Pakistan's Economy - News and Updates

[Omar1984]

Marble, granite vital to KP economic stability: Hoti ​

PESHAWAR: Chief Minister Khyber Pakhtunkhwa, Ameer Haider Khan Hoti has said vast resources of marble and granite was vital to economic stability of the province.

The government was giving priority to development and mining of these resources on scientific lines and taking practical steps in this regard, he added.

Chairing a briefing regarding these sectors in Khyber Pakhtunkhwa he agreed the suggestions and constituted a committee comprising secretary industries, secretary P&D and chairman PASDEC for finalising matters regarding machinery, funds and land. The committee was directed to come up with workable recommendations after reviewing all matters and needs, in order to include in next annual developmental program.

He stressed support to private sector for development of this sector. The meeting was informed that 4 billion tonnes marble and granite were available in Chitral, Swat, Buner, Mardan, Nowshera, Dir, Kohistan and Mansehra District.

Chairman Pakistan Stone Development Company (PASDEC) Ihsanullah Khan said several measures were taken for the development of mining of marble and granite on scientific lines besides provision of funds, machinery, land and other needs.

The objectives of PASDEC include, development and mining of marble and granite resources on scientific lines mechanised quarrying of marble and granite in partnership with private mines owners, establishment of machinery pool for mechanised quarrying of marble and granite, training of locals in quarrying of marble and granite as part of human resource development and establishment of marble city and mosaic centers.

While establishment of marble in Chitral and Buner, up gradation of marble quarry in Buner, provision of machinery on rental basis to local mines owners in Buner and mosaic training of three months to female in Peshawar and Chitral are included in activities under the corporation. app

 

[Omar1984]

Chinese firm offers business support to Pakistani telecom provider ​

China's leading telecommunications solution provider Huawei has announced that its latest business support platform is being adopted by Ufone, one of Pakistan's major mobile operators.

According to a press release issued on Tuesday, Huawei and Ufone declared the deal on the Next Generation Business Support System (NGBSS) at a recent forum in Dubai. The two companies started their cooperation in Pakistan six years ago.

"Currently Pakistan has the world's 10th largest telecom market. But the competition is very tough, since there are many operator players in the market," said Ali Ikram, Ufone's General Marketing Manager.

Ikram said the telecom operator needs the state-of-the-art technology to expand its business and Ufone has achieved the highest revenue increase in the market due to leading marketing tactic supported by Huawei.

"The new system helps Ufone integrate with third parties more easily and widely, which expands our business and aligns with our strategy," he said.

Huawei's new OCS system, part of Huawei NGBSS solution, is a renewed business transition charging platform sitting at the heart of Ufone's strategy needed to respond to the changing market and the competition from more personalized marketing.

Pakistan's premier mobile operators include Mobilink, a unit of Egypt's Orascom Telecom, Norway's Telenor, Ufone, a subsidiary of Pakistan Telecommunication Co. Ltd, Warid Telecom Pakistan, a joint venture between Abu Dhabi Group and SingTel Group from Singapore, and Zong (CMPak) of China Mobile.

Source: Xinhua

 

[RabzonKhan]

Foreign investment stands at $1.31b in nine months

By Ghazanfar Ali
Published: April 15, 2011

KARACHI:
Foreign investment in the country stood at $1.32 billion in the first nine months of the current fiscal year 2010-11, remaining almost the same as in the same period the previous year when foreign investors injected $1.321 billion, shows data released by the State Bank of Pakistan (SBP) on Thursday.

However, of the total $1.32 billion, the share of foreign direct investment fell by 28 per cent to $1.08 billion in July-March 2010-11 compared with $1.5 billion in the corresponding period last year. On the contrary, portfolio investment surged 229 per cent to $235 million compared with an outflow of $183 million last year.

According to analysts, the country needs much more than a meagre investment of $1.3 billion to help support industries and accelerate economic growth. To increase investment in the country the government needs to improve law and order and security conditions and provide incentives to investors, they added. Difficult conditions in the global economy, particularly in the United States and European Union, and political conflict in the Middle East and North Africa region have also blocked the flow of investment to the country.

“Political instability, security problems and governance issues have served as a deterrent to the flow of foreign investment into the country,” said Hamad Aslam, Group Head of Equity Research at BMA Capital. Improvement in law and order conditions, tax breaks and streamlined regulatory procedures could be an encouragement for foreign investors.

Discussing the increase in portfolio investment, Aslam said investors were focusing on emerging markets which offered lucrative returns on investment compared to developed markets. “In Pakistan, foreign investors are investing in shares of good performing big companies which give handsome dividends and bonus shares,” he said.

In foreign direct investment, the oil and gas exploration sector attracted the biggest amount of $396 million in the July-March period, but it was 24 per cent lower than $520 million invested in the same period last year. Other big areas which attracted somewhat better investment were financial business and power, which received $126 million and $100 million, respectively, against the previous year’s $119 million and $19 million, respectively.

Aslam said that Hungary’s oil exploration company MOL was investing consistently and heavily in exploration and production activities in the Tal block and that was reflected in the oil and gas sector’s performance in terms of investment.

In case of investment in the financial sector, he said Singaporean investment house Tamasek Holdings has invested in NIB Bank while United Arab Emirates’ Suroor Investments has injected money in acquiring Pakistani banks.

Among different countries, the largest investment came from the US which invested $387 million, but it was 44 per cent lower compared with the last year. UAE increased investment by 42 per cent to $196 million while UK investment fell 17 per cent to $188 million. Investment by European Union states fell 67 per cent to $186 million.

 

[Abu Zolfiqar]

the FDI figure is quite sad........representative of how much the govt. has failed in every imaginable aspect. Who the f*ck wants to invest in a country where returns arent guaranteed --because of graft, because of political uncertainty, because of load-shedding, because of criminal negligence of the state govts. and of course with the recession clouds which only recently began to subside.













































the people in charge of the Pakistani Nation are not fit to run brothel, let alone a country

 

[VCheng]

Abu Zulfiqar: Please remember that "Cream rises to the top" but also that "Only scum rises to the top of a dirty pond", and Pakistani rulers are as dirty as scumbags as they come.

 

[Abu Zolfiqar]

scum has feelings too....dont degrade even scum

 

[VCheng]

LOL! I was trying to be kind to Pakistani politicians!

 

[Omar1984]

Textile exports to cross $11bn mark: Baig​

KARACHI: Federal Adviser on Textile Dr Mirza Ikhtiar Baig has inaugurated the 8th Textile Asia International Garment and Machinery Exhibition 2011 on Saturday at Karachi Expo Centre. Speaking on the occasion, he said that textile exports will cross $11 billion mark as the country’s total exports are set touch $22 billion during the current fiscal year 2010-11. TDAP Chief Executive Tariq Iqbal Puri was also present on the occasion. He said that floods have also brought fertile land with them and the country is going to reap 14-15 billion bales this year. app

 

[Omar1984]

Clothing, Fabrics and Textile Asia 2012 launched​

KARACHI: Clothing, Fabrics and Textile Asia 2012 has been launched at the inauguration ceremony of 8th Textile Asia Int’l Exhibition by Dr Mirza Ikhtiar Baig, Federal Advisor on Textiles and Tariq Iqbal Puri, CE TDAP.

The industry’s boosting feedback and a high level of interest from manufacturers & exporters gave way to a bright opportunity for the origination of an event focused on extensive and latest selection of fabrics and materials of textile industry.

Textile Asia is renowned worldwide for the display of textile & garment machinery brands but till date no such exhibition of clothing, fabrics & textile products under one roof was witnessed and now Ecommerce Gateway has successfully flashed such an event on the frontline state. The chief guest termed the launch of Clothing, Fabrics & Textile Asia (CFT 2012) as a first step towards filling this void and providing numerous opportunities for Pakistani manufacturers and global buyers of these products.

Dr Khursheed Nizam, President of Ecommerce Gateway said; “We are excited about the potential for this show in Pakistan which will expand our presence in the clothing, fabrics & textile sourcing marketplace. Ecommerce Gateway is Pakistan’s leader in Textile & Garment Machinery Show, and also stands pioneer in providing this opportunity to our manufacturers & exporters which will directly contribute into increasing foreign exchange of the country and result in accelerating the economy of Pakistan.”

The exhibition will bring together yarn, fabric, trims and clothing manufacturers, retailers and designers by providing a pure business platform with a wide range of high creativity fabrics with an excellent price and quality relationship. The Event will host more than 300 local and foreign exhibitors from various countries including Pakistan, Turkey, China, Malaysia, Italy, Germany, Russia, Belgium, India, Japan and many others.

Clothing, Fabrics & Textile Asia aims to be the only event in Pakistan focused solely on sourcing for Textile, Garments, Furnishings, Accessories, Gifts & Household Products and materials. The Event will provide manufacturers, retailers, converters, contract specifiers and designers, a one stop-sourcing venue where they can locate new products as well as materials and fabrics for their latest collections. The event is ultimately eradicating the role of the intermediary; thus serves in bridging and connecting the manufacturers & exporters directly with buyers from all around the world.

The first Clothing, Fabrics & Textile Asia will be held on 7-9 April 2012 at Karachi Expo Centre, Pakistan. The Event will continue annually, and would strive diligently to create a larger sourcing destination for the marketplace.

 

[Omar1984]

Gems, jewellery exports jump to $649 million​

ISLAMABAD: The gems and jewellery sector has achieved significant milestones during last three years as its exports jumped from $289 million in 2008-09 to $649 million in 2009-10.

“Since the government has patronised the gems and jewellery sector with the objective of enhancing foreign exchange revenues from exports, we have seen major jump from $289 million in 2008-09 to $649 million in 2009-10,” an official of Pakistan Gems and Jewellery Development Company (PGJDC) said.

The official said that over the last three years the company had successfully launched projects for training in manufacturing of gems and jewellery and gem labs in six different cities of the country including Karachi, Lahore, Quetta, Peshawar and Gilgit to enhance the value chain productivity from mine to market.

“These projects have started contributing to the development of the industry at a very significant level providing a lucrative platform to the sector to develop their trade locally and internationally,” the official added.

The company has so far successfully trained over 4,100 persons in various segments of the industry. The trainings that the company has conducted, include Manual Jewellery Designing, Computer Aided Jewellery Designing (on Matrix with CAD/CAM technology), Gemstone Identification, Gemstone Faceting, Gemstone Carving, Colored Gemstone Grading, Diamond Grading.

The company has also launched a one-year Diploma on Intensive Jewellery Designing in Karachi, he added.

PGJDC has been regularly participating in different international gems and jewellery exhibition held in various parts of world including Bangkok, Hong Kong, Dubai, USA and Germany.

The company has also organised 21 Gems Bazaars across the country including a mega Gem Bazaar in Islamabad in January this year.

In future the PGJDC has a plan to establish mobile training centres, diamond cutting and faceting set-up in the country, mega gems bazaars to attract international buyers and introduction of Assaying and Hallmarking in the country to assure best quality exports of the sector to build consumer confidence, the official concluded. app

 

[Omar1984]

Surgical sector presents $1bn export target package​

ISLAMABAD: The surgical instrument industry has submitted a package of recommendations to Engineering Development Board (EDB) for achieving $1 billion export mark by 2014.

Representatives of the Surgical Instrument Manufacturers Association of Pakistan (SIMAP) highlighted the adverse affects of the ILO campaign against child labour in this industry.

During a day workshop jointly organised by EDB and SIMAP, they were unanimous in voicing the government should find some solution to it as they were facing active shortage of skilled labour.

The main emphasis is to control the menace of cutthroat price competition between the local manufacturers and the remedy suggested is to fix minimum export price of all the products.

The government has already made a beginning by fixing minimum export price of basic items. However, the stakeholders want to expand this system in near future. The current export of surgical instrument is $250 million and experts believe that it can touch $1 billion mark within 2 to 3 years. The industry provides employment to more than one hundred and fifty thousands skilled labour force and is the top earner of foreign exchange amongst all sectors in the domestic engineering industry. Former Senator Rukhsana Zubairi Chairperson Pakistan Engineering Council advised the industry to change as the whole world was changing by adopting modern production methods. Better wages to the workers would improve their productivity, which would ultimately increase their profit, Senator added. staff report

 

[Raza88]

Pakistan’s exports are putting the nation’s food security at risk

While the country is going through its biggest financial crises led by cost push inflation our business indices reflect that the country is doing better than last years in all its sectors.
Production is up in all major industries, bumper crops and we have excess piles of carry-forward stocks of sugar, rice and wheat. In fact, Pakistan being a net importer of wheat is now exporting wheat.
How can this be when one after the other the country faces multiple crises and acute shortages of sugar, wheat, electricity, gas, petroleum and so on with interest rates touching 17%, and to top it all the number of people forced to live below the poverty line increasing from 25% to 40%?
Our government tells us this is due to the price hike in most essential commodities in the world.
While I tend to agree that prices for imported items will increase due to this factor and its related consequences- but what is happening to our surplus production? The local demand for all the basic food items has dropped due to exorbitant prices in the market along with the reduction in the purchasing power of the common man.
The only reason is that while our countrymen are facing near starvation all excess production is being exported to other countries which may have oil but no food. Prime cases here being Afghanistan and the Middle East who are our biggest consumers.
In order to bring down prices in the country, Pakistan should, with immediate effect, put a ban on export of all basic food items including wheat, rice, sugar, poultry, meat, fish and all vegetable and fruits with a clear warning to all belonging to the production and manufacturing sectors that the ban will remain until the food prices of all these items are brought at a level where the average Pakistani can afford to feed a minimum family of five. As soon as the ban comes into place we will see an immediate reduction in the prices of all consumer based products.
While this may result in a temporary loss of exports of about US1 billion a year it will immediately benefit 160 million people. At the end of the day, the choices we make and the decisions we take are up to us. What is more important — $1 billion or 160 million Pakistanis?
Imposing a ban will immediately release the pressure on the average Pakistani who will be able to feed his family. Meanwhile, the government can concentrate on creating a long term price mechanism apparatus and devise ways of enforcing this apparatus to ensure that the prices do not go out of control in the future.
In Europe, while the basis costs of raw material and petroleum etc is dependent on the international market rate and subject to fluctuations, manufacturers are allowed a maximum of three per cent price increase per year in their costs to cater to inflation and currency fluctuations. However, this is not the case in Pakistan. The government should warn its local producers of fertilisers, pesticides and seed banks that they cannot increase the prices of their material by more than 5-7 per cent per year.
All that is happening now is the big local and multinational companies dictate their prices and at times have imposed increases of up to 100-300 per cent per year without any authority to monitor them. This is bringing in huge profits to their shareholders at the cost of our nation. When has one ever heard of multinationals lose money?

Pakistan

 

[ajpirzada]

Surgical sector presents $1bn export target package​

ISLAMABAD: The surgical instrument industry has submitted a package of recommendations to Engineering Development Board (EDB) for achieving $1 billion export mark by 2014.

Representatives of the Surgical Instrument Manufacturers Association of Pakistan (SIMAP) highlighted the adverse affects of the ILO campaign against child labour in this industry.

During a day workshop jointly organised by EDB and SIMAP, they were unanimous in voicing the government should find some solution to it as they were facing active shortage of skilled labour.

The main emphasis is to control the menace of cutthroat price competition between the local manufacturers and the remedy suggested is to fix minimum export price of all the products.

The government has already made a beginning by fixing minimum export price of basic items. However, the stakeholders want to expand this system in near future. The current export of surgical instrument is $250 million and experts believe that it can touch $1 billion mark within 2 to 3 years. The industry provides employment to more than one hundred and fifty thousands skilled labour force and is the top earner of foreign exchange amongst all sectors in the domestic engineering industry. Former Senator Rukhsana Zubairi Chairperson Pakistan Engineering Council advised the industry to change as the whole world was changing by adopting modern production methods. Better wages to the workers would improve their productivity, which would ultimately increase their profit, Senator added. staff report

how is competition a bad thing? fierce competition is always gud for any industry. it will force the domestic firms to stay on their toes and keep looking for new ways which could make them more efficient.

 

[bc040400065]

Current account shows $99m surplus


KARACHI: The Current account was surplus at the end of the third quarter of the current fiscal year, strengthening further the economy on the external front.
The biggest reason for this surplus was the current transfers mainly dominated by overseas Pakistani workers` remittances.

Current account shows $99m surplus | Newspaper | DAWN.COM

 

[Omar1984]

Leather export ​

Pak share to US market 0.21 percent only

LAHORE: US total imports are worth $1.6 trillion per annum out of which it imports various products worth $3.36 billion from its war on terror ally Pakistan and this share is only 0.21 percent of the America’s leather imports.

This was told to Robert Hawkins, Economic Officer Lahore Consulate during his visit to the office of Pakistan Tanners Association here on Tuesday. PTA chairman Khurshid Alam Chairman PTA Members of Central and Zonal Executive Committees and prominent members of PTA were also present on the occasion.

Mr Hawkins said that he feels that the ongoing meeting was a great opportunity for him to know more about the second largest exporting industry of Pakistan. He thanked PTA for giving him a chance to make a note of significant problems and issues of exporting community of Pakistan. He promised that he would take these issues to his government for its consideration and he expects that very soon his office would be able to address these issues.

Earlier in his presentation, PTA Chairman presented the current status of Leather Industry of Pakistan stating that a total 800 tanneries are in Pakistan that contributes 5 percent in manufacturing GDP and 6 percent of export earnings besides employing 500,000 peoples. He shared during the meeting with the economic officer that the trade volume between Pakistan and United States of America in leather business was insignificant as per figures.

US and Pakistan are struggling to win war against terror, which is greatly affecting the business especially the export business. Mr. Khurshid registered the protest against drone attacks on behalf of the second largest exporting industry of Pakistan. He said that these attacks are earning bad name for US and creating wide spread hatred amongst the community against USA. He maintained that victory can only be achieved through trade and creating employment opportunities.

Mr. Khurshid suggested that if US really wants to avert terrorism from the region, it should invest in Power, public transport, railways and mega projects for infrastructure development thus creating employment opportunities in Pakistan. He said that there is no debate on the statement that US has strong influence on Pakistani government which can be effective to deliver the impacts of US financial assistance to the deprived community. He invited attention of US economic officer on Travel Advisory issued by US Foreign Mission/Embassy for its citizens to travel to Pakistan and Visa Restrictions for Pakistani businessmen and visitors to visit US. He said that when buyer and seller could not see each other, how the bilateral trade would flourish. He enlightened the US Economic officer with the following recommendations: War against terrorism has damaged Pakistan’s face. Worldwide image of Pakistan is just like a country where war is on and a state, which is deprived of its basic infrastructure and facilities. Khurshid strongly urged the US Government to help Pakistan improve image as a viable place for investment to improve economy with its indigenous raw materials and hard working labour force. He also urged to the visiting Economic Officer to arrange talks for investment and promotion of trade with the business community and chambers. staff report