Pakistan's Economy - News and Updates

[Introvert]

UAE to strengthen bilateral economic ties with Pakistan

LAHORE: While agreeing to work on a roadmap for promoting economic cooperation between the United Arab Emirates and Pakistan, the embassy of the UAE has stressed that it will join hands with businessmen in Pakistan to explore new sectors for deepening economic relations.

Speaking at the Lahore Chamber of Commerce and Industry (LCCI) yesterday, UAE Ambassador to Pakistan Essa Abdulla Al Basha Al-Noaimi said a new strategy would specifically focus on exchange of trade delegations, participation in each other’s fairs and exhibitions, protection to foreign investment and timely dissemination of trade-related information.

Underscoring the need for promotion of people-to-people contacts, the ambassador hoped that this would help strengthen cooperation between the two sides.

Noaimi underlined UAE’s commitment to consolidate the economic ties and said bilateral trade and investments in Pakistan reached $23bn in banking, real estate, energy, infrastructure, telecommunications, ports, housing and aviation.

The two sides are also taking interest in holding international exhibitions and joint investments in both countries for the development of economy. UAE was the first country, which organised a conference, in Dubai in March 2010, to promote investment in Pakistan.

Speaking on the occasion, LCCI President Farooq Iftikhar voiced concern over the fast declining UAE investment in Pakistan and sought the ambassador’s help to overcome the phenomenon.

Pakistan has been experiencing trouble in attracting foreign investment for the past many years.

In 2006-07, foreign direct investment (FDI) peaked at $8.1bn, but since then it has been falling and has now dropped below $1bn. In 2006-07, FDI from the UAE stood at $661m, but now it has gone below $50m.

UAE to strengthen bilateral economic ties with Pakistan

 

[Introvert]

Brazil improving trade ties with Pakistan

ISLAMABAD: Promotion of commercial and economic ties between Pakistan and Brazil would boost bilateral relations as Embassy of Brazil intended to help Pakistan in doing business with Brazil.

This was stated by Alfredo Leoni, Ambassador of Brazil to Pakistan who was talking to the business community here at Islamabad Chamber of Commerce & Industry (ICCI).

He also Congratulated Zafar Bakhtawari on his appointment as President of ICCI and expressed hope that he would help built relations with the diplomatic community to enhance Pakistan's trade and economic relations with countries around the globe.

He proposed that Pakistan could share experiences of Brazilian success story in the areas of economy and development achieved through the implementation of "Real Plan" which was introduced in 1994, in order to control inflation and stabilize the economy.

The Ambassador said that Brazil is the sixth largest economy as well as eighth biggest consumer market of the world, adding that Brazil is the largest commercial partner of Pakistan in Latin America but bilateral trade was about US$300 million which needs to be enhanced as Brazil is the major investment hub and also a gateway to South America.

He said that Pakistan's private sector should come forward in tapping the multiple opportunities of mutual trade between Brazil and Pakistan.

He assured the audience that there was plenty of room for investment in Brazil as it is a very strong and reliable economy. Those Pakistani businessmen who are interested in doing business with Brazilian partners must register themselves on braziltradenet.gov.br and become a member and a player of the biggest database available in Brazil involving international trading companies, market studies and information on fairs, Brazilian companies and trade offers.

In his welcome address, Zafar Bakhtawari, President ICCI lauded the devoted efforts of Mr. Alfredo Leoni for playing a dynamic role in further strengthening bilateral relations in all areas between Pakistan and Brazil.

The ICCI President said that we should concentrate on the existing opportunities and suggested that cooperation can be enhanced in the agriculture, energy and pharmaceutical sectors.

He said that visit of business delegations should also be encouraged to explore markets. In this connection, he invited business delegations from Brazil for meeting with the Pakistani counterparts.

Bakhtawari said that we should learn from Brazilian economic plan as they have turned their economy from negative growth indicators into positive economic growth. He called on the Brazilian business community to take advantage of vast Pakistani market and investment opportunities in agriculture, construction, livestock and dairy, energy, education, IT and Halal industry sectors.

Brazil improving trade ties with Pakistan

 

[Introvert]

Pakistani companies receive US 3 mln orders at Paris food show

Pakistani companies have received orders worth US 3 million dollars at a Food Exhibition in Paris, reposing confidence in the quality of products.A number of Pakistani entrepreneurs had setup their stalls here at Sial, Global Food Marketplace, considered the number-one industrial meeting place in Europe.The exhibition held every two years was attended by companies dealing in food products from all over the world. Pakistani pavilion comprised twenty companies; mainly rice exporters that included Metco Rice, Al-Hamza, Usman Traders, Maple Food, Mehran Bottlers, Guard rice and Shahpur industries etc.The other countries that participated in the exhibition included Turkey, Brazil, Mexico, Peru, India, China and Taiwan.

The Commercial Section of Pakistan Embassy provided full support and coordination to Pakistani exhibitors under the Trade Development Authority of Pakistan.
Director TDAP Nasir Hamid, Press Counsellor Embassy of Pakistan Tahir Khushnood and Commercial Counsellor Mrs. Suraiya Butt also met the representatives of Pakistani companies to know the response of the buyers and to facilitate them in attracting foreign buyers.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency )

 

[Introvert]

Lucky Cement enters into international joint ventures

According to a notification of the company to the Karachi Stock Exchange, Lucky Cement which claims to be the largest manufacturer of cement in Pakistan has entered into a couple of JV for making investment in international projects, besides expending and diversifying its business locally.

Mr Muhammad Abid Ganatara secretary of Lucky Cement said that the company has entered into joint ventures in cement plants in DR Congo, Africa and Iraq. The plant and machinery for the project in Africa has been negotiated and finalized with a renowned European supplier and the terms of the project financing are under process of negotiations with the development financial institutions and multilateral agencies.

Besides, the company has also entered into joint venture investment in cement grinding facility in Iraq. The contract for the supply of plant and machinery for this project has been signed and the project teams as well as civil contractors have been mobilized at the project site.

An industry source said that the demand for Pakistani cement is on the higher side in Africa and Lucky Cement aimed at capturing that opportunity. The project would also help the company save logistic cost of cement exports to the African countries.

Another industry source said that “The logistic cost of cement exports remained one of the major hurdles in increasing such exports from Pakistan. The cost factor is causing continuous decline in exports for the last several quarters.”

He said that moreover, Iraq has been destructed due to the war on terror and it needs to be reconstructed. Therefore, making investment in cement plant in Iraq would also help the company realize higher earnings. Besides, the company could also export cement to nearby countries such as Qatar and other GCC countries.

Lucky Cement also reported to investment equity in an associated company for 50MW wind farm project. The power generation licence and the requisite approval from the authority concerned for the acceptance of upfront tariff have been obtained. The project team is actively engaged in negotiations of concession documents and financing close with the stipulated timeframe.

The company also reported successful supply of uninterrupted electricity to Hyderabad Electric Supply Company with effect from July 1, averaging a supply of over 20 MW per hour during the quarter ended September 30th 2012.

As part of its diversification strategy, the company being part of Yunus Brothers Group led consortium has signed a share purchase agreement with ICI Omicron BV for the acquisition of 75.81% shares in ICI Pakistan. It has been agreed that YBG would pay a total of PKR 13.05 billion to ICI Omicron BV for the acquisition.

Lucky Cement enters into international joint ventures - 289400

 

[Introvert]

Pakistan’s exports to China rising, Beijing investing more: Envoy

ISLAMABAD - Ambassador of the People's Republic of China Liu Jian on Monday said Pakistan’s development is our progress and difficulties of Islamabad are our problem which we would mutually overcome soon.
He said that investment climate in Pakistan is very good while government is providing best possible security to investors therefore no Chinese entrepreneur is worried to come to Pakistan.
The Ambassador said that while talking to business community and Chinese Pakistanis at the house of Muhammad Raza Khan, former Chairman Coordination of FPCCI. Former President ICCI Nasir Khan and other business leaders were also present on the occasion.
Ambassador China Liu Jian said that Beijing is encouraging Chinese companies to invest more in Pakistan so that this brotherly country can progress on a fast pace.
Cooperation and trade between Islamabad and Beijing is increasing, bilateral trade has crossed $ 10 billion mark while Pakistan exports to China have increased by 54 per cent, informed Liu Jian.
He said that China is working on 120 projects in Pakistan of which some initiatives are related to energy. Asking Pakistan to resolve energy crisis as soon as possible, he said that we would be pleased if Chinese companies are invited to take part in TAPI gas pipeline project.
He said that China has become Pakistan's largest trading partner and and the fourth largest export destination. We should further strengthen cooperation in energy, agriculture, infrastructure, financial sector, and other fields, as well as enhance people to people exchanges, he said.
Both countries should try to get maximum benefit of bilateral Currency Swap Agreement and recent Agency Agreement signed between State Bank of Pakistan and the People’s Bank of China, he stressed.
At the occasion, Raza Khan demanded of the government to include Chinese companies in the TAPI project.
China has set a record by completing 7500 km pipeline in 18 months which means it can complete TAPI project in 4-5 months resolving energy our crisis, said Raza Khan.
Nasir Khan said that China is our best and tested friend and all Pakistanis are proud of Beijing.

Pakistan

 

[sur]

Didn't know where else to post it so here it is:-

Watch 00:25:00+ "Economic Hit-man's Confession"

Also 00:48:00+ creation of so-called terrorists by "real terrorists" suited in $5000 suits...

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Zeitgeist: Addendum (2008) - YouTube

 

[A.Rafay]

EU Commission regulations: Pakistan to automatically qualify for GSP Plus from January 1

Pakistan will automatically qualify for GSP Plus from January 1, 2014 provided it fulfils declarations as mentioned in Article-2 of EU Commission regulations. The European Parliament and the Council of The European Union have already agreed in principle on granting Autonomous Trade Preferences to Pakistan on Duty Free Access to 75 Tariff lines.

EU Commission has issued Regulation No 1029/2012 for introducing rules and regulations to this effect. This notification will be effective from November 15, 2012 to December 31, 2013. After the expiry of this Regulation, the EU Commission will submit a detail report as under:

"That report should include a detailed analysis of the effects of these preferences on the economy of Pakistan and their impact on trade and the Union's tariff income as well as on the Union economy and jobs. In reporting the Commission should take into account in particular the effects of the autonomous trade preferences in terms of job creation, poverty eradication and the sustainable development of Pakistan's working population and poor." The Report would be established after the completion of this regulation by EU Commission on the basis of Article-2 as under:

(Article-2) Conditions for entitlement to the preferential arrangements:

i- Compliance with the rules of origin of products and the procedures related thereto as provided for in Part 1, Title IV, Chapter 2, Section 1 and Section 1A, subsections 1 and 2 of Regulation (EEC) No 2454/93, with the exception of Articles 68 to 71, 90 to 97i and Article 97j(2) of those sections. However, as regards cumulation of origin for the purpose of the determination of the origination status of products covered by the arrangements introduced in Article 1 of this Regulation, only cumulation with the materials originating in the Union is allowed. Regional cumulation and other types of cumulation with the exception of the cumulation with materials originating in the Union, is not allowed;

ii- Compliance with the methods of administrative co-operation as provided for in Part 1, Title IV, Chapter 2, Section 1, subsection 3 of Regulation (EEC) No 2454/93;

iii- Pakistan is not engaging in serious and systematic violations of human rights, including core labour rights, fundamental principles of democracy and the rule of law;

iv- Pakistan abstaining from introducing new or increasing existing export duties of charges having equivalent effect or any other restriction or prohibition on the export or sale for export of any materials primarily used in the production of any of the products covered by those preferential arrangements destined for the territory of the Union, from 1 July 2012.

v- Certificate of origin "Form A" issued by the competent authorities of Pakistan pursuant to this Regulation shall bear the following endorsement in box 4 "Autonomous measure Regulation (EU) No 1029/2012".

If Pakistan fulfil above declarations as mentioned in Article-2 will automatically qualify for GSP Plus from January 1, 2014. Secretary General, Towel Manufacturers' Association of Pakistan (TMA), M Muzzammil Husain has informed members that EU regulation had been notified and ship would take effect from November 15, 2012 as per rules and regulations below:

Products wide HS Code 6302.6000 & 6302.9100 are subjected to TRQ (Tariff Rate Quota) and the quantity of items fall under the given HS Codes have been mentioned as under: After exhaustion of the prescribed limit of quantity, the normal tariff will be imposed by EU as per their tariff law. The products fall under the given HS Codes are under 25 percent quantity increase capacity based on average of last three years exports.

EC Regulation No 2454/93 will apply for quota management which as under:

---- EU importers will apply to the customs authorities of the relevant EU member states to avail the benefit of TRQ on First Come First Served basis.

---- These requests by the EU importers for TRQ will be entertained with reference to the date on which the custom declaration is accepted by the authorities of the concerned EU Member States.

---- EU importers and all interested parties will be able to monitor the state of quota utilisation at any given time on the EC Directorate General of Taxation and Custom Union (TAXUD) website.

---- As and when 90 percent of the total quota quantity is used up, its status will be considered critical and an alert will be posted on the website against that particular tariff line.

---- Based on this alert, Member States may demand a guarantee for the relevant duty (MFN or GSP) from the EU importer.

Quota Management: Quota Management will be done entirely by the European Commission. The basic role of Pakistani Authorities relates to issuance of Certificates of Origin confirming that the exported products are of Pakistani Origin so that they can qualify for ATP concessions.

GSP FROM PAKISTAN: Certificate of origin "Form-A" issued by competent authorities of Pakistan pursuant to this Regulation shall bear the following endorsement inbox -4 'AUTONOMOUS MEASURE-REGULATION (EU) NO.1029/2012.' TMA has assured its members that it would happily facilitate its members in scrutinising shipment documents before applying for GSP so that proper HS Codes of the products could be mentioned to avoid any problem for their own benefits.

EU Commission regulations: Pakistan to automatically qualify for GSP Plus from January 1 | Business Recorder

 

[BATMAN]

'Pakistan potential hub for solar energy power projects' Pakistan Business

 

[A.Rafay]

PTA with Pakistan in 15 days: Indonesian minister

ISLAMABAD - Indonesian Minister for Trade Gita Wirjawan on Thursday said that the Preferential Trade Agreement (PTA) signed with Pakistan earlier this year would become operational in 15 days.
He said the implementation of PTA signed on February 4, 2012 will not only improve relations between the two countries but also provide a level playing field to all exporters of edible oil who have vested interests in a lucrative Pakistani market.
Wirjawan stated this while talking to a select group of edible oil importers led by Pakistan Vanaspati Manufacturers Association (PVMA) Senior Vice President Atif Ikram Sheikh who is also Islamabad FPCCI Capital Office Coordination Chairman.
Akbar Iqbal Puri, Malik Sohail, Leonard F Hutabarat, Asia Pacific and African Affairs Director General Muhammad Hartantyo, Indonesian ministry of foreign affairs representatives and others were also present in the meeting arranged by the Indonesian embassy.
Wirjawan gave assurances that Indonesia will provide every possible facility to Pakistani importers. Sheikh and Puri, on the occasion said the imposition of PTA will provide incentives that will boost Indonesian exports into Pakistan.
Initially, Pakistan will save 35 USD per ton on import of palm oil from Indonesia which will help the country save a total of 70 million dollars of precious foreign exchange per annum. Sheikh further said Indonesia imports will not only help importers save money but will assist manufacturers in clipping prices which will benefit the common man.
He also stated that PTA will help Pakistani exporters gain enhanced access to Indonesian markets on 216 tariff lines at the preferential rate. This will be a great opportunity for Pakistani businessmen dealing in fresh fruits, cotton yarn, cotton fabrics, readymade garments, fans, sports goods, leather goods and other industrial products, he said. He observed that this crucial development will help stakeholders anticipate future developments in an increasingly challenging global economy and enable diversification of exports, thereby increasing their resilience amidst the current economic meltdown.

PTA with Pakistan in 15 days: Indonesian minister | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

 

[RabzonKhan]

Expatriate workers increasingly help float domestic economy

By Kazim Alam
Nov 27, 2012

KARACHI: Developing countries are expected to receive $406 billion in remittances in 2012, which is 6.5% higher than the remittances they received in 2011, according to a recent World Bank report.

The World Bank projects that remittances to developing countries will grow by 7.9%, 10.1% and 10.7% in 2013, 2014 and 2015 respectively, to reach $534 billion in 2015.

While the international economic downturn has adversely affected remittance flows to Europe and some other regions, South Asia is expected to fare much better than previously estimated, the report says. Remittance flows to South Asia are expected to clock in at around $109 billion in 2012, up by 12.5% over 2011, it said.

According to the State Bank of Pakistan (SBP), the country received remittances of $13.2 billion in fiscal 2012, which were 17.7% higher than the preceding fiscal year.

Similarly, in the first four months of the current fiscal year, remittances to Pakistan stood at $4.9 billion, higher by 15% compared to remittances received in the corresponding four-month period last fiscal year.

“Regions and countries with large numbers of migrants in oil-exporting countries continue to see robust growth in inward remittance flows, compared with those whose migrant workers are largely concentrated in the advanced economies, especially Western Europe,” the World Bank report says.

According to the Bureau of Emigration’s Assistant Director Farrukh Jamal, more than 80% of the manpower that Pakistan has exported resides in Saudi Arabia. “Almost 90% of recent emigrants from Pakistan currently work in the Middle East,” he told The Express Tribune in an interview two weeks ago.


The largest single-country chunk of remittances that Pakistan received in fiscal 2012 – amounting to $1.1 billion – was from Saudi Arabia. It was followed closely by the United Arab Emirates (UAE), with $963.1 million remitted from the country in the same period. The United States ($795.3 million) was the third biggest source of remittances during fiscal 2012.

Cost of remittances

The World Bank report says the high cost of sending money home is an “obstacle to growth of remittance flows.” It averaged 7.5% in the third quarter of calendar year 2012 for the top 20 bilateral remittance corridors, and 9% for all other countries for which cost data were available, it says.

Interestingly, the two most important bilateral remittance corridors for Pakistan – UAE-Pakistan and Saudi Arabia-Pakistan – are among the “five least costly corridors” in the world, according to World Bank’s Remittances Prices Worldwide project.

For example, sending $200 from the UAE to Pakistan costs $4.9, which translates into 2.4% and includes the transaction fee and exchange rate margin. Similarly, transferring the same amount from Saudi Arabia to Pakistan costs $5.6, or 2.8% of the remitted amount.

On the other hand, the World Bank says, the Singapore-Pakistan remittance corridor is among the “five most costly corridors” in the world: it costs almost $57 to transfer $500 from Singapore to Pakistan, which comes around 11.4% of the remitted amount.

Workers’ remittances and compensation of employees for Pakistan – which comprise current transfers by migrant workers and wages and salaries earned by non-resident workers – were 5.5% of the country’s gross domestic product in 2010, the latest year for which the relevant data is available on the World Bank’s website.

 

[A.Rafay]

Mobilink to invest $1bn in Pakistan

KARACHI: A delegation of VimpelCom informed Prime Minister Raja Pervez Ashraf of plans for further investment of $1 billion in Pakistan for the enhancement of Mobilink’s nationwide mobile network. A delegation comprising senior management from VimpelCom, the parent company of Mobilink, called on the prime minister at the Prime Minister House, on Thursday. The delegation was headed by VimpelCom Group CEO Jo Lunder who apprised the prime minister on VimpelCom’s global operations and the significance of the Pakistani market for VimpelCom’s growth strategy. The prime minister also discussed VimpelCom’s outlook on current operating conditions within Pakistan, and was apprised of Mobilink’s existing investment of over $3.9 billion towards consolidating its position in Pakistan’s telecom sector.

Daily Times - Leading News Resource of Pakistan

 

[W.11]

Over 800 Japanese investors to attend conference

KARACHI (PPI): The government of Japan has offered Karachi Metropolitan Corporation of organizing a seminar in the city sometime next month wherein over 800 Japanese investors would participate. The people running the small and medium size cottage industries would be invited to attend the seminar. All the investors would be invited to invest in industrial zone planned at Mehran highway for which the Japan government would also extend financial assistance. A delegation of JICA, headed by Mr. Agaci, informed about the proposal during a meeting with KMC Administrator Muhammad Hussain Syed. Syed told the delegation that services and works department would be directed to pay special attention on construction and repair of roads linked to Mehran highway and starting second phase of highway at the earliest. Japan government has released Rs.550 million grants for construction of second phase of Mehran highway that is about 11km long portion.

 

[Daywalker]

Pakistani stocks rise, rupee strengthens
AFP | 5 hours ago


KARACHI: Pakistani stocks closed higher Tuesday as investors remained hopeful that the national saving rate will be reduced soon, dealers said.

The Karachi Stock Exchange’s (KSE) benchmark 100-index closed at 16,858.68 higher, 0.34 per cent or 57.66 points.

D.G. Khan Cement rose 1.09 per cent, or 0.59 rupee, to 54.95 per share while Fauji Bin Qaim was up 1.11 per cent, or 0.42 rupees, to 38.28 per share.

“In hope that the national saving rate will soon be reduced, fresh buying was witnessed at Karachi stock exchange,” said dealer Samar Iqbal at Topline Securities.

Stocks that fell included Hub Power Co, down 1.35 per cent to 43.90 per share, and Jahangir Siddiqui, which fell 2.69 per cent to 16.25 per share.

In the currency market, the Pakistani rupee strengthened, closing at 97.88/97.94 against the dollar, compared to Tuesday’s 98.08/98.13.

The rally was a brief interlude in a mainly downward slide.

The rupee is under pressure due to import and oil payments and may fall further due to strong demand for the dollar from importers, a dealer said.

Overnight rates in the money market ended at 9.40 per cent compared to Tuesday’s close of 9.25 per cent.

 

[Bobby]

I can read so many posts say almost every country in the world vows to boost economic ties.....are you guys seeing any boost in Pakistan economy?.........

 

[fatman17]

FT says ‘dark prospects’ haunt Pakistan

our correspondent

Friday, December 28, 2012


LONDON: Influential newspaper Financial Times said in an article on Thursday that there is broad agreement among both Pakistani and foreign observers that Pakistan’s government has “failed to restore fiscal discipline, curb corruption or taking essential decisions on infrastructure investment”.


The paper said that Pakistan’s economy was in highly fragile state and was kept alive in part by about $1b a month of remittances from citizens and former citizens working in the Gulf, UK and North America. The country, according to the paper, has a thriving black economy, untaxed and unmeasured, and good prices for cotton and other farm crops that have bolstered the otherwise fragile domestic economy.



The paper quoted Prime Minister Raja Pervaiz Ashraf as saying: “We have food security. We are a wheat exporting country.” He boasted about foreign exchange reserves of $14b, higher than when the government was elected four years ago. The paper said IMF has told Pakistan that its reserves actually fell to an estimated $10.8n in the previous fiscal year and are projected to drop to $7.4b in the current year ending in June.



Shahbaz Sharif, Chief Minister of Punjab, accused the government of “looting and plunder” of the country and alleged that $700m were “spent in vain” on two hydroelectric power projects that were supposed to have been built by Chinese and other contractors having a capacity to produce 950 megawatts electricity.



“Not a kilowatt of power was generated. They should have been functional two years ago. The plant has been lying in Karachi for two years and there’s no electricity. The Chinese have gone back to China,” Shahbaz Sharif told the paper.



The paper also spoke to various industry leaders who painted a bleak picture of the economy.



“We have around 10 or 12 hours daily of no electricity,” said Azam Saigol, Managing Director of Saigols in Lahore. “It’s a really, really appalling state of affairs, but we are calm about it because it’s a way of life.”


“It’s very frustrating,” said Sakib Sherani, an economist who heads Macro Economic Insights in Islamabad. “You know you’re heading for a wall at 120mph and no one’s doing anything. Investment has just fallen off a cliff,” says Sherani. “Private domestic investment is at the lowest level on record. Right now reserves are relatively comfortable, but the burn rate is increasing. In Pakistan, the definition of a crisis is a balance of payments crisis. It’s on the cards.”



“The problems facing the country include bomb attacks and assassinations by extremists, high inflation, sluggish growth, extreme corruption, a lack of jobs for young Pakistanis and an unsustainable budget deficit, which the IMF says reached 8.5 percent of gross domestic product in the previous fiscal year, more than double the official target,” said the report.



For a country of 180m people — the world’s sixth biggest — the most worrying financial portent is the decline of the domestic and foreign investment that should ensure growth and jobs in the future, according to the paper. According to the central bank, total investment as a share of GDP fell to 12.5 percent in 2011-12, just more than half the level of five years earlier, it said.



Both Sherani and Saigol said that the IMF will provide relief to the country but it will wait for the new government to take charge.


fruits of democracy in pakistan.