UrbanPK RSS Feed http://www.urbanpk.com/forums/index.php Wed, 01 Jul 2009 02:56:15 +0000 30 http://www.urbanpk.com/forums/index.php?/topic/26992-pakistans-exports-to-uk-cross-1bn/ LONDON: Pakistan’s exports to the UK have crossed $1 billion this year which is for the first time in history.

With growth rate of 16.29 per cent during the period July 2008-April 2009, Pakistan has seen all-time high exports to the UK, which has been one of Pakistan’s top three export markets in the world for the last four years, from 2005-06 through 2008-09.

Exports from Pakistan to the UK were $1 billion during financial year 2007-08. The exports mainly comprised items such as textile yarn, rice and cereals, fruit and vegetables and value added goods like apparel and clothing accessories, power generating machinery and equipment.

Officials at the Pakistan High Commission explained that by diversifying a huge potential for exports could be exploited. Three new sectors are high quality replica furniture, healthcare items including pharmaceuticals, surgical and beauty care instruments, herbal medicines and hospital linen; and dairy and Halal meat products.

In this context, the Pakistan High Commission has planned sector-specific conferences. A conference for promotion of healthcare sector is being organised from July 21 to 23.

As market access remains a crucial factor in expanding trade, Pakistan has insisted time and again for concessions and preferences such as GSP plus.

The surge in exports due to effect of award of GSP plus in the past is evident from the comparison of data of FY 2003-2004 with the successive years. According to officials, in UK there is great interest for trade with Pakistan which could be translated into growth of exports through greater outreach to importers and by rectifying misperceptions about Pakistan.


Source: Click here.]]> Wed, 01 Jul 2009 02:56:15 +0000 http://www.urbanpk.com/forums/index.php?/topic/26992-pakistans-exports-to-uk-cross-1bn/ http://www.urbanpk.com/forums/index.php?/topic/26943-pepco-to-add-3800mw-to-system/
LAHORE: Pakistan Electric Power Company (PEPCO) will incorporate 3800 Megawatts in its system during FY 2009-10.

According to a statement released Wednesday from PEPCO, the government has set target for 3858 megawatts to be included in the system during FY 2009-10; while, the PEPCO will add3000 Megawatts in the system by the end of this year.

A fast track rental project worth $80 million would soon be incorporated in the system, which will produce 136 Megawatts. This plant will be second rental project, which will start production this year.

According to PEPCO, the government is giving full-fledged facilities and privileges to all the IPPs in all power producing projects, so that the power crisis could be brought under control.]]> Wed, 17 Jun 2009 07:24:52 +0000 http://www.urbanpk.com/forums/index.php?/topic/26943-pepco-to-add-3800mw-to-system/ http://www.urbanpk.com/forums/index.php?/topic/26927-900mw-tarbela-extension-project-to-commence-soon-md-pepco/
Addressing a press conference, the MD PEPCO said that an estimated cost of the project is $1.2 billion while feasibility reports of 740 MW Munda Hydro power project and 840 MW Suki Kenari have also been prepared and development work on projects will start soon.

He said development work on 4,500 Diamer-Bhasha Dam will also be started in May next year with estimated cost of $ 9.8 billion while work will be started on 1,100 MW Kohala Project with estimated cost of $ 1.7 billion.

He said the government was also ready to start work on Thar Coal based project of overall capacity of 6,000 MW with estimated cost of $ 7.2 billion.

He said 225 MW Atlas Power Project will start production by end of this month while Orient power project will start in June this year to generate 225 MW.

Tahir Basharat Cheema said overall 3,060 MW electricity will be generated by end of this year which will help in improving the power situation and there will be no load shedding after 2009.

He said out of total electricity to be generated during year 2009 around 1,542 MW electricity from rental projects while 1,519 MW will be generated by independent power producers (IPPs).

He added 800 MW additional power is also likely from captive power plant.

He said the government is committed to developing indigenous resources to produce un-interrupted electricity at affordable rate to country people.

He said in year 2010 around 300 MW electricity will be generated through rehabilitation of GENCOs plants while 502 MW will be added in system in next year through hydropower in public sector.

He said 969 MW Neelum-Jhelum project will start production in 2015 alongwith other projects which are in pipeline.

Tahir Cheema said the government has fixed the target of installation of minimum 9,700 MW electricity through wind and solar energy by the year 2030.

He added 4,000 homes in over 70 remote, off-grid villages have been electrified while 300 villages in Balochistan are being electrified through alternative energy.

He said overall 7,784 villages will be electrified. He said 50 MW solar thermal power plant will also be set up in the public sector.

He said there is estimated potential of over 200 MW of electricity generation through waste in major cities of the country while current installed capacity is 35 MW.

He said the government has formulated power sector strategy to meet the country's energy needs and underpin high levels of economic growth.

He added the strategy is based on principles included affordability, energy security and financial viability with strategic approaches like involving private sector, diversifying energy mix, fostering regional approach and developing indigenous resources.

He said the company is working to address challenges like high system losses besides improving recovery campaigns particularly in selected areas.


Copyright APP (Associated Press of Pakistan), 2009
]]> Sat, 09 May 2009 19:46:01 +0000 http://www.urbanpk.com/forums/index.php?/topic/26927-900mw-tarbela-extension-project-to-commence-soon-md-pepco/ http://www.urbanpk.com/forums/index.php?/topic/26913-private-sector-imports-over-12-billion-power-generation-machinery/ KARACHI (April 29 2009): The country has spent over $1.2 billion on import of power generation machinery during the current fiscal year, depicting a surge of 63 percent over last year, as the power generation utilities have not been able to meet the power demand, importers said.

They said that despite all efforts, the government and power companies had failed to provide sufficient power. Therefore, continuing power shortage led the general public, industrialists and exporters to acquire power generation machinery.

They said that import of power generation machinery increased by $464.679 million, or 63 percent, to $1.202 during July-March period of the current fiscal year against last year's $737.787 million. During March, 2009, power generation machinery worth $98.54 million was imported as compared to $89.92 million in March 2008, recording an increase of 10 percent.

"Industrialist and exporters are not relying on the country's power utility providers, like Karachi Electric Supply Co-operation (KESC) and Water and Power Development Authority (Wapda), and after suffering the worst kind of problems, they have acquired self-generation plants, importers said.

They said that continued power failure in the country has also bashed the industrial activities, especially the export-oriented ones, besides causing serious delay in exports. "We had only two ways out: either to put export process in jeopardy, or to go for self-power generation," said a leading textile exporter, adding that "we chose the second way".

He said that self-power generation has become a primary need for general public and all export-oriented units. He added that a specific space and amount is being allocated for power generation in budgets to avoid power crisis during their operations.

Self-power generation is much costlier than the locally provided utilities but is the only way to save exporters from huge financial losses in terms of cancellation of orders by international buyers, which are much higher than expenses of power plant installation.


Copyright Business Recorder, 2009


Source: Click here.]]> Wed, 29 Apr 2009 13:41:27 +0000 http://www.urbanpk.com/forums/index.php?/topic/26913-private-sector-imports-over-12-billion-power-generation-machinery/ http://www.urbanpk.com/forums/index.php?/topic/26912-census-process-started-without-cabinet-approval/ ISLAMABAD (April 29 2009): The Statistics Division has launched 6th Census process without formal approval of the Cabinet. This is in spite of the reservations about manpower availability expressed by Defence Ministry. The proposal had been placed before the Cabinet in its meeting on April 8, 2009, which deferred decision till next meeting, which has not yet been scheduled.

"Sharing of resources on population basis, recruitment quotas, representation in National/ Provincial Assemblies, ethnic and tribal tendencies are likely to distort the perspective of functionaries as well as provincial governments," sources quoted the Statistics Division as conveying to the Prime Minister before the start of the Census process.

There were reports that the federal government would put on hold the planned 6th Population and Housing Census because of the army's refusal to provide security due to its engagements elsewhere and paucity of funds; but the launch of census process may imply that the Prime Minister has given it the go-ahead.

According to the plan, the Statistics Division had to carry on population census from April 27 to May 11, and Housing Census in October this year, but the information disseminated through electronic media was that the Population Census organisation had started house listing operations, expected to continue till May 11.

Earlier, the Statistics Division had submitted the proposal to Prime Minister Yousaf Raza Gilani for approval, but he directed the concerned department to place it before the Cabinet. Sources said that approximately 160,000 armed forces personnel were to be deployed at man to man level, with the civilian census staff, to ensure security of the field census operation.

The Ministry of Defence was approached by the Census Division for this purpose which, after a couple of meetings, refused to assist the Population Census Division due to existing security situation in certain parts of the country, sources added. They said that non-availability of required funds and paucity of staff in the fiscal year 2007-08 had delayed some of the core field activities and badly hampered the organisation's approved census schedule.

However, against the demand of Rs 3657 million for the fiscal year 2008-09, an amount of Rs 1806.1 million has been provided in which only first phase of the census process ie listing can be completed this year. An additional amount of Rs 2300 million is required in the next financial year to complete the second phase ie population and housing enumeration. Population census is the biggest peace time logistic exercise involving mobilisation of 175,000 and expenditure of Rs 2300 million.

Sources said that in certain areas the census would have to be conducted in collaboration with the security forces. Directives from the Cabinet were sine qua non to provincial governments and other Ministries controlling the security forces to provide necessary security cover to census staff, wherever requisitioned by the Chief Census Commissioner. But the matter has not been considered by the Cabinet so far.


Copyright Business Recorder, 2009

Source: Click here.]]> Wed, 29 Apr 2009 13:35:48 +0000 http://www.urbanpk.com/forums/index.php?/topic/26912-census-process-started-without-cabinet-approval/ http://www.urbanpk.com/forums/index.php?/topic/26911-engro-chemicals-earns-rs695m/ By our correspondent

KARACHI: Engro Chemicals has announced net earnings of Rs695 million for the quarter ended March 31, 2009, 15 per cent lower than Rs819 million profits in the corresponding quarter last year.

This translated into earning per share (EPS) of Rs2.33 against Rs2.75 in the corresponding quarter of 2008. “The decrease in earnings took place largely on account of higher financial charges and lower dividend income from subsidiaries and affiliates,” said Farhan Rizvi at JS Research.

The company recorded revenues of Rs5.7 billion in the quarter under review, up 26 per cent year-on-year basis, due largely to a sharp rise in urea prices. Average urea price was Rs680 per bag, nearly 33 per cent higher than that in the same quarter in 2008. Though gross margins fell slightly to 34 per cent (36 per cent in 2008), higher revenues propelled a gross profit to Rs1.9 billion, up 17 per cent on yearly basis.

Despite strong growth in the top line, higher financial and other charges, up a massive 98 per cent to Rs526 million, kept earnings on the lower side. Moreover, lower dividend income from subsidiaries and affiliates resulted in an 80 per cent decline in other income which was recorded at Rs46 million. Along with results, the company also announced that the board of directors has agreed to carry out a de-merger of Engro, as a result of which Engro’s fertilizer business is proposed to be bifurcated from Engro Chemicals and transferred/merged into a newly-incorporated and wholly-owned subsidiary, reported JS Research. Necessary approvals in this regard will be sought after that the company would file a de-merger petition in the Sind High Court. Resultantly, the fertilizer assets of the Engro will be substituted by shares of its wholly-owned subsidiary, added the brokerage house. Upon completion of the de-merger exercise, Engro will function as a pure holding company and oversee business of its new fertilizer subsidiary as well as businesses of its other subsidiaries/affiliate, it added.



Source: Click here.]]> Wed, 29 Apr 2009 13:34:36 +0000 http://www.urbanpk.com/forums/index.php?/topic/26911-engro-chemicals-earns-rs695m/ http://www.urbanpk.com/forums/index.php?/topic/26886-kse-gains-124-points-on-news-of-5bn-aid/ By our correspondent

KARACHI: The commitment by Friends of Democratic Pakistan (FoDP) of giving over $5 billion aid to the country kept Karachi bourse up in the green territory on Friday.

This news prompted investors to push up the market by 1.63 per cent on active short covering.

KSE 100-shaer index posted a handsome recovery of 1.63 per cent or 124.87 points and closed at 7,794.95 points. The parallel running junior 30 index surged by 1.72 per cent or 144.73 points and finished at 8,540.16 points.

Leading analyst M Sohail said that the announcement of over $5.28 billion aid to the country by FoDP was well in line with expectation and the decision retrieved market in green. Earlier, the market opened on a confused note and fell in red immediately. The extended correction took market down to 7,524.71 points intra-day low, losing another 155 points from pre-opening level. Sohail added that the market faced some selling pressure in early hours owing to likely unchanged outlook of the tight monetary policy to be announced by the State Bank of Pakistan on Monday, April 20. If SBP did not announce a significant or even a little cut in the exorbitant discount rate then there shall be seen no battering in the market and the impact would be neutral, as it (market) has already posted the due discount on conflicting news about maintaining the current rate high at 15 per cent in the next quarter as well. The market would, however, react positively if central bank announces a cut and eases the policy, he further said.

Ahsan Mehanti at Shahzad Chamdia said that the investment activities at bourses would increase, as investors were expecting further pledge from FoDP donors’ conference, which would also stabilize the economic outlook of the country.

Moreover, expectation of good result announcements in oil, banks and fertilizer sectors remained a major catalyst for positive activity, he added. Out of total 302 actives on board, 171 stocks advanced, 115 stocks declined, while the value of remaining 16 stocks closed unchanged.

Among the notable stocks, Pak Oilfields, Lucky Cement, EFU General Insurance, Attock Refinery and Pak Refinery settled in red territory. Furthermore, the day turnover declined to 259.365 million shares against 337.353 million shares traded in the ready market a day earlier, showing a decline of over 23 per cent on day-to-day basis. Activities in the future market remained lull with zero shares turnover. On the contrary, the overall market capitalisation surged by Rs28 billion and stands at Rs2,323 billion.

The foreign portfolio investors also injected funds worth over one million dollar in this session at three local bourses, according to NCCPL website.

Highest volumes were witnessed in JS Company at 23.825 million closing at Rs43.73 with a gain of Rs1.46, followed by National Bank at 16.273 million closing at Rs84.26 with a gain of Rs2.88, Pak Oilfields at 14.383 million closing at Rs155.06 with a loss of Rs5.75, DG Khan Cement at 13.512 million closing at Rs28.72 with a gain of 32 paisa, and Oil & Gas Development Company at 12.418 million closing at Rs78.08 with a gain of Rs1.35.


Source: Click here.]]> Sat, 18 Apr 2009 09:20:49 +0000 http://www.urbanpk.com/forums/index.php?/topic/26886-kse-gains-124-points-on-news-of-5bn-aid/ http://www.urbanpk.com/forums/index.php?/topic/26885-president-zardari-seeks-global-help-to-resolve-issues/
Addressing Boao Forum, President Zardari said Pakistan need global help to fight terrorism. Terrorism needs urgent check otherwise it will dampen hopes.

He said terrorism and extremism are biggest challenges for the region. Global troops are present in Afghanistan. Terrorism needs to be tackle on urgent basis. President said he would utilize every forum to brief the world about prevailing situation.

Source: Click here.]]> Sat, 18 Apr 2009 09:16:33 +0000 http://www.urbanpk.com/forums/index.php?/topic/26885-president-zardari-seeks-global-help-to-resolve-issues/ http://www.urbanpk.com/forums/index.php?/topic/26883-clocks-advanced-from-midnight/
Wednesday, April 15, 2009
By Azeem Samar

KARACHI: The government for the second consecutive year is advancing clocks by one hour from April 15 with the aim of saving electricity. However, people question the benefits that may stem from this system at a time when bigger problems need to be tackled first.

Authorities claim that putting forward clocks by one hour during summer would help conserve electricity, a resource that is desperately needed to overcome the power crisis. After enforcing the daylight saving time, the longer utilisation of sunlight during evening hours would be helpful for the salaried class who want to spend quality time with their family members for recreation or those looking for an additional source of income after regular job timings, say some.

However, the business and trading community has come down hard on the government, saying undue advancement of clocks by one hour would massively affect the business and trade.

Federation of Pakistan Chambers of Commerce and Industry President Sultan Ahmed Chawla said a majority of businessmen in the Federation did not favour daylight saving time as there were not any proven facts and figures to support the government’s claim that the system had resulted in conservation of electricity. “Daylight saving time will further compound the problem of uncertainty which has already spread in the society,” he said.

Karachi Chamber of Commerce and Industry President Anjum Nisar suggested instead of advancing clocks by one hour, the country should go for moving the clocks forward only by half-an-hour to match Pakistan time with the Indian time.

Last year, the government, after a gap of six years, reintroduced the daylight saving time and ran that from June 1 to August 31 amid a massive electricity shortfall across the country. Later, the federal cabinet on August 27 decided to extend the period for two more months and it remained enforced till October 31, after which clocks were reverted back.

Pakistan Electric Power Company’s Director General Energy Management and Conservation Tahir Basharat Cheema said clock advancement last year had helped the country save 250 megawatts of electricity during day timings.

“Now daylight saving system is being implemented much earlier so it will meet the objective of energy conservation for surely a longer period of time,” he said.

Moreover, he said, the system would create an environment where everybody would be under an obligation to contribute to power saving.


Source: Click here.]]> Wed, 15 Apr 2009 16:47:04 +0000 http://www.urbanpk.com/forums/index.php?/topic/26883-clocks-advanced-from-midnight/ http://www.urbanpk.com/forums/index.php?/topic/26880-gilani-lays-foundation-of-rs-4-6-billion-multan-international-airport-terminal/ MULTAN (April 12 2009): Prime Minister Yousaf Raza Gilani laid the foundation stone of the new terminal of Multan international airport here on Saturday. Addressing the gathering, he congratulated the people of the city on this occasion and said that with the extension of the airport a new chapter of prosperity and economical development would open.

He said that people would get new job opportunities with this mega project, and better travelling and cargo facilities would also be available to the people of this region. The PM said that Multan is a 5000 years old city, "and our purpose is to introduce the world with the culture of this region".

He said that the government has given this gift to the people of this city to provide them better facilities so that the traders and farmers could import their fruits and other products like ceramics, furniture, pottery etc and bring foreign exchange into the country.

He said that the work on Multan-Faisalabad Motorway has already been started, "and now I also announce the project of Multan-Karachi Motorway on this occasion". He said: "With this project, the people will get direct and easy access to Karachi for business and other activities." In charge of Prime Minister Camp Office Ahmad Mujtaba Gilani was also present on this occasion.

Earlier, Director-General, Civil Aviation Authority (CAA), Junaid Ali, and Defence Secretary Lieutenant General Athar Ali gave briefing on the extension project in the executive lounge. The PM was informed that the project of the new terminal and 10.5 km runway would cost about Rs 4.6 billion, and would be completed in 2010. They said that after the completion of the project, Boeings 777, 747 and Airbus could also land at this airport.


Copyright Business Recorder, 2009]]> Sun, 12 Apr 2009 18:57:25 +0000 http://www.urbanpk.com/forums/index.php?/topic/26880-gilani-lays-foundation-of-rs-4-6-billion-multan-international-airport-terminal/ http://www.urbanpk.com/forums/index.php?/topic/26879-government-expecting-5627-billion-inflow-through-13-projects/ ISLAMABAD (April 12 2009): The government is expecting $5.627 billion inflow through 13 projects, which are in the pipeline. According to Board of Investment, the projects in the pipeline are of trade, construction, steel, infrastructure, automobile, telecom, power and banking sectors.

A project of Al-Tawarqui Group of Saudi Arabia for steel manufacturing in Al-Tawarqui Steel Mill is also in the pipeline with an investment of $1 billion. An investment of $200 million and $21 million is in the pipeline for projects in trade, services and consumers products from M/s Metro Cash & Carry and M/s MAF Hypermarkets Pakistan (Pvt) Limited (Dubai) respectively.

An investment of $1 billion is in the pipeline by M/s Al Ghurair and the Giga Group of UAE for World Trade Centre, Gold Crest in DHA Islamabad and $450 million from M/s Pak-Gulf Construction Company (PGCL) for residential towers and hotel in the Centaurs in Islamabad.

A project of Al-Tawarqui Group of Saudi Arabia for steel manufacturing in Al-Tawarqui Steel Mill is also in the pipeline with an investment of $1 billion. M/s Agility Logistics, Kuwait also invest $160 million in logistics centers Warehouses.

M/s Tianjin Renong Pesticide Industries Company and M/s Pak-China Chemical are planning $12 million investment in chemical sector. China National Machinery and Equipment Import Export Corporation have a project in the pipeline for investing $450 to $500 million in Sonda-Jherruk Integrated Coal Mine & Power Plant Project.

A project of M/s Haier to invest $200 million in infrastructure development at China-Pakistan Economic Zone is also in the pipeline. M/s King Long United Automotive Industry of China also wanted to invest $1.3 million in automobile sector. Telenor Norway will invest $1.8 billion in telecom sector. M/s Atlas Group would invest $250 million in power and $33 million in banking sector, according to BoI.


Copyright Business Recorder, 2009

Source: Click here.]]> Sun, 12 Apr 2009 18:52:40 +0000 http://www.urbanpk.com/forums/index.php?/topic/26879-government-expecting-5627-billion-inflow-through-13-projects/ http://www.urbanpk.com/forums/index.php?/topic/26848-july-december-edl-surge-to-509-billion-review-of-economic-situation-released/ ISLAMABAD (April 02 2009): Pakistans external debt and liabilities (EDL) surged to $50.9 billion in the first six months of current fiscal year (July-December) from $46.3 billion in end-June 2008, reveals Review of Economic Situation, released here on Wednesday by the Finance Ministry.

The EDL has gone up to 31.2 percent of projected Gross Domestic Products (GDP) of current fiscal year that was 27.6 percent by end-June 2008. According to the review, foreign investment saw a decline of 34.2 percent in first eight months (July-February) from $2.873 billion to $1.89 billion. A negative growth of 5.4 percent was recorded in the Large Scale Manufacturing (LSM) during the period under review against a positive growth of 5.2 percent for the same period of last year.

The LSM is victims of energy shortage along with rising cost of doing business and deteriorating law and order situation in the country. The review said that LSM growth was hit hard by sharp reduction in demand from both domestic and external sectors.

The further demand compression in the export sector is estimated at 5 percent. The inflation surged to 23.5 percent with food inflation touching as high as 28.9 percent during the period. The non-food inflation was recorded 19.3 percent and core inflation 17.8 percent.

An increase of 4.3 and 0.5 percent was witnessed both in exports and imports respectively. The exports went up from $12.482 billion a year ago to $13.015 billion while imports increased to $21.878 billion from $21.776 billion during the said period. Trade and current accounts deficits recorded a marginal decline. The current account deficit declined to $7.5 billion from $8.6 billion of July-February last year.

The review said that Pakistan witnessed major disruption in its normal economic activities as the fallout of the war on terror spread into settled areas of Pakistan. The outlook for economic growth more pessimistic, imports demand shrivelled, tax collection declined and inflow of foreign investment and privatisation dampened.

Pakistan economy still faces pressure from higher inflation, driven by spike in food prices, the acute power shortage, bewildering stock market, a perceptible slowdown in the manufacturing and services sectors; lower than anticipated inflows and growing financing requirements.


Copyright Business Recorder, 2009

Source: Click here.]]> Thu, 02 Apr 2009 20:06:31 +0000 http://www.urbanpk.com/forums/index.php?/topic/26848-july-december-edl-surge-to-509-billion-review-of-economic-situation-released/ http://www.urbanpk.com/forums/index.php?/topic/26827-trade-diversion-towards-region-to-save-15bn/ LAHORE: SAARC Chamber of Commerce and Industry (SAARC CCI) has appreciated the Pakistani government’s decision to promote trade with neighbouring countries.

In a press statement on Friday, Tariq Sayeed, SAARC CCI president, said the decision is a positive step, and said that it would help increase the share of Pak trade within South Asia and affect the overall increase in intra-regional trade, which was less than 5 per cent before the formation of SAARC in 1985.

Referring to some studies, including that by Dr Hafiz Pasha, he said that trade diversion towards the region could save enormous amounts of $1.5 billion per annum, if essential products not made locally, were imported from the region, particularly from India.

He said Pakistan has to import raw material of steel and iron, machinery and engineering-based equipments, chemicals, and consumer goods from Australia, Brazil, Mexico, Europe and South East Asian countries, which are also available in India at a compatible quality and competitive rates. “There is no harm if we buy these products from India,” he maintained.

Iftikhar Ali Malik, VP SAARC CCI said that allowing trade through the Wagah-border and increase in importable items from India would help promote Pakistani trade with the largest market of the region and eventually have multiple impacts in terms of saving of huge foreign exchange of the country.

Sayeed stressed upon the need for promoting intra-regional investment, stating that investment has taken over trade strategy due to its multiplier effects, like innovation in technology, value addition, and surplus production for quantum leap in exports, etc. Citing the exemplary increase in Chinese exports, he said that FDI had a major role in increasing the size of exports from China, attracting more than $50 billion per annum FDI for the last one decade.



Source: Click here.]]> Sat, 28 Mar 2009 20:37:52 +0000 http://www.urbanpk.com/forums/index.php?/topic/26827-trade-diversion-towards-region-to-save-15bn/ http://www.urbanpk.com/forums/index.php?/topic/26826-kse-jumps-195-points-on-better-economic-outlook/ By our correspondent

KARACHI: Ignoring the terrible law & order situation in the country, the Karachi bourse jumped up by fresh three per cent and easily breached through 6,800 points level on Friday.

The KSE 100-share Index posted a fresh increase of 2.95 per cent or 194.97 points and ended at 6,803.46 points.

After opening on a positive note, market continued to hover upside throughout the day and closed very much close to its intra-day high of 6,827.18 points.

The market could have slipped into the negative territory owing to a powerful suicide blast in Khyber Agency, taking more than 50 lives and injuring another about 150 people, who were offering Friday prayers in an area mosque. The investors, however, ignored this law & order development in the country and gave more importance to the economic events this time, analysts said.

They added that investors injected fresh funds in market, keeping in view the approval of $500 million interest free loan to Pakistan by the World Bank. Moreover, the joining of market by the sideline investors on strength encouraged the other dormant investors too to take their active part in the rising market.

Therefore, the day turnover surged to 229.616 millions shares as compared to 205.219 million shares changed hands a day earlier - showing an increase of approximately 12 per cent on day-to-day basis.

On the contrary, the turnover on future market declined by 99 per cent to mere 500 shares from 50,000 shares yesterday.

In line with the overall market performance, the overall market capitalisation enhanced by Rs57 billion and stands at Rs2,043 billion.

Hasnain Asghar Ali at Aziz Fidahusein said that news of confirmation of World Bank’s grant of $500 million interest free loan and the WB offer to convert $67.5 million loan into grant, allowed the local bourse to ignore the last day phobia.

Low turnover initially did not allow an excited run-up, accumulation at discounted levels, however, allowed index to stage a decent recovery. A mix of apprehension and rumours from Saturday’s parliamentary address infused renewed buying interest in almost all the main board stocks, as materialization of the rumours, such as elimination of 58(2B) and restoration of Punjab government, will not only increase international support for the local democracy but will offer a healthy investment environment, he added.

Buying spree allowed the index to breach and sustain above major resistance of 6770-6773 as the whisper of increased foreign inflow, which proved wrong, invited the active corporate and retail participants with comparatively high energies, Asghar Ali said.

The foreigners, as usual, disinvested another total $56,560 in this session from three local bourses, according to NCCPL website.

Development that can move the local bourses either ways include the unveiling of US strategies regarding war against terror, financial and economic assistance to the supporting nations. These future developments might influence the local bourses, as the bourses are likely to stay sensitive to the situation linked with national and international developments.

Out of total 354 active stocks, 232 stocks closed in positive column, 107 stocks closed in negative column, while the value of remaining 15 stocks closed unchanged.

Highest volumes were witnessed in Bank Al-Falah at 17.115 million closing at Rs14.64 with a loss of 46 paisa, followed by Maple Leaf Cement at 15.802 million closing at Rs5 with a gain of 75 paisa, DG Khan Cement at 11.830 million closing at Rs22.64 with a gain of 64 paisa, National Bank at 11.202 million closing at Rs90.31 with a gain of 32 paisa, and Oil & Gas Development Company at 11.131 million closing at Rs68.94 with a gain of Rs3.08.


Source: Click here.]]> Sat, 28 Mar 2009 20:35:51 +0000 http://www.urbanpk.com/forums/index.php?/topic/26826-kse-jumps-195-points-on-better-economic-outlook/ http://www.urbanpk.com/forums/index.php?/topic/26678-s-koreas-pedco-signs-coal-mine-deal-with-pakistan/ SEOUL: A South Korean energy development firm has signed an agreement with the Pakistan government for a stake in a coal mine in the Thar desert region, the firm said on Monday.

South Korea’s Pan Energy Development Co (PEDCO), with UAE’s Bin Din Group, had secured the stake in coal blocks in the area, which has about 2.56 billion tonnes of estimated reserves, about 40 times the amount of coal used each year by local generators in South Korea.

The Thar region is reported to have the world’s largest coal reserves of about 100 billion tonnes or more. PEDCO said that the Pakistan government is requesting two coal power plants with 500,000 kilowatts capacity and the firm is closely in talks with state-power monopoly Korea Electric Power Corp. PEDCO expects coal production of 2 million tonnes by 2011 from the blocks, and 10 million tonnes from 2015.


Source: Click here.]]> Tue, 24 Mar 2009 13:46:18 +0000 http://www.urbanpk.com/forums/index.php?/topic/26678-s-koreas-pedco-signs-coal-mine-deal-with-pakistan/ http://www.urbanpk.com/forums/index.php?/topic/26472-tdap-gets-approval-for-developing-12-projects/ By our correspondent

KARACHI: The Trade Development Authority of Pakistan has obtained an approval for developing 12 projects and institutes at a cost of Rs12 billion.

The purpose of these projects is to broaden the export base of the country and promote value addition by upgrading the skills and transfer of technology for export-oriented products and services, TDAP Chief Executive Syed Mohibullah Shah said at a press conference on Saturday.

“It is expected that a fashion college will be functional this year and foundation of a dazzle park in Karachi will be laid while other projects will be completed in five years if conditions remained stable,” he said. It took six months for the TDAP to conduct research to make preparations for the projects. The Export Development Fund Board, in its 54th meeting on Friday, approved these projects, which would be partly funded by the EDF and partly by the Public Sector Development Programme, he said.

Shah said the country has enough capability to increase its exports by 20 per cent each year through value addition. Five products from textile, rice and leather made up 80 per cent of total exports, while 12 products had a share of 19 per cent. All other products showed negligible exports, he said.

Pakistan is the fourth largest producer of cotton, fifth largest producer of milk, sixth largest producer of wheat, 11th largest producer of rice, 16th largest in meat and has fourth largest coal reserves. However, its exports increased 11 per cent annually for 60 years. With new technology and focusing on value addition, Shah said, the country would double its exports in five years. The TDAP will work on development of institutes and machinery that would produce skilled people, who would work for the betterment of the trade. The college of fashion and design in Karachi will award four year separate degrees in five categories of textile, leather, jewellery, furniture and ceramic designing.

The dazzle park would be oriented for commercial and trade oriented products in gems and jewellery. More than 30 per cent fruits damage because of poor post harvesting techniques, in order to bring new technology and knowledge, the TDAP chief said,

two mango houses and cold storage centres would be developed in Multan and Nawabshah.

A date processing institute in Khairpur has also been approved. Exports from dates would be increased by five times through proper processing, said the TDAP chief. Carpet training institutes’ development in Quetta and Hala, expansion and upgradation of Gems and Gemmological Institution of Pakistan, Peshawar, establishment of agro food institute in Lahore, leather technology institute in Lahore, marble technology institutes in Karachi and Peshawar, expo centre in Multan and a packaging institute in Karachi are also part of the TDAP projects.



Source: Click here.]]> Sun, 22 Mar 2009 09:12:50 +0000 http://www.urbanpk.com/forums/index.php?/topic/26472-tdap-gets-approval-for-developing-12-projects/ http://www.urbanpk.com/forums/index.php?/topic/26176-kse-up-313-points-as-govt-defuses-political-tension/ By Saad Hasan

KARACHI: The KSE-100 index rose sharply on Monday after dramatic overnight government overtures to defuse tension with swelling number of opposition activists and lawyers who were marching from different parts of the country to hold a protest in Islamabad.

Shares went up 5.44 per cent to close at 6063.54 points following an early morning national address by Prime Minister Yousuf Raza Gilani wherein he announced that Justice Iftikhar Chaudhry will be reinstated as Chief Justice in a few days.

“Certainly, news of his reinstatement played a role in the price rally,” said Hasnain Asghar Ali, a securities analyst. “But an even significant push came from Finance Adviser Shaukat Tareen’s weekend statement that no new tax will be imposed on the market.”

Though the market has not lost substantial value since the lawyer’s long march started on March 12 in support of judges, overall trading activity remained depressed last week as investors chose to wait and see unfolding events, analysts said.

Out of 403 actively traded shares on Monday, 272 recorded increase in value led by NIB Bank while 123 were in red and eight unchanged. Market turnover jumped over 100pc since last closing on Friday to 210 million shares, suggesting enthusiasm on part of investors, they added.

But for investors an end to the street agitation, said analyst Khuram Shahzad, meant slight improvement in law and order, which has been worsening in the country. “KSE is the most attractive market in the world right now as shares are trading below their actual values,” he said, adding: “Risk factor in Pakistan is too high and probably this is one reason no high hopes should be attached to portfolio investment.”

Interestingly, the stock market does not respond as briskly to political upheavals as it would do to negative economic outlook, argues leading analyst Muhammad Sohail. “More often share prices react to corporate earnings, which are directly related to economic performance of the country,” he said, adding: “Day to day political events doesn’t have any major impact.”

While many blue chips have posted good results, he said, funding for stock purchases was missing from the market. “Banks are reluctant to lend after their recent bad experience when some brokers even defaulted.”

Highest number of 39 million shares were traded in NIB Bank that closed at Rs5.88 with a gain of 99 paisa, followed by Worldcall Telecom at 16 million shares which closed at Rs2.85 with a gain of 66 paisa, Zeal Pak at 12 million closing at 34 paisa with a gain 7 paisa, TRG at 11 million closing at Rs1.71 with a gain of 22 paisa, and PTCL at 9 million closing at Rs15.83 with a gain of Re1.



Source: Click here.]]> Tue, 17 Mar 2009 06:02:23 +0000 http://www.urbanpk.com/forums/index.php?/topic/26176-kse-up-313-points-as-govt-defuses-political-tension/ http://www.urbanpk.com/forums/index.php?/topic/25926-kse-review/
However, late buying, mainly by institutions, supported the market, which closed in the positive zone. Trading volume at ready counter increased to 100.821 million shares as compared to 93.607 million shares traded on Thursday. Market capitalisation increased by Rs 1.413 billion to Rs 1.760 trillion. Out of 336 active scrips, 177 closed in negative and 144 in positive, while the value of 15 remained unchanged.

NIB Bank was the volume leader of the day with 13.672 million shares and gained Re. 0.33 to close at Rs 4.89. In the other units of banking sector, NBP and Bank Al Falah increased by Re. 0.51 and Re. 0.22 to close at Rs 67.00 and Rs 11.64 with 4.174 million shares and 3.713 million shares respectively, however, UBL declined by Rs 1.59 to close at Rs 42.35 with 3.745 million shares.

Jahangir Siddiqui Co gained Re. 0.27 to close at Rs 24.00 with 6.492 million shares. OGDC increased by Re. 0.18 to close at Rs 56.56 with 4.014 million shares. Attock Refinery lost Rs 1.10 to close at Rs 66.70 with 3.920 million shares. Thatta Cement gained Re. 0.48 to close at Rs 14.25 with 3.761 million shares. TRG Pakistan declined by Re. 0.17 to close at Rs 1.49 with 3.653 million shares. Fauji Fertiliser Bin Qasim closed at Rs 16.72, down by Re. 0.09 with 3.354 million shares.

Unilever Pakistan and Nestle Pakistan were the highest gainers and gained Rs 39.99 and Rs 10 to close at Rs 1800.00 and Rs 1034.00 respectively, while Wyeth Pakistan and Siemens Pakistan were the worst losers and lost Rs 86.24 and Rs 40.34 to close at Rs 1638.68 and Rs 766.46, respectively.

Ahsan Mehanti at Shehzad Chamdia Securities said that buying activity continued as expected. Aggressive support by state run funds played catalytic role for a positive close. Retail and institutional investors took position in oil, banks and fertiliser scrips with the expectation of improved future earnings. Record foreign exchange remittances in the first eight months of FY09, expectation of reduction in discount rates and T-bill yields affected investor confidence positively, he added.


Copyright Business Recorder, 2009

Source: Click here.]]> Sat, 14 Mar 2009 02:56:09 +0000 http://www.urbanpk.com/forums/index.php?/topic/25926-kse-review/ http://www.urbanpk.com/forums/index.php?/topic/25683-donors-consortium-to-be-set-up-for-financing-basha-dam/ By Mehtab Haider

ISLAMABAD: The government will establish a consortium of all major multilateral and bilateral donors led by the Asian Development Bank (ADB) before the next budget for arranging $12.1 billion funding for the construction of Diamer-Basha Dam, it is learnt.

The World Bank (WB) may become part of the consortium for the project but it will not assume the driving seat in terms of providing funding for the multibillion dollar Basha Dam. In rupee terms, the cost of Basha Dam has been jacked up to Rs1 trillion as depreciation of rupee against dollar by 30 per cent alone increased its cost by Rs280 billion during the current fiscal year, said the official sources.

“When the rupee stood at 60 against a dollar, the cost of $12.1 billion translated into rupee was Rs720 billion, which was jacked up to around Rs1 trillion when the rupee touched 80 to a dollar,” official sources explained.

“Although, the government has not yet made official request to the World Bank for becoming part of the consortium as it is believed that the multilateral donors are not in competition with each other. When the ADB is on the driving seat the WB will not be involved up to that extent,” official sources, having knowledge about working of the multilateral donors, confirmed while talking to The News on Monday.

When Secretary Economic Affairs Division, Farukh Quayum was contacted for comments, he confirmed that the consortium of donors would be established by April 2009 in order to arrange financing for Diamer Basha Dam.

He said that the Islamic Development Bank (IDB) would also become part of the upcoming consortium for investing into Basha Dam. However, the sources said that it was understood that when the ADB would play major role in the construction of the Basha Dam other donors including the WB might become part of it but it would not play major role because these donors pursued projects in synchronization with each other.

The government, the sources said, is likely to establish donors consortium before the ministerial level meting of Friends of Pakistan in its scheduled meting of April 17, 2009 in Tokyo, enabling the donors to become part of the consortium.

The government is all set to divide Diamer-Basha Dam into two main categories for meeting financing requirements of $12.1 billion.

The tentative project cost of Diamer Basha Dam, the official document states, would be $12.1 billion, with total installed capacity of 4500 MW. There will be 12 units having capacity of 375 MW and the average annual generation of the dam will be 19000 GWH.

The Diamer-Basha Dam project is located on Indus River about 315 km upstream of Tarbela dam, 165 km downstream of Northern Areas capital Gligit and 40 km downstream of Chilas.

On the main dam, the type of the Diamer-Basha Dam will be Roller Compacted Concrete (RCC). The maximum height of the dam will be 270 m (height of its type in the world). On diversion system, there will be 2 number Diversion Tunnel (right side) and 1 number Diversion Tunnel (right side).

Regarding main spillways, there will be 14 gates and the size of gate will be 11.0 x 16.5 m. On the reservoir side, the maximum operating level of Diamer Basha Dam will be EI. 1160 m and minimum operating level of EI.1060 m. The Gross Capacity of the dam will be 9.0 BCM (7.3 Million Acre Feet (MAF). The live capacity of the dam will be 7.9 BCM (6.4 MAF).

Regarding the outlets of the Basha Dam, the technical feasibility illustrates that there will be 7 low level outlets and five sluicing. On sluicing tunnels, the Diamer-Basha Dam will have one right bank (through conversion of one diversion tunnel) and on the left bank there will be one additional tunnel.


Source: Click here.]]> Tue, 10 Mar 2009 12:51:30 +0000 http://www.urbanpk.com/forums/index.php?/topic/25683-donors-consortium-to-be-set-up-for-financing-basha-dam/ http://www.urbanpk.com/forums/index.php?/topic/25603-foreign-firm-to-invest-1bn-in-copper-gold-mining-in-balochistan/ March 8, 2009

ISLAMABAD: The availability of proven 167 million tonnes copper ore reserve in Reko Dik Balochistan have attracted Tethayan Copper Company (TCC), which has decided to launch a mega project and invest over $1 billion by 2010, official sources in the Ministry of Petroleum and Natural Resources told Daily Times here on Saturday.

The mega project would produce 250,000 tonnes of copper annually, thus bringing Pakistan for the first time on the copper-producing map of the world.

The Australian company TCC finalised a feasibility study of the starter project aiming to produce 40,000 tonnes of pure copper with an investment of $200 million. As a result of extensive drilling in the area about 167 million tonnes copper ore reserves have been proved. Field studies to assess social and environmental impact of the project have also been completed. The sources further said that due to large size of the deposit M/s Antofagasta & Barrick Gold have taken over 100 percent Australian shares of the TCC. The new management has decided to launch a mega project with an investment of over $1 billion next year.

By commencement of the mining activities in the area, job opportunities were expected for about 1200 locals of Balochistan, which would help in removing deprivations of the province. Moreover commencement of the project would give impetus to foreign investment in mineral sector of Pakistan, the sources maintained.

As desired by M/s Antafagasta-Barrick Gold, Ministry of Petroleum and Natural Resources is working on the preparation of international mineral agreement to be signed between the company, government of Balochistan and the federal ministry. To solve the issues relating to the exploration/mining of Reko Dik copper-gold deposits on fast track, a high level steering committee has been constituted by the government of Pakistan having representation from all the stakeholders including the government of Balochistan.

Reko Diq is a giant copper and gold project in Chaghi, containing 12.3 million tonnes of copper and 20.9 million ounces of gold in inferred and indicated resources. The copper-gold deposits at Reko Diq were believed to be even bigger than Sarcheshmeh in Iran and Escondida in Chile. The Reko Diq copper deposits, which are in the neighborhood of Saindak copper project, are four times larger in copper ore tonnage than Saindak. The most credible international surveys suggest that Reko Diq was one of the biggest undeveloped copper projects in the world with over 11 billion pounds of copper and nine million ounces of gold.

The sources further said that potential of the country in this sector was widely recognised but the sector is not developed. The government made the development of the mining industry as ‘priority sector’ in various five years plans, but none of these efforts were materialised. Adequate institutional, human, research and development and other relevant infrastructure have been established for improvement of this sector but they remain under-utilised.


Source: Click here.]]> Sun, 08 Mar 2009 19:30:18 +0000 http://www.urbanpk.com/forums/index.php?/topic/25603-foreign-firm-to-invest-1bn-in-copper-gold-mining-in-balochistan/ http://www.urbanpk.com/forums/index.php?/topic/25318-wapda-aims-to-produce-20000mw-hydropower/ By Mansoor Ahmad

LAHORE: The Water and Power Development Authority is on target to increase hydro-electric power generation three times from current 6,500 megawatts to over 20,000MW by 2017 which would bring hydropower generation on a par with thermal electricity.

WAPDA Chairman Shakeel Durrani stated this in an exclusive talk with The News. He said the projects which would be completed during that period included 969MW Neelum-Jhelum project, 4,500MW Diamer-Basha, 4,710MW Bunji and 3,700MW Dasu. Barring Neelum-Jhelum, he added, all these projects would be located on different sites of River Indus. In addition, about 1,000MW would be added to Tarbela by installing new turbines on one of its tunnels.

“It is imperative for Pakistan to exploit its hydro-electric power generation potential as it is the cheapest source of power. WAPDA has speeded up this process which will go a long way in bringing cost of electricity to a reasonable level.”

He hoped hydro-electric generation, if accompanied with expected exploitation of coal potential, would substantially reduce dependence on gas and furnace oil and bring down power generation cost.

“Arranging finances for hydro-electric generation is relatively easy as multilateral agencies give positive signals to hydro-electric projects because they are environment-friendly and commercially viable. Investment in these projects can be recovered in a short period,” he said.

Durrani said financial resources required for $2.1bn Neelum-Jhelum hydropower project had been arranged. WAPDA would generate $1 billion from 10 paisa per unit surcharge on consumers which has been allowed to it for seven years. Besides that, $750 million financing has been promised by the Islamic Development Bank, Kuwait, Saudi Arabia and Abu Dhabi funds and the Organisation of Petroleum Exporting Countries. China would arrange the balance of $448 million in the form of supplier credit.

He said a residential colony and offices for the contractor and consultants of Neelum-Jhelum project were almost complete, adding work on two tunnels had started. “The Chinese are also imparting on-job training for constructing tunnels to Pakistani engineers.”

Durrani said WAPDA would need $11.3 billion for construction of Diamer-Basha dam, including $3.5 billion mark-up which would accumulate during the construction of the project. The amount, he added, would be payable in installments after the dam became operational.

The payments would pose no problem as the dam would generate its own resources. “Actual amount needed to complete the dam is $8 billion.”

The WAPDA chairman said the Asian Development Bank had agreed in principle to be the major financier of the project, adding the Islamic Development Bank and financial institutions in the Middle East had shown interest to provide the balance amount. Pakistan government and WAPDA, he added, would provide funds worth $1 billion for land acquisition, establishment of nine model villages for displaced people and for construction of new highways as some part of the present highway would come under water. Moreover, $3 billion would be arranged as supplier credit.

“The response of financiers of hydro-electric projects is encouraging.”

WAPDA was undertaking one mega hydro-electric project every year, he said, adding work on Neelum-Jhelum project started last year.

Construction work on Basha dam would begin this year while Tarbela extension project would start next year.


Source: Click here.]]> Wed, 04 Mar 2009 09:37:57 +0000 http://www.urbanpk.com/forums/index.php?/topic/25318-wapda-aims-to-produce-20000mw-hydropower/ http://www.urbanpk.com/forums/index.php?/topic/25317-who-is-to-blame-for-the-33-incident/ Wednesday, March 04, 2009
News Analysis

By Amir Mir

LAHORE: While many in Pakistan have already pointed the finger of suspicion at India for masterminding the 3/3 terrorist attacks in Lahore, there were those in the country’s security establishment who suspect the possible involvement of some Jihadi elements from the Punjab in the bloody assault, which clearly has the hallmark of the 26/11 Mumbai terror attacks.

Tuesday’s terror attack is one of the worst strikes on the world of sports since the assault on Israeli athletes at the Munich Olympics in 1972. Although, there wasn’t any official statement from Islamabad blaming India, Interior Adviser Rehman Malik told newsmen in Islamabad he could not rule out a “foreign hand” behind the carnage.

The Foreign Office spokesman in Islamabad refrained from directly blaming India while condemning the attack, saying the assault was perpetrated by the enemies of the Pak-Sri Lankan friendship. However, many of the Pakistani hawks, like the former ISI chief Gen (retd) Hameed Gul, were quick to blame the Indian Research and Analysis Wing (RAW) for staging a tit-for-tat attack to avenge the Mumbai assault, saying India wanted Pakistan to be declared a terrorist state.

However, there were those in the country’s security establishment who describe the attack as a well thought-out plan orchestrated by the Punjabi militants, who had been furious over some recent actions taken by the government in the aftermath of the 26/11 terror attacks in Mumbai, especially the arrest of several leading Jihadi leaders who were set to face a court trial. These elements believe the double-edged blood-spattered attack was aimed at damaging the credibility of the government for such a grave security failure, besides releasing the rising pressure that had mounted over the Jihadi elements in Pakistan after the 26/11 Mumbai attacks.

Sources in the security establishment added the Jihadis might be thinking that the 3/3 attacks would force India to go on the back foot, as had been the case with Islamabad after the Mumbai attacks and the ensuing allegations of a Pakistani hand.

These sources pointed out the attack in Lahore, reportedly conducted by a group of 12 armed men with backpacks, most of whom had beards, bore similarity to those 10 gunmen with backpacks, who had carried out the Mumbai attacks. In the first ever attack of its kind on any visiting cricket team across the world, at least a dozen highly trained masked gunmen who had scattered in three groups, first targeted the bus carrying the team with a rocket launcher (which misfired), then tossed hand grenades (which could not hit the vehicle) and later opened indiscriminate fire, killing seven people including five policemen, and wounding six members of the Sri Lankan squad.

Talking to newsmen in Lahore after the attack, Punjab Governor Salmaan Taseer said: “It was a planned terror attack and these were the same methods and the same sort of people that had hit Mumbai.”

On the other hand, a senior PPP MNA from Sindh Nabeel Gabol has blamed India in so many words for having carried out Tuesday’s attack on the Sri Lankan team. Gabol, while speaking on the Geo television, said: ìThe Lahore incident was a replay of the 26/11 attack and most likely carried out by Indian intelligence agents. I am saying so because of the fact that those investigating the gory incident have already recovered some Indian-made weapons as well as food items from the crime scene.”

In a related development, there were reports that former Inspector General of Punjab Shaukat Javed, who was sent home after the imposition of governor’s rule, had warned the provincial authorities in an official communiquÈ on Jan 22, 2009 that the RAW agents in Pakistan might target the Sri Lankan cricket team during its tour to Pakistan.

But the fact remains that there is no precedence for the Indian intelligence agency having the ability to infiltrate an important urban capital of Pakistan and carrying out such a well-organised and high-profile terrorist attack — that, too, by using a whole group of gunmen.

Sources point out the RAW-sponsored terrorist attacks in Pakistan in the past had been merely confined to bomb blasts of limited nature, which had been carried out through time devices planted by individuals like Sarabjit Singh, who is languishing in a Lahore jail after being condemned to death for killing over a dozen Pakistanis in a series of bomb blasts across the Punjab in 1990.

However, the nature of the Lahore terror attack, which was well-coordinated and carried out by a group of highly-trained gunmen armed with extremely sophisticated explosives, seems reminiscent of the Mumbai attacks, which has sparked fresh concerns that Pakistan, already wrecked by the Taliban and al-Qaeda-linked militant violence, might be imploding. The bloody assault has come as a huge setback to the government in Islamabad as it has confirmed fears of the international community that Pakistan is one of the most dangerous places on Earth today.


Source: Click here.]]> Wed, 04 Mar 2009 09:36:15 +0000 http://www.urbanpk.com/forums/index.php?/topic/25317-who-is-to-blame-for-the-33-incident/ http://www.urbanpk.com/forums/index.php?/topic/25162-economy-on-way-to-revival-ishrat/ By our correspondent

KARACHI: Former Governor State Bank of Pakistan and Dean and Director Institute of Business Administration, Dr Ishrat Hussain has said that Pakistan is now on moving towards economic revival as recent indicators have shown easing of the crisis that the country was facing.

Pakistan France Business Alliance, the representative forum of Pakistani and French companies, organised the 5th Pakistan-France Trade Performance Awards 2006-07 to recognise and honour leading Pakistani manufacturers and exporters and importers from France here on Friday night.

Hussain said that the economic crisis in Pakistan was not due to the global recession instead it was the steep rise in inflation that had crippled the nation.

He further voiced that rising oil prices had fuelled the inflation in the country. A single barrel had risen from $50 to $150 threatening the country with hyperinflation.

The dean stated that the financial situation of Pakistan was far worst than 70s and 80s and the IMF aid was essential to control the dwindling economy. He further held that even on the international front, the global economy’s GDP this year was the worst in recent history.

Hussain in the presence of the Ambassador of France to Pakistan Daniel Jouanneau, gave away the trophies to the following: In the bedware export category, the 1st prize went to Mohammad Farooq Textile Mills for the 5th consecutive time and 2nd prize to Gul Ahmed Textile Mills. In fabric export 1st prize went to Naveena Industries and 2nd prize was given to Daiko Enterprises, Sialkot.

In garment export category 1st prize was given to Penna Overseas Corporation Sialkot and 2nd prize was awarded to Naveena Industries. In textile buying agents category Gia Export Marketing Services was awarded the 1st prize.

In surgical instruments 1st prize was given to Durrani and Company Sialkot and 2nd prize was warded to Elmed Instruments Sialkot. In leather garments category 1st prize was given to Mahr Garments Sialkot and 2nd prize was given to Nova Leathers.

In the imports category, a number of awards were given to two top winners. In the information technology sector, the 1st prize was awarded to Infotel. In Oil & Gas category 1st prize was given to Total Lubricants Pakistan and 2nd prize was given to Mas Associates, Lahore. In engineering category 1st prize was given to Greaves International and 2nd prize was given to Areva T&D Pakistan.


Source: Click here.]]> Sun, 01 Mar 2009 09:24:14 +0000 http://www.urbanpk.com/forums/index.php?/topic/25162-economy-on-way-to-revival-ishrat/ http://www.urbanpk.com/forums/index.php?/topic/25112-nit-announces-rs1-6bn-net-profit/ By our correspondent

KARACHI: The National Investment Trust (NIT) has announced a net profit of Rs1,619 million for the half year ended on December 31, 2009.

The break-up of total profits in NIT traditional way is Rs877 million earned form Letter of Comfort Fund (LOC-Fund) and Rs742 million capitalized from non-Letter of Comfort Fund (non-LOC-Fund).

During the half year of fiscal year 2009, Non LOC Fund of NIT has outperformed the benchmark of KSE-100 Index by a reasonable margin of 1.2 per cent where Net Asset Value of its units declined by 51.1 per Cent from Rs46.38 as on June 30, 2008 (Ex-Dividend) to Rs22.69 as on December 31, 2008 against the decline of 52.3 per cent in KSE-100 index during the same period.

Likewise, LOC Fund of NIT has outperformed the benchmark of KSE -100 index by a slight margin of 0.3 per cent where Net Asset Value of its units declined by 52 per cent from Rs45.73 as on June 30, 2008 (Ex-Dividend) to Rs21.94 as December 31, 2008.

Referring to the half yearly results the Chairman NIT Tariq Khan stated that Non-LOC Fund has registered a growth of 2.3 per cent in dividend income which increased to Rs1,017 million earned by the Fund during the under review period from Rs994 million earned during the corresponding period of last year.

“This reflects that the ongoing strategy of the Trust to restructure its portfolio is yielding good results,” said Khan in a press statement.

During the half year under review, NIT - LOC Fund earned a dividend income of Rs799 million, according to the statement.

It may be noted that during July-December 2009, events like global financial crisis and their impact on domestic economy, freezing of KSE-100 index on August 27, 2008 at the level of 9,144 till December 15, 2008 hit the market hard and reduced the volumes to historic low level. Despite all the volatilities which range bounded the trading activities at local bourses, NIT has realized a Capital gains of Rs29 million & Rs28 million relating to LOC Fund & Non-LOC Fund, respectively, against consolidated gains of Rs476 million in the comparable period of last year.

Net profits earned by the Funds translate into earning per unit at Rs0.93 for LOC Fund and Rs0.78 for Non-LOC Fund despite the fact that the stock market has witnessed unprecedented bearish spell during this period. “It may be necessary to mention here that if impairment loss in shares held for trading is accounted for then it would present a per unit loss of Rs0.19 in half yearly accounts of Loc Holders’ Fund and Rs2.41 in Non-LOC Holders’ Funds,” the statement said.

In spite of economic meltdown and its effect on mutual fund industry, sale of NIT units of Non-LOC Funds stood at Rs2,421 million during July-December 2008.



Source: Click here.]]> Sat, 28 Feb 2009 09:38:32 +0000 http://www.urbanpk.com/forums/index.php?/topic/25112-nit-announces-rs1-6bn-net-profit/ http://www.urbanpk.com/forums/index.php?/topic/25003-idb-to-recommend-funds-for-power-project/ By our correspondent

LAHORE: Islamic Development Bank Country Director Farrukh Mahmood has said the bank’s technical mission will recommend to its board and other Middle Eastern donors to provide funds of around $458 million for 969-megawatt Neelum-Jhelum hydroelectric project.

He stated this during a wrap-up meeting at the WAPDA House here on Wednesday. A four-member IDB technical mission is visiting Pakistan for finalising technical and financial details, various financing options and the extent and mechanism for funding the Neelum-Jhelum hydroelectric project.

WAPDA Member (Water) Syed Raghib Abbas Shah, while welcoming the IDB for taking an initiative to help Pakistan in hydropower development, especially the construction of Neelum-Jhelum project, requested the bank to come forward and provide funds for Diamer-Basha dam also.

Briefing the delegation about the project, he said besides generating 4,500 MW low-cost hydel electricity and storing 8.1 million acre feet of water, the Diamer-Basha dam, when completed, would also help enhance the life of Tarbela reservoir by another 35 years and generate additional 1.1 billion units of electricity from existing Tarbela Power House.

Dilating upon the current status of Diamer-Basha dam, the member (water) said evaluation process for pre-qualification of contractors for lot one, two and three was under way and would be completed in March.

After the approval of PC-I amounting to Rs60bn for resettlement by the Executive Committee of National Economic Council in November last, land acquisition for construction of the project had already started, he added.



Source: Click here.]]> Thu, 26 Feb 2009 11:21:18 +0000 http://www.urbanpk.com/forums/index.php?/topic/25003-idb-to-recommend-funds-for-power-project/ http://www.urbanpk.com/forums/index.php?/topic/24772-4-28mmcfd-gas-discovered-at-qadirpur-deep-well/ ISLAMABAD: Oil and Gas Development Company Limited (OGDCL) has discovered 4.28 million cubic feet of gas per day from its exploratory well at Qadirpur in district Ghotki of Sindh.

According to a company spokesman here on Friday, the deep well was drilled to a total depth of 4,703 meters. Based on electric, geological and drilling data, production testing was carried out to test the potential of the well, he added.

He said a total of five Drill Stem Tests (DSTs) were conducted, out of which three were conducted in Sembar formation and two in Lower Goru formation.

Out of these five DSTs, only one in Sembar formation was productive which produced 4.28 million cubic feet per day of gas at well head flowing pressure of 770 Psi on 32/64” choke, he said.

It may be mentioned here that after assuming charge, Advisor to Prime Minister on Petroleum and Natural Resources, Dr Asim Hussain had directed OGDCL to expedite exploration activities to double oil and gas production in the next 16 months.

He had directed to start work on Kunar, Pasakhi, Tando Allah Yar and Sinjhoro development projects on fast track basis and complete them within the stipulated time.

Officials of the company were asked to double gas production with a competitive mechanism and also bring a significant increase in oil production aimed at generating investment for the company and the national exchequer.

Dr Asim had also directed to complete Qadirpur Expansion Project to enhance the capacity of 100 mmcfd gas by March-April, for which eight new wells were in the process of drilling at Qadirpur.

“The present success is a result of the efforts being made to increase production as desired by the advisor,” he added. He said that present gas production is 4 billion cubic feet per day (bcfd) against the demand of 9-10 bcfd.


Source: Click here.]]> Sat, 21 Feb 2009 21:00:25 +0000 http://www.urbanpk.com/forums/index.php?/topic/24772-4-28mmcfd-gas-discovered-at-qadirpur-deep-well/ http://www.urbanpk.com/forums/index.php?/topic/24650-pakistan-clears-517m-eurobond-payment/ By Mehtab Haider

ISLAMABAD: Pakistan has paid back $517 million to investors of Eurobond on its due maturity date of Feb 18, 2009, indicating Islamabad’s ability to meet its external liabilities without fear of default after obtaining $7.6 billion loan package from the International Monetary Fund (IMF), a senior official of government confirmed on Wednesday night.

Pakistan had launched Eurobond $500 million in Feb 2004 during the Musharraf regime.

After maturity of five years, the Eurobond payment including its principle amount of $500 million was due on Wednesday and Islamabad successfully fulfilled this obligations.

“We have paid back Eurobond payments including its principle amount and interest worth $517 million to its subscribers on Wednesday,” State Bank of Pakistan’s spokesman, Syed Wassimussin confirmed while talking to this scribe here on Wednesday.

The Detusche Bank out of three Lead Managers appointed by Islamabad for Eurobond deal was the agent for making payments to subscribers of this paper. “Yes we received letter from the Economic Affairs Division (EAD) for making payments to Eurobond subscribers and we transferred the amount of $517 million into the accounts of our Agent bank for this deal,” official sources also confirmed on Wednesday night.

Before getting $7.6 billion loan package from the International Monetary Fund (IMF) on November 2008, there was risk of default because of rapidly depleting foreign currency reserves.

The foreign currency reserves held by the central had fallen around $3 billion.

“Now our foreign currency reserves are over $10.2 billion and there is no problem for making this substantial repayment,” the spokesman of the central bank further said.

Pakistani officials and the IMF authorities are currently holding talks in Dubai to qualify for the second tranche worth $775 million of $7.6 billon programme approved in November 2008 to save the country from a default on external payments.

Pakistan is also set to seek additional $4.5 billion from the IMF, jacking up the loan amount from $7.6 billion to $12.1 billion in a bid to improve its foreign currency reserves.

The government should make efforts to generate more revenues as well as curtail expenditures side rather than seeking more foreign inflows, said an independent economist and added that the debt sustainability would become a major issue if Islamabad continued to get foreign loans without well thought out strategy.

The 23-month stand-by loan gave Islamabad $3.1 billion immediately and the rest of the money is to be phased in over the course of the period if Islamabad manages to fulfil IMF’s envisioned targets of reducing the deficit and State Bank of Pakistan’s financing of the government, among other tight fiscal and monetary measures.



Source: Click here.]]> Thu, 19 Feb 2009 10:10:55 +0000 http://www.urbanpk.com/forums/index.php?/topic/24650-pakistan-clears-517m-eurobond-payment/ http://www.urbanpk.com/forums/index.php?/topic/24513-taliban-announce-10-day-ceasefire-in-swat-tsnm-and-government-agree-on-sharia-regulations/
A formal agreement is likely to be announced on Monday, Ezat Khan, the TSNM spokesman told reporters after the talks in the town of Timargarah in Dir district. A TSNM delegation will visit Swat valley to convince the militants, engaged in fierce battle, to stop fighting and give an opportunity to the dialogue process. "We are announcing a 10-day cease-fire," Muslim Khan, spokesman for the Swat Taliban said.

Khan said that Taliban would fire in self-defence if the security forces did not stop fighting. A three-member delegation of the provincial government called on Sofi Muhammad and discussed the demands for the introduction of Islamic judicial system, known as 'Nizam Adal' regulations.

AFP adds: Militants battling for Islamic law in Swat valley could sign a peace deal on Monday, a government official and a pro-Taliban cleric said.

The NWFP government earlier held a final round of talks with a militant leader, Soofi Mohammad, on enforcement of Sharia law in Swat and Malakand districts, provincial information minister Mian Iftikhar Hussain told AFP. "The talks were very positive and the people of Swat will hear good news soon," he said.

Soofi Mohammad, a pro-Taliban cleric, whose son-in-law, Maulana Fazlullah is waging a violent campaign for tough Sharia law in the region, said talks on a draft agreement had been successful and an agreement could be signed on Monday.

"We had been holding negotiations with the government on a 22-point charter of demands for quite some time. There were differences on five points which have been removed in a meeting on Sunday," said Mohammad, founder of the Sharia movement.

The minister said provincial chief minister Amir Haider Hoti has convened a meeting of political and religious leaders and tribal elders in Peshawar on Monday and if a consensus is reached he will reveal details at a press conference later. He gave no details beyond saying that the talks focused on establishing an Islamic system of justice in the troubled region.

Taliban spokesman Muslim Khan said militants would observe a 10-day cease-fire as a "goodwill gesture". The cease-fire could be declared permanent if the accord is signed on Monday, he said.


Copyright News Network International, 2009



Copyright Agence France-Presse, 2009

Source: Click here.]]> Mon, 16 Feb 2009 12:48:59 +0000 http://www.urbanpk.com/forums/index.php?/topic/24513-taliban-announce-10-day-ceasefire-in-swat-tsnm-and-government-agree-on-sharia-regulations/ http://www.urbanpk.com/forums/index.php?/topic/24512-cfs-investment-increases-by-40-percent/ KARACHI (February 16 2009): Investment under Continuous Funding System (CFS) at Karachi share market during the week ended on February 14 increased by 40.96 percent to Rs 706 million. "The unreleased CFS investment on Friday was 37 percent higher than previous week showing increased investor interest in the market as a result of the relaxation provided by SECP", an analyst said.

The CFS rates increased by 25bps to 19.44 percent from previous week's 19.2 percent. The top 5 scrips by CFS investment were OGDC, MCB, NBP, BAFL and POL, cumulative accounting for 62 percent of the total CFS investment.


Source: Click here.]]> Mon, 16 Feb 2009 12:42:59 +0000 http://www.urbanpk.com/forums/index.php?/topic/24512-cfs-investment-increases-by-40-percent/ http://www.urbanpk.com/forums/index.php?/topic/24354-spending-on-development-projects/ By Mehtab Haider

ISLAMABAD: A mid-year review of the first half of the ongoing fiscal 2008-09 reveals that the spending on development projects nosedived to Rs65 billion including foreign aid, resulting in cost overrun in almost all 1900 projects with only a few exceptions, it is learnt reliably.

The most affected sectors include Higher Education Commission (HEC) as depreciation of rupee against dollar increased the miseries of PhD scholars, who are currently studying in universities abroad. The funds scarcity also resulted in closing down construction of nine universities, no funds for sending fresh scholars abroad, creating financial difficulties for universities even for paying salaries to their staff.

“We are trying to protect the allocation of those few strategic projects which are crucial for us,” a high-level official in the Planning Commission said on Wednesday and added that the development activities actually halted in almost all projects underway in the country with the few selected exceptions.

Against the projections of releasing Rs150 to Rs185 billion in the first six months of 2008-09 compared to an overall allocation of the PSDP at the federal level of Rs371 billion, the government tightened its releases and curtailed it at Rs65 billion including the foreign aid of Rs12 billion in a bid to scale down the fiscal deficit within the agreed limit of the International Monetary Fund (IMF).

There is no possibility of expecting a spending of the entire allocated amount of Rs371 billion by the end of June 2009. According to conservative estimates, it may hardly touch Rs150 billion in the whole financial year and at the maximum, it can go up to Rs175 billion.

Against spending of Rs118 billion during the first six months of the previous fiscal year 2007-08, the spending on Public Sector Development Programme (PSDP) related projects reduced to only Rs65 billion. The spending on PSDP projects stood at Rs88 billion in FY 2006-07. It shows that the development spending nosedived to the lowest compared to last five to six years.

Ministry of Finance cut down releases and only provided Rs53 billion to ministries/division and attached departments in the first six months of the current financial year. The foreign component contributed in PSDP related projects consumed Rs12 billion in the first half of the ongoing financial year.

According to the Ministry of Finance’s viewpoint, the ministries/divisions put around Rs400 billion into the accounts of the banks which are lying unutilised, and hence, they should spend that amount first and then seek further funding from the government.

According to the mid year review of the economy, the government successfully demonstrated achieving its fiscal deficit target at 1.9 per cent of the GDP against the envisaged target of 2.1 per cent of the GDP for July-December period of 2008-09.

The numbers of projects falling in the PSDP were on the rise after each passing year as there were 950 development schemes in FY 2003-04 with Rs86 billion as federal shares in the PSDP.

This amount jacked up to Rs148 billion with the number of projects touching 1,279 in FY 2004-05 while the number reached 1,503 with allocated money at Rs204 billion in FY 2005-06. In 2007-08 fiscal years the PSDP share at the federal level touched the Rs270 billion mark with 1,922 projects.

The number of projects was reduced to around 1900 for the current fiscal year 2008-09. The Finance Ministry high-ups argue that the number of projects should be reduced to less than 1000, as the previous regime started politically motivated projects without keeping in view the development requirements of the country.

The previous government, the official said, made all out efforts to please the Musharraf-Aziz regime that the PSDP was increasing projects and that around Rs100 billion was added to the list every year during the last five years.

On the other hand, an exercise is underway to abolish hundreds of development projects from the list of the PSDP and now the Planning Commission high-ups are awaiting approval from Prime Minister Syed Yousuf Raza Gilani to delete projects.



Source: Click here.]]> Thu, 12 Feb 2009 14:35:19 +0000 http://www.urbanpk.com/forums/index.php?/topic/24354-spending-on-development-projects/ http://www.urbanpk.com/forums/index.php?/topic/24169-kse-ends-week-4pc-higher-as-corporate-results-attract-investors/ By Salman Siddiqui

KARACHI: The corporate results announcement season for the period ended last December and the appearance of a number of investment-friendly news this week kept the Karachi bourse rising up.

The benchmark KSE 100-share Index again crossed the 5,500 points level that was a major milestone of this week, as the market had dipped to 4,815.34 points five years low on Jan 26, 2009.

With the surge of 220.02 points or 4.09 per cent of this week, the KSE 100-share Index scaled up to 5,597.44 points.

The market has regained 782.10 points or 16.24 per cent in the last two consecutive weeks. Prior to this, market had declined by 66 per cent to Jan 26 position since April 18, 2008 all time high closing of 15,676 points.

The KSE 30-share Index, which is heavily dominated by banking stocks, soared by another 438.97 points or 8.44 per cent and closed at 5,634.78 points.

The banking, insurance and energy stocks were very much prominent in placing the market on high side, as stocks enjoying heavy weightage on indices from these sectors are to announce their corporate results next week.

The banks remained in the limelight this week shored by Force Sale Value (FSV) relaxation and the reports that banks may be allowed to spread investment impairment losses over two years rather than take a one time earnings hit.

Meanwhile, banking spreads also increased by 12bps MoM averaging at 7.75 per cent in December, observed Gul-e-Zehra Jafri at KASB Securities.

“We believe that further corporate results announcement would take the centre stage in shaping the market behaviour in the upcoming week. Among the major companies, MCB, NRL and ICI are scheduled to announce results during next week,” she added.

Atif Zafar at JS Research says: “After impressive showing by the fertilizer sector depicting an increase of 24 per cent in profitability, market is looking forward towards corporate result announcements in the upcoming weeks with positive expectations. Next week, two major companies NRL and MCB will be announcing their December end results.”

Selling pressure from offshore investors also declined over the week as foreigners bought shares worth $8 million and sold $21.1 million, resulting in net selling of US$13.1 million in the outgoing week, he said and added, net selling by offshore investors during the outgoing week was considerably lower than the previous two week’s total of US$87.3 million. As a result, net selling post lifting of the price floor has now reached US$180 million.

Average daily volumes in the ready market stood at 177 million shares versus 180.7 million shares depicting a decrease of just two per cent on week-on-week basis. On the CFS counter, limited activity was witnessed. CFS investment ended the weekend at Rs507 million with average annualized rate of 19.2 per cent, JS Research calculated.

An inflow of Rs64 billion was recorded in the overall market capitalisation that improved to Rs1,764 billion by the weekend.

The maintaining of Discount Rate (DR) at 15 per cent by the central bank for the next quarter was in somehow line with the market expectation, as some quarters were expecting a fractional cut in DR as economic variables have started fixing in the right direction, said Ahsan Mehanti at Shahzad Chamdia.

He maintained that if economy continues to grow in the right direction then the chances of notable cut in DR was expected in the monetary policy announcement for the last quarter of fiscal year 2009.

Therefore, high expectation of receiving smart payouts in the week ahead and investment made by NIT-State Enterprise Fund helped market bringing out from prolonged depression, he added.

Arif Habib Securities, EFU General Insurance, MCB Bank, Allied Bank and Habib Bank were major gainers while Standard Chartered Bank, EFU Life Assurance, JS Global Capital, Indus Motor and WorldCall Telecom were major losers at the KSE this week, according to KASB Securities.


Source: Click here.]]> Sun, 08 Feb 2009 20:01:30 +0000 http://www.urbanpk.com/forums/index.php?/topic/24169-kse-ends-week-4pc-higher-as-corporate-results-attract-investors/ http://www.urbanpk.com/forums/index.php?/topic/24099-adb-lends-300m-for-water-sanitation-in-sindh/ By Mehtab Haider

ISLAMABAD: The Asian Development Bank (ADB) and Pakistan on Friday signed a $300 million loan agreement for making improvement in water and sanitation services for second-tier cities of Sindh.

Over the next 10 years, the financing facility would be provided in various installments to improve basic urban services for nearly four million people across about 20 towns in Sindh. First tranche worth $38 million of the facility was disbursed on Friday.

Under the initiative, public-private partnership mechanism will be promoted for improving service delivery in second-tier cities of Sindh, the second largest populated province.

“The ADB plans to approve $1.5 billion for various projects in Pakistan during calendar year 2009 against disbursement of $1.87 billion in 2008,” ADB’s Country Director Rune Stroem said while replying to various questions of journalists after the signing ceremony here.

Economic Affairs Division Secretary Farrakh Qayyum and Rune Stroem signed the agreement for the Sindh Cities Improvement Investment Programme (SCIP).

The ADB director stressed the need for improving social service delivery by enhancing transparency. Sindh’s Additional Secretary Nazar Mohammad told reporters the provision of services was on the decline, sending more people into the clutches of poverty.

EAD Secretary Farrakh Qayyum told reporters the Sindh government would pay back the loan in rupees and the Centre would be responsible for payment in dollars. “Payment of external debt and liabilities is the responsibility of the federal government but their rupee component will be provided by Sindh,” he said.

To a query about complaints by provinces that the Centre was overcharging on loans, the EAD secretary said re-lending policy was being devised in consultation with the federating units and the new policy would be tabled before the Economic Coordination Committee (ECC) for final approval within two to three weeks.

According to the ADB, an estimated 570,000 households in targeted cities will directly benefit from the investment programme. The multi-tranche financing facility will provide funds for physical investment in water supply, waste water and solid waste management infrastructure, including piped water supply networks targeting potable water, covered drains, sewage treatment, waste collection vehicles and sanitary landfills.

A $2.5 million technical grant will support increased efficiency and accountability of the first urban service corporation. The programme will also support Sindh in establishing a provincial focal point for urban sector management reforms.

“The investment will help the provincial government cope with mounting challenges to provision of basic urban services to an estimated four million residents of Sindh’s secondary cities over the next several years,” said Rune Stroem.

The first tranche of $38 million will focus on institutional change and priority infrastructure in northern Sindh cities of Sukkur, New Sukkur, Rohri, Khairpur, Shikarpur and Larkana.

Sindh is faced with rising population growth, a severe deficit in basic urban infrastructure and services and growing urban poverty. The core challenge that Sindh cities face is inadequate basic services like water supply, waste water and solid waste management. Limited access to and poor quality of water, together with poor sanitation, spread diseases and cause chronic illnesses such as diarrhea, especially among children.

The programme introduces local government-organised urban services corporations, staffed by professional managers and skilled technicians and tasked with water supply, waste water and solid waste management services. This approach is innovative as it brings together key elements necessary to improve service delivery, clear roles and responsibilities, skilled people including private sector expertise, performance incentives and increased accountability.

The first of these local-government organised corporations is the Sukkur-based North Sindh Urban Services Corporation Limited, incorporated in November 2008.


Source: Click here.]]> Sat, 07 Feb 2009 10:01:02 +0000 http://www.urbanpk.com/forums/index.php?/topic/24099-adb-lends-300m-for-water-sanitation-in-sindh/ http://www.urbanpk.com/forums/index.php?/topic/24026-mild-steel-bar-prices-touch-rs-57000-per-tonne/ KARACHI (February 06 2009): Prices of mild steel bar (sariya) have shot up by Rs 8,000 per tonne due to the shortage of raw material in the domestic market, traders said. They blamed black-marketing for this price rise by the country's largest steel producer-Pakistan Steel, saying it has contrived to cause shortage of billets in the market, making the steel bar costlier.

Consequently, the price of mild steel bar a basic input of construction industry, is rising gradually in the local market, although prices of billet are stable, they added. The price of steel bar made by billet has surged by some Rs 8,000 per tonne to Rs 57,000 per tonne as compared to Rs 49,000 per tonne previously, traders informed Business Recorder.

The price of scrape steel bar has increased by Rs 7,000 per tonne to Rs 55,000-55,500 per tonne from Rs 48,500 per tonne in the domestic market. They said on the last working day mild steel trading was at its peak in the Moin steel market, the city's largest steel market, because of reports of the rise in prices of the mild steel. However, in the evening trading came to a halt, after the announcement of new mild steel bar prices by the rolling mills, they said.

The rising prices of steel bar could further hurt the construction activity, which is already declining due to the economic slowdown, they added. "PS is not properly distributing the billets to the rolling mills, while scrape prices also have shot up sharply and both factors contributed in creating shortage of the raw material in the domestic market," said an owner of re-rolling mill.

He said that since it is impossible for re-rolling mills to sell the commodity at the existing price, they have increased the price. In future, if shortage of raw material increased further mild steel prices would also go up. The country's demand for billets is around 500,000 tonnes annually, of which some 250,000 tonnes are produced by PS, while the remaining gap is met through imports from Russia, South Africa, Ukraine and Egypt.


Source: Click here.]]> Fri, 06 Feb 2009 08:57:18 +0000 http://www.urbanpk.com/forums/index.php?/topic/24026-mild-steel-bar-prices-touch-rs-57000-per-tonne/ http://www.urbanpk.com/forums/index.php?/topic/23898-uae-gifts-320-mw-power-plant-to-pakistan/
DUBAI: The United Arab Emirates on Wednesday inked a Memorandum of Understanding (MoU) to hand over a 320 MW gas-fired power plant to Pakistan to help meet its immediate energy needs.

The signing ceremony was witnessed by President Asif Ali Zardari who was here on a private visit.

Minister for Water and Power, Raja Pervez Ashraf inked the agreement with his counterpart from UAE Sheikh Dhiyab bin Zayed Al Nahyan, who is also the chairman of the Abu Dhabi Electricity and Water Authority (ADEWA).

President of UAE Shaikh Khalifa bin Zayed Al Nahyan in his meeting with President Asif Ali Zardari in November last year offered the power plant to Pakistan as a gift, keeping in view the serious energy shortage the country was facing.

The plant comprises 13 units, five of 16 MW capacity and 8 of 30 MW to produce 320 MW of power and the UAE government will pay for the dismantling, packing and shifting of the plant to Pakistan.

Pakistan and UAE enjoy wide ranging ties and their leaders frequently interact to further strengthen their wide-ranging relations. The two leaders in their several meetings have agreed to enhance cooperation in all fields and open new avenues for mutual cooperation and partnership in different sectors.

After the signing ceremony President Zardari said the gift of the power plant was a goodwill gesture of UAE for the people of Pakistan and said it would greatly help Pakistan in meetings its energy needs.

He said that the people of Pakistan will always remember this precious gift and termed it a symbol of love and sincerity from the people and government of UAE.

He said that the Pak-UAE relations will further boost and both the brotherly countries will help each other in energy sector in the near future.


Source: Click here.]]> Wed, 04 Feb 2009 12:15:50 +0000 http://www.urbanpk.com/forums/index.php?/topic/23898-uae-gifts-320-mw-power-plant-to-pakistan/ http://www.urbanpk.com/forums/index.php?/topic/23809-lpg-pricing-system-comes-under-fire/ By Mushtaq Ghumman


ISLAMABAD: The fixation of liquefied petroleum gas (LPG) price on the model of Saudi Aramco Contract Price (CP) is being criticised by some of the industry's stakeholders who feel that they are not being treated fairly by the policy makers.

"Whether it is the CP policy or proposals to impose 'PDL' on local producers, or to exempt imports from LPG, the main intention behind the idea is to force the local producers to set the prices at artificially high rates to facilitate imports," said one of the stakeholders while talking to Business Recorder. The Economic Co-ordination Committee (ECC) of the Cabinet, in one of its recent meeting had directed the Petroleum Ministry to call a meeting to finalise new LPG pricing formula, and submit it again for consideration.

Official sources told Business Recorder that the ministry has yet to finalise the formula as the Advisor to Prime Minister was busy in giving final touches to the petroleum policy and meeting with the exploration and production (E&P) companies.

Under the Deregulation Order 2000, issued a month ahead of commissioning of Parco's refinery, the GoP deregulated the LPG sector, leaving the pricing process between the buyer and seller, based on market factors and with no GoP involvement.

Deregulation led to an investment of over $300 million in the LPG sector, creation of over 30,000 jobs, and strong competition. There are 70 LPG marketing companies licensed by the Oil and Gas Regulatory Authority (Ogra), with another 70 reportedly coming up.

In January 2007, Shaukat Aziz had imposed so-called 'import parity pricing mechanism' by forcing the local LPG producers to sell LPG at Saudi Arabian export price. The policy was defended by the then Secretary Petroleum Ahmad Waqar on following grounds: (i) policy would cater to 'latent demand', leading to imports of 4,000 tons per day (in a country where local production is 1,400 tons per day, and demand is highly seasonal and price-sensitive); (ii) policy would lead to lower and stable prices by crowding out 'middlemen'.

From January through November 2007, Ogra notified the Saudi Aramco Contract Price (CP) to all producers. Under the policy, the CP was the upper limit, but because of Ogra notifications, the CP became the enforceable price each month (the then OGDC MD Arshad Nassar said price LPG below the Ogra-notified price would mean inviting NAB action).

Aziz also ordered that customs duty be waived on imported LPG, and that no income tax be payable at the import stage. The CP policy led to an increase of 60 percent in prices across the LPG value-chain, dropping demand and roiling the industry. He said that OGDC and Parco and other producers were forced into giving discounts because consumers resisted international prices and had more affordable alternative fuels available to them.

Total LPG availability in Pakistan increased, by 0.25 percent. In calendar year 2006, when the CP policy was not in place, Pakistan had imported 46,000 tons LPG. In calendar year 2007, when the CP policy was in place, Pakistan imported only 47,000 tons LPG, which meant that the policy was a failure--by any measure.

In December 2007, the ECC directed Ogra not to notify prices to producers. The CP cap for producers is prevalent till today and there is no bar on anyone from importing LPG into Pakistan, and two LPG marketing companies and an LPG producer have imported 8,000 tons LPG during January alone.

There are reports that the government is being pushed to go further than Aziz by forcing local producers to sell product at CP plus $150 per ton, using the same specious arguments as used previously.


Source: Click here.]]> Mon, 02 Feb 2009 18:30:05 +0000 http://www.urbanpk.com/forums/index.php?/topic/23809-lpg-pricing-system-comes-under-fire/ http://www.urbanpk.com/forums/index.php?/topic/23745-kpt-to-become-worlds-first-port/
KARACHI: Karachi Port will become the first port of the world to have a draft of 18 meters allowing cargo ships of over 100,000DWT to berth here by the year 2013.

In this regard, work on deep water container terminal at China Waters starts next month and will be completed in four years at a total cost of Rs19 billion.

This was disclosed by Federal Minister for Ports and Shipping Babar Ghauri while speaking at his first press conference.

Federal Secretary Ports and Shipping Mohammed Saleem Khan, Chairperson KPT Nasreen Haq besides Chairmen of Port Qasim and Port Gwadar, PNSC, DG Ports and Shipping and other senior officers were also present on the occasion. The minister pointed out that at present the draft at the port is 14.5 meters while many world ports have draft of 16-17 meteres. He said Deep Water Container Terminal will have a draft of 16 meteres in the first phase and further deepened to 18 meters in the second phase.

Ghauri, who earlier held a meeting with Chairmen of three ports and related senior officials, said he wants work to overcome Pakistan’s existing economic crisis and gave them required guidelines in this regard.

Referring to Gwadar Port, the minister said it still does not have road and rail linkages and he is going to tell the road and rail sector organizations to provide these linkages so that “our businessmen could import their goods through this port.” He said so far 12 ships with imported urea anchored at Gwadar Port and 10 of them have been offloaded. He said effort is being made to import wheat from this port.

He told journalists about his meeting with Balochistan chief minister and said the government would address their reservations. He said Balochistan bristles with its right over this port and reservations of the community there too would be addressed.

As regards the future projects, Babar Ghauri informed that work will be taken in hand on Port Tower and Diamond Island City while the city government will construct park at Boat Basin.

To a question, he said talks will be held with the Sindh government on Diamond Island City project. He said “it is in our manifesto that ports should be under the control of provinces.” In a response to another question the minister said plans are afoot to purchase one oil tanker and three cargo ships for PNSC. He said the work has been taken in hand for further modernization of country’s ports in view of changing conditions.


Source: Click here.]]> Sun, 01 Feb 2009 10:47:13 +0000 http://www.urbanpk.com/forums/index.php?/topic/23745-kpt-to-become-worlds-first-port/ http://www.urbanpk.com/forums/index.php?/topic/23744-psic-approves-rs1-7bn-budget-at-first-board-meeting/ By Jawwad Rizvi

LAHORE: The newly constituted Board of Punjab Small Industries Corporation (PSIC) approved a budget of Rs1,774.70 million for the year 2008-09 in its first meeting held here on Saturday.

The board approved the budget after seven months of the current fiscal year as there was no board prior due to the election year. Punjab Chief Minister Shahbaz Sharif after taking charge of the province appointed industrialist Yawar Irfan Khan as Chairman of the PSIC board.

The board meeting was attended by famous industrialists Kamal Manoo, Shahzad Malik, Dr Shella Javed Akram, Punjab Minister for Prison Ch Abdul Ghafoor and officials of the Punjab finance and industry departments.

The meeting approved Rs129.13 million development budget and Rs483.56 million non-development budget. It said that the PSIC had curtailed its non-development budget by 17 per cent.

In the meeting, every board member gave proposals to improve the image of the PSIC and make it a fruitful and result-oriented institution. The meeting also decided to hold Punjab Expo this year for the promotion of industrial products of the province.

Similarly, it also decided the PSIC would establish its counters for the promotion of handicrafts at overseas offices of Pakistan. It approved construction of an eight-storey PSIC House at Davis Road. The PSIC house will be established over an area of 8,700 square feet at the existing PSIC handicraft shop.

The meeting mentioned that a tender was given to NESAPK for preparing a map of the PSIC house some three years ago, but later it was scrapped. Initial estimated cost of the PSIC house is around Rs217 million. The board also discussed various schemes for PSIC staff welfare.

The News learnt that the chairman of the board constituted different committees for handling different issues. However, this time the sitting chairman has changed the tradition of chairing every committee and gave the slot of chairman and co-chairman to members of the board.

This came in a bid to increase transparency in the working of the PSIC and also increase involvement of board members to enhance their interest for the betterment of the industry.

The board also constituted a meeting assigned to complete the survey of all industrial estates of Punjab and give the updated status of industrial plots. The survey will give the actual status of developed plots of the industrial estates of the province. Later, the PSIC will chalk out future strategy to develop industrial estates.


Source: Click here.]]> Sun, 01 Feb 2009 10:44:10 +0000 http://www.urbanpk.com/forums/index.php?/topic/23744-psic-approves-rs1-7bn-budget-at-first-board-meeting/ http://www.urbanpk.com/forums/index.php?/topic/23721-only-nadra-will-have-access-to-mobile-firms-data-pta/ By Jawwad Rizvi

LAHORE: The Pakistan Telecommunication Authority (PTA) will not give access to the database of cellular operators to anyone. Rather, it will ask the National Database and Registration Authority (NADRA) to verify it.

PTA Chairman Dr Mohammed Yaseen said under the new mobile SIM activation system the operators would verify the data of the applicant from NADRA’s database before activating it. He rejected the impression that the new system was being launched on the instructions of some external forces.

“The new system would not mean disclosure of personal data rather it would help strengthen security and service as well. Every subscriber will be provided ‘user guidance’ and activation would be possible after his identification,” he added.

Dr Yaseen was speaking after inaugurating the newly established Mobilink Call Centre here on Friday. Only four media persons of different organisations were present as the PTA had not invited the media due to undisclosed reasons.

However, Dr Yaseen expressed satisfaction over measures taken by cellular service providers upon PTA’s request to implement the new SIM issuance system with effect from February 1. “All arrangements made by the cellular operators are up to the standards set by the PTA,” he added.

He said the new system is being adopted in view of the prevailing security situation, which would prove fruitful in coming days. “Now no SIM will be activated without verification of the subscriber from the National Database Registration Authority (NADRA).”

Responding to a query, Dr Yaseen said the PTA had blocked some one million unregistered SIMs. Talking about the negative growth as mentioned in PTA’s first half report, he said Pakistan is also affected by the global financial crunch. “Pakistan is not out of the global credit crunch arena but the impact is not severe in the country,” he said, hoping that Pakistan would soon be out of this problem.

He also said the PTA, in collaboration with mobile phone companies, is launching value-added services for the consumers. These value added services will be helpful for the operators to improve their annual revenue per unit (ARPU). About the introduction of 3G, he said this system provides quality and value-added services which of course would be provided to people across the country.

On the occasion, Mobilink Chief Executive Officer Rashid Khan apprised the PTA chief of the measures taken in line with the Authority’s instructions and said Mobilink is fully prepared to ensure that all SIMs sold by the company from February 1 are verified and issued as per PTA’s guidelines.

He said Mobilink has taken all necessary steps to make sure that SIMs sold by the company February 1 onwards, are activated after verification from NADRA. “Our sales channel, including franchises and retailer network are also aligned to ensure full compliance and seamless execution as per the new PTA regime.”

All SIMs issued under the new regime will be inactive, that is, the user will not be able to make or receive calls till they are activated. Upon purchase of a SIM, users can dial 789, which is the uniform number for all operators, to connect to their respective operator’s call centre. Verified SIMs will be activated within 30 minutes from the time of request.


Source: Click here.]]> Sat, 31 Jan 2009 18:29:56 +0000 http://www.urbanpk.com/forums/index.php?/topic/23721-only-nadra-will-have-access-to-mobile-firms-data-pta/ http://www.urbanpk.com/forums/index.php?/topic/23650-forex-reserves-cross-10bn-mark-again/ By our correspondent

KARACHI: The country’s foreign exchange reserves have once again crossed the mark of $10 billion, State Bank of Pakistan (SBP) announced in its weekly forex report on Thursday. Forex reserves rose by $259.2 million or 2.6 per cent to $10,207.9 million on Jan 24 compared to $9,948.7 million on Jan 17, the SBP notified. Farhan Rizvi at JS Research said that the country’s reserves improved beyond $10 billion owing to $500 million soft loan from China and $101 million logistic disbursement from the US for the war on terror. Break-up shows foreign reserves held by the SBP increased to $6,872.9 million during the week ended on Jan 24 as compared to $6,584.6 million last week. Net foreign reserves held by banks (other than SBP) reduced to $3,335 million against $3,364.1 million last week.


Source: Click here.]]> Fri, 30 Jan 2009 10:09:23 +0000 http://www.urbanpk.com/forums/index.php?/topic/23650-forex-reserves-cross-10bn-mark-again/ http://www.urbanpk.com/forums/index.php?/topic/23578-imf-to-assess-pak-performance-in-feb/ By Khalid Mustafa

ISLAMABAD: A review mission of the IMF is due in Dubai from February 14 to 24 to assess the targets Pakistan was given for the first quarter after the release of first tranche of $3.1 billion under the fund’s $7.6 billion Standby Arrangement (SBA), a senior official of the Ministry of Finance confided to The News.

In case the review mission after 10 days of parleys submits its assessment report to the executive board of the Fund in a positive manner, Pakistan would be able to get another tranche of $750 million in March.

After that the country would be given another tranche of the same amount in June. Pakistan will get $4.6 billion in the ongoing fiscal year out of the total bailout package of $7.6 billion and the rest of the amount that stands at $3.1 billion would be given in phases in 2010. Adviser to Prime Minister on Finance Shaukat Tarin, heading Pakistani delegation comprising Secretary Finance Waqar Masud, Additional Secretary Asif Bajwa and Governor State Bank Saleem Raza, will participate in the parleys with International Monetary Fund’s review mission in Dubai.

The official said that Pakistan has over-performed by achieving fiscal deficit target of 1.9 per cent instead of 2.1 per cent of the GDP during the first half of ongoing fiscal 2008-09. The government also achieved zero borrowing from the State Bank and has already withdrawn subsidy on petroleum products by December 2008. “So we have met the targets which fall under the performance criteria given in the Standby Arrangement.”

However, the government has not succeeded in achieving the revenue target of Rs578 billion in the first six months of the current financial year as it managed to collect only Rs552.5 billion. Since the target of collecting revenue of Rs578 billion by the FBR is not part of the performance criteria, so economic managers of the country are relaxed in this case.

The government has not further reduced oil prices for about one month just to increase its revenue by collecting Rs15 to Rs16 billion per month through an increase in the Petroleum Development Levy on POL products. “This has actually given an ample cushion to the government to achieve the target of fiscal deficit.” The official said to qualify third tranche of $750 million, which is due in June 2009, the government would have to increase the power tariff by already 22 percent and withdraw before June 30, 2009 the whole subsidy being given to the power sector to qualify the fourth tranche.


Source: Click here.]]> Wed, 28 Jan 2009 20:57:42 +0000 http://www.urbanpk.com/forums/index.php?/topic/23578-imf-to-assess-pak-performance-in-feb/ http://www.urbanpk.com/forums/index.php?/topic/23530-psm-sale-put-off-till-bmr-worth-rs-2-billion/ By Aftab Maken

ISLAMABAD: The government has put off Pakistan Steel Mills’ privatisation until its balancing, modernisation and renovation (BMR) with estimated cost of Rs2 billion and expansion through foreign investment of $1.3 billion is completed, official sources in the ministries of industries and privatisation told The News on Tuesday.

After the BMR and expansion of PSM, a senior official in the Ministry of Industries and Production said, “the fate of the PSM will be decided. Either it is retained under public control or privatised under the new public-private partnership (PPP) policy.”

The ministry of industries and production (MOIP) will get approval of the said plan from the presidency before it is placed in a performance meeting of Pakistan Steel Mills with federal minister for industries and production today (Wednesday), a senior official of the minister’s office confirmed to this correspondent.

The privatisation of Pakistan Steel Mills after Supreme Court’s decision was put on hold on May 24, 2006. Although it remained on the list of the Privatisation Commission successive governments repeatedly affirmed that the sale of this strategic asset would not be made in haste.

On the BMR of the PSM, the ministry is expecting an expenditure of Rs2 billion and it would be initiated as the PSM sell-off plan has been put on halt, said an official of the ministry.

About expansion plan of the PSM, the same official said that a foreign company would be awarded a contract for its expansion in three years. After the completion of the expansion, it would be decided either it is privatized or kept with public sector control, he added.

With the BMR and expansion of PSM, the official hoped that PSM present capacity of 1.1 million tonnes would be enhanced to over three million tonnes. It is enough to meet the local demand of the steel

Under the new privatisation policy of Public Private Partnership (PPP), the privatisation of any strategic asset would only be offered by giving 12 per cent mandatory share to the workers and management control either with 25 to 50 per cent share to the interested parties, said an official of the PC.

The Board of the PC in its meeting held Tuesday also appointed a UK based company to submit a calculation with total financial impact for offering 10, 12 and 15 per cent mandatory shares to the workers, the same official said.


Source: Click here.]]> Wed, 28 Jan 2009 03:28:11 +0000 http://www.urbanpk.com/forums/index.php?/topic/23530-psm-sale-put-off-till-bmr-worth-rs-2-billion/ http://www.urbanpk.com/forums/index.php?/topic/23480-kse-hits-five-year-low-as-downslide-continues/ By our correspondent

KARACHI: The prolonged sale of stocks continued to pull the Karachi bourse down to new low with every passing day. With another 2.32 per cent plunge on Monday, the market has dropped to about five years low.

The KSE 100-share Index fell 2.32 per cent or 114.21 points to close at 4,815.34 points. The day closing level is the lowest once since February 2004 closing level of 4,809.52 points.

The KSE 30-Index fell 2.57 per cent or 116.95 points to 4,428.10 points. Institutional buying improved the day turnover to 125.656 million shares as compared to 92.192 million shares on weekend - an increase of 36 per cent on.

An outflow of Rs33 billion from the head of overall market capitalisation pushed it down to Rs1,544 billion.

Analysts said that the liquated investors were still waiting to see stocks touching bottom values in the ongoing downhill run, as there was a great chance that market might sink beyond imaginable levels.

According to some analysts, market might invite value buying somewhere from 4,500-4,700 points. “Many of the market participants have funds but are keeping hands tight folded as they are determined to indulge into buying once the financial-thunder is over,” said a leading analyst.

The continued massive foreign selling and forced-sale of brokers’ shares pledged with banks were not allowing market to stabilise, he added. The overseas investors have withdrawn another $6.7 million in this session from three local bourses, according to the NCCPL.

Analysts maintained besides some stocks market specific issues, the widening rift between the two leading political parties in the centre; one in government (PPP) and the other in opposition (PML-N), and long march protest by lawyers have also together made investors nervous and that is why they are not ready to invest in currently available lucrative stocks.

“Many of leading and tier two stocks are trading bellow their book values, but investors have no reason to invest,” another analyst said and added, “There was no investment friendly news in the market such as privatisation related news; no update on unsettled debt issue between brokers and banks; and situation was turning to worst on the domestic political front as well.”

Another analyst added that changing economic and political scenario was not allowing the companies to be traded in green territory. Otherwise, main board stocks maintained its tradition of announcing attractive dividends in the on-going corporate result announcement season.

The stock market situation is too bad. This is evident with the presence of NIT-State Enterprise Fund in market, which is investing about Rs300 million on daily basis at Karachi bourse, but its (NIT-SEF) efforts were going into the vain, as it has not yet succeeded into turning the investors’ sentiment to positive. Perhaps, the size of daily investment i.e. Rs300 million is too little, he added.

Out of total 236 actives, 178 stocks declined, 50 advanced, while the value of 10 stocks closed unchanged. Highest volumes were witnessed in Oil and Gas Development company at 15.971 million closing at Rs40.97 with a loss of 17 paisa, followed by NIB Bank at 13.549 million closing at Rs3.95 with a loss of 47 paisa, TRG Pakistan at 9.333 million closing at Rs1.50 with a loss of 17 paisa, National Bank at 8.224 million closing at Rs46.56 with a loss of 33 paisa, and WorldCall Telecom at 7.969 million closing at Rs2.73 with a loss of 49 paisa.


Source: Click here.]]> Tue, 27 Jan 2009 04:45:33 +0000 http://www.urbanpk.com/forums/index.php?/topic/23480-kse-hits-five-year-low-as-downslide-continues/ http://www.urbanpk.com/forums/index.php?/topic/23412-the-rupee-upward-journey-on-currency-market/
Commenting on the future direction, some currency viewers were of the opinion that the rupee may face modest devaluation in terms of dollar. In fact, textile exports fell by 14 percent in the month of December, which is the source of earning 60 percent of foreign exchange, they observed.

Besides, the banks will start oil payments from the next month, all these factors are indicating that the dollar demand will rise in the coming days, they said. At the weekend the US dollar touched a 23-year high against sterling and a six-week high versus euro as weak UK and eurozone data led investors to take refuge in the greenback. The dollar pared gains in late trading in New York as US stocks rebounded and crude prices surged, easing some risk aversion.

OPEN MARKET RATES: The rupee held its overnight firmness, gaining 30 paisa against dollar for buying at 79.20 and it also rose by 10 paisa for selling at 79.60, they said. The rupee, however, failed to perform the same in relation to euro, falling down by 20 paisa for selling at Rs 103.00 and also dipped by Re. one for selling at Rs 105.00, they said.



Source: Click here.]]> Mon, 26 Jan 2009 03:20:44 +0000 http://www.urbanpk.com/forums/index.php?/topic/23412-the-rupee-upward-journey-on-currency-market/ http://www.urbanpk.com/forums/index.php?/topic/23385-pakistan-gets-another-500m-from-china/ By Khalid Mustafa

ISLAMABAD: Pakistan received another tranche of $500 million from China here on Saturday to further strengthen the foreign reserves position.

With injection of $500 million in deposits of the State Bank of Pakistan, the foreign exchanges reserves would swell to $10.2 billion, a senior official in the ministry of finance told The News. Syed Wasim, Spokesman of State Bank of Pakistan, the country earlier received the same amount of $500 million in June 2008 meaning by that Beijing has provided sigh of relief by giving $1 billion from June 2008 till now for purely strengthening the foreign reserves of the country.

To a question, he said the central bank some time in the middle of the Musharraf’s regime has also received $500 million in support of reserves and paid back some of the principle amount. Right now, after paying back some of the amount to China, the bank possesses Chinese relief of $1.3 billion. The official said the SBP right now retains $10.2 billion out of which commercial banks have $3.3 billion. The official said the SBP received $3.1 billion from the International Monetary Fund so far out of its bailout package of $7.6 billion.

The official said it is Beijing, which proved that Pak-China friendship is stronger than Himalayas’ peaks.


Source: Click here.]]> Sun, 25 Jan 2009 02:59:55 +0000 http://www.urbanpk.com/forums/index.php?/topic/23385-pakistan-gets-another-500m-from-china/ http://www.urbanpk.com/forums/index.php?/topic/23331-textile-export-orders-worth-5bn-lost/ FAISALABAD: Textile export orders worth $5 billion were lost at Heimtextil Fair Germany this year while sixty thousand jobs are in danger as a result of the downfall in industrial production in Faisalabad region due to severe load shedding of electricity and gas.

This was stated by Pakistan Textile Exporters Association (PTEA) Chairman Muhammad Yousaf here on Friday while addressing a press conference on his return from Germany where he participated in Heimtextil Exhibition in Frankfurt. Vice Chairman Rehan Naseem Bharara was also present in the conference.

He observed that with ever increasing prices of raw materials, inputs and overhead expenses, high cost of production in the country is rendering our textile exports uncompetitive in the international market.

Resultantly, our textile items were considered to be very costly by the foreign buyers at Heimtextil Fair.

Traditionally, buyers visiting our stalls at the exhibition, but refused to place orders in view of the exorbitant export prices, stated Yousaf. The buyers were also reluctant to place orders as they feared that drastic electricity and gas shortage would hamper production and Pakistani exporters would not be able to honour their export commitments on time, he said.

The PTEA chairman demanded that export oriented units be exempted from electricity and gas load shedding and the government should refund the duties and levies paid by exporters on raw material and inputs, in order to reduce the cost of doing business in the country.

The government should also provide a level playing field to our exporters enabling them to compete successfully with their regional rivals in the international market, he added.


Source: Click here.]]> Fri, 23 Jan 2009 23:59:32 +0000 http://www.urbanpk.com/forums/index.php?/topic/23331-textile-export-orders-worth-5bn-lost/ http://www.urbanpk.com/forums/index.php?/topic/23301-govt-to-seek-60bn-fop-help-in-four-areas/ By Mehtab Haider

ISLAMABAD: In a major policy shift, Pakistan has decided to seek $50 to $60 billion assistance from the Friends of Pakistan (FOP) forum for four major areas including economic and financial issues, terrorism-related matters, energy sector and mega development projects, it is learnt.

Instead of asking the FOP forum to provide funds only for 71 development projects, Islamabad has now decided to broaden its strategy to include all kinds of areas liked by donors in its wish list rather than restricting them to investment in mega development projects.

A stumbling block in attracting investment as well as financial assistance from the donors is confusion in Islamabad whether to pursue donors from the FOP forum or Pakistan Development Forum (PDF) or donors’ conference because all multilateral as well as bilateral donors on these three forums are similar. It does not seem feasible to approach all these forums simultaneously, added the sources.

When Adviser to Prime Minister on Finance Shaukat Tarin was contacted for comments on Thursday, he said that the government has identified four areas for seeking assistance from the FOP forum. “These four areas are economic and financial assistance, security-related assistance, energy cooperation and undertaking of development projects,” he added.

The finance adviser also said that a technical-level meeting of the FOP forum would be held by the end of January or early Feb in Islamabad. “But the ministerial level meeting of the FOP will be held by March probably in Tokyo,” he added.

Earlier, Pakistan had tabled 71 development projects before the Friends of Pakistan forum meeting held in Dubai but the donors’ response was lukewarm as they termed it a ‘wish list’ or a ‘long shopping list’. Keeping in view the response, Islamabad has transformed its strategy to give an opportunity to various donors to help Pakistan in areas where they desire to invest in years ahead.

However, the sources admitted that it was not a right approach to table 71 development projects before the donors on which huge investment in terms of money as well as time is required. It was the decision of the Planning Commission to seek assistance for 71 projects but now the input of finance ministry was also taken, resulting in expansion of Islamabad’s strategy for the FOP forum.

A detailed feedback obtained by Pakistan’s Foreign Office as well as Economic Ministries in the aftermath of last FOP meeting held on November 17, 2008 at Abu Dhabi spells out in details about the prevailing thinking of developed world, which clearly states that if Islamabad did not prioritise its list, the member countries would remain non-committal to come forward to undertake these projects owing to worldwide financial crisis, whose brunt was feeling by all the developed countries.

The donors are also suggesting Pakistan to formulate short-term, medium-term and long-term strategies in accordance with importance of the projects.

The best way should be to adopt an incremental approach because it would not be possible for the member countries to commit everything on the long demand list immediately.

Official documents state that the donor countries appreciated the initiative to meet two major challenges Pakistan is confronting namely security issues and economic crisis.

The donor countries also raised objections on duplication of work, saying that the Friends of Pakistan and Pakistan Development Forum (PDF) are more or less the same. The donor countries in PDF are also similar so either these two forums are merged together or existing PDF may be reactivated.

“The PDF meetings are an annual event but no such meetings have taken place for the last two years,” the donors’ response further stated.

It was pointed out that since Pakistan needs long term development assistance, it is necessary to highlight economic, political and administrative constraints for devising strategies. “There are no credible data available on necessary facts sheet is available to the international community on Pakistan’s economic situation,” they added.

The donors’ countries during the meeting were not briefed about the possible impact of the IMF program on the economy and its impact on the general masses of Pakistan.

“Pakistan may request the IMF to circulate all concerned countries, along with necessary data and fact sheet about Pakistan, highlighting the likely impact of IMF package on overall economy of Pakistan as well as the report may also recommend an additional funding to Pakistan,” it concluded.


Source: Click here.]]> Fri, 23 Jan 2009 13:25:56 +0000 http://www.urbanpk.com/forums/index.php?/topic/23301-govt-to-seek-60bn-fop-help-in-four-areas/ http://www.urbanpk.com/forums/index.php?/topic/23282-sbp-to-provide-1-year-moratorium-on-loans/ By Shahid Shah

KARACHI: The State Bank of Pakistan (SBP) has agreed to provide a 12-month moratorium on long-term loans to textile industrialists.

This will allow the industrialists breathing space without paying principal amount of loans to banks for one year at the time of global recession.

State Bank governor assured the federal adviser on textiles that banks were ready for a loan moratorium, and the adviser was in a meeting with Prime Minister Yousuf Raza Gilani in Islamabad on Wednesday.

Adviser to the PM on Textile Industry Dr Mirza Ikhtiar Baig told The News that the 12-month moratorium would help the industrialists, who were facing big problems after an increase in mark-up. The meeting continued for half an hour.

Dr Baig said he requested the prime minister for some immediate relief for the textile sector, especially a moratorium on payment of principal amount of long-term loans and reduction in mark-up.

He also apprised the prime minister of his meeting with the State Bank governor on these issues.

During the meeting, the prime minister called the SBP governor, who after conversation with the PM informed the textile adviser that he had met with presidents of major banks regarding moratorium on payment of long-term loans for one year.

The governor told Dr Baig that banks were willing to ease long-term loan installments. “We asked for a moratorium for 18 months but the governor agreed on 12 months,” the adviser said.

The governor did not give any statement to cut the mark-up but said that due to substantial inflow of funds the liquidity of banks had improved considerably which would bring down mark-up automatically in the near future.

Dr Baig asked the governor to take up the matter with Secretary Finance, Islamabad, regarding payment of R&D claims on shipments made up to June 30, 2008 and three per cent interest disbursement to the spinning sector by the SBP and the finance ministry had assured it would send instructions for payment on both accounts within three to four days.

Talking to The News, he said that the prime minister wanted to bail out the textile industry and said that the problems of the industry would be taken on priority basis.

Source: Click here.]]> Thu, 22 Jan 2009 21:41:10 +0000 http://www.urbanpk.com/forums/index.php?/topic/23282-sbp-to-provide-1-year-moratorium-on-loans/ http://www.urbanpk.com/forums/index.php?/topic/22987-fdi-surged-by-45-percent/
KARACHI ( 2009-01-16 04:11:34 ) :The Foreign Direct Investment (FDI) has witnessed a raise of some 45 percent during December despite the looming clouds of war between Pakistan and India. The central bank on Thursday revealed that FDI has also crossed the mark of 2 billion dollars during December 2008 with a highest investment of 724 million dollars in a single month during the current fiscal year 2008-09.

"The surged in the FDI is a positive indication and reflected that confidence of foreign investors on Pakistan economy is still retained despite the tensions on Eastern boarders after Mombai attacks," economists said. They said that increasing FDI reflects that country's economic fundamentals are still strong despite several internal and external shocks and have ability to attract foreign investors.

Other economic indicators like foreign reserves and exports are also improving and would attract more investment in the future, they said. "With the current trend we are expecting that country's FDI would be around four billion dollars by the end of current fiscal year 2009", they added.

With an increase of some 260.95 million dollars, FDI has reached 2.2327 billion dollars during the first half of current fiscal year 2008-09 (July-December), as compared to 2.0663 billion dollars during the same period of last fiscal year 2008. Month-on-month basis the country has witnessed highest FDI in December as compared to other first five months of the current fiscal year, as foreign investors have invested some 724.28 million dollars in December 2008.

FDI has surged by some 45.18 percent to 2.32 billion dollars in December 2008, previously was stood at 1.603 billion dollars end of November 2008. Previously some 340.7 million dollars FDI registered in July 2008, 413.36 million dollars in August, 356 million dollars in September, 211 million dollars in October and some 282 million dollars in November 2008.

Although the FDI has presented a positive growth, however the portfolio investment has declined by 282 percent during the first half of 2009. Therefore, net foreign investment including FDI and portfolio investment (PI) depicting a slight decline of 1.43 percent.

Net foreign investment stood at 2.138 billion dollars during the July-December of the current fiscal year over the investment of some 2.1699 billion dollars at the same period of last fiscal year, depicting a dip of some 3.1 million dollars.

In addition, portfolio investment has declined to negative position of some 188.31 million dollars during the first half as against 103.66 million dollars in corresponding period of last fiscal year 2008. "The political uncertainty and instability in the country and negative reports regarding world stock markets are the major reasons of declining trend in the portfolio investment", economists said. They also hoped that after the end of tension between Pakistan and India foreign investors would further invest in Pakistan especially in equity market.

source: http://www.aaj.tv/news/Business/126832_detail.html]]> Thu, 15 Jan 2009 20:08:37 +0000 http://www.urbanpk.com/forums/index.php?/topic/22987-fdi-surged-by-45-percent/ http://www.urbanpk.com/forums/index.php?/topic/22951-fauji-cement-to-install-countrys-largest-plant/ ISLAMABAD: Fauji Cement Company Limited is setting up the largest cement plant ever built in Pakistan, said Company Secretary Brig ® Shabir Ahmed.

The Company had entered into contract with a world renowned cement plant manufacturing firm Polysius AG (Germany) to supply state of the art plant and machinery to produce 7200 tonnes per day of clinker, he said in a press release issued here on Wednesday.

In order to witness the progress of the project, Chairman Polysius AG Dr Detlev Rose along with his team members visited the project site and witnessed the on-going construction activities. The team showed satisfaction over the progress of the Project.

DESCON Engineering Limited (Pakistan), which is responsible for completion of civil works, mechanical/electrical fabrication, erection and commission of the plant, was represented by Abdul Razak Dawood, Chairman DESCON Engineering Limited.

Additional production of quality cement by Fauji Cement Company will help stabilising the cement prices in the local market.

Ambassador of Federal Republic of Germany in Pakistan Dr Michael Koch, Lt Gen ® Hamid Rab Nawaz, MD Fauji Foundation and Lt Gen ® Javed Alam Khan, MD Fauji Cement Company Limited were also present on the occasion.

source: http://thenews.jang.com.pk/daily_detail.asp?id=157128]]> Wed, 14 Jan 2009 22:34:56 +0000 http://www.urbanpk.com/forums/index.php?/topic/22951-fauji-cement-to-install-countrys-largest-plant/ http://www.urbanpk.com/forums/index.php?/topic/22893-december-remittances-up-40pc/ By our correspondent

KARACHI: Pakistan’s overseas workers sent home the highest-ever amount of $673.50 million as remittances in December 2008, beating the previous record of $660.35 million received in September 2008.

The amount received in December 2008 showed an increase of $194.24 million or 40.53 per cent when compared with $479.26 million in the same month of 2007, said State Bank of Pakistan (SBP) on Tuesday.

Overall, in the first half (July-December 2008) of the current 2008-09 fiscal year, the country received $3.64 billion as workers’ remittances as against $3 billion during the same period of the previous fiscal year, showing an increase of 18.71 per cent.

The amount of $3.6 billion includes $0.37 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

The monthly average of remittances for July to December 2008 period comes to $606.67 million, up 18.71 per cent when compared with the corresponding period of the previous year.

The inflow of remittances in the July-December 2008 period from USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $903.49 million, $714.90 million, $699.43 million, $596.54 million, $239.82 million and $111.41 million respectively as compared to $874.21 million, $563.06 million, $500.33 million, $457.21 million, $227.23 million and $88.99 million respectively in the July-December, 2007 period.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first half of the current fiscal year 2008-09 amounted to $374.05 million as against $354.18 million in the same period last year.

source: http://thenews.jang.com.pk/daily_detail.asp?id=156988]]> Tue, 13 Jan 2009 22:00:28 +0000 http://www.urbanpk.com/forums/index.php?/topic/22893-december-remittances-up-40pc/