Pakistan Economy - News & Updates - Archive

[Neo]

IMF, Pakistan revise downwards macroeconomic targets ​

Thursday, February 26, 2009

ISLAMABAD: The International Monetary Fund (IMF) and Pakistan on Wednesday revised downward all macroeconomic targets including GDP growth rate to 2.5 per cent from earlier envisaged target of 3.5 per cent for the ongoing fiscal year to approve the second tranche of $800 million for Islamabad under Standby Arrangement (SBA) programme.

Both sides also agreed to revise downward inflation target to 20 per cent from earlier set target of 23 per cent, FBR’s tax collection to Rs1,300 billion from earlier envisaged target of Rs1,360 billion for 2008-09.

Secretary Finance Dr Waqar Masood, while talking to The News from Dubai on Wednesday night, confirmed that the IMF’s executive Board would approve its second tranche for Pakistan by end March 2009 after both sides agreed on all major issues.

The successful completion of first review of the IMF for gauging the economy of Pakistan till Dec 31, 2008 and envisaging targets for the next two quarters will pave the way for convincing the Bretton Wood Institution to provide an additional $4.5 billion to Pakistan in its bid to further build up its foreign currency reserves that have already gone up to $10.2 billion.

However, the sources told this scribe that the Fund authorities linked decrease in discount rates with reduction in core inflation, which means that the central bank is unlikely to scale down discount rates in near future.

During the policy level talks held at Dubai on Wednesday, Pakistani side was led by Advisor to Prime Minister on Finance Shaukat Tarin while the IMF delegation was led by Masood Ahmed, head of its Middle Eastern Department of the IMF.

The GDP growth target was scaled down from 3.5 per cent to 2.5 per cent for the ongoing fiscal year 2008-09. The GDP growth target was envisaged at 4 per cent for the next budget 2009-2010.

The IMF prescriptions described as, “one shoe fit for all,” approach will result into lower GDP growth for the ailing economy of Pakistan in the context of tight fiscal and monetary policies for the next fiscal year as well, said an independent economist while talking to this scribe here on Wednesday.

The inflation, the official said, would be aimed at bringing down from 23 per cent to 20 per cent by June 2009. For the next fiscal year 2009-2010, the inflation target was envisaged at 6 per cent.

Both the IMF and Pakistan also evolved consensus for revising downward the FBR’s tax collection target from Rs1,360 billion to Rs1,300 billion for the ongoing fiscal year. Pakistani side explained to the IMF that the FBR was facing revenue shortfall by Rs20 billion alone in January 2009 and the same trend persisted in Feb 2009, leaving no other option to scale down the annual tax collection target.

“The IMF agreed to reduce the tax collection target by Rs60 billion keeping in view shortfall being faced by the FBR,” said the official sources.

The adjustment in nominal GDP growth by scaling down the real GDP as well as inflation paved the way for reduction in overall FBR’s tax target from Rs1,360 billion to Rs1,300 billion, which will be equivalent to 10 per cent of the GDP.

“The IMF and Pakistan also agreed to set 10.6 per cent of the GDP for tax collection target of the FBR for the next budget 2009-2010,” said the official.

The IMF had approved $7.6 billion loan under 23 month SBA program on November 2008 and provided front loaded $3.1 billion to Islamabad. The second tranche of $800 million by end March will help Islamabad to build up reserves position in months ahead.

 

[Neo]

Gwadar may lose business to Iranian port of Chabahar ​

Thursday, February 26, 2009

KARACHI: The Gwadar Port that was envisioned to become a trans-shipment port and shipping hub for the landlocked Central Asian States (CAS), Afghanistan and Western China may lose this opportunity to the fast developing Iranian port of Chabahar, a Gwadar Port official said.

The Gwadar Port is yet to become fully operational. The running of the port affairs was given to Port of Singapore Authority (PSA), one of the biggest port operators, so that it will fetch considerable business for making Gwadar Port a success.

The PSA has not fulfilled its business plan of making the port fully operational by 2008. The PSA says the government has failed to provide basic infrastructure including road and rail links that are the main impediments in Gwadar Port development.

To ensure that the port stays a viable destination the Gwadar Port official suggested resuming container business immediately even if in small amount through PSA or if they fail through own resources.

The government should bear the cost of road transportation to resume export activity from Gwadar Port, he said.

The official suggested restricting PSA to the present terminal and the areas adjacent to the terminal handed over to them may be retrieved and handed over to Gwadar Port Authority.

The official further said that master plan of Gwadar Port need to be approved, presently it is approved in principle but nothing so far has been done. Master Plan will protect the entire east bay and coastline east of Surbandar. By securing Master Plan, the basic theme of converting Gwadar Port into a hub port will be secured.

In order to attract sustainable business like Afghan Transit Trade or container cargo at Gwadar Port, one of the viable options is to complete road connectivity of the Port with Chaman and Afghanistan followed by shifting total or part of Afghan transit trade to Gwadar Port.

The land required for Free Zone has been dropped due to its high cost (Rs6.7 billion). It is suggested that the concerned agency at the Federal Government level may be requested to remand the case to the District Government authorities for review and submission of a workable plan, the official said.

The construction of East Bay Expressway may be undertaken on a fast track as the present arrangement for passage of the cargo truck within town has lot of repercussions. The concerned agency may be directed to execute the development work on priority.

According to government official it is justified to extend Rs.585million subsidy to the Gwadar Port to make it viable. Government supported Port Qasim for ten years to make port fully functional, he reminded. Similarly this will help the Gwadar Port to operate and serve the basic purpose of the port and generate revenues and job opportunities for the people.

He further stated that Stevedoring/Clearing/Ship Agency License to be given to locals and training should be given to the locals in cargo handling to reduce their grievances.

It is learnt that Port of Singapore Authority is trying to attract Afghan Transit Trade and get mining sector to export copper and chrome from Gwadar Port. In this regard PSA is briefing the government of Balochistan to work on connectivity.

It is also said that PSA is pursuing the government to add Gwadar Port in Afghan Trade Notification so that some trade should be started from Gwadar as well.

However ports and shipping industry shows reservation on PSA’s role and said that PSA submitted plan for 40 years specifying business in Gwadar.

According to the PSA business plan the port was to be operational by 50 percent in 2007 and 100 percent in 2008 and had indicated business comprising of coal and container cargo.

The plan also indicated approximate revenue generation for Gwadar Port Authority during the period 2007 and 2008. But PSA, so far relied totally on TCP to have business and lucrative subsidies. It has totally failed in bringing in business to Gwadar Port specially containers.

However PSA says that ports are not run in isolation, port are catalyst for trade and in the absence of basic infrastructures, free zone industrial areas and most importantly the connectivity links to the ports which are major hurdles in running the ports. PSA has fulfilled all agreed requirement but government so far has failed to fulfil the agreed requirements of the ports.

 

[Neo]

IDB to recommend funds for power project ​

Thursday, February 26, 2009

LAHORE: Islamic Development Bank Country Director Farrukh Mahmood has said the bank’s technical mission will recommend to its board and other Middle Eastern donors to provide funds of around $458 million for 969-megawatt Neelum-Jhelum hydroelectric project.

He stated this during a wrap-up meeting at the WAPDA House here on Wednesday. A four-member IDB technical mission is visiting Pakistan for finalising technical and financial details, various financing options and the extent and mechanism for funding the Neelum-Jhelum hydroelectric project.

WAPDA Member (Water) Syed Raghib Abbas Shah, while welcoming the IDB for taking an initiative to help Pakistan in hydropower development, especially the construction of Neelum-Jhelum project, requested the bank to come forward and provide funds for Diamer-Basha dam also.

Briefing the delegation about the project, he said besides generating 4,500 MW low-cost hydel electricity and storing 8.1 million acre feet of water, the Diamer-Basha dam, when completed, would also help enhance the life of Tarbela reservoir by another 35 years and generate additional 1.1 billion units of electricity from existing Tarbela Power House.

Dilating upon the current status of Diamer-Basha dam, the member (water) said evaluation process for pre-qualification of contractors for lot one, two and three was under way and would be completed in March.

After the approval of PC-I amounting to Rs60bn for resettlement by the Executive Committee of National Economic Council in November last, land acquisition for construction of the project had already started, he added.

 

[Neo]

Folio3 CEO promises IT outsourcing won’t sink ​

Thursday, February 26, 2009

KARACHI: There are not many businesses that have prospered during the present economic recession, but software outsourcing has proved to be the exception to the rule.

“Over the past three months, we have felt the brunt of the recession, but offshore businesses have an edge,” said Adnan H Lawai, Chief Executive Officer Folio3, an export-based software house in Karachi. “There is a simple reason for it: when companies in developed countries like the United States try to cut their operational costs, they automatically think of offshore options.” According to Lawai, an increasing number of IT companies in the West are looking towards outsourcing companies. “If the outsourcing ratio was 30 per cent sometime ago, it is more than 50 per cent now, which shows good prospects,” he said, but stressed that overall, the financial climate had left people confused and hesitant about making decisions.

“This will continue for two or three months, but some time in the summer, things will start getting back to normal,” he said. Folio3 has grown rapidly over the past three years, and has remained stable over the past three turbulant months, a trend Lawai hopes will continue.

He added, however, that as a fast-progressing company, there were still challenges to be faced, such as finding employees who were well qualified. “Our local IT institutes should be a lot better and can be help improve the quality of the average student,” said Lawai, although he also acknowledged that the IT industry in Pakistan had progressed “outstandingly”, especially during the last couple of years.

Lawai himself has ample experience in the industry, having worked at Silicon Valley for 12 years. Experts have predicted that the present crisis will continue to hamper business all over the world for the next two to three years, but Lawai is adamant that the trend does not apply to IT outsourcing.

“There are certain businesses that do well in recession, and we are one of them,” he reiterated, and went on to cite the example of Folio3, which started operation in Pakistan in late 2002, a time of crisis for the IT industry all over the world. “We did well then and hope we can do well this time, too,” said Lawai. “When everything was going up, so were we, and now when everything is going down, we are still doing fine.”

 

[Neo]

AEDB asked to speed up work on wind, solar energy projects ​

Thursday, February 26, 2009

ISLAMABAD: Federal Minister for Water and Power Raja Pervez Ashraf has said that the government is focusing on alternative and indigenous resources to produce electricity at affordable prices.

He asked the Alternative Energy Development Board (AEDB) to expedite their work and complete the wind and solar energy projects as early as possible.

He further asked the Board to prepare comprehensive short and long-term plans to utilise all the renewable energy resources available in the country and to attract the private sector for investing in the sector, says a press release.

The minister made these observations while presiding over the 17th Board meeting of the AEDB held on Wednesday.

The Board reviewed progress of the ongoing projects and considered various proposals to generate electricity from wind and solar projects.

The Board approved the formation of a Policy Review Committee to review the recommendations proposed by the AEDB for Mid Term Renewable Energy Policy.

The committee would submit its report by September 2009. The Board also approved land for a 50MW Wind Power Project at Gharo, Sindh.

The project, being set up by SUNEC would start commercial operation in 18 months time.

Earlier, the meeting was informed that the AEDB has started spade work on 50MW Hawks Bay Wind Farm, 50MW Gharo Wind Farm and 50MW Solar Thermal Power projects to be executed by the public sector.

A total of 2266 homes have been electrified by Solar Homes System programme under Rural Electrification Programme in various villages of Sindh while three projects of same nature are being started in Balochistan, the meeting was further informed.

 

[Neo]

Scope for Pakistan rate cuts if inflation falls, says IMF​

WASHINGTON: Pakistan’s monetary policy is appropriate but there would be room to lower interest rates if inflation declined, the International Monetary Fund said on Wednesday. In a statement following a 12-day staff mission to review a $7.6 billion stand-by lending programme, the IMF said it was “impressed” by Pakistan’s resolve to sustain prudent policies, strengthen the social safety net and pursue reforms. But it also said the global economic turmoil was taking a toll on Pakistan’s economy, hurting demand for exports and curbing remittances from workers abroad, so economic policies needed to be recalibrated. The IMF said Pakistan’s current monetary policy stance was “appropriate and will continue to promote domestic and external stability” “Looking ahead ... if both headline and core inflation decline, there should be scope for lower rates,” the IMF said.

 

[Neo]

Experts say Pakistan is on trajectory to failure​

* Private foreign affairs group says Pakistan can turn back from ‘brink’ if given ‘tools and finances’​

WASHINGTON: Pakistan is on a rapid trajectory to failure as a stable, democratic state and needs a boost of $4 billion in US aid and loans each year to begin turning around, a private foreign affairs group has concluded.

“Time is running out,” said the Atlantic Council, which urged more training and deployment of 15,000 Pakistani police within six months to bring order to the country.

Chance: “Given the tools and the financing, Pakistan can turn back from the brink,” the report said. “But for that to happen, it needs help now.”

The Pakistan government has six to 12 months to implement economic and security policies, or “face the very real prospect of considerable domestic and political turbulence”, said the report.

The US has given Pakistan about $12.3 billion in military and economic aid. The US Government Accountability Office says the US lacks a coordinated strategy in disbursing the aid and warns that Al Qaeda ‘continues to operate freely in Pakistan’s un-policed Tribal Areas’.

Vice President Joe Biden, former chairman of the Senate Foreign Relations Committee, and Republican Senator Richard Lugar, the panel’s senior Republican, proposed last summer authorising $7.5 billion over five years in non-military aid for Pakistan. Similar legislation sponsored by Lugar and the new committee chairman, Democratic Senator John Kerry, is expected this year.

Kerry and Republican former Sen Chuck Hagel are the Atlantic Council’s honorary chairmen. Hagel, having left the Senate, is now council chairman.

The Obama administration, meanwhile, began a policy review this week with senior officials from Pakistan and Afghanistan.

Here for the talks, Pakistani foreign minister Shah Mehmood Qureshi said on Wednesday he was pleased with moves to increase US assistance to his country. “We need economic stability,” said Qureshi in an interview with The Associated Press. “Until we have economic stability we will not be able to get political stability.” He would not put a price tag on Pakistan’s needs.

The report itself said it was sounding an alarm “that we are running out of time to help Pakistan change its present course toward increasing economic and political instability, and even ultimate failure”. The situation has grown even more urgent, it said, with the November terror attacks in Mumbai. The report urged Pakistan to show it is serious in pursuing the perpetrators and other terrorists and terror organisations.

“The Mumbai crisis has yet to run its course,” said the report. “The use of military force or other coercive action must be avoided.”

Another concern in the report is that Pakistan might feel forced to enter negotiations with the Taliban and other insurgent groups and ‘grant further freedom of movement to insurgents’.

The report warned that Al Qaeda and other radical groups could be emboldened “with frightening consequences for vulnerable targets in Britain, Europe and even the United States”. Compared with the hundreds of billions of dollars poured into Iraq and the many billions into Afghanistan, aid to Pakistan has been ‘relatively miserly’, said the report. And the stakes in Pakistan are far larger and more important to long-term US interests, the report said. ap

 

[Neo]

IMF scales down growth rate to 2.5 percent: everything went well, says Tarin ​

ISLAMABAD (February 26 2009): IMF has scaled down Pakistan's growth rate at 2.5 percent and tax revenue at Rs 1300 billion, Shaukat Tarin told Business Recorder on Wednesday on concluding his discussions with IMF. "We were hoping to take more time, but everything went well, and they (IMF officials) were very positive", Tarin said from Dubai over phone.

Fiscal deficit target has also been relaxed a bit, he added. "We have got Fund's consent that fiscal deficit would be 4.3 percent, rather than 4.2 percent, and maintain Rs 562 billion deficit, that would help us maintain same expenditure level", said the advisor to PM on Finance. He said that the IMF had also agreed to reduce interest rate, as inflation falls down.

Tarin's view was corroborated by an IMF statement issued later. "The authorities and the IMF staff team agreed that the current monetary policy stance was appropriate and will continue to promote domestic and external stability. Looking ahead, they agreed that, if both headline and core inflation decline, there should be scope for lower rates, provided that the international reserves position continues to improve and the government avoids resorting to SBP financing", said the statement issued after completion of Annual Article IV consultations.

An International Monetary Fund (IMF) staff mission, led by Adnan Mazarei, visited Islamabad and Dubai over the past 12 days to conduct the 2009 Article IV consultation, and the first review under Pakistan's Standby Arrangement (SBA), said the statement.

The mission was impressed by the authorities' strong resolve to sustain prudent macroeconomic policies, strengthen and broaden the social safety net, and pursue reforms to enhance Pakistan's medium-term growth prospects, said the statement.

The authorities' program remains on track. Initial developments since the approval of Pakistan's IMF-supported program have been generally positive, and all the program's quantitative performance criteria for end-December 2008 were observed.

The exchange rate has remained broadly stable and the international reserves position has strengthened significantly (the State Bank of Pakistan's (SBP) gross foreign exchange reserves exceeded US $6.8 billion at end-January, excluding reserves of commercial banks).

The statement said that there had also been a strong positive response from the T-bill market to the 200-basis point increase in the central bank discount rate in mid-November, allowing the government to retire some of its debt to the SBP.

Recently, however, the global economic environment deteriorated markedly, which is having an impact on Pakistan's economy. While the external current account deficit has started to narrow and inflation has declined, the decline in the demand for exports and uncertainty regarding the prospects for workers' remittances constitute risks to the external outlook.

In this context, while recognising the need for flexibility, the authorities and the staff agree that the continued implementation of sound policies is crucial to reduce inflation and lay the basis for sustained growth. The deterioration in the global economic environment and weaker economic activity call for an update of the economic framework and a re-calibration of economic policies.

In particular, discussions focused on the fiscal program and the monetary policy stance. On the fiscal side, the discussions resulted in understandings on measures to assure the achievement of the program's fiscal targets for 2008/09 (July-June) and 2009/10 through mobilisation of revenue and some expenditure rationalisation.

Structural reforms have progressed broadly as envisaged. A contingency plan for handling problem banks has been prepared and is being strengthened; an action plan to reform tax policy and administration has been adopted and will be implemented with technical assistance from the IMF and World Bank; electricity subsidies will be fully eliminated by the end of the current fiscal year; and a plan has been designed to address the circular debt issue.

Social protection is a key element of the authorities' program. Improvements in targeting of the social safety net are in train and the IMF staff team welcomed these improvements as well as increased social safety net spending. The resolve of the Pakistani authorities as well as the initial success in stabilising the economy augurs well for the future, despite the risks associated with the deterioration in the global economy.

Mobilisation of additional external budget assistance is particularly crucial now in order to support the broadening of the social safety net and a higher level of development expenditure.

The Donor Meeting, that is expected to take place in March/April, provides an important opportunity for the international community to support Pakistan's efforts in stabilising its economy, mobilising more resources for social protection, and laying the basis for a high and sustainable growth.

The IMF mission staff will prepare a report for the IMF Executive Board on the first review under Pakistan's SBA and the 2009 Article IV consultation that is scheduled for consideration in late-March, the statement said.

These discussions focused on Pakistan's recent economic performance, the main challenges lying ahead, and the policies needed to build and consolidate macroeconomic stability in light of the uncertain and deteriorating global economic environment, the statement added.

 

[Neo]

Pakistan, IMF revise targets; next tranche in March ​

KARACHI (February 26, 2009): Pakistan and the International Monetary Fund (IMF) have agreed to lower the target for gross domestic product growth this fiscal year to 2.5 percent from 3.5 percent, a Finance Ministry official said on Thursday.

"As six months of the current year have passed, and with all the data available, it was decided that the best estimate for GDP growth would be 2.5 percent," Finance Secretary Waqar Masood told Reuters.

Pakistan's fiscal year runs from July 1 to June 30.

GDP growth last fiscal year was 5.8 percent.

Pakistani and IMF officials wound up on Thursday nearly two weeks of talks in Dubai on their first review of a $7.6 billion emergency IMF loan approved in November.

Pakistan received a first tranche of $3.1 billion in late November.

Masood said the next tranche would be "slightly over $800 million" and it was expected by the end of March when the IMF Executive Board meets.

State Bannk of Pakistan chief spokesman Syed Wasimuddin said the exact figure due in late March was 568.535 million SDR (special drawing rights), which according to Thursday's exchange rate, amounts to $840 million.

The IMF said on Wednesday monetary policy was appropriate and there would be room to lower interest rates if inflation declined.

It said it was "impressed" by Pakistan's resolve to sustain prudent policies, strengthen the social safety net and pursue reform.

Masood also said inflation had been revised to an average of 20 percent for this fiscal year, compared with an earlier target of 23 percent. Year-end inflation was revised to 10 percent compared with an expected 20 percent earlier, he said.

 

[Neo]

Government advised to implement Rs 25 billion Fata development package ​

ISLAMABAD (February 26 2009): The President, Asif Ali Zardari on Wednesday advised the government to immediately undertake implementation of over Rs 25 billion development package for Frontier province and Fata finalised recently as an important element of the strategy to fight militancy in the affected areas.

In a statement today spokesman, Farhatullah Babar said that the President during his recent visit to Frontier province announced that a heavy development package for Frontier and Fata would soon be launched. After his announcement, the government cleared the development proposals and gave go-ahead signal. A Monitoring Committee was constituted to ensure speedy completion of the formalities to undertake the projects, he said.

Further, he said that the development package for Frontier province comprises of construction of Tank Zam Dam, building of additional 1,000 primary schools including 700 for girls, a new hospital known as Shaheed Benazir Bhutto hospital, greater Water Supply Scheme for Peshawar, a children hospital, infrastructure development including up-gradation and remodelling of Southern Bypass and construction of a new road link to the Southern districts bypassing the Kohat tunnel.

Besides, the package includes provision of medical equipment and ambulances for all district hospitals and construction of a Trauma Centre in Peshawar. The package sets aside one billion rupees for the rehabilitation and development of Swat recently ravaged by militant activities.

Babar said that the President advised that special attention should be paid to the implementation of the development package for Swat at a cost of Rs 1 billion and the construction of primary schools in the province costing Rs 3.5 billion. The President also advised that special emphasis should be placed on rebuilding the schools in Swat and other areas that were damaged during recent operations.

The President also called for the reopening of all closed schools. The spokesman also said that the Rs 1 billion development package for Swat is meant for rehabilitation of the affected areas due to militancy and implementation of poverty reduction and economic growth programmes in Swat.

The proposed Shaheed Benazir Bhutto Hospital in Peshawar costing Rs 2 billion had been announced by the former Prime Minister, Shaheed Mohtarma Benazir Bhutto during her tenure but remained unimplemented so far. The Tank Zam Dam project in District Tank, which will be built at a cost of Rs 6 billion, will irrigate 45000 acres of land beside, generating 25 mega watt of electric power, he said.

Explaining the significance of various development projects, the spokesperson said that over Rs 3 billion up-gradation of the Southern Bypass is part of the Ring Road master plan, which was pending for resource constraints when completed will reduce one third of the traffic congestion in Peshawar city.

In addition, the greater water supply scheme at a cost of Rs 3 billion will provide portable drinking water to those areas of District Peshawar, where the facility is not adequately available, he said. The development package also includes a strategically important Nowshera-Nizampur Kohat alternate road link to maintain road access to southern districts of the province and Balochistan from Peshawar.

Babar also said that unrest in Fata and Frontier regions recently forced the closure of Kohat Tunnel and blocking road access to the southern districts from Peshawar necessitating the development of an alternate route. A burns and trauma centre is also included in the package, as the incidents of burns patients had increased in the recent past due to terrorist activities, but there is no facility for treating burns victims in Peshawar.

The government has already set up a Monitoring Committee to oversee the implementation of Frontier Development Package. The Committee comprises of Secretary, Planning and Development Division as the Chairman and includes Secretary, Finance Division, Chief Secretary, NWFP, Additional Chief Secretary, NWFP and Additional Chief Secretary, Fata as members.

The spokesperson stated that on the advice of the President, the government has already released Rs 340 million for payment of compensation to the families of the victims of suicide bombing and militant attacks and another Rs 280 million to be disbursed amongst heirs of victims of militancy in the tribal areas. The President has also directed that the process of payment of compensation should be effected immediately and the Presidency should be kept informed on a daily basis. -PR

 

[Neo]

SAP APJ grows 23 percent software revenue in 2008 ​

LAHORE (February 24 2009): Managing Director, SAP, Pakistan, Sajjad Syed said Asia Pacific Japan (APJ) continued to outperform the business software market across the region in 2008. In a statement issued here on Monday, he said he was extremely proud of the way their team in SAP Pakistan handled market conditions they experienced during the last quarter of 2008.

"In spite of the circumstances, we secured a number of strategic deals, running contrary to the trend we are seeing for the industry as a whole." "Many of our customers in emerging markets like Pakistan are continuing to embrace newer technologies to strengthen their operations and processes, all striving to be more competitive despite the economic slowdown. Increasingly, they are also seeing the value that SAP solutions have to offer," added Sajjad.

On a full year basis, SAP Asia Pacific Japan remains SAP AG's fastest growing region with 23 per cent Software Revenue growth, to 594 million. Software and Software Related Services grew at 24 per cent for the year, to 1.192 billion. All revenue figures in this release are expressed in non-GAAP constant currency terms and all growth is measured against the previous comparable period.

While SAP APJ experienced difficult market conditions in the fourth quarter, growing Software and Software Related Services at 5 per cent, Total Revenue for the full year grew at 20 per cent, to 1.532 billion.

SAP continued to fair well in South East Asia, achieving a 20 per cent growth in Software Revenue and 19 per cent growth in Software and Software Related services for the full year of 2008. Emerging markets like Vietnam, Cambodia and Pakistan especially showed strong results, with 89 per cent growth in both Software, and Software and Software Related Services revenue.

SAP reacted swiftly to the economic crisis by introducing 'Best-Run Now' value packages. These comprehensive new packages assemble offerings from existing SAP and partner solutions, combined with services, which offer speedy implementation of ready-to-run software packages, targeted at specific business processes.-PR

 

[Neo]

Construction of Suki Kinari hydro project: NWFP minister expresses reservations ​

PESHAWAR (February 26 2009): NWFP Minister for Information and Inter-Provincial Co-ordination, Mian Iftikhar Hussain, has expressed reservations over the construction of Suki Kinari Hydro-Power Project Kaghan in District Mansehra. In a statement here on Wednesday, he termed the construction as injustice with the people of the province and clear violation of provincial autonomy and the decision would not be accepted.

It may be recalled that the provincial government filed a petition in the Islamabad High Court (IHC), pleading that the provincial government should be empowered to execute the project whether from its own resources or as private venture.

The minister said that the provincial government would not withdraw from the demand of net-profit on hydropower generation located in the province either it was Turbella, Warsak or any other project including the Suki Kinari Project.

He continued that the provincial government should execute the said project through its own resources so that it could increase its resources and strengthen its economy as the provincial government has the capability of completing such type of projects and Malakand-III Hydro Power Project was a recent example of it.

Mian Iftikhar said that the government and its people had the legal and constitutional right over royalty from any power generation unit located in the province and no body could deprive from it any way.

He added that such type of decisions without taking into confidence the provincial government were the conspiracy to disturb the cordial and pleasant relations between the federal and provincial governments, which would not be tolerated any further.

He furthered that even after 30 years of completion of the project, keeping the NWFP province deprived of its legal and constitutional right was beyond comprehension taking over the said project after 30 years by Wapda was also illegal, the minister maintained

 

[Neo]

Neelum-Jhelum hydroelectric project: IDB intends to fund $458 million ​

LAHORE (February 26 2009): The technical mission of the Islamic Development Bank (IDB) would recommend to its Board and other Middle East donors to provide a funding amounting to $458 million approximately for 969-MW Neelum-Jhelum Hydroelectric Project. This was disclosed by the IDB Country Director, Farrukh Mahmood, during a wrap up meeting held here on Wednesday at Wapda House.

The four-member IDB technical mission is visiting Pakistan for finalising the technical and financial details and various financing options, including the extent and mechanism for Neelum-Jhelum Hydroelectric Project. The meeting was attended by the Wapda member (Water), Syed Raghib Abbas Shah and Wapda Secretary, Advisor to the Authority on Diamer-Basha Dam Project and other officials were also present on the occasion.

Dilating upon the current status of Diamer-Basha Dam Project, the Syed Raghib said the evaluation for pre-qualification of contractors for lot 1, 2 and 3 is under process and would be completed in March 2009. Consequent upon the approval of PC-I amounting to Rs 60 billion for resettlement by ECNEC in November last, the land acquisition for construction of the project has already been started, he added.

 

[Neo]

Power generation: 'government focusing on indigenous resources' ​

ISLAMABAD (February 26 2009): Federal Minister for Water and Power, Raja Pervez Ashraf has said that the government is focusing on alternative and indigenous resources to produce electricity on affordable prices. He asked the Alternative Energy Development Board (AEDB) to expedite their work and complete the wind and solar energy projects as early as possible.

He further asked the Board to prepare comprehensive short and long-term plans to utilise all the renewable energy resources available in the country and to attract the private sector for investing in this sector.

The Minister made these observations while presiding over the 17th Board meeting of the AEDB held here on Wednesday, The Board reviewed the progress of the ongoing projects and considered various proposals to generate electricity from wind and solar projects. The Board approved the formation of a Policy Review Committee to review the recommendations proposed by the AEDB lot Mid-term Renewable Energy Policy.-PR

 

[ejaz007]

OGDCL’s profit up, SNGPL’s down

KARACHI: As the corporate results season is in full swing a major number of listed companies announced their results on Thursday.

OGDCL: Oil & Gas Development Company Limited (OGDCL) has registered 33.61 percent growth in its profit after tax in the first half of current fiscal on the back of higher oil and gas prices.

Company’s profit after tax jumped to Rs 32.069 billion in the period under review against Rs 24.002 billion in the same period of previous year, a notice of KSE stated on Thursday. OGDCL also annou-nced an interim cash dividend of Rs 1.75 per share i.e.17.50 percent for the quarter ended on December 31, 2008. This is in addition to interim dividends already paid at Rs 2.00 per share i.e.20 percent.

The earnings per share (eps) rose to Rs 7.46 in the said period against Rs 5.58 in the corresponding period of previous year. The net sales of the company shot up to Rs 71.718 billion over Rs 56.567 billion in the previous year. The exploration and prospecting expenditures fell to Rs 3.502 billion in the period compared to Rs 4.082 billion in a year ago period.

SNGPL: Sui Northern Gas Pipelines Limited (SNGPL)’ profit after tax declined to Rs 650 million in the half year ended on December 31, 2008 compared to Rs 1.427 billion in the corresponding period of previous year. The earnings per share (eps) dipped to Rs 1.18 in the period under review to Rs 2.60 in the same period of previous year.

The net gas sales jumped to Rs 81.034 billion in the said period over Rs 58.577 billion in the previous year. The growth in the sales was washed away by the high cost of sales, which rose to Rs 72.033 billion against Rs 51.071 billion in the last year.

Bosicar: Bosicar posted heavy losses in the first half of current financial year and its loss after tax came to Rs 7.918 billion compared to profit after tax of Rs 143 million in the previous year. staff report

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