Businessmen urged to explore investment avenues in Egypt

ISLAMABAD (March 25 2009

Egyptian envoy to Pakistan Magdy Amer has urged Islamabad-based businessmen to explore avenue of investment in Egypt in the tourism, communications, Information technology, construction, manufacturing and transportation. He stated this during his visit to the offices of Islamabad Chambers of Commerce and Industry (ICCI) on Tuesday.

He said bilateral trade between Pakistan and Egypt in 2007-08 was around 200 million dollar which was much lower while the two countries had vast potential to increase it.

He said Egypts GDP grew at 7.5 percent during 2007-08 which shows its good economic potential. He said tourism, communications, information technology, construction, manufacturing and transportation were the fastest growing sectors of Egyptian economy and urged upon Pakistani entrepreneurs to explore these sectors for enhancing trade and investment relations.

He said corporate and personal tax rates in Egypt were competitive while Egypt was a window for entering European Union, USA, Arab world, Eastern and South African markets as it enjoyed preferential access to these countries.

He said this offers for Pakistani business community are great opportunity to get preferential access to these markets by investing and manufacturing in Egypt. Egyptian Ambassador said a Pak-Egypt Business Council was established in 2006 but its performance was not up to the mark and stressed upon the need of reactivating it. He said lack of information and reluctance on the part of businessmen of two countries were the main reasons of low level trade between the two countries while direct contacts between businessmen were essential to increase it.

He assured the business community of his full support and co-operation in their visa matters for prompt provision of business visas. He informed that Egypt will be hosting the second meeting of the Economic Working Group of the Asia Middle East Dialogue (AMED) from May 9 to 11 which would specifically benefit the private sectors of the AMED countries and invited Pakistani businessmen to participate in this event as it will provide them a good platform of interacting with their counterparts for exploring areas of common interest. Speaking on the occasion, Mian Shaukat Masud, President, ICCI said being two brotherly Islamic countries; Pakistan and Egypt have a lot in common. -PR

Copyright Business Recorder, 2009

Effluent treatment plants: industries awaiting Rs 276 million project
materialisation

AFTAB CHANNA
KARACHI (March 25 2009)

Due to the lethargic attitude of Sindh government and rapid change of faces at the helm in Karachi Water and Sewerage Board (KWSB), the Rs 276 million project of developing four combined effluent treatment plants (ETPs) in the citys industrial areas is far from execution.

As envisioned by former President, General Pervez Musharraf, the four plants were to be developed for the wastewater being generated from the industrial units in Site, Landhi, Korangi, Manghopir, FB Area and North Karachi.

However, official sources in provincial finance department said that the plan, which was to be completed in three years, could not be started due to lack of interest by the concerned authorities in KWSB and Sindh government, the executor and financier, respectively, of the project. To comply with the former Presidents orders, lately the KWSB had initiated a feasibility study in year 2007 and a consultancy agreement was signed with Osmani & Company (Pvt) Ltd on March 19, 2008 through a competitive bidding and selection procedure.

After the formation of new Pakistan Peoples Party (PPP)-led government and tussle over the control of the utility, KWSB new Managing Director Muhammad Suleman Chandio cancelled the consultancy services vide office order No MD/KW&SB/2008/78/ L dated 17 June 2008, sources said.

Based on the above general decision about all consultations of KWSB, the Chief Engineer (E&M) issued a conditional cancellation/ termination to Osmani & Co (Pvt) Ltd vide letter No KWSB/CE/ (E&M)S&STP/08/887 dated 25 June 2008, sources added.

Later, they said, the previous Managing Director KWSB was given a detailed presentation by the consultants on June 28, 2008 wherein he allowed restoration of consultancy services. However, due to change of the MD, the formalities for restoration could not be completed.

The officials said that on September 3, 2008, a meeting was held under the chairmanship of Additional Chief Secretary (Development) that decided to consider foreign consulting firm in association with the local firm due to large size of the project. Subsequent to this meeting, a Prime Ministers directive was also received for expediting the subject consultancy services being undertaken by Osmani & Company, they said.

In order to expediently complete the study as per Prime Ministers directive and for early start up of execution work, they said the KWSB decided to restore the consultancy contract with Osmani & Company. Sources said that for restoration of consultancy services and incorporation of additional services in consultancy agreement, an administrative and financial approval was obtained from Chairman KWSB on February 12, 2009 to avoid further delay in the project.

According to officials, the Sindh government would release total payment in four instalments ie Rs 50 million in 2008-09, Rs 100 million (20 million foreign funding) in 2009-10, Rs 80 million in 2010-11 and Rs 46 million in 2011-12. for the feasibility studies and the paper work of the project.