Pakistan's First IMAX Theatre to open in Lahore...

LAHORE: The city will have it first IMAX cinema along with an ‘Infotainment Park’ in front of Gaddafi Stadium by September next year, Punjab Culture Secretary Taimur Azmat Usman told Daily Times on Tuesday.

The project will cost an estimated Rs 400 million and will house a theatre, restaurants, shopping malls, a skating arena, science centre and other attractions, Mr Usman said.

There are 270 IMAX cinemas in the world, but the one planned in Lahore will be Pakistan’s first. The government has bought 92 kanals for the project and the Parks and Horticulture Authority has already begun landscaping.

An IMAX theatre screen is three times larger than the standard for cinemas that use 70mm film. The high resolution screen makes for a unique cinematic experience, taking audiences into unfamiliar worlds, flying high above the earth or diving under the deepest oceans. Audiences are immersed in larger-than-life images, making them feel as if they are literally in the picture.

The IMAX cinema’s uncompressed digital wrap-around sound is unsurpa**ed in depth and clarity. A patented six-channel speaker system delivers exacting volume and quality to every seat in the cinema. From a small drop of rain to a ma**ive clap of thunder, audiences experience every shade and subtlety, regardless of where they sit.

“It has a large-scale format and completely fills a viewers field of vision and makes them feel like a part of the movie. We plan to install both two-dimensional and three-dimensional screens,” the culture secretary said.

“Most IMAX cinemas are based in institutions as most of the films in this format are educational. Commercial films are also being made for or converted into the IMAX format and we plan to screen them here as well, so the cinema will be educational and entertainment.”

Work on the project starts in September and should be complete in one year. “The feasibility process is being conducted for awarding consultancy,” Mr Usman said.

Mr Usman also said the Punjab government would take over historic places listed under the World Heritage Fund, i.e., the Shalamar Gardens and the Lahore Fort, from the federal government on July 1.

He said the Punjab government plans to form a board of governors to manage these historic sites. “We plan to create a Special Heritage Fund which we hope to start off with Rs 100 million. This will allow us to spend the money directly. We also want to bring in international experts to help us preserve these places,” he said.

http://www.dailytimes.com.pk/default.asp?page=story_30-6-200 4_pg7_20

GCC sees Pakistan as investment destination

ISLAMABAD: Kuwaiti Foreign Minister, Dr.Muhammad Sabah Al-Salem Al-Sabah has said that Gulf Cooperation Council (GCC) would like to see Pakistan as a destination for investment.

“We would like to see Pakistan not only as source of brilliant, industrious labour force in the GCC but also a destination for investment”, the Kuwaiti FM told a news channel Saturday.

He said the GCC is keen to start free trade with Pakistan and hoped the process would commence before the end of this year.

Pakistan is strategically located and can become a hub of regional as well as international trade. “We know that one who controls the Khyber Pass also controls quite a larger chunk of Asian continent”, he said adding Pakistan is that lucky country.

Similarly he said, Kuwait is also located at the Northern end of Gulf and the country is committed to develop itself as a major transportation, distribution and storage hub to service the Iraqis, Iranian and the Central Asian States.

He said the two geographies are very unique, very important and they can complement each other. Politically he said, Pakistan enjoys very strong ties with the Gulf nations particularly Kuwait.

He said Pakistan played a very good role when Kuwait was invaded by Iraq. To a question on Kashmir he said, “we think the sanctity of UNSC’s resolutions should be respected and observed by everybody.” To another question he said, sacking all the Bathists in Iraq was not a wise strategy on part of United States and they have now begun to realize their mistake.

Responding to another question he said, President General Pervez Musharraf’s idea of enlightened moderation needs serious efforts on part of OIC to translate it into reality. app

http://www.dailytimes.com.pk/default.asp?page=story_29-8-2004_pg5_5

Chinese trading platform officials keen to invest in Pakistan

KARACHI (October 27 2004): Officials of a huge Chinese trading platform have expressed their desire to make investment in Pakistan and to co-operate with the Pakistani business circles.

This was stated by Chinamex Mart Vice-President David Xu and Marketing Department Executive Michelle Zhu, now on a three-day visit to Pakistan, when they called on the acting President of Karachi Chamber of Commerce and Industry (KCCI), Mian Abrar Ahmed, on Tuesday.

During the meeting, they Chinamex Mart officials exchanged views with Mian Abrar on ways and means for promoting trade activities.

"We have come here for the promotion of trade and business between China and Pakistan," David Xu told reporters after the meeting with the acting President of KCCI.

David Xu said: "We also have plans for investment in Pakistan and also to co-operate with the Pakistani business circles."

Mian Abrar said that the possibilities were explored for the setting up of joint ventures.

He said that after the enforcement of the World Trade Organisation (WTO) regime in January 2005 there would be a problem for the Pakistani entrepreneurs and exporters to market their products abroad in competition with the Chinese products.

"So we have suggested that we should have joint ventures with the Chinese entrepreneurs so that we could jointly market our respective products in the international market," the acting chief of KCCI further remarked.

He said he also proposed that "we are setting up a textile city as well as a garment city in Port Qasim here where we can also join hands to export our products abroad jointly and we can share the profits and also have mutual understanding in the international market while marketing our products there." He said.

Mian Abrar said: "We have requested the Chinese to set up a mart in Karachi on the pattern of the one they have established in Dubai.

Meanwhile, Chinamex Mart Vice-President David Xu, told APP the Chinamex Mart, which has been set up in Dubai, would be inaugurated on December 6.

He said this was world's largest Chinese trading platform outside China set up with a cost of about 300 million dollars.

David maintained that it would allow Pakistani companies to view and acquire quality industrial technologies and other products from 3,000 Chinese companies directly, inexpensively and with ease.

He pointed out that the Chinamex Mart was a 1.2 kilometre dragon-shaped pavilion, covering 150,000 square metres.

It would house 3,000 Chinese companies providing a wide range of products from sophisticated logistics systems to quality industrial equipment to an immense range of consumer goods, he said, adding it would serve the Middle East, Africa, Eastern Europe and South and Central Asia.

The facility would include 20 negotiation rooms, a business centre, offices and lounge areas. A fully-equipped multi-function meeting hall, conference rooms and offices.

Copyright Associated Press of Pakistan, 2004

BD firm keen to invest

ISLAMABAD: A Bangladeshi leading industrial group has shown interest in making investment in Pakistan, said press release issued on Friday.

Naved Husain, group director of Beximco and chief executive officer Beximco Textiles of Bangladesh made this offer during a meeting with President Pervez Musharraf in Islamabad on Friday.

Beximco is the largest textile group in South Asia. It is also a major investor in pharmaceutical, real estate and ceramics in Bangladesh. Mr Husain held a detailed meeting with the president and informed him of his group’s intentions to venture into Pakistan’s growing economy. “Investment in a vertical textile project is the main area, but Beximco is also planning to establish a chain of super stores in Pakistan and marketing of Bone China tableware products,” Mr Husain said. Beximco group comprises 20 percent of the total value of the Dhaka Stock Exchange. Its textile wing produces over 50 million meters of woven fabrics as well as 5,000 tons of knits with a capacity to finish over 50 million garments. —Staff Report

http://www.dailytimes.com.pk/default.asp?p...9-10-2004_pg5_6 (http://www.dailytimes.com.pk/default.asp?page=story_9-10-2004_pg5_6)

Malaysia offers investment in industrial sector

ISLAMABAD (October 31 2004): A two-member Malaysian delegation, led by Teo Ah Khing, called on Federal Minister for Industries, Production and Special Initiatives, Jahangir Khan Tareen and expressed its interest to invest millions of dollars in various sectors in industrial and manufacturing sectors in Pakistan.

The investors offer setting up of timber & furniture industries and by-product of Steel Mill like ash in Karachi to promote the construction industry in Pakistan. They also showed interest in establishment of electrical storage systems as well as setting up of petrochemical industry in Pakistan.

The minister while welcoming their offer said that Pakistan was pursuing a liberal industrial policy, which aimed to attract investment through joint collaboration by creating an investor-friendly environment, with a focus on further opening up the economy and marketing potential for direct foreign investment.

The minister informed the delegation that infrastructure and telecommunication and road network are being expanded to encourage the investors to come forward for making investment in the industrial sector as well as to meet the challenges of growing economy.

He further informed the delegation that the Gwadar Port is an ideal location, where foreign investors can explore the possibility of investment in the fields of petrochemical, steel products and other export-oriented industries as the government has declared Gwadar as Duty Free Zone, he added.

He said that the Gwadar Port and Free Trade Zone would have access for South Asian Central Republics and Afghanistan through land route. He further said: "The government of Pakistan is planning to set up a world class industrial park near Port Qasim to invite foreign investors to make investment.

The minister assured the delegates his full support to provide every facility to them in making investment in Pakistan. Leader of the Malaysian delegation Teo appreciated the economic reforms introduced by Pakistan during the last five years. He was of the view that Pakistan now offers great incentives and a conducive environment for making foreign investment. He thanked the minister for extending his support.

Copyright Associated Press of Pakistan, 2004

Investment climbs on high demand

KARACHI: State bank of Pakistan (SBP) said on Saturday that in real terms total investment increased by 12.4 percent during 2003-04 fiscal year compared to 5 percent rise in the preceding year.

In its annual report on the state of economy, the bank said share of the private sector in real investment was 71.2 percent while rest was contributed by the public sector.

It said fixed investment by private sector rose by 7.9 percent during the year under review, while fixed investment by public sector depicted a surge of 35.8 percent.

It reported 22.3 percent surge in total investment, in nominal terms, during 2003-04, compared to an average of 7 percent during the last three years. The report said this recovery was largely driven by investment in large-scale manufacturing, transport and communications and services sector. The bank said despite a significant increase of 17.6 percent in real public sector investment in agriculture sector during 2003-04 fiscal year, total investment in the sector declined 6.1 percent due to a negative contribution by the private sector.

Whereas, exceptional growth of manufacturing value added of the country was helped by a very strong 25.1 percent year-on-year increase in real fixed investment in this sector during the period under review. The share of manufacturing in total fixed investment increased to an all time high of 29.8 percent from 26.8 percent in 2002-03, the bank added.

The bank said real investment in transport and communication sector recorded a growth of 32.7 percent year-on-year during the period under review and added a marginal decline of 3.1 percent year-on-year in private investment in this sector was offset by a significant rise of 85.6 percent year-on-year in public sector investment during 2003-04. The rise in public investment in transport and communication is mainly attributed to the additions of aircrafts to the PIA fleet and expansion in facilities of Pakistan Railways, the bank said.

Foreign direct investment: The bank said the country’s FDI to GDP ratio remained at 10.7 percent in 2003. The FDI inflows in Pakistan are still below $1.0 billion mark, it said and added this serves to highlight the need to further improve the investment climate in the country.

It said services sector attracted the highest share in FDI followed by oil-gas, mining and quarrying. “The share of trade, transport, storage and communication in total FDI rose from 19.2 percent in 2002-03 to 28 .0 percent in 2003-04 followed by financial business with a share of 25.5 percent.”

The increased FDI in communication sector stemmed from entry of new cellular phone companies in the country, while the rise in FDI inflows in financial business is mainly due to privatisation of a large public sector banks, the bank said.

The bank said FDI from UK and Saudi Arabia decreased 70.4 percent and 83.4 percent, respectively. The decrease in FDI from UK is due to heavy disinvestments in the power sector, the bank added. One-fourth of the FDI inflows were from USA followed by Switzerland and UAE with shares of 21.6 percent and 14.2 percent, respectively. —Staff Report

http://www.dailytimes.com.pk/default.asp?page=story_31-10-2004_pg5_14

Mobilink investment to inflate to $ 1Bln by 2005

Pakistan Times Business & Commerce Desk

The investment on the part of Pakistan's most favourite Cellular Company 'Mobilink' will swell to one billion dollar mark by the year 2005. An announcement to this effect was made in a statement here on Wednesday. It said that the Mobilink is the first cellular services provider in Pakistan to operate on a 100 percent digital GSM technology and as market leader offers both post-paid (INDIGO) and prepaid (JAZZ) solutions, including advanced voice communication services. The statement said that the company contributes significantly to the economic development of Pakistan besides various charities. Mobilink has injected 275 million dollar in the industry in 2004 alone, bringing its aggregate investment to 750 million dollars since its inception in 1994. 'Pakistan Times' understands that this amount is expected to inflate to 1 billion dollar in 2005.

Besides spearheading the communication revolution in the country, Mobilink runs a parallel pursuit aimed towards the development and facilitation of the underprivileged in Pakistan. An announcement of the organization here on Wednesday said that Mobilink recently sponsored the Second International Human Resource Development Congress where Zouhair Abdul Khaliq President and CEO, Mobilink, commended the role of NGOs in the process of human development and affirmed the contribution of the private sector towards this moral duty. In pursuance of its commitment, Mobilink has donated a medical van with a full stock of medicines to the Khidmat Foundation, an NGO operating in rural Punjab. The vehicle will help in the timely transportation of medicines and supplies to surrounding rural areas.

The vehicle and stock of medicines were presented to Admiral(Retd) Saeed M. Khan, President Khidmat Foundation by Zouhair A.Khaliq, President and CEO, Mobilink. "It is contribution from moral corporate citizens like Mobilink that make our work possible and the task worthwhile," complimented Admiral (Retd) Saeed M. Khan, President Khidmat Foundation. "This contribution by Mobilink will help the timely supply of medicines to otherwise inaccessible areas and thus to some could mean their life," he added. Commenting on the occasion, Mobilink's President and CEO Zouhair A Khaliq said, "It is an honor to be able to serve the people of Pakistan through more than just our services. We are pleased to know that this humble gesture would help make a difference in the lives of many." "I would like to ensure that such initiatives would remain a part of our contributions towards the people of Pakistan in years to come."

http://www.pakistantimes.net/2004/10/28/business1.htm

Swedish businessmen invited to invest in Pakistan
RECORDER REPORT

LAHORE (November 24 2004): President Lahore Chamber of Commerce & Industry (LCCI) Mian Misbah ur Rehman has invited the Swedish businessmen to come forward and make investment, to take the advantage of investor friendly policies of Pakistan. He expressed these views while talking to a high-powered Swedish delegation headed by Jan Palmstierna, Ambassador Chief Co-ordinator for Trade and Investment Promotion, Sweden.

The Swedish delegation comprising businessmen from engineering, transportation, steel and dairy sectors visited the LCCI and discussed ways and means to enhance trade with their Pakistani counterparts.

Misbah said the structural reforms and financial discipline have transformed the country into a stable growing economy.

Addressing on the occasion, the head of Swedish delegation Jan Palmstierna said that the main purpose of Swedish delegation's visit is to broaden trade relations between the two countries. He said that Swedish expertise and resources have played an important role in the development of various markets.

He was of the view that involvement of Swedish international companies in different projects has often led to the transfer of know-how, training and local investments, and development of local industry. In many cases, he said Swedish agencies and commercial banks have been able to support projects and investments through favourable financing terms.

'Sweden not only actively promotes export from Sweden but also import from Asian countries. Many Swedish companies are engaged in import from Asia to Sweden and to other markets in which they are active. It is a common interest of the government and the private sector to further enhance import, both by pursuing a liberal trade policy and by promoting import commercially. One way of doing this is to explore new markets', he said. The delegation will thus also look into new opportunities for Pakistani exports to Sweden and other markets, he added.

Speaking on the occasion, the LCCI president said that exchange of trade delegations always bring positive results in bilateral trade and present visit by a high-powered delegation would prove fruitful for both the countries. He said Sweden being important member of the EU could help Pakistan in entering the market of European Union. Throwing light on Pakistan's economy, Misbah said that Pakistan's economy has made significant progress over the last five years. The structural reforms, practical macroeconomic policies, financial discipline have transformed Pakistan into a stable and growing economy. A broad-based economic recovery has already gained momentum, and the balance of payments is much stronger today than ever before. Large-scale manufacturing was targeted to grow by 8.8 percent in 2003-04 but due to encouraging government policies it has surpassed the target and registered a growth of 18.1 percent. With the help of wide-ranging tax reforms, revenue collection has increased by 68 percent during the last five years with no additional tax measures in the budget.

Addressing the participants, the LCCI Senior Vice President Sohail Lashari said that there is a dire need for developing close liaison between private sectors of Pakistan and Sweden. 'We must adopt modern techniques for exchange of information and carrying out market research', he said.

Lashari said that the Lahore chamber would extend total support to improve trade ties between the two countries.

Speaking on the occasion, the LCCI Vice President Sheikh Muhammad Arshad said that potential of joint ventures exist between the two countries in agriculture, construction, Information Technology, textile and tourism sectors. He said that two-way communication would go a long way in exploiting the potential and developing economic relations between the two countries. He said that the LCCI always advocates frequent interaction among the businessmen of Pakistan and Sweden and for this purpose the LCCI would extend all possible support.

Copyright Business Recorder, 2004

Thai Muslim investors' team arrives

KARACHI (November 24 2004): An investors' delegation, headed by Thai-Islamic Trade and Industry Association President Anirut Smuthkochorn arrives here on Monday night on a two-day visit. This was announced by an official of the E-commerce Gateway, Pakistan. He said that the president of E-commerce Gateway Pakistan, Dr Khurshid Nizam, is accompanying the delegation.

The visiting delegation will call on the Sindh Governor, Dr Ishrat ul Ebad Khan, and is also scheduled to meet chief players from the sectors of construction, fisheries, fruits and vegetables to provide a platform for discussion on the investment opportunities in these sectors in Pakistan.

The official of E-commerce Pakistan further stated that the visiting delegation has shown interest in construction projects, food processing and fish farming in Pakistan not only for the common business gain for both the parties as well as progress in these sectors but also for improving trade ties between Pakistan and Thailand.

Copyright Associated Press of Pakistan, 2004

there are a lot of rich pakistanis living in North America and Europe, we should invest in pakistan's infustructure. One of the problem is that here in North America we barely here about what is going on in Pakistan, and this is one of the reasons of few investments coming from here to pakistan. I mean Pakistanis living here dont even know anything about gwadar.

This project isn't for your average person; were talking about millions of dollars here. Once the city is complete (infrasturcture) then the government should extensivly market this city to the international community especially the expats who want to come back. It will be a brand new city and up to the world standards in basic needs; for now the average person can't do very much except wait and see what happens.

the location of gwadar is ideal to become a tourist town

This project isn't for your average person; were talking about millions of dollars here. Once the city is complete (infrasturcture) then the government should extensivly market this city to the international community especially the expats who want to come back. It will be a brand new city and up to the world standards in basic needs; for now the average person can't do very much except wait and see what happens.

Yes but, if many people invest those millions of dollars needed could be easily achieved. there are many millionaires pakistani's living abroad

Foreign Firms Keen to Invest in Pakistan Banking: Salman

ISLAMABAD, Nov 30 Asia Pulse - Adviser to the Prime Minister on Finance Dr Salman Shah has said that foreign companies have showed interest in telecommunications, oil and gas and banking sectors. He was talking to Ambassador of Saudi Arabia in Pakistan Ali Saeed Awadh Asseri who called on him in his office. Matters relating to bilateral relations, enhancement of economic and commercial ties came under discussion.

Salman Shah briefed the ambassador about the turnaround in Pakistan's economy. He informed the ambassador that as a result of the economic reforms introduced by the government during the last five years Pakistan's economy has gathered momentum.

All macro-economic indicators are showing improvement. The debt and balance of payments situation has improved.

Salman Shah said that two foreign companies got mobile licences. The privatisation programme is proceeding ahead and providing opportunities to local and international investors.

Wide-ranging structural reforms, prudent macro-economic policies, financial disciplines and consistency and continuity in policies have transformed Pakistan into a stable and resurgent economy.

He said that the government is particularly focusing on attracting foreign investment in the country. Pakistan is following an open market policy and foreign investors have been provided a level playing field.

This coupled with complete transparency in transactions has resulted in enhanced level of investments. During the last financial year foreign direct investment touched $1 billion.

http://asia.news.yahoo.com/041129/4/1sd07.html

Energy, infrastructure projects: $300 million deal signed with Brazilian consortium

RIO DE JANEIRO (November 29 2004): A Brazilian consortium and a Pakistani-Canadian company, Hashwani and Son Inc, signed a $300 million agreement for the development of energy and infrastructure projects in Pakistan. The signing ceremony, taking place during President General Pervez Musharraf's visit to Brazil, was attended by Minister of State for Privatisation, Umar Ahmed Ghumman, who is member of the President's entourage. The agreement is focused on the establishment of wind energy project for 500 MW power generation, and development of infrastructure in Pakistan.

The agreement was signed by Frederico Robalinho de Barros and Jesus Ferreira Filho of Brazil Energy Power Corporation and MPE Group, the two companies representing the Brazilian consortium, and Abdullah Hashwani of Hashwani & Son Inc.

MPE Group is a billion US dollars plus company involved in turn-key projects in various sectors including petroleum, steel, ports, engineering and agribusiness in Brazil and several countries.

President Musharraf arrived here late on Saturday night at the start of a three-day visit to Brazil, expressing hope that his talks with Brazilian leaders would help forge Pakistan's strong political and economic ties with the important Latin American country.

Talking to PTV on his arrival at Rio de Janeiro, the President said, "I am probably the first Pakistani leader coming here, therefore I see a very bright future in economic, commercial and trade ties between Pakistan and Latin American countries and Brazil in particular.

At the Galeao airbase, the President was received warmly by acting Governor of Rio de Janeiro in a rare gesture of goodwill as normally the visiting leaders are received by protocol officials.

Musharraf's visit has generated a lot of interest as was reflected in the coverage of his arrival by leading media networks.

In Brasilia, the President will hold talks with his Brazilian counterpart Lula De Silva with a focus on augmenting trade and economic co-operation including joint ventures in promising areas.

The two countries are likely to sign agreements on boosting bilateral ties.

He will also interact with the Brazilian entrepreneurs to highlight the vast potential for bilateral trade and inform the local business leaders about Pakistan's recent economic turnaround.

Besides, Commerce and Privatisation Ministers and a strong delegation of businessmen accompanying the President will also hold talks with their counterparts to identify areas offering potential trade opportunities.

The weeklong visit of President Musharraf to the region will also take him to Argentina and Mexico.

Copyright Associated Press of Pakistan, 2004

US firm to invest $1.2bn in Wind Power

By Our Staff Reporter

ISLAMABAD, Nov 8: A US-based energy firm plans to invest $1.2 billion in Pakistan's wind power generation sector in Sindh province, the Ministry of Finance said in a statement.

Chief Executive Officer of Access Energy Group International (AGI) of the United States, Shahid Naeem met with Minister of State for Finance Omar Ayub Khan here on Monday and informed him that his company was planning to invest $1.2 billion in Pakistan's energy sector over the next five years.

The company will develop a 100mw wind farm, extendable to 1,000mw, in the province. The initial investment for the first phase would be over $109 million to be brought entirely from abroad.

In the next five years, depending on the success of the first phase, AGI has made commitments to install 900mw generating capacity in the region.

The relevant memorandums of understanding (MoUs) for the above projects have been signed with Alternate Energy Development Board (AEDB) of Pakistan.

The minister was informed that AGI in cooperation with AEDB was also in the process of making arrangements for transfer of technology and for setting up a Solar Cell Manufacturing plant in Pakistan.

Working papers for this project have been finalized and companies with the manufacturing capabilities in Pakistan have been short-listed.

AGI has already acquired manufacturing rights for wind turbines in Pakistan. This will allow for a new industry to be set up in the country with worldwide export potential. The company is also planning to set up a training institute in Pakistan to develop human potential in the field of renewable energy.

The minister was further told that the AGI has commissioned a Canadian firm to manufacture Solar Power units with a 25kw capacity to be installed in different villages in Pakistan in order to provide a source for inexpensive electricity for small villages.

Mr Ayub appreciated that an expatriate Pakistani was working actively to bring big investments and technology in Pakistan. He said the continuous growth of Pakistan's economy has increased power demand manifold. It has now become imperative to take immediate steps to look for alternate sources of energy.

The minister said the government was encouraging foreign and local investment in the energy sector and was trying to remove all bureaucratic hurdles faced by the investors.

http://www.dawn.com/2004/11/09/ebr4.htm

Dutch firm interested in setting up 30 super stores
LAHORE (December 03 2004): Makro, the leading cash and carry store chain of Holland has expressed interest in establishing some 30 super stores in Pakistan. "A team of the company will soon visit Pakistan to explore opportunities in this big market with over 150 million people," the chief executive officer (CEO) Pakistan Horticulture Development and Export Board (PHDEB), Shamoon Sadiq, told APP.

He along with other senior officials of the board had recently visited Holland and held meeting with Marko's chairman C.P. Klevers Makro Cash and Carry, a subsidiary of Dutch SHV company is already operational in five countries of Asia- Thailand, Indonesia, Malaysia, the Philippines and China with stores of food and other products.

Shamoon said that establishment of stores by a Dutch company with a total annual turnover of 12 billion euros, would be a good precedent for other European and US companies for investment in this part of the world.


Copyright Associated Press of Pakistan, 2004

PTA expects investment of up to $8b in 5 yrs

http://www.dailytimes.com.pk/images/3_12_2004_Picture-1.jpg

ISLAMABAD: Pakistan’s state telecommunications’ regulator is projecting investment of $5 billion to $8 billion in the country’s cellular and fixed-line phone network over the next five years, fueled by the industry’s recent deregulation.

The expansion is likely to create 370,000 new jobs, the Pakistan Telecommunication Authority said in its annual report, adding the telecom sector’s share of gross domestic product is likely to increase to 3 percent from 1.7 percent in the fiscal year ended Jun. 30. It didn’t say how much it expects phone networks to expand in the next five years.

Pakistan’s telecom deregulation last year has attracted many private players to the sector, ending PTCL’s monopoly. Norway’s Telenor ASA (TELN) and some local groups are likely to start their operations within the next 8-12 months.

The government also announced plans recently to sell a strategic 26 percent stake, along with management control, in Pakistan Telecommunication Co. Ltd. as an integrated company to maximize its value and generate international interest.

Since deregulation, cellular phone subscriptions have been growing robustly. There were 6.5 million subscribers in September this year, from 2.4 million at the end of 2003. Pakistan’s teledensity reached 2.9 percent in the last fiscal year from 2.2 percent in 2000.

The authority said another 118 licenses were issued for card payphones services in the last fiscal year, six for audiotelephone services, and five for non-voice network communication services.

“I am conscious that despite we have achieved key milestones this year, there is much more to be done. Any issues which are likely to emerge after liberalization of the telecom services will be appropriately handled,” said Shehzada Alam, chairman of the authority, in the report.

Foreign direct investment of $207.1 million came into the sector in the last fiscal year, from $6.1 million in the previous year, through the sale of two cellular licenses. Separately, the authority generated Rs 30 billion through initial license fees for mobile services, long distance international services, local loops and wireless local loops.

In all, the authority has awarded 33 companies 84 local loop and 12 long distance licenses, while it issued 108 licenses to 20 companies for wireless telephone services.

“Keeping in view the importance of WLL technology in developing economies and the growth of WLL subscribers all across the world, we also decided to promote this technology and thus offered WLL licenses,” said Mr Alam. —Dow Jones Newswires

http://www.dailytimes.com.pk/default.asp?p...3-12-2004_pg5_5 (http://www.dailytimes.com.pk/default.asp?page=story_3-12-2004_pg5_5)

Pakistan's CNG Sector Attracts US$252.4 MLN Investment

KARACHI, Dec 3 Asia Pulse - Federal Minister for Petroleum and Natural Resources Amanullah Khan. Jadoon has said that the Compressed Natural Gas [CNG] sector attracted Rs.15 billion (US$252.44 million) investments during the last few years and Pakistan has become the leader in CNG industry in Asia and third largest CNG using country in the world.

He said this while addressing a 2-day conference on Pakistan-Iran Joint Cooperation in CNG sector here on December 1.

The conference is being attended by a 40-member delegation from Iran, representatives of Pakistan's CNG industry and the senior officials of the Ministry of Petroleum and Natural Resources and its public sector oil and gas companies.

Amanullah Jadoon said that world is changing into a global village and the regional co-operation has assumed special significance.

He said that although Pakistan and Iran share common religion culture and heritage together with several natural boundages, thus, CNG co-operation would open many new avenues of mutual benefit.

The Minister said that during the last few years, the government has, pursued major restructural reforms in the petroleum sector along with deregulation of key sectors of the economy.

He said that government is committed to encourage private sector participation to give boost to industrial development in the country.

The CNG sector is one of those sectors which have shown a remarkable performance during recent years due largely to investments by private sector under the supportive policy framework provided by the government.

Included as one of the initiatives for implementation of Millennium Development Goals of the United Nations.

He hoped that Pak-Iran Joint Conference would result in substitutive cooperation between the two countries in the areas of CNG infrastructure development institutional support and upgrading of services with emphasis on finding out ways and means that would lead to local fabrication of CNG plants and machinery in both countries in near future.

http://au.news.yahoo.com/041203/3/s0rr.html

Pakistan Puts in IMAX Theater
Thursday, October 28, 2004

New IMAX theater in the Punjab Province will be part of an entire new entertainment and shopping park.


By Lisa Johnson

What do you suppose they eat while watching a film in Pakistan? North America's IMAX Corporation is about to find out, as it joins with the Government of Punjab Province, Pakistan, to install the first ever IMAX theater in Pakistan.

The theater will be located in Lahore, Pakistan, and be part of a multi-function shopping and entertainment park the Punjab government is developing. Construction will begin soon, and the park is expected to open by September 2005.

"The IMAX Experience is drawing big crowds around the world, and it will provide a compelling reason for Pakistani people and tourists to visit our shopping and entertainment park - driving traffic to the surrounding attractions as well," said Taimur Azmat Osman, Secretary of Information and Culture and Youth Affairs, the Government of the Punjab. "The Lahore IMAX Theater will offer our citizens a way to learn about space travel, explore the ocean floor and experience some of today's biggest Hollywood releases in the most immersive film format."

The Lahore IMAX Theatre will serve as an anchor for a shopping and entertainment park that will include retail outlets, a food court, bowling alleys and other attractions. The theater will be capable of showing IMAX and IMAX 3D films, feature a 12,000-watt digital surround sound system and be among IMAX's largest, with a screen towering 71 feet high by 95 feet wide and the capacity to seat nearly 700. The first signing in Pakistan follows on IMAX's recent expansion in China, India and Russia, where consumer demand has helped fuel growth of the IMAX theater network.

http://www.filmstew.com/Content/Article.asp?ContentID=10004

this is old man and some changes have also been made, location would now be dongi stadium on mm alam road and will not have an infotainment park anymore, but cost of project is gone up.

Construction sector picks up with fast pace in Pakistan
Pakistan Times National News Desk

ISLAMABAD: The construction sector has picked up with fast pace in the country, attracting $210 million foreign investment this week to build housing units in different cities.

Official sources said, with timely intervention of the government, the unproductive “plot business”, which created hype in the market a few months back has slowed down and the investment in estate business is gradually shifting to construction sector now. A direction has been given to this business, the sources said.

Karachi City government has signed an agreement with Kanooz Group of Saudi Arabia to build 7,000 low cost houses in Korangi area with the investment of $100 million.

1600 villas in Lahore

On Wednesday an agreement was signed with China State Construction Engineering Corporation to construct 1600 villas with Chinese technology at the cost of $110 million on Multan Road in Lahore.

A project to construct 1400 feet tower in Karachi has also been finalised with the assistance of a private group from Gulf countries at the cost of billions of rupees.

All the projects are going to be started in early next year which will create job opportunities for thousands of workers.

Capital Development Authority

In Islamabad, Capital Development Authority is planning to attract foreign investment in building hotels, plazas and housing units. A process has been started for inviting bids from developers including foreign investors to construct five-star hotels in capital city.

The CDA is also preparing strategy with close coordination with Ministry of Housing to build thousands of multi-storey apartments in new sectors for government employees and general public. For this purpose, bids will be invited from domestic and foreign investors.

The CDA sources said investment to the tune of billions of rupees is expected in Islamabad in coming days

Aziz Invites Chines Firms to Pakistan

Shanghai, Dec 18 (IANS) Pakistan Prime Minister Shaukat Aziz Saturday invited Chinese businessmen to enhance their commercial activities in Pakistan, Online news agency reports.

Pakistan offers an ideal business climate and the government is facilitating foreign investments in telecommunication, oil and gas, shipping and other sectors of the economy, he said.

Aziz was speaking on the sidelines of a ceremony where a memorandum of understanding was signed between the Pakistan Software Export Board (PSEB) and ZTE Telecom Corporation, a Chinese telecom equipment manufacturing company.

Under the $10.5 million pact, ZTE Corp will manufacture telecom equipment in Pakistan and export them as Pakistan-made goods.

On the occasion, another agreement was signed between a Pakistani fan-manufacturing company and the Chinese firm Midi.

The Chinese company will offer technical assistance and expertise to Pakistani manufacturers in producing air conditioners, microwaves and kitchen accessories.

Aziz told reporters the agreements Pakistan and China had signed would increase bilateral trade and attract more Chinese investment to Pakistan.

Pakistan To Exhibit Products In Latin America Next Year

KARACHI, Dec 21 Asia Pulse - Federation of Pakistan Chambers of Commerce and Industry (FPCCI) will organise 'Made-in-Pakistan' exhibition in Brazil, Argentina and Mexico early next year, where Pakistan's exportable goods will be displayed and put on spot sale. This was stated by Arshad Alam, Vice-President FPCCI, while addressing a press conference here at Federation house.

He said that there was a lot of potential for various Pakistani products such as home textiles, leather goods, rice, hand-knotted carpets, sports goods, surgical instruments and pharmaceuticals in the international market.

Arshad Alam said FPCCI in return would also provide all facilities to businessmen from Brazil, Argentina and Mexico for exhibiting their products in Pakistan.

The FPCCI vice president, who along with seven other businessmen was the member of President Musharraf's entourage during the Latin American visit, said that the President acted as true salesman of Pakistan during his recent visit.

He said that on behalf of FPCCI he signed an agreement with the Argentine Federation of Chambers of Commerce and Industry establishing Pakistan- Argentina Business Council, which can be used as a platform for the promotion of bilateral trade.

http://au.news.yahoo.com/041221/3/s9rv.html

Pakistan, Netherlands Discuss Trade Ties

ISLAMABAD, Dec 21 Asia Pulse - Pakistan Commerce Minister Humayun Akhtar Khan on December 19 held a meeting with his Dutch counterpart Ms C.E.G. Van Gennip at The Hague The Netherlands, and discussed issues of mutual interest, including bilateral trade relations.

Pakistan's Ambassador to The Netherlands Mustafa Kamal Kazi, Economic Minister Brussels Tariq Puri and Commercial Secretary The Netherlands Sarah Saeed were also present during the meeting.

Van Gennip warmly welcomed the Minster of Commerce to The Netherlands and recounted the recent visit of President Musharraf as very successful in revitalising the economic ties between the two countries.

Humayun Akhtar emphasised the Netherlands was a very important trading partner of Pakistan in the European Union.

He thanked the Dutch government for their support in the past on important trade issues, according to a press release issued here.

Being a country with a most liberal trading regime, Pakistan was able to appreciate The Netherlands' liberal stance in international trade matters.

The Commerce Minister expressed the view that the two countries' bilateral trade had much potential of growth and for this greater market access to the European Union would play an important role.

http://au.news.yahoo.com/041221/3/s9rs.html

Pakistan's Exports To The Us Rise 13% Jan-Sept

KARACHI, Dec 21 Asia Pulse - The Florida-based American Importers Association (AIA) says Pakistan's exports to the United States have risen 13 per cent to $2.15 billion in the first nine months of 2004 compared with $1.904 billion in the year-ago period.

"The AIA has just announced that imports of Pakistani goods into the USA for the first nine months of 2004 were $2.15 billion, an increase of 13 per cent over the $1.904 billion in the same period of 2003," said a press release of the Association, which was received on December 18.

Phillip W Byrd, Director General of the Association, said: "The AIA predicts that exports to the USA from Pakistan will total approximately $2.28 billion in 2004."

"Pakistan is America's 51st largest import trading partner," said Byrd in the press release of the Association, which is based in Safety Harbor, Florida, USA.

"With American consumer confidence improving, exports from Pakistan to the USA increased this year," said Byrd.

(PPI)
http://au.news.yahoo.com/041221/3/s9rw.html

Pakistan To Exhibit Products In Latin America Next Year

^^ This isn't exactly FDI News, its just showcasing. FDI news would be like "Microsoft plans to invest in Pakistan"

:D

Close enough...

anyone heard news about micrsoft investing in Pak as regional hub and manufacture there products in pak

Here is the latest on Microsoft. So far they seem to be signalling intent.

Microsoft wants to become strategic partner of Pakistan

ISLAMABAD: Microsoft Corporation has expressed its desire to be a strategic partner of Pakistan in promoting E-government and other projects of information technology.

Chairman Middle East, Microsoft Corporation, Emre Berkin stated this in his meeting with Prime Minister of Pakistan Shaukat Aziz on Monday here at the PM House.

The Chairman apprised the Prime Minister of Microsoft's growing interest in Pakistan. He said the country could be made the regional hub of Microsoft's products.

He also informed the Prime Minister of plans to set up Microsoft Training Centers, to train professionals who can serve growing economy of Pakistan.

He indicated that Pakistan has great potential of playing an important role in IT services.

Prime Minister Shaukat Aziz the growth of IT and Telecom sectors was one of the key priorities of his government.

He said Pakistan was striving to create a large pool of talented and qualified IT professionals to meet the challenges of globalization and play a major role in software development.

The Prime Minister said the government was making progress on its e-government plan but said it would involve a major change in the procedures and work flows with the induction of automation.

Another article which makes it a little more rosier !! :)

Pak could be made the regional hub of IT: Emre Berkin

ISLAMABAD, December 21 (Online): The Chairman Microsoft Middle East Region, Microsoft Corporation Emre Berkin called on Prime Minister Shaukat Aziz at the Prime Minister House on Monday here and discussed matters relating the development of IT sector in the country.
During the meeting, the Chairman Microsoft, informed the Prime Minister of the Microsoft 's growing interest in Pakistan. He said that that the country could be made the regional hub of Microsoft 's products. He also informed the premier of the corporation's plans to set up Microsoft Training Centers, to train professional who can serve the growing economy of Pakistan.

He indicated that Pakistan has great potential of playing a worldwide role in IT services. The chairman also showed interest in becoming a strategic partner with government for promotion of E- Govt and other IT related projects.

Talking to the chairman, Prime Minister appreciated the efforts of Microsoft to promote Pakistan IT capacity. He said that the country has great potential to become an international player in this field. While renewing the government's commitments to developing and promoting it, he assured all out support to corporation in expanding its activities and operations.

Minister for and Telecom Owais Ahmad Leghari and Minister of State for IT Asjad Mahi were also present on this occasion.

India plans investment in Pakistan

By Our Correspondent

NEW DELHI, Dec 20: A Joint Study Group (JSG) to be co-chaired by the Commerce Secretaries of India and Pakistan would, among other things, look at certain preferential trading arrangement on goods , services and investments on a fast-track basis, Indian Minister of Commerce and Industry Kamal Nath said on Monday.

He told the Rajya Sabha, in reply to an MP's question, the JSG would also discuss the possibility of enhancing economic cooperation in other areas. The detailed terms of reference of the JSG would be finalized after further consultations between the two sides in its first meeting likely to be convened shortly, he said.

Explaining the background of the JSG, Mr Nath said it was proposed on the margins of the 4th Saarc Commerce Ministers meeting in Islamabad on November 22-23 when the Commerce Ministers of India and Pakistan met to discuss a roadmap for promoting trade between the two countries. During this meeting, they had agreed to set up the Joint Study Group.

Turning to ties with China, Mr Nath also said that India would make efforts to further expand and diversify its current export basket to China, even as the calendar year's statistics of the Chinese Customs Authorities indicate that bilateral trade between India and China has for the first time already touched $10.84 billion during January to October 2004, showing an impressive growth of 82.53pc over the corresponding period of 2003.

Former Chinese Premiere Mr Zhu Rongji, during his visit to India in January 2002 had proposed increasing bilateral trade to $10 billion. In an interview to the Wen Hui daily of Shanghai here, Mr Nath indicated that even on the basis of the financial year data (2004-05), available for the first five months (April to August'04), two-way trade between India and China was all set to cross the $10 billion mark.

Rs4.6 billion financing for cement plant

The signing ceremony of term financing for Rs4.6 billion for 6,000 tons per day cement project of Bestway Cement Limited in Chakwal district was held here on Monday night.

Bestway Group UK Chairman M. Anwar Pervez and Chief Executive Officer Zameer Choudhry attended the ceremony. The financing was arranged by Habib Bank and Muslim Commercial Bank through a syndicate. The syndicate consists of Habib Bank, Muslim Commercial Bank, Bank of Punjab, Allied Bank of Pakistan, Standard Chartered Bank and Faysal Bank Limited.

Speaking on the occasion, Anwar Pervez said that a new plant of Bestway Cement would be set up at Chakwal at a cost of Rs7 billion. The term financing of Rs4.6 billion has been arranged through a syndicate of banks, while Bestway Cement will also come up with a sum of Rs2.5 billion.

Software exports jumped 60% last year; lets see what happened this year.

Aziz and Musharraf seek trade ties with Saudi

ISLAMABAD: President Pervez Musharraf and Prime Minister Shaukat Aziz on Wednesday hoped that Pakistan and Saudi Arabia would increase cooperation in trade and defence.

The president and the prime minister met Prince Abdul Aziz Bin Meteb Bin Abdul Aziz al Saud, Kanooz International Holding chairman, who called on them separately at Army House and Prime Minister’s House.

President Musharraf said both countries had the same points of view on regional and international issues. He invited Saudi investors to invest in Pakistan’s agriculture, water and power, construction, information technology and telecom sectors. He said poverty was on the decline in Pakistan and that the government would continue reforming the economy in order to attract foreign investment.

Mr Aziz said that Pakistan had taken centre stage regarding investment because of the government’s liberal investment polices offering lucrative profits. He said increasing GDP had triggered the demand for energy and increased investment opportunities. “Housing and construction and services have great potential for investment,” he added. agencies

ICI plans to invest $16 million in polyester plant expansion

ICI Pakistan Ltd has planned to invest $16 million to expand its existing staple fibre plant at Sheikupura to improve its profitability. According to a statement issued by the company to the Karachi Stock Exchange, ICI Pakistan Limited said that the project agreement was signed on December 21 in the UK with technology suppliers Chemtex Overseas Inc utilising Invista (formerly DuPont) know-how.

The project scope encompasses modernisation, upgrading and de-bottlenecking of the current capacity to achieve production of an additional 10,000 tonnes per annum.

The ICI Pakistan board of directors have approved extension of its polyester plant at Sheikhupura by modifying the CP Polymerisation Unit in the Polyester Plant and installing an additional Staple Fibre Line and ancillary equipment all connected to the aforesaid Polyester Plant.

As a result of this the company intends to enhance capacity by 10,000 tonnes per annum from 112,000 tonnes per annum to 122,000 tonnes per annum and deliver cost efficiencies, which would have a favourable impact on the profitability of the business. The project cost for the local and overseas agreements will be approximately $16 million.

David J Gee, Executive Vice President for Regional and Industrial Business, ICI UK, John R. Stoney, Chief Executive, ICI Pakistan Limited, Asif Jooma, Vice President, Polyester Fibres Business and Thomas H. McGannon, President and CEO, Chemtex, were present at the signing ceremony.

"The decision to make this investment is evident of ICI's ongoing commitment to business growth in the region," Gee said while highlighting the significance of the investment.

The ICI will invest $16 million on de-bottlenecking the existing Continuous Polymerisation Plant and replacement of two of its small scale batch polymerisation spinning and draw lines with a single state-of-the-art line, retaining one batch polymerisation line for manufacturing specialty products for which ICI Pakistan is currently the market leader in the domestic market.

Work on this project will commence in January 2005 with commercial production targeted for Q2 2006. "This investment will enhance the capacity and improve the cost effectiveness of the business through improved efficiencies and lower energy consumption," Stoney said.

The technology suppliers, Chemtex Overseas Inc, were also responsible for the successful 44,000 tonnes per annum expansion at Sheikupura in 2002, Jooma said. "This investment by the ICI in its fibres business reinforces our commitment to our customers and our confidence in the continued growth of Pakistan textile industry."

McGannon indicated this was the third contract between ICI Pakistan and Chemtex, and that "we have found ICI Pakistan to be an outstanding organisation, a demanding customer, and fully committed to the polyester business."

Pakistan invites Poland for investment

http://www.geo.tv/news_images/pakistan/24-Dec-04-e14f069a-b3c2-4a4b-af60-17a0e291400apoland_lpic.jpg

ISLAMABAD: Pakistan has invited Poland to invest in information technology, communication, oil and gas sectors, well-known sources reported.

Addressing a seminar held here today, Federal Minister Dr Abdul Hafiq Sheikh said this adding that Pakistan and Poland have greater opportunities to begin joint investment in different development areas.

He said: “Poland can prove a better market for Pakistan-made products.”

Polish Ambassador, Mogdan Morchvski, while addressing the seminar said Poland was safe and credible partner for investors and traders guaranteeing a business-friendly environment.

He said exports from Poland to Pakistan comprised earthmoving machinery, agriculture tractors, industrial machinery, pharmaceutical components, milk, powder
paper, glass, foodstuffs and hand tools.

He added imports from Pakistan made up of textile fabrics, garments, carpets, cotton yarn, leather product, rice, sports goods, surgical instruments, machine parts, dry fruits and seafoods.

The seminar was jointly organized by the Embassy of Republic of Poland in collaboration with European Culture Investment and Trade Institute (ECITI),
Islamabad Chamber of Commerce and Industry (ICCI) and Rawalpindi Chamber of Commerce and Industry (RCCI).

Poland Commercial Counsellor Dominik Malek gave a detailed presentation on Polish engineering goods, chemical industry and expressed the interest of Polish companies in Pakistan.

Representatives of ICCI and RCCI also spoke on the occasion and presented various aspects of Pakistan-Poland economic relations.

He said the Polish Embassy is working in order to further enhance bilateral relations by developing economic cooperation with Pakistan.

I think Pakistan is among the last to get IMAX theatres. Maybe because of all the terrorist training camps that are present in the country. The IMAX theatre will provide entertainment for all the terrorists. They need it. LOL :ancient:

I don't find that very funny raghu.

I think Pakistan is among the last to get IMAX theatres. Maybe because of all the terrorist training camps that are present in the country. The IMAX theatre will provide entertainment for all the terrorists. They need it. LOL :ancient:

:weirdo:

Why bother to register if you get brigged in your first post? Unless of course you wanna start a fight. Bother about your own country rather than about other nations.

Ignore him everyone, he's just a guy out to create trouble or one of our old friends right here on ssc behind a new face ;). Wonder why he didn't make a single post in the India forum and descended straight away to this, and that tone and manner are so uncannily similar to some others on here.......some usual India obsessed trolls come to mind. :lol:

I think Pakistan is among the last to get IMAX theatres. Maybe because of all the terrorist training camps that are present in the country. The IMAX theatre will provide entertainment for all the terrorists. They need it. LOL :ancient:

Yeah and Good guys always finish last! Plus even if we are the last ones, we'll get the best & latest technology!

Stupid ass bucko!

Raghu has been banned, an IP check on him turned up no matches. Some people are so daft that its not even worth talking about them.

Cool, is there one in Karachi?

no i am afraid thats the only one?

an anyways okay we are getting a IMAX theatre but what will we watch? lol

It has been in the news for toooo long. Can someone post the renderings or images atleast?. I like to see them.

Not design has been given but I found information on a website.

Format:1570
Two Dimensional/Three Dimensional: 3D
Flat/Dome: F
Seats: 700
Date of Completion: 9/30/2005

Lahore is the only city so far who has an IMAX which will certainly be built. There are two planned for Karachi but so far it hasn't been decided for certain; the problem is where to place them.

Imax to open in Pakistan
Globe and Mail Update
Monday, October 25, 2004

TORONTO — Imax Corp. said Monday it has signed a deal to install an Imax theatre in Pakistan. Financial terms of the deal were not released.

The Canadian big screen movie company said the theatre will be part of a shopping and entertainment park the government is developing in Lahore.

The park is expected to open by September 2005.

link (http://www.theglobeandmail.com/servlet/Page/document/v4/sub/MarketingPage?user_URL=http://www.theglobeandmail.com%2Fservlet%2Fstory%2FRTGAM.20041025.wimax1025%2FBNStory%2FBusiness&ord=1104857578401&brand=theglobeandmail&force_login=true)

US-Based Firms Mull Investments in Pakistan: ABC

ISLAMABAD, Jan 4 Asia Pulse - A large number of multinational companies from the United States (US) are planning to expand their business in Pakistan.
Presently, 15 American companies are working in the country.

All are members of the American Business Council (ABC), which has recently conducted a survey to evaluate prevailing business environment in the country.

After the survey, more than 90 per cent of the companies were of the view that the business environment in the country was conducive and improving gradually.

President of the ABC, Nadeem Karamat, said that a large number of multinational companies are planning to expand their business in Pakistan keeping in view the improvement in investment environment in the country.

Free trade policy and several other steps taken by the government are encouraging the multinational companies to make investment in Pakistan.

http://asia.news.yahoo.com/050104/4/1u48h.html

Not design has been given but I found information on a website.

Format:1570
Two Dimensional/Three Dimensional: 3D
Flat/Dome: F
Seats: 700
Date of Completion: 9/30/2005

Lahore is the only city so far who has an IMAX which will certainly be built. There are two planned for Karachi but so far it hasn't been decided for certain; the problem is where to place them.

700 seat capacity. I'd say thats big enough.

Mutual Funds investment in Pakistan stand at $1.70 billion

http://www.geo.tv/news_images/business/05-Jan-05-01d56328-7362-48df-8ff3-37faa873f6camutual-funds_lpic.jpg

KARACHI: The volume of investments in Mutual Funds within the country stands at $1.70 billion.

Addressing a seminar here, senior vice president of World Bank, Adnan Hassan told that the volume of investments in Mutual Funds in Pakistan as compared to other countries stood quite low. He told that 53 percent of US investments was in mutual companies while the aggregate volume of investments stood at $497 billion. Similarly, Mutual Funds investments in India amounted to $33 billion, he added.

Adnan Hassan pointed out that for any raise in investment in Mutual Funds in Pakistan, relevant laws needed to be improved first to attract maximum number of investors towards it.

Has construction even started yet?

ISLAMABAD, Jan 10: Germany and UAE will invest $3 billion in hydel power generation and production of Mercedes Benz cars and trucks in Pakistan.

A six-member delegation of M/s Daimler Chrysler of Germany and Coastal Group of UAE told the Minister of State for Privatization and Investment Umar Ahmed Ghumman they planned to invest about $3 billion in the country.

Out of the total amount, about $2 billion would be invested in hydel power generation, while the rest would be invested in automobile sector to set up production plant for Mercedes Benz cars and trucks, the group observed.

During the first phase, the group would produce trucks for defence forces and set up a production line for two new commercial models of Mercedes Benz cars in addition to constructing the tallest high-rise 'international commercial city' to provide offices/show rooms to the multinational companies (MNCs).

In the second phase, they will start manufacturing commercial trucks. Mr Ghumman had held a series of formal and informal discussions with the top management of the group in order to persuade them to invest in Pakistan, which, according to the minister, was now becoming more open to the foreign capital due to domestic economic reforms by the government.

Assuring full cooperation on behalf of the government of Pakistan and Board of Investment (BoI), the minister pointed out that out of the more than 600 foreign companies in Pakistan, 300 were MNCs.

The return on equity which ranged between 30 per cent and 40 per cent proved that Pakistan was a place where business environment was conducive for foreign investment, he said.

No foreign company, which had invested in Pakistan, had wound up its business due to losses, the minister claimed. Pakistan, he said, was a gateway to the Central Asian Republics and offered tremendous opportunities to the investors to further expand their business.

With the gradual improvement in law and order situation in Afghanistan, the minister said, lucrative opportunities of export would be available to foreign investors to reach the European markets.

Pakistan's investment policy, Mr Ghumman maintained, was liberal as compared to any other country of the region. President Pervez Musharraf and Prime Minister Shaukat Aziz, he claimed, were dedicated to ensure the continuity of policies, good governance, liberalization and facilitation to foreign investors. The business group also included Chairman Coastal Group, UAE, Yusaf Najibi, Senior Vice President (SVP) and Daimler Chrysler, Dr Thomas Hegel.

ISLAMABAD, Jan 10: Germany and UAE will invest $3 billion in hydel power generation and production of Mercedes Benz cars and trucks in Pakistan.

A six-member delegation of M/s Daimler Chrysler of Germany and Coastal Group of UAE told the Minister of State for Privatization and Investment Umar Ahmed Ghumman they planned to invest about $3 billion in the country.

During the first phase, the group would produce trucks for defence forces and set up a production line for two new commercial models of Mercedes Benz cars in addition to constructing the tallest high-rise 'international commercial city' to provide offices/show rooms to the multinational companies (MNCs).

In the second phase, they will start manufacturing commercial trucks. Mr Ghumman had held a series of formal and informal discussions with the top management of the group in order to persuade them to invest in Pakistan, which, according to the minister, was now becoming more open to the foreign capital due to domestic economic reforms by the government.

Assuring full cooperation on behalf of the government of Pakistan and Board of Investment (BoI), the minister pointed out that out of the more than 600 foreign companies in Pakistan, 300 were MNCs.

No foreign company, which had invested in Pakistan, had wound up its business due to losses, the minister claimed. Pakistan, he said, was a gateway to the Central Asian Republics and offered tremendous opportunities to the investors to further expand their business.

---------------------------------------------

Nice .. Hydel Power, Mercedes-Benz and Highrises!

This is good, we need cars from countries other than japan, previously they've held a monopoly over our domestic market (usually due to loans being handed to the administration at the same time).

"No foreign company, which had invested in Pakistan, had wound up its business due to losses"

Thats because they've all left because of security reasons!

This is just the type of major investment that our country currently needed to further boost it. There were signs of stagnation beginning to set in, but this is major investment ... great news :)

British businessmen to invest £70m in Pak

British businessmen have expressed their willingness to invest £70 million in various sectors in Pakistan including aviation, tourism and agriculture during the next three years.

According to a statement issued by the Board of Investment (BoI), a UK-based business group held a meeting with Minister of State for Privatisation and Investment Umar Ahmed Ghumman and discussed investment opportunities in the country.

The British delegation comprised Tasejad Jaffrey, Robert Hardless, Subthain Jeffrey, David Collick, Jafar Mehdi Abedi and Capt Fahimuddin.

The business group is planning to start a flight from Manchester to Islamabad from July this year.

It is the first international British-Pakistani airlines that has been given permission to operate on an international route into Pakistan.

The state minister informed the British business group that the Pakistan government had introduced structural policy reforms and all the positive macro-economic indicators proved that the country was an investor-friendly state pursuing business-friendly policies. The government is pursuing a transparent policy of privatisation, liberalisation and deregulation, he added.

The minister identified various areas of investment including processing, warehousing, packing, grading and vexing of vegetables and fruits for export.

He said Pakistan's mountainous region offered places for skiing even during the summer season. Shortage of five-star hotels in Pakistan also offers tremendous opportunities to foreign investors to set up hotels and resorts, he added.

http://www.khaleejtimes.com/Displayarticle.asp?section=subcontinent&xfile=data/subcontinent/2005/january/subcontinent_january287.xml

These look like the Global Spirit Airlines dudes. Well i hope that their investment does come in, because this is worth over 1 million dollars ... so combined today over 4 billion dollars worth of investments have been announced from Pakistan.

I think i wont be alone in saying .... not bad at all !!

Yeah, I'm excited about the Highrises! :D Imagine Shareah Faisal turning into the Sheikh Zayed road!

Exel plans Expansion in Pakistan

http://www.urbanpakistan.com/images/topics/exel_pakistan.jpg

KARACHI: Exel, the global leader in supply chain management on Saturday announced to expand its operations in Pakistan with the opening of its new country headquarters. This comes at a time when local, as well as multinational companies, are looking for the full range of integrated supply chain services to optimise their manufacturing and distribution operations.

Speaking at a press briefing at Karachi Press Club, CK Lee, CEO of Exel, Asia Pacific, told about the significant challenges as well as the opportunities that lay ahead for Pakistan with the emergence of the new economic trade zones and alliances.

"This is a highly important market for Exel, and witness to this is the investment that we have made in this new facility." Asad Tariq CEO Pakistan who was also present on the occasion.

CK Lee said, the operating from four offices at Karachi, Lahore, Islamabad and Sialkot, with over 130 employees, Exel in Pakistan provides support to all of the country's industrial and commercial centres.

The new office will provide integrated airfreight, seafreight and contract logistics services for both export and import services supporting customers in complex and time-critical industries such as apparel, fast-moving consumer goods, pharmaceuticals, hi-tech, healthcare and telecommunications.

Masroor Khan, CEO, Pakistan Exel said, "We aim to create awareness in the market and our mission is to become a supply chain market leader in Pakistan."

"The new office will further expand Exel's business and will meet new challenges in the logistics industry.

"Pakistan is rapidly expanding as a manufacturer of retail and consumer goods with locally produced merchandise being sold in the fashion capitals of the world. In order to compete successfully, local companies will need to adopt best supply chain management practices allowing them to optimise delivery times and to integrate electronically with their customers around the globe," concluded Khan.

Nissan's here .. they'll be launching their fleet of cars in a few weeks.

ISLAMABAD, Jan 24: The flow of Foreign Direct Investment in July-December 2004 reached $445 million as compared to $ 277 million during the corresponding period last year, registering 61 per cent growth.

According to a press release issued by BoI on Monday, the substantial increase in the FDI can be attributed to the good governance, improvement in policies and Pakistan's image abroad.

The major sectors which attracted notable FDI were oil and gas ($107.1 million), communication ($60 million),power, ($37.4 million), chemicals ($28.1 million), trade ($23.3), financial business ($45.5 million) and others ($ 28.1 million).

The US has taken the lead during this period by investing $118.6 million and UK was second with FDI of $84.8 million. The share of other major investing countries in FDI during last six months came to: Netherlands 23.8 per cent, Japan 23.8 per cent, Hong Kong 14.8 per cent, UAE 12 per cent others 167.2 per cent.

The substantial increase in the flow of FDI is an indicator that the investment climate in Pakistan is improving. The number of queries received by the BoI and visit to Pakistan of foreign business delegation has increased manifold.

Recently, German delegation of M/s Daimler Chrysler and Coastal Group of the UAE visited Pakistan and expressed interest to invest $3 billion in Hydel-power generation and automobile sector.

The METRO Group has decided to establish 3 to 4 outlets/ stores at Lahore and Karachi. M/s Jeffery International Group of the UK who recently visited Pakistan is going to start flight operation from Manchester to Islamabad during this year.

I read couple of days ago that the UAE is the fourth biggest invester in pakistan. I dont have statistics though.

smussuw, that may or may not be true ... in any case, the UAE is certainly becoming a heavy investor in Pakistan ... this is also set to increase in the future. The investment is welcomed in Pakistan :)

Sustained macro-economic stability, along with a high rate of growth over six per cent, in an environment of improving relations with its neighbours, is attracting far more foreign direct investment than before.

The prospects of large scale investment are greater now than in the 1990s and prior to that. The investors now talk of investing billions of dollars rather than millions. The FDI in the first half of this financial year ending December was $445 million.

Although it was less than the half a billion dollars expected, it was 61 per cent more than the $277 milliom investment made in the same period last year. The indications for the future are far more attractive, running into billions of dollars.

The reasons are not only the attractive features for foreign investors but also, now the Arab investors find the West less attractive. Other countries find the US less attractive because of the steady decline of the dollar with no serious official effort to shore up the greenback.

When they want to take their capital out of the US, they do not want to find themselves heavy losers because of the shrinking dollar. And they welcome Pakistan's policy in respect of foreign investment with all sectors open to them and no restrictions on repatriation of profit or capital.

Above all, Pakistan's is a high profit economy as the performance of the multinationals demonstrate. The soaring Karachi Stock Exchange index too provides ample capital gains.

The largest investment so far announced is that of the German company Diamler Chrysler along with the Coastal Group of the UAE. They propose to invest $3 billion through two companies - one for production of hydropower on which $2 billion will be spent and the other billion dollars on the manufacture of trucks and then cars.

The choice of hydropower production is what the country, industry and foreign investors need. And with quite a few large dams coming up in the country, the new power company can make use of one of the dams for its power production.

The Norwegian telecom company Telenor which has been given a licence for the mobile telephone operations in the country plans to invest one billion dollars by 2010. The company also intends to open a franchise network equipped with the state-of-the-art facilities. With four mobile telephone companies already in operation. the country is to have two more, including Telenor and a UAE company.

The Jeffrey International Group of UK, whose principals recently visited Pakistan, is to start flight operations between Manchester and Islamabad to promote larger movement of cargo between the two countries.

The Metro Group has announced it would establish three to four outlets or stores in big cities like Karachi and Lahore. With its new policy of looking for opportunities for investment in foreign countries, particularly in friendly countries, China has been considering various investment options, of which Thar coal is only one.

China is expected to play a significant role in making large investment in Balochistan. Several Arab investors are interested in investing on house- building in large numbers for the low income groups.

And they have studied the prospects carefully before coming up with specific commitments. The chairman of Mecca cola World Toufiq Mahlouthi on a visit to Pakistan recently said his outfit would invest five million euro on a company here.

The American insurance giant, New Hampshire, is to expand its activities in Pakistan along with its sister company, the American Life Insurance Company. While these are welcome developments, ministers like Senator Tariq Azim, minister of state for overseas Pakistanis, should avoid exaggeration like that the our policies are so good they had helped to attract 300 per cent increase in direct foreign investment, as he did recently when he addressed Saudi investor in their homeland.

And now the government has issued no objection certificates to 53 pharmaceutical companies for setting up their companies in the Sundar Industrial Estate near Lahore.

How many foreign companies, not already represented in Pakistan will open their manufacturing outfits there? Several drug manufacturing firms are already exporting their products to the neighbouring countries from Pakistan including Afghanistan.

The number of investment missions visiting Pakistan has been on the increase. And unlike in the past, they are readily received by the President and the Prime minister and given a good hearing.

Seeing a former Citibank top executive as the prime minister they feel they can do business with him, unlike with a politician who has to be educated in the intricacies of foreign investment.

Of course, law and order is a significant problem for them. In that area they do not go by the assurances of the government. They make their own enquiries, including through their embassies and other foreign companies operating in Pakistan.

Creating such an environment is the responsibility of everyone in the country and not of the government alone. The government has to do all it can to achieve and maintain peace.

The government has of course to keep the rupee strong and fight inflation resolutely. Otherwise the foreign investors will find their profits in dollars or euro going down and down, while they go up in rupees as the exchange rate becomes unfavourable to Pakistan.

The US continues to be the top investor in Pakistan, with Britain as number two, as it has been for some years now. And the energy sector has the top priority among the investors whether that be to look for oil and gas or power production. The energy sector needs all the investment it can get and more, judging by the future demand which will exceed the current increase of 7 per cent annually.

Pakistan Proposes Preferential Trade Agreement With Morocco
Friday February 4, 03:54 PM

KARACHI, Feb 4 Asia Pulse - Commerce Minister Humayun Akhtar Khan has proposed a preferential trade agreement between Morocco and Pakistan to boost bilateral trade.

He was talking to visiting Moroccan Commerce Minister Mechahoure along with a delegation at the sidelines of the Expo Pakistan 2005. State Minister for Parliamentary Affairs Division Raza Yar Hiraj, Commerce Secretary Tasneem Noorani, Moroccan ambassador to Pakistan and President of the Centre for Export Morocco Ben Said were also present on the occasion.

Mr Khan suggested constituting an officials group from Pakistan and Morocco as a first step to identify products of export and import between the two countries. He said both the sides would streamline a tariff structure on identified items of exports.

The Moroccan commerce minister said his country offered immediate potential to Pakistani textile sector for the export of textile items worth US$1.2 billion to the US and other countries under free trade agreements.

Mr Mechahoure said Morocco wanted to develop bilateral ties with Pakistan and also sought joint ventures in agro-based industry, information technology, pharmaceutical, tourism and fertilizers with Pakistan's private sector.

Many big British firms have started moving to Pakistan to seize investment opportunities after an economic turnaround there during the past five years, said a leading British paper.

"Jaguar and Land Rover are expanding their operations to the country, and the big overseas retailers are starting to move in," said The Times in a comment on the booming economy of Pakistan.

Pakistan, it said is seen by them "as an alternative supplier to China and India. Asda already has a number of supply agreements with local textile manufacturers, Tesco is looking hard, and so are Carrefour of France and Target of America."

International Power, it said already owned 36 per cent of Kot Addu which was planning to release more shares to the public this month.

Big firms such as Shell, ICI and BAT have subsidiaries that are listed on the Karachi Stock Exchange. Premier Oil, a British exploration company, has stayed throughout the past 15 years. Tullow Oil, another exploration group, also has a presence in the region, said the daily.

"British businesses are starting to return to Pakistan and have faith in the country as new leadership and the improving economic landscape,"said the British paper.

It must be recalled here that Pakistan's envoy to London Dr Maleeha Lodhi has been striving hard to persuade British investors to capitalize on the investor-friendly ambience in the country while impressing upon them to distinguish between the realities on the ground and the perception abroad. Her efforts also helped convince about hundred British investors in the EXPO 2005 which concluded in Karachi on Saturday.

The chairman of the Board of Investment Waseem Haqqie was quoted as saying that Unilver and Procter & Gamble were now making returns of more than 100 per cent.

"Many British importers are doing well by sourcing goods from Pakistan. Dita, a hockey-stick maker, exports 20,000 sticks a year to Britain and 50,000 to Holland. British firms are also tapping the booming work on privatisation," said the daily

Chairman of Central Board of Revenue Abdullah Yousaf, it said, was confident that the country was going on attracting foreign companies.

"If we can maintain regional stability and a fiscal regime that is conducive to investment, we will see more foreign companies here," Yousaf was quoted as saying.-APP


http://www.dawn.com/2005/02/08/ebr3.htm

ISLAMABAD, Feb 10: The chairman Board of Investment, Wasim Haqqie has claimed that power and telecom sectors would attract foreign investment worth $10 billion in 2005 and 2006. "There will be $5 billion investment in each year," he maintained.

Talking to Dawn he said that Foreign Direct Investment (FDI) has started picking up due to an improved environment and increased investors' interest in Pakistan.

"We will cross $1 billion foreign investment during 2004-05 against roughly $850 million of the last financial year," he added. He said foreign investment in first half of this financial year stood at $450 million against $277 million in the corresponding period of 2003-04, registering 61 percent increase.

Responding to a question, he said that Private Power and Infrastructure Board (PPIB) had signed 35 Expressions of Interest (EoIs) with foreign investors.

He said that PPIB was scheduled to hold road shows on February 21 in Dubai and in March in the United States to attract more foreign investment in the power sector.

A number of international conferences, Mr Haqqie said, had been arranged to lure foreign investors who have started looking towards Pakistan as a safe and attractive destination for investment.

"We will be holding these conferences in Malaysia and Singapore in April, in the United States and Canada in June, Japan in July, France and the United Kingdom in August, Germany in September and Turkey in November," the BoI chairman said.

He said that 60-member Japanese investors' team was arriving here in the last week of this month to hold meetings with their counterparts and heads of the various organisations to make investment in Pakistan.

"Then the Malaysian investor's team, comprising about top 60 businessmen is reaching on 16 of this month to explore possibilities for making new investment here," the BoI chairman added.

With the setting up of textile city in Karachi, education city in Islamabad and marble city in Balochistan, he pointed out, one could hope for increased foreign and local investment coming in.

"Perhaps it would be surprising for you that a decision has been taken to construct top ten highest buildings in Karachi city which were likely to be inaugurated by President Gen. Pervez Musharraf within four to six weeks time," he said.

These highest buildings, he said, would be built on Karachi Port Trust (KPT) land that has just been purchased.

He said that a number of car manufacturing companies including Chevrolet of the United States and Reno of France had decided to establish their plants in Pakistan.

Mr Haqqie pointed out that there were 1,15,000 cars were manufactured in Pakistan during 2004 and their number would reach to 1,50,000 in 2005 and 200,000 in 2006 which showed increased economic and business activity.

"New players are coming both in the production of cars and motorcycles," he said adding that motorcycles production which was 1,50,000 four years ago would reach to one million in next two years.

He said five new cement plants were being set up in Karachi, Hyderabad and Chakwal and, "this clearly shows that business activity is greatly picking up in this part of the world."

The BoI chairman said that 220 foreign trade and business delegations have visited Pakistan from 40 countries during the last two years including the United States, UK, China, Germany and Japan.

$3.2b Gulf-South Asia Pipeline project: Qatar minister arrives Tuesday, will discuss gas pipeline

* Pakistan asked to play middleman in Qatar-India gas deal

By Khalid Mustafa

ISLAMABAD: Abdullah bin Hamad, Qatar’s second deputy prime minister and energy minister, will arrive in Pakistan on Tuesday to discuss the $3.2 billion Gulf-South Asia Pipeline (GUSA) project.

The Qatari minister will meet President Pervez Musharraf, Prime Minister Shaukat Aziz and Petroleum Minister Amanullah Khan Jadoon.

Both countries will discuss the modus operandi for laying the pipeline. Pakistan is considering importing gas from Turkmenistan, Iran and Qatar. The prime minister is scheduled to visit Iran by the end of February to discuss gas imports from Iran. India has also shown its willingness to negotiate its involvement in the three projects with Pakistan. The Turkmen oil minister is due in March to discuss the Turkmenistan-Afghanistan-Pakistan gas pipeline.

The total length of the proposed GUSA pipeline is 1,186 kilometres, with one intermediate compressor station at Diba in UAE. The initial gas flow would be 1,600 million cubic feet per day (MMscf) and the delivery point in Pakistan is Jiwani near Gwadar.

Sources said Qatar’s prime minister asked Pakistan some time ago to act as middleman by purchasing gas from Qatar and selling it in the Indian market.

The Sharjah-based Crescent Petroleum submitted a draft agreement to Islamabad in July last year for a 1,610 km offshore pipeline along the Iran-Pakistan coastline up to Jiwani, near Karachi, to transport 1.6 billion cubic feet of natural gas with an off take of 1,000 MMcfd from 2005 onwards.

Qatar, host to one of the largest US-Army positioning bases in the world, possesses the third largest natural gas reserves in the world, after Russia and Iran. It aims to become a major petroleum player in the coming decade with prospects of becoming the world’s richest nation in per-capita gross domestic product.

Qatar has also offered oil supplies to Pakistan as it wants to diversify its sources for security reasons. The Qatari minister will be discussing various options on that account with his Pakistani counterpart and Petroleum Ministry officials, sources said. An official said recent gas market studies had revealed that Pakistan would need to import up to 2.5 billion cubic feet per day by 2015 and by 2020, gas import quantities would escalate to around four billion cubic feet a day. The official said that if the project were undertaken, it would start delivering gas to Pakistan after four years.

http://www.dailytimes.com.pk/default.asp?page=story_13-2-2005_pg7_38

somebody would not have a news of imax in lahore

The inflow of foreign direct investment (FDI) has registered a 52 per cent increase during the first seven months (July-January) of the current fiscal year over the same period of the last year.

Official figures released by Board of Investment (BoI) here on Tuesday showed that the inflow of FDI during the period under review reached to $515 million against $339.5 million during the same period of last year.

The board expected that with the inflow of funds from M/s Kanooz Al Watan of Saudi Arabia for the purchase of KESC, the FDI inflows during the fiscal year would not only exceed $1 billion mark but would also be the highest in Pakistan's history.

Federal Minister for Privatization and Investment Dr Abdul Hafeez Shaikh said in a statement that the substantial increase in the FDI inflows could be attributed to the good governance, improvement in policies and Pakistan's image abroad.

During the period a record increase in portfolio investment has also been witnessed, which has been $92 million, bringing total foreign investment up to $607 million.

The major sectors which attracted FDI during the period under review were: Oil and Gas ($123.2 million), Communications ($72.1 million), Power ($43.4 million), Chemicals ($30 million), Trade ($27.5 million), Financial Business ($60.1 million) and others ($158.7 million). The United States has taken the lead during this period by investing $129.2 million while the United Kingdom stood second with $95 million investment.

The Narcissus Company to boost fashion industry in Pakistan


ISLAMABAD: The Manhunt International, the longest running male modelling contest in the world, have appointed The Narcissus Company as their National Director for Pakistan. "We are proud to appoint The Narcissus Company as our National Director for Pakistan and look forward to receive Pakistani delegate in Manhunt International this years," said Manhunt International President Alex Liu.

The Narcissus Company Executive Director Basil Bashar said, "We have also received written confirmations from both International and Mister Intercontinental of being appointed their national director as soon as their logistics are finalised, whereas talks for acquiring license from World are also underway."

Bashar said The Narcissus Company aimed to project Pakistan as moderate Islamic state abroad and wanted to boost its fashion exports, both human and material.

He further told, "Solicitation of applications from interested candidates is already underway under the endeavour 'The search is on ...' and the response is tremendous. Scrutinising of these applications has begun as well. Fashion intelligentsia of the country will interview short-listed candidates and final contestants will be selected. These contestants will be then put under intense training and will compete in the national pageant to be held in May.

http://www.satribune.com/archives/200503/inset_pso.jpg
Pakistan Army Decides to Take Over Largest Oil Companyhttp://www.satribune.com/archives/200503/pix_pso.jpg
ISLAMABAD, March 13: General Pervez Musharraf and his Army Corps Commanders have decided to hand over the country’s largest oil retailer, the lucrative Pakistan State Oil, to ex-army men running the Fauji Foundation, although publicly the process of privatization will go on to deceive the international community and interested bidders.

The decision has been taken in view of concerns expressed by some Corps Commanders that a crucial security asset like PSO could not be handed over to private companies, be they local or foreign.

With the take over of PSO, Fauji Foundation would become the largest corporate entity of Pakistan and would surpass all other corporations, whether private or public. It would also mark the permanent entrenchment of the Pakistan Army into Pakistan's business world, assuring top Generals a secure job and fat pay checks even after they retire from the Army.

The Privatization Commission (PC) has been trying hard to remove the apprehensions over the guarantees for security of supplies after the sale of PSO. These apprehensions were raised by the Defence Ministry at the behest of the Army to prepare its case for the take over.

"We have removed the apprehensions of the Defence Ministry over the Privatization of the Pakistan State Oil Company before its final bidding," an official of the Petroleum and Natural Resources Ministry said in January but his statement was ignored by commanders.

The official said the Army had raised the issue that in the process of Privatization of the state-owned oil company, meeting the strategic requirements of the country in the present geo-political situation should not be ignored.

The Privatization Commission has invited expressions of Interest (EoIs) from the qualified strategic investors to sell 51 percent equity stakes in the PSO together with management control.

He said, so far, companies, which have shown interest in the bidding of the PSO included Kuwait Petroleum Corporation (KPC), Fauji Foundation of Pakistan and MIDROC Holding Company from the Kingdom of Saudi Arabia.

PSO commands 70 per cent of oil and petroleum products marketing in Pakistan and during the first half of FY05, PSO sold around 5 million tons of POL products translating into sales revenues of around Rs 122 billion (over US$ 2 billion).

The company posted profit before tax of around Rs 4.1 billion and Rs 2.6 billion as profit after tax earning, up by 23 per cent over prior year period. This exceptional performance was due to increased operational efficiency, addition of a range of new products and services, and improved image and credibility of the company, an announcement said in February.

Based on this extraordinary performance, specifically during the era of intense competition and product substitution regime, the Board of Management announced an interim cash dividend of Rs11 per share translating into a cash payout of Rs 1.9 billion to its shareholders, Rs4 per share more than the prior year period.

The Board noted that PSO has been successful in enhancing its overall sales volume by 27% over the last year. The company achieved the honor of being the first Pakistani company to be cited amongst best international practices in this year’s Global Corporate Citizenship Initiatives (GCCI) report, jointly produced by the World Economic Forum, Switzerland; The Prince of Wales International Business Leaders’ Forum, UK; and the Kennedy School of Harvard University, USA.

hmm

ISLAMABAD, March 13: Prince Al-Waleed bin Talal bin Abdul Aziz of Saudi Arabia, who arrived here on a two-day visit on Sunday, termed political atmosphere in Pakistan conducive for foreign investment and promised to initiate projects of mutual benefits in the country.

He described political stability brought about by President Gen Pervez Musharraf and economic structural changes introduced by Prime Minister Shaukat Aziz as positive signs which had made investment climate good.

After holding a 30-minute meeting with Mr Aziz at the Prime Minister's House, Prince Talal said he had come here not only as an ally of Pakistan but also as an investor to find suitable business projects.

Prime Minister Shaukat Aziz in his last visit to Saudi Arabia had invited Prince Talal to visit Pakistan to assess the investment climate and invest in the country.

Prince Talal said he would meet President Musharraf, federal ministers and officials during his stay to discuss investment opportunities available in the country. He appreciated the government's efforts in facilitating investors and said the country was at the brink of economic boom and the best days were yet to come.

Earlier, in his brief remarks, Prime Minister Aziz said that Pakistan offered numerous opportunities for investment with good returns. He said Prince Talal's visit would strengthen the multi-faceted and brotherly ties with Saudi Arabia.

^^^

Yep and right beneath that news is;

Qazi Hussain appeals shutter down strike on April 2

Lol .. Mullahs!

IMAX(R) MPX(TM) Theatre System Drives Momentum for IMAX in International Markets

Exhibitors Around the World Embrace New System to Quickly Open
Multiplex-Based IMAX(R) Theatres and Capitalize on Hollywood Releases in
IMAX's Format

LAS VEGAS, NV, March 14 /PRNewswire-FirstCall/ - At the International Day
Luncheon at the ShoWest 2005 conference in Las Vegas, IMAX Corporation
(NASDAQ: IMAX; TSX: IMX) today announced that since launching the IMAX(R)
MPX(TM) theatre system two years ago at ShoWest 2003, international exhibitors
have accounted for 70% of the system's sales. Of the 36 total theatre
agreements IMAX signed in 2004, 25 were with international operators, and 22
were for IMAX MPX systems. Exhibitors are increasingly adding retrofitted
IMAX(R) theatres to existing multiplexes, and doing so in record time, as an
IMAX theatre system can now be installed and operational in less than two
months. This short turnaround time is enabling exhibitors to rapidly join the
IMAX theatre network and take advantage of the proven benefits of operating a
multiplex-based IMAX theatre, including incremental box office returns and
differentiation from other locations in the area.
"We have been extremely pleased with exhibitor response to the IMAX MPX
system, which enabled us to sign more theatre contracts in 2004 than any year
in nearly half a decade," said IMAX co-Chairmen and co-CEOs Richard L. Gelfond
and Bradley J. Wechlser. "There has been heavy and increasing interest from
commercial operators around the world, as we continue to release today's
biggest Hollywood blockbusters in IMAX's format, and the economics of
operating multiplex-based IMAX theatres have improved considerably. Being able
to open retrofitted IMAX theatres in as little as eight weeks also presents us
with additional growth opportunities in developed markets like Europe, where
there are real estate challenges that can prevent building a new facility."
Interest in opening multiplex-based IMAX theatres has come from
exhibitors throughout the world, as evidenced by recent deals in Europe, Asia,
Latin America and the Middle East. Highlights by region include:

Europe
On February 2nd of this year, IMAX announced an agreement with Pathe
Netherlands, the leading exhibitor in the country, to install an MPX theatre
system at the number one multiplex in Amsterdam. The retrofitted IMAX theatre
will open to the public on March 25th - a testament to how quickly commercial
exhibitors can now join the IMAX theatre network. Last year, three separate
Russian exhibitors signed deals for IMAX MPX systems, largely driven by the
standout performance of Hollywood movies in IMAX's format at the NESCAFE IMAX
Theatre in Moscow.
Yelmo Cineplex, a joint venture between Loews Cineplex International and
Yelmo Films, signed an agreement for three IMAX MPX systems in early 2004. The
exhibitor opened the first ever IMAX MPX theatre during June of last year, and
will open its next in the heavily trafficked resort town of Malaga, Spain next
month. Leading European exhibitor Europalaces will also open an IMAX theatre
in April of this year, at the Gaumont Disney Village multiplex in Paris,
France.

Asia
Capitalizing on the IMAX brand and the strong moviegoing culture in The
People's Republic of China, IMAX has signed a series of multi-theatre deals,
including a six-theatre agreement with Lark International Multimedia, operator
of over 55 commercial theatres in China, including Hong Kong's highest
grossing complex. Reflecting IMAX's ability to transcend culture and language,
current agreements call for 22 IMAX theatres to be in operation in China by
2008, making it one of the Company's fastest growing markets.
The strong performance of multiplex-based IMAX theatres in Hyderabad and
Mumbai, India, where moviegoers have been paying up to three times the average
35mm ticket price to see IMAX DMR(R) (Digitally Re-mastering) films, helped
lead to an additional signing in Bangalore. India is slated to have eight IMAX
theatres in operation by 2008, and IMAX sees a great deal of potential to
further develop the IMAX theatre network in the country.
IMAX also entered Pakistan for the first time this past October, signing
a deal with the Government of Punjab Province to install an IMAX theatre in a
multi-function shopping and entertainment park in the city of Lahore.

Latin America
Cinepolis, the largest exhibitor in Latin America and eighth largest in
the world with more than 1,100 screens, signed a deal for three IMAX
multiplex-based theatres last September. The Cinepolis Perisur IMAX theatre in
Mexico City opened just two months later to sold out shows and excellent
audience response, and Cinepolis has since accelerated plans to open its
second and third IMAX theatres by as much as two years.
Further south, IMAX recently signed agreements to install two IMAX
theatre systems at multiplex locations in Guatemala City, Guatemala and
San Jose, Costa Rica, the first IMAX theatres scheduled to open in each
country. The deals increase the number of countries in the region scheduled to
have an IMAX theatre to five.

Middle East
In January of this year, IMAX announced an agreement with Kuwait National
Cinema Company, the largest commercial exhibitor in Kuwait, to install two
IMAX MPX theatre systems at multiplexes in Kuwait City. In 2004, a deal was
signed to install an IMAX MPX system in Istanbul, Turkey. The agreements bring
the total number of IMAX theatres scheduled to be open in the Middle East by
2007 to seven, including new multiplex locations in Dubai, UAE and Doha,
Qatar.

About IMAX Corporation
----------------------
Founded in 1967, IMAX Corporation (NASDAQ: IMAX; TSX: IMX) is the newest
distribution platform for Hollywood content and one of the world's leading
entertainment technology companies. IMAX delivers the world's best cinematic
presentations using proprietary IMAX, IMAX(R) 3D, and IMAX DMR technology.
IMAX DMR (Digital Re-mastering) makes it possible for virtually any 35mm film
to be transformed into the unparalleled image and sound quality of The IMAX
Experience(R). The IMAX brand is recognized throughout the world for
extraordinary and immersive entertainment experiences. As of December 31,
2004, there were 248 IMAX theatres operating in more than 35 countries.
IMAX(R), IMAX(R) 3D, IMAX(R) MPX(TM), IMAX DMR(R) and The IMAX
Experience(R) are trademarks of IMAX Corporation. More information on the
Company can be found at http://www.imax.com.

This press release contains forward looking statements that are based on
management's assumptions and existing information and involve certain risks
and uncertainties which could cause actual results to differ materially from
future results expressed or implied by such forward looking statements.
Important factors that could affect these statements include the timing of
theatre system deliveries, the mix of theatre systems shipped, the timing of
the recognition of revenues and expenses on film production and distribution
agreements, the performance of films, the viability of new businesses and
products, and fluctuations in foreign currency and in the large format and
general commercial exhibition market. These factors and other risks and
uncertainties are discussed in the Company's Annual Report on Form 10-K/A for
the year ended December 31, 2003 and in the subsequent reports filed by the
Company with the Securities and Exchange Commission.



SOURCE IMAX Corporation

KARACHI (April 01 2005): A high-level delegation of 30 senior French businessmen will visit Karachi on April 15 to look for investment opportunities and establishment of joint ventures here. The Board of Investment has drawn up a hectic programme to enable local entrepreneurs to meet French businessmen and avail of the opportunity of foreign investment/joint ventures. The delegation members will visit City Nazim's office in the afternoon on April 15 where a presentation in big infra-structure projects in Karachi will be made by heads of various departments of the district government.

They will also pay a courtesy call on the Sindh governor. They will also have meetings with the Citi-Group, Chartered Bank, Habib Bank, and some of the major Pakistani clients of these banks.

They will also hold meetings with autonomous organisations such as Defence Housing Authority (DHA), Port Qasim Authority (PQA), Karachi Port Trust (KPT), and Aga Khan Foundation.

KARACHI: Computer Associates (CA), an international management software company on Tuesday announced its plan to set up business in Pakistan as part of its regional expansion strategy.

Country manager of CA for Pakistan Marashi, addressing a press conference at local hotel said that the CA would establish a liaison office for its operations in Pakistan.

He said CA would recruit Pakistani IT professionals and start an extensive training programs to ensure a successful knowledge transfer.

Regarding the volume of investment CA plans to make in Pakistan, Marashi said it would be too early to give exact figures.

He further said that the direct presence brings with it a wealth of resources to benefit every customer, partner, and the community as whole.

He informed that CA would provide a direct support line to handle customer support calls to gain better understanding of customers’ business needs and provide them with a convenient and accessible interface with CA.

Replaying a question about why CA chose to invest in Pakistan, Marashi said that the CA was coming to Pakistan with a clear commitment message. "We believe that we are in the right place and at the right time," he added.

PM predicts industrial Pakistan in five years

CHAKWAL, April 9: Prime Minister Shaukat Aziz on Saturday predicted a very prosperous and industrial Pakistan in the next five years. He was addressing the participants at Kahoon Valley here after laying foundation stones of three cement plants and one paper mill.

The cement plants will bring in $500 million foreign investment and create employment opportunities for around 50,000 people.

The prime minister also performed a ground-breaking to provide natural gas to the industrial units and adjoining areas. He said that it was a red-letter day because an industrial revolution was dawning at the doorsteps of the people and a prosperous and stable Pakistan was just a matter of few years.

The prime minister was confident that 21,000 tons daily cement would be produced only from these three plants that would bring an economic change in this remote area. "Over 50,000 people will get jobs directly or indirectly from these projects."

He said the completion of the plants would generate economic activity and improve infrastructure of the area. He said Pakistan could become a major exporter of cement to the regional countries with the completion of these projects. He said Pakistan was one of the major cement exporters for the reconstruction work in Afghanistan and added the local cement industry was already working at full capacity.

Mr Aziz said the government had successfully created an investment-friendly atmosphere to attract foreign investment in the country.

The prime minister announced that the areas adjoining the four industrial units would be provided natural gas, and said the federal and provincial governments besides the investors would share funds for the construction of road network around the area. He promised that the environment of the area would be protected after the establishment of cement plants.

He appreciated Sir Anwar Pervez, owner of Bestway Cement and one of the top industrialists in the United Kingdom, for investing in the industrial sector of Pakistan.

Earlier, the prime minister laid foundation stone of the Chakwal cement plant at village Karolli, Bestway Cement plant at Tatral, gas supply at Khairpur and DG cement plant, and Nishat Papers Mills, a joint project of Kuwait's multinational company Al-Shoiba and Nishat Group of Pakistan.

Punjab Governor Khalid Maqbool, Chief Minister Chaudhry Pervaiz Elahi, Nishat Group chief executive Raza Mansha, Chakwal Cement chief executive Ahmad Hashmat, Bestway Cement chief executive Zamir Muhammad Chaudary and Shoaiba Company vice-chairman Faisal Al-Awadi also spoke on the occasion.

Elusive sell-off of PSO


By Dilawar Hussain

KARACHI, April 9: The Privatization Commission appears to have pushed forward its earlier deadline of June 30, 2005 for the sale of both Pakistan State Oil (PSO) and Pakistan Telecommunication Company (PTCL).

Listed at the stock exchanges, the elusive privatization, particularly of PSO, must have made millionaires of paupers and vice versa. Consider its impact during the March crisis. The PSO stock was trading at Rs402 on February 23, when the KSE-100 index stood at 8,180 points. And then began the unfathomable surge.

Two things that goaded investors in buying energy shares were the new "discoveries" of oil & gas, which weren't there, and the privatization of PSO and PTCL, which were not to be. But the PSO share rose by as much as Rs85 or 21 per cent to Rs487 in 20 days to March 15, the day when the KSE index had rocketed to its highest ever level of 10,303 points. Then began the steep decline, and the oil marketing company's stock -- now 20 days after the index's highest point - is trading at Rs415, which is Rs72 down from March 15, and the price gap between February 23 and this Friday has closed down to just about Rs13.

Reasons for the rise and fall of the stock market are yet to be fully understood. But anyone who may have sold the PSO stock short would be the one now purchasing plots in Karachi's DHS at five times its original cost.

A handout issued by the Privatization Commission this week noted that at the meeting of its board chaired by Privatization and Investment Minister Dr Abdul Hafeez Shaikh, certain recommendations were formulated for approval of the Cabinet Committee on Privatisation to further facilitate "early privatization of PTCL, NRL and other entities.

It also said that the meeting reviewed implementation of various decisions and the "status of ongoing and upcoming transactions and expressed satisfaction over the pace of the process".

Among the stock market listed privatization plays, the Privatization Commission had received expressions of interest (EoIs) from 14 parties for acquiring 26 per cent shares with the management control in PTCL, and eleven parties were pre-qualified for acquiring 51 per cent strategic stake in National Refinery Limited.

PSO and PTCL were earlier scheduled to be placed on the auction block by June 30 this year. Reports now suggest that the deadline for the sale of the telecom has been extended to 3Q05. While this was enough of a dampener, the PC Board surprisingly made no mention of PSO in its latest statement.

As said earlier, nothing has been as elusive as the privatization of PSO -- the country's largest oil marketing company with 63 per cent of the market share. Various deadlines set since as far back as 2002 have not seen the oil marketing giant pass on to the private hands. Date for firm bidding of PSO was last set on April 26, 2004. Before that it was given to understand that the bidding would take place in Nov-December 2003.

Public memory is short, but it was then in 2003 that the privatization minister had affirmed that all contentious issues regarding the privatisation of PSO had been settled. A few days later it was lamented that Kuwait Petroleum Corporation -- one of the two bidders (the other being Fauji Foundation) - had to seek approval from the Kuwaiti parliament and hence the closing date was extended from end-March to end-November, 2003.

Now on January 15 this year, the Privatization Commission assured that PSO and PTCL would go under the hammer by June 30. On April 2, hopes were rekindled when 15 firms showed interest in buying 51 per cent stake in PSO. Even at the time, the privatization minister reaffirmed that the June deadline for the sale was on. The latest handout coming from the PC, which does not mention the oil marketing giant, has created uncertainty. Why can't the Privatization Commission set an iron cast deadline and stick to it or as an alternative set no deadline at all.

FPCCI for boosting exports to Libya
KARACHI, April 9: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) President Ch Mohammad Saeed has expressed satisfaction that 19 Pakistani companies are participating in Tripoli International Trade Fair, being held from April 2 to 12.

The FPCCI chief, who is in Libyan capital, said in a message that he was studying the present level of Pakistan's exports to Libya and the measures required to boost Pakistan's exports, says a FPCCI press release issued here on Saturday.

The Pakistani companies were displaying items of textile, furniture, onyx, leather goods, brass, surgical instruments, sports goods etc., in the fair.

Saeed held meeting with Pakistan's chargé d'affaires in Libya G.R. Malik and discussed with him the promotion of Pakistan's exports. He pointed out that Pakistan's exports to Libya in 2003-04 totalled $2.67 million only and imports $0.14 million.

The FPCCI chief was scheduled to meet President of the Union of Libyan Chambers of Commerce and Industry, Governor State Bank of Libya and Chairman, Trade Fair Authority of Libya on Saturday to discuss the promotion of Pakistan's trade and economic relations.-APP

Market access Humayun to hold talks with US officials


By Our Reporter

ISLAMABAD, April 9: Commerce Minister Humayun Akhtar Khan will leave for Washington on Wednesday to discuss various measures with US trade officials for seeking maximum market access for Pakistani goods.

An official told Dawn on Saturday that the minister would meet newly-appointed US Commerce Secretary Carlos Gutierrz and other officials of the United States Trade Representative (USTR) Office.

The minister would discuss the status of free trade agreement (FTA) with the US officials and seek inclusion of Pakistan's textile products in the US Generalised System of Preferences (GSP) scheme.

President Pervez Musharraf during his visit to Washington requested the US president for initiating a dialogue on the FTA. The US has yet to fix a date for the talks.

Mr Khan would also discuss the inclusion of around 50 items which the US has promised to be included in the GSP scheme. These items included sports goods, surgical goods, cutlery products, etc.

Islamabad has already requested Washington to consider a reduction on import of Pakistan's textile goods. Pakistan's exports are deeply affected by United States policies that allow preferential treatment to a large number of economies, but the same was not allowed to Pakistan.

"Its effects are felt especially by Pakistan because of the high rates of tariff that the US imposes on textiles and apparels, the mainstay of Pakistan's exports," added the official.

Exports to Kabul rise to $422.5m


By Mohiuddin Aazim

KARACHI, April 9: Pakistan's exports to Afghanistan rose to $422.5 million in July-February 2004-05, from $223.8 million in a year-ago period.

This nearly 89 per cent increase has raised hopes that the full year export earning from the neighbouring country may reach $600 million. The Export Promotion Bureau had set the initial target for exports to Afghanistan at $500 million. "But I am sure we will exceed the target," said Minister of State and EPB Chairman Tariq Ikram when reached by Dawn over telephone.

He did not give his own estimate, but shared exporters' view that exports to Kabul may reach $600 million during this fiscal year ending in June, up from $390 million in the last fiscal year.

Export data compiled by the EPB show that exports of a large number of items to the neighbouring land-locked country have risen substantially during the first eight months of the current fiscal year. "Notably, the exports of construction materials and petroleum products have shown great progress," said Ikram citing regeneration of economic activity and reconstruction of infrastructure projects in Afghanistan as a key reason for this.

During July-February 2004-05, Pakistan exported $75 million worth of crude oil from petroleum and Bituminous minerals; $35 million worth of cement and $29 million worth of paints and varnishes. In the comparable period of the last fiscal year, exports of these items to Afghanistan had fetched $23 million, $17 million and $415,000 only.

Besides, as the war-torn country is limping back to normalcy with an elected government trying to establish its writ, demand for almost all items of daily use has increased in Afghanistan. And, Pakistan takes the lead in meeting this demand. According to an Asian Development Bank report, Afghanistan's total imports during fiscal year 2004 (ending on March 20, 2005) were estimated at $3.4 billion.

The EPB data show that Pakistan exported a vast variety of items of industrial and household use to Kabul during the first eight months of this fiscal year. Export of animal or vegetable fats and oils, for example, fetched $37.7 million followed by sugar ($28.8m); tableware and other household articles ($19.7m); plastic goods ($17.8m); soyabean oil ($10.7m); pumps for liquids, liquid elevators ($10.1m); milk and cream ($10m).

With eight months' exports to Afghanistan totalling $422.5 million, the country ranks sixth among Pakistan's largest export destinations. On the top is the USA, followed by the UK; the UAE; Germany and Hong Kong.

Exports to these six countries totalled $4.711 billion, which was more than 53 per cent of the total exports of $8.849 billion during July-February 2004-05.

Individually, exports to the USA totalled $2.039 billion, followed by the UK ($721.2m), UAE ($657.2m), Germany($442.7m), Hong Kong $428.7m and Afghanistan ($422.5m).

The EPB chairman claims that growth in exports to Afghanistan is an outcome of the EPB strategy designed in 2001 aimed at increasing exports to Islamic countries - clubbed together as countries with which Pakistan has special relations.

He also says that the decision taken in this year's trade policy of allowing Afghan importers to open letters of credit both in dollars as well as in Pakistani rupee has also played a key role in increasing exports to Kabul. "Besides, with Pakistani banks now operating in Kabul, trade facilitation has become a bit easier."

"Previously we focussed only on border trade with Kabul with hardly three dozen parties based in Peshawar being active but now traders from Karachi, Lahore and several other cities have also established business contacts in Kabul and are exporting their goods there."

In July-February 2004-05, Pakistan's total exports stood at $8.49bn. Exports to Kabul at $422.5m constituted about five per cent of the total.

I hope Allah makes him successful. And then some. Ameen.

u know im so scared that the people of pakistan will vote for a lame prime minister in the next election... l like this man and musharraf.. did u know pakistan was reaching bankrupcy before musharraf came to power ? (the history channel documentary on musharraf) .... shaukat aziz is doing very well for us too... in terms of economy and urban planning.... i just hope that if its not him, it will be imran khan. :)

imran khan?

no way hose!

Don't worry. As long as we have Musshy, Shauki will be the PM.

Sir Anwar Pervaiz is a self made multi multi millionaire. He's worth something like £500 million, with his Bestway food stores. Excellent to see him helping out his country of origin...

Dont worry this will never ever happen.
I Will also say as long as we have Musshy, Shauki will be the PM.

Its good to see the Govt. doing something worth commenting about!

I am afraid the MMA will come into power. Then, Pakistan will truly die a slow painful death.

MMA are in minority, how they will come into power
People of Pakistan made MMA strike un-successful

Greater telecom ties with France urged


By Our Reporter

ISLAMABAD, April 13: Minister for Information Technology Awais Ahmad Khan Leghari on Wednesday called for enhancing cooperation between Pakistan and France in the fields of telecom, satellite manufacturing and information technology.

"There is a considerable scope for such an interaction that can result in benefits for the businessmen and companies in the two countries," he said in a meeting with a group of French businessmen and investors led by Mazen Hamadallah currently visiting Pakistan to explore investment opportunities in various fields.

State Minister for Information Technology Ali Asjad Malhi, Pakistan Software Export Board Managing Director Dr Aamir Matin and other senior officials of the ministry were also present.

Mr Leghari apprised the delegation of the growth opportunities in the IT and telecom sector that had come up in a big way following the process of regulation and liberalization of the sectors.

"There is a huge amount of work available in Pakistan to be outsourced and the big companies such as Oracle, Microsoft, Sun Microsystems and IBM are already in the market to cash in on the business opportunities," he added.

He told the delegation that while new partnerships between the local and foreign companies were gaining momentum, the emphasis was on the training of quality workforce, transfer of technology and technical know-how leading up to management of businesses at the local level.

He urged the foreign companies seeking access to Pakistan's telecom and IT markets to partner with local players and software houses in a mutually beneficial relationship that helps raise the level of competence and quality of local products to be able to penetrate international markers.

LIAQUAT JATOI: The government's right policies have put Pakistan on the track of progress due to which many foreign countries are considering it a hub of investment. This was stated by Federal Minister for Water and Power Liaquat Ali Jatoi while talking to a six-member French delegation, led by Aatynsky Philipps, on Wednesday, says a press release.

The delegation appreciated the economic policies of the present government and saw Pakistan as one of the best places for investment. It apprised the minister of the French companies' desire to invest in Basha Dam and other power generation projects.

Welcoming the offer, Mr Jatoi said Pakistan required more water reservoirs for irrigation and power generation to meet future requirements. He said the government would soon be announcing mega projects and French investors would be given detailed information in this regard. He said Pakistan had to meet future demand of 5,500MW electricity by 2010 for which it needed huge investment in power sector.

Stocks recoup overnight losses by 184.59 points


By Our Staff Reporter

KARACHI, April 13: Stocks on Wednesday staged a broad recovery on active covering across the board triggered by attractively lower levels the market touched because of massive fall on Tuesday.

The KSE 100-share index recouped a good part of overnight loss, which was well over four per cent, by about three per cent or 184.59 points at 7,123.62 as compared to 6,939.03 a day earlier adding Rs51 billion to the market capital at Rs1,978 billion.

The market seems to have absorbed the likely negative fallout of 1.5 per cent increase in the discount rate at nine per cent from the previous 7.5 per cent after over two years by the central bank on Tuesday as investors flooded the market with fresh buying orders at the lower levels.

"Investors appear to have been encouraged to cover positions at the lower rates as there was no indication of rate hike by any of them to their customers in line with the State Bank move," one analyst said. "Banks will think twice to follow the central bank as they have their own clientele limitations," another said.

All the leading base shares, notably OGDC, Pakistan Oilfields and the PSO participated in the run-up under the lead of PTCL, which was massively traded on market talk of its early sell-off.

However, there is no strong financial fundamental behind the snap rally just in the backdrop of overnight massive falls but technical factors seemed to have worked in support of the market.

"The market needs only fresh investment of Rs10 billion to get back on the rails," says a leading floor broker adding "there is a lot of floating money around and someone must rope it in and financial traders help them in their effort to save small investors from fresh losses."

Plus signs were strewn all over the list, and major gainers were Pakistan Refinery, Attock Refinery, Atlas Honda, PSO, Shell Pakistan, Pakistan Oilfields, Wyeth Pakistan, which posted gains ranging from Rs13 to Rs49.

They were followed by Arif Habib Securities, Javed Omer, International Industries, HinoPak, and Artistic Denim, up by Rs7 to Rs16. Prominent losers were led by PPL, Noon Sugar, Sapphire Fibre, National Refinery and Mehmood Textiles, off Rs3.55 to Rs5.10.

Trading volume rose to 318m shares from the previous 63m shares as gainers forced a strong lead over the losers at 245 to 87, with 21 shares holding on to the last levels.

The most active list was topped by PTCL, higher by Rs2.05 at Rs60.15 on 116m shares followed by D.G.Khan Cement, up Rs4.45 at Rs64 on 26m shares, PSO, sharply higher by Rs18.45 at Rs393 on 23m shares, Pak PTA, firm by Rs1.35 at Rs12.60 on 20m shares, Pakistan Oilfields, higher by Rs19.70 at Rs282.65 on 18m shares, OGDC, steady by 30 paisa at Rs96 on 8m shares. Other actives included Fauji Fertilizer Bin Qasim, up Rs2 on 16m shares, Bank of Punjab, higher by Rs4.40 on 13m shares and Fauji Cement, up Rs1.35 on 6m shares.

FOWARD COUNTER: PTCL was also actively traded on this counter, up Rs2.10 at Rs60.90 on 13m shares followed by Kot Addu, up Rs3.65 at Rs52.40 on 8m shares, PSO, sharply higher by Rs1.6.75 at Rs395 also on 8m shares, OGDC, up 20 paisa at Rs96.85 on 7m shares. Pakistan Petroleum was an exception, which remained under pressure and suffered a fresh fall of Rs3.85 at Rs188.

DEFAULTER COS: The activity on this counter remained slow as leading investors remained busy in the ready section. Prices, however, showed fractional gains amid light trading.

Pak-France trade volume not reflecting real potential
RECORDER REPORT
KARACHI (April 15 2005): The existing trade volume between Pakistan and France does not reflect the real potential of the two countries and the strong bilateral political ties existing at present between the two nations, participants at a meeting observed on Thursday. The luncheon meeting of the Pakistan-France Business Alliance (PFBA) was hosted in honour of a high-powered French business delegation, which is currently visiting the country to explore investment opportunities in the country.

Philippe Ratinske, head of delegation said that current high level business delegation is the first visit since 1994, which reflects the attractiveness of Pakistan in the eyes of French businessmen.

Although the bilateral trade, he said, remained low but now it is increasing as things are changing rapidly for the benefit of investors. "An encouraging picture for business is coming out, which would benefit the investors.

He said that Pakistan is a dynamic country and an open and huge market, which promises good return on investment.

Recalling his meeting with high government authorities in Islamabad previous day Ratinske termed the meeting fruitful and positive. He said French businessmen from water, environment, banking, telecom, infrastructure, energy engineering and from other sectors are part of the delegation.

French Consul General Jean Yves Berthault said that it is encouraging the bilateral trade between France and Pakistan registered 42 percent increase last year. However he called for exploitation of huge potential as existing figures do not match the actual potential.

He said that growing economy shows the trend of the reality that Pakistan is moving on the path of progress and development as rapid changes have been witnessed in present enlightened leadership of the country. Calling the visit of French delegation a landmark he hoped that it would be followed by further strengthening of bilateral economic ties and probably would be going to open a new chapter in trade relations.

President PFBA Shabbir Ahmed termed visit of French business delegation a good omen for bilateral trade between Pakistan and France and said that it would be followed by a series of contacts between business community of both the countries.

He said that national economy of the country is growing around 7 percent with an increasing demand for investment in different sectors of economy.

Vice President Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Akbar Abdullah said that despite the creeping up of trade volume, a lot has to be done to tap the vast trade potential between Pakistan and France. He said that the visit would result in a new era of co-operation between two countries.

Chairman Trading Corporation of Pakistan (TCP) Masood Alam Rizvi also spoke.


Copyright Business Recorder, 2005

Pakistan's foreign exchange reserves hit $12.994 billion
RECORDER REPORT
KARACHI (April 15 2005): Pakistan's foreign exchange reserves jumped by over 228 million dollars in a week reaching close to the 13 billion dollars total. The State Bank of Pakistan, which has been paying all oil bills, purchased 228 million dollars to increase its total reserves to 10.249 billion dollars. The country's total foreign exchange reserves reached 12.994 billion dollars and that of the commercial banks reached 2.745 billion dollars.


Copyright Business Recorder, 2005

Mahathir's son eager to invest in Pakistan
ISLAMABAD (April 15 2005): Mir Mirzan Mahathir Mohammad called on Prime Minister Shaukat Aziz on Wednesday and evinced keen interest to invest in logistics, transportation and real estate sectors in Pakistan. The Prime Minister welcomed Mir Mirzan Mahathir Mohammad, son of former Malaysian Prime Minister Dr Mahathir Mohammad, and said Pakistan was an open economy with lot of opportunities for socio-economic development.

Shaukat Aziz recalled the policies of Malaysia under the able leadership of Dr Mahathir and said he was a symbol of strength for the Muslim Ummah. Mir Mirzan said that due to the economic reforms carried out by Pakistan it had earned a place on economic map of the world.


Copyright Associated Press of Pakistan, 2005

Freight subsidy from EPZs under study
RECORDER REPORT
KARACHI (April 15 2005): The Ministry of Commerce is considering a proposal to allow freight subsidy in respect of exports from export processing zones. This was stated in a meeting of the steering committee on freight subsidy, presided over by Export Promotion Bureau (EPB) Chairman Tariq Ikram on Thursday. A sub-committee was formed to discuss all aspects of the issue and give its recommendations by the middle of next month.

The meeting decided on the perfection of a single document on freight subsidy scheme and the publication of a brochure to include general freight subsidy scheme, freight subsidy on leather garments for 2005, subsidy on Inland freight for the export of furniture, marble and granite products, and the subsidy on land route shipments to the neighbouring countries.

It was also decided that leather apparels and garments, clothing accessories of leather, belts and bandoleers, leather gloves and leather shoes will be considered under the scheme.

The auditors informed the committee that a large number of subsidy claims had to be returned due to the omission of the checklist documents. The representatives of Pakistan Banks Association and the State Bank of Pakistan were asked to advise all commercial banks to ensure that checklist of documents was invariably provided and the submission of required documents was verified against the checklist.

The committee noted that commercial banks did not always inform the claimant exporters when their claims were returned with audit observations. To ensure that the exporters are timely informed, it was decided that the auditors will return claims under objection to the National Bank of Pakistan, which will return these claims to the commercial banks, and will simultaneously inform the individual exporter.

On a suggestion from the Air Cargo Agents Association, it was decided that where the subsidy was claimed on the basis of freight paid for consolidated cargoes the freight receipt submitted with the subsidy claim will be supported by a copy of the House airway bill and a copy of the Master airway bill giving particulars of the product and weight carried and freight paid in each case. In case of mixed shipments the airway bill should reflect each product separately especially in case of fruits and vegetables.

The committee also considered some freight subsidy claims that were time barred and decided that no exception could be allowed for the sake of transparency and uniformity of treatment to all exporters.


Copyright Business Recorder, 2005

Warehousing project in Kenya to be launched by August
KARACHI (April 15 2005): Export Promotion Bureau (EPB) Chairman Tariq Ikram on Wednesday said that a warehousing project in Kenya would be launched by August. This he said, while presiding over a meeting of the Standing Committee on Warehousing Pakistani products abroad. The meeting held at the EPB was also attended by a number of exporters who had given their expressions of interest to avail of the facility of warehousing in Kenya.

A statement here said that the meeting was held to ensure that the exporters understood the scheme for warehousing in Kenya and solicit their views for further improvement of the warehousing scheme.

The EPB chairman opened the discussion by saying that Pakistan's exports to the African regions were only 4.35 percent of the total exports in 2003-04. The share of Australia/New Zealand was only 1.37 percent and that of East Europe even less at 1.09 percent. The exports to South American region were less than 1 percent.

He said that the warehousing scheme was designed to achieve geographic diversification in Pakistani exports. The EPB had, therefore, started with a pilot project for warehousing in Kenya by setting up warehouse each in Nairobi and Mombassa.

EPB Director General Jamshid Khan gave a presentation on the warehousing scheme with the focus on the first warehousing project in Kenya. This will be followed by warehousing in Poland, Russia, the UK, US and several other countries. The EPB will offer free-of-cost warehousing space for the first 18 months to the exporters. It would be extended by 12 months.

A display Centre will also be established where the exporters would display their samples. The exporters will do their own marketing.

TCP Kenya will be established and the exporters would ship their goods in the name of Trading Corporation of Pakistan branch in Kenya.

A local warehousing company in Kenya will be hired to provide bonded and non-bonded warehousing and also undertake clearing and forwarding activities.

The meeting decided that the EPB will place another advertisement in the press inviting all exporters, including those who had already given their expressions of interest, to provide a firm indication of their requirements along with a commitment fee of Rs 10 per sq. ft. of warehouse space, subject to a minimum of Rs 10,000, which will be refundable.

It was also agreed that the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) will organise delegation of exporters to visit Kenya next month to market their products in Kenya or their re-export to nearby countries.

A representative of the State Bank of Pakistan (SBP) informed the meeting that in case the warehoused goods could not be sold within the prescribed time, 180 days in case of Kenya, the exporters would be allowed to discount the invoice value up to 15 percent without the SBP permission.

Furthermore, to help the exporters meet their marketing expenses and paying the initial fees to the Kenyan authorities and for clearing and forwarding, the State Bank would allow retention at 25 percent of export proceeds in foreign currency accounts in Pakistan or abroad.

The EPB chairman expressed the hope that the warehousing project in Kenya would be launched by August. An amount of Rs 16 million had already been sanctioned and additional exports of $10.8 million are expected with an investment ratio of 2.5 percent.


Copyright Associated Press of Pakistan, 2005

Ora-Tech and BEA Systems enter into agreement
RECORDER REPORT
KARACHI (April 09 2005): Ora-Tech Systems, one of country's leading information technology and software solution service provider, has entered into partnership with US-based BEA Systems Inc Ora-tech Systems Private Limited Executive Vice President, Syed Asim Zafar told Business Recorder on Friday that his company has achieved another success as it was designated as a sole partner of BEA Systems products for Pakistan.

The BEA Systems Inc is the world's leading application infrastructure software company, providing the enterprise software foundation that allows thousands of companies to benefit from service-oriented architectures.

The BEA Systems provides the enterprise software foundation to more than 15,000 customers around the world, including the majority of the Fortune Global 500.

The companies turn to BEA Systems Inc to help them evolve their existing enterprise software applications from inflexible, redundant, legacy architectures to highly responsive and mature Web infrastructures.


Copyright Business Recorder, 2005

Roller coaster of Karachi stock exchange continues after driving away of small investors -BBC

http://news.bbc.co.uk/2/hi/south_asia/4441307.stm

read the article


can you get the whole article please?

and check your PM box

USE IT USE IT!!! RETIRE ALL DEBT!!

A two member delegation of Petrobras the largest oil and gas company of Brazil called by Federal Minister for Petroleum and Natural Resources on Friday at Islamabad.

The delegation headed by Adauto Carneiro Pereira, head of international exploration and production business is on a fact-finding mission and is in Pakistan on invitation of the Ministry of Petroleum and Natural Resources a press release said.

Federal minister briefed the delegates on the investment potential in the oil and gas sector and the upcoming projects inviting Petrobras to take full advantage of these opportunities.

Adauto Carneiro Pereira that the Petrobras fact-finding mission would hold talks with Pakistani officials for exploring areas of cooperation between the two countries especially in the offshore exploration. Delegates presented the profile of Petrobras and its worldwide oil and gas exploration and production activities.

Hannover Fair a great success

By Our Staff Reporter

KARACHI, April 16: More than 180 Pakistani engineering companies that participated in Hannover Fair 2005 are expecting to secure a sizeable number of orders.

The fair which ended on Saturday, witnessed a large number of potential buyers visiting the Pakistani stalls and enquiring about subcontracting products, mainly automotive and others.

"We have been quite surprised with the vast potential of Pakistani companies to manufacture quality products for international markets, we are certainly interested in moving our discussions forward and there is a good possibility that we will be ordering supplies from Pakistani companies in the near future," said an European company executive.

According to a message received here from Hannover, Germany, Pakistan's participation was the largest ever by any engineering delegation. Pakistan Pavilion too has been one of the most attractive in the Hall 4 arena.

Export industry needs govt support


By Our Staff Reporter

KARACHI, April 16: Pakistan Hosiery Manufacturers Association Central Chairman Aslam Karsaz has said that a large number of hosiery, knitwear and readymade garment units have closed down since the start of "free trade regime" from January 1, 2005.

In a statement issued here on Saturday, he said that the international community at large was feeling the pinch of "free trade" within three months of the start of quota-free regime. "The universal law is very simple 'survival of the fittest'. This means that countries which actively support and promote their export business will win and those which lag behind will simply fade out."

He said that buying pattern emerging in the world was to procure from the cheapest and best source. "Pakistan being weak on all accounts including raw materials with high cost of inputs like electricity, gas, water etc., and low labour efficiency stands no where to keep its market share," he added.

Karsaz said that the industry had to face multiple government agencies in the name of labour, industrial, commercial and fiscal laws and the entrepreneurs had to keep taking care of such departments.

He said that the incentives given by other countries to their industries were of both direct and indirect nature which helped in lowering the production cost but in Pakistan the industry was overburdened with charges, taxes, and duties at various stages with influx of government officials every now and then.

"The infrastructure is never up to the international standards and can not comply with EU or North American standards," he added.

The PHMA chief said that both India and China in order to capture world market had given facilities to their exporters including higher rebates, payments in the name of technology development, ensuring availability of cheap raw materials and utilities and also provision of quality water and environment friendly waste disposal systems.

He was critical of the fact that the State Bank acted too late to harness the inflation, which is again increasing the production cost, further the central bank was also increasing the export finance rate to make life more miserable for exporters.

The government was doing nothing to pacify the European Union on the GSP plus issue and a meagre relief of 6 per cent by the ECC spoke volumes about the lack of seriousness of the government.

Even such matter which the government could easily act up on such as "zero rated" exports regime, provision of level-paying field for exporters against countries like China, India, Bangladesh and Sri Lanka, he lamented.

He demanded an urgent rebate relief of at least 10 per cent to the industry and stoppage of threatening visits of the government functionaries and officials and allowing the business community to enjoy a hassle and torture free working environment.

He asked for dialogues to assess all the issues related to both direct and indirect exporters to "energize and vitalize the supply chain," in the best interest of the country. Mr Karsaz stressed upon the need for a "target oriented policy approach" to put the business back on track.

NIT assets value grows by 47.3pc


By Our Staff Reporter

KARACHI, April 16: National Investment Trust Limited (NIT) managed to ride out the challenges of mid-March stock market crisis, as is reflected in the Fund's Net Asset Value (NAV) , which grew by 47.3 per cent during the nine-month period to Rs44.96 as on March 31, 2005, from Rs30.53 on June 30, 2004 (ex-dividend).

NIT Chairman and MD Tariq Iqbal told the press on Saturday that the Fund had outperformed KSE-100 index by a margin of 0.1 per cent, "despite the fact that the increase in KSE-100 index was purely on the back of very few stocks whereas NIT strategically remained underweighted". He affirmed that unrealized gains at March 31 stood at Rs11 billion and had by now climbed to Rs12 billion, which showed that the March turmoil did not result in any meltdown.

Earlier on Thursday, the Board of Directors of the Fund approved accounts for the nine months period ended March 31, 2005.

NIT which holds a phenomenal Rs70 billion under its management was reported to have posted net income amounting to Rs4.3 billion, which was 21 per cent higher than Rs3.5 billion in the corresponding period of the previous year. "This", said the chairman, "translates into earning per unit of Rs2.93 as compared to earning per unit of Rs2.28 in the same period of last year, which shows growth of 28.5 per cent".

The earning per unit for the nine months under review was higher than earning per unit of Rs2.63 for the full year of 2003-04. Dividend income for the nine months amounted to Rs2,707 million, which already surpassed the figure of Rs2,487 million, which was the highest ever dividend inflow recorded in any single year over the 42 year history of NIT.

Dividend income for the three quarters under review showed strong growth of 31 per cent over Rs2,061 million earned in the same period of last year. The enhanced dividend income was attributed by the NIT chairman to portfolio restructuring exercise that was started few years ago with the objective of improving dividend yield and quality of portfolio.

Capital gains realized during the three quarters under review came up at a record level of Rs2.4 billion, which were 44 per cent higher than Rs1.6 billion earned in the corresponding period last year.

Tariq Iqbal said that sale of NIT units stood at Rs4.4 billion (including CIPs) as against redemption of Rs9.6 billion. "All redemptions were met to the utmost satisfaction of investors that has helped to further enhance confidence of unit holders/investors", said the NIT chairman, adding that in spite of those redemptions, the net assets of the Fund had depicted robust growth of 34.5 per cent by increasing from Rs49.5 billion as at June 30, 2004 to Rs66.6 billion as on March 31, 2005.

The NIT chairman recalled that after rising to an all time high of 10,303 points on March 15, the KSE index had undergone huge 'downward technical correction' of 25.1 per cent and dropped to 7,708 points level on March 28, 2005, whereas Net Asset Value of NIT unit decreased by a slower 17.9 per cent during the same period, which clearly showed the strength of its portfolio that in the declining market the rate of decline of NIT units was significantly low, translating into out performance of the KSE by 7.2 per cent.

Punjab's GDP likely to grow by 7.5-8pc


By Nasir Jamal

LAHORE, April 16: The Punjab's overall GDP is likely to grow by 7.5-8 per cent this financial year as compared to 4.7 per cent in 2002-03, says a senior official.

"Should Pakistan's GDP grow by 6.5-7 per cent this year (as is being expected by the federal government), the provincial GDP has to grow by 7.5-8 per cent," Punjab Planning and Development Board Chairman Salman Ghani told a questioner at a news conference held on Saturday to brief reporters about the 2nd Punjab Development Forum (PDF) beginning on Monday.

The Punjab's GDP grew by an average 4.5 per cent between 1991-2003 as compared to national average of 4.1 per cent, according to the Punjab Economic Report prepared by the provincial government. The GDP of the three smaller provinces grew by an average rate of 3.7 per cent. The report estimates that the provincial GDP had grown by a hefty 9.2 per cent in 1991-92.

The report, a joint effort of the provincial government, World Bank, Asian Development Bank, and the UK Department for International Development, is being formally launched at the PDF.

Since no official estimate of the provincial GDP exists, says the report, the World Bank has evolved a rough series of the provincial GDP as an interim measure following the national estimation methodology wherever data are available in disaggregate form.

"Since information is not available for all sub-sectors, regional allocators have been applied in these instances to estimate the provincial economy's contribution to the gross national output," says the report, emphasizing the approximate nature of calculations and stressing that they should be used as broad indication of trends rather than as precise estimates for a given year.

With the average contribution of agriculture in the provincial GDP between 1991-03 is estimated at 3.6 per cent, and of industry at 4.5 per cent, the services sector grew by five per cent during the same period.

Agriculture constitutes 27 per cent of the provincial economy, industry 22.5 per cent, and services 50.5 per cent. "The services sector, constituting over half the aggregate GDP of the province, has been the fastest growing sector of the economy -- it grew roughly at an average rate of five per cent per annum -- during 1990s," the report says.

"With the total population of about 74 million, well over half of the national population, and an estimated provincial GDP that accounts for 57 per cent of Pakistan, the factors that affect the economy of the Punjab have a bearing on the country as a whole," says the report.

"Given that population growth in the Punjab was in the neighbourhood of 2.4 per cent a year, the per capita income in the province increased annually at about 2.1 per cent during this period," says the report. However, it admits that for many individuals the increase would have been less than the average, and since the average rate was so low many must have suffered a negative rate of growth and become increasingly poorer. This low growth rate of per capita income for an extended period is said to be the root cause of the increase in the incidence of poverty in the province.

I do not know if this is the right sub-forum to post this, but i read somewhere in the pakistan forum that the pakistan economy is set to grow at 6.5 to 7 percent. If this is true, then this will be truley the asian century!!
Keep it up!

yeah its set to grow 7.8%

7.8% is really not a very high rate. Its high for the Pakistani context. We should strive for higher still.

Also, MODS -- wrong subforum! please move the thread!

yeah i got lost when posting like 10 articles at the same time lol

July-March foreign direct investment rises by 25.4 percent
ARIF RANA
ISLAMABAD (April 21 2005): Foreign direct investment (FDI) during nine months (July-March) of 2004-05, amounted to $792.6 million, against last year's $632.3 million, showing 25.4 percent increase. Portfolio investment, however, showed unprecedented growth. The statistics available indicate that portfolio investment for this period stood at $900.7 million against $586.8 million. It recorded 53.5 percent increase over the corresponding period of last year.

Country-wise break-up showed that US topped with $177.9 million direct investment, followed by Switzerland with $129.8 million. UK was third largest investor and its share in FDI was $127.5 million.

Other countries, which made substantial investment were UAE $40.7 million; Japan $34.3 million; and Netherlands $30.4 million.

All important sectors have surpassed last year's investment levels to set ground for FDI to cross $1 billion mark.

Sector-wise break-up indicated that financial services sector attracted $198.1 million; oil and gas, the second major sector, got $165.5 million; communications $89.3 million; power sector $56.1 million and chemicals got $34.8 million.

Officials are confident that Pakistan would maintain current levels of FDI for the remaining three months of the current fiscal year to take the total to over $1.2 billion. They believe that a figure of over $1 billion FDI would be reasonable enough. They hope that Pakistan would perform better and get more FDI in the coming years. They are optimistic that incentives offered by the government to investors would help Pakistan secure more FDIs in the future.

During the first half (July-December) of the current fiscal year, large-scale manufacturing has registered a growth of 16.1 percent as against 15.4 percent of the comparable period of last year.

The performance of large-scale manufacturing has been broad-based, as most of the major industries have registered high double-digit growth. For example, the production of petroleum products has registered a growth of 15.0 percent; cement production is up by 21.4 percent; tractor and cooking oil production registered a growth of 29.7 percent and 25.5 percent, respectively; soap and detergents grew by 26.6 percent; production of paint and varnishes (both in solid and liquid forms) are up by 45.8 percent and 53.7 percent, respectively; consumer items such as refrigerators, deep freezers, air conditioners and TV sets have registered handsome growth of 23 percent, 63.2 percent, 776.2 percent and 17.5 percent, respectively.


Copyright Business Recorder, 2005

Prime Minister's Malaysia visit to make headway towards PTA signing
RECORDER REPORT
ISLAMABAD (April 21 2005): Pakistan and Malaysia are expected to make significant headway towards signing of Preferential Trade Agreement (PTA) during Prime Minister Shaukat Aziz's visit to Putrajaya, new capital of Malaysia, next month. If negotiations prove result-oriented, the two countries would be signing the agreement towards the end of this year, sources told Business Recorder here on Wednesday. The Prime Minister will also discuss the issues including balance of trade, which is in favour of Malaysia due to heavy imports of palm oil by Pakistan.

At the moment, an official delegation of the Ministry of Commerce, led by Joint Secretary Shahid Bashir, is in Malaysia to finalise positive and negative lists pertaining to boost trade between the two countries.

Sources said that it was the first round of technical talks on PTA with Malaysia and the other four will take place this year to pave the way for signing the agreement. After signing the PTA, the two countries would soon go for Free Trade Agreement (FTA), they added. Sources said that Pakistan is among 14 member countries to have offered preferential trade system of the Organisation of the Islamic Conference (OIC) which is currently under negotiation.

Malaysia is manufacturing and exporting mostly electronic equipment and machinery, petrochemicals, palm oil, rubber etc while Pakistan is strong in textiles, rice and other consumer items of daily use. For a long time the range of products traded between the two countries remained narrow and needed diversification and expansion. Currently, Malaysia's imports from Pakistan are limited to textiles (garments, cotton cloth and yarn), rice, leather, sports goods, carpets and rugs.

By signing the PTA and latter on FTA, Pakistan could possibly use Malaysia as a gateway to access the Association of Southeast Asian Nations (Asean) market. The Malaysian Government has already assured Pakistan it can use that country as entrance to Asean markets.


Copyright Business Recorder, 2005

Prime Minister orders cut in drug prices
RECORDER REPORT
ISLAMABAD (April 21 2005): Prime Minister Shaukat Aziz has directed the Ministry of Health to immediately take drastic steps to reduce drug prices, re-structure Pakistan Medical & Dental Council (PMDC) and establish Health Regulatory Authority to tackle the health-related issues particularly the menace of quackery. Prime Minister Shaukat issued these directives to the Health Minister Muhammad Nasir Khan during a meeting with 19-member delegation of Pakistan Medical Association (PMA) who called on him on Wednesday led by its president Dr Umar Ayub Khan.

Giving details of the meeting, PMA president said the Prime Minister also assured the delegation to increase health budget up to 45 per cent during the 2005-06 fiscal year.

Earlier, PMA demanded of the prime minister to raise the share of health budget up to at least six per cent from the next financial year to improve the medial facilities for the common man, he pointed out.

Umar Ayub further said the PMA has offered technical assistance to the Prime Minister to set up Hepatitis Vaccination Centres across the country in collaboration with the federal government to control the rapidly growing disease among the masses.

To a question, PMA president said that Prime Minister Shaukat Aziz was completely cognisant of the masses' plight and keen to reduce the prices of medicines during next budget.

The Prime Minister also agreed to further improve career structure of the doctors, nurses and paramedics, he said adding he asked the health minister Nasir Khan for enacting strict law to check the quackery and re-use of syringes in the country.

PM expressed hope that health ministry would be able to stop quacks from doing their illegal practice elsewhere in the country by 2005.

In addition, Umar Ayub said the Prime Minister Shaukat Aziz promised to frame new health policy within four months, which was in the cold storage for last few years. The ministry would put emphasis on the upgradation of health infrastructure besides improving health facilities in the new health policy, he said Prime Minister made it clear that all the stakeholders including doctors, medial experts and public should be consulted prior to formulating the new policy.

The PMDC role would be made more vibrant after its revamping to further strengthen the checks and balances on medical colleges and hospitals.

Shaukat Aziz also donated an ambulance van to the Islamabad-Rawalpindi local chapter of the association. PMA demanded of the PM to curtail the expenditure being incurred on ministry's advertisements and to add that share into the annual health budget. They also demanded to reduce the doctors' service limit for retirement from 25 to 20 years.

In a statement, the Prime Minister said the government was laying emphasis on preventive health care and in that connection the government has already launched a programme for prevention of hepatitis worth Rs 2.5 billion.

The Prime Minister said a hospital was being established in Rawalpindi with state of the art facilities which should specialize in mother and child care. The government was also recruiting 20,000 more lady health visitors who shall provide health care in the rural areas.

The Prime Minister said there was a lack of nursing staff in the hospitals and the government was giving top most priority to train nurses so that it could meet domestic needs besides sending them abroad.

The delegation assured the Prime Minister of all possible assistance in formulation of National Health Policy and extending technical support to the in its plan to prevent hepatitis C in the country.


Copyright Business Recorder, 2005

Pakistan safe for foreign investment: Musharraf tells Philippine CCI
MANILA (April 21 2005): President General Pervez Musharraf on Wednesday held out a firm assurance to world entrepreneurs that Pakistan was safe and secure for foreign investment and negative travel advisories about the country were contrary to ground realities. "The negative travel advisories about Pakistan are incorrect and create negative impression, while in reality Pakistan offers safe environment for foreign investment.

We need to do away with negative projections as law and order is satisfactory," he said. During an extensive interaction with the Philippines Chamber of Commerce and Industry, the visiting Pakistani leader referred to his talks with his Philippines counterpart, Gloria Arroyo, and said the two countries resolved to forge strong trade and economic ties.

He said the conclusion of institutional arrangement and the greater interaction between the private sectors of both countries would bolster the bilateral trade to the benefit of the two nations.

The President informed the leading Filipino businessmen that Pakistan had put in place far-reaching economic reforms to facilitate inflow of foreign investment. With a growing economy, inexpensive work force and positive economic outlook, Pakistan today offers an attractive business climate, he said.

The government, Musharraf said, was determined to make use of Pakistan's important geo-strategic location at the centre of Central Asia, South Asia and the Gulf region.

The President, referring to the construction of Gwadar deep-sea port and development of a network of infrastructure, said Pakistan was poised to serve as a gateway for the trade between those regions and for the western parts of China.

Recounting a host of economic achievements including a healthy growth rate, forex reserves build up, fiscal discipline, stable rupee-dollar exchange rate, revenue collection, he said, Pakistan today was a fast-rising economy with buoyant growth in both agricultural and industrial sectors.

He said: "Pakistan stands for promoting inter-regional and intra-regional trade. Pakistan is following a strategic Vision East Asia policy, which encompasses strong linkages with countries of the region, both at the bilateral and multilateral levels."

"We are for developing closer economic ties with Association of South East Asian Nations (Asean) members and want to have free trade agreement with them," he added.

Meanwhile, in a wide-ranging address to the Philippines Foreign Correspondents Association the President on Wednesday said Pakistan was following a policy of maintaining minimum defensive deterrence but was not into an arms race.

He said Pakistan pursued the strategy of credible deterrence in both conventional and unconventional fields in accordance with the threat it might perceive.

Responding to a question, the President said whenever an imbalance was created in the region, Pakistan had to balance it out in accordance with its strategy of the minimum deterrence. "We are in the process of refining our missile technology but we are not into a race," he said.

The President informed the gathering of over 100 Manila-based correspondents from around the world that Islamabad was engaged in a process of rapprochement with New Delhi for resolving the long-standing Jammu and Kashmir dispute acceptable to all parties - Pakistan, India and the Kashmiris.

"The time for conflict management is over, now it is the time for conflict resolution," he said, adding the past accords between the two South Asian countries had failed, as they did not address the cause. A lasting Kashmir resolution, he said, demanded sincerity, flexibility and courage from both sides.

On the United Nations reforms, Musharraf said Pakistan was for reforming the world body into an effective organisation that may successfully tackle the problems facing the world.

Pakistan, he said, was against the expansion of permanent members at the UN Security Council as it violated the basic principle of sovereign equality of nations.

He renewed his call for addressing the malaise of extremism in its strategic dimension and identified political disputes, illiteracy and poverty as the causes breeding militancy and terrorism.

In this context, the President referred to his vision of enlightened moderation and said the West must make efforts for just resolution of disputes affecting the Muslims.

Musharraf welcomed the election of German cardinal Joseph Ratzinger as the new Pope.

Answering a question, the President said the newly elected Pope could play his role in promoting inter-faith harmony in the world amid theories of clash of civilisations, but called for practical action for settlement of political disputes and establishment of durable peace world wide.

Musharraf informed the globally represented gathering that Pakistan today had one of the freest media in the world, where both newspapers and private TV channels were free to air their views independently.

President of Foreign Correspondents Association of the Philippines, Virgilio Galvez welcomed the President as one of the most influential and sought-after leaders, whose vision matters in world affairs.

"He is a leader who can give us a sense of history happening in the world around us," he added.

Moreover, the President has emphasised that Pakistan is focussed on internal consolidation through a strong economic growth, stability and all-round development

Addressing a gathering of Pakistanis living in Manila on Wednesday, Musharraf said Pakistan had taken off economically, with both agricultural and industrial sectors set to sustain higher growth.

He asked expatriate Pakistani community in the Philippines to project Pakistan as a progressive and moderate Islamic country.

"We have strong defence and a strong economy, the benefits of economic turn-around are being transferred to grassroots level in both rural and urban areas," he stated.

He urged the Pakistani expatriates to join the government in eliminating extremism from Pakistani society, which is vastly moderate but the majority needs to stand up against the fringe minority of extremists.

The President informed the cheering Pakistanis that the government was projecting soft face of Pakistan through promotion of sports, culture and tourism.

"Have trust in the future of your country, Pakistan is on a rise," he said.

Also on Wednesday, President Asian Development Bank (ADB) Haruhiko Kuroda called on President General Pervez Musharraf.

He appreciated the recent strong economic growth in Pakistan.


Copyright Associated Press of Pakistan, 2005

KARACHI: The foreign investors have made an investment of over $900 million in Pakistan during the first 9 months of the current year.

According to figures released by the State Bank, foreign investors made an investment of $10.81 million in stock market, while $790.26 million in direct investment.

USA topped the list among the foreign direct investors by investing $170.79 million in Pakistan during July-March. Switzerland with $120.98 million and Britain with $120.75 million investments stood 2nd and 3rd respectively.

United Arab Emirates (UAE) is the biggest investor in stock market investing $30.66 million, while Holland with $20.50 million investments ranks second.

http://www.geo.tv/main_files/business.aspx?id=74309

We have to do this stuff in larger scales!

We need to setup more expo's in Pakistan and start to work on cleaning up the streets and building our work force even higher and provide education in every area in Pakistan!

Pakistan, Indonesia to boost trade

JAKARTA, April 21: President Gen Pervez Musharraf and his Indonesian counterpart Susilo Bambang Yudhoyono agreed on Thursday to augment economic and trade relations through a joint business council. The two leaders, who met at the President’s House here, also exchanged views on issues of common concern, including the situation in Afghanistan, developments in South Asia and the fight against terrorism.

Responding to Pakistan’s desire for full dialogue and summit-level partnership with Asean and participation in other forums, including the East Asia Summit, President Yudhoyono assured Gen Musharraf of Jakarta’s full support in this regard.

The two leaders saw vast prospects for joint ventures, more investment and increased two-way trade, which currently stands in favour of Indonesia.

Commerce ministers of the two countries would chalk out details for putting in place a joint business council to facilitate robust interaction between private sectors.

President Musharraf briefed his Indonesian counterpart about his talks with Indian leaders in New Delhi for the establishment of durable peace in South Asia through resolution of outstanding issues, including the Jammu and Kashmir dispute.

The two leaders also voiced unanimity on restructuring and reforming the Organization of Islamic Conference to make it a potent body, capable of addressing the challenges confronting the Muslim world.

The two presidents shared the view that terrorism posed a threat to the region and discussed closer cooperation in combating the menace. They also discussed defence cooperation between the two nations.

Welcoming Gen Musharraf, President Yudhoyono said Jakarta was looking forward to developing closer ties with Pakistan in all areas of interest.

Commerce Minister Humayun Akhtar Khan, Minister for Culture and Sports Mohammad Ali Durrani, Adviser to the Prime Minister on Women Development Nilofar Bakhtiar, Pakistan’s ambassador and the foreign secretary were present during the meeting.

MEETING WITH BUSINESSMEN: Addressing a gathering of corporate leaders and investors here, President Musharraf asked Indonesian business leaders to undertake joint ventures with their counterparts in Pakistan and take the benefit of stable and conducive climate for trade there.

“Pakistan should not be seen as a stand-alone case for its immense promise but it should also be viewed as an emerging centre of trade for landlocked Central Asia, South Asia, fast-developing Western China and the Gulf — any trade among them has to take place through Pakistan,” he said.

The president said key reforms and a transparent business regime guaranteed security of investors’ capital and profitable returns.

“The labour is inexpensive, the workforce is hardworking, tax and tariff regimes are good, no restrictions on holding 100 per cent equity, no bar on taking capital or dividends, the cost of business is low, there is liquidity in banks, interest rates are low, Pakistan has shaped up for high-paced economic activity.”

The president assured investors that their business concerns would be safe and secure as law and order had improved and foreign companies had never been affected by internal developments.

In this context, he referred to the government’s staying true to its commitment to exorbitant deals with independent power producers in the 1990s and said despite facing crunch economic times the country fulfilled its commitment.

ASIAN-AFRICAN SUMMIT: President Musharraf will address the Asian-African Summit that begins here on Friday with the aim of developing a new strategic partnership to the common benefit of people of two continents.

The two-day summit, being held with the theme of ‘Reinvigorating the Bandung spirit: working towards a new Asian-African strategic partnership,’ is expected to mark the dawn of a new era of cooperation among countries of the two regions towards a peaceful and prosperous future.

Meanwhile, President Yudhoyono opened the Asian-African business summit on Thursday, attended by at least 500 businesspeople from 24 countries from Asian and African continents.—APP

Border officials meet today

KARACHI, April 21: Border conflicts between Pakistan and India have declined due to confidence-building measures (CBMs) taken by both countries recently. This was stated by Director-General Pakistan Rangers Maj-Gen Javed Zia at a ceremony held to welcome a 17-member delegation of the Border Security Force (BSF) of India at the Rangers Headquarters here on Thursday.

“These confidence-building measures have brought a great degree of normalcy at the borders,” said Maj-Gen Zia.

Border officials of the two countries meet twice a year and this time their meeting is being held on the Pakistani side with Pakistan Rangers (Sindh) as the host.

Maj-Gen Zia said it was a historic occasion because it was for the first time an Indian border security delegation had come to Karachi.

“We are hopeful that our meetings will take place in a very congenial, accommodative and fruitful manner,” he said.

The two sides would discuss illegal border crossings, narcotics control efforts, installation of searchlights on the border and border demarcation during their four-day talks, he said.

Drug smuggling was a common issue for both sides, he said, adding that the meeting on Friday would review measures to curb it in a significant way.

About release of fishermen, he said: “We would take up this issue in the meeting so that the miseries of the families of held fishermen could be lessened.”

Talking to journalists, leader of the Indian delegation, Inspector-General of the Border Security Force of Indian Punjab, G.S. Gill, expressed hope that the meeting would help resolve various issues.

Mr Gill said better ties were good for everyone along the border.—Agencies

Accord to end stock market crisis




By Dilawar Hussain

KARACHI, April 21: The exasperating issue of COT (carryover trade) mode of financing in the country’s stock exchanges was settled with both the SECP and KSE reaching an agreement on Thursday. Minister of State for Finance Omer Ayub Khan brokered the talks between Chairman SECP Dr Tariq Hassan and Commissioner (Securities Market) Shahid Ghaffar, representing the ‘apex regulator’ (SECP), and the board of directors of Karachi Stock Exchange, representing ‘the frontline regulator’ (KSE).

The announcement that all contentious issues were resolved was made by the Managing Director KSE, Mr Moin Fudda, minutes before the close of trading on Thursday.

Investors greeted the development with relief, hoping the crisis which had gripped the stock market ever since the KSE-100 index hit its life-time high of 10,313 points on March 15 this year would end.

The index rose by 71 points on Thursday and brokers said that much of the rally was in anticipation of a positive outcome of the talks that lasted three hours.

The following conclusions were made on the COT phase-out issue: (1) Freezing date of April 29, 2005, for COT position stood withdrawn pursuant to the request made by the board, management and members of KSE; (2) the extended date for COT phase-out would be August 26, 2005, instead of August 3, 2005, as notified earlier; (3) the weekly reduction of outstanding COT positions would be 8.25 per cent instead of 12.5 per cent w.e.f. June 8, 2005; and (4) revised list of eligible securities for May 2005 futures contracts was to be announced on Thursday evening.

The KSE board is said to have assured the SECP and the government that there would be no further request for COT extension and that COT would not be dependent on margin finance.

All parties, however, agreed to make concerted efforts to promote margin finance.

Terms to qualify for futures contract

KARACHI, April 21: The board of directors committee of Karachi Stock Exchange in a meeting with the Commissioner (SM) Thursday decided that from May 2005, no scrip shall qualify for futures market unless its free-float is 50 million or more. Moreover, according to a press release, member’s exposure in futures contract in a scrip shall not exceed 1 per cent of the free-float, as determined by the Exchange, under its free-float methodology.

The above decisions have subsequently been approved by the Commission vide its letter No. SMD/MSW/1(7)2004 dated April 21, 2005.

In view of the foregoing, the KSE members are requested to note the following:

1) Position Limits for futures market: Member’s exposure in futures contract in a scrip shall not exceed 1 per cent of the free-float of such scrip, as determined by the Exchange under its free-float methodology (notified vide Notice No. KSE/N-1790 dated March 17, 2005). This measure will be implemented from May 2005 Futures Contract (April 25, 2005). The Brokers, in the similar manner, shall also impose exposure limits on each of their client.

2) Collection of Loss Margin in Futures Market: It is decided that market-to-market losses of the members having exposures of more than Rs200 million, in the Futures Market, shall be collected twice in a day. This measure will be implemented from May 2005 Futures Contract (May 5, 2005).

3) Collection of Margins 100 per cent in cash Beyond Rs200 million. From May 2005 Futures Contract (May 9, 2005), deposits against exposures exceeding Rs200 million shall be collected in cash.

Moreover, the existing slab in futures market, for margin collection, are revised as under:

Exposure Limits: Deposit Payable against exposure up to Rs100 million is 10pc of the exposure amount (50pc cash + 50pc in approved securities). Over Rs100 million up to Rs200 million: Rs10 million plus 12.5pc of the amount exceeding Rs100 million (50pc cash + 50pc in approved securities). Over Rs200 million up to Rs300 million: Rs22.5 million plus 22.5pc of the amount exceeding Rs200 million (100pc cash). Over Rs300 million: Rs45 million plus 30pc of the amount exceeding Rs300 million (100pc cash).

4) Limit of Capital Adequacy in Futures Market: total Exposure of a member in Futures Market should not exceed 10 times of the Net Capital Balance, from May 2005 Futures Contract (May 9, 2005). However, the overall total Capital Adequacy of a member shall remain 25 times of Net Capital Balance of such member.

5) Change in the Circuit Breakers: From the date of opening of May 2005 Futures Contract (April 25, 2005), Circuit Breakers in Ready and Futures Market shall be fixed at:

* Upper Limit 5pc or Re1, whichever is higher

* Lower Limit 5pc or Re1, whichever is higher

6) Eligibility of a Scrip in Futures Market: From May 2005 Futures Contract (April 25, 2005); no scrip shall qualify for Futures Market unless its Free-Float is 50 million or more. Moreover, the number of contracts opened (Open Interest) in a scrip, shall not exceed the Free-Float of such scrip.

In light of the above decision, the Free Float of existing 30 companies traded on Futures Counter have been calculated. Out of the said 30 companies, 29 companies have Free Float of over 50 million shares.

However, as recommended by the SECP, based on international practices, two Mutual Funds namely BSJS Balanced Fund and PICIC Growth Fund have been excluded from the list. Therefore, 27 companies, as approved by the SECP vide its letter No. SMD/MSW/1(7)2004 dated April 21, 2005, are eligible for Futures Market from May 2005 Futures Contract. The names of the companies are given below.

A detailed trading and settlement schedule to this effect is being notified separately.

Moreover, in order to give better understanding, it is to clarify that open interest in a scrip means either sum of net buy or net sell position (one side) of all members, operating in such scrip, at any point in time. In a contract period, such Open Interest shall not exceed the Free-Float of that scrip. However, if it touches the limit, thereafter, members would only be able to square-up their positions and could not take any fresh positions.

The monitoring of the open interest will commence from implementation of Pre-Trade Margin Verification in Futures Market.

7 Decision communicated by SECP vide its letter No. SMD/MSW/2 (22) 2003 dated April 4, 2005.

The SECP, vide its letter No. SMD/MSW/2 (22) 2003 dated April 4, 2005, communicated the decision taken in the meeting of April 1, 2005 that Government Securities such as T-Bills, FIBs’ Dollar bond, and Corporate Bonds such as TFC’s as well as letter of credit not to be accepted as deposits against exposures in the Future Market as currently allowed within the definition of Approved Securities in Regulations Governing Futures Contract.

The above measure will be implemented from May 2005 Futures Contract (May 5, 2005).

Following are the securities eligible for Futures Market Based on Free-Float of 50 million shares:

1 The Hub Power Company; Free Float Shares: 676,384,097. 2) Pakistan Telecommunication Co Limited: Free Float Shares: 575,619,727. 3) Sui Northern Gas Pipeline; Free Float Shares: 250,883,318. 4) Fauji Fertilizer Bin Qasim; Free Float Shares: 194,017,858. 5) Oil & Gas Development Company; Free Float Shares: 193,850,791. 6) Muslim Commercial Bank; Free Float Shares: 184,122,868. 7) Telecard; Free Float Shares: 183,316,117. 8) Fauji Fertilizer Company; Free Float Shares: 155,582,193. 9) Sui Southern Gas Company; Free Float Shares: 154,724,307. 10) Dewan Salman Fibre; Free Float Shares; 127,518,163. 11) Pakistan Industrial Credit & Inv Corp; Free Float Shares: 123,852,255. 12) Maple Leaf Cement; Free Float Shares: 119,970,498. 13) DG Khan Cement; Free Float Shares: 110,636,130. 14) National Bank Of Pakistan; Free Float Shares: 109,421,261. 15 Faysal Bank; Free Float Shares: 97,812,558. 16) World Call Communication; Free Float Shares: 83,220,336. 17) Southern Electric Power Co; Free Float Shares: 82,947,831. 18) Nishat Mills; Free Float Shares: 79,892,859. 19) Lucky Cement; Free Float Shares: 77,190,527. 20) Engro Chemical Pakistan; Free Float Shares: 70,628,489. 21) Pakistan Petroleum; Free Float Shares: 68,583,764. 22) Pakistan State Oil Company; Free Float Shares: 65,024,677. 23) The Bank Of Punjab Limtied; Free Float Shares: 60,712,900. 24) Union Bank; Free Float Shares: 60,663,514. 25) Askari Commercial Bank; Free Float Shares: 59,554,005. 26) Pakistan Oil Fields; Free Float Shares: 58,785,285. 27) PICIC Commercial Bank; Free Float Shares: 54,142,713 —APP

Deal signed for Karachi Port expansion
ISLAMABAD, April 23: The Opec Fund for International Development and Pakistan International Container Terminal (PICT) have signed a private sector loan agreement of $6 million for the second phase of a project to expand container handling facilities at the Karachi Port.

The agreement was signed in Vienna on behalf of PICT by Captain Haleem A. Siddiqui, Chairman of the Board of Directors, and by Jamal Nasser Lootah, Chairman of the Governing Board of the Opec Fund.

A representative of the Pakistan Embassy in Vienna was also present at the signing ceremony, according to fax message received here from Parep, Vienna, on Saturday.

PICT was established in 2002 to finance, construct and operate a common user container terminal at the Karachi Port, with the aim of increasing efficiency, streamlining costs and stimulating trade.

The Karachi Port occupies a central place in the economic life of Pakistan. It handles 60 per cent of international trade and 80 per cent of all container volume.

The recently completed phase-I of the project consisted of the procurement and installation of two ship-to-shore gantry cranes, together with rubber-tyre cranes and supporting equipment, as well as accompanying civil works.

The phase-II of the expansion includes the acquisition of one additional gantry crane and a variety of container handling equipment, along with the construction of new customs and administrative buildings.

The expanded facilities are expected to significantly increase the terminal’s handling capacity and lead to substantial benefits for the economy.

Speaking on the occasion, Capt Haleem informed the participants that as far as the second phase of PICT was concerned they were ahead of time schedule by three years and were already nearing the third phase.

He said that PICT had already been handling 21,000 TU for the last four months. When completed it would have the capacity to handle 500,000 TU per annum.

Capt Haleem pointed out that the PICT project, jointly financed by the Opec Fund and the International Finance Corporation (IFI), was 100 per cent owned by Pakistan and would represent an investment of $75 million upon its completion.

He said that looking at the successful results achieved so far, the management of the project was considering the prospects of planning a fourth phase of the project, though initially it was planned for three phases only.

This project represents the Opec Fund’s second private sector loan to Pakistan. In addition, the fund has approved over $240 million towards a wide range of public sector projects and for balance of payments support.

An agreement for the encouragement and protection of investment came into force between the fund and the government of Pakistan in February 2001.

—APP

Musharraf seeks mechanisms to solve issues: Address to Asian-African moot

JAKARTA, April 23: President General Pervez Musharraf on Friday called for ‘powerful multilateral conflict-resolution mechanisms’ to handle festering disputes that had been causing instability in various regions around the globe. Addressing the Asian-African Summit 2005, he said that while the international community “must optimize bilateral negotiations for conflict resolution, powerful multilateral conflict-resolution mechanisms need to be institutionalized for the cause of regional and global peace.”

He said that today Pakistan and India could be jointly proud of showing sincerity, flexibility and courage that could lead to bilateral achievement of peace and harmony.

The president observed that the authority of the United Nations as a dispute resolver had seriously eroded over the years.

He said that Pakistan’s support for rehabilitation, reconstruction and normalization activities in Afghanistan was also a manifestation of its effective contribution towards political stability.

He said Pakistan had also been in the forefront of international efforts to promote peace in Africa by being a major contributor to the UN peacekeeping operations.

Referring to the UN reforms, he said the world should work together on consensus-based reforms guided by the principles of sovereign equality with emphasis on developmental issues.

He underlined the importance of concerted efforts to counter notions of clash of civilizations. “It is also important for all of us to join hands to counter the false and dangerous notion of clash between civilizations, and prejudices against Islam, which is a religion of peace and moderation.”

The international community, he emphasized, needed to broaden its view of socio-cultural understanding to promote inter-civilization harmony. He said his concept of enlightened moderation was an attempt to achieve this objective for the Muslim world.

“The Muslim societies require reform and the international community can help the process through educational, technological and developmental assistance.”

Underscoring the need for a joint focus on cooperation in trade and economic areas, Gen Musharraf said developing countries had been speaking of South-South cooperation for long but in practice it continued to be an illusion.

“Our mutual understanding combined with a preferential treatment between Asian and African countries requires the focus of our policymakers, trade officials and the business sector,” he said.

The president stated that developing countries’ struggle against poverty, under-development and disease was far from over. “We have yet to make our collective voice carry weight and make it felt in the world,” he said.

He observed that international agenda, being pursued by the developed world, focused on fostering democracy, facilitating access to market, promoting the private sector and furthering the cause of human rights.

“Globalization has become the order of the day although without adequate safeguards and equity this itself, to some extent, is becoming a problem. Terrorism and WMD proliferation have emerged as major threats,” he maintained.

Agreeing with the Declaration on the New Asian-African Strategic Partnership and the Joint Ministerial Plan of Action, the president said political solidarity, economic cooperation and socio-cultural relations should form the core of future cooperation between Asian and African nations.

The failure of the developed world to contribute its stipulated 0.7 per cent of GDP towards the millennium development goals betrayed a lack of seriousness toward addressing poverty, backwardness and under-development, he said.

“Clearly, a stronger global commitment is needed to eliminate poverty and deprivation and to comprehensively improve living conditions of people around the world. This represents the greatest challenge of our times and lies at the core of fighting terrorism and extremism.”

However, the president pointed out, the Eastern and Southeast Asian nations had emerged as the new global economic centres, emanating hope and raising the living standards of more than a quarter of the humanity.

“We must ensure that economic multilateralism is strengthened in an affirmative manner to benefit the developing world in the long-term.

“We must bank on developing our own technological and economic potential,” he said.

He said Pakistan, as one of the five co-sponsors of the Bandung Conference in 1955, accorded great significance to its principles and added: “We must remain committed to the vision and spirit of Bandung. Let me assure you that Pakistan will continue its efforts to strengthen the political, socio-cultural and economic bonds between all our countries.”—APP

Economic cooperation in Asia discussed

BOAO (China), April 23: Businesspeople and officials met in China’s southern resort town of Boao on Saturday to discuss ways to promote economic cooperation in Asia. The emergence of China as an economic power with huge regional clout formed the background of the debate, and many remarks dwelled on the issue of whether China should be seen as a threat, challenge or opportunity.

“China’s ‘peaceful emergence’ is in everyone’s interest,” Lee Kuan Yew, Singapore’s elder statesman, told the Boao Forum for Asia. “An ‘unpeaceful rise’ will mean conflict and chaos in the entire Asia-Pacific region.”

China’s fourth most powerful man, Jia Qinglin, extended what he said a “solemn pledge” that his country would never seek to dominate the region.

“There is neither reason nor possibility for us to threaten anyone,” he said. “Even if China gets more developed

in the future, it will never seek hegemony.”

China’s capacity to wreak havoc on global energy markets were a top issue in discussion in the non-governmental forum, which aims to become a regional equivalent to the World Economic Forum in Davos, Switzerland.

“Now China’s economic development is very fast, but it will by no means lead to strained energy supplies worldwide. It’s not the case,” said Ma Kai, chairman of the cabinet-level National Development and Reform Commission.

“Foreign energy supplies might become a useful supplement to domestic supplies,” he said.

But he also showed that China was still intent on promoting its own national interests, meeting on the sidelines with former Taiwanese premier Vincent Siew for talks on increased economic cooperation.

“The talks were very warm, very cautious,” Siew, a former vice presidential candidate for the opposition Nationalist party, told AFP after his 40-minute meeting.

Meanwhile, Jia sought to reassure the region over its voracious economy, promising that even in 2020 imports would only make up a small proportion of its energy consumption.

“We should be aware that China is not just a big energy consumer, it’s also major producer of energy,” Jia said.

“Imports only account for a small part of China’s energy consumption ... according to our estimate, in the year 2020, the imported energy will only account for a small proportion of all the energy consumed by the country.”

While China is not going to decrease its energy consumption, a combination of conservation and search for additional energy resources will keep China supplied mainly by domestic sources, he argued.

Adding to the argument that China was more of an opportunity for the region, the Boao forum issued a report suggesting that the opening of its economy had been overwhelmingly beneficial for the region.

Indeed, China’s economic reforms had done more to boost intra-regional trade than the efforts of regional organizations such as the Association for Southeast Asian Nations, according to the report, “Economic Integration in Asia”.

Hong Kong’s caretaker leader Donald Tsang Saturday said there was an “overwhelming” case for a single Asian currency, but that the objective had to be attained in a step-by-step manner.

“The case for a single Asian currency is overwhelming,” he told the Boao gathering.

He pointed out that the vast diversity of the Asian economies made it an extremely difficult task to bring about a single currency in the region.

“We must create the conditions for greater free trade in financial services before we can even begin to talk about monetary integration,” he said.

He urged Asian governments to remove hurdles to increased trade in financial services as a first step towards the eventual objective of a single currency in Asia.—AFP

Removing barriers in trade




By Sultan Ahmed

THE three-day visit of President Pervez Musharraf to New Delhi and his frank talk with Indian Prime Minister Manmohan Singh have paved the way to normal full scale trade relations between the two countries, if the political will for that is sustained.

Since the meetings at the summit level, which began with the visit of Atal Behari Vajpayee, the then prime minister of India, on January 6 last year to usher in a period of conciliatory talks, there has been little official talk at the top on trade between the two countries. However, the recent commerce secretary level talks in Islamabad tried to focus attention on normalizing trade between the two neighbours.

If normal trade exchanges begin after more invisible impediments are removed, the two-way trade will far exceed $0.5 billion with $400 million of imports from India and $100 million of exports from Pakistan. There is, in addition the informal exchange of smuggled goods on both sides, estimated at $2 billion, which also includes trade through third countries like Dubai and Singapore. Eventually the two-way trade may be $3 billion, leading to $5 billion if road blocks are removed.

While the two governments go on increasing the number of items tradable between the two countries the actual volume of open trade has been too small. And the governments are heavy losers by the smuggling, which gets good prices at both ends.

Compared to the governments which have been reluctant to act quick and remove the road-block to free flow of trade, the businessmen have been over-enthusiastic and visited each other in large numbers with some very radical suggestions.

Some Indian businessmen want expansion of the lists of tradable items between the two countries. And some leaders of the confederation of the Indian Industry want only a small negative list so that they are free to trade in all other items. Some Indian industrialists want to make investments in industry in Pakistan.

To accommodate all such demands the summit at New Delhi decided to activate the Joint Economic Commission, which became dormant over two decades ago. It will take up all such demands at a higher official level. It also agreed that the joint Business Council should meet soon which has been welcomed by the businessmen. The President of the Karachi Chamber of Commerce who visited India recently, leading a delegation, has welcomed the reactivation of both the bodies.

At the same time President Musharraf and Dr Manmohan singh have called for a list of items of Pakistan origin which India was discriminating against through tariff measures and otherwise so that they can be removed. Pakistan by itself has been preparing such a list, and had sought the relevant information from the chambers of commerce.

India had earlier maintained that there were no Pakistan specific discriminatory steps and such measures were designed to protect the Indian agriculture. But now the Indian Commerce Minister Kamalnath who is anxious for expanding trade relations with Pakistan admits there are some discriminatory provisions. And President Musharraf made special mention of them to Dr Singh and identified Pakistani bed linen in particular.

While India has been pressing Pakistan to accord it the Most Favoured Nation treatment in mutual trade, Pakistan has been maintaining it was no use doing that if several tariff and non- tariff barriers stood in the way. The fact is that despite India granting the Most Favoured Nation treatment to Pakistan there has been little by way of exports to India from Pakistan and India’s exports to Pakistan is several times more.

India’s request for transit trade facility with Afghanistan and Central Asia, too, is tied up with this issue. India is keen on such transit trade, and wants to establish commercial contacts with Central Asia through Pakistan. Unless such hindrances are removed it may not be of much use to issue 8,000 Indian trade visas to Pakistani traders.

Meanwhile, following the shortage of onions in Pakistan as a result of crop failure, Pakistan is importing onions from India at around Rs12/13 a kilo and selling it at Rs24/25 inclusive of import duty and very high profits.

Mr Khalid Firoz on return from India says “high customs tariff, subsidy on industrial and agricultural products and discriminatory standards of evaluation for Pakistani products were some of the major irritants arresting the growth of trade on a large scale between the two countries.

He said the on-going efforts to accelerate the pace of trade between the two countries would prove abortive unless the credibility gap between them is bridged.

Commerce Minister of Pakistan Humayun Akhtar had earlier wanted to raise the number of items importable from India to 1,000. By now that number has been brought just under 800, but there is very little trade between them because of the credibility gap and procedural tangles.

The two leaders have agreed not only to increase the frequency of the bus service between Srinagar and Muzaffarabad but also use the routes for trucks to carry goods across the Line of Control.

More bus routes across the LoC are to be opened, particularly between Poonch and Rawalakot. It is presumed that traders from both sides will be allowed to carry goods along such routes as well. The idea is to soften the rigours of LoC and make the life of the people living on both sides of the LoC more normal.

An Indian consulate general is essential in Karachi to assist the businessmen of Karachi and southern Pakistan as a whole to participate in bilateral trade and the consulates in Karachi and Bombay are to be reopened before the end of the year.

Similarly the Khokhrapar-Munabhao railway link is to be rehabilitated and opened before the first of January. But for technical difficulties, the rail link in the south could have been reopened much earlier.

But if large scale trade is to take place between Karachi and Bombay a shipping line should come into operation soon.

The petroleum minister of India Mani Shankar Aiyar is scheduled to visit Pakistan next month to discuss cooperation in the area of petroleum and gas. He will also discuss the pipe lines which are to bring gas to Pakistan and then to India with our officials.

Mr Aiyer, who was the first consul general of India in Karachi, is a man of ideas and striking initiatives. He has signed a good many agreements to provide oil and gas to India and is looking for new avenues in view of India’s vast energy needs.

Now the pressure for more trade facilitation will be on the Joint Economic Commission and the Joint Business Council. They have to meet early and take firm decisions and those decisions will have to be upheld in real practice by both the governments. If there are hurdles to overcome, both the sides will have to make vigorous efforts in that direction.

The joint statement issued by the two leaders at the end of their meeting says: Both leader agreed that enhanced economic and commercial cooperation would contribute to the well being of the people of the two countries and bring a higher level of prosperity for the region. The two leading economies of South Asia should work together for the greater prosperity of the region.”

Dr Singh, as an economist knows that reducing tension and increasing cooperation between India and Pakistan will lower the defence expenditure and make more funds available for poverty reduction. And as a politician now he knows that unless the Congress Party in office delivers to the people what it had promised it can face the same setbacks as the BJP-led by Atal Behari Vajpayee met with in last May’s general elections

Source: http://www.nation.com.pk/daily/apr-2005/26/index1.php

http://www.nation.com.pk/daily/apr-2005/26/image/index1p.jpg

Punjab govt goes into cinema business

BY IQTIDAR GILANI
LAHORE - The Punjab government has entered into the cinema business and established an entertainment company as a part of its new scheme.
The first project of the Punjab Entertainment Company (PEC) would be to set up an I-Max theatre and entertainment complex at a cost of Rs 800 million at MM Alam Road. The proposed site was originally reserved for a park and playground.
The PEC is a private limited company and will work under the supervision of Information Secretary Taimur Azmat Usman till a full-time managing director is appointed. The PEC will use the income from the I-Max theatre and entertainment complex for developing cinemas and theatres in the future.
The I-Max theatre seems to be an expensive and lavish project, given its hefty cost. Such an amount is adequate for establishing two state-of-the-art surgical towers such as the one being built at Mayo Hospital for Rs 350 million, or a Cardiology Institute like the one at Multan which costs Rs 780 million. About 2,000 primary schools can be established for the same money.
According to the details, the Punjab Communication and Works Department has started construction work after the Parks and Horticulture Authority handed over the possession of the proposed site (Doongi Ground) to the Punjab Information Department.
Earlier, the PHA had planned to build a Mini Sports Complex at the said ground on BOT basis but the contractor, Shah Sharabeel, failed to start the construction work, eight months after the project had been approved.
The only progress made so far had been to raise the ground to road-level.
The ground was previously being used for playing cricket and as a park. It also served as a flood reservoir during the monsoon season .
The ground has been given to the Information Department to ensure ‘proper utilisation.’
The C & W has brought the ground to its original level for construction purposes. The I-Max theatre and entertainment complex will be handed over to the newly-established PEC after the completion of the project at the end of the current year.
The proposed plan includes building for the I-Max theatre, an entertainment complex comprising a bowling alley, modern shopping mall, game and entertainment areas and food courts. Rs 450 million would be spent on the construction of building and purchase of required equipment for the I-Max theatre while Rs 350 million would be spent on the construction of the entertainment complex.

any completion date.

Stocks recover 167 points




By Our Staff Reporter

KARACHI, April 26: Stocks on Tuesday recovered from the recent lows boosted by higher interim dividend by the OGDC and a massive increase in after tax profit of PTCL and PPL sans third quarter interim. PTCL, PSO, Pakistan Oilfields, OGDC and PPL led the market recovery on active short-covering at the lower levels aided by sympathetic buying from the other quarters in those shares whose board meetings are due before the month is out.

The oil giant, OGDC, which has been under pressure since the market crash started four weeks back owing to some clearing problems in the future March contract, gave a pleasant surprise to analysts after it announced a third quarter interim dividend of 17.5 per cent, giving needed push to stock trading.

Its board of directors had already paid two interims of 15 per cent each for the first and the second quarter and indications are the total final could be 60 per cent plus. Its share value surged by Rs4.60 at Rs97.30 and it is hoped that it would again gain its past glory on the strength of higher earnings and settlement of the COT-related issues.

Having a weightage of 22 per cent in the index, it pushed the KSE 100-share index higher by 167.91 points or 2.40 per cent at 7,164.73 points as compared to 6,996.82 a day earlier as all the leading base shares recovered from the previous lows under the lead of PTCL and PSO.

Although, PTCL omitted widely speculated an interim dividend despite a nine per cent increase in the EPS at Rs4.18 and its after tax profit stood at Rs21.320 billion.

“The market is expected to be driven from now onward on the strength of higher earnings and interim dividends from the cement sector and some leading blue chips whose board meetings are due during the current week”, analysts predict. While the board meeting of D.G. Khan Cement is due during the next couple of sessions, Lucky Cement showed an after tax profit of Rs582.00 million for the third quarter, EPS being at Rs2.21.

Moreover, the market is now in a highly oversold position and its technical demands aided by attractively lower levels could work wonders if all goes well on the political front, they said.

The current week appears to be crucial for the future direction of the market as it would decide whether or not investors follow positive corporate news or play on short-term basis, realizing profit at the rise, some others said.

PSO and Unilever Pakistan were among the leading gainers, up Rs16.95 and Rs52.70, followed by Clover Pakistan, Pakistan Oilfields, OGDC, EFU Life, Shell Pakistan, Fauji Fertilizer, and Security Papers, up by Rs4 to Rs7.25.

Losers were led by Parke-Davis and Artistic Denim, off Rs68 and Rs13.25 respectively. Fazal Textiles, National Refinery, Century Papers, Suzuki Motors and Treet Corporation also suffered fall ranging from Rs4.50 to Rs10.

Trading volume showed a modest increase at 215.486m shares as compared to 198m shares a day earlier, while gainers again trailed far behind the losers at 133 to 160, with 33 shares holding on to the last levels.

PTCL was again actively traded, up by Rs1.75 at Rs63.70 on 66m shares followed by OGDC, higher by Rs4.60 at Rs97.30 on 38m shares, Fauji Fertilizer Bin Qasim, up by Rs1.05 at Rs30.45 on 15m shares, PSO, sharply higher by Rs16.95 at Rs365 also on 15m shares, D.G.Khan Cement, up by Rs1.55 at Rs60.55 on 10m shares Pakistan Petroleum, higher by Rs3.05 at Rs163.60 on 9m shares and National Bank, up by Rs1.50 at Rs95.50 on 8m shares.

Others were led by MCB, up by 70 paisa on 6m shares, Pak PTA, unchanged on 5m shares and Pakistan Oilfields, higher by Rs5.30 also on 5m shares.

FORWARD COUNTER: PTCL was again actively traded, up by Rs1.60 at Rs63.60 on 10m shares followed by PPL, higher by Rs2.90 at Rs164.40 on 9m shares, and OGDC, up by Rs3.66 at Rs97.91 on 5m shares.

PSO also came in for active buying and rose by Rs14.45 at Rs365 also on 5m shares and Fauji Fertilizer Bin Qasim, firm by 85 paisa at Rs30.50 on 3m shares. Some others were modestly traded on the higher side.

DEFAULTER COS: Trading on this counter failed to pick up for the second session in a row as investors were not inclined to take positions on any of the counters. Price changes were fractional amid light trading.

Finally! we are returning to 10,000 points area! :)

UK investors offered 20 exploration blocks

LONDON April 26: Petroleum and Natural Resources Minister Amanullah Khan Jadoon on Tuesday urged British businessmen to exploit the untapped potential of 27 billion barrels of oil and 280 trillion cubic feet of gas in Pakistan to reap attractive dividends of their investment.

He was inaugurating a two-day conference on “New Opportunities in Pakistan’s Oil and Gas Sector” organized by the ministry of petroleum and natural resources here to attract investment in the sector.

British investors were offered 20 new blocks for carrying out onshore and offshore exploration and were assured that the government would facilitate them and help start joint ventures if they so decided.

Of these blocks, 16 were offshore and four were onshore that included Eastern Offshore Indus A, B, C in Zone Zero, Offshore Indus 0, Offshore Indus P, Offshore Indus Q in Zero Zone, Badin South IV and Badin IV North, Khetwaro, Kirthar South 1, Kirthar South 11 and Thatta East in Zone Three, Latambar, Marwat in Zone One, Bagh South in Zone Two, Bagho-o-Bahar, Pakhiwali and Islamgarh in Zone Three, Khiranwala in Zone Two and Daphro in Zone Three.

However, he said the country would give preference to indigenous gas to meet its energy needs and gas would be imported only to bridge the gap between its availability and requirements of its growing economy.

Petroleum and Natural Resources Secretary Ahmed Waqar said 80 per of the country’s energy needs were being met through oil and gas.

Mr Waqar said the country’s oil import bill during the current year was estimated to be $4.5 billion mainly because of the soaring oil prices in the international market while it was $3.1 billion last year.—APP

GAS PIPELINES: Pakistan and its neighbours will be able to decide by 2006 which of three competing trans-national gas pipelines should go ahead first.

“Roughly within a year, maybe in the beginning of next year, we should be able to decide which pipeline is feasible,” Ahmad Waqar told Reuters on the sidelines of the conference.

“We expect these pipelines to be laid by the time we are faced with shortages around 2010-2011,” Mr Waqar said, adding that by that time Pakistan’s energy demand/supply gap could be as wide as 20 million tons of oil equivalent a year.

He said that in the fourth quarter of this year Pakistan would also decide on LNG imports, with Qatar emerging like the most likely source.

Pakistan would start manufacturing parts of Boeing aircraft from June this year, thus, formally joining the club of aviation parts manufacturers. During a visit of media persons to Pakistan Aeronautical Complex (PAC), Kamra, on Monday, it was stated by PAC chief Air Marshal Aurangzeb that Boeing aircraft Co, have set up parts manufacturing unit at the PAC. "At this factory through Boeing offset programme, we shall be manufacturing aviation parts for Boeing 747, 767 and 777 aircraft," Air Marshal Aurangzeb said. He said know-how thus gained through this venture will certainly help in establishing JF-17 (Thunder) aircraft production line.

He said parts of Boeing would be manufactured here and sent to the company for their onward sale and supply.

Technicians of Boeing are working on the installation of the plant which would be completed by the end of this month and would start production from next month, he added.

MUSHAK DELIVERY: Air Marshal Aurengzeb said the delivery of 20 Super Mushak trainer aircraft to Saudi Arabia would successfully complete by September this year.

"We have already handed over a lot of seven aircraft to Saudi Arabia while a batch of another eight aircraft would be handed then over by end of this month," he told a questioner.

The rest five aircraft, making the total to 20, would be handed them over during September, he added.

This supply of the aircraft has not only earned the country a sizeable amount in foreign exchange but also would help build the image of PAC for production of quality and reliable lot.

JF-17 PRODUCTION: Chief Project Director at JF-17 Project, Air Vice Marshal Shahid Lateef said the series production of JF-17 (Thunder) aircraft being manufactured by Pakistan and China would start from March 2007.

He said the annual production of the aircraft would be adjusted to clear for timely replacement of old aircraft retiring from the Pakistan Air Force inventory.

Answering a question, he said Pakistan needs to have around 150 aircraft while the co-partner in the project China would require around 250 fighter aircraft.

He said the Prototype 4 is being manufactured and is likely to be completed by the end of the year. This aircraft is designed to house the complete avionics package.

The fifth Prototype would again be a ground testing model used for fatigue testing to determine the operational life of the aircraft, he said adding, this prototype would be manufactured after qualification of fourth one.

In reply to a question, he rejected all the rumours about the non-availability of the engine of the aircraft by Russia saying there was no substance in the news, which was merely based on the press statement of Russian Defence Minister prior to his departure for India.

He said the engine supply contract of Russia with China is well intact and there is no ambiguity in it. The Air Vice Marshal said this aircraft would be capable of carrying short range, beyond visual rake (BVR), anti ship as well as anti radiation missiles.

Additionally, the carriage of high and low drag bombs, laser guided, runway penetration, and cluster bombs has been catered for.

PAC chief Air Marshal Aurangzeb gave detailed briefing about the different projects being undertaken at the complex like manufacturing of Mashaak, Super Mashaak, and K8 aircraft.

He also briefed about the overhauling projects of F-16, F-7, F-7 PG, Mirage, C-130 and other aircraft in PAF inventory.

He said in the case of JF-17 aircraft Pakistan would be having manufacturing share of around 50 percent of the airframe and at later stage this would be enhanced to 100 percent.

Later, the media persons were taken to various installations of the PAC.

this is great news.

Definately!

Yes!

This will secure our 777 fleet from the corrupt PIA officials!

I love the 777 and PIA has just made a great decision



I am predicting we will phases the 747's and get the 777's

KSE 100-share index crosses two barriers in one go



By Our Staff Reporter

KARACHI, May 9: Stocks on Monday maintained their upward drive as investors continued to build up long positions on selected counters under the lead of oil shares aided by positive news about an imminent sell-off of PTCL to one of the eight short-listed bidders. The PTCL and leading index shares in the oil sector, which were in the forefront of the market crash a couple of weeks earlier, were the inspiring force behind the grand rebound indicating that the current run-up could be sustained on both technical grounds and positive news about the fresh forward trading rules.

The KSE 100-share index recovered another 202 points at 7,385, adding Rs52 billion to the market capital at Rs2,072.00 billion. The breach of two consecutive barriers in a session is reminiscent of February run-ups when five to seven upward barriers were broken in each session and it soared to all-time peak level of 10,303 points.

All roads led to PTCL as no one was inclined to miss the bandwagon as the current level is billed as most “attractive for any future safe and gainful investment,” brokers said.

Identical reports about its sell-off some two months back had also pushed its share value to a record high of Rs90 plus followed by market talk that its bench mark price may be fixed $2 per share of Rs23 including a premium of Rs13.

It was traded sharply higher by Rs3.20 at Rs67.40,incidentally being the day’s peak level and reflected further price appreciations in the sessions to come on a massive activity of 114m shares. “News about the privatization of PTCL before the end of June seems to have lured massively battered general investor back in to the arena to realise quick daily gains,” analysts said. ”The perception behind their re-entry is to recoup in part previous losses suffered during the recent market crash.”

The market’s terribly buoyant mood was also well-reflective in the meteoric rise of 2.81 per cent or 201.73 points in the KSE 100-share index at 7,384.88 as compared to 7,183.25 at the last weekend.

Leading energy shares also came in for strong speculative support and rose sharply higher amid active trading and so did most of the blue chips on the other counters under the lead of Atlas Honda and Bhanero Textiles.

Other prominent gainers included Suzuki Motors, Millat Tractors, Mari Gas, Attock Petroleum, Pakistan Refinery, PPL and PSO, which posted gains ranging from Rs5.50 to Rs11.25.

Losers were led by Colgate Pakistan and Valika Art Fabrics, off Rs9 to Rs25 followed by Artistic Denim, Shell Pakistan, HinoPak Motors, Clover Pakistan and BOC Pakistan, up Rs4 to Rs6.

Trading volume further rose to 372m shares from the previous 318m shares as gainers held a comfortable lead over the losers at 168 to 121, with 43 shares holding on to the last levels.

Apart from PTCL, the other actives were led by OGDC, up Rs3.65 at Rs101.25 on 85m shares followed by PSO, sharply higher by Rs11.35 at Rs377.35 on 25m shares, National Bank, up Rs3.65 at Rs99.05 on

24m shares, MCB, higher by Rs3.65 t Rs77.20 on 10m shares, Pakistan Petroleum, firm by Rs8.70 at Rs183 also on 10m shares and Pakistan Oilfields, higher Rs3.85 at Rs275.05 on 9m shares.

Other actives were led by DG Khan Cement, up Rs1.40 on 17m shares, Fauji Fertilizer Bin Qasim, firm by 80 paisa also on 17m shares, and Sui Northern Gas, higher by Rs2.75 on 12m shares.

FORWARD COUNTER: PPL led the list of actives, higher by Rs8.75 at Rs184.10 on 9m shares followed by PTCL, up Rs3.20 at Rs67.85 on 7m shares, OGDC, higher Rs3.50 on 6m shares, and PSO, up Rs10.10 at Rs379 on 5m shares.

DEFAULTER COS: Prices on this counter showed modest rise on stray support in sympathy with firm conditions prevailing in the ready section but trading remained light in all the shares.

India offers joint venture in plastic industry

KARACHI, May 9: Visiting delegation of Indian plastic industry has offered joint ventures in the manufacturing of plastic products and plastic polymers in Pakistan. This offer was made by the leader of the delegation from Organization of Plastic Processing of India, Pradeep Rathod while addressing the members of Karachi Chamber of Commerce and Industry (KCCI) here on Monday.

“There is a great potential for joint ventures in the plastic sector between the two countries and Indian firms can offer technical expertise to Pakistani counterparts,” he said.

He pointed out that Indian plastic industry was well developed and can cater to all the requirements of Pakistani industry besides entering into joint ventures in the manufacture of thermoware, vaccumeware, houseware, writing instruments and moulded furniture and auto parts.

Rathod said that India can also supply plastic injection moulding machines to Pakistan. In his presentation, he said the total export of plastic products from India was $1.129 billion while total investment was estimated at $6.98 billion.

He said more than 22,000 units in the manufacture of plastic and plastic polymers were operating in India with the total turnover of $ 8.146 billion.

Senior vice president of KCCI Mian Abrar Ahmed said that the visit of Indian delegation will open venues for joint ventures. —APP

Mekran Coastal Highway zigzags to future economic haven

By Zaman Khan

KARACHI: The Mekran Coastal Highway, which zigzags from Karachi up to Gwadar along the Arabian Sea and through the hinterland of southern Balochistan, has opened vast vistas of tourism, business and economy in the future economic haven of the country, tour operators said on Saturday.

After the completion of the Highway connecting the country’s densely populated industrial port city of Karachi with the fast developing picturesque Gwadar deep sea port, near the Gulf, the two way travelling of buses has soared three times to 2,400 daily from 800 daily in 2001, coach owners told The News.

The number of coaches plying on this route has also increased to 60 daily from 28 daily respectively after the construction of the two-way 533-kilometre coastal highway, bus owners said.

General Pervez Musharraf inaugurated the Makran Coastal Highway project in August 2001, consisting of Karachi-Gwadar, Pasni-Gwadar, and Ormara-Liari (Balochistan) Highways.

Karachi Gwadar track was first to be constructed while Frontier Works Organisation (FWO) has completed the work over two phases (first and third) of the project in last year.

Director General of FWO Brigadier Anwar talking to the News said, "the Liari-Ormara Highway is about 248 kilometres and Pasni-Gwadar Highway is about 132.7 kilometres long costing Rs3.9 billion and Rs2.8 billion respectively. The total length of Makran Coastal Highway is 533 kilometres."

Regarding the surge in number of commuters on Karachi Gwadar route a coach owner Sanaullah Jan said that the unprecedented entrepreneuring opportunities in Gwadar has spurred tremendous economic activity not only on mega development but also on micro level.

A large number of persons carry daily use items from food beverages, to clothes and bed spreads to Gwadar and on the way back bag goods brought in from Iran, Sanaullah said.

There are 60 coaches plying on Karachi Gwadar route that also connects to other cities of Makran division. Thirty coaches on upstream and thirty on downstream highway, each carrying an average of 40 passengers that is around 2400 persons per day, he informed.

Before construction of Makran Coastal Highway there were 28 coaches plying on the route that was a miserable semi metalled road and at times only a mud track, Sanaullah said adding that daily payload of passengers never exceeded 900 in those days.

Evidently, the development in Gwadar and construction of Coastal Highway has pushed up the number of passengers by 166 per cent, he said making calculation vital to his trade.

The coaches used to reach Gwadar in 18 to 24 hours before the highway was constructed now it takes 14 to 16 hours " Mohammed Aslam, supervisor of Aslam Dandai Coach.

Muhammad Saleem 60, a passenger said "Karachi to Gwadar takes less time now while to reach Turbat which is nearer to Karachi than Gwadar requires 10 to 12 hour of stomach boggling travelling because of shabby roads."

Mohammed Aslam a regular commuter whose family lives in Balochistan said that before the construction of Makran Coastal Highway there were 6 to 9 stop between Karachi to Gwadar but now there are just two at Ormara and Pasni respectively.

He further said that the bus takes two hours from Chakiwara stop in Karachi to Liari the first stop 100 kilometres north of Karachi in Balochistan on the existing N-25 RCD Highway.

Talking about the difficulties faced during the travelling 32 year old Attaullah Dashty, a coach owner, told, "There are no proper arrangements to facilitate the coaches and their passengers by the government." During the survey ‘The News’ found that before the construction of Makran Coastal Highway Rs600 were charged per passenger that has dropped to Rs500 including 20 Kg free baggage. Excess baggage is charged at Rs30 per 10 Kg while cargo invites freight of Rs120 per 40 Kg.

Coaches are carrying 2200 to 2400 maund cargo in a day, one maund is equal to 40 Kg.

"Every coach from Karachi to Gwadar and Gwadar to Karachi carries 40 to 42 maund cargo," Haji Abdul Hameed Dashti a coach owner said adding that "Rs.120 are charged on one maund cargo. So, an owner of a coach earns Rs10000 on cargo from every trip besides passenger fare."

Transport operators said that although Makran Highway has reduced the distance by 60 per cent yet the cut is not visible in the fare due to steep rise in price of diesel.

Mohammed Aslam a driver blamed the law enforcement agencies for harassing passengers, drivers and helpers all the way from Gwadar to Karachi.

Fishermen living along the Makran coast are also reaping the benefits of the coastal highway.

"Before the road, we travelled on muddy and sandy track along the coast way," he said. "Now we can go easily to nearest city to sell our catch," Abdullah Ali a fisherman said.

Mohammed Mushtaq leader of Bus owners Association informed that each month two to three buses are added to Karachi Gwadar route as leasing companies are facilitating bus purchase.

There are around 60 coaches moving up and down between Karachi and Makran division and among these 28 are for Gwadar city due to heavy passenger load of the rapidly developing Gwadar Port.

Mushtaq said that there are 11 coach services plying on Karachi-Makran routes, including Aslam Dandai Coach, New Aslam Coach, Mula Jan Coach, Al-Kareem Coach, Jawed Serhadi Coach, Imami Coach, Imam Jan Coach, New Imam Jan Coach, Al-Mushtaq Coach, Al-Masood Coach and Al-Mumtaz Coach.

Sindh framing investor-friendly policies


By Our Staff Reporter

KARACHI, May 10: The Sindh Government was framing such policies that could attract investors from all parts of the country and abroad to achieve rapid industrialization of the province. This was stated by Adviser to the Chief Minister Waseem Akhtar at the inaugural ceremony of the second co-located international exhibition on Food Processing, Plastic, Printing and Packaging industrial machinery and applications.

The two exhibitions, plastic, printing and packaging Pakistan 2005 and Foodtech Pakistan 2005, which began on Tuesday, would continue till May 13 at the Karachi Expo Centre.

Mr Akhtar said that the presence of such a large number of international companies at this exhibition proved that Pakistan had potential of doing business at an international scale because of its ideal geographical location in Asia.

More than 130 local and international companies from 12 countries are participating in the two co-located exhibitions, spread over three halls of Karachi Expo Centre. Prior to Waseem Akhtar, President of Pakistan Plastic Manufacturers’ Association Zakaria Usman, President KCCI Khalid Firoz, Managing Director Pegasus Consultancy Aasim A Siddiqui, and Managing Director CEMS-Singapore Edward Liu addressed the inaugural ceremony.

Highlighting the significance of plastic manufacturing sector in the county’s economy, Zakaria Usman said that after many years, plastic industry of the country has started showing signs of a remarkable growth. “Plastic industry is the mother of all the rest of the industries because of its involvement in various shapes and forms,” he said and added that Pakistan has now entered into technical plastic manufacturing.

The President, KCCI, Khalid Firoz said that perception about Karachi and Pakistan had changed positively and commercial events like exhibitions and conferences had played a key role in improvement of its image. He suggested that lifting of import duty on raw material to encourage value-addition in the country’s SME’s production capabilities.

The organizers, Edward Liu of CEMS-Singapore and Aasim A Siddiqui of Pegasus Consultancy highlighted the salient features of the exhibition, which has successfully attracted a large number of international participation.

International participation at the show is dominated by Chinese companies. Indian companies have also taken interest in finding business avenues in Pakistan. In total 13 Indian companies are participating in the exhibition.

Major area of the exhibition is covered by the plastic and packaging industry, whereas the food processing equipment at display is expected to gather immense attention from more than 20,000 trade visitors

Exports to Asean at less than $350m



By Mohiuddin Aazim

KARACHI, May 10: Pakistan’s exports to the member countries of the Association of South Asian Nations or Asean rose slightly to $262 million in nine months of the current fiscal year from $254 million in the same period of the last fiscal. Full year exports may also not show any significant increase.

Analysis of the export data contained in the State Bank’s Statistical Bulletin show that Pakistan’s exports to 10 countries in the fold of Asean stood at $342 million in fiscal year July-June 2003-04, almost unchanged at the 2002-03 level of $341 million.

The Asean countries include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Pakistan’s exports to four of these countries namely Indonesia, Malaysia, Singapore and Thailand account for the bulk of its total exports to the Asean region as other six countries are not major destinations of Pakistan exports. See Table.

Pakistan is making efforts to boost its external trade with the Asean countries through free trade agreements with them and the ongoing visit of Prime Minister Shaukat Aziz to these countries is a part of the efforts. Islamabad is also trying to become a dialogue partner in Asean for this purpose.

The agreements for boosting bilateral trade with Asean nations signed during Mr Aziz’s visit there, and the promises held out by some of them to also sign free trade agreements with Islamabad would take some time to yield results. But the fact that there exists a vast market for Pakistan’s exports in the Asean market can hardly be over-emphasized.

Analysis of data shows that Pakistani exporters have been exporting a variety of products to Asean countries including both conventional and non-conventional items. The list of major items exported to Asean region in fiscal years 2003 and 2004 and also in July-March 2004-05 include cotton and textiles, cotton and wool fabrics and made-ups, rice, wheat, fish, leather and leather products, fruits and vegetables, carpets, oilseeds, petroleum products, medicines, medical & surgical instruments and plastic, etc.

Pakistan’s exports to Asean remained unchanged in fiscal year 2004 compared with 2003 and even this fiscal year, exports to Asean are likely to remain at the last year’s level or slightly above that. This means Pakistan needs to boost its exports to the 10 Asian nations aggressively to keep overall exports growing. During the current fiscal year, Pakistan is expecting to earn $14 billion through exports, up from $12.3 billion.

Exports in nine months of the current fiscal year have already reached $10.207 billion. Pakistan needs to boost its exports much aggressively in the coming years than in the past because a faster-than-projected growth of its economy and skyrocketing of oil prices in the international market has resulted in a sharp increase in imports. If the pace of growth in imports continues to outdo the rate of increase in exports, the resultant huge trade deficit will create immense problems for the country. Already in nine months of this fiscal year, the deficit has soared to $4.262 billion from $1.592 billion in a year-ago period.

Clearly, the country needs not only to widen the base of export items but to explore newer markets and boost exports to those existing markets including the Asean region whose share in Pakistan’s overall exports is very small. If this year’s exports reach $14 billion, chances for which are very fair, and if exports to Asean region rises to $350 million, which also is a possibility, the share of exports to Asean will be just 2.5 per cent of the total. So, there is an urgent need for both the government as well as the private sector to look for ways to boosting exports to Asean.

This has become all the more necessary because Pakistan has so far not been able to grab a fairly large share of additional market in textiles exports after the end of quotas from January.


Pakistan’s exports to ASEAN countries
[Amount in million dollars]
Countries Fiscal year 03 Fiscal year 04 July-March 05
1. Brunei 1.864 0.956 0.299
2. Cambodia 2.388 4.843 6.734
3. Indonesia 50.096 54.353 48.634
4. Laos 0.338 1.064 0.228
5. Malaysia 60.666 75.563 49.593
6. Myanmar 8.161 1.517 2.397
7. Philippines 26.055 25.195 20.125
8. Singapore 110.727 121.888 65.827
9. Thailand 51.253 41.263 43.235
10. Vietnam 29.918 15.957 25.053
Total exports 341.466 342.599 262.125
to ASEAN

Good news...

Yes!

This will secure our 777 fleet from the corrupt PIA officials!

I love the 777 and PIA has just made a great decision



I am predicting we will phases the 747's and get the 777's

^ But the corrupt officials already made their mark!! :D

Airbus is more economical (and cheaper to buy).


Pakistan also could've gone for grounded but almost brand-new United and others' jets but no the corrupt and US lackeys had to buy new ones... :ohno:

Yes, Buy the new ones the 777 ROCK!

I mean dude have you ever been on these?

They kill airbus and the shitty 747's

Good news...
Back from somolia? :jk:

Back from somolia? :jk:

:rofl: :rofl: :rofl: :rofl: :rofl:

Yes, Buy the new ones the 777 ROCK!

I mean dude have you ever been on these?

They kill airbus and the shitty 747's

Why buy new when you get little used for a lower price???

Pakistan doesn't have money to flush down the toilet (or does it? :D ).

Why buy new when you get little used for a lower price???

Pakistan doesn't have money to flush down the toilet (or does it? :D ).
Well lol the 777 is a new class of planes buying a new one would be cheaper to refit the other ones.

The trade and business activities between Pakistani and Swedish business communities will increase with the launch of the Swefly flights from the UK to Lahore via Stockholm.
It was told by the Swedish Finance Director of the Swedish National Airlines Swefly in London.

Mats Hultnas was speaking at the launch dinner. He said that many Swede businessmen have established businesses in Pakistan and many more are interested and these flights which are very economical compared to other airlines will certainly give boost to these activities.

Mr. Hultnas said that he was pleased to meet the Prime Minister of Pakistan in Karachi who took keen interest in the project and he thanked the Embassy of Pakistan in Stockholm for their support, " they did a great job", he said.

He told the gathering included by the travel agents and prominent businessmen that the much interest has been shown among the Scandinavian countries and soon they will start flights for other cities of Pakistan , Toronto and Bangkok.

Swefly Marketing Director Mohammed Naveed Siddiqui said that the Luton airport from where the first flight will start has shown keen interest in the project and larger hangers have been constructed for Swefly Boeings.

The flights, 3 weekly from 19th May 2005 and 6 in a week from 19th June 2005 will go via Stockholm, the capital city of Sweden.

Hyundai Information Technology Pakistan (HIT) will invest $20 million in various IT projects during 2005-06 in Pakistan. The company provided permanent employment to minimum 75 local highly skilled IT resources in Hyundai IT Pakistan during the first year of its establishment. The company also plans to increase the numbers of jobs from 75 to over 300 in the next three years. Sindh Minister for IT Mustafa Kamal was chief guest at the opening ceremony of Hyundai-IT Pakistan (HIT) here on Monday.

The launch of Hyundai IT-Pakistan was part of its continued long-term commitment to invest further in IT industry of the country. The company envisions to become a truly world class IT company in South Asian region, based in Pakistan.

The company is playing a vital role, like leading regional IT players, not only serving the domestic market but also exporting and promoting 'Made in Pakistan' IT products, as well as services to customers in neighbouring countries.

The HIT, an affiliate of Hyundai Group, which is among the three largest business groups in South Korea, is a leading multinational IT company.

Headquartered in Seoul, HIT is on the forefront of providing information technology services in the areas of System Integration, IT outsourcing, customer-focused IT-enabled solutions, services and network, communications.

The company provides infrastructure to industries worldwide, including automotive, engineering, construction, electronics, chemicals, banking, financial services, airports, seaports, army, defence, transportation and health care.

Since 2000, the company is engaged in country's largest IT automation project of State Bank of Pakistan (SBP) through branch office in Karachi.

The HIT management decided in recent past to convert the branch office into a full-fledged company, and the result is incorporation of the wholly owned subsidiary.

The company would bring the advanced IT technologies and experience to various industries, especially banking sectors, that has most powerful technologies and workforces.

The financial superhighway would emerge as the world-class communication infrastructure for e-commerce and improve the performance and customer satisfaction of the financial organisations in the country. Regional Manager, South East Asia, Tariq Naseem, Project Manager, J. S. Kim and General Manager Human Resource and Operation, Syed Hasan Qaiser were also present on the occasion.

Sweden Airport
http://nyssa.tamu.edu/~gibson/Hobbies/Sweden_Album/Photos/Meds/Sweden_1-25_med.jpg

Lahore Airport
http://www.lahoreairport.com.pk/images/departureg4.jpg
http://www.lahoreairport.com.pk/images/departureg3.jpg
http://www.lahoreairport.com.pk/images/runway.jpg

Lahore is amazing airport!

A great feeling to it

it reminds me of Newark airport

Pakistan could have bought 16 slightly used 777s from United and some other airlines instead of 8 new ones. I flew in United's 777s and they were in great shape, almost like new.

Buying new was not a good decision.

I saw SweFly's ad in Dawn a few weeks ago.

So far they are only flying Lahore to cities like Oslo, Stockholm Copanhagan. I expect them to start a service for Karachi as well; that part of Europe has many Pakistanis living there it's a smart move by this airline.

Pakistan could have bought 16 slightly used 777s from United and some other airlines instead of 8 new ones. I flew in United's 777s and they were in great shape, almost like new.

Buying new was not a good decision.
Buying new was certainly a good decision. It is not only an economical decision but also a morale booster for the airline staff that their airline is moving forward. Pls airbus was indeed cheaper but less fuel efficient, less cargo capacity but certainly more passenger capacity. but when PIA makes an aircraft deal its for the next 20-25 years and certainly B777 would prove to be a better option. inshallah

Yeah i have been noticing improvement since this

Its like PIA reborn!

I mean goddamit i used to hate PIA and demanded we fly British Airways instead but after last August i am like holy crap

PIA zindabaad!

Buying new was certainly a good decision. It is not only an economical decision but also a morale booster for the airline staff that their airline is moving forward. Pls airbus was indeed cheaper but less fuel efficient, less cargo capacity but certainly more passenger capacity. but when PIA makes an aircraft deal its for the next 20-25 years and certainly B777 would prove to be a better option. inshallah

^ You do not make sense replying to what Nawaz said!!

Slightly used planes which save money are much betterrr.. The biggest moral boost comes when with your good 'customer service' (which PIA lacks in its paindoo host / hostesses) ends up earning you good profits!!


Believe me, small airlines like Delta and Southwest with older planes have a better financial situation than PIA (which CAA, through its tricks, have already made one of the only airlines at Karachi, though airlines wanted to make Karachi a hub but CAA and its "strategies".. :weirdo: :bash: :bash: :runaway: )..

PPL finds gas in Gwadar wells

ISLAMABAD: Pakistan Petroleum Limited (PPL) has found gas prospects in the wells excavated at Gwadar. Initially two wells were excavated among which prospects of gas presence was found, Pakistan Petroleum Limited official told on Thursday.

He said $ 200 million have been allocated for digging wells at Pasni. “Sixty per cent shares are possessed by PPL whereas government and Mari gas jointly possess forty percent shares to carry digging process”, the official added. No indication of presence of oil has so far been found, he added. app

---------

$ 200 million is alot, looks like there serious on this one.

KARACHI: A new vehicles manufacturing plant will be set up in Karachi.

A delegation of the Chinese company, First Automobile Group briefingchief minister about details of this project told that it envisaged an investment of Rs.1.25 billion, which included cost of the plant nearly 72 percent of the amount, while 10 percent of the amount would be spent on Pak-China Polytechnic Institute and Research Centre with a capacity of providing training to 150 students.

It was further told in the briefing that the plant would start manufacturing family van by January 2006, while light duty truck by January 2007 and cars by June 2008.

ISLAMABAD, June 19: Pakistan has decided to revitalize its ports and shipping sector by upgrading the Karachi Port, Port Qasim and the Pakistan National Shipping Corporation (PNSC) with an investment of about Rs120 billion.

It also intends to introduce a Merchant Shipping Act to provide facilities to Afghanistan and Central Asian Republics and capture their transit trade.

A senior government official told Dawn on Sunday that a decision had been taken in principle at the top level and relevant agencies had been asked to start implementation immediately.

He said port facilities, although sufficient for the time being, could face capacity shortages after two to three years while merchant fleet of the Pakistan flag-carrier, PNSC, was really in a bad shape at present.

To start with, about Rs13 billion are being planned to be spent on PNSC to import six second-hand Panamax or Handymax vessels at an estimated cost of $18 million each. Similarly, four second-hand crude oil tankers would be imported at an estimated cost of $25 million each.

The sources said the government had estimated it would be investing about Rs75 billion on Karachi Port’s upgrade. Of this, the federal government would provide about Rs17 billion and the rest would be arranged through private sector financing. Another Rs18 billion would be spent on improving the Port Qasim, with the private sector injecting Rs14 billion.

This has been planned on the forecast that general cargo traffic would increase by 51 per cent, dry cargo by 75 per cent, liquid bulk by 43 per cent, iron ore and coal by 140 per cent and containers by 76 per cent during the next five years.

The federal government has come to the conclusion that the PNSC requires immediate refurbishment because its ships are outdated and do not suit modern trade, the sources said.

It has also failed to acquire vessels for either the dry cargo trades or container or feeder trades and except crude oil, Pakistan’s whole trade is being handled almost entirely by foreign ships.

After nationalization in the 1970s, the PNSC fleet has dwindled from over 50 vessels to just 13, and recent efforts by the PNSC management to procure an oil tanker have failed to materialize.

A new shipping policy, currently in preparation stage, would address two main issues. First, the inability of the PNSC to call at Indian ports for third-country cargo excludes one of the largest markets for the country. Secondly, the inability of the Pakistani ship owners to arrange financing from local banks, lack of confidence and procedures to have their mortgages registered and laws of foreclosure have also kept foreign banks away from the market.

Now the government has decided to immediately introduce a Merchant Shipping Ordinance and allow Pakistani ship owners to act as if they are located in export processing zones, thus enabling them to arrange international finance and to have their banks register a mortgage in Pakistan.

Similarly, the local banks would also be encouraged to extend financial assistance to potential ship owners and give clear rights to banks and financial institutions, both local and foreign, to foreclose on ships in the event of default of loan agreement by ship owners without having to obtain a court order.

The government also plans to amend bilateral shipping agreements having cargo reservation clauses to enable national and third-country flagships to call at ports and carry national trade. There is also a need to institutionalize the role of freight forwarding agencies for efficient movement of cargo, the officials said.

The navigational channels at the Port Qasim and Karachi Port would be further deepened, widened and improved to ensure full-time night navigation. In case of Gwadar also, all port operations would be done through private sector.

Courtesy: Dawn June 20th, 2005

its bullshit

its bullshit
What's bullshit? The new policy or PNSC.

Great this place is getting better by the moment

I was later found to be an MMA Nazim who appologized and cited excessive Briyani as the cause...:)

its bullshit


What is Bullshit?

Just saw it on ARYONE Malik Riaz also signed a contract to form a JV company called Bahria-Emirate.

The project includes 2,500 Flats, Highrise buildings and a Main Boulevard. All of the 1.9bn Dollars will be invested in Isloo Bahria town.

yes i saw it on news in ary

I dont know Why UAE is taken so much interest in Pakistan and Pakistanis in UAE
hmm....very nice

Bahria Town signs JV with Al Habtoor Group

Staff Report

DUBAI: Al Habtoor group has joined hands with Bahria Town Pvt. Ltd to form a Joint Venture Company titled “Bahria Emirates” which will work on Bahria projects in Pakistan, following a signing ceremony in Dubai in which Malik Riaz Hussain, CEO of Bahria Group, signed up with the aim of turning Bahria Town into a truly multi-national company.

Al Habtoor is one of the largest and most respected groups in the UAE. It is best known for construction and is internationally recognized through its investments in hotels, real estate projects, educational institutions, insurance, automobile dealership and publishing. The Group is involved in many landmark projects within the Emirates, such as the world’s first seven star hotel — the imposing Burj Al Arab that rises to a staggering 321 meters on a man made island in the Gulf — and Sheikh Rashid Terminal Concourse at Dubai International Airport, the Jumeirah Beach Resort and the architecturally adventurous Concourse Building at Dubai International Airport.

According to the agreement with Malik Riaz Hussain, Al Habtoor will develop high rise buildings, lakes, boulevards, Phase 8 & 9 , a golf city opposite DHA phase 02 on main GT Road in Punjab province and a 26 tower enclave with 2,500 flats complimented with one mega shopping mall in Bahria Town Islamabad. Malik Riaz told Daily Times that this initiative of forming a JV with Al-Habtoor would lead to a transfer of technology in the construction and engineering industry and create employment opportunities for thousands of Pakistanis, improve the skills of Pakistani manpower and provide international standards in Pakistan for commercial and residential property.

http://www.lahorerealestate.com/ads/public/img-1119590620.gif

this is 1.9 billion dollar investment is good for bahria and has come after dha announced 800 milion dollars investment there by al ghura and bahria have signed al ghuras rivals Al Habtoor group. looks like there is good competition between these two.

Teradata Establishes Global Consulting Center in Pakistan

KARACHI, Pakistan - Teradata, a division of NCR Corporation (NYSE: NCR) today announced the establishment of a Global Consulting Center (GCC) in Pakistan. The GCC is an expansion of the Center of Expertise in Pakistan for data warehousing and customer relationship management (CRM) covering the Europe, Middle East and Africa (EMEA) markets announced earlier this year.

"We are excited about our progress in Pakistan. We have developed specialized skill sets in data warehousing and CRM in the market, and we have one of the largest numbers of highly skilled Teradata specialists in the region," commented Hermann Wimmer, vice president for Teradata, EMEA. "With the recent achievement of CMM Level 5, NCR in Pakistan is leading the IT industry through true innovation, quality initiatives and a strong customer focus."

"This is a landmark development in the history of Pakistan's IT industry. It is the first time a major multinational has decided to set up a facility of this scope and sophistication with the potential of employing hundreds of Pakistani computer science graduates," added Syed Veqar ul Islam, managing director, NCR Pakistan, Bangladesh and Afghanistan.

Currently 75 high-caliber professionals are already working within the Center of Expertise and Teradata Professional Services organization, and with the GCC initiative, the number is expected to reach 150 in the next six to12 months.

About Teradata Division

Teradata, a division of NCR Corporation (NYSE: NCR), is the global technology leader in enterprise data warehousing, analytic applications and data warehousing services. Organizations around the world rely on the power of Teradata's award-winning solutions (www.teradata.com) to get a single, integrated view of their business to enhance decision-making, customer relationships and profitability.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leading global technology company helping businesses build stronger relationships with their customers. NCR's ATMs, retail systems, Teradata® data warehouses and IT services provide Relationship Technology™ solutions that maximize the value of customer interactions and help organizations create a stronger competitive position. Based in Dayton, Ohio, NCR (www.ncr.com) employs approximately 28,900 people worldwide.

Boeing and Airbus may set up factories in Pakistan
M RAFIQ GORAYA

ISLAMABAD (July 04 2005): Pakistan has invited Boeing Company and Airbus to set up their factories here and both aviation giants, one from US and the other from Europe, have shown keen interest to invest up to $20 billion in 7 years, sources told Business Recorder here on Sunday.

They said that 60,000 kanals land is being acquired near the Pakistan Aeronautical Complex, Kamra, in District Attock, midway between Islamabad and Peshawar, which has the potential to become the Seattle of Pakistan and provide jobs to 35,000 engineers, technicians and other skilled workers.

Pakistan Aeronautical Complex (PAC), an organ of Pakistan Ministry of Defence, is playing a pivotal role in the aeronautical industry and avionics with its four components, the Mirage Rebuild Factory, Aircraft Manufacturing Factory, F-6 Rebuild Factory, and Kamra Avionics and Radar Factory.

Sources said that Prime Minister Shaukat Aziz, who has been elected MNA from this area, is taking personal interest in the project to bring space technology, aerospace engineering, communication systems and sciences into Pakistan.

Boeing Company manufactures commercial airplanes, military aircraft and missile systems, airborne warning and control system (AWACS) and air traffic management. It has several factories in several countries, which produce major assemblies and parts for Boeing airplanes, and joint ventures for composite manufacturing airplane, modification and repair and spares.

The European aviation giant Airbus, a consortium of several countries, has a product line comprising 12 aircraft models--from the 100-seat single-aisle 'A 318' jetliner to 555-seat 'A-380'.

Industry analysts say that 21st century belongs in Asia, as there would be massive economic activity in this continent. Therefore, more and more US and European companies want to relocate their factories in Asian countries.

Pakistan, geographically and strategically ideally located, is the most attractive country for investors and industrialists in the changing economic, political, social and strategic scenario of Asia, as it is likely to be the hub of industrial and commercial activity in the near future.


Copyright Business Recorder, 2005

This is great news. I wonder how long it will take for the government to finalise the deal with the concerned giants.
$20 Billion is a huge amount over 7 years and this would be so good for pakistans economy. Providing 35000 jobs is amazing for pakistna. Atleast a good amoutn of engineers and technicians would be hired. Something that we as paksitanis are good at. Specialised fields in paksitna are doctorate and engineers! :lol: We all know that.haha..

See again in Punjab

GREAT NEWS INDEED, BUT IF THESE FACTORIES WERE GONNA BE LOCATED IN SWAT OR NAARAN IT CAN BE REPLICA OF SEATTLE. SEATTLE IS KIND OF LIKE NAARAN IN THE KOHISTAN DISTRICT OF THE BEAUTIFUL NORTH WEST FRONTIER STATE.

Bullshit news

i dont have high hopes for this one i mean 20 billion in 7 days!

you cant blame me either after the KPT diasaster

oh bhai 7 years.

i know i had a typo but i comprehended the fact it will take 7 years

and the reason i wrote 7 days was because i just watched the ring LOL

ya I also think 1200bn rupees is too much.

ISLAMABAD (July 04 2005): Pakistan has invited Boeing Company and Airbus to set up their factories here and both aviation giants, one from US and the other from Europe, have shown keen interest to invest up to $20 billion in 7 years, sources told Business Recorder here on Sunday.

They said that 60,000 kanals land is being acquired near the Pakistan Aeronautical Complex, Kamra, in District Attock, midway between Islamabad and Peshawar, which has the potential to become the Seattle of Pakistan and provide jobs to 35,000 engineers, technicians and other skilled workers.

Pakistan Aeronautical Complex (PAC), an organ of Pakistan Ministry of Defence, is playing a pivotal role in the aeronautical industry and avionics with its four components, the Mirage Rebuild Factory, Aircraft Manufacturing Factory, F-6 Rebuild Factory, and Kamra Avionics and Radar Factory.

Sources said that Prime Minister Shaukat Aziz, who has been elected MNA from this area, is taking personal interest in the project to bring space technology, aerospace engineering, communication systems and sciences into Pakistan.

Boeing Company manufactures commercial airplanes, military aircraft and missile systems, airborne warning and control system (AWACS) and air traffic management. It has several factories in several countries, which produce major assemblies and parts for Boeing airplanes, and joint ventures for composite manufacturing airplane, modification and repair and spares.

The European aviation giant Airbus, a consortium of several countries, has a product line comprising 12 aircraft models--from the 100-seat single-aisle 'A 318' jetliner to 555-seat 'A-380'.

Industry analysts say that 21st century belongs in Asia, as there would be massive economic activity in this continent. Therefore, more and more US and European companies want to relocate their factories in Asian countries.

Pakistan, geographically and strategically ideally located, is the most attractive country for investors and industrialists in the changing economic, political, social and strategic scenario of Asia, as it is likely to be the hub of industrial and commercial activity in the near future.

Copyright Business Recorder, 2005

See again in Punjab

its in NWFP, stop ranting.


GREAT NEWS INDEED, BUT IF THESE FACTORIES WERE GONNA BE LOCATED IN SWAT OR NAARAN IT CAN BE REPLICA OF SEATTLE. SEATTLE IS KIND OF LIKE NAARAN IN THE KOHISTAN DISTRICT OF THE BEAUTIFUL NORTH WEST FRONTIER STATE.

swat and naran are tourist attractions and we dont want to spoil them with factories.

ISLAMABAD, July 4: The government plans to set $3.5 billion Foreign Direct Investment (FDI) target for 2005-06, which would not be a problem to achieve.

“The FDI figure for 2004-05 is likely to touch $1.35 billion and now we plan $3.5 billion target for 2005-06,” said the Chairman, Board of Investment (BoI), Wasim Haqqie.

He told Dawn here on Monday that the FDI had created a new history after 1995-96 when it crossed $1 billion mark. But for 2004-05, he pointed out, FDI figure was touching $1.35 billion, which also included privatization proceeds worth around $320 million.

Responding to a question, the chairman BoI said that the $3.5 billion FDI target, being set for the current financial year, would also include $2.6 billion privatization proceeds to be received from Etisalat company of the UAE on account of the disinvestment of 26 per cent shares of the Pakistan Telecommunication Company Limited (PTCL).

He was confident that positive environment would attract sizable FDI every year. “About 37 new spinning mills are being set up in Nooriabad industrial zone for which the government is ensuring all possible infrastructure facilities for the investors,” he said.

Regarding shortage of gas and electricity, the BoI chairman said that 27 power projects, costing about $8 billion were in the process of being set up in the country. These projects would be commissioned in seven to eight years and mainly included gas fired, coal fired and hydel projects.

Besides overcoming power shortage, these projects, he said, would generate roughly $1 billion investment every year in the power sector alone. Similarly, he said $1 billion FDI was expected to come in the telecom sector annually.

To another question, he said that a number of investors of Middle East, Singapore and Malaysia had promised to invest in various projects of hotels, shopping malls, housing and entertainment sector.

He said that the government was expecting substantial local and foreign investment in the Small and Medium Enterprises (SMEs). In this regard, he referred to 20 per cent concession in the corporate tax to the SME industry, given in the budget for 2005-06. “This will certainly boost investment in the SME sector,” he added.

However, the chairman BoI admitted that lack of infrastructure facilities especially gas, electricity and human resource development was a big challenge for the government.

Asked about the much talked about ‘one window operation’, he said people should understand that such an operation or a facility could not be provided overnight. He said that shortage of gas and electricity was a major problem due to which all facilities under one roof could not be offered to the investors.

He termed as ‘misnomer’ the terminology of one-window operation and said, “let us face the fact that we are short of gas and power,” he said adding that other infrastructure facilities like land, telephone, water, etc., were readily being provided to the investors.

The BoI, he pointed out was playing a role of facilitator so that maximum investment could take place in the country.

Source:Dawn

http://www.nytimes.com/ads/global/pakistan_banking_finance/four.html

sorry dont have time to copy and paste

its in NWFP


As far as I know, its still in Punjab, although it was proposed that Attock District should be included in NWFP but it wasnt.

Airbus, Boeing Eye Establishing Vendor Bases in Pakistan

LAHORE, July 5 Asia Pulse - Pakistan's Federal Minister for Industries, Production and Special Initiatives, Jehangir Khan Tareen has said that global aircraft manufacturers - Boeing and Airbus - are negotiating with Pakistan to establish their vendor bases here.
Speaking to the newspersons after inaugurating a multinational joint venture company, Metecno Pakistan, here on July 4, he said that contact with the US aircraft manufacturer, Boeing, was made during Hanover Trade Fair in Germany and negotiations were still on for establishing its parts manufacturing company in Pakistan.

Airbus, Boeing Eye Establishing Vendor Bases in Pakistan
LAHORE, July 5 Asia Pulse - Pakistan's Federal Minister for Industries, Production and Special Initiatives, Jehangir Khan Tareen has said that global aircraft manufacturers - Boeing and Airbus - are negotiating with Pakistan to establish their vendor bases here.
Speaking to the newspersons after inaugurating a multinational joint venture company, Metecno Pakistan, here on July 4, he said that contact with the US aircraft manufacturer, Boeing, was made during Hanover Trade Fair in Germany and negotiations were still on for establishing its parts manufacturing company in Pakistan.

wow 2 sources!

Looks like it just may be true

If this is really not false media reports this could mean that Pakistan will be able to develop high tech jets in the future.

Pakistan Zindabaad!

KARACHI, July 6: Nestle Pakistan, a subsidiary of Nestle S.A. Switzerland, has planned to invest $371 million up to the year 2014 under a long term investment plan. The company will invest $209 million for a five-year period under a short term plan, Nestle Pakistan Managing Director Roland Decorvet told a press conference.

Giving the breakdown of investment, he said $70 million would be invested in increasing capacity of milk powder production by 40,000 tons per year and UHT milk production unit boosted by 300,000 tons a year at Kabirwala factory in Multan.

He said $44 million will be injected in its Sheikhupura factory in Faisalabad.

He added that the company has allocated $12 million for expanding milk collection operations. The company, he said, would further bring an investment of $31 million in bottled water plants, says a press release.

why is there MD a yankie

Al Habtoor Group of UAE invests $ 1.9 billion with Bahria Town (Pvt.) Limited




Al Habtoor group of UAE ventures with Bahria Town (Pvt) Ltd for foreign investment worth $ 1.9 Billion for Mixed use multistoried residential and commercial mega projects in Phase 8 & 9 Islamabad.

(June 23rd 05) Al Habtoor is one of the largest and most respected groups in the UAE and best known for construction and internationally recognized through hotels, real estate, education, insurance, automobile dealership and publishing.

The Group is involved in many landmark projects within the Emirates, such as the world's first seven star hotel - the imposing Burj Al Arab that rises to a staggering 321 meters on a man made island in the Gulf and Sheikh Rashid Terminal Concourse at Dubai International. Adding to the portfolio of excellence are the Jumeirah Beach Resort and the architecturally adventurous Concourse Building of Dubai International Airport, just to mention a few.

Al Habtoor group in Joint Venture partnership with Bahria Town Pvt. Ltd. have formed a Joint Venture Company “Bahria Emirates” . This JV will jointly work on Bahria projects in Pakistan and in particular shall have a great impact on the Bahria Town developments on truly multi-national levels.

Al Habtoor will develop high rise buildings , lakes , Champs Elyeese Boulevard, Golf City opposite of DHA phase 02 on main GT Road and 26 tower enclave with 2,500 flats complimented with one mega shopping mall in Phase 8 & 9 of Bahria Town Islamabad.
Malik Riaz believes that this initiative of forming a JV with Al-Habtoor will embark transfer of technology in construction & engineering creating employment opportunities for thousands , improve the skills of Pakistani manpower and provide International standard living in Pakistan for commercial and residential property. This foreign investment is another milestone in the relationship of Pakistan with the Arab world which will prove a landmark in the construction industry.

http://bahriatown.com.pk/images/al_habtoor_group.jpg

Malik Riaz Hussain (CEO Bahria Town (Pvt.) Limited) and Rashid Khalaf Al Habtoor (CEO Al Habtoor Group) ink the Agreement

Standing behind CEO Al Habtoor Group is Salman Ahmed Khan, Assistant Chief Executive, Bahria Town (Pvt.) Limited

Merge This Topic With Economy Watch (http://www.skyscrapercity.com/showthread.php?t=126782)

IMAX Signs First Theatre Deal in Pakistan

LAHORE, Pakistan, Oct 25, 2004 /PRNewswire-FirstCall via COMTEX/ -- IMAX Corporation (IMAX)(IMX) and the Government of Punjab Province, Pakistan today announced an agreement to install the first ever IMAX theatre in Pakistan. The theatre will be located in Lahore, Pakistan, and be part of a multi-function shopping and entertainment park the Punjab Government is developing. The agreement was reached on September 28th, construction will begin soon and the park is expected to open by September 2005.

"This signing is a testament to the worldwide appeal of The IMAX Experience and its ability to transcend culture and language," said co-chairmen and co-CEOs Richard L. Gelfond and Bradley J. Wechlser. "Audiences from San Francisco to Kuwait to Shanghai have been 'wowed' by our educational documentaries, as well as blockbuster Hollywood films converted into IMAX's format, and are paying a premium price for this powerful cinematic experience. We're proud to be entering the country with the support of the Punjab Government and excited to bring IMAX to the people of Pakistan."

"The IMAX Experience is drawing big crowds around the world, and it will provide a compelling reason for Pakistani people and tourists to visit our shopping and entertainment park-driving traffic to the surrounding attractions as well," said Taimur Azmat Osman, Secretary of Information and Culture and Youth Affairs, the Government of the Punjab. "The Lahore IMAX Theatre will offer our citizens a way to learn about space travel, explore the ocean floor and experience some of today's biggest Hollywood releases in the most immersive film format. We very much look forward to introducing IMAX for the first time in Pakistan."

The Lahore IMAX Theatre will serve as an anchor for a shopping and entertainment park that will include retail outlets, a food court, bowling alleys and other attractions. The theatre will be capable of showing IMAX and IMAX 3D films, feature a 12,000-watt digital surround sound system, and be among IMAX's largest, with a screen towering 71 feet high by 95 feet wide and the capacity to seat nearly 700. The first signing in Pakistan follows on IMAX's recent expansion in China, India and Russia, where consumer demand has helped fuel growth of the IMAX theatre network.

About IMAX Corporation

Founded in 1967, IMAX Corporation is one of the world's leading entertainment technology companies. IMAX's businesses include the creation and delivery of the world's best cinematic presentations using proprietary IMAX and IMAX 3D technology, and the development of the highest quality digital production and presentation. IMAX has developed revolutionary technology called IMAX DMR(R) (Digital Re-mastering) that makes it possible for virtually any 35mm film to be transformed into the unparalleled image and sound quality of The IMAX Experience. The IMAX brand is recognized throughout the world for extraordinary and immersive family entertainment experiences. As of June 30, 2004, there were 240 IMAX theatres operating in 35 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(R) and The IMAX Experience(R) are trademarks of IMAX Corporation. More information on the Company can be found at www.imax.com.

This press release contains forward looking statements that are based on management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include the timing of theatre system deliveries, the mix of theatre systems shipped, the timing of the recognition of revenues and expenses on film production and distribution agreements, the performance of films, the viability of new businesses and products, and fluctuations in foreign currency and in the large format and general commercial exhibition market. These factors and other risks and uncertainties are discussed in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2003 and in the subsequent reports filed by the Company with the Securities and Exchange Commission.

SOURCE IMAX Corporation

Media:
IMAX Corporation, New York
Romi Schutzer
(212) 821-0144
rschutzer@imax.com

Analysts: IMAX Corporation, New York
Cheryl Cramer
(212) 821-0121
ccramer@imax.com

Business Media:
Sloane & Company, New York
Whit Clay
(212) 446-1864
wclay@sloanepr.com;

Entertainment Media:
Newman & Company, Los Angeles
Al Newman, (818) 784-2130,
asn@newman-co.com

Government of Punjab Province, Lahore, Pakistan
Taimur Azmat Osman, Secretary of Information and Culture and Youth Affairs
+92(42)9210081
secyinf@wol.net.pk
(IMX. IMAX)

Copyright (C) 2004 PR Newswire. All rights reserved.

http://www.investors.com/breakingnews.asp?journalid=23661917

"Reilly concludes by looking at another new territory. On Oct. 25, Imax and the government of the Punjab province announced the first-ever IMAX theatre in Pakistan. Located in Lahore and scheduled for a September 2005 opening, the 700-seat, 12,000-watt digital-surround-sound house will be part of a shopping and entertainment park with retail, food court, bowling alleys and other attractions. Not forgetting the company motto of "Think Big," the 2D and 3D IMAX screen will be one of the biggest, towering 71 by 90 feet (21.6 x 27.5m)."

Portion Taken From IMAX EXPRESS (http://www.filmjournal.com/filmjournal/features/article_display.jsp?vnu_content_id=1000731373)

i dont think its even started yet, it is having some problems.

no, we need a sepearte topic for FDI

The IMAX Theatre Complex at St Mary’s Park, MM Alam Road will include a three-level underground parking facility for 800 cars, Taimur Azmat, culture secretary told Daily Times on Thursday.

“The four-storey IMAX Complex will cost Rs 800 million. Half of the total cost of this facility is being consumed in the construction of the parking lot,” he said. “Lack of parking spaces on MM Alam Road is causing traffic jams. The parking facility will help clear up these jams,” he said.

“IMAX cinema is being built to offer family entertainment. There is no decent place in Lahore where one can take his family for entertainment, “ said Azmat.

This complex is the city’s first IMAX theatre. It was originally proposed as part of an Infotainment Park that would be built on 92 kanals in front of the Gaddafi Stadium. The project would have housed two theatres, restaurants, shopping malls, a skating arena and science centre, and would have cost Rs 400 million.

The site was changed from Gaddafi Stadium to St Mary’s Ground (also known as Doongi Ground), MM Alam Road last year. The 40-kanal land will house the cinema, a bowling alley, shopping centre and a food court. It’s revised cost estimate had come to around Rs 450 million.

“It was a rough estimate. We did not work it out in black and white. We estimated the cost in-house. After a consultancy study, market study, consumer study, financial feasibility report, it was clear that we had underestimated. Chances are that prices will escalate during construction,” said Azmat.

“Because we are building parking inside the building, the land around will be left free to be decorated and landscaped, said the culture secretary.

Public Awareness Services Society (PASS), an NGO whose membership includes bureaucrats Salman Khalid, Nisar Cheema and Hadi Iqbal, has challenged the construction of the complex in court.

PASS says that the project is unjustifiable in the light of the diminishing numbers of cinemagoers in the city. It says that the complex is being built in a playground that caters to the sports needs of locals and students from adjacent schools. The NGO has challenged the legality of the Punjab Entertainment Company, which was established by the government for the IMAX Complex.

The country crossed another milestone as after a decade its foreign direct investment (FDI) during the last fiscal year (2004-05) recorded a significant growth of 60.5 percent because of improvement in the macro economic indicators, political stability and increase in privatisation proceeds.

According to the figures received from the Board of Investment, the foreign direct investment (FDI) in the country touched $1.524 billion mark, rising by 60.5 percent from $949.4 million of the preceding year.

Last highest foreign direct investment in the country was when it crossed $1 billion mark in 1995-96, when it touched $1.101 billion.

The inflow from the overseas investors in June was highest as compared to last 11 months of the fiscal year, valuing at $494 million. The amount included $260 million received from Emirates Telecommunication Co, known commonly as Etisalat.

Analysts were of the view that the government would receive $2.4 billion within next two months' period from the Emirates Telecommunication, which would raise the level of foreign direct investment in the country to a new high record level in the running fiscal year.

They were of the opinion that more foreign investment would arrive in the telecom sector in the running fiscal year as once again the telecom sector is gathering interest because of the boon in the cellular phone.

"Mobilink, to improve its services against its competitors Warid and Telenor, would invest more, increasing the FDI in the current year", they said.

According to break-up, major contribution found its way from financial business group. The figures showed that 21 percent of the total flow surfaced from the financial sector, translating into $214 million.

The investment bloomed in this group because of inflow from banks, which according to the financial sector expert hints that these institutions expanded their businesses in the country following investment from their parent company. The amount includes privatisation proceeds from the Aga Khan Foundation, receiving payment to acquire Habib Bank Ltd. Significant investment was received from Faysal Bank Ltd, Prime Commercial Bank, Hong Kong Shanghai Banking Corporation, Pak-Libya Holding, Doha Bank Ltd, Standard Chartered, Credit Agricole, Bank Alfalah Ltd, and United Bank Ltd.

Experts were of the view that object of the investment was to expand their services and branch expansion, while investment from NDLC-IFIC Bank worth over $10 million was because of majority stakes bought by Taemsak Inc, a Singapore based company.

The investment communication sector was around $171 million, oil and gas sector $189.6 million and power group to the tune of $67.4 million for the eleven months ended May 31, 2005.

Another significant feature of the foreign investment numbers for the eleven months of 2004-05 was the inflow in the portfolio group, means investment in equity market.

The portfolio investment surged to $141 million where majority of the funds parked in from the USA, United Arab Emirates, Hong Kong and Netherlands fund managers. During the same period a year ago, the stock market had recorded an outflow of $35.4 million. The market despite crisis in March owing to futures contract settlement, portfolio investment registered growth, which dumped all the rumours that the equity market had witnessed outflow of foreign investment.

A leading trader said that investment from the USA, United Emirates and Hong Kong would be in PTCL, OGDC, PPL, and some of the banking scrips.

The countries leading the foreign investment table are USA, placing $255 million, United Kingdom $164 million, Switzerland $136 million, United Arab Emirates $77 million, Japan $41.4 million and Netherlands $34.6 million.

We need to keep it as simple as possible!

Anything related to economy should be moved into one topic be it FDI or anything!

Pakistan's national economy has bright prospects: Musharraf
By Aziz Malik - Pakistan Times Federal Bureau Chief

ISLAMABAD: President Pervez Musharraf has said there is a tremendous scope for investment in the country in view of the many infrastructure development projects and robust growth by the national economy.

He was talking to a ten-member delegation of national and international industrialists representing the Steel Sector, which called on him in Rawalpindi Monday.

The President said by the grace of Almighty Allah future prospects for the national economy are very bright.

He said approximately seven hundred multi-national business concerns operating in Pakistan, nearly all, are posting profits in double figures.

Rapid Growth

General Pervez Musharraf said due to rapid growth, the gap between supply and demand has widened, which provided great opportunities for foreign entrepreneurs and investors in all sectors.

He said as a result of farsighted economic policies, both domestic and foreign investors are expanding their capacities and modernizing their business.

The government is making concerted efforts for the country to realize its potential to become a regional trading and economic hub with the commissioning of Gwadar deep seaport and allied infrastructure in the near future.

The President spoke at length of the ongoing and future development projects in the country. Pakistan’s contribution to the reconstruction efforts in Afghanistan and the boom in the housing sector, all of which had resulted in a growing demand for steel and cement.

He praised the efforts of the Ministry of Industries, Production and Special Initiatives and the Engineering Development Board for organizing the first-ever investment-oriented international workshop on the steel sector in the country.

The industrialists are currently visiting Pakistan for participation in an investment-oriented international workshop on the steel sector.

The delegates thanked the President for the opportunity to meet and exchange views with him. They praised the business-friendly policies of the government and termed their deliberations at the workshop as very beneficial.

The delegates were of the view that supportive policies of the government would give further impetus to economic growth and development in the country.

To review Sindh situation Today

And a report from Karachi says that President Pervez Musharraf will review measures being taken by the provincial government for the forthcoming local bodies (LB) elections and the overall law and order situation at a high-level meeting scheduled for Wednesday.

President Musharraf, who arrived in the metropolis on Monday evening on a three-day tour, would also review the overall law and order situation in Sindh in the wake of the incidents of targeted killings of some Ulema. The performance of the law-enforcement agencies on the confluence of Sindh-Balochistan-Punjab border would also be reviewed at the meeting in the Governor House.

LB Polls

On the local bodies polls, the sources said, the President would be briefed on some tribal feuds in the province which might create law and order situation during the elections. The situation in the urban areas of the province would also come under discussion.

The sources said the issue of target killings in the metropolis would also come under discussion and the meeting would analyse the situation in which such incidents keep occurring despite the fact the intelligence and law-enforcement agencies have managed to dismantle major networks of terrorists in the country.

Rising incidents of Crimes

The sources said President Musharraf had also taken strong note of rising incidents of street crimes and snatching of mobile phones in the city and in this regard the provincial authorities would present a comprehensive report on the measures being taken by police and Rangers to curb this menace.

Although the president has many engagements during his stay in Karachi, his main purpose is to keep himself updated on the security situation and related measures being taken by the provincial government to ensure free, fair and impartial LB polls in the province, the sources said.

Meanwhile, Musharraf would also review the flood situation in the province and the position of the river Indus at a separate meeting. He is schedule to meet the leaders of the Pakistan Muslim League, Sindh chapter, and a delegation of the Muttahida Qaumi Movement [MQM] separately.●

Source: Pakistan Times (http://www.pakistantimes.net/2005/07/12/top2.htm)

Export target of $ 14.41 billion reached: Humayun

ISLAMABAD, July 22 (Online): Federal Minister for Trade Humayun Akhtar announcing the Trade Policy 2005 on Thursday said that export target of $ 14.41 billion has been reached which is an increase of 17% over last years' export level.
Announcing the trade policy on TV and Radio Humayun Akhtar said, "we had set ourselves a target of $ 13.7 billion. It now gives me great pleasure to inform you that by the Grace of Almighty Allah, not only did we achieve this target but we surpassed it substantially. Our exports at the close of the year amounted to $ 14.41 billion, an increase of 17% over last years' export level."

While last year, export growth was largely on account of higher unit values, this year's exports are driven mainly by substantial rise in volume. This is the fourth consecutive year of year-on-year growth and achievement of target levels. Compared to 1999-2000, exports have increased by 68.2%. In the context of the socio political and economic challenges faced by Pakistan and its private sector, this is more than satisfactory. The people of Pakistan and our business community deserve congratulations for this achievement, which would not have been possible without their sustained effort and dedication, he said .

"Textiles and Garment's export were US $ 8.6 billion during 2004-2005, which is 59.5% of the total exports. This showed an increase of US $529.2 million over the corresponding period of last year. Of the total increase in exports of US $ 2.097 billion, Textile and Garments contributed 25.2%. It is encouraging to note that five of the sub sectors namely cotton cloth, knitwear, bed wear, readymade garments and cotton yarn achieved exports in excess of US$ one billion each during 2004-2005", Humayun said.

During 2004/2005, exports of non-textile sector was US$ 5.842 billion, for the first time crossing the US$ 5 billion threshold, showing an increase of 37% against corresponding period of 2003/2004. It's share in exports also increased from 34.7% in 2003/2004 to 40.5% in 2004/2005. What is encouraging is the fact that 75% of the export increases of US$ 2.1 billion registered during 2004/2005 against 2003/2004 was due to enhanced exports of non-textile products. Our policy initiatives to diversify exports is beginning to yield positive results. We will continue to pursue export diversification strategies, he said .

The export performance during January-June 2005 proved apprehensions on the part of several analysts about the fate of Pakistan's textile industry due to removal of quota restrictions on textiles of and their level of preparedness to cope with a post quota regime both these concerns to be misplaced. Pakistan's textile exports which had increased by 0.4% in July-December 2004 bounced to 12% growth in the first 6 months of 2005. However the exports of knitwear and art silk and synthetic textile declined during this period by 4.2% and 22% respectively.

With the textile package announced in the Budget and the R & D Support announced by the Government, I am confident that this sub-sector will also perform well in 2005-06. The rate of increment in other areas were much higher in this period than the 6 months of July-December 2004. This was all possible due to the exporters efforts and preparedness to cope with post quota period and to fully benefit from the export incentives and facilitations announced by the government in its trade policies, he said.

Exports during 2004/2005 increased by US $ 2.1 billion as compared to the same period of 2003/2004. This increase is historic and is larger than ever achieved in Pakistan's past history. The major increment is attributable to increase in export of non-traditional items, which increased by US$ 690 million accounting for 33% of the increase. This increment is mainly because of our export diversification initiatives. I say diversification because the increase is due to rise in non traditional products made up mainly of 1400 items Similarly, the efforts to increase export of engineering goods are also showing positive results. Exports of engineering goods during this period increased by US$ 101 million, accounting for a 5% increase. Similar was the quantum of increment in each of leather goods, chemicals and petroleum product sectors. The export of rice also increased by US$ 299 million accounting for a 14% increase, he said.

Humayun Akhtar said since trade diplomacy is one of the major functions of the Ministry of Commerce, we are intensively interacting with other governments to obtain additional market access for Pakistani exports. In this context we have initiated discussions and negotiations with a number of countries for concluding Preferential Trade Agreements (PTA) or Free Trade Agreements (FTAs).

Our first FTA has become operational with Sri Lanka this year, and we have concluded a PTA with Iran and also signed an Early Harvest agreement with China as a prelude to an FTA. Apart from that, bilateral negotiations are underway with, Malaysia, Singapore, Indonesia, Turkey, Kazakhstan, Tajkistan, Morocco and Mauritius. As far as regional bodies are concerned, we are working out preferential access arrangements in SAARC, ECO, OIC, D-8, Mercosur and GCC, he said.

"As a result of intense diplomatic efforts by the Ministry of Commerce, Pakistan would now be included in the EU's new G.S.P. Scheme as of 1st January 2006. This new scheme would again allow all of Pakistan's exports including textiles and clothing to enter the EU markets at concessionary rates of tariff", Humayun Akhtar said.

Humayun Akhtar said the unprecedented increase in trade between Pakistan and Afghanistan has shown that there are a number of bottlenecks in the handling and clearing of cargo at border terminals at Chaman and Torkham. It is expected that in the near future trade with Iran through land route would also increase. In view of these recent developments, it has become imperative that the facilities at our border terminals be upgraded to facilitate international trade.

Export target of US$ 17.0 billion is proposed to be fixed for 2005-06. This target shows an increase of about 18% over the export of US$ 14.4 billion achieved during 2004-5.

To provide support to the Textile Garments Sector, and to implement the initiative of skill development and training of workers, it has been decided to create a "Textile Garments Skill Development Board". The aim of the Board would be to accelerate the implementation and harmonise the certification system pertaining to Skill Development under one Umbrella Organisation, he said.

With respect to Pak-US trade Humayun said USA is the largest and most important export destination for Pakistan after the EU, with textiles as the main export. Pakistan's exports to USA increased from US$ 2.313 billion in 2002 to US$ 2.874 billion in 2004 with the share of textiles at 88% of total exports to that country. However, imports from Pakistan constitute only 0.2% of USA's global exports.

In order to encourage promotion of Pakistani quality products in foreign markets, it has been decided that Pakistani exporters who register their products with Pakistani Trade marks in foreign countries for export purposes will be provided subsidy equal to 50% of official fees of such registrations. Our exports over the last few years have shown very robust growth. This has been a result of our policy of deregulation, liberalization and privatization of the economy, and significant structural reforms in the last six years. We intend to continue with this policy, Humayun Akhtar said.

Source: Pak Tribune (http://paktribune.com/news/index.php?id=113285)

Pakistan : Textile goods exports up 6.58% to $ 8.039bn
July 28, 2005


Textile products export for the country registered rise of 6.58 percent at $8.039 billion in the last fiscal against the exports of $8.568 billion in the previous fiscal year.

The export of cotton yarn down 3.42 percent, export of cotton cloth up 16.51 percent, knitwear exports up by 11.47 percent, bed wear exports up by 1.77 percent, towels exports up by 24.40 percent, tents and canvas products exports down by 12.40 percent, ready-made garments exports up by 11.60 percent, exports of art, silk and synthetics textiles down by 36.12 percent and textile made-ups registered an rise of 14.13 percent in the last fiscal 2004-05.

Raw cotton exports in the last fiscal stood at $129.015 million against $ 47.671 million indicating an rise of 133.54 percent over the previous fiscal year.

The export of tanned leather registered a increase of 17.73 percent reaching $296.319 million, up from over $251.693 million in the previous fiscal year.

However, leather exports recorded 18.53 percent in the last fiscal with exports of 491.102 million compared with the exports of $ 414.343 million in the previous fiscal year.

Source: Fibre Fashion (http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=3205)

Aziz May Join World Bank: Hamid Chattha Emerging Consensus Leader

By M A Siddiqui and Shaheen Sehbai

WASHINGTON/KARACHI, July 29: The World Bank corridors in Washington are humming with whispered expectations and corporate speculations that Pakistan’s Prime Minister, Citibanker Shaukat Aziz, a long time buddy of WB President Paul Wolfowitz, is soon going to join the world body as Managing Director.

Wolfowitz is understood to have offered Aziz the top job because the World Bank needs to fill in one of the two vacancies of MDs, the one from Asia. The other MD comes from Africa. Wolfowitz believes Aziz would be the right candidate as big Asian players including China and India will not have any serious objection to Aziz, who has lived in the US for 30 years before joining the Musharraf team as Finance Minister in 1999 and later getting a promotion as Prime Minister.

But since Musharraf has not allowed any real powers to the Parliament or the PM, Aziz wants to get out of the Pakistan mess with his honor and image intact and the WB job may be the best chance he could get.

According to a well informed Islamabad analyst, Nusrat Javeed of “The News”, the sudden cancellation of the Aziz visit to the White House and the way the Pakistan Foreign Office dismissed the cancellation as of no importance, hurt Aziz deeply as he was expecting some glory in the world limelight as a guest of President Bush.

Nusrat wrote recently: “The spokesperson of our Foreign Office has not helped either by spinning the story that the US visit of Shaukat Aziz was never “finalized.” It is a laughable excuse, only helping the doomsayers, who keep insisting that prime ministers working under the praetorian wings always ask for trouble with their desire of getting ‘direct’ with American leaders and decision makers.”

"Mir Zafarullah Khan Jamali began rushing to his fall by publicly asking for the pat on our back during his call on President Bush. The flight of Shaukat Aziz in the same context could not be allowed as well," Nusrat wrote.

This news circulating in the World Bank coincides with behind the scene maneuvers in Islamabad to break the political logjam to induct the mainstream liberal political parties in the system and isolate the radical religious right which is now becoming a threat not only to the country but to the Army itself.

General Musharraf met Shaukat Aziz, one on one, for the second time within a week on Wednesday, July 27, for what was publicly presented as a routine meeting with one briefing the other about his foreign trips and a general discussion on the country’s political and security situation. But analysts say these meetings may be more than what meets the eye. The two leaders may be discussing their future association.

These backdoor moves involve a longtime Benazir Bhutto ally and politically trusted leader Hamid Nasir Chattha who has been actively meeting the various relevant players in and outside Pakistan. Chattha is currently in the PML-Q and Chairman of the Kashmir Committee, enjoying a Minister's status. Interestingly in all Kashmir Committee meetings, PPP parliamentarians including Makhdoom Amin Faheem, are regular participants and they go along well with Chattha.

With this background, Chattha is being tipped as the head of a National Government in which both Benazir Bhutto and Nawaz Sharif, or their nominees and parties, are substantial stakeholders.

In a moment when he revealed more than he should have, PPP’s top ranking leader Makhdoom Amin Faheem was heard saying that such a deal under Chattha was possible and people were working on it.

Even in his recent analysis, Nusrat Javeed posed the all-important question: “Where is Hamid Nasir Chattha these days and does he really have anything to do with the grand government of national reconciliation, many people in Islamabad have been waiting for since months?”

Under the proposed arrangement the basic concessions to Benazir and Nawaz Sharif would be the withdrawal of the Swiss cases and end of exile, or a time table to end the exile, much shorter than the stipulated 10 years.

But to many political analysts and observers, all these possibilities and proposals appear to be part of the pattern of psy-op games which the Pakistan Army has now become quite good at playing.

These games grow in intensity whenever there is some pressure on the Generals, either because of their double games on terrorism, or their secret alliance with the Mullas who always do something to bail out the Army, though apparently it may appear that they are in opposition, or if the pressure from the West to induct mainstream political parties in power sharing increases.

As part of this pattern, political analysts recall, the highly disruptive talk of “national reconciliation” was coined and feelers were thrown in that Army was talking to the PPP and Benazir Bhutto through Asif Ali Zardari. The PPP got caught in that trap and started believing that the Generals were sincere in a deal.

Thus the PPP took a very soft line when Asif Zardari returned to Lahore amid unprecedented enthusiasm and excitement not seen for years in the PPP cadre. But the return of Zardari, instead of building up on that momentum, defused the situation through some soft statements of Mr Zardari himself as well as admission by the PPP that secret negotiations were going on. Nothing however came out as the Army was playing its games and the moment pressure was off, all talk of concessions or a deal was off the table.

Likewise these psy-ops games have also played havoc with the Sharif family when through calculated moves the impression was created that Shahbaz Sharif was moving away from his elder brother and was being preferred as a possible option under a re-united Muslim league. Nawaz Sharif, however, understood the games much better and stood his ground.

Then the passport issue of Nawaz Sharif was used to create further confusion in the Opposition ranks when suddenly PPP was forced to seek clarifications from the Sharifs on what was going on. That issue also created some confusion but failed to make a serious dent in Opposition unity.

The latest move of the Mulla-military alliance is the Hasba Act which was thrown into the political arena by the MMA at a critical time when all main Opposition parties, including the PPP, PML-N and MMA were about to reach a consensus and announce a joint strategy against the Army rule.

The Hasba Act derailed the Opposition talks and both PPP and PML-N started criticizing the MMA for something which took the focus off their joint target. It helped the Army in a way no friend could have helped.

In such a situation and with the Local Bodies polls round the corner, the talk of a National Government is, to many analysts, one more ploy of the Army to divert attention and confuse the players.

I don't belive this news is true at all ..... Prime Minister Aziz left USA to live in Pakistan and help out Pakistan . I don't think so he would be joining the world bank ... May Pakistan Live for Ever Ameen Pakistan zindabad

German Companies Keen To Invest In Pakistan

He noted increasing interests of German companies in Pakistan, which posted 8.4 percent economic growth in previous fiscal year 2004-05.

Brummer said Metro Group - German’s supermarket chain and one of the largest trading retail businesses – was planning big investment in Pakistan and would announce its programme shortly. The Group plans to set up four outlets in first phase in major cities of Lahore and Karachi.

“If this materializes, it would be a big breakthrough as Metro Cash & Carry plans to start and develop the whole network – from farm to buyer – and the whole food and fish production will be affected in a positive way,” he added.

The other big investments in the pipeline are Siemens and Rohde and Schwarz in the telecommunication sector while Chrysler

German automobile giants Chrysler, Renault and Volkswagen are also keen to open their assembly plants in Pakistan.

source (http://www2.dw-world.de/southasia/germany-pakistan/1.149180.1.html)

Prime Minister Shaukat Aziz has rejected reports as "malicious, inaccurate and misleading" that he was joining World Bank or United Nations in any senior position. He said there was absolutely no truth in the reports, and added: "I would simply classify such report as total rubbish".

"Reports about the offer I received for the World Bank or the UN," Prime Minister Shaukat Aziz told Khaleej Times.

"We in Pakistan are committed to building a stronger, vibrant and prosperous Pakistan. Under the leadership of President General Pervez Musharraf we are all engaged in meeting a better future for our current and future generations," the Prime Minister said.

aziz said he was offered the job by WB but not interested.

Top Reasons to Invest in Pakistan

http://www.presidentofpakistan.gov.pk/Images/TR2IHead.jpg

Some of the top reasons why Pakistan is a good destination for your investment, as highlighted by the President in his speech at Expo 2005: “ 1. security of investment even during nationalization of 1970s no foreign or MNC was nationalized. 2. returns of capital upto 50% 3.stability and predictability of economy considering improved economic indicators. 4. availability of liquidity 5. expanding infrastructure 6. Cheap labour 7. Areas of investment are agriculture, textile, telecom and IT, energy sector, service industry, construction and building.

New incentives and further liberalization measures include:

Capital Markets
The capital markets are being developed along modern lines with the assistance of Asian Development Bank. These reforms have resulted in the development of infrastructure in the stock exchanges of the country. The establishment of the Securities and Exchange Commission has improved the regulatory environment for stock exchanges, corporate bond market and the leasing sector. However, structural reforms in tax and tariffs (Central Board of Revenue-CBR), financial sector (State Bank of Pakistan-SBP), deregulation and privatization, investment policy reforms, improved governance, socio-political reforms and poverty reduction programs hold their significance in attracting investment in Pakistan.
Liberal Investment Policy
Pakistan is home to home over 600 foreign companies, which means Pakistan facilitates liberal investment policy.














Reduction in Fiscal Deficit
There has been stabilization in policies with regards to reduced fiscal deficit (from 6.6% to 4.5% of GDP), current account deficit eliminated and market-based exchange rate.
Liberal Foreign Exchange
Pakistan has a liberal foreign exchange regime with few restrictions on holding foreign exchange and bringing it in or out of the country. There are no limits on the inflow or outflow of funds for remittances of profits, debt service, capital, capital gains, returns on intellectual property, or payments for imported inputs.
Investment Friendly Environment
Strategic location as a regional hub includes principal gateway to the Central Asia Republics, strong and long-standing links with the Middle East and South Asian countries. Pakistan offers comprehensive duty-free facilities for investors.
Foreign Private Loans
The facility for contracting foreign private loans is available to all those foreign investors who make investment in the approved sectors.
Domestic Market
Foreign controlled manufacturing concerns are allowed to borrow on the domestic market according to their requirements.
Human Resource
Strong human resources including English speaking work force, cost-effective managers and technical workers.
Infrastructural Development
Well-established infrastructure and legal systems are deep rooted foundation to lure investment. It includes comprehensive road, rail, sea links; good quality telecommunications and IT services; modern company laws and long-standing corporate culture.
Transparency
There is a greater degree of transparency in procurement practices since the current government took office in October 1999. International tenders are properly advertised and there is no sole sourcing, as contract specifications are not made according to any company's requirements, as was done in the past. Sanctity of contracts, however, remains a major concern for companies.
Loans and Paid up Capital
Foreign controlled semi-manufacturing and non-manufacturing concerns can access loans equal to @ 75% & 50%, respectively, of their paid up capital including reserves.
No restriction on Payment of Royalty
There is no restriction on payment of royalty / technical fee etc., in the manufacturing sector, allowed non in non-manufacturing sectors. For non-manufacturing sector, the initial lump sum fee should not exceed US $ 100,000. The maximum rate will be 5% of net sales. Initial period for which such fees may be allowed should not exceed 5 year. Further information can be supplied by BOI.
Foreign Equity
Reducing minimum foreign equity from US$ 0.5 million to US$ 0.3 million.
Import Duties
Zero import duties on capital goods, plant and machinery and equipment not manufactured locally. Central Board of Revenue (CBR) can supply a list of locally manufactured good. In case of doubt the investor is invited to consult the Board of Investment (BOI).
Tariffs on Agriculture Machinery
The import tariff on agriculture machinery (not manufactured locally) for registered corporate agricultural projects will be zero-rated.
Import of Plant and Machinery
The investors who invest in the newly opened sectors can import plant, machinery & equipment (not manufactured locally) at discounted rate of customs duty which is 10% and also avail first year allowance @ of 50% of the cost of plant, machinery & equipment.
Import Duties on Raw Material
Zero import duties on raw materials used in the production of exports.
Expansion of Market
Large and growing domestic market includes 140 million consumers with growing incomes and a growing middle-class moving to sophisticated consumption habits.
National Industrial Zones
A composite scheme of National Industrial Zones engulfing industrial estates, Free Industrial Zones, Free Trade Zones and Export-Oriented Units (EOU) and Estates for small and medium industries within areas of its boundary has been launched to promote exports. In addition, establishment of export oriented units will be allowed to be set up all over the country.
Industrial Projects
Foreign investors are allowed participation in industrial projects, on the basis of 100% foreign equity, without any permission from the Government.
Manufacturing Sector
The manufacturing sector was open to foreign investment. Now, the policy regime has been liberalized by opening up other economic sectors to FDI and by mobilizing domestic financial resources to encourage investment.
Energy Sector
Energy sector involves Hydel, thermal, coal, solar, wind and biogas.
Mining Sector
Mining sector includes coal, granite, marble, semi-precious gems, chromites, dolomite, gypsum, limestone, Sulphur and rock salt.
Engineering Sector
Engineering sector includes light and heavy whereas privatization sector attracts potentional investment in banking and finance, oil and gas and power, real estate, telecom and transport.
Land and Natural Resources
Abundant land and natural resources exists in Pakistan including extensive agricultural land, crop production; wheat, cotton, rice, fruit and vegetables; mineral reserves; coal, crude oil, natural gas, copper, iron ore, gypsum; and fisheries and livestock production.
Tourism
Tourism has been declared an industry and as such holds great promise for prospective investors interested in exploring the true potential of a land as rich and diverse in its culture as it is in its geographical distribution.
From snowcapped mountains in the north, with vast fertile plains of the Punjab, rugged land of the south, deserts and a long seacoast, Pakistan has all the hall marks to become a major tourist attraction.
IT sector
The Government as the main facilitator, enabler, and promoter of the IT sector, has evolved an effective national IT Policy and Action Plan that clearly caters to the needs of nurturing the industry and is responsive to the dynamic forces of change that can effect its future growth. The Private Sector is being brought into the mainstream as the main driver for growth.
Oil and Gas exploration
Oil and gas is another sector in which investor can have offshore and onshore exploration. They can invest in refinement, pipelines and storage facility.
Small and Medium Enterprises
Small and Medium Enterprises (SME) includes value added textiles and leather, engineering, electronics, sports and surgical goods, furniture, gemstones and jewelry and chemicals.
Full Repatriation
Full repatriation of capital gains, dividends and profits.
No Objection Certificate
There is no requirement to obtain a No Objection Certificate (NOC) from the Provincial Governments for the establishment of projects.
Remittances
Remittance of royalty, technology and franchise fee allowed to projects in social, service, infrastructure, agriculture and international chains food franchise.
Regulatory Reforms
Regulatory reforms have led to the establishment of a legal framework for licensing and regulating private housing lenders. At present, five private housing companies are operating in a regulated environment and offering a variety of loan instruments. In order to mobilize funds, private housing companies may issue certificates of investment.

HONG KONG (Dow Jones)--Pakistan has been a hugely successful yet under-researched stock market that deserves more attention from international investors, according to Merrill Lynch & Co. (MER).

The U.S. investment bank believes strong domestic liquidity, attractive share price valuations, institutional reforms, and recycling of so called petroleum-dollars will continue to boost Pakistan shares in the long-term.

Pakistan's stock market was the third-best performer in Asia in 2004, and is among the top gainers again this year, with the Karachi Stock Exchange's 100-share index up around 16% so far.

"The first misconception that needs to be dispelled is that (Pakistan) is an illiquid and, therefore, marginal market," Merrill Lynch said in a report issued Monday.

Daily trading volume has averaged US$700 million so far this year, and that's equal to the combined daily stock market activity over the same period in Thailand, Indonesia, Malaysia and the Philippines, the investment bank said. However, domestic investors have been mainly responsible for the activity in Pakistan, with foreign ownership making up only around 2% of total shares outstanding.

In terms of price, Pakistan is attractive relative to other markets in Asia.

Merrill Lynch estimates the market's price/earnings ratio is around 10.6 times forecast 2006 earnings, which is a 25% discount to Asian shares as a whole. Corporate earnings will likely grow by an average of 10% next year, while the average dividend yield will likely be around 6.3%, the highest in Asia.

Privatization remains a major goal of the government and this could generate additional fund flows from foreign investors, Merrill Lynch said.

The government recently completed its biggest privatization in history, the US$2.6 billion sale of a 26% stake in Pakistan Telecommunication Company Ltd. (PTC.KA), or PTCL. Oil and gas producer Pakistan Petroleum Ltd. (PPL.KA) and oil marketing company Pakistan State Oil Co. (PSO.KA) are among the government's next top priorities for divestment.

Over the next 12 to 18 months, Merrill Lynch expects the government to divest its shares in United Bank Ltd., Habib Bank Ltd., and Oil and Gas Development Company Ltd. through public offerings.

Merrill Lynch also expects a pickup in merger and acquisition activities. "M&A activity in the banking sector is likely to pick up, echoing the trends in financial sectors across much of the region. We also see a number of potential opportunities in the telecom space," the investment bank said.

Investors from the Middle East will likely be among the main sources of foreign investments in Pakistan. "Pakistan is uniquely positioned to benefit from the recycling of inflated petroleum dollars from the Middle East," the investment bank said.

The most recent example is United Arab Emirates-based Emirates Telecommunications Corp.'s (ETISALAT.AD) purchase of a 26% stake in PTCL. Etisalat offered the highest bid for the stake, beating bigger rivals China Mobile Communication Corp. (CHL) and Singapore Telecommunications Ltd. (T48.SG). Etisalat is the sole phone service provider in the UAE and is 60% owned by the government.

Favors Banks, Agriculture, Oil & Gas

Looking at corporate earnings growth prospects over the next three years, Merrill Lynch is bullish on the banking, agriculture, and oil and gas sectors in Pakistan.

Merrill Lynch said consumer finance, which has only recently picked up due to the expanding manufacturing sector, represents an opportunity for the banking sector. National Bank of Pakistan (NBP.KA) is "worth watching" because of its attractive fundamentals and valuation, with the stock trading at a P/E ratio of around 7 times forecast 2006 earnings, the investment bank said.

Fauji Fertilizer Co. (FFC.KA) offers direct exposure to the agriculture sector. Being the market leader with a 49% market share, Fauji has strong pricing power in an industry where demand is outstripping supply, Merrill Lynch said. Pakistan Oilfields Ltd. (POL.KA), meanwhile, should benefit from higher oil prices, with 51% of its revenues realized through the sale of crude oil.

Worries over the availability of badla, or carry-over transaction financing, are among the main risks in investing in Pakistan shares, Merrill Lynch said. Badla is an indigenous form of leveraged share financing through borrowed money from banks and financial institutions. Under new rules, investors may get badla on a "first come, first served" basis. Previously, there were no limitations.

"In the short-term, we expect the phase-out of the carry-over transaction financing to drag market performance," Merrill Lynch said.

"Although we believe the structural reforms introduced over the last five years are irreversible, any physical attack on Aziz could cause instability in the short-term," Merrill Lynch said.

There is no restriction on foreign ownership in any sector in Pakistan. But investors - foreign or local - must inform regulators if they are acquiring a 10% stake in any listed company.

http://sg.biz.yahoo.com/050801/15/3tw1n.html

Merrill Lynch is one of the world’s leading financial management and advisory companies, with offices in 36 countries and total client assets of approximately $1.6 trillion, at the end of 2004.

Merrill Lynch has three core businesses – Global Private Client, Global Markets & Investment Banking Group and Merrill Lynch Investment Managers – offering a range of services for private clients, small businesses, institutions and corporations, and financial intermediaries.

As an investment bank, the company is a leading global underwriter of debt and equity securities and strategic advisor to corporations, governments, institutions and individuals worldwide.

Through Merrill Lynch Investment Managers, the company is one of the world’s largest managers of financial assets, with assets under management of $501 billion at the end of 2004.

We’re growing our business by helping clients grow theirs.
Our client relationships are among our greatest competitive assets. We deepen and enrich these relationships through disciplined growth, innovation, and seamless execution.

Note the author, Shaheen Sehbai, the creator of SAtribune and a stringent anti-Musharraf. I'm all for free speech, but he's disgraceful. Claiming to be secular, but echoing every claim of the islamist against Musharraf just to earn brownie points is low.

Also not this isn't a newspiece, its an opinion.

Comments like:

"But since Musharraf has not allowed any real powers to the Parliament or the PM, Aziz wants to get out of the Pakistan mess with his honor and image intact and the WB job may be the best chance he could get."

Are biased and don't constitute impartial reporting.

ITCN Asia 2005 exhibition opens today

KARACHI (August 09 2005): The 5th ITCN Asia 2005 exhibition will commence at the Karachi Expo Centre, from August 9 (Tuesday). The three-day moot is being organised by Ecommerce Gateway Pakistan in collaboration with the ministry of privatisation and investment and the ministry of Information Technology and telecommunication.

According to the organisers, Federal Minister for Privatisation and Investment, Dr Abdul Hafeez Shaikh will perform the inauguration of ITCN Asia 2005 exhibition.

The event taking place every year is considered the biggest event in the IT sector of the country. Nearly all the IT related companies participate in it and their number is increasing with the passage of time.

Shahid Khan, Marketing Manager IT Division of Samsung, pointed out that the IT industry is advancing at a rapid pace in Pakistan. He said that Samsung realises that the IT industry has the potential to take over several other industrial sectors within no time.

Shahid further pointed out that Samsung is a regular participant in the ITCN exhibitions in Pakistan.

Copyright APP (Associated Press of Pakistan), 2005

Telenor offers more at ITCN Asia 2005 show

RECORDER REPORT

ISLAMABAD (August 09 2005): Telenor Pakistan is participating in the ITCN Asia 2005 conference and exhibition at the Expo Center Karachi from August 09 to 11, 2005. It will provide an opportunity to the visitors to learn more about Telenor's competitive products and try out value added services offered by one of the leading mobile operators.

Guests at exhibition will enjoy special offers from Telenor such as Rs 50 free load with purchase of every prepaid SIM and every hour free handsets for lucky draw winners. As part of one million celebrations, customers will also be able to participate in the ongoing 'Thanks a Million' promotion, which enables all prepaid customers to participate in the lucky draw of Rs one million on recharge of Rs 500.

This campaign includes 50 per cent reduced rates for calls from Telenor to Telenor on both post and pre-paid packages. Customers now can make nation-wide on-net calls for as low as Rs 1.24 per minute post-paid and Rs 1.72 per minute per-paid. Customers can call friends and family in USA, Canada, UK, Germany and France for as low as Rs seven per minute.

Telenor Pakistan is 100 per cent owned by Telenor ASA Norway and is the new mobile operator in Pakistan, which has international mobile operations in more than 12 countries.

Copyright Business Recorder, 2005

Arwen Tech to participate in ITCN event

KARACHI (August 09 2005): Arwen Tech - the global enterprises solutions company is participating in the international mega information technology (IT) event - ITCN Asia 2005 as Platinum Sponsor (in Hall No 2) to support international standard's IT event and to promote IT culture for the benefits of IT industry in Pakistan, a press release said here on Monday.

Arwen Tech offers integrated end-to-end technology based solutions and services to increase the efficiency and productivity of businesses world-wide, the release added. The company core divisions' deals in consultancy, technology and outsourcing are powered by internationally acclaimed business partners, renowned for their reliability and commitment to quality.

Copyright Business Recorder, 2005

Viper attracts visitors at ITCN

KARACHI (August 10 2005): Viper has attracted hundreds of corporate visitors and professionals during the first day of the ITCN Asia -2005, started here on Tuesday. The exhibition will continue till August 11, 2005 at the Karachi Expo Centre, said a statement here on Tuesday.

The Viper's association with world renowned business consortium and market leaders, including Intel, Microsoft, Seagate, CISCO, Samsung, View Sonic, Philips, HP and IBM, had authentic product information & catalogues for IT professionals from media, textile, hosiery, garments, leather goods, service, medical, software houses, chemical, auto-mobile, engineering, finance, brokerage houses and Nadra.

While briefing to the visitors, Viper CEO, Khushnood Aftab, said, "being a dynamic company Viper has pride that it always comes up with strong professional commitment."

"Besides, it is trying to find out new trends, latest technologies, corporate joint ventures, innovative promotional activities and infrastructure development-base strategies."

"This is the fifth consecutive time that Viper is participating in the above mega event for the promotion and support of IT Industry in Pakistan," he added.

Khushnood appreciated the organisers and sought government's help in providing such an international platform for local IT companies. He said that there was a great vacuum of the IT systems in Pakistan, which is yet to be filled.

Initially, he said, computer was considered as a luxury but today it has become a necessity, without this nothing could be possible.

Copyright Business Recorder, 2005

Inbox unveils new products at ITCN

KARACHI (August 10 2005): Inbox Business Technologies, the leading technological solutions company of Pakistan, unveiled its new line of upcoming computer and home entertainment technologies on Tuesday at ITCN Asia. The foremost of these technologies is a Media Centre PC that will unify all home entertainment and communication devices into one.

The device gets directly connected to either the home user's monitor or TV(s) and is controlled through a custom made remote control. At the heart of this technology lies Windows Media Centre Edition and Inbox's own customised computing solution.

Copyright Business Recorder, 2005

Pakistan to attract US$3 billion FDI this year: PM Aziz

TOKYO (updated on: August 10, 2005, 19:20 PST): Prime Minister Shaukat Aziz has expressed the confidence that Pakistan would attract three billions dollars worth of foreign direct investment during the current financial year.

In his breakfast meeting with media-persons in Tokyo on Wednesday morning, he said last year Pakistan received 1.5 billion dollars of FDI, which is largest in the history of the country.

Prime Minister who referred to his meetings with the top leaders of Japanese business community and said most of them have committed to make investment in Pakistan in different sectors.

He said Honda Motors has announced to set up a plant in Pakistan for exclusive manufacturing of CD-70 brand of its motor-cycles for global marketing.

Prime Minister hoped that the decision of Japan to resume official development assistance would encourage Japanese companies to invest more in Pakistan.

He pointed out that because of economic growth, there is great demand for infrastructure development and Pakistan needs to reform its railway and have more power units to meet its growing energy needs. Shaukat Aziz announced that following successful floatation of the Islamic bond Skuk, which was heavily over-subscribed, Pakistan would go for issuance of Euro Bond by the beginning of next year. He said our goal is to come to the international market once a year to maintain linkages with investors.

Prime Minister also briefed about Pakistan's agenda of reforms in political and economic fields. He said Pakistan is a functioning democracy with active parliament and vibrant opposition and media.

He referred to the introduction of grass-roots democracy where women and minorities have adequate representation.

Prime Minister declared that Pakistan's nuclear programme is defensive in nature and caters to its strategic needs. He said Pakistan is in favour of peaceful use of nuclear energy but firmly against anything that smacks of proliferation.

Replying to a question he said Pakistan supports nuclear free Korean peninsula. He said every country has the right to use nuclear energy for peaceful purpose under IAEA guidelines but no one should proliferate.

Responding to questions the Prime Minister said Pakistan wants peace with India but the two countries must try to find a peaceful solution to various issues especially About UN reforms, Mr. Shaukat Aziz said Pakistan wants the reforms to be broad-based, democratic and equitable. He said our policy is not country specific.

Copyright PPI (Pakistan Press International), 2005

Japanese firms to enhance investment in Pakistan

TOKYO (August 10 2005): A number of Japanese companies on Tuesday announced expansion and enhancement in their business activities and investment in Pakistan, including construction of gas pipeline. The commitments came during meetings of chief executive officers (CEOs) of many companies, who called on Prime Minister Shaukat Aziz to discuss numerous incentives offered by the country and their expertise in specialised fields.

Those who called on the prime minister included ITOCHU Corporation chairman, Japan Gasoline Corporation JGC Corporation chairman, Japan External Trade Organisation (Jetro) chairman and Honda Motors president.

During meeting with the ITOCHU Corporation chairman, a trading company with special expertise in textile, the prime minister said his current visit to Japan was part of the "Look East" policy of Pakistan.

He said Japan was one of the major trading partners of Pakistan and sought its co-operation in home textiles and development of human resource.

The prime minister said there were vast opportunities for investment in oil and gas and small and medium enterprises.

The chairman of the corporation said his company is keen to make investment in Pakistan in textile and auto industry. He praised Pakistan's investment climate and said his company would like to benefit from it.

The Japan Gasoline Corporation chairman showed keen interest in making investment in gas pipelines. Shaukat appreciated the interest of the company and said Pakistan is looking at various options for gas import.

Talking to the Jetro chairman, the prime minister said the company is acting as a bridge between Pakistan and Japan. He said Pakistan needs the expertise of the group in developing its textile industry. Pakistan would also need co-operation of the company in implementing its programme of "one village, one product", he added.

During his meeting with the president of Honda Motors, Shaukat highlighted on Pakistan's economic policies, reforms and high growth rate.

The Honda Motors president said in view of increase in demand for motorcycles, his company would expand its business in the country.

He indicated establishment of another motorcycle plant in Pakistan.

Water and Power Minister Liaquat Ali Jatoi, Industries and Production Minister Jehangir Khan Tareen, Minister of State for Economic Affairs Hina Rabbani Khar, Board of Investment Chairman Waseem Haqqie and some of the businessmen accompanying the prime minister attended the meetings.

Meanwhile, in response to questions after delivering a talk here at the Japan Institute of International Affairs on "The situation in and around South Asia and the future prospects for the South Asian Region," Shaukat said that status quo on Kashmir was unacceptable and Pakistan and India need to address the issue 'squarely' without pushing it to the back burner.

"Status quo is not the answer and we have to think out of the box," he said.

He said the Kashmiris must get an opportunity to decide their future and any solution must reflect the aspirations of the people of occupied Kashmir. He said the three stakeholders have to sit on the table to arrive at a solution.

"I remain optimistic and hope that the atmospherics will create an ambience leading towards solution of this complex issue."

He said Pakistan desired peaceful environment in the region in its own interest. "Kashmir is the longstanding dispute at the heart of tension in South Asia," he said.

The prime minister, who is on a four-day visit to Japan, said Pakistan was engaged with India for the last two years in a peace process and have agreed upon a number of confidence-building measures (CBMs).

"Atmosphere in South Asia has improved, but we must make progress to resolve the core issue," he stressed.

"We believe that with sincerity, courage and flexibility, it should be possible to find out a solution acceptable to Pakistan, India and most importantly to the people of occupied Kashmir."

The prime minister said resolution of disputes and differences, especially Kashmir, will allow South Asia to fully realise its enormous potential for development and co-operation.

"Both the countries need to look ahead and make sincere efforts to achieve a solution to improve the atmospherics," he added.

Referring to trade between both the countries, he said it was limited as Pakistan believed that progress on major issues has to be in tandem with the progress on the Kashmir dispute and if this issue was resolved, movement could also be made on other matters.

Referring to the new dangers of terrorism and extremism, threat of proliferation and the challenges of development that exist besides the conflict situations, he said good governance and progress have become necessary for preservation of independence and sovereignty of a country.

He said the history of international terrorism in Pakistan's neighbourhood has a history that goes back to the days of Soviet invasion in 1979. He said the than world, in particular the West, got united to resist this ingress and to assist the Afghan Jihad.

"Afghanistan became the last front of the Cold War. When after 10 long years the Soviets withdrew, the world also turned away from Afghanistan and became preoccupied with the surge of freedom and free-market in Eastern Europe and the former Soviet Union, a phenomenon partly triggered by Afghanistan," he added.

He said Pakistan that played a key role in resisting the Soviets in the 80s, has become a key partner in the international fight against terrorism.

"We reject terrorism. It is a danger that aims at destabilising modern societies and its anti-progress. We are fighting terrorism and extremism primarily in our own interest," he added.

He said apart from local action against terrorists and extremists, there was a need to address the root causes which lie in the longstanding disputes and problems such as Palestine the Middle East and Kashmir.

"Extremism and terrorism breed in an environment of humiliation and deprivation created by denial of freedom and justice," he added.

He referred to the concept of Enlightened Moderation by President Musharraf and said it addresses the issue aptly.

To a question about the image of Islam, the prime minister categorically rejected the notion that the religion had anything to do with terrorism.

"Islam is a religion of tolerance, interfaith harmony and gives complete freedom to those who practice their beliefs."

He said Islam offered 'Ijtehad' a system of consensus, which allows its interpretation according to the changing times. He also rejected the notion of clash of civilisations and said all religions believe in tolerance. "We are proud of our religion as it preaches peace and tolerance," he added.

The Prime Minister called for the need of developing understanding and an openness among the people of all faiths for greater interfaith harmony.

He said a certain minority, despite the belief it professes, pursues extremism, but said that such attitude should not be attributed to any particular religion.

He said there could be nothing farthest from the truth the impression that Islam was linked to terrorism. "There are certain individuals and we must fight their extremist behaviour," he added.

To a question about Gwadar Port, Shaukat clarified that it was not a defence establishment. "It is an open city, with beautiful beaches and a five-star hotel in its final stages, being developed as a tourist resort."

Shaukat said Pakistan was a responsible nuclear state, committed to nuclear non-proliferation and had put in place checks and balances and controls to ensure that nuclear technology does not fall into wrong hands.

He said Pakistan's nuclear programme was aimed at providing the country sovereignty and security to maintain balance in the region.

The prime minister reiterated Pakistan's stance of nuclear non-proliferation and said the country also believed that any country should use nuclear energy for peaceful purposes under the IAEA safeguards.

He said Pakistan had a strong Nuclear Command and Control Authority that had put in place checks and balances to ensure that nuclear technology does not fall into wrong hands.

"We have a secure system, world class in terms of protection of our nuclear capability and it is robust, effective and provides necessary controls, which are required," he added.

He said that perhaps if India had not conducted its nuclear tests, Pakistan might not have done so. Pakistan had to turn to the nuclear option because of its security concerns, he added.

He said in 1974 Pakistan advocated a nuclear weapons-free zone in South Asia, "however, we found a few supporters for that idea, as the international community had already reconciled to the new reality created by the 1974 test."

He said Pakistan supports nuclear and conventional restraint and avoidance of arms race in South Asia.

"We have offered a strategic restraint regime to India in addition to security related to CBMs to minimise risks on account of accidents," Shaukat said.

He said though it may sound paradoxical, as Pakistan is a nuclear weapon state, but added that the country was a reluctant entrant into the nuclear club and developed its capability in response to the nuclear tests conducted by its neighbour in 1974.

Prime Minister Shaukat Aziz said Pakistan also shares its concern in the region. "We want the Korean Peninsula to be free of nuclear weapons and we wish to see the Six Party talks succeed."

Copyright Associated Press of Pakistan (APP), 2005

Heavy Japanese investment assured: PM meets businessmen

By Our Staff Reporter

TOKYO, Aug 9: Leading Japanese companies have agreed to invest in gas import pipeline projects –- with Iran, Qatar and Turkmenistan — besides a number of other industrial, tourism, energy and textile sectors in Pakistan. The heads of Japanese companies expressed their willingness to invest heavily in Pakistan in their separate meetings with Prime Minister Shaukat Aziz here on Tuesday. They include Itochu Corporation, Japan Gasoline Corporation (JGC), Japan External Trade Organisation, Honda Motors and Mitsubishi Corporation.

The Prime Minister offered Japan to set up Japan-specific special industrial parks for production of exportable products. In his meetings, the prime minister projected Pakistan’s Look East Asia policy. Mr Aziz would also meet heads of about 20 top companies to market Pakistan as an investment destination.

The interest shown by leading Japanese companies to take part in the multi-billion dollar gas import projects –- Iran, Qatar and Turkmenistan -– came just a few days after Indian Prime Minister Manmohan Singh’s scepticism about investor interest in the Iran-Pakistan-India pipeline owing to risk factor.

The chairman of Itochu Corporation, Uichiro Niwa, told the Prime Minister that his company was interested in investing in gas pipelines, auto industry, agri-business, textile sector and oil refinery and other petrochemical sectors.

The chairman of Japan Gasoline Corporation (JGC) Y. Shigehisa also expressed his keen interest in investing in pipeline projects, petrochemical industry, energy sector, oil and gas in view of fast growing Pakistan economy. He also indicated to invest in oil industry in Pakistan owing to its close proximity with the Middle East for export of refined products.

Mr Osamu Watanabe, head of Japan External Trade Organisation (Jetro) said his company had long term relationship with Pakistan since long and it would help Pakistan in identifying key projects Pakistan needed to expand its export share in Japan, including technical training and capacity building in Pakistan’s human resource sector.

The JETRO would also assist Pakistan in developing “One-village-one-product” concept, market these products in Japan and rest of the world besides plastic industry.

The President of Honda Motors, Takeo Fukui, also had a meeting with Prime Minister Shaukat Aziz and said the company had finalized its plans to expand its investment in auto-sector, motorcycles and vendor industry.

In his separate meetings and later in a meeting with a number of companies, the Prime Minister asked Japanese entrepreneurs to help Pakistan meet its infrastructure needs and take advantage of the increasing requirements of investment and growth.

It is learnt that Honda Motors has agreed to invest $100million to expand its motorbike production in Pakistan

Speaking to members of the Japanese business community at a luncheon meeting hosted jointly by the Japan Pakistan Business cooperation committee and Tokyo chamber of commerce and industry, the Prime Minister pointed out that high economic growth is creating demand leading to increased sale of consumer and electronic goods, automobiles and motorcycles and this in turn creates a lot of opportunities for companies operating in the country.

He said Japanese businessmen that major opportunities for investment and growth exist in oil refining, petrochemical, power generation, oil and gas pipelines, agri business, real estate, tourism, IT, telecommunication, engineering and auto industry.

The Prime Minister urged Japanese entrepreneurs to use Pakistan as a manufacturing base to serve markets of South Asia, Central Asia and Middle East. He said Pakistan’s labour and its location is second to none. He said people of Pakistan were hard working and wanted a peaceful environment to grow. He said about 600 foreign companies are already operating in Pakistan and the big companies were having return on equity ranging from 20 to 50 per cent, which was highest by any standard.

Mr. Aziz especially asked the Bank of Tokyo to re-look at Pakistan as there were a lot of opportunities for banks to operate in the country. He said with the economic growth a bigger middle class is emerging in Pakistan creating demand for housing and consumer goods as well as more investment opportunities.

He said Pakistan had one of the highest growing cellular markets in the world with half a million consumers added every month.

He said like any other country, Pakistan also faced some challenges including the need to invest more in the social sector, health and education. He praised the Japanese government for its assistance for the purpose.

The prime minister also introduced to the Japanese investors the leading businessmen accompanying him. They belonged to different sectors like textile, leather, engineering, tourism, shipping, and banking and insurance.

http://us.news3.yimg.com/us.i2.yimg.com/p/rids/20050810/i/r1850752526.jpg

Al-Tuwairqi Group will spend about $200 million to build a steel mill in Karachi, Middle East Newsline reported Friday.

The planned Tuwairqi Steel Mills in Karachi will have a capacity of 1-million-tons per year.

The facility is expected to employ about 1,000 people.

Al-Tuwairqi also will spend $30 million to lay an electrical supply line for the new mill.

Copyright 2005 by United Press International

Al-Tuwairqi Group will spend about $200 million to build a steel mill in Karachi, Middle East Newsline reported Friday.

The planned Tuwairqi Steel Mills in Karachi will have a capacity of 1-million-tons per year.

The facility is expected to employ about 1,000 people.

Al-Tuwairqi also will spend $30 million to lay an electrical supply line for the new mill.

Copyright 2005 by United Press International

Great news....any time scale of when its going to be set up?

Pakistan best suited for investment

BY KHALID KHOKHAR

One of the most important features of President Musharraf’s government is to revive the economy of the country and to build an atmosphere where foreign entrepreneurs can invest without any fear. By the time Gen Pervez Musharraf had taken over in 1999, the country owed foreign creditors over 25 billion US dollars. Debt servicing had become the largest element of the annual budget. Most of these debts had been incurred under Benazir Bhutto's and Nawaz Sharif’s government. Between 1947 and 1970, Pakistan had a foreign debt of only 3 billion dollars. The international donors praised the country as particularly credit-worthy. Bhutto and Zia, started to be more extravagant taking foreign debt to 13 billion dollars in 1988. In only one decade, Benazir Bhutto and Nawaz Sharif doubled that debt to over 26 billion dollars. This money was used for some major infrastructure projects like the motorway between Islamabad and Lahore. Some money, however, remained unaccounted for. All this bad and mismanagement may be attributed to the two Prime Ministers personally. Corruption charges amongst the upper political and administrative echelons were rampant. Pakistan was on the verge of being declared as a failed and default State. In this general atmosphere, General Pervez Musharraf took over the country.

When the General came into power, majority of Pakistanis felt relieved. The current government's wide-ranging structural reforms, prudent macroeconomic policies, financial discipline and a consistency and continuity in policies have transformed Pakistan into a stable and resurgent economy. Foreign debts have been reduced by $6bn in the last three years. Foreign currency reserves stand at an all-time high of almost $13bn. The Karachi Stock Market (KSE), which has never crossed 2,000 points since the creation of Pakistan, is almost touching 8,000 points. The progress shows that Pakistan is moving in the right direction as government is spending substantially to provide an infrastructure to facilitate and help private sector investments. Pakistan's economy has made significant progress over the last five years and the growth rate would be higher than the target of 8.4 per cent of GDP.

Prime Minister Shaukat Aziz has been instrumental in making a broad-based economic recovery, which has gathered momentum, macro-economic stability has been achieved and the external balance of payments is much stronger today than ever before.

The PM forecast that a stage is now set for economic growth to accelerate to more than 8 per cent per annum over the next three to four years with private sector playing the leading role. Pakistan's industry has the potential to compete in the world, but there is need to work with dedication and commitment taking advantage of liberal economic policies and open competition provided by the present government.

Due to liberal economic polices marked by investment friendly atmosphere, Pakistan is increasingly becoming an ideal place for investors and industrialists for growth.

Significant foreign investment is taking boost in oil and gas sector in Pakistan as a result of special emphasis given towards attracting foreign investment especially in oil and gas sector. The most recent CBMs between Pakistan and India have led to a 30 percent jump in bilateral trade with the neighboring countries. Pakistan's exports have been increased by 22 percent in 2003-04 as compared to the previous year. In an analysis conducted by Indian PHD Chamber of Commerce and Industry (PHDCCI), it was established that the trade between the two countries has the potential to grow exponentially since the trade that is taking place through the non-official route and through third countries would then be direct. Nevertheless, Pakistani Prime Minister Shaukat Aziz held "cordial and friendly" talks with his Indian counterpart Manmohan Singh but insisted further progress in bilateral ties hinged on a solution to Kashmir. "We can use the resources once we settle our disputes with neighbouring countries", said the Prime Minister Shaukat Aziz.

Aziz, on his first official visit to India, told reporters he and Singh had covered bilateral and regional topics, including a proposed natural gas pipeline from Iran to India via Pakistan. Pakistan would like India to participate in the project.

In the meanwhile, a six-member Chinese delegation visited Pakistan and evinced keen interest in Pakistan Steel Mills revamping and expansion project. Yang Mingde, the vice president of China Metallurgical Construction Corporation (MCC) informed that the MCC was a large state-owned Chinese corporation that had carried out construction of many strategic steel production bases like Baosteel Complex of Shanghai and Anishan Steel Works. Pakistan welcomed their investment offer as Pakistan is pursuing a liberal industrial policy aimed at attracting investments both local and from abroad through joint collaborations. The present government is committed to create an investors-friendly environment in the country with a special focus on further opening up the economy and marketing potential for direct foreign investment. The Chinese company should also invest in other robust sectors for which the government would provide every possible facilities and technical assistance to them. The production ministry would identify six sites within a week where iron ores deposits exist but had yet to be exploited due to their low grading or being deep-seated in the ground. Yang Mingde, the head of the Chinese team, appreciated the economic reforms introduced by the current government during the last five years. He said Pakistan, now, offered great incentives and conducive environment for foreign investment.

The business community should take full advantage of investment friendly policies and work hard, invest more and make competitive products to compete in the world market. The government is trying hard to project Pakistani products amongst the potential international buyers and investors. In this direction, a committee of federal ministers has been composed which would formulate a strategy of attracting foreign investors in the country. More than 18.1 per cent growth rate has been recorded in large- scale manufacturing in the first three months of current fiscal year and a robust performance has been witnessed in services sector. In the first quarter of current fiscal year, there has been a strong rebound in investment, particularly in private sector, relatively low inflation and an investment-friendly interest rate. The fiscal policy stance has remained decidedly growth oriented and Pakistan has made significant progress on fiscal front in recent years. Now, Pakistan's overall budget deficit that averaged nearly 7 per cent of the GDP in the 1990s has been reduced to 2.4 per cent in 2003-04.

The foreign exchange reserves are in comfortable position and exchange rates remained stable more or less during the first quarter of the current fiscal year. On the whole, Pakistan's economy have been doing just fine so far and there are indications that like last year, will over perform in many areas this year as well. The Prime Minister urged the business community, to make every effort to find new markets for the exports.

There are many examples in front of us, look how China, Japan, Latin America and the Asean region have progressed and reinvigorated their economic activity to become opulent countries. With Pakistan becoming member of the Asean Regional Forum (ARF), the task of the businessmen is to establish contracts in that part of the world and exploit the advantage that now exists for us as a member of the Asean Regional Forum.

The government has created a business-friendly environment to facilitate local and foreign investors, resultantly, several foreign investors and overseas Pakistanis had showed interest in setting up industrial projects in Pakistan. Industrial growth would automatically bring down the unemployment graph and create job opportunities. The Prime Minister Mr. Shaukat Aziz has announced a comprehensive agenda for overall socio-economic development, poverty alleviation, employment generation, speedy dispensation of justice, improvement of law and order and increased agricultural and industrial production.

The Prime Minister has a vision of Pakistan that enjoy a rightful place and respect in the comity of nations and people have social justice and equal opportunities to progress and prosperity. The time has come for the realization of such a dream. Pakistan is a country of hundred and fifty million people whose potential are second to none in the world and after becoming a nuclear power against all the oddities, it has proved that everything is possible with sheer hard work and commitment.

source (http://peacejournalism.com/ReadArticle.asp?ArticleID=5255)

Yeah baby, that's the way I like it. Hopefully the inflation will lower soon.

And whereabouts?

Al-Twairqi group is infgact a saudi company headed by a pakistani. The company started off not too logn ago. Around 15 years i guess. Apart from Twairqi himself, the guy who helped the saudi firm set up properly is Mr.Tariq Barlas. And then theres the other right hand of Al-Twairqi, Imran Agha.
Last year Twairqi recorded a billion Saudi Riyal turnover. (SR 1Billion = PRS. 15.5B)
Tariq Barlas is said to be the richest Pakistani in Saudi.Although i personally think there are pakistanis bigger than him as well.
Coming back to Al-Twairqi group setting up a steel mill i karachi. I will come up with more reports soon But from what i remember steel mill should get thru in about 2-3 years time.
Ill dig in and inform you gusy soon.

Korangi Industrial Park master plan by April

RECORDER REPORT

KORANGI (August 30 2005): National Industrial Park Development and Management Company Chief Executive Mohammed Zubair Habib said that master plan of Korangi Creek Industrial Park (KCIP) will be ready by April 2006.

Speaking at a meeting of Korangi Association of Trade and Industry (Kati) on Monday, he said that allotment of plots in KCIP would be done after finalisation of the master plan. Zubair Habib said that the KCIP would be the world-class industrial park having all the facilities, adding its board of directors would have 75 percent members from the private sector.

He said that Pakistan Industrial Development Corporation (PIDC) has allocated 250 acres of land for the park besides Rs 15 crore given by Pakistan Refinery. Earlier, he added, this land was allocated by the PIDC for establishing Naphtha cracker plan

Zubair Habib said that the KCIP would be ideal for operating small and medium-sized industrial units that have low requirements of water, power and gas. "The park would have its own power generation unit as well as water desalination plant."

He said that he has taken up matter of gas supply with managing director Sui Southern Gas Company (SSGC) who has assured the provision of gas as soon as the project comes up.

He suggested various sectors in which investment should be made in this industrial park including textile, leather value-added products, food processing, pharmaceuticals, light engineering, information technology, gems and jewellery etc.

Zubair Habib said that the park would comply with all the requirements of the healthy environment and the WTO.

Regarding price of the plots and size, he said that majority of plots would be of half acre and sold at much lower than the prevailing market price.

Speaking on the occasion, former FPCCI president, S. M. Munir said that KCIP plot allotment policy must have a condition that all the allottees must establish units under the specified period otherwise their allotment would be cancelled.

Welcoming the guests, KATI Chairman Abdul Haseeb Khan pointed out that since 1977 no investment has been made to improve infrastructure in Karachi industrial areas.

He said that last month Sindh chief minister during a visit to Kati office announced establishment of Korangi Industrial Trading Estate Limited (Kite).

He said that an important meeting in this connection is going to be held on Tuesday with Federal Minister for Industries and hoped that Kite will become reality within next two months.

He noted that Federal and Sindh governments both had already announced Rs 25 crore each for infrastructure development in Kite.

Talking to newsmen, Haseeb Khan pointed out that Kati has proposed his name for the first chairman of the upcoming Kite.

He said that board of directors of the proposed Kite would have 12 members with 9 from the private sector and rest from the government side including federal secretary industries and production.

Copyright Business Recorder, 2005

President General Pervez Musharraf inaugurated White Oil Pipeline project in Karachi on Friday

He said that the oil pipeline had been constructed to the tune of 550 million US dollars. The pipeline is having a length of 817 kilometer with a capacity to handle the movement of High Speed Diesel (HSD) of 12 million tons per annum from Karachi to Mehmud Kot, he said.

He said that it was a joint venture of the consortium led by Pak-Arab Refinery Limited (PARCO), which includes Pakistan State Oil (PSO), Caltex and Shell.

He said that about three pushing stations had been constructed along the pipeline to push forward the crude oil in the pipeline.

He said that the supply of the crude oil through the pipeline not only save the transportation charges but it would also provide clean environment and lesser pollution.

speaking at the inauguration of $480 million white oil pipeline from Port Qasim to Mahmood Kot, President Musharraf said Pakistan must establish oil refineries at Gwadar to refine oil of Gulf countries for international market.

Inaugurating the 817-kilometre oil pipeline, the president said, “There is a big and increasing gap between demand and supply of refined oil. Therefore Pakistan must establish oil refineries,” he said. It will serve the strategic interests of the country, he added. “A similar pipeline can be laid from Gwadar upcountry to transport oil products as a feasible proposition,” the president said. He said Gwadar Port had been completed and it would be commissioned in June 2006. agencies

Good

At least they dont have to pay 3 dollars per gallon like me.

Picture released by Inter Services Public Relation (ISPR)

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http://img381.imageshack.us/img381/848/r14990487944sz.jpg

FNEL and businessmen keen to invest in NWFP

RECORDER REPORT

PESHAWAR (September 02 2005): Leading businessmen and chairman and chief executive of the First National Equities Limited (FNEL) on Thursday offered huge investment in various sectors, including Bank of Khyber to the NWFP government.

FNEL Chairman Ali A. Malik and Chief Executive Officer Saeed Ahmad Bajwa called on NWFP Senior Minister Siraj-ul-Haq at the Civil Secretariat Peshawar and apprised him of the offer as well as steps already taken.

Besides, provincial Finance Secretary Ziaur Rehman and Planning and Development Secretary Syed Manzoor Ali Shah Bacha and Central Leader of Muttahida Majlis-i-Amal (MMA) Liaquat Baloch were also present on the occasion.

They said that FNEL has formally launched its services by establishing regional office at Chowk Yadgar, Peshawar, office in Abbottabad was under-construction, while its network would spread across the province by opening offices in all the major cities, including Mardan, Mingora, D.I. Khan, Kohat, Bannu, Hangu and Nowshera.

They said the company has started with Rs 500 million net investment, thereby providing micro-credit facilities to the people, accelerating trade and commerce activities in public-private sectors and increasing job opportunities.

They expressed keen interest in purchasing BoK shares on the pattern of German Bank and playing a dynamic role in Riba-free Islamic banking introduced by the MMA government.

While welcoming the offer, Siraj said that Islamic banking was in fact the main source of discouraging human exploitation interest-based system and constituting stable welfare-oriented economy which, he said, could be nourished through joint and vigorous efforts.

He said Islam asked for decentralisation of resources and just distribution of wealth rather than accumulated in a few hands to boost economic activities.

He said the MMA government was working on same lines to streamline and stir trade and commerce-related concerns in the province.

However, he underlined the need for joint ventures through public-private partnership, adding that NWFP, especially Peshawar could again become international market in entire Asian region by such efforts with national zeal.

Siraj said the experience of NWFP government and BoK happened to be a great success and encouraging in introducing Islamic banking unlike the observations and reservations of critics, while income ratio of BoK has been considerably increased as such.

He said the MMA government freed BoK of all political and administrative interference.

The minister asked the FNEL officials to submit its proposals regarding purchasing BoK shares, economic consultancy and Riba-free credit facilities in black and white to the provincial government.

He made it clear that the MMA government would leave no stone unturned to properly encourage financial bodies interested in Islamic banking and boosting economic activities.

Liaquat Baloch also lauded offer for Islamic banking and micro-credit services of the FNEL and assured co-operation in this regard.

Copyright Business Recorder, 2005

very good idea. hope it materializes on time.

Japanese investment is arriving into Pakistan that would further help expand gross domestic production (GDP) and economic activity. Ambassador of Japan to Pakistan Nabuaki Tanaka stated this while speaking at a press briefing on "Perspective on Japan and Pakistan Relations" here on Wednesday.

He said Pakistan has potential to play a vital role for future economic regional hub for Afghanistan and Central Asian countries. "Pakistan could also become a regional hub of economic activities to India in future when Islamabad and Delhi sign Free Trade Agreement (FTA)", he added.

Both the countries (Japan and Pakistan) are enjoying very good relations and a new phase of bilateral friendship opened after the visit of Prime Minister Shaukat Aziz to Japan in August last.

The Prime Minister Shaukat Aziz met with 27 Japanese business leaders and invited them to invest in Pakistan, he added.

Japan is ready to assist in setting up vocational training centres in Pakistan and it will help train skilled manpower in the country, he pointed.

While responding to a query, he said Pak-Japan trade was now very low and below potential, and the balance of trade was in favour of Japan in view of the increased Japanese machinery import. The signing of FTA between the two countries was premature.

Turkish Prime Minister Recip Tayyip Erdogan called on President Pervez Musharraf at the UN headquarters on Thursday and reviewed bilateral, regional and international relations. The meeting lasted for about an hour was held in a friendly and cordial atmosphere.

Foreign minister Khurshid M. Kasuri told newsmen after the meeting the two leaders decided to further strengthen co-operation in economic and trade fields.

He said the present volume of trade relations is around $300 million and it was agreed during the meeting to encourage private sector to take this level of trade to $1 billion. Kasuri said other important regional and international issues were also reviewed.

The two leaders also discussed restructuring of the OIC and President Musharraf informed the Turkish Prime Minister about his suggestions for the forthcoming Makkah summit to resolve problems faced by the Muslim Ummah.

The President said the group of eminent persons of the OIC has prepared its report keeping in view problems of the Ummah and to strengthen various organs of the OIC, including development of science, technology and research.

President Musharraf called for more financial resources for the OIC to make it financially independent. He said this can be achieved if each Muslim country contributes 0.01 percent of its GDP.

Recip Tayyip Erdogan agreed to points raised by President Musharraf and said Turkey, too, wanted to strengthen the OIC.

Kasuri said both the countries have agreed to co-ordinate their efforts and make the Makkah summit a success.

Pakistan, India trade could reach $3bn

KARACHI, Sept 16: Pakistan and India should remove trade barriers and complement each other to tap bilateral trade potential of more than three billion dollars through direct trade for benefit of both the peoples.

Presently, bilateral trade between the two neighbouring countries stood at $600 million while the estimated informal trade volume in 2004-05 figured $2 billion which involved goods like chemicals, industrial machinery, cement, tyres, tea, medicine, video tapes, cosmetics and viscose fibre. These goods found their way through third markets such as Dubai and Singapore.

The trade through other countries harm interests of both the countries i.e. increasing the cost of production and slashing the revenue of exporters as well as increasing price for consumers.

This was noted in a meeting between the visiting trade delegation from Indian Merchants’ Chamber (IMC), Mumbai and members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) here at Federation House on Friday.

Led by President IMC, Rajesh Gordhandas Kapadia, the IMC delegation included Indian women entrepreneurs.

FPCCI President, Ch Muhammad Saeed led Pakistani side.

Prominent from Pakistani business community were Vice President FPCCI, Akbar Abdullah, ex-FPCCI chief, Iftikhar Malik, Member of FPCCI Managing Committee, Dr Mushtaq Noorwala, Co-chairperson, FPCCI Women Entrepreneurs Forum, Ms Mehreen Illahi.

The meeting decided that Indian and Pakistani businessmen would have to push their governments to remove trade barriers at the earliest leading to availability of equal level-playing fields for business communities of both the countries.

They also underlined the need for immediate possible resolution of political issues between the two countries so that confidence of the businessmen from the two countries could be strengthened and sense of uncertainty removed.

Pakistan and Indian businessmen warmly welcomed the start of ferry service between Karachi, Mumbai and Dubai and noted that it would bring the people of India and Pakistan further closer besides enhancing bilateral trade due to its cost and time efficiency.

President, Federation of Pakistan Chambers of Commerce and Industry, Ch Muhammad Saeed said besides textiles, the trade between Pakistan and India could be increased in other sectors like tea, coffee, textile machinery, chemicals, sports goods, surgical equipment, leather and leather products and iron ore.—APP

Trade ties with Japan to be strengthened

LAHORE, Sept 17: Pakistan and Japan have strong business ties which can further be strengthened by building lasting relationship between their trading communities. This was stated at a meeting between a four-member Japanese delegation and officials of the commerce and investment department here on Saturday.

The Japanese delegation was led by Japan Overseas Marketing Komatsu Limited vice-president Shunichi Ono and it is visiting Pakistan on the invitation by the prime minister.

The delegation was briefed on trade, commerce and investment by the commerce and investment department secretary and other officials.

It was stated that the government was committed to facilitate investors and in this regard laws had been simplified. As a result, Pakistan had become foreign investment friendly country.

Both the sides agreed to promote mutual understanding between the business communities and industrialists of their countries.

Mr Ono took keen interest in the investment opportunities in the province, and discussed various matters of mutual interest with the provincial officials.

The delegation later visited two local factories to get information about their production.

July-Aug FDI rose by over 108 per cent

By Our Staff Reporter

ISLAMABAD, Sept 22: Foreign direct investment (FDI) in Pakistan in the first two months (July-August) of the fiscal year 2005-06 amounted to $225 million, up by over 108 per cent against $108 million of the same period last year. Board of Investment (BoI) Chairman Wasim Haqqie told Dawn that the FDI in August stood at $106 million compared with $55.8 million in the same month last year, showing an increase of about 90 per cent. Detailed data would be released in a couple of days, he said. He said Pakistan had attracted $1.524 million FDI during the fiscal year 2004-05, which was 61 per cent higher than the corresponding period of 2003-04. This also included $363 million FDI as privatization proceeds of 10 per cent first tranche of PTCL and $103 million second tranche of Habib Bank’s privatization. Mr Haqqie said the FDI target for 2005-06 had been set at $3.3 billion, which would be achieved by extending all possible facilities and concessions to foreign investors, especially those in the housing and construction sector.

Asked as to why the government had fixed a conservative target of $3.3 billion FDI for the current year when $2.6 billion would be coming as privatization proceeds of Pakistan Telecommunication Company Limited (PTCL) alone, the BoI chief said Etisalat of the UAE had already paid an amount of $260 million as first instalment of PTCL’s bid money. “Besides, many investors who have won major privatization transactions are paying bulk of their bid money by raising financing from the local banking sector. As such, since they are not bringing equity in the form of foreign exchange, the local fund raising is not included in the FDI,” he added. Sources said that Ghaith Pharoon of Attock Group — the successful bidder of National Refinery Limited — had deposited about $230 million of equivalent local currency from its local business and financing arrangements from the banks. Similarly, Warid Telecom also made an investment of about $200 million in Pakistan by raising financing from its local banks i.e. Bank Alfalah and United Bank Limited.

In the fiscal year 2003-04, the FDI in Pakistan stood at $949.4 million, which was 19 per cent higher than the corresponding period of 2002-03. This also included $198 million first tranche of the HBL sale proceeds. Similarly, the FDI stood at $798 million in 2002-03, which was 65 per cent higher than $484.7 million in 2001-02. This also included $176 million privatization proceeds of United Bank Limited. Pakistan attracted $9.3 billion foreign direct investment during the last 15 years since 1989-90. Mr Haqqie said the federal government was doing a lot in luring domestic as well as foreign investment, but all the business opportunities were lying in the four provinces. “In fact, they should identify projects, market them and provide basic facilities like gas, water and electricity, but except Punjab, their performance is not up to the mark.” The federal government was also not satisfied with the performance of 33 honorary investment counsels (HICs) appointed in 23 countries, he added. The BoI chief said the flow of FDI during the last fiscal year stood at $1.52 billion, showing an increase of over 60 per cent when compared with $949 million of the year before. The $1.52 billion investment also included $363 million privatization proceeds of the first $260 million instalment of PTCL and $103 million second tranche of Habib Bank Limited. He said if portfolio investment of $152 million was included, the total foreign investment during 2004-05 amounted to $1.677 billion.

http://www.dawn.com/2005/09/23/ebr2.htm

108% in just two months

President’s Investment Initiative launched: Govt sets $27b FDI target in five years

Staff Report

ISLAMABAD: President General Pervez Musharraf on Monday approved the ‘President’s Investment Initiative’ (PII) which aims to maximise investment in the country.

The initiative, which will be directly monitored by the president, would enable Pakistan to achieve a foreign investment of $27 billion in the next five years.

According to an official statement, the initiative was approved in a meeting chaired by President Musharraf and attended by Prime Minister Shaukat Aziz, Federal Investment Minister Dr Abdul Hafiz Sheikh, Minister of State for Investment Umar Ahmed Ghuman and Planning Commission Deputy Chairman Dr Akram Sheikh. Minister of State for Investment Umar Ghuman will be the chief coordinator of the PII.

Ghuman’s will ensure the implementation of the PII and facilitate the improvement in the country’s investment climate.

The area of investment specifically identified in the meeting was the energy sector, including power generation and gas exploration and development. The meeting also decided to improve the infrastructure of the industrial sector to attract investment.

The meeting was told that several foreign investors were ready to invest in the housing sector. Regular review meetings will be held during which leading investors would be invited to discuss their problems. The president will summon the first meeting in this regard in the second week of October.

KARACHI: More than 700 investors from Karachi showed up at Pakistan's largest luxury housing project, Lake City Holdings' launch held on Monday at a local hotel and concluded on Tuesday.

The project has been already marketed in London, Dubai and Lahore.

Lake City Holdings (Pvt) Ltd was represented by CEO, Lake City, Gauhar Aijaaz, Director, Lake City, Masood Riaz, Chairman Lake City Javed Iqbal, Director Lake City Aasif Riaz, Director Lake City Hussain Iqbal, Director Lake City Brigadier Aasif Ghazali, Zahid Razzaq of Omega Rality Development.

Lake City is a resort, residential development project, at about 13 km on the outskirts of Lahore. The affluent factor in nominating the site, in view of the mounting pollution levels in the city, were its environmentally serene surroundings in close proximity of Lahore.

The project derives its name from the artificial lakes that would form the focal point of the habitat. Covering an area of more than 2,104 acres, the resort with its lush green parks, sinuous lakes, an 18-hole regulation golf course and myriads features, promises to set a benchmark in luxury lifestyle.

The project is in collaboration of some of the largest business and industrial groups of Pakistan. The concerned groups boast a combined annual turnover of $1 billion and employees strength of 50,000. The novel initiative to redefine the standards of living in Pakistan also has the secure backing of some of the most credible investment portfolios as well as patronage of concerned government agencies.

The project includes companies of immense stature like Mayfair Group of Companies, Ejaz Group of Companies, Naveena Group of Companies, Dada Group of Companies, Sapphire Group of Companies, Bhanero Group of Companies and Gulistan Group of Companies who share a vision to see this dream to grow and prosper.

Elucidating on this occasion, Ejaz Gauhar, CEO of Lake City Holdings, said, "I am delighted to see the kind of response we had not only in Lahore but also in Dubai, London and several other places of the world. Today I am proud to launch this project in Karachi as me and my team understand the economic significance and friendly environment this city possesses. We firmly believe that investment in a project such as Lake City is a goldmine for the investors to enjoy an opportunity of a lifetime with complete peace of mind."

Prominent among those present were Bashir Jan Mohammad, S M Muneer, Riaz Ahmed Tata and other high-worth investors.

http://www.brecorder.com/index.php?id=331968&currPageNo=1&query=&search=&term=&supDate=

I'm not surprized as it's such a gr8 project.

yup

Pakistan attracting foreign investment

DHAHRAN: With a vastly improved and stable investment climate, a number
of foreign investors, especially from Saudi Arabia and the Gulf are now exploring ventures in Pakistan, Arif Habib of Arif Habib Securities Limited told a select gathering of Pakistani professionals here on Tuesday.

Already the Al-Tuwairki Group of Dammam is proceeding ahead with the setting up of a steel plant in Karachi at a cost of $250 million. They are also seeking investments in other sectors of industry and real estate development in various places in Pakistan. The local Al-Tamimi Group is also proceeding ahead with a $250 million real estate development project in Islamabad.

The local Globe Marine Services is also pursuing the stevedoring contract at the upcoming Gwadar port. Another local company, was also pursuing a major investment in Pakistan, Pakistan’s Honorary Investment Counsellor in Dhahran Ismat Amin Khawja told the gathering.

Arif Habib told the Pakistani professionals that the decision of the UAE based Etisalat to buy 26 per cent stakes in the PTCL at a price of $2.6 billion had given a major boost to foreign investment and the overall privatization process. This would help attract more foreign investment in Pakistan and would reduce the trade deficit, he asserted.

Discussing the impact on the economy of the improved investment climate, Mr Fawad of Fatima Group of Pakistan stressed that the industrial activities in the country had picked up considerably. “Even the local investors are returning back to Pakistan and there is a negative cash outflow these days.”

Some major Pakistani investors have brought back their investments from abroad so as to capitalize on the encouraging scenario.

“Three new cement plants are coming up, more investment into the fertilizer sector is being witnessed, the number of cars and motorcycles manufacturing has gone up considerably and is in fact unable to pace with the demand growth currently and the textile sector is witnessing a major boom.

“Consequently managers and skilled manpower are in demand and their pay scales have seen significant improvements over the last few years,” both Mr Habib and Mr Fawad asserted.

The Karachi Stock Exchange which was roughly at 1,200 points level in 1998 has now grown by almost 6-7 times and is currently trading at around 8,000 mark, indicating the strength of the Pakistani economy. The foreign exchange reserves now are sufficient to finance imports for eight months now, whereas hardly a few years back, it was enough for 12 days only.

Those who invested in Pakistan were benefiting out of it, Mr Arif stressed. The Karachi Stock Exchange has outperformed many other markets and is in fact one of the most lucrative in the world today.

Referring to some of the challenges faced by the Pakistan economy today, Arif Habib pointed out inflation as a major cause of concern. Rising oil prices are also a big drain on the emerging economies like Pakistan but he felt the country was in a much better shape currently to sustain these challenges.

so much investments by Arabs in Pakistan.........why?

Due to the rising oil prices

so much investments by Arabs in Pakistan.........why?

you complaining?

Al-Tamimi Group just brought a plot in islamabad for $100 million :eek2: :eek2: :eek2:

Tamimi group is a HUGE HUGE group in saudi. They're even bigger than Al-Twairqi. Twairiq's been big for hte past 10-15 years or so. not even infact. tamimi is one of hte saudi giant companies.
tamimi had a lot of pakistanis working on high posts. infact i believe a few years back, most of the top management in tamimi were pakistanis. although the number has decreased now, there still are quite a few big shots working in tamimi who are pakistanis ofcourse.
Al-Twairiqi is infact run by pakistanis. well to be exact two pakistanis kinda run the show there. and they're one of the biggest steel providers in saudi right now.

So hearing about a $250m investment from both sides doesnt kinda take me by surprise. infact ive known about twairqi investing in pakistani for quite a while now. and things are quite well under progress.

One of the reasons is because Arabs are starting to lose faith in investing in Western buisinesses, and instead are opting for Asian and muslim countries. That's not the only reason of course, otherwise you'd be seeing projects like this in Somalia and Bangladesh. The current economic climate in Pakistan is favourable (relatively) and good for investments, so this is just a case of the chickens coming home to roost. Now its Arab and Saudi companies, pretty soon western companies will follow suit.

AIG CAPITAL PARTNERS INVESTS $30 MILLION IN THE RESOURCE GROUP INTERNATIONAL, LTD.



Karachi, October 4, 2005 – TRG Pakistan Limited today announced a $30 million investment in The Resource Group International, Ltd., from AIG Capital Partners, Inc., through the AIG Global Emerging Markets Fund II, L.P. and affiliates of AIG.



Founded in 2002, TRG is a global leader in the Business Process Outsourcing (BPO) sector, with over $170 million in revenues and more than 4,000 employees in the United States, Canada, the United Kingdom and Pakistan.



"TRG is thrilled to have the backing of a blue-chip investor with extensive global presence, and we look forward to a mutually prosperous relationship," said Zia Chishti, the Chief Executive Officer of TRG. "AIG’s investment will further accelerate TRG’s growth and help us achieve our vision of becoming the premier BPO service provider for our clients worldwide.”



“We are excited to continue the active investment program of AIG Global Emerging Markets Fund II with the acquisition of an equity stake in a first-rate company that, following our investment, is poised for future success,” commented David Yeung, President and CEO of AIG Capital Partners.



Paolo Zapparoli, a Managing Director with AIG Capital Partners who will join the Board of Directors of TRG, stated, “We are delighted to invest in a company with a winning management team whose track record speaks for itself, and we look forward to working closely with TRG to support its continued growth."



Proceeds from this round of financing should allow TRG to continue to grow by acquiring companies that complement its existing business. A portion of the funding will also be used to support TRG’s organic growth.



# # #



About TRG



TRG Pakistan Limited, through its subsidiary The Resource Group International Limited, is Pakistan’s largest IT-enabled services company and a global leader in providing Business Process Outsourcing (BPO) solutions, with over 4,000 employees in four continents. TRG Pakistan’s common stock is listed on the Karachi Stock Exchange (KSE: TRG; Reuters: TRGP.PA).



About AIG Capital Partners



AIG Capital Partners, Inc, a member company of AIG Global Investment Group and a wholly owned subsidiary of American International Group, Inc. (AIG), is a leading private equity investor in emerging markets. With 67 investment professionals in 16 offices worldwide, AIG Capital Partners and its affiliates manage assets in excess of $3 billion.



AIG Global Investment Group (AIGGIG) comprises a group of international companies which provide investment advice and market asset management products and services to clients around the world. The member companies of AIGGIG are subsidiaries of American International Group, Inc. (AIG).



American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed in the U.S. on the New York Stock Exchange and ArcaEx, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

Foreign investment up by 135pc in 1st quarter

ISLAMABAD, Oct 22: Pakistan has attracted a total foreign investment amounted to $473.8 million during the first quarter (July-Sept) of 2005-06 as against $201 million of the corresponding period of last financial year, registering an increase of 135 per cent.

A senior official of the ministry of finance told Dawn here on Saturday that the way both FDI and portfolio investment were flowing in, there was no reason why the government should not achieve its $3 billion plus foreign investment target that also included privatization proceeds during the current financial year.

Giving the details, he said that the FDI (component of total foreign investment) during July-September of 2005 amounted to $328.7 million as against $181.1 million of the same period last year, thereby registering an increase of 81.5 per cent.

Most importantly portfolio investment registered a sharp increase up from $20.7 million of the first quarter of 2004-05 to $144.9 million of the same period of the current fiscal year.

The official said that bulk of the investment about 55 per cent of the total FDI came from the United States, United Arab Emirates (UAE) and the United Kingdom (UK).

He said almost 57 per cent FDI came in the oil and gas sector ($63.1 million), telecommunication ($96.3 million) and financial businesses ($27 million). “And there is no privatization proceeds involved in it”, the official said”.

Similarly, he said that bulk of the portfolio investment (87.3 per cent) came from the United States, ($88.2 million) followed by the United Kingdom ($38.3 million) during the first quarter of the current financial year.

“You must note that inflow in the portfolio investment has surpassed with a same margin to inflows in the FDI from USA”, the official said.

Responding to a question, he said that $3 billion foreign investment target also included roughly $2 billion to be provided by Etisalat of the UAE on account of acquiring controlling shares of the Pakistan Telecommunication Company Limited (PTCL).

Answering another question, the official said that inflation remained 8.5 per cent in September 2005 which was down from 9 per cent of the same month of last year. During the first quarter of the current fiscal year, he claimed, inflation had slowed down to 8.6 per cent as against 9.2 per cent of the same quarter in 2004-05, thereby suggesting a downward move on the inflationary front.

The slowdown in inflation, he pointed out, has mainly come from a substantial decline in food inflation during the first quarter of the current fiscal year.

Food inflation in the first quarter of 2005-06 was 8.35 per cent as against 14.1 per cent in the same quarter of the last fiscal year. On the other hand non-food inflation increased to 8.85 per cent during the first quarter of 2005-06 as against 5.9 per cent of 2004-05. “It is interesting to note that the major contribution to the rise in the non-food inflation was house rent, transport and communication”, the official said.

He said the sub-indices of house rent increased by 11.5 per cent as against 9.6 per cent in the same quarter of the last financial year. While sub-indices of transport and communications increased by 16.8 per cent as against 7.2 per cent in the same quarter last year. All other indices of non-food inflation, the official said, remained in the range of 1 per cent to 6 per cent.

In other words, Pakistan’s current inflation is driven by food prices (8.35 per cent), house rent (11.5 per cent) and transport & communications (16.8 per cent, he said.

While inflation pertaining to other indices, the official said, has remained below 6 per cent.

KARACHI PORT PRECINCT COULD ATTRACT US$20 BLN IT INVESTMENT

KARACHI, Oct 27, 2005 (AsiaPulse via COMTEX) -- The land of Port Qasim
Authority (PQA) and its vicinity is capable to attract around US$20 billion
foreign investment, which will also generate about $8 billion revenue from
exports annually. This was disclosed by a survey conducted by a foreign company
recently.

It said a 'Silicon Valley' in the proximity of Port Qasim could attract huge
foreign investment, if the authority could develop modern infrastructure, which
is required for grabbing potential foreign investment in the information
technology sector and allied services.

The land is suitable and could cater for future IT demands by establishing
manufacturing units for computer hardware companies and software houses, it
added.

Some IT companies of neighbouring country are planning to establish 'disaster
management' systems for their clients abroad and the PQA land as well as
vicinity is ideal to help building such centres, further asserted by survey
report.

PQA 'Silicon Valley' can attract $ 20 billion foreign investment
KARACHI (October 26 2005): The land of Port Qasim Authority (PQA) and its vicinity is capable to attract around $20 billion foreign investment, which will also generate about $8 billion revenue from exports annually.
Sources told Business Recorder that the land is ideal for computer and hi-tech manufacturers and online services like business processes outsourcing (BPOs).

In the past, a survey conducted by a foreign company showed that a 'silicon valley' in the proximity of Port Qasim could attract huge foreign investment, if the authority could develop modern infrastructure, which is required for grabbing potential foreign investment in information technology sector and allied services.

Sources said that the survey also indicated that the land is suitable and could cater future IT demands by establishing manufacturing units for computer hardware companies and software houses.

It is further suggested that the huge area of PQA would be converted into big software houses and IT Universities with research faculties.

Some IT companies of neighbouring country are planning to establish 'disaster management' systems for their clients abroad and the PQA land as well as vicinity is ideal to help building such centres.

Sources said that the infrastructure should be designed and made available for this purpose to grab the attention of such companies to consider shifting at PQA.

The area of Port Qasim, which is lying vacant for a long period, could be allotted to well-known international computer hardware manufacturer and software houses which could generate million of dollars.

In this regard, the authority has to draw a plan to market it in a professional manner that would eventually benefit the port and help increasing employment opportunities and transfer-of-technology in the country.

The valley could become hub for providing high-tech demand of Middle East and Central Asian countries.

The port planners said that some other places had been considered several times to develop as a trading hub for Central Asia and Middle Eastern countries, but this needed high volume of investment in the building of infrastructure.

But the PQA could easily build infrastructure in fast pace due its proximity with a metropolis instead of other location sans many facilities to set up a silicon valley.

Sources said the PQA has already become industrial zone as vehicle assembling plant, paint industry, plastic-manufacturing industry and polymer industry are already operating in the area.
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