Pakistan Economy - News & Updates

[Hyde]

Industrial policy to be finalised soon: Durrani
​

LAHORE (July 23 2009): State Minister for Industries and Production Dr Ayat Ullah Durrani said that the government had decided to build a strategic reserve of 250,000 tons of fertilisers to check its shortage during the current season. Talking to media persons after a meeting at the office of the National Fertiliser Corporation (NFC) here on Wednesday, he said that strategic reserve stock would be in addition to the country's total requirement.

Elaborating, he said that the country needed three million tons of fertilisers for the Kharif season. 'We are 500,000 tons short of the total demand,' he said and added that 400,000 tons of fertiliser had already reached Gwadar and the Karachi ports. Out of this, total imported fertiliser, 164,000 tons had reached Karachi and the rest had been off-loaded at the Gwadar port. He said that another ship, loaded with 60,000 tons of fertilisers, would soon reach the country.

He also disclosed that 70 percent of the total imported fertilisers would go to Punjab, 20 percent to Sindh, 8 percent to NWFP and two percent to Balochistan. He also said that the Federal government, on the advice of the provincial governments, would ensure the supply of fertiliser in the areas where it was needed.

He said that the NFC had appointed over 600 dealers in the country, out of which 439 were in the Punjab. He said that this distribution network had been established to avoid the problems vis-a-vis the selling of the fertiliser on government-announced rates in the past. He also warned the hoarders to avoid their immoral tactics and assured them that the government would take strict measures to snub this tendency.

He said that NFC officials also had a meeting with the Chief Minister Punjab and assured them of the full support of their organisations and the National Fertilisers Marketing Limited (NFML) in meeting the fertiliser requirements of the province.

To a query, he said that the Industrial policy would be finalised in a month or two to come. Talking about the demand for new provinces, he said that those talking about creating new provinces, wanted to get political mileage from it. He said the PPP was working to give maximum autonomy to the provinces, which would bring prosperity. He also said that the Baluch people were not against the Punjab, but that the province had been neglected during the last 60 years.

To a query, he said that a foreign hand was involved in creating a law and order situation in Balochistan and Prime Minister Gillani had already conveyed Islamabad's concerns to his Indian counterpart, during a recent meeting. Rehman Malik had also taken up this issue with the Afghan President Hamid Karzai, who also assured looking into the issue.

 

[Hyde]

Manila gets lowest rice offer from Pakistan, Thailand
​

Thursday, July 23, 2009
MANILA: The Philippines is likely to buy 75,000 tons of milled rice from Thailand and Pakistan after Wednesday’s tender and will probably purchase 200,000-300,000 tons more for the rest of the year, traders said on Wednesday.

Three rice suppliers offered the lowest prices of the 25 per cent broken grade from Thailand and Pakistan at a government tender on Wednesday, the first by the world’s largest importer this year.

Global trading firm Toepfer International made the lowest offer of $472.72 per ton, C&F, for 10,000 tons of rice from Pakistan.

The second lowest offer was from Thai Hua Ltd, which offered to supply 18,000 tons at $486.28 per ton. Asia Golden Rice gave the third lowest offer of $487 per ton, for 50,000 tons, C&F, of which only 47,000 tons may be awarded. Both firms will source rice from Thailand, the world’s biggest exporter of the grain.

 

[Hyde]

KSE rushes above 7,800 points to hit 3-month high​

Thursday, July 23, 2009
By our correspondent

KARACHI: The steadily rising Karachi stocks market eventually saw the benchmark KSE -100 share Index breach through the 7,800 points level on Wednesday. Market successfully crossed this hypothetical level after staying below this mark for the last three months.

With a moderate gain of 20.58 points or 0.26 per cent, the KSE 100-share Index closed at 7,802.81 points - the three months high level. The parallel running junior 30-Index moved up by 12.88 points or 0.15 per cent and settled at 8,395.88 points.

The chief 100-Index slipped below the 7,800 points level on April 22 this year. On April 21, the market had closed at 7,834.14 points.

Beside active participation of locals, the foreign portfolio investors also injected a handsome amount of $2.79 million on the local bourse in this session, according to NCCPL.

The margin hunters did not miss the chance of booking profits at the available levels, which caused a number of blue chips to close in negative column. The closing of a few heavy weight front line stocks in positive column helped market stay high.

The giant oil & gas exploration company, Oil & Gas Development Company remained the highest point generator in the 100-Index. This scrip alone included 22.34 points in the said Index followed by Habib Bank, which added notably another 13.57 points.

The other notable stocks, which managed to maintain in green territory include DG Khan Cement, Lucky Cement, United Bank, Adamjee Insurance, Pakistan Telecommunication Company, Pak Oilfields, Pakistan State Oil, Attock Refinery and EFU General Insurance.

The Fauji Fertilizer Bin Qasim also closed in red despite of the fact that it announced to pay 50 paisa per share to their holders as first interim dividend for the half ended on June30.

The two-way trading helped market generate 46 per cent higher turnover at 213.9 million shares against 146.1 million shares changing hands yesterday on ready board. The future market maintained its lull.

Market capitalisation noted an inflow of six billion rupees and stands at Rs2,297 billion.

Ahsan Mehanti at Shahzad Chamdia Securities said that positive activity witnessed in market, as it was expecting SECP to introduce the future deliverable contracts at KSE from next week.

Rise in international oil prices to $65 per barrel, stability in rupee value in parity with dollar and expectation of significant reduction in discount rates this weekend altogether played catalyst role for positive activity in result announcement session, he added.

Moreover, the reason behind activation of a greater number of securities on board, which was 421 today, was the result of allowing of a single lot share in the market. This means that the Exchange has allowed the trading of even one share of any company through electronic trading system from Tuesday, July 21, which earlier was not allowed.

Therefore, out of total 421 actives, 203 stocks declined, 200 stocks advanced, while the value of remaining 18 actives closed unchanged.

Highest volumes were witnessed in DG Khan Cement at 19.7 million closing at Rs37.73 with a gain of 30 paisa, followed by JS Company at 17.8 million closing at Rs26.71 with a gain of 87 paisa, Oil & Gas Development Company at 15.8 million closing at Rs89.53 with a gain of Rs1.38, Lucky Cement at 12.2 million closing at Rs71.64 with a gain of Rs1.58, and United Bank at Rs11.4 million closing at Rs45.78 with a gain of 40 paisa.

 

[Hyde]

25pc duty on potato imports from India stays​

ECC body expects supply to improve with Balochistan crop by July-end

Thursday, July 23, 2009
By Aftab Maken

ISLAMABAD: A federal minister on Wednesday blocked the ministry of commerce’s proposal to abolish 25 per cent regulatory duty on potato imports from India, a participant of a meeting told The News.

Potato prices in the local market have registered a phenomenal surge after the Economic Coordination Committee (ECC) of the cabinet imposed 25 per cent regulatory duty on its imports from India in January 2009 on the request of the Ministry of Industries and Production.

Chairing a meeting of the ECC sub-committee to review the prices of essential food items, Federal Minister for Food and Agriculture Nazar Mohammad Gondal discussed the current price trends in view of the upcoming month of Ramazan.

The meeting stressed the need for continued and ensured availability of essential food items to common consumers at affordable prices without compromising the interest of local producers and farmers and decided to see a rational mechanism for enhancing supply through imports, says an official announcement by the Ministry of Food and Agriculture.

The committee would ask the Trading Corporation of Pakistan (TCP) to bring more sugar stock in the market and the State Bank of Pakistan (SBP) would be asked to ensure sugar manufacturers release further stock in the market, said the statement.

The committee decided to increase supply of potatoes, especially to the weekly bazaars from the storage. The supply would be closely monitored, it added.

The statement further said that the committee observed that potato supply would improve after the arrival of fresh crop from Balochistan which was expected by the end of July and subsequently from Sindh. Therefore, the need for import was not considered necessary.

The committee reviewed the surplus stock position of moong pulse. However, keeping in view the arrival of Ramazan the committee decided not to recommend the export of moong pulse at least until the end of the month, the statement said.

Although there is an usual increase in the consumption of dates in Ramazan, the current supply status of dates does not warrant imports. However, the supply will be closely monitored and the import will be allowed if necessary without hurting the interest of date growers, it said.

To ensure sufficient supply, in view of increased consumption in the month of Ramazan it was decided to recommend the ECC for duty-free import of lemon, said the statement.

 

[Hyde]

Nespak secures 97 projects in fiscal year 2009 ​

LAHORE (July 23 2009): National Engineering Services Pakistan (Nespak), a state organisation of consulting engineers and architects, has secured a record 97 new projects at home and abroad during FY09 costing Rs 6.5 billion, managing director Asad I A Khan said this on Wednesday.

Major overseas projects acquired by Nespak during the year include Ganges Barrage Project in Bangladesh and roads & power projects in Oman and Saudi Arabia. Khan also said that Nespak is now working on 329 engineering projects in Pakistan and 71 projects abroad. He further said that they have extended top quality architectural and engineering services in 35 countries in the Middle East, Central Asia and Africa where Nespak is considered as an ambassador of Pakistan because of its top quality professionalism.

New projects acquired in Pakistan include New Gwadar International Airport Lahore and Peshawar Airport Extension, Elevated Expressway, Rawalpindi; Improvement of Karakuram Highway from Raikot to Khunjrab (335 km), Lahore Rehabilitation Project (PhaseII), Peshawar Northern Bypass, Zarghoon Housing Scheme, Quetta, Punjab Irrigated Agriculture Investment Programme, Rehabilitation and Upgradation of Balloki Barrage and Lower Bari Doab Canal System, bridge construction over River Sutlej at Amenwala, 425MW Combined Power Plant at Nandipur, Load Despatch System Upgradation Project; Prime Minister's package for Water Supply and Sewage Treatment Plant for Multan City and some projects in Azad Kashmir.

 

[ajpirzada]

im glad to see NESPAK workin overseas as well.

 

[TopCat]

Nespak secures 97 projects in fiscal year 2009 ​

LAHORE (July 23 2009): National Engineering Services Pakistan (Nespak), a state organisation of consulting engineers and architects, has secured a record 97 new projects at home and abroad during FY09 costing Rs 6.5 billion, managing director Asad I A Khan said this on Wednesday.

Major overseas projects acquired by Nespak during the year include Ganges Barrage Project in Bangladesh and roads & power projects in Oman and Saudi Arabia. Khan also said that Nespak is now working on 329 engineering projects in Pakistan and 71 projects abroad. He further said that they have extended top quality architectural and engineering services in 35 countries in the Middle East, Central Asia and Africa where Nespak is considered as an ambassador of Pakistan because of its top quality professionalism.

New projects acquired in Pakistan include New Gwadar International Airport Lahore and Peshawar Airport Extension, Elevated Expressway, Rawalpindi; Improvement of Karakuram Highway from Raikot to Khunjrab (335 km), Lahore Rehabilitation Project (PhaseII), Peshawar Northern Bypass, Zarghoon Housing Scheme, Quetta, Punjab Irrigated Agriculture Investment Programme, Rehabilitation and Upgradation of Balloki Barrage and Lower Bari Doab Canal System, bridge construction over River Sutlej at Amenwala, 425MW Combined Power Plant at Nandipur, Load Despatch System Upgradation Project; Prime Minister's package for Water Supply and Sewage Treatment Plant for Multan City and some projects in Azad Kashmir.

There is no Ganges Barrage project in Bangladesh. Only Padma(Ganga) bridge which is over 6 KM long going on right now and consultancy is offered to a Newzealand company.

 

[Hyde]

There is no Ganges Barrage project in Bangladesh. Only Padma(Ganga) bridge which is over 6 KM long going on right now and consultancy is offered to a Newzealand company.

It is man

Development Design Consultants (DDC), a Bangladeshi concern, will take the project to the drawing board with some assistance from Australian, Chinese and Pakistani consultants.

Ganges Barrage in sight of drawing board :: Bangladesh :: bdnews24.com ::

 

[Hyde]

500 MW electricity added to national grid: Pervez Ashraf​

Updated at: 1824 PST, Friday, July 24, 2009
500 MW electricity added to national grid: Pervez Ashraf ISLAMABAD: Minister for Water and Power Raja Pervez Ashraf Friday said the government is taking practical steps to substantially enhance power generation and overcome the load-shedding.

Talking to newsmen here, he said power situation is improving with each passing day and five hundred Megawatt electricity has been added to the system which will help reduce the duration of load-shedding.

He said the top PPP leadership is alive to the problem of load-shedding and is striving to alleviate the sufferings of the people.

He said that all the new rental power plants will be functional by December which will help end the load-shedding.

Responding to a question, the Minister said that a new software has been developed to address complaints of masses regarding excessive billing.

Earlier the Minister chaired an inter ministerial meeting to review the overall power situation in the country. It expressed satisfaction that there was no unannounced load-shedding in eighty five percent areas of Karachi on Thursday.

 

[Hyde]

Pakistan to welcome more Chinese investment: foreign minister​

ISLAMABAD (July 24 2009): Foreign Minister Makhdoom Shah Mahmood Qureshi said Pakistan would welcome Chinese companies to invest in country's various sectors, particularly the energy sector. Talking to Chinese Foreign Minister Yang Jiechi in Phuket, Thailand the two sides expressed satisfaction over the strength of bilateral relations, which were underpinned by mutual interest and mutual trust.

The Foreign Minister who is in Thailand to attend the 16th ARF Ministerial meeting discussed bilateral and international issues of mutual interest. The Foreign Minister thanked the Chinese Foreign Minister for China's continued assistance in various fields and said Pakistan would welcome more Chinese companies to invest.

He also highlighted various areas for future Chinese investment, which included infrastructure, agriculture, health, construction of small and medium sized dams, and banking sector co-operation. The energy sector was particularly mentioned including power projects like Thar Coal and conducting hydrological and geological studies.

The Foreign Minister assured the Chinese Foreign Minister that Pakistan would welcome more Chinese participation in development projects and for this purpose would ensure security and protection of Chinese nationals in Pakistan. The two leaders noted with satisfaction that both sides were making efforts for the convening of the Joint Economic Group meeting to boost economic and commercial ties.

The Foreign Minister reiterated Pakistan's support for China's sovereignty, stability, and progress and felicitated him on the 60th anniversary of China's Independence. The Chinese Foreign Minister reaffirmed that Pakistan's security and development was indispensable for the peace and stability of the region and lauded Pakistan's current efforts in the struggle against terrorism and militancy.

 

[Hyde]

Failure to achieve export target: Gilani to quiz Commerce Ministry high-ups today ​

ISLAMABAD (July 24 2009): Prime Minister Syed Yousuf Raza Gilani is to quiz the Commerce Ministry high-ups on Friday (today) for failure to achieve the export target although the officials spent most of their time on foreign tours pretending to be taking steps for export boost. Trade Policy 2009-12 will also be discussed at a special meeting at Prime Minister Secretariat convened for this purpose.

The government had fixed export target for 2008-09 at $22.1 billion but the Commerce Ministry could only achieve 80.5 percent of the target. The sources said Prime Minister Gilani during his visit to the Commerce Ministry a couple of days ago had directed that at least the revised target of $19.2 billion be achieved, but unfortunately the advice of the Prime Minister went unheeded.

The Commerce Ministry is proposing 25 percent growth in exports in three years ie 5 percent during 2009-10, 10 percent in 2010-11 and another 10 percent in 2011-12, which means export target for the current fiscal year will be around $19.5 billion. There are a few export sectors, which showed laudable growth in 2008-09.

In 2007-08, the Commerce Ministry had fixed export target of $19.2 billion and achieved 99.2 percent ($19.052 billion) but during 2008-09 its performance remained zero. "Setting up of a hedge against any revision in interest rate, insurance of foreign buyers, subsidy on inland freight charges and credit availability for the industrial sector are also under study," the sources added.

The government is also considering penalising power distribution companies for not supplying required power to the industry as per the agreement signed at the time of connection. The sources said the Commerce Ministry will also announce incentives for those sectors which showed growth in export during June-July 2008-09.

During 2008-09, export of raw cotton declined by 11.7 percent, cotton yarn by 10 percent, knitwear by 8.3 percent, bedwear 7 percent, towels 5.8 percent, tents, canvas and tarpaulin by 11.6 percent and readymade garments by 10.9 percent. Only cotton yarn showed growth of 3.7 percent and cotton carded or combed by 12.3 percent.

Food group has shown 6.7 percent growth in exports as export of rice increased by 18.7 percent, oil seeds, nuts and kernels by 667.4 percent, spices by 241 percent, tobacco 859 percent and leguminous vegetables by 111 percent. However, sugar export declined by 92.6 percent. Export of petroleum products and coal during the 2008-09 also declined by 35.5 percent.

IMPORTS: According to foreign trade figurers, there was negative growth of 10.5 percent in machinery import but power-generating machinery showed a growth of 48.5 percent to $1148.7 million from $1177.7 million in the same period last year.

Construction and mining machinery and electrical machinery also showed a growth of 6.3 and 1.4 percent, respectively. Telecom sector showed 57.2 percent negative growth, of which mobile phone import declined by 77 percent and other apparatus by 47.5 percent. Import of agriculture machinery also showed a negative growth of 24 percent.

The statistics further show that import of petroleum products declined by 17 percent from $11462.9 million in 2007-08 to $9509.7 million in 2008-09 for which the petroleum import bill has substantially decreased. One of the officials of the Commerce Ministry told this scribe that this time the Trade Policy may not have any special treatment for Indian products as has been the tradition in the past.

 

[Hyde]

CAA inaugurates Fast Tract Facility Counter​

KARACHI (July 24 2009): Air Vice Marshal, Riaz ul Haq, Deputy Director General, Civil Aviation Authority inaugurated the Fast Tract Facility Counter at Jinnah International Airport. Now the arriving business and first class international passengers can use this facility for speedy immigration. A Business Visa Counter has also been established where businessmen can avail visa facilities on arrival.

The service works round the clock, facilitating passengers for a smooth and hassle-free accessibility on the go. The senior CAA officials were also present on the occasion including Syed Hamid Abbas Gardezi, Principal Director Airport Services, M. Hanif Aurakzai Regional Director (South), Kashif Ali Hashmi, Chief Commercial and Marketing Officer and other CAA Directors.

Talking on the occasion Air Vice Marshal, Riaz ul Haq, Deputy Director General, Civil Aviation Authority, said that CAA priority is passenger convenience and this facility would surly add to an ever increasing range of services for the travelling public.

Giving details of the efforts CAA has put in during last two years for improvement of service standards for travelling passengers. M. Hanif Aurakzai said that CAA has launched special Airport Services Improvement Programme which include passenger feedback through comments cards, suggestion boxes, mystery passenger surveys, exchange of letter, e-mails and these feedbacks received are used for further improvement of facilities and services at airports.-PR

 

[Hyde]

Railways, French companies finalising equipment import terms today ​

ISLAMABAD (July 24 2009): Pakistan Railways and France will finalise the import of rail equipment on Friday (today) as agreed in a meeting of the representatives of leading French companies GEISMAR and CORUS Rail with Federal Minister for Railway Ghulam Ahmad Bilour here on Thursday.

It was also agreed that the next meeting of the French delegation would be held on Friday (today) in Lahore with Chief Engineer Railways and the Executive Committee, which will finalise the import of rail equipment from France. The commercial Manager of CORUS Dominique Chiesura and Director General of GEISMAR, Danial Geismar briefed the Federal Minister and Secretary Railways about the modern equipment and machinery being manufactured by their companies especially for track laying, track maintenance and other rail related equipment.

Federal Minister reiterated, "we want to establish Pakistan Railways on reliable and strong footings for general masses by improving its tracks." He said that Pakistan Railway expects from France government to allocate some funds for its uplift as France in one of the main friends' donor countries of Pakistan.

The Secretary Railways Sami-ul-Haq Khilji also appreciated the French rail system and said that technical co-operation and business between the two countries in rail sector will help in improving its track, which automatically will enhance the speed of trains. It may be recalled that these rail companies are the part of French delegation led by Anne-Marie Idrac, Minister of State for External Trade, which is on an official visit to Pakistan nowadays.

 

[Omar1984]

‘Pakistan should be used as gateway for world market' ​

ISLAMABAD: Ambassador of Tajikistan, Zubaydov Zubaydullo Najotovich, on Friday reiterated that Pakistan is a gateway to the world and Central Asian States, which are in a dire need of access to the world through the port of Pakistan.

The ambassador expressed these views during a meeting with the Federal Minister for Industries and Production, Mian Manzoor Ahmad Wattoo, here today. During discussion he also pointed out that Pakistan was also looking to import Tajik power to its Northern Areas as Tajikistan has huge hydropower potentials and cheapest electricity in the world.

Easy and smooth supply of energy has become the top-most concern of every government around the globe. The ministers of four countries, Pakistan, Tajikistan, Kyrgyzstan and Afghanistan signed a resolution to proceed further with the Central Asia/South Asia Regional Electricity Market (Casarem) project envisaging transmission of 1300MW from Tajikistan and Kyrgyzstan to Afghanistan and Pakistan; but further commitment to the project would be linked to the availability of financing. A consortium of three financial institutions i.e. Islamic Development Bank, Asian Development Bank and World Bank has recently agreed to provide $1 billion to Pakistan to import electricity from Central Asian Republics (CARs). Together with the government of Tajikistan and Kyrgyzstan an inter-governmental council was established in 2007 and a secretariat in 2008 with the objective of developing the electricity market and the CASA 1000 project. staff report

 

[Omar1984]

Pakistan, Denmark to explore trade prospects ​

KARACHI: Ambassador of Denmark Anders Hougaard has expressed that presently Pakistan and Denmark were facing bilateral trade deficit.

This he said during his visit to the Karachi Chamber of Commerce and Industry (KCCI) on Friday.

Acting President KCCI, Muhammad Ali welcomed him and expressed his gratitude towards better relationship among the governments and people of both Pakistan and Denmark.

Ambassador of Denmark informed that his visit to the KCCI was to invite the private sector of Karachi to initiate B2B (Business to Business) meeting with their Danish counterparts in order to explore new bilateral trade prospects. He stated that Danish Embassy in Islamabad would be pleased to facilitate for arranging the B2B meetings of Pakistani and Danish businessmen. He said that great potential of bilateral trade does exist, which was not properly utilised in the past. He asked the acting president KCCI to encourage the interested KCCI member companies for bilateral trade.

Ali was of the view that the private sector of both countries must come forward and identify the potential items for bilateral trade to enjoy friendly economic relationship. He drew the attention of the Danish ambassador towards exports potential in textile products, leather goods, agro-based products, handicrafts, surgical and sports items.

He also asked the Danish ambassador for deliberation on the prospects of joint ventures in dairy farming, agriculture machinery, light engineering and alternate energy solutions. staff report