Pakistan's Economy - News and Updates

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Sri Lankan C-G encourages stronger ties to fully exploit FTA

Consul General of Sri Lanka, D. W. Jinadasa has emphasised the need to work hand in hand with the business community to exploited full potential of Free Trade Agreement (FTA). Leading a Sri Lankan trade delegation during a meeting of Karachi Chamber of Commerce and Industry (KCCI) on Monday, he invited Pakistani businessmen to explore existing trade and investment opportunities in Sri Lanka.

D.W. Jinadasa said that Pakistan- Sri Lanka trade has more than doubled in the last few years to 400 million dollars and added that the potential exists to take it much higher. He said there were lots of commodities that could be traded between the two countries.

Replying to a question about the investment policy, the Consul General stated that Sri Lanka was one of the first countries to have liberalised its economy and the investment policy went very much in the laissez-faire way: "The whole country has been declared a free zone, you can have 100 percent ownership whatever the area and there is no restriction on repatriating the profits".

He pointed out that a large number of Pakistan industrialists visit the consulate every day to inquire about investment policy and existing opportunities of trade and investment. The Consul General pointing out that Sri Lanka was a growing market with great potential and invited Pakistani businessmen to explore the opportunities presented by Sri Lanka.

D. W. Jinadasa said that at present India is the largest trading partner of Sir Lanka and has made a 4 billion dollars investment in various sectors. A special area for Indian Pharmaceutical industry has been allocated in Sir Lanka, he added. He said that Pakistan is very close to Sri Lanka and added that business community must explore ways on how to enhance export and investment in each other country.

He said Pakistan and Sri Lanka were friendly countries from the day they came into being. And that efforts are been made at all levels to facilitate travel, increase number of flights and have at least one flight per day between the two countries. Referring to law and order, he said the perception about Pakistan is not very clear in the minds of Sri Lankan business community.

He said the ground reality is very difference from what is projected in the media. President, KCCI, Mohammad Haroon Agar said that the chamber would like to form a joint Chamber with its Sri Lankan counterpart. Over the years, KCCI has signed more than 100 MoUs with various Chambers of the world. KCCI has also formed Pak Afghan Joint Chamber and Bombay-Karachi Chamber to promote regional trade.

Sri Lanka and Pakistan both have good, friendly, economic and trade relations. Both Pakistan and Sri Lanka have been making efforts to further increase the two way trade among the two countries because full trade potential of Pakistan and Sri Lanka needs to be further explored. He noted that Sri Lanka-Pakistan FTA , was signed in 2005. According to the FTA, both countries have given free access to each other on various trading commodities.

He expressed his belief that Pak-Sri Lanka trade potential must be increased with effective utilisation of FTA between both countries. To further explore the bilateral trade prospects; he expressed the need for frequent exchange of trade information, delegations and organising of exhibitions. A large number of KCCI members are engaged in trading activities with their Sri Lankan counterparts.

Sri Lankan C-G encourages stronger ties to fully exploit FTA | Business Recorder

 

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Boosting trade, investment: five-year visa facility for Brazilian businessmen proposed

Ministry of Interior is in a process to finalise modalities for granting five-year multiple entry visa to the members of Brazilian business community in a bid to boost Pak-Brazil trade and attract investment in Pakistan. This was stated by Director General, Ministry of Foreign Affairs, Dr Sohail Ahmed Khan on Wednesday in a conference on Pak-Brazil relations.

The conference was jointly organised by the Embassy of Brazil and Islamabad Policy Research Institute. Nawabzada Malik Amad Khan, Minister of State for Foreign Affairs was the chief guest. To a question, Dr Sohail replied that Ministry of Foreign Affairs agreed with the proposal of granting five-year visa to business community of Brazil and summary was moved to Ministry of Interior to formulate modalities in this connection. The proposal of longer stay of Brazilian businessmen in Pakistan was moved by Government of Brazil three years back. Government of Brazil had repeatedly written to Ministry of Foreign Affairs of Pakistan that Pakistan business community can enjoy five-year multiple visa for Brazil on reciprocal basis.

The DG confidently assured that soon Brazilian business community would enjoy longer stay in Pakistan. Both countries would soon move letters of exchange to give the proposal an official shape, he added. Dr Sohail also emphasised institutionalised co-operation. He mentioned the co-operation in the field of defence supplies particularly for Pakistan Air force and Navy.

Ambassador of Brazil in Pakistan, Alfredo Leoni, who has played a proactive role in development of economic, trade and cultural relations between his country and Pakistan said that nine bilateral agreements had been signed between the two countries and a number of others are being negotiated that cover political, economic, cultural, scientific and technological endeavours, as well as defence.

He also announced that a high-level delegation of Brazilian experts would land in Islamabad on four-day visit and share Brazilian expertise in food security. He specially mentioned the newly opened education project under which placements were being offered to Pakistani students to study in top class universities of Brazil. The conference on Pak-Brazil relations focused on development of soft power, sustained macro-economic stability and conflict-free environment as key to progress in the contemporary world. Pakistan had lessons to learn from Brazil in this respect which has pursued this course during the last two decades and has emerged as the leading nation of South America.

Eminent industrialist Dr Kamal Monnoo, in his speech mentioned a 2008 report of the Commission on Growth and Development which identified five main characteristics of high growth countries: (1), engagement with global economy, importing technology and knowledge and exporting goods to the global market; (2), stable and predictable macroeconomic policies; (3), high saving and investment rates; (4), a well managed market system that provided proper price signals and relatively clear property rights; and (5), strong political foundations.

He said Brazil had shown what a country could do and Pakistan need to learn from its economic soft model. In his detailed presentation on trade and investment co-operation between Brazil and Pakistan, Jamil Ahmad, Chairman Faisalabad Chamber of Commerce trade delegation, recommended ethanol production, renewable energy, hybrid seed production, bio fuels, flex fuel technology for co-operation between the two countries.

Dr Maqsudul Hassan Nuri, Acting President IPRI, in his remarks emphasised the use of soft power and pursuit of peaceful diplomacy as the force behind great strides Brazil had made in the last two decades. He called for co-operation in research through closer ties between think tanks of the two countries.

Boosting trade, investment: five-year visa facility for Brazilian businessmen proposed | Business Recorder

 

[A.Rafay]

Hafeez Sheikh offers Japanese companies to invest in energy sector

TOKYO - Finance Minister Dr Abdul Hafeez Sheikh has said that Pakistan’s liberal investment policies and growth potential offers tremendous strategic opportunities for Japanese investors in different sectors of economy.
Speaking at a MIGA lunch hosted in his honor where more than thirty representatives of the top Japanese companies participated the Finance Minister said that MIGA (Multilateral Investment Guarantee Agency) is an important component of World Bank Group, promoting investment and prosperity.
“We enjoy good political, economic and cultural relationship with Japan, both the countries are collaborating in many projects from textile to mining”, the Minister said.
He paid tributes to the Japanese people and government for introducing latest technology and management skills to Pakistan.
Dr. Abdul Hafeez Shaikh said that Pakistan is undergoing a transition, “now we have a democratic government which for the first time in the history of Pakistan is going to complete its full tenure and we are going next year in an election phase, this is a good omen for development and prosperity for the people of Pakistan”, he added.
He said that all the institutions in Pakistan are working freely in their respective spheres. Judiciary is performing independently media is free and vibrant, there are about 88 TV channels openly criticizing the government policies. All the actions of the government are exposed for close scrutiny of the media. It shows the strength of Pakistani society.
Highlighting the economic situation of Pakistan, the Minister said that measures are being taken to bring macroeconomic stability in the country hence we tried to remain fiscally austere. He said that despite various constraints, the government is trying to mobilize the resources. In the last two years the government has doubled the tax collection. This year the growth rate is expected to be around 4% and we have succeeded in bringing the inflation to a single digit, the Minister added.
Dr. Abdul Hafeez Shaikh said that the government has adopted an open door Investment Policy where all investors are welcomed. He said that Pakistan’s political leadership including the President, Prime Minister and the Ministers are all available to the investors for all the time.
Answering to the questions of the participants the Minister said that relations with India are improving. Both the countries adopted opening up economic policies. Pakistan has granted India the MFN status, the positive list has been abolished and now we have open visa policy for businessmen from both the countries. Joint ventures like electricity from East-Punjab to West-Punjab are also under consideration to be launched very soon.
He said that Pakistan offers a good opportunity for investment to the Japanese entrepreneurs in Coal, Solar and Wind energy projects. He also offered special economic zone to Japanese Investors in Pakistan. The MIGA-event also included exhibitions of Pakistan carpets, Pakistani honey, rock salt and food products.
Earlier Izumi Kobayashi CEO and Executive Vice President of World Bank Group MIGA welcoming the Finance Minister Dr. Abdul Hafeez Shaikh said that our mission is to promote foreign direct investment in to developing countries to help support economic growth, reduce poverty and improve people’s lives. In Pakistan we strongly focus on to create jobs and reduce poverty. We are coordinating hydropower projects in Pakistan to address its energy needs.
Federal Minister for Finance Dr. Abdul Hafeez Shaikh also participated in G-24 Ministers meeting. The implications of the development in the global economy IMF quota reforms and infrastructure finance and development were thread barely discussed.
The Minister also held a meeting with Masood Ahmed, Director MCD, Daniela Gressani, Reviewer, IMF and Isabel Guerrero, Vice President, South Asian Region, World Bank and discussed the issues pertaining to Pakistan’s economy.

Hafeez Sheikh offers Japanese companies to invest in energy sector | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

 

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PM for preferential trade agreement to boost Pak-Bosnia ties

ISLAMABAD: Prime Minister Raja Pervez Ashraf on Wednesday said that Pakistan and Bosnia-Herzegovina needed to work on a preferential trade agreement so that economic relations between the two countries could be based on sound footings.

Speaking at a luncheon hosted in honour of the President of Bosnia and Herzegovina Bakir Izetbegović at Prime Minister House, the prime minister welcomed the proposal of the Chairman of Presidency of Bosnia Herzegovina to focus on specific projects so that both the countries could make tangible progress.

He said that Pakistan, being an agricultural country and having a large agro-based industry, could extend cooperation in this field.

Reiterating Pakistan’s commitment to the unity and territorial integrity of Bosnia and support for its quest for membership of the European Union and Nato, the prime minister appreciated the Bosnian support in multilateral forums, including Pakistan’s candidature for the UN Security Council’s non-permanent seat.

The prime minister also proposed exchange of technical experts between the two countries and cooperation in the field of science and technology.

Prime Minister Ashraf said that the Bosnian president’s visit would pave the way for more cooperation between the two countries. He also said that the people and government of Pakistan had great respect for his father Alija Izetbegović.

Speaking on the occasion, the Bosnian president said that there was now stability in Bosnia Herzegovina and they were making efforts to attract investment and improve economy.

He said that Bosnia-Herzegovina was also looking forward to joining the EU, which would provide Pakistan a window to Europe and its markets.

http://dawn.com/2012/10/11/pm-for-preferential-trade-agreement-to-boost-pak-bosnia-ties/

 

[fatman17]

Pakistan’s security business booms



By Farhan Bokhari in Karachi

©AFPA guard from a private security company practises at a shooting range in Karachi


Pakistan’s decade-long campaign against al-Qaeda and the Taliban may have made the country’s urban areas calmer, as armed assaults and suicide attacks have tapered off.

But, as the shooting of a 14-year-old schoolgirl in the Swat Valley region showed this week, lawlessness remains a big problem – and one that is increasing demand for one type of business: providers of private security guards.

Armed robberies and extortion in cities such as Karachi, Pakistan’s commercial capital, have prompted the country’s elite to turn to private companies offering security guards for protection of their homes and businesses.

The lawlessness has been fuelled by a steady flow of weapons and drugs from neighbouring Afghanistan to poverty-stricken Pakistanis. Though the government doesn’t publicly reveal the number of people living in poverty in Karachi, which has a population of about 19m, one senior Karachi police officer told the Financial Times, “between 30 to 40 per cent of Karachi’s people live in slum-like conditions”.

As demand for security companies has grown, many have been criticised for the quality of service they provide. Worse still, some private security guards are suspected of taking part in “inside jobs” – providing information to potential criminals in exchange for a share of the spoils.

The FT was taken to witness a police interview of a private security guard who was picked up by Karachi officers in August, after an armed robbery at a home which he was being paid to protect.

“This man was on duty, armed with a weapon and wearing a uniform,” the investigating police officer said. “He says the burglars overpowered him, tied his hands behind his back and locked him in a toilet. There are big gaps in his story. There isn’t even a scratch on his body let alone a wound,” he added, stressing the suspicion the guard may have been an accomplice in the robbery.

The interior ministry has not publicly revealed the number of security companies operating in Pakistan. One senior interior ministry official in Islamabad told the FT there were around 350 companies, employing about 300,000 guards. But none are listed on the Pakistani stock market, which means they are under no obligation to report their earnings.

Critics say the failure of successive governments to enforce tight regulatory controls has meant that many companies offer services that are below globally accepted standards.

“I know of instances where there are guards who work as cooks or gardeners in the homes of people during the day, then put on a uniform and take a gun to turn up on duty for the night as security guards,” says Haroon Rashid, a former president of the Karachi chamber of commerce and industry (KCCI). “There is practically no regulation ensuring a high standard of service by the companies which provide these guards.”

Western diplomats warn that improving the standards of private security companies has become a bigger challenge since Pakistan decided in effect to ban foreign security companies from operating on its soil. The decision followed the arrest of Raymond Davis, a contractor for the US Central Intelligence Agency, who shot dead two armed men in January 2011. He was released in March 2011 following an agreement to pay compensation to the men’s families.

“No foreign security companies will be allowed in Pakistan,” says Rehman Malik, the interior minister. “In Pakistan, there is a lot of negativity and resentment against foreign nationals serving in the security sector.”

This policy means that following the exit from Pakistan in August of G4S – the company criticised for its failure to provide enough guards at the London Olympics – there are no immediate opportunities for other foreign security companies to step into the picture.

Still, businessmen offering security services through local companies say urban lawlessness continues to lift demand from high-income consumers looking for high-quality protection.

“Many customers want quality,” says Ikram Sehgal, chairman of Wackenhut Pakistan. “Even as a Pakistani company, we have to fulfil those expectations.” Wackenhut Pakistan has invested in a centralised control room in Karachi equipped with audio-visual connection to many of the premises that it guards – a contrast to smaller companies which are only in touch with guards through mobile phone connections.

But others, such as Mumtaz ur Rahim, chairman of Phoenix security – another of Pakistan’s large private security companies – says the absence of regulatory controls has meant “there are fly-by-night operations” which can operate with only modest budgets.

“If you are prepared to set up office in one small room and hire a small team of guards to offer to your clients, you will not have much in terms of overheads,” he adds.

More experienced customers will ask for background checks to be carried out on guards. In the 1980s, when private security companies began growing rapidly, many of the first comers typically recruited retired army soldiers. Companies were able to run elaborate background checks on army pensioners by examining their documented work history before recruiting them.

The relaxation of standards since the early pioneers entered the business is summed up by the police officer leading the burglary investigation in central Karachi. He says of his suspect: “This man has no history. He has lived in Karachi for just three months. I simply can’t tell if he is a hardened criminal who put on a uniform and became a private security guard.”

The Financial Times Limited 2012.

 

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Investment conference in Czech Republic

Islamabad—Chairman BOI, Saleem H. Mandviwalla attended an investment conference in the Czech Republic which proved very successful results regarding the business and investment between the two countries. Mr. Mandviwalla was given an extremely warm welcome and several successful meetings were held with Mr. Pavel Bem, Chairman Inter-parliamentary Friendship Group, Czech-Pak in the Parliament of Czech Repubic, H.E Mr. Martin Kuba, Minister of Industry and Trade, Mr. Jaroslav Hanak, President of the Confederation of Industry of the Czech Republic.

In these meetings the need to enhance the already existing cordial relations between the two countries was stressed upon. It was discussed that governmental support is crucial to bring the two countries closer in terms of investment, trade, cultural, tourism and all other potential areas.

Martin Kuba accepted the invitation of Chairman BOI to visit Pakistan to enhance the economic and business relations. Side by side with official meetings on governmental level, productive business meetings were also held with representatives from many potential companies like Vitkovice, Skoda, NANOPROGRES, DT-Pointworks and Engineering Works, EKOL, TechniStone, Wikov Wind and Wahaj Group. All these companies showed keen interest to establish business in Pakistan and Mr. Mandviwalla welcomed them all and ensured complete governmental support on the part of BOI in all respects.

Mandviwalla was also interviewed by the Czech media who gave complete media coverage to the visit of the MOS and termed it very successful in terms of enhancing economic relations between the two countries. The Financial Times, EURO (MF) being two important names of the media of Czech Republic. Moreover, Mr. Jiri Nestoval, President CSOK, Chairman of Energy Holding announced a visit to Pakistan with a cluster of Czech business community in Nov, 2012.

Investment conference in Czech Republic

 

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Japan to extend $93.48 million for five projects


Japan has decided to extend financial assistance of 93.48 million dollars to Pakistan for five projects including 65 million dollars loan assistance for polio eradication.

Documents available with this scribe show that the government of Japan has decided to extend additional grant of 10.9 million dollars for the project of 'Strengthening of DAE Mechanical and Architecture Department in GCT Railway Road, Government of Punjab, Lahore', dollars 0.62 million for 'Improvement of Audio Visual Equipment of the National Institute of Folk and Traditional Heritage', four million dollars for 'Purchase of Industrial Equipment (For Construction Technology Training Institute and Pakistan Institute of Medical Sciences, Islamabad); and grant assistance of 12.9 million dollars for the project of 'Up-gradation of Mechanical System Wasa Faisalabad'.

Documents reveal that the government of Pakistan is under negotiations with Japan for financial assistance for three major projects including Revival of Karachi Circular Railway, Interconnection of Thar Coal Based 1200 MW Engro Power Plant with NTDC System, and Makhi-Farash Link Canal (Chtiari Phase-II) including Feasibility Study.

According to the documents, Japanese Government has indicated an interest in financing the revival of Karachi Circular Railway (KCR) project as a modem commuter system. The project was approved by Ecnec on August 16, at a total cost of 2.498 billion dollars.

The project 'Interconnection of Thar Coal Based 1200 MW Engro Power Plant with NTDC System' was approved by Ecnec on August 16, at a total cost of Rs 22.04 billion with FEC 14,846.44 million. Economic Affairs Division (EAD) has shared a copy of PC-I with the Jica for review. The project 'Makhi-Farash Link Canal (Chtiari Phase-II) including Feasibility Study' was approved by Ecnec on August 16, at a total cost of Rs 27 billion. EAD requested Japan for financing the project on January 26, while response from Japanese side is awaited.

http://www.brecorder.com/business-a-economy/189/1247711/

 

[A.Rafay]

Sindh to invest Rs4b to utilise solar energy

KARACHI - The Sindh government has planned to invest over Rs4 billion to explore solar energy to overcome electricity crisis, officials told The Nation on Saturday.
Under the proposed projects, the Sindh government has prepared two uplift schemes to produce solar energy for houses/buildings as to install tube wells of irrigation to save agriculture land from water logging and salinity and the second schemes is to take water of Left Bank Outfall Drain (LBOD) in coastal area of Badin district after treating it to the Thar coalfield in Tharparkar through installing of tube wells.
This initiative has been taken on the directives of the President Asif Ali Zardari, who directed the provincial government to explore alternative energy sources as huge potential of solar and wind resources existed in the province.
The boring and installation of 250 tube-wells would be carried out in the development project, which has been made part of Annual Development Programme (ADP) of the current financial year-2012-13, for which a sum of Rs50 million allocated in the current fiscal.
The total estimated cost of around Rs2 billion (Rs1.9 billion) would be required for the completion of the scheme in next three four years, officials familiar to the development told The Nation.
A high level meeting, which was chaired by the chief secretary of the Sindh government, reviewed the status of the project. The meeting was informed that the same scheme was discussed in the PDWP under which installation of only 25 tube-wells at stage-1 as pilot project planned. On successful performance, the installation of remaining 225 tube-wells would be taken up in stage-2 of the scheme.
According to the official document, the objective of the scheme is to produce most economic and uninterrupted power supply through solar energy system on one hand and to save national exchequer of Rs3.22 million. Besides it will help to irrigate the land and reduce water logging and salinity in the areas and efficiently in comparison with the existing vertical drainage system on electricity.
In details of the project scope showed that the installation of 250 tube-wells on solar energy and ancillary work would be carried out with Rs1562.088 million, while a sum of Rs114.874 million would be spent on the construction of pump house discharging box/duty room of tube-wells.
However, another uplift scheme of installation of 250 tube-wells on solar energy for assured supply of 300 cusecs water for Thar coalfield from RD362 of LBOD spinal drain was also in process.
With total estimated cost of Rs1920.140 million, the proposed uplift scheme is a part of ADP 2012-13, while preparation of (Project Concept) PC-1 of this scheme, with involvement of multinationals on their role of social corporate responsibility, was also under process, officials said.
In the detail of proposed expenditures, the boring and installation of 250 tube-wells on solar energy with Rs1478.630 million, construction of pump house with Rs62 million and other earth work with Rs247.050 million are part of the project.
The objective of this scheme is to provide most economic and uninterrupted power supply through solar energy system and assured supply of water required for power plants at Thar coalfield. Developing of Thar coal energy resource would provide employment and infrastructure as well as boost the trend in the development of various technical resources, officials said.
Highlighting the importance of the project, they said availability of water is prime component for the development of Thar coal power generation besides the other infrastructure.
According to the officials of the alternative energy department, both the schemes are in study process, hoping that the scheme would be materialised from current year.

 

[Introvert]

Pakistan carpet industry to tap Chinese market

China would help Pakistani carpet industry to boost its competitiveness and tap Chinese carpet market.

A Chinese delegation, which is on a visit to Pakistan to explore joint venture opportunities for encouraging economic activities between the two nations, inked a Memorandum of Understanding (MoU) with the Pakistan Carpet Manufacturers and Exporters Association (PCMEA).

To enable Pakistan to tap the emerging handmade carpet market in China, the delegation has offered research and development assistance to the producers of handmade carpet in Pakistan.

China has led the way for globalization and localization that boosted global economic development, Huang Guojun, Director General of the Administrative Committee of Nanchuan Industrial Park, said while speaking at the MoU inking ceremony.

He said they would be delighted to help the Pakistani carpet industry with its upgradation, and thereby enabling it to tap the Chinese market.

After laying foundation for establishment of a business development centre in Pakistan, Mr. Guojun also launched an office of Nanchuan Industrial Park in Lahore, to extend research and development assistance to the Pakistani industry.

Speaking on the occasion, he urged Pakistani carpet producers to invest in the industrial park and also called on the PCMEA to participate in the world carpet expo slated to take place in Quinghai, China next year.

Anjum Bashir, Secretary, Pakistan Board of Investment, said though Pakistan is also in favour of enhancing mutual trade, still it necessitates some foreign direct investment (FDI) from China.

FDI worth around US$ 769 million have flown into Pakistan from mainland China over the past five years, and some US$ 11.7 million have flown in from Hong Kong. During last fiscal itself, around US$ 120.9 million and US$ 80.3 million came to Pakistan in FDI from China and Hong Kong, respectively, he said.
He added that the trade volume between the two countries is expected to rise to US$ 10 billion over the next two years. Last fiscal, trade between the two countries stood at US$ 5.704 billion.

 

[A.Rafay]

Khar for strengthening intra-regional economic cooperation among ECO states
BAKU (Azerbaijan), Oct 15 (APP): Foreign Minister Hina Rabbani Khar Monday stressed the need to strengthen intra-regional economic cooperation primarily in the important areas of commerce and trade, infrastructure connectivity and energy among the ECO member countries. Speaking to Council of Ministers meeting of the member states, ahead of the 12th ECO meeting, she emphasized that this was essential for the Organization to meet the hopes and aspirations of the people of the region. She emphasized the need to develop synergies between ECO specialized agencies and institutions including the ECO Development Bank in order to realize the full potential of the Organization. The Minister said that the ECO Trade Agreement and the Transit Transport Framework Agreement should be translated into effective vehicles for regional economic integration.

http://app.com.pk/en_/index.php?option=com_content&task=view&id=211763&Itemid=1

 

[A.Rafay]

Government expenditure not that high if depreciation kept in mind: Sheikh
TOKYO: At a time criticism of the current government’s economic performance is growing more strident and many are raising the spectre of default, Finance Minister Hafeez Sheikh in Japan to attend the annual meeting of the World Bank and the IMF. His objective is to persuade the two IFIs to take yet another chance on Pakistan. In an exclusive interview with The News, Sheikh talks about the challenges being faced by the government, the proposed tax measures, the IMF loan and international call charges.

Q. An increasing number of critics are questioning your team’s performance on the economic front…

A. Pakistan’s economy is growing at a rate of 4.7 percent as compared to the global economy, which is growing at the rate of 3.5 percent. This should be [enough to silence the] critics. Recent economic indicators of the country show positive results: the inflation rate has come down to single digits, which was 25 percent in the previous government’s tenure. Furthermore, the present government has collected Rs2 trillion in tax revenues, which was Rs1 trillion during the last government.

Moreover, while opposition parties criticise government expenditures, the growth rate of these expenditures has been under seven percent annually. This is not much, if we take into account the amount the rupee has depreciated by.

Q. What measures has the government taken to widen the tax net?

A. The government took a big decision [that is supposed] to bring at least one million people into the tax net. If required, the government can also make laws in the Parliament to implement the decision. If one million people come into the tax net, Pakistan can overcome its financial problems.

Q. What are the foremost challenges faced by the government at present?

A. The increasing cost of importing oil is a major challenge for the government. We are aware that an increase in oil prices leads to an increase in the cost of other utilities but the government depends on international prices, which are not under its control.

The other challenge is regional security. A good law and order situation attracts foreign investments and the government is working hard to maintain the law and order situation in the country. The [devastating impact of the] monsoon rains is also one of the major challenges being faced by the country.

Q. Is another IMF loan on the cards?

A. The government has not taken any loan from the IMF since May 2010 and even now, it has enough funds to repay the IMF loan.

Q. How have overseas Pakistanis shaped our economic prospects?

A. Overseas Pakistanis are the backbone of our economy and sent a record $13.5 billion in 2011 to Pakistan in remittances.

Q. Increasing charges on international calls have been met with criticism. What are your comments?

A. Increasing the tax on international calls was at the request of the Ministry of Information and Technology, which gets to keep all the income earned by the levy. Meanwhile, I have asked the Secretary of Finance Abdul Wajid Rana to give me a full report on the issue of the international call tax as well as the issue of used cars import duty, which has caused huge losses to overseas Pakistanis.

 

[Introvert]

Pak-UK trade reaches $2.3 billion mark

The United Kingdom's Investment and Trade officer Waqar-ullah has said that bilateral trade between Pakistan and United Kingdom is on a steady rise as it has reached to $2.3 billion. Pakistani companies and exporters should extend their trade ties with British investors and importers etc.

He was addressing a meeting of exporters and representatives of companies organised by the Multan Chamber of Commerce and Industry and chaired by its president Muhammad Khan Saddozai here today. He said that efforts and commitments of both governments were there to achieve the target of 2.5 billion Euros by 2015. According to him, the recent duty waiver from the European Union on 75 selected products from Pakistan would encourage British businesses to buy from Pakistan and it is hoped that Pakistan 2012 will provide a useful opportunity to avail this duty waiver.

Pakistan presents numerous and significant opportunities for investments aiming both at using Pakistan as an export base and at tapping into an emerging market with a rapidly growing middles class. "On the other hand, UK companies have the latest knowledge and technology in the areas of agriculture, healthcare and energy which are much needed in Pakistan to develop the country's industrial base." he added.

He said, "through events like exhibitions, festivals, and expos Pakistan facilitates an exchange of people, knowledge and ideas that are crucial in achieving our objective of increasing bilateral trade between the UK and Pakistan." Waqar-ullah said that both countries also vowed to strengthen bilateral trade to reach £2.5 billion by 2015 as part of "a jointly-owned" Pakistan-UK Trade and Investment Roadmap. The Pakistan and United Kingdom agreed upon "a jointly-owned" Pakistan-UK Trade and Investment Roadmap to actively pursue joint activities on trade and investment promotion.

The roadmap aims at creating a UK-Pakistan Chamber of Commerce in Pakistan to complement existing trade bodies in the UK and to develop business ties with such entities. Both governments urged UK companies to look at the opportunities Pakistani markets present and build on the success of the over 100 UK-based companies already engaged in business with Pakistan. President of MCCI Muhammad Khan Saddozai assured that MCCI would provide all opportunities and resources for strengthening bilateral trade between the two countries. Bakhtawar Tanvir Sheikh Senior Vice President also spoke on the occasion.

Pak-UK trade reaches $2.3 billion mark | Business Recorder

 

[Introvert]

Exhibitions can strengthen Pak-Nepal trade: Envoy

ISLAMABAD - Nepal greatly values its relations with Pakistan that are based on mutual respect, trust and shared perceptions on regional and international issues. These remarks were made by Bharat Raj Paudyal, Nepalese Ambassador while talking to the ICCI President, Zafar Bakhtawari during his visit to ICCI office. The Ambassador said that exchange of business delegations, single country exhibitions and a proactive involvement of business community of both the countries could enhance bilateral trade relations between Nepal and Pakistan. Bharat Raj Paudyal was of the view that the exhibition would not only provide an opportunity to the exporters of Pakistan to showcase their products but it would also provide an opportunity to people of Nepal to strengthen their economic ties with Pakistan. He hoped that arranging exhibition could be the most feasible option for strengthening mutual economic, cultural and trade ties between Nepal and Pakistan. Speaking on the occasion, Zafar Bakhtawari, President ICCI said that he considers Nepal one of the best friends of Pakistan as people of Nepal have great love and affection for Pakistanis. He said that technology transfer, investment and economic cooperation were the areas in which both countries could collaborate for mutual benefits.He said that the business communities of Pakistan and Nepal have to play a vital role for the promotion of bilateral trade and their greater mutual interaction is needed to achieve the ultimate objectives. He suggested that the two countries should focus on enhancing cultural exchange programmes and people to people contract along with focusing on strengthening trade.He further informed the Ambassador that ICCI has planned to organise an International Industrial Expo in the Federal Capital to promote the export of country’s industrial products. He further said that businessmen from all over the world would also be invited to this Expo that would give a boost to trade and exports. ICCI President invited Nepalese counterparts to actively participate in that event.

which would provide an opportunity to the business community of both countries to come closer to each other.

Exhibitions can strengthen Pak-Nepal trade: Envoy | The Nation

 

[foxbat]

Foreign investment in Pakistan plummets – The Express Tribune

KARACHI: Foreign investment in Pakistan plummeted by 67% in the first quarter, according to official data, with experts blaming the fall on poor economic management, energy shortages and persistent terrorism.

The figures from the central State Bank of Pakistan showed net foreign direct investment (FDI) from July to September was just $87 million, compared with $263 million in the same period last year. Pakistan’s financial year begins on July 1.

The overall FDI inflow during the quarter was $287 million while the outflow was $200 million, with only the oil and gas exploration sector recording a positive net figure.

Even the normally popular telecommunications sector registered a net outflow of $100.9 million.

Analysts said FDI inflows have been falling for the last four years.

“Poor economic management and persistent militancy has forced investors away from a market which has huge potential and prospects,” said economist AB Shahid.

Earlier this month the International Monetary Fund (IMF) said Pakistan’s economic situation was worsening and the country faced a return to double-digit inflation as the government prints money to finance its deficit.

The IMF also predicted growth of just 3-3.5 percent and warned the country’s external accounts were deteriorating, with incoming investment slowing and the central bank’s reserves dropping.

“But the biggest of the negatives is the deteriorating law and order situation that seems unmanageable,” Shahid said.

Pakistan has repaid $1.3 billion of IMF loans in four instalments, including a $400 million chunk in August, and is due to pay a further $2.5 billion in the current fiscal year, which ends on June 30.

The central bank said Pakistan had foreign reserves of $14.4 billion dollars as of last week.

 

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Jordanian envoy shows interest to expand trade relations with Pakistan

ISLAMABAD - Pakistan and Jordan are enjoying historical good ties and we are very keen to further expand and deepen trade and economic relations with Pakistan.
This was said by Nawaf Saraireh, Ambassador of Jordan during his visit to ICCI office for congratulating Zafar Bakhtawari on his appointment as President of Islamabad Chamber.

He said that Pakistani rice, furniture, handicrafts, carpets, surgical equipment, leather, pharmaceutical products, garments and many other items are very popular in Jordan. Ambassador said that Jordan was importing cotton and meat from Syria and Egypt but they were not cost-effective, therefore, Jordanian Government have planned to import these products from Pakistan as they have very good demand in Jordanian markets due to their good quality and cost effectiveness.

Nawaf Saraireh said that Pakistani counterparts should also participate in the exhibitions held in Jordan which provide an opportunity to showcase their quality products and services. He also assured that all the chambers of commerce in Jordan would be informed about the industrial expo which will be organized by ICCI so that Jordanian businessmen could actively participate in that event.

In his welcome address, Zafar Bakhtawari, President ICCI lauded the role of Jordanian Ambassador in promoting good relations between the two countries and said that said bilateral trade between the two countries is much below than their true potential and frequent exchange of trade delegations should be encouraged to tap the untapped bilateral trade potential.
He said that Jordan has duty free access to US and European markets, therefore, Pakistani businessmen could earn huge returns by promoting trade with Jordan.
Bakhtawari was of the view that it is encouraging that Pakistan and Jordan are now moving forward to further strengthen their bilateral economic and trade relations as both countries have great potential to enhance mutual cooperation in various sectors of their economies.
ICCI President said that both countries have huge potential to complement each other in different areas including science & technology, fertilizer, IT & telecommunication, industry, banking & finance, health & pharmaceuticals, agriculture, livestock, fisheries, education and culture.

Bakhtawari highlighted the deep-rooted historical ties between Pakistan and Jordan as Princess Sarwat played a vital role to create bridge between the two countries. He also invited Her Majesty Queen Rania to visit Pakistan to mobilize the women entrepreneurship for the welfare and betterment of the women segment in Pakistan.

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