and equipped with all facilities like gas, electricity, water, drainage etc.

He said, "this project was being shifted to other major city but we used our good offices to stay at Multan". Earlier, Industrial Estate Management Board's President Multan Iqbal Hassan spoke and demanded for not increasing the cost of land in industrial estate Phase-II.

Business Recorder [Pakistan's First Financial Daily]

 

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Exposition 2015 in Izmir: Pakistan to be offered free pavilion ​

ISLAMABAD (February 29 2008): Turkish Ambassador, Gursoz who met Commerce Secretary, Syed Asif Shah here on Thursday said that Pakistan would be offered free pavilion at Expo 2015 to be held in Izmir, says a press release. The ambassador, who is also Special Envoy of the President of Turkish Republic, was accompanied by Mayor of Izmir city and Chairman of Asian Exporters Union.

He appreciated Pakistan's support for organising Expo 2015. Pakistan has made its commitment to Turkey's candidature for Expo 2015. The Turkish envoy has delivered a letter to the President of Pakistan conveying thanks to Islamabad, the release said.

The Turkish envoy said that in recognition to Pakistan's support, Turkey will treat Pakistan as special guest and will offer free pavilion at Expo 2015 provided Turkey wins this campaign. Secretary Commerce thanked the envoy and assured him of Pakistan's continued support in their lobby and wished them success. He also confirmed Pakistan's participation in Expo 2015.-PR

Business Recorder [Pakistan's First Financial Daily]