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Pakistan's Economy - News and Updates

Silkbank sees revenue growth

KARACHI: Silkbank recorded 34 percent growth in revenue to Rs 6.5 billion for the year 2009 from Rs 4.8 billion in 2008. Silkbank continued the balance sheet clean-up process by taking net provisions against NPLs of Rs 2 billion in 2009. The aggressive provisioning contributed to a full year loss after tax of Rs 2.9 billion making the bank more poised for a turnaround in 2010. Deposits of the bank closed at Rs 49.6 billion, reflecting an increase of 21 percent in 2009 over the previous year. Advances grew by six percent to Rs 40.5 billion while investments increased by 68 percent to Rs 20.1 billion. staff report

Daily Times - Leading News Resource of Pakistan
 
Bank Alfalah, Faysal Bank profits rise substantially

KARACHI: Bank Alfalah announced 1Q2010 earnings of Rs 586 million (EPS Rs 0.43) in the first quarter of 2010, up 31%, from Rs 448 million (EPS Rs 0.33) recorded in 1Q2009.

“The earnings improved on the back of significant decline in provisioning expenses,” said Kamran Rehmani, an analyst at First Capital Equities.

The bank’s NII grew by 26% YoY to Rs 3 bn while this was up by 7% QoQ. Non interest income posted YoY decline of 23% on account of lower gain on sale of investments amounting to Rs 38 mn versus Rs 170 mn in the same quarter of last year.

In 1Q2010, provisions against NPLs declined to Rs 310 mn from Rs 555 mn in 1Q2009 and Rs 1.606 billion in 4Q2009, down 44% YoY and 81% QoQ. “We believe that the drop in provisions is likely due to the bank availing itself of further forced sale value benefit,” said Raza Jafri, an analyst at AKD Research.

Faysal Bank: Faysal Bank (FABL) reported record earnings of Rs 1.7 bn (EPS Rs 2.77) in 1Q2010, up from Rs 0.3 bn (EPS Rs 0.42) in 1Q2009 and Rs 0.5 bn (EPS PRs0.89/share) in 4Q2009.

“Massive profitability was due to one-time gain on redemption of NIT-Loc units,” said Rehmani. The bank’s NII posted healthy YoY increase of 12% to Rs 1.2 bn from Rs 1.1 bn in the same quarter of last year while this was 5% lower on sequential quarter basis.

Non interest income grew 4.5x YoY on the back of gain on redemption. Total provision charge in 1Q2010 declined to Rs 107 mn from Rs 313 mn provided in 1Q2009. During the quarter, the bank made reverse provisioning of Rs 189 mn against diminution on value of investments. Provisions against NPLs stood at Rs 298 mn, down 8% YoY and 31% QoQ.

Daily Times - Leading News Resource of Pakistan
 
Pakistan Defends its Soccer Industry:

By TOM WRIGHT

SIALKOT, Pakistan—This is the city the soccer ball built, a global manufacturing hub in a nation starved for foreign capital and mired in terrorist violence.

Nike Inc., the official soccer-ball supplier to Britain's Premier League, gets soccer balls here. So does Denmark's Select Sport A/S, which sells to the Danish national league and clubs across Europe. The city exports 30 million balls a year, or about 70% of the global output of hand-stitched soccer balls, and an estimated 40% of the total market.

This summer's World Cup is Sialkot's latest win. Germany's Adidas Group, licensed by soccer's governing body to sell the official World Cup ball, has contracted with a company here to produce the entire supply of mass-market hand-stitched replicas of the "Jabulani" World Cup ball.

Sewing Soccer Balls, Building Sialkot

View Slideshow

Massimo Berruti/AgenceVU for The Wall Street Journal
A woman sewed a soccer ball this weekend at a stitching facility run by Forward Group.

More photos and interactive graphics
But Sialkot's hand-stitched balls face competition from machine-made and machine-glued balls produced in China. Indeed, the balls used in actual World Cup matches this summer, made by hand in Sialkot in previous years, are being produced in China by machine.

A Sialkot-produced soccer ball has 32 panels that are stitched together, while the Jabulani World Cup ball made in China for the matches has eight thermally bonded pieces. The Jabulani match ball retails for about $150; the hand-stitched replica can sell for as little as $25.

Sialkot became a stitching center for soccer balls during the British colonial era. In the 1970s, European soccer ball makers, including Adidas, moved their production to the city to avoid rising labor costs at home. The city's workers, stitching balls by hand in dusty villages surrounded by wheat fields, made their first World Cup balls for the 1982 tournament in Spain.

Adidas contracted with Sialkot's Forward Group to make the replica World Cup balls. Forward Group expects to ship six million balls this year, up 40% from 2009.

But even with its Adidas contract, Forward Group faces big challenges. It has to run its own electric generators because of daily nationwide power shortages. The roads to Sialkot, in eastern Pakistan near the border with India, are rutted. And foreign sports executives remain reluctant to visit because of the terrorist threat.


German's Adidas Group has given one company in Sialkot, Pakistan, the contract to produce the entire range of mass-market-hand-stitched replicas of the "Jabulani" soccer ball that will be used at this summer's World Cup. The city, once the soccer ball capital of the world, is facing stiff competition from China. WSJ's Tom Wright reports.

Adidas made the decision to switch to thermally bonded balls for the matches at the 2006 World Cup. The goal was to make the balls perform more consistently when players kicked them. With a hand-stitched ball the seams inevitably produce dead spots. Initially, Adidas made those balls in Thailand before switching production to China ahead of the 2010 competition.

In recent years, China has also taken over most of the production of World Cup promotional balls, a lucrative market of about 40 million little balls emblazoned with sponsors' logos, says Khurram Anwar Khawaja, a soccer-ball producer and former president of the Sialkot Chamber of Commerce and Industry.

Sialkot has also lost a big share of midpriced mass-market soccer balls to China, which began producing cheaper machine-stitched balls a decade ago.

Forward Group and the other soccer-ball makers here are determined to defend their turf. They have cut costs by automating many parts of ball production. Local businessmen joined together to build an international airport in 2008 after the government failed to do so.

Now, the soccer-ball makers are planning to set up a research center to develop their own version of the latest thermal-bonding technology that Adidas is using for World Cup match balls, a process that involves fusing together patches of synthetic "leather" by machine.

Two years ago, Adidas transferred its proprietary technology to Forward Group, which has been making small amounts of thermal-bonded balls. Recently, the company successfully lobbied Adidas for permission to use the technology to produce balls for the UEFA Champions League final next month in Madrid, one of the biggest events on the global soccer calendar.

"It was hard to persuade Adidas to let us make this ball here," says Khawaja Masood Akhtar, Forward Group's chairman, who is trying to bring back the production of World Cup match balls to Sialkot. "We're 100% sure we can do it. Don't cry. Stand up and do the job."

Mr. Khawaja, the former chamber president, plans to start using machines to help his family's company lower the cost of competing with China, and he says he expects Sialkot will win back the World Cup promotional-ball market in 2014.

"Right now, Sialkot is in a very delicate balance, looking for new technology and trying to maintain its position as the top manufacturer of high-quality, hand-stitched balls," Mr. Khawaja says.

Most producers here believe that for now, the hand-stitched market will continue to attract soccer clubs and other consumers seeking high-quality match and practice balls, especially because thermally bonded balls remain so expensive.

And there's no question that despite the challenge from China and the preference of most of Sialkot's three million inhabitants for cricket, the area's economy is still dominated by soccer.

A huge statue of a soccer ball graces the city's main traffic circle. The industry directly employs 70,000 people and accounts for about a fifth of Sialkot's $1.25 billion in exports, with medical instruments and agricultural commodities accounting for some of the rest.

But hand-stitched balls are increasingly unable to compete in the cheaper market segment. A machine in China can produce 36 balls a day, while a Sialkot worker makes an average of six balls by hand in the same period, Sialkot's exporters say.

In a village stitching center run by Mr. Khawaja's company just outside Sialkot, Maqbool Hussain, who has been making soccer balls for two decades, brings in about $4 a day, much more than Pakistan's average wage.

He sews octagonal pieces together using a strong thread before inserting the rubber bladder and closing up the ball.

In a separate room, women stitchers, who account for more than half of the employees in Sialkot's soccer industry, sit on the ground under a ceiling fan.

In the late 1990s, companies like Mr. Khawaja's moved production to stitching centers after pressure from international labor groups because of the widespread use of child labor in Sialkot.

The U.N.'s International Labor Organization says the centers are more easily monitored, and Sialkot has combatted the problem.

At the Forward Group factory, machines cut thousands of octagonal ball segments stamped with the World Cup logo before workers sort them into boxes. They are then taken by truck to village stitching centers.

By the end of the year, Mr. Akhtar says, he'll start making machine-stitched balls to compete with China for sales of cheaper balls.

Write to Tom Wright at tom.wright@wsj.com
Pakistan Defends Its Soccer Industry - WSJ.com
 
^^^brother ur comments acknowledged

but this is not the appropriate thread for ur post

thank u
 
Can the moderators please delete post 49 please. there seems to be a troll intrusion.
 
PIA revenue rises 7.5% in Q1 2010’

Staff Report

KARACHI: Deputy Managing Director PIA, Salim Siyani has said the airline’s revenue increased to Rs 22.848 billion in the first quarter January – March 2010, reflecting an increase of 7.5 percent as compared to the same quarter last year. However, the cost driven by higher fuel prices continues to pose huge challenges, he said.

“The phenomenal performance became possible due to teamwork, dedication and hard work by all PIA employees including the officers and staff of one of our most productive stations, Lahore”, said Salim Siyani while addressing the Officers of Lahore Region at the PIA Senior Staff Association’s (PIASSA) Annual Dinner.

Shields and Medals were awarded to Fifty Eight children of PIA Officers’ who secured above 75 percent marks in Matriculation, Intermediate, O-levels and A –Level examinations and those children who memorised the Holy Quran, becoming young Hafiz-e-Quran. While Twenty Retiring PIA Officers of Lahore region were also awarded shields and cash awards.

While explaining the basic cost structure of the airline he said if PIA earns a rupee, majority of it is utilised for various expenses such as fuel, maintenance of aircrafts and other administrative expenses, and the remaining 15 paisas are used for other operational expenses and meeting the cash flow requirements.

Therefore, he said, the management is cognizant of the constraints and PIA needs to increase the size of the bread by cutting cost and increasing revenue, so that the airline’s stakeholders may reap the benefits rather than thinking of distributing the same bread.

Remembering his student life, DMD PIA said to the children that when he left for the USA for higher studies he had just 10 dollars in his pocket; with hard work and dedication in academics and work made him excel in his career and also made his dream come true which was to work for the National Flag Carrier. staff report

http://www.dailytimes.com.pk/


Pak-Qatar to invest Rs500m in family Takaful
Tuesday, May 04, 2010
By Shahnawaz Akhter


KARACHI: The sponsor of Pak-Qatar Takaful has planned an investment of around Rs500 million in Pakistan for expanding its family Takaful business and other related projects, said P. Ahmed, Chief Executive Officer, Pak-Qatar Family Takaful Limited talking to The News on Monday.

“Considering potential growth in Takaful business the board of directors of the company decided to make investment during the current year,” he said. The company would invest further Rs500 million in family Takaful and other related projects for expansion, Ahmed said.

Pak-Qatar initiated the Takaful - sharai compliant insurance - in Pakistan with the help of leading Qatar bank in 2005. The company operates in both general and family Takaful.

During the last financial year the family Takaful business of the company has registered tremendous growth. The contribution of the company reached to Rs466.64 million during the last financial year from Rs129.68 million in 2008.

“The clients have entrusted the Sharia compliant insurance system that resulted in exponential growth,” the CEO said. “The robust growth in contribution provided opportunity for expansion,” Ahmed said.

The family Takaful was incorporated in 2006 and started operation in 2007 with the paid up capital of Rs533 million. In the very first year the company received overwhelming response amid global recession and economic deterioration at the domestic front.

To a question on the impact on Takaful business of global recession and domestic economic deterioration, the CEO said that the insurance on Sharia principles was in initial phases. “The insecurity in conventional insurance system attracted the people to adopt Takaful,” he said.

He said that the global recession was due to financial crisis but in Pakistan it has its own reasons attributed to energy crisis etc. As the contribution for family Takaful increased the number of claims also rose significantly in 2009. “The claims are integral part of insurance business. Though the claims went up the ratio against the contribution has declined during the year,” he said and adding the ratio would further decline in upcoming years because the family Takaful is in its initial phases.

Surplus, which is an inherent benefit of Takaful, is calculated as the remaining amount in Waqf Fund after paying off all claims and meeting all expenses for the year. The company will share 15 per cent of the surplus amount with the Individual Takaful participants. “The advantage of surplus makes the Takaful different from conventional insurance system. The Pak-Qatar Takaful is the first company to declare the surplus,” the CEO said.

About the insurance business share in Pakistan comparing with GDP growth, he lamented that the insurance industry shares 0.3 per cent to the GDP whereas Takaful is even less. The overall Takaful size is around Rs1.4-1.5 billion in the last year, in which the Pak-Qatar has major share.

Considering the rapid growth during the last two years, the company is aiming to achieve Rs1.8 billion in 2010. “Though the target is ambitious but we hope to achieve it considering outstanding performance in years 2008 and 2009,” he said.

About launching the new products, the CEO informed that the customers would have access to an assortment of Individual and Corporate Takaful Plans. For the corporate sector group, the company will soon launch pension plan. For the individual, the company is launching debt protection and critical illness plans. Further, he also said that micro Takaful is also part of plans to reach different segments of the market.

Ahmed stressed the need of human resource for the industry. “The growth of Takaful business requires skilled human resource and in this regard government should initiate introductory courses at intermediate levels,” he added.

About the Bancassurance and Takaful line of business, he said that the company believes in joint ventures. He said that big financial institutions such as Dubai Islamic Bank, Standard Chartered, Emirates Global Islamic Bank are already on board and distributing Takaful products through bank counters. Other banks such as Bank Islami, MCB Bank and Bank Alfalah will shortly commence their Takaful operations for the benefit of the people.

An idea of allowing a window to conventional insurance companies for Takaful, the CEO rejected it and said that the two different mode of insurance cannot be operational together.

The News International - No. 1 English Newspaper from Pakistan - Tuesday, May 04, 2010
 
US clears Pak CSF dues with $467 million payment
Daily Times Monitor

LAHORE: The United States completed a total transfer of $656 million to the government with a final instalment of $467 million on Monday for some of the costs incurred while conducting counterinsurgency operations against extremists in 2009, a private TV channel reported on Monday.

According to the channel, the reimbursement, known as the Coalition Support Fund (CSF) is also intended to achieve the mutually-shared goals of peace and stability in Pakistan as well as in the region.

The CSF was established by the United States in 2001 to support 27 nations, including Pakistan, for some of the costs they incurred in the fight against terrorists. Since 2001, the United States has reimbursed approximately $7.2 billion to the countries

The last CSF payment was delivered to Pakistan in January and included a $349 million reimbursement for all validated CSF claims received from Pakistan for the year 2008, the channel said.

In addition to the CSF, the US civilian and security assistance to Pakistan has totaled more than $4 billion over the last three years.

Daily Times - Leading News Resource of Pakistan
 
Gem and jewellery export during 2008-09 was $289.1 million

RECORDER REPORT

ISLAMABAD (May 06 2010): Minister of Commerce Makhdoom Amin Fahim on Wednesday told the National Assembly that the export of gem & jewellery during 2008-09 was of 289.1 million dollar. In written reply the Minister said that Trade Development Authority of Pakistan (TDAP) has informed that they have set the target of 450 million dollar for the year 2009-10.

However, Gem and Jewellery Development Company has conveyed that target of 1.5 billion dollar has been set for export of Gem & Jewellery by the year 2017.

Copyright Business Recorder, 2010
http://www.brecorder.com/index.php?id=1053043&currPageNo=1&query=&search=&term=&supDate
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DHL Global plans to expand business in Pakistan

DHL Global plans to expand business in Pakistan

“There is nothing happening in Pakistan that we have not seen elsewhere”

Thursday, May 06, 2010
By Saad Hasan

KARACHI: DHL Global Forwarding, Worldís largest logistics group, plans to expand operations in Pakistan and spend $9 million in warehouses, its trucking fleet and train human resource.

“You have 176,000km of paved streets. Go to India or any African country and tell me if they have so much of paved roads,” Amadou Diallo, the Chief Executive Officer of DHL Global Forwarding business in South Asia Pacific and Angola, told The News in an interview.

The size of the investment is not much, but it shows the confidence of DHL Global in Pakistan, which is struggling to revive its battered economy.

“Every crisis offers opportunities,” said Diallo. “Most of the economies in the region, including Pakistan remained resilient to the recession.”

DHL Global, which is part of Germanyís Deutsche Group, sees growing business opportunities in the entire region.

“In the next 30 years, almost 40 per cent of the global trade will be taking place in Asia, Africa and Latin America,” Diallo said. “That means at least 50 per cent of the fortune 500 companies will be from Asia.”

“Pakistan is producing half a million graduates every year. All these brains will be generating a lot of ideas and in turn a lot of growth. They will want designer clothes and apparels,” he said.

DHL has been operating in Pakistan for the last 27 years and employs around 1,000 people. Over 50 per cent of its ocean trade revenue comes from Asian countries.

Diallo said investments in telecommunication and infrastructure sectors in Pakistan are playing a key role in the development of small and medium enterprises.

“Logistics companies such as DHL can help them get their products in various markets,” he said. “A lot of people know about Europe and the United States. But not many know that there is a rising middle class in Angola, Kenya, in chunks of South Africa and Sudan. We can help you get there.”

The freight forwarding companies provide not just transportation services, but give logistics solution, he said. “Businessmen can organise marketing through Internet. The logistics companies can ship goods even to Guatemala without their having to know the geography of that country.”

Most importantly, he said, companies such as DHL help exporters guide through customs procedures in different countries. “Now that is not something that you learn in any university.”

The deteriorating security situation in Pakistan is not something that deters DHL. “We operate in 222 countries around the world. There is nothing happening in Pakistan that we have not seen elsewhere.” He said Pakistan can gain from exporting agricultural products to around 1.2 billion Muslim consumers. “There is a need for investment in agriculture. But for the private sector to develop you need a lot of people who are willing to take risk.”


Pak-India annual trade could reach $10bn’

By Moonis Ahmed

KARACHI: The construction work on Integrated Customs Check Posts (ICCP) at Wagha Border has started and is expected to be completed before the end of 2011, Indian High Commissioner Sharat Sabharwal said at Federation of Pakistan Chambers of Commerce and Industry (FPCCI) here on Wednesday.

The Indian envoy, who has specially flown to Karachi to attend a luncheon meeting hosted by FPCCI in his honour, said that the ICCP would be fully computerised and equipped with most modern facilities after which the trade between India and Pakistan would flourish and traders from both the countries would be able to ship their consignments rapidly.
Sabharwal said that there is a trade potential of $10 billion between the two neighbouring countries and it could easily be materialised if done through official channels.

“Trade is the only way to eliminate the poverty from the region and elevate at least 350 million people living in absolute poverty in the South Asian region,” said the Indian envoy and added that if India can grow its trade with China to $55 billion in just a brief period then why not with Pakistan. He agreed to the suggestion to open up the land route of trade between the two countries via Tharparkar-Munabao but he said that it depends on nods by both the governments. He said that he realises the visa problems being faced by the business community but the restrictions and regulations are common for all and not just for Pakistan or Bangladesh. He explained that all trading partners are being treated equally.

He informed that Indian High Commission in Islamabad had issued 95,000 visas before Mumbai incident but this number of visas declined later. He however, hoped that the same number of visas would be issued this year as well. He mentioned that India is issuing more visas than Pakistan High Commission in New Delhi.

Regarding opening up of Indian Consulate in Karachi he said that Indian government had accepted this demand and had renovated its consulate building few years back but it requires Pakistan government’s approval.

He appreciated the idea of creating SAARC Shipping Line owned by SAARC countries and said that this proposal would be passed on to the quarters concerned. Indian envoy has assured the Pakistan-India Chamber of Commerce and Industry President S M Muneer that reciprocal visit of Federation of Indian Chambers of Commerce and Industry (FICCI) delegation is due and he would approach FICCI officials to materialise it soon.
Regarding issuance of five-year multiple visas to 500 businessmen of SAARC Chamber, he said that he would refer this proposal to SAARC secretariat.
To a query he categorically denied that India is stealing Pakistan’s water or creating hurdles in free flowing of Pakistan’s water. He said that water resources are depleting but population in the region is increasing and there is a dire need of strengthening water storage. “India’s capacity of water storage is low but Pakistan’s capacity of water storage is even worse. Water availability in monsoon is greater and we should preserve it,” Sabharwal said.

Daily Times - Leading News Resource of Pakistan
 
Forex reserves increase to $15.04bn

KARACHI: The country’s foreign exchange reserves have increased to $15.04 billion in the week ending on April 30, 2010 from $14.981 billion last week, the State Bank of Pakistan said on Thursday. The reserves held by the central bank increased to $11.18 billion as compared to $11.06 billion last week. Moreover, the reserves held by banks other than SBP declined to $3.86 billion as against $3.92 billion last week. staff report

Daily Times - Leading News Resource of Pakistan
 
Pakistan, Afghanistan vow to promote bilateral trade

ISLAMABAD: Pakistan and Afghanistan on Friday resolved to address each other’s concerns on Afghan-Pakistan Transit Trade Agreement (APTTA) in a positive manner and desired to not only promote the trade but also to facilitate Transit Trade. It was agreed during a meeting between Federal Minister for Commerce Makhdoom Amin Fahim and his Afghan counterpart HE Ghulam Muhammad Ailaqi. Whereas, Pakistan has also assured Afghanistan that would be no discriminations regarding transportation of goods from seaports to the Afghan borders. Amin Fahim said APTTA, which is under negotiations, should be acceptable to the government of Pakistan and Afghanistan and the people of both the countries. Amin Fahim assured the Afghan delegation that all important issues would be addressed in a mutually beneficial manner while framing the new APTTA. He stated it was in the national interest of both the countries to promote trade.

Both sides also discussed the impediments in bilateral trade. Moreover, the technical sides of both the countries are meeting shortly in Kabul to discuss the draft of APTTA and try to address the concerns of all stakeholders. According to the official sources, Pakistani side urged Afghan officials to ensure cooperation in elimination of smuggling on both sides of the border as it is hurting both the economies. Regularisation of informal trade would help both the countries to generate additional revenues but also help generating precious foreign exchange. It has been agreed that next meeting on APTTA would try to sort out issues relating to the border smuggling so that draft of the APTTA is finalised for formal approval from the respective governments and possible implementation of APTTA from July 1, 2010. staff report

Daily Times - Leading News Resource of Pakistan


Envoy assures to help enhance trade ties between Pak, UK

ISLAMABAD: British High Commissioner in Pakistan Adam Thomsan said he would do all what he could to improve the perception of Pakistan in UK and highlight the business opportunities that exist in Pakistan so that British companies could feel encouraged to make the most of those opportunities.

He said it during a meeting with a delegation of Islamabad Chamber of Commerce & Industry (ICCI) led by President Zahid Maqbool with envoy in his office. The delegation apprised him of the business opportunities existing in Pakistan for UK companies.
The envoy said over 100 UK companies were doing business in Pakistan and performing well. Many other companies of UK were taking keen interest to learn more about the dynamics of Pakistani market so that they could explore the possibilities of investment here.

He assured that British High Commission would take measures to provide fast track business visas to Pakistani entrepreneurs so that they could play more effective role in enhancing bilateral trade and economic relations between the two countries. Trusted Partner agreement, which was signed between the British High Commission and ICCI a couple of years ago, would be re-activated to promote business linkages between top business companies of the two countries.

Whereas, Zahid Maqbool talked to the High Commissioner about hurdles in the visa processing system that were creating difficulties for the Pakistani businessmen and students aspiring to visit to the United Kingdom and asked him to play his role in streamlining these matters. staff report

Daily Times - Leading News Resource of Pakistan


Switzerland appreciates Pakistan’s stance of ‘trade, not aid’

KARACHI: Switzerland wholeheartedly appreciates Pakistan’s stance of “Trade not Aid” and would fully support it with a new strategy, says Swiss Ambassador Markus Peter.
Switzerland is working on a new three pillars concept for engagement with Pakistan. The pillars are trade, foreign direct investment, humanitarian aid and Hindukush Programme, he said while speaking at annual dinner of Swiss Business Council on Thursday.

Peter said Switzerland was a leading investor in Pakistan with investment exceeding over $1 billion. “We are committed to a fairer trade regime and actively promoting reduction of trade barriers and quotas for developing states including Pakistan. Humanitarian aid is visible through Swiss longstanding reconstruction efforts in Pakistan’s 2005 earthquake affected areas. Hindukush Programme is Swiss rural development cooperation spanning over 45 years that pertains to former NWFP now called Khyber Pakhtunkhwa as well as Afghanistan.”

Switzerland is among the top five foreign direct investors in the last fiscal year and first nine months of the current fiscal year, said Martin Bienz, Swiss Consul General.
He said Swiss Business Council (SBC) has become an important stakeholder in the promotion of bilateral trade and investments since its launch in Karachi in May 2008.

He said the SBC had shown a great commitment and a broad vision to make the SBC a vibrant entity that was functioning exceptionally well in a very competitive environment. Martin Bienz said the Embassy and Consulate General of Switzerland and the SBC, which is an independent private sector body, pursued many common goals in the promotion of bilateral business relations.

The Swiss Consul General said it was a positive sign that other bilateral business forums were cooperating with each another in promoting trade by bundling synergies and increasing their visibility wherever their interests overlapped. He pointed out that the presence of the Presidents of other business forums showed that joining hands would bring greater benefits to stakeholders. ppi
 
Size of ICT industry rises to $12bn

Sunday, May 09, 2010

KARACHI: The overall size of the Information and Communication Technology industry in Pakistan has risen above $12 billion, including $1 billion under foreign direct investment (FDI), an official said on Saturday.

Addressing the inaugural ceremony of 5th Information and Communications Technology Exhibition and Conference, CONNECT 2010 at the Karachi Expo Centre, Adviser to the Prime Minister on Information Technology, Sardar Latif Khan Khosa said that Pakistan has one of the fastest growing tele-density in the world, accelerating at a rate of 63.5pc, while neighbouring India has just 37 per cent.

There are more than 95 million mobile connections in the country, which are still growing in numbers, he said, adding that this is exponential growth as mobile telephone market has seen a 14-fold increase since 2000.

This signifies the importance of the Information and Communication Technology sector and further potential it holds for the economy, he said.

CONNECT brings to Pakistan a focused event in the dynamic fields of IT and telecom and provides a unique platform to the companies to showcase their products and services, he said and called upon the IT professionals to reach out the entire Pakistan and spread IT in every nook and corner so that the people can take benefit of this dynamic technology.

He also supported the idea for a greater cooperation and interaction between the government, industry and academia to get maximum benefits of information technology.

Later, taking to media, Khosa said that the government has again invited foreign IT companies to restart their business in Khyber-Pakhtunkhwa and Balochistan.

“I have asked those companies to identify the quantum of damage to their infrastructure in Khyber-Pakhtunkhwa area due to the ongoing war on terror,” he said.

Companies are also seeking a price differential for broadband expansion, but the government has asked them to first start rehabilitation of their infrastructure and then the government will look into their demand of price differential, he added.

Similarly, broadband expansion and laying of optic fibre will be started in Balochistan to provide a faster and dependable Internet access to the people of the province. To a question, Khosa said that efforts are afoot to eliminate grey traffic in the IT sector with the help of International Traffic Control Room.

The government is implementing e-governance to encourage computerisation in the working and is providing LDI licences, the adviser said.
 
Remittances rise 15% to $7.3bn during 10M FY10

KARACHI: International Fund for Agriculture Development (IFAD), a specialised agency of the United Nations, in its quarterly Financing Facility for Remittances newsletter has reported that Pakistan showed the highest growth in the world in remittances despite recent global financial crisis.

According to the newsletter, Pakistan is followed by Bangladesh, Mauritius, Swaziland, Guinea-Bissau and Philippines.

Remittances sent home by overseas Pakistanis rose to $7.306 billion in the first ten months (July-April) of the current fiscal year, showing an increase of $951.07 million or 14.96 percent over the same period last year.

In April 2010, an amount of $755.77 million was sent home by overseas Pakistanis, up 8.35 percent or $58.25 million, when compared with $697.52 million received in the same month last year.

The inflow of remittances in the July-April, 2010, period from UAE, Saudi Arabia, USA, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1.663 billion, $1.525 billion, $1.461 billion, $1.033 billion, $734.59 million and $210.22 million, respectively, as compared with $1.366 billion, $1.264 billion, $1.435 billion, $996.02 million, $467.98 million and $196.53 million, respectively, in the July-April, 2009, period.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first ten months of the current fiscal year amounted to $ 676.86 million as against $ 628.09 million in the same period last year.

The monthly average remittances for the July-April, 2010, period comes out to $730.67 million as compared with $635.56 million during the corresponding period of the last fiscal year. During April 2010, remittances from Saudi Arabia, UAE, USA, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $183.13 million, $165.98 million, $144.09 million, $100.17 million, $73.62 million and $20.65 million, respectively as compared with $150.49 million, $156.64 million, $144.18 million, $102.83 million, $61.55 million and $20.86 million in April, 2009. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during April 2010 amounted to $68.11 million compared with $60.97 million in the same month last year. It may be pointed out that the State Bank, Ministry of Finance and Ministry of Overseas Pakistanis had undertaken a joint initiative called ‘Pakistan Remittance Initiative (PRI)’ with a view to facilitating the flow of remittances through formal channels. This initiative has started to materialise and remittances through formal channels are showing considerable growth.

The amount of $7.306 billion includes $1.02 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs). staff report

Daily Times - Leading News Resource of Pakistan
 
Forex reserves rise to $15.357bn

KARACHI: The country’s foreign exchange reserves have risen to $15.357 billion in the week ending on May 7, 2010, from $15.04 billion last week, the State Bank of Pakistan said on Thursday. The overall reserves have shown an increase of $317 million during the week. The reserves held by the central bank witnessed an increase of $372 million to reach $11.552 billion as compared to $11.180 billion last week. The reserves held by banks other than SBP declined to $3.805 billion as compared to $3.860 last week, showing a decline of $55 million. “This includes $468 million received from the United States last week,” said SBP spokesperson. Pakistan’s foreign reserves hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November 2008, largely because of a soaring import bill. An International Monetary Fund (IMF) emergency loan package of $7.6 billion agreed to in November 2008 helped avert a balance of payments crisis and shore up reserves. The IMF increased the loan to $11.3 billion in July and the central bank received a fourth tranche of $1.2 billion on December 28. The IMF board is due to meet on Friday to discuss the approval of a delayed fifth tranche of about $1.15 billion. staff report

Daily Times - Leading News Resource of Pakistan
 
Cement exports to increase manifold
By Moonis Ahmed

KARACHI: Pakistan’s cement exports to Middle East and African countries are expected to increase manifold on its rising demands in the upcoming months and countries particularly Afghanistan and Iraq are very attractive markets for the ongoing construction projects.

A report prepared by Topline Securities said Afghanistan will be a permanent market due to lack of availability of limestone while the demand may rise to 15 million tonnes from current 2.5 million tonnes.

It said that in the last decade the demand for cement has increased by 235 percent to 33.2 million tonnes while, supply, due to expansions has increased to 44.8 million tonnes, i.e. excess supply of 11.6 million tonnes. The Pakistan cement sector may witness an expansion phase in 2014 due to pickup in local and regional demand, it said.

Currently, the combined installed capacity (35.9 million tonnes in North and 8.9 million tonnes in South) stands at 44.82 million while Fauji Cement’s 2 million tonnes project is expected to come online this year, which will increase name plate capacity to 46.82 million tonnes. After this, Pakistan will be included in top 20 cement producers, the report said.

Pakistan has great cement export potential of 5 million tonnes to 27 countries. While bagged cement has export potential of 10 million tonnes.

Key challenges highlighted by the report includes higher indirect taxes (Rs 700 per tonne fixed excise duty, 1 percent special excise duty) which make Pakistan’s cement less competitive against regional players like India and China.

With huge potential of exports, Pakistan cement industry requires the government to take effective measures to support export sales with reduction in port costs (port duties and dock labor cost), increase of rebate on exports, separate births at ports for export clinker and cement.

With fuel source changing from furnace oil to coal, the dynamics of the sector have changed. Large manufacturers apart from installing waste heat recovery project for cheaper electricity are also looking towards alternate fuel sources (bio mask and municipal waste), which is estimated to fulfill 25 percent of power needs of the respective companies.

With Pakistan targeting a gross GDP growth of around 6 percent in next 5 years, huge investment in construction, infrastructure and transportation would be required, it said. These infrastructure investments include development projects like dams, highways and trade corridors. Furthermore, with rising coal demand in the country the government should allocate investments for extraction of coal reserves from Thal and Balochistan.

Daily Times - Leading News Resource of Pakistan
 

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