Pakistan's Economy - News and Updates

[Introvert]

Pakistan seeks to cash in on cement exports

Cement exports of Pakistan are expected to grow steadily in the years to come, as Russia and Qatar are determined to develop their infrastructure ahead of hosting FIFA’s World Cup in 2018 and 2022, respectively, a brokerage house has said.
“We believe a massive infrastructure build-up would be required in these two countries for hosting the event, especially in the case of Qatar, and we believe that Pakistan would be benefiting the most through exporting labour and cement,” said Atif Zafar, an analyst at JS Research.
The recent past suggested that Pakistan’s cement exporters had notably benefited from the infrastructure build-up in Federation Internationale de Football Association (FIFA) World Cup host countries. South Africa is the most recent example in this case, he added.
Omar Rafiq, an analyst at BMA Capital, was not optimist about seeing massive growth in Pakistani cement exports in step with infrastructure build-up in the two counties. “Pakistan’s cement exports may increase at a negligible pace in these cases.”
He maintained that Saudi Arabia and United Arab Emirates (UAE) would be more suitable countries for Qatar to import cement for the purpose, as these two had closer ties with Qatar than Pakistan.
“At present Saudi Arabia holds an excessive cement production of 11mn tonnes per year, which may be increased in the years to come as it has planned to increase its total product to 64mn tonnes in the next two-three years from 50mn tonnes at present.”
Similarly, the UAE held 4mn tonnes cement production is in excess, he added.
As far as the case of Russia was concerned then it may opt for importing cement from some European countries, as there were some production lines in the continent, which might be run on 100% capacity for a brief period of time.
However, Zafar said that with Pakistan presently producing an excess capacity of 13mn tonnes and its geographic proximity to both these countries, it was expected that Pakistani cement exports, which currently stand at 10mn tonnes (21% of the total installed capacity), would be rising in the long-term, he said.
“It could be a timely shot in the arm for Pakistan cement exports, which declined after the Dubai financial crisis. Moreover, export prices which came down to $50-52 per tonne at present from a high of $80-85 per tonne in 2008-09 could too see upward revision.”

Gulf Times ? Qatar?s top-selling English daily newspaper - Qatar

 

[WAR-rior]

Pakistan seeks to cash in on cement exports

Cement exports of Pakistan are expected to grow steadily in the years to come, as Russia and Qatar are determined to develop their infrastructure ahead of hosting FIFA’s World Cup in 2018 and 2022, respectively, a brokerage house has said.
“We believe a massive infrastructure build-up would be required in these two countries for hosting the event, especially in the case of Qatar, and we believe that Pakistan would be benefiting the most through exporting labour and cement,” said Atif Zafar, an analyst at JS Research.
The recent past suggested that Pakistan’s cement exporters had notably benefited from the infrastructure build-up in Federation Internationale de Football Association (FIFA) World Cup host countries. South Africa is the most recent example in this case, he added.
Omar Rafiq, an analyst at BMA Capital, was not optimist about seeing massive growth in Pakistani cement exports in step with infrastructure build-up in the two counties. “Pakistan’s cement exports may increase at a negligible pace in these cases.”
He maintained that Saudi Arabia and United Arab Emirates (UAE) would be more suitable countries for Qatar to import cement for the purpose, as these two had closer ties with Qatar than Pakistan.
“At present Saudi Arabia holds an excessive cement production of 11mn tonnes per year, which may be increased in the years to come as it has planned to increase its total product to 64mn tonnes in the next two-three years from 50mn tonnes at present.”
Similarly, the UAE held 4mn tonnes cement production is in excess, he added.
As far as the case of Russia was concerned then it may opt for importing cement from some European countries, as there were some production lines in the continent, which might be run on 100% capacity for a brief period of time.
However, Zafar said that with Pakistan presently producing an excess capacity of 13mn tonnes and its geographic proximity to both these countries, it was expected that Pakistani cement exports, which currently stand at 10mn tonnes (21% of the total installed capacity), would be rising in the long-term, he said.
“It could be a timely shot in the arm for Pakistan cement exports, which declined after the Dubai financial crisis. Moreover, export prices which came down to $50-52 per tonne at present from a high of $80-85 per tonne in 2008-09 could too see upward revision.”

Gulf Times ? Qatar?s top-selling English daily newspaper - Qatar

any update on indian demand for cement ?

indians will be investing more than 1.3 tr in next 10 yrs !

we will need some serious cement for this and as far as i know indians will import cement and iron !

why not pakistan for this? it will be cheap and easy to transport !

 

[salman77]

Pakistan allows 1 mn-tonne wheat export after ban

Pakistan on Tuesday decided to allow the private sector to export one million tonnes of wheat after a three-year ban, finance ministry officials said.

“The government has allowed the private sector to export one million tonnes of wheat,” one of the officials said after a meeting of the Economic Coordination Committee (ECC), the government’s highest economic decision-making body.

He did not elaborate. Pakistan banned wheat exports in 2007 because of shortages and high prices in the domestic market.

Pakistan, Asia’s third-largest wheat producer, deferred plans in August to export 2 million tonnes of surplus wheat, after summer floods washed away at least 725,000 tonnes of the grain and raised concern about the next crop.

Traders said in early November that despite damages from summer floods, Pakistan still has a surplus for export as wheat stocks soared this year after a bumper crop of 23.86 million tonnes in 2009-10, with a carryover of 4.2 million tonnes from the previous crop.

The central government in November set an ambitious target of 25 million tonnes of wheat from the 2010-11 crop, despite vast damage to farmland in Punjab and in southern Sindh province.

Pakistan allows 1 mn-tonne wheat export after ban | Pakistan | DAWN.COM

 

[salman77]

Pakistan, China air cargo service launched

KASHGAR: The air cargo service between Pakistan and China has been launched with the arrival of first maiden flight from Islamabad here on late Friday.

At the inaugural arrival ceremony, Sardar Aminullah Khan, Economic Minister at Embassy of Pakistan, Beijing, the Deputy Commissioner of Kashi prefecture and representatives of various related agencies including Customs, Civil Aviation, Quarantine, Immigration, port management and representatives of the Airline were present.

Speaking on the occasion, the Economic Minister highlighted the important aspects of the Pak-China relations.

“There is big potential for business for the air cargo service especially during winter season when the connectivity through land between the two countries remained suspended”, he observed.

He further pointed out that through cargo service, products of the two countries not only available easily whole the year in the markets of both sides but also in the Middle Eastern countries and Central Asian States.

He also appreciated the assistance provided by the Chinese government to Pakistan at the hours of the need.

Sardar Amin also stated the present economic policy framework of the Chinese government that envisages priority to the development of the western regions including Xinjiang with substantial investment.

The plan includes the development of infrastructure such extension of high speed train and other modes of transport and communication.

The special development zone status recently assigned to Kashgar was also discussed along with its impact on Pakistan in terms of expanded trade, development, investment and facilitation to Pakistan and the adjoining region of Central Asia.

The Minister appreciated the efforts of the sponsors of Rayyan Air Lines for successful operation of the first cargo flight from Pakistan which will go a long way in promoting the trade and investment between Pakistan, China and Central Asia. Cooperation extended by the local government and other agencies in this regard was also appreciated by the Economic Minister.

The Deputy Commissioner, Kashgar Wang in his speech described the importance of reliable communication links between Pakistan and China and expressed the desire for further expanding such connectivity.

He expected the introduction of passenger flights also by the airline. The Deputy Commissioner explained the huge potential of the region after recent efforts for fast development of the area which is necessary for transferring the benefits of the development to the people of the region in terms of better standards of life, employment and other basic facilities.

Captain Bhatti, Chairman of Rayyan Airlines also spoke on the ceremony. He appreciated the cooperation extended by the local government and the other related agencies of the government in Kashgar to make the launch of cargo service possible.

The flight took about 90 minutes from Islamabad to Kashgar and was received by the Deputy Commissioner, the Economic Minister and heads of all related agencies.

This was the first international cargo flight ever landed in the city and the participants in the ceremony were delighted with the initiation of the operation by an airline of the friendly country.

The Foreign office of Kashgar oversaw all the arrangements in this regard.

Pakistan, China air cargo service launched | Business | DAWN.COM

 

[salman77]

Pakistan, the largest kinnow grower

The scientists of National Agricultural Research Centre (NARC) have developed a new seedless variety of kinnow, which is known as kinnow mandarin orange in the world. The production of seedless kinnow on commercial scale in orchards of Sahiwal would probably be started by this year and hopefully show bright prospects of export.

Chaudhry Niaz, a team member of NARC, who discovered the seedless kinnow said, “The new plant can bear fruit in two years, while full production would start in three to four years that will reduce the high number of seeds.” According to international standards a fruit having one to five seeds is categorised as ‘seedless fruit’ while a normal kinnow has about 18 to 30 seeds, which people from western countries don’t like as much.

Pakistan is among the top 10 citrus growing countries in the world. The country has vast potential to produce tropical, subtropical and temperate fruits, flowers and vegetables, which are waiting to be exploited. There is a need to focus on horticulture and processing industries for value addition.

Kinnow is known as a special variety of citrus fruit and due to unique climatic conditions it is grown in Pakistan. It has tremendous potential of export to many countries. The twofold increase in exports of kinnow had already taken place by exploring new markets like Russia, Iran and China.

About 200,000 metric tonnes kinnow were exported during 2005-06, showing more than a 100 percent increment over the previous year’s exports and a 25 percent of increase over the record ever highest export of 149,000 metric tonnes of kinnow. In 2008-09 the export was 177 million kilogrammes (kg) that climbed to 361 million kgs in 2009-10 earned $45.5 million and $97.8 million, respectively.

According to the World Trade Organisation (WTO) requirements of exports, it calls for strict compliance with international quality and health safety standards. Besides, best agricultural practices and dedicated production for specific markets both in terms of timely availability in particular tastes, size and colour. Therefore, the producers and processors need to upgrade their capacities and facilities to produce fruits of international standard.

The Agribusiness Development Project was launched with the assistance of Asian Development Bank aimed to provide business development, support services and facilitate the evolution of enabling environment for agribusiness investment.

The tax relief and other support measures announced by the government over the past years in support of the horticulture crop production and agro industry development would also help to improve the competitiveness of the product and would fetch better prices.

The government has declared horticulture as a priority sector and making efforts to improve the value chain and identifying new markets. The quality of product and the shelf life is being improved so that it could be introduced in the high-end markets.

Exports: Kinnow has already been introduced in more than 25 countries of the world. Its exports can further be increased by manifold if modern marketing techniques are applied. The fruit is among the main exportable horticulture commodities from Pakistan. Annual production of citrus on an average is estimated about 2 million ton, of which 90 percent are kinnow, and export also reached to 360,625 tonnes.

The world export market for horticulture products is about $80 billion, in which Pakistan’s share was just $140 million in 2004-05. The fruits exports were $194.75 million in 2008-09.

Pakistan exports to Gulf States, Indonesia, Saudi Arabia, Philippines, Sri Lanka, Afghanistan and CIS that are been supposed as traditional markets. East Europe, Iran and China are emerging markets. The export to Russian Federation reached 31,000 tonnes, Ukraine 5,000 tonnes and Iran 22,000 tonnes.

History: Most citrus species originated in Asia, around the Khasia Hills of Assam and southern parts of China, from where this fruit was taken to other parts of the world.

In the 15th century, citrus trees were raised only in private gardens of Moghul emperors and other rich people, as this was considered to be a luxury and commercial exploitation was limited at that time.

The records show that an orange variety popularly known as ‘sangtareh’ had found in the region of Lahore, Pakistan. Moghul Emperor Humayun praised this fruit in the following words. “Indeed there is no tasty fruit than the ‘sangtareh’, a local name for sweet orange. Further, sangtara has been mentioned in the famous book ‘Ain-e-Akbari’ by Moghul Emperor Akbar the great; after this the fruit was popularly called as ‘shahi sangtara’ or King Orange.

Kinnow was evolved as a result of cross between ‘king’ and ‘willow-leaf’. The cross was made by H B Frost, a citrus breeder at the Citrus Research Centre, University of California, USA, in 1951. Both of the parents have Indo-China origins. The name was derived by combining the first and last words of the two parents ie ‘kin’ from king and ‘ow’ from willow joined by ‘n’ in the centre to form ‘kinnow’.

The fruit was commercially exploited since 1958, and is now grown in Pakistan. It is been identified in all over the world for its special flavour and taste, which is the result of a series of grafting and hybridization research work conducted in Pakistan over the years.

Kinnow when ripe is deep cadmium yellow. The surface is smooth and glossy. Its shape is oblong round. The size is medium to large, from 64mm to 84mm in diameter. The rind is easy to peel. The fruit is very juicy, fleshy and can be divided very easily into individual segments.

Harvest season: Kinnow can be harvest from mid November and continues up to May. However, January to March is the peak harvest season.

Daily Times - Leading News Resource of Pakistan

 

[salman77]

Pakistan to boost trade ties with UAE

ISLAMABAD: Pakistan attaches great importance to its cordial and friendly ties with the United Arab Emirates and desires to further cement the socio-economic and trade relations between the two countries, Punjab Chief Minister Shahbaz Sharif said on Sunday during his meeting with Dubai International Financial Centre (DIFC) Governor Ahmed Humaid Al-Tayer.

The DIFC is the world’s fastest growing international financial centre representing foreign banks from the USA and Europe. Shahbaz, while thanking the UAE government, said that the UAE, and particularly Shaikh Nahyan Bin Mubarak al Nahyan, had always shown support for Pakistan, which translated into concrete investments in Pakistan.

The DIFC governor welcomed him and assured of continued support from the UAE to the Pakistan government.

Giving presentation on the financial centre, DIFC Chief Economist and Head of External Relations Dr Naseer Saidi pointed out the areas in which the DIFC could help Pakistan revive its economy.

Meanwhile, the CM also met with the CEO of Burj Khalifa along with representatives from companies Emaar, Habib Bank and Oman Insurance. They discussed the investment incentives offered by Pakistan and the political will of the government to prioritise UAE investment and trade interests in the country.

Earlier, Shahbaz Sharif started the second day of his business visit to Dubai, UAE with a meeting with Haji Muhammad Rafiq Giga, the chairman of the Giga Group of Companies, at Burj Khalifa.

At an event organised by Habtoor Group, UAE’s third largest group known for its real estate marvels, he said that the success that Habtoor Group had seen in the UAE had been an inspiration for Pakistani companies. Also, the 100-member delegation, that accompanied the CM to the UAE, visited the Dubai Chamber of Commerce, the Sharjah Chamber of Commerce and the Economic Department of Dubai and signed MoUs of collaboration for trade and investment projects in Punjab. The delegates also met their counterparts in respective sectors to explore potential joint ventures. The CM is on a 3-day visit to the UAE.

Daily Times - Leading News Resource of Pakistan

 

[bc040400065]

State Bank’s Financial Stability Review 2009-10

Financial system size grew to Rs 9.2trn by June 2010

Wednesday, December 15, 2010
KARACHI: The size of the Pakistan’s financial system, in terms of assets, increased to Rs 9.2 trillion by end-June 2010, showing a robust growth of 20 percent from December 2008 level of Rs 7.71 trillion, says State Bank’s Financial Stability Review 2009-10 released Tuesday.

The report, which presents an assessment of financial stability for 2009 (CY09) and the first half of 2010 (H1-CY10), is based on the theme of “Role of Government in the Financial Sector” and assesses the government’s developmental role in enhancing the financial development in the country.

The report said that stability of the financial system is largely derived from the pre-dominant position of the banking sector, as other components of the financial system continue to grow at a more gradual pace. “Domestic banking sector assets constitute 73.2 percent of total financial system assets”, the report added.

It said the bank deposits, which have a key contribution in maintaining financial stability, grew by 13.5 percent in CY09, and 8.2 percent in first half (CY10), bringing the total deposit of the banking system to Rs 5.1 trillion by end-June CY10. “This bodes well for enhancing prospects of financial stability, especially keeping in view the slowdown in deposits growth in CY08,” the report added.

The deposit growth is largely driven by growth in home remittances of 23.9 percent (in USD terms), gradual economic recovery, and the substantial increase in government borrowing, a portion of which flows back into the banking system in the form of deposits, it added. The report opined that healthy deposit growth is indicative of banks’ resilience to the competition from the National Savings Schemes (NSS), which generally offer a higher rate of return than bank deposits. It said that the pace of deterioration in the quality of advances slowed down considerably as in CY09 Non Performing Loans (NPLs) increased by 24.2 percent to Rs 432 billion and further by 6.4 percent to Rs 460 billion by end-June CY10. ‘Going forward, NPLs remain a key cause of concern for the banking sector,’ it added.

However, the report noted that structural weaknesses in the process of revenue generation, significant rigidities in government spending, expansion in quasi-fiscal operations have added to the fiscal burden, which is increasingly financed from the financial system. It pointed out that the banks’ exposure to the government increased significantly during 2009 and in the first half of 2010, with particular concentration in the power sector due to the ongoing issue of circular debt, and continued increase in lending to public sector enterprises and commodity finance in general.

Finding the government to be a captive client, banks’ behaviour to lend more to the government and to public sector agencies impedes the process of productive activity in the economy, it said. This causes crowding out of the private sector, to the extent that demand for credit exists, which in turn carries long-term implications for economic growth, with feedback impact on banks’ asset quality and hence on financial stability, it added.

“In the current circumstances, while it may be prudent for banks to allocate their loan and investment portfolio in favour of public sector to maximise profits in the short run and minimize risks, a long term strategy requires an allocation of their portfolio in favour of the private sector, which is the main engine of growth and productivity,” the report added. At the moment, the flow of bank credit to the private sector remains hampered and the basic objective of financial intermediation i.e. efficient allocation of resources is not being met, the report opined and stressed upon the need to reverse this trend on a priority basis.

Referring to other components of the financial system, the report said that the dormant element of funding risk in case of Non-Bank Financial Institutions (NBFIs), which emerged as a strong threat to their commercial viability in CY08, continues to be a source of systemic risk. Whereas, insurance sector, on the other hand, continues to provide requisite support to the economy, despite its small size and low penetration.

With regard to financial markets, the report said that in contrast to the volatility in global financial markets since the inception of the global financial crisis, financial markets in Pakistan have continued to strengthen, primarily due to the low level of integration with global financial markets, and in response to the ongoing reform process, domestic financial markets continue to provide requisite support to the financial system in performing its function of financial intermediation. staff report

Daily Times - Leading News Resource of Pakistan

 

[salman77]

China to help Pakistan enhance steel production

BEIJING: Pakistan-China cooperation in the area of expansion of steel production is part of the 5-year Development programme, said Ambassador of Pakistan to China Masood Khan. In an interview to APP ahead of the Chinese Premier Wen Jiabao 3-day official visit to Pakistan starting from Friday, the Islamabad envoy to Beijing said specifics have to be discussed by the two sides. “We would look at the entire steel production picture,” Khan said when asked to comment on media reports about expansion of Pakistan Steel Mills. Khan suggested Pakistan enhance exports to China as “there is a need for visit of more buying missions from China to Pakistan; a greater number of Pakistani traders participation in trade fairs/exhibitions in China; trade seminars in Pakistan and China; visa facilitation; establishment of an Electronic Database Interchange for clearance of FTA goods; and establishment of cross-border supply chains.” He however said the second session of Pakistan-China Free Trade Commission held in Beijing last month has taken decisions to address this aspect comprehensively. More than a dozen MoUs/ Agreements and over 20 business-to-business MoUs/ Agreements are likely to be signed during Premier Wen visit to China, Khan said. The agreements, he pointed out will assist us with the flood reconstruction as well as launching of a new Pakistan-China energy cooperation mechanism so that we can look holistically at the energy requirements of Pakistan in short and long term periods.

Daily Times - Leading News Resource of Pakistan

 

[Aeon]

Russian investors meet Rehman | Business | TheNation

ISLAMABAD (December 16, 2010) (APP) - A delegation of Russian investors Wednesday called on Interior Minister Rehman Malik and discussed investment opportunities in Pakistan.

Terming Pakistan as `business-friendly country' the Russian investors expressed their desire to launch ventures in Pakistan, which was offering lucrative potentials for foreign investment in various sectors.

The Interior Minister assured the Russian investors of foolproof security to their business in Pakistan. He apprised the Russian entrepreneurs of tremendous investment opportunities in Pakistan.​

 

[Aeon]

Australian parliamentary team arrives | Business Recorder

ISLAMABAD (December 17, 2010) : A visiting 8 member Australian Parliamentary delegation led by the President of the Legislative Assembly of Australia (Chairperson State Senate) Mrs Amanda Fazio, currently on an official goodwill visit to Pakistan were given a briefing on the Privatisation Policy, Programme, initiatives, available investment opportunities and the process here on Thursday.

The delegation was informed that Pakistan's Privatisation Programme being transparent and open was being termed most successful in the South Asia, Central Asia and the Middle East regions by the leading investment houses and the investment groups as it yielded over US $9 billion proceeds (Rs 476 billion) through the privatisation of 167 transactions.

PC plans to proceed with Equity Linked Instruments (Convertible Bonds) for SOEs in International Markets to tap private sector for funding turnaround efforts and to utilise the proceeds to fund future growth plans of these entities.

The PC has also twelve (12) active transactions in the services, power, banking, industrial, infrastructure, production and manufacturing sectors, which include Pakistan Post, SME Bank Limited, Heavy Electrical Complex, Pakistan Machine Tool factory, Pakistan Mineral Development Corporation, National Power Construction Company, Morafco Industries (Machinery on 'as is where is basis' and six (6) power supply and generation projects ie Islamabad Electrical Supply Company, Peshawar Electrical Supply Company, Quetta Electrical Supply Company, Hyderabad Electrical Supply Company, Faisalabad Electrical Supply Company and Jamshoro Power Company Limited.

The distinguished guests were informed that the present government Privatisation Policy was emphasised on sale of 26 percent shares of the entities of Privatisation list with management control for value addition, improving the efficiencies and enhancing the production and making them profitable before offering the turnaround entities to the potential sound investors instead of just divesting the majority chunk.

The other entities on privatisation list includes Pakistan Railways, Pakistan Steel Mills, PTDC Motels and Restaurants, Utility Stores Corporation and Stores, State life Insurance Corporation, Pakistan Reinsurance Company, National Insurance Company, Printing Corporation of Pakistan, Services hotel, Sindh Engineering and Republic motors Limited.

He detailed that 100 percent State Owned Enterprises (SoEs) in the chemical, textile, nitrogen fertiliser, cement, rice, roti and light engineering sectors while 98 percent units of automobile industry, 96 percent ghee (oil) mills and 100 percent of phosphate fertiliser units have been privatised. Banking industry privatised substantially due to which 80 percent of the banking sector is under private ownership, he added.

Elucidating the salient features of the revolutionary project Benazir Employees Stock Option Scheme (BESOS) of the present government to empower the workers of the SoEs, the delegation was informed that twelve percent (12 percent) GOP Shares of 77 SoEs valuing to the tune of Rs 116.082 billion were being given to employees free of cost on the basis of length of service of employees. The Government Guaranteed buy back of these unit on retirement on superannuation or medical ground, retrenchment by organisation or death.

The briefing also focused Institutional Arrangements, TOR and Composition of Cabinet Committee on Privatisation (CCOP), functions of Privatisation Commission (PC), composition of PC Board and the detailed procedure of the process.

Giving an overview of the Geo-Strategic Location of Pakistan, the delegation was informed that having rich natural resources, Pakistan is the Asia's future energy and trade corridor. The purpose of undertaking the Privatisation of SoEs is to reduce the participation of the government in commercial activities, to deregulate the economic and commercial functions, to help the economy move from State control to private control, switch from Monopolistic or oligopolistic markets to competitive markets, Financial repression to financial liberalisation and to turnaround the inefficient state owned companies into efficient private enterprise.

The leader of the delegation the President of the Legislative Assembly of Australia (Chairperson State Senate) Mrs Amanda Fazio and members of the delegation lauded the efforts for the protection of the workers rights through their empowerment and expressed that there existed vast scope for the Australian private sector to avail the available investment opportunities in Pakistan's Privatisation Programme and further stated that there was similarity in the privation through Public private Partnership of Australia and Pakistan. The briefing was followed by Q and A session.

The members of the Australian delegation included Mrs Justice Joanne Harrison, Judge of the State of the Supreme Court, Ms Lynda Voltz Member Legislative Council (State Senator), Shaoquette Mosalmane (First elected Muslim state Senator), Mrs Dawn Fardell, member State parliament, Ms Sonia Hornery, Member State parliament and Parliamentary Secretary, Ms Cassandra Wilkinson, Senior Policy to the Australian Premier, Australian born entrepreneur of Pakistan origin Kashif Amjad, CEO Slimtel and Vice-President of Pak-Australia Business Council and Jon Bonnar, First Secretary of Australian High Commission to Pakistan. The senior officials of the Privatisation Commission were also present during the meeting.-PR

Copyright Business Recorder, 2010​

 

[salman77]

Sri Lanka, Pakistan bilateral trade to reach US $ 1 b by 2015

Bilateral trade between Sri Lanka and Pakistan is targeted to be in the region of US $ 1 Billion by 2015. Sri Lanka and Pakistan should aim to increase the current level of bilateral trade between the two countries to US $ 500 million or even US $ 1 billion by 2015, the newly appointed Consul General of Sri Lanka to Karachi, D W Jinadasa said.

Speaking to the Pakistani newspaper Daily Times, Jinadasa said that bilateral trade between the two countries which was US $ 158 million in 2005 has increased to US $ 252 million in 2009 and the real potential of bilateral trade is yet to be explored.

He said that a target of US $ 1 billion is within reach in the next five years given the special characteristics of the cordial relations, positive economic fundamentals, and keenness at the highest level followed by close proximity between the two countries.

He said that politically and economically, ties between Pakistan and Sri Lanka are sound and are growing from strength to strength.

He told the Daily Times that the signing of the Free Trade Agreement in 2002 and its implementation in 2005 were significant milestones in bilateral relations. news.

Sri Lanka News | Online edition of Daily News - Lakehouse Newspapers

 

[Abu Zolfiqar]

ISLAMABAD: China and Pakistan signed around 20 billion dollars’ worth of deals Friday, boosting trade and investment as Wen Jiabao became the first Chinese premier in five years to visit the nuclear-armed state.

Pakistan considers China its closest foreign ally and treated Wen and a massive business delegation to a red-carpet welcome.

The two countries signed 13 agreements and a memorandum of understanding in fields including energy, rail transport, reconstruction, agriculture and culture, Information Minister Qamar Zaman Kaira told reporters.

“China will provide assistance in 36 projects in Pakistan to be completed in five years,” he said. “Basically this is a five-year development plan.”

He said 14 billion dollars will come through a joint economic cooperation group, five billion dollars in other business agreements, while deals worth another 10 billion dollars are expected to be concluded at a business leaders’ meeting on Saturday.

“Overall the Chinese investment is expected to be around 30 billion dollars,” he said.

The deals are vitally important to the Pakistani economy.

Wen’s visit was accompanied by blanket security as Shia Muslims marked their holiest day, Ashura, which was last year marred by a bomb at a Karachi religious procession that killed 43 people.

“We have unprecedented relations with China. The whole nation is proud of the Pakistan-China friendship,” Prime Minister Yousuf Raza Gilani told PTV.

The Chinese premier held talks with Gilani after being greeted at the airport by Pakistan’s entire cabinet and military chiefs, who depend on Chinese hardware, and a guard of honour with a 21-gun salute.

Pakistan says China has already agreed to development projects worth 13.2 billion dollars in energy, agriculture, infrastructure and health, and wants trade to climb from seven billion to 18 billion dollars in five years.

“Work on projects worth 14 billion dollars is continuing at present, while projects of another 20 billion dollars will be signed between the two sides during the visit,” a Pakistani government official told AFP earlier.

Wen will also meet President Asif Ali Zardari, address a joint session of the Pakistani parliament, attend a business cooperation summit during his visit and inaugurate a new Chinese cultural centre in Islamabad.

Behind the scenes, talks are also believed to be planned on China building a one-gigawatt nuclear power plant as part of Pakistani plans to produce 8,000 megawatts of electricity by 2025 and overcome acute energy shortages.

The West has expressed concern about the security of Pakistan’s nuclear material, but China has built a 300-megawatt nuclear power reactor at Chashma in central Punjab province and another of the same capacity is under way.

Without going into details, officials in Pakistan admit the country has a civil nuclear cooperation agreement with China, a counter-weight to India’s agreement with the United States on nuclear energy cooperation.

Pakistan depends on China’s financial and political clout to offset the perceived threat from rival India and rescue its economy from the doldrums of catastrophic flooding, a severe energy crisis and poor foreign investment.

China will open branches of the Industrial and Commercial Bank of China (ICBC), its top private bank, in Karachi and Islamabad, Kaira said.

Pakistan’s prime minister has expressed hope that trade will rise to between 15 and 18 billion dollars over the next five years.

China, Pakistan sign $20bn deals: minister | Business | DAWN.COM

 

[great]

awesome..congrats Pakistan

 

[RoYaL~GuJJaR]

Congrats again to pakistan and its people..!

 

[salman77]

Pakistan starts onion exports to India

Truckloads of onions arrived on Monday in Chandigarh from Lahore through the Attari-Wagha land route amid soaring prices of the commodity in Pakistan.

As many as 13 truckloads carrying 5 to 15 tons of onion each have arrived from Pakistan, a senior official of the Customs department in Amritsar told the Press Trust of India (PTI).

About five importers have brought in onion from Lahore for supply in the markets of Ludhiana, Amritsar, Jalandhar in Punjab and Delhi, the official said. The landed cost of onion stood at Rs18-20 per kg, he said, adding this included customs duty, cess, transportation and handling charges.

According to importers, it was for the first time this year onions are being imported from Pakistan. Rajdeep Uppal, the MD of an Amritsar trading company Narain Exim, said that his company had imported 100 tons of onion at a rate of $400 per ton. He said he would import a further 500 tons in coming days from Sindh.

Pakistan starts onion exports to India – The Express Tribune