Trade deficit increases to $2.5b for FY2004-05: SBP

ISLAMABAD (APP) - The trade deficit for July-November Financial Year 2004-05 rose to $2.5 billion as compared to a mere $ 0.4 billion during the corresponding period last year.

According to the State Bank, first quarterly report this rise was caused by a steep growth of 49.3 per cent in imports, which outstripped the 11.1 per cent export growth during this period.

In fact, the trade deficit had begun to widen significantly during the latter half of FY 2004, amidst a general rise in imports as economic activities accelerated, and international oil prices rose; approximately two thirds of the total FY20O4 imports were recorded in the last four months of the year.
This trend appears to be continuing into FY2005, with the July-Nov imports at 47.2 per cent of the $ 16.7 billion annual import target.

In particular, the oil import bill is abnormally high July-Now FY2005 due to very substantial growth in petroleum products imports (173.3 per cent). Nonetheless, the reliability of these import numbers cannot be authenticated due to the change in data reporting system.

In fact, this sharp jump in the import of oil products does not make sense either on the basis of elasticity estimates or historical trends of consumption, the report said.

Export performance, on the other hand, also raised a few concerns during this period. Country’ textile sector recorded 2.4 per cent rise during July-Nov FY2005 as compared to the 11.8 per cent growth during the same period last year.
This deceleration in this sector was caused by a sharp fall in two major categories namely: bed wear and synthetic textiles. This weakness in the performance of bed wear exports might be attributable to the imposition of anti dumping duty on this category by the EU and the embargo imposed by the US on bed wear exports in mid-November 2004 to check over-shipments in this category, the report added.
On the other hand, synthetic textile exports were affected by a significant rise in the price of polyester staple fiber due to rising international oil prices since April 2003, it said.

About the exchange rate and foreign exchange reserves the report said “the lower current account surplus, coupled with net retirement of FE-25 foreign currency loans and increased forward booking by the importers, squeezed the inter-bank forex market liquidity, and thus added to the pressure on the Rupee during Quarter First (Q1)-FY05.”

In fact, despite a significant SBP injections into the forex market during Jul-Oct 2004, the Rupee weakened by 5 per cent to reach Rs. 61.2/US$ by end-October 2004.

In fact, it was not until SBP formally announced by end-October 2004 that it will provide foreign exchange for imports of key commodities such as oil, wheat and fertilizers, and took administrative measures to discourage excessive speculation, that the Rupee recovered some of its losses.

Pakistan’s overall foreign exchange reserves scaled down by US$ 548.9 million during July-November 2004 to reach US$ 11,179.1 million at the end November 2004, the report said.

While SBP interventions in this period totaled US$ 724.2 million, SBP reserves fell only US$ 481 million because of additional inflows in the same period.
Moreover, reserves with commercial banks increased during this period due to both, incremental deposits as well as the retirement of FE-25 loans.


Malaysian businessmen call on PM

ISLAMABAD: A five-member Malaysian businessmen delegation lead by prominent businessman Vincent Tan met the Prime Minister Shaukat Aziz here at Prime Minister's house on Thursday.

The delegation is paying visit to explore the business and investment opportunities in Pakistan. They showed interest to invest in tourism and housing sectors in Pakistan.

While talking to the delegation Prime Minister said that government has provided a level playing field for investment and there is no restriction on the flow of capital. Economy of Pakistan, he said, was flourishing and due to the economic reforms and liberalization policies of the government the growth rate could reach at 7% instead of target of 6.4%. Agriculture, exports, foreign exchange reserves and all other economic indicators are showing upward trend, he added.

Prime Minister Shaukat Aziz said that Pakistan's economy was fastest growing economy and it provides lot of opportunities for investors.

The Malaysian delegation praised the economic policies of the government and said that Pakistani market was very attractive for the foreign investment and they were planning to invest at very large scale.

Prime Minister Shaukat Aziz said that government would facilitate the foreign investors by all means.

Foreign reserves reach at $11.962bn

KARACHI: The total liquid foreign reserves held by the country stood at $11962.9 million on January 1, 2005, said a release issued by the State Bank of Pakistan (SBP) here on Thursday.

Foreign reserves held by the SBP stood at $9185.3 million and net foreign reserves held by banks other than the SBP reached at $11962.9 million.

TeleCard gets WLL launch approval; Paktel to expand GSM coverage

KARACHI: TeleCard Limited is now officially Pakistan's first Wireless Local Loop (WLL) operator in the post-deregulation regime.

TeleCard, which has earned the reputation of being one of the most recognized and relied upon name in the telecommunications industry, has now been awarded with the commencement Certificate for the launch of its WLL service in the country.

TeleCard is now ready to offer the most advanced CDMA2000 Technology based wireless telephony service including voice, high-speed internet, SMS, voice mail service and long distance calling.

WLL ensures exceptional voice quality, seamless internet connectivity, and quick connection time without the hassle of wires and is available universally to all consumers.

The company has an existing nationwide WLL network and has recently upgraded its network for the effective deployment of its service in all of 14 telecom regions of Pakistan.

As the first company to reach this milestone, TeleCard is now poised to take the market by storm and augment Pakistan's overall tele-density. The company aims to become an alternate telecom service provider of choice for all home and business needs.

TeleCard provides calling facility to about 85 million Pakistanis nationally and help them to stay connected. TeleCard, with its team of dedicated professionals is fast positioning itself to become the leading telecom service provider in Pakistan.

Paktel to expand GSM coverage

Paktel cellular company will launch its GSM service simultaneously in Sadiqabad, Rahim Yar Khan, Dera Ghazi Khan and Bahawalpur towns from January 1, 2005.

Firm's field sales manager for Bahawalpur zone, Salman Haider told here that initially the Paktel GSM range would cover 20 square kilometres in Sadiqabad, Rahim Yar Khan and Dera Ghazi Khan and would be spread over 40 sq km in Bahawalpur.

He said it was expected that all areas of south Punjab would be provided the facility by March 2005.●

Pak offers level playing field to foreign investors
PM for use of bio-safety measures in agri sector

Islamabad—Prime Minister Shaukat Aziz Thursday directed the Food and Agriculture Ministry to adopt bio-safety measures in the agriculture sector to grow disease-free crops and boost the production.

The Bio-Safety Guidelines for Agriculture and Phar-maceutical Sector were discussed here at a high level meeting chaired by the Prime Minister.

The meeting was informed that bio-safety measures have been adopted in most of the countries of the world.

The countries like China, Egypt, Argentina, India and Malaysia have already adopted these measures to boost their agriculture production.

The Prime Minister directed that the Ministry of Environment should hold an international seminar in the second quarter of the current year to discuss the issue in detail and create public awareness on the subject.

The Ministry of Environment was also directed to prepare bio-safety rules for implementation.

Minister for Environment, Maj. ® Tahir Iqbal, Minister for Health Muhammad Nasir Khan, Secretary Agriculture and other senior officials attended the meeting.

Talking to a five-member Malaysian businessmen dele-gation led by prominent busin-essman Vincent Tan here at the Prime Minister house, Prime Minister said that government has provided level playing field for investment and there was no restriction on flow of capital from the country.

The delegation is in Pakistan to explore business and investment opportunities and have evinced keen interest in tourism and housing sectors.

Prime Minister said that Pakistan’s economy was growing at a fast pace providing many opportunities for the investors and assured that the foreign investors would be facilitated.

Shaukat Aziz said that country’s economy was flourishing and owing to the economic reforms and liberalization policies the growth rate was expected to rise to 7% against the target of 6.4%.

He said agriculture, exports, foreign exchange reserves and other economic indicators were also showing an upward trend.

The Malaysian delegation praised the economic policies of the government and said that Pakistani market was very attractive for the foreign investment and said that they were planning to invest on a large scale.They said that under the judicious leadership of President Musharraf and Prime Minister Shaukat Aziz the country would achieve its economic goals.

Govt to set-up Telecom University in Federal Capital

Islamabad—The government would establish a world-class Telecom University in Federal Capital to provide better research and development activities.

The decision has been taken in the backdrop of phenomenal expansion and tremendous growth of telecom sector of the country as a direct result of deregulation policy announced by the government, official sources told APP here Thursday.

The sources said Ministry of Information Technology is in process of hiring consultancy to develop the most optimal strategy for setting-up a Telecom University of international standard in Islamabad.

The sources said the cost of consultancy would be funded by the Pakistan Telecommunication Company Limited (PTCL) Research and Development Fund which possesses enough land to house a telecom university in the Capital.

“The setting up of a Telecom University would be an ideal project and we have the determination to make available all necessary resources to see a top-ranking university emerging in the capital in the next couple of years,” the sources added.

Answering a question, the sources said, there is an urgent need to enhance human resource base within the country that can take advantage of the telecom infrastructure.

Currently there were only a few national universities offering degree level courses in telecommunications and related engineering subjects. However, these suffer from the fact they are not research oriented, and are aimed more at producing engineers that can find jobs in telecom operations and other support functions.

When asked, the sources said, PTCL’s R&D fund was also providing financial assistance for carrying out research and development activity in a vast array of sectors and disciplines.

In Pakistan, the telecom and cellular sectors have witnessed a remarkable improvement during the last two years as the number of cellular phone and fixed line subscribers has reached about 8 million and 5 million with 5.15 per cent and 3.13 per cent teledensity respectively.

There were only 0.2 million mobile phone subscribers across the country in 1999, but with the introduction of various measures by the government sharp increase has been witnessed.

To meet growing demand in mobile and fixed line areas, the government has awarded a number of licenses to various new operators and these sectors would experience a wave of change this year when these new operators would start providing connections.

The number of cell phone subscribers is expected to reach 15 million during next two years.—APP

PTCL to introduce online customer facilitation system: Tanveer

KARACHI, January 07 (Online): Senior Executive Vice President Pakistan Telecommunication Company Operations Tanveer Ahmed announced Thursday that soon this company will introduce online customer facilitation system for provision of new telephone connections.
Chairing a high-level meeting here, he said PTCL would further ease the process of new telephone connection, shifting of existing telephones and innovative steps should be taken in this regard.

EVP Operations South Rehmatullah, Chief Engineer M&O ZA Tunio, General Managers, Khalil-ur-Rehman, Ghulam Rasul Mangi, Saeed Ahmed, Muhammad Hanif, Muzaffar Ali, Akhter Jameel and others were also present on the occasion.

Revenue targets, provision of new telephone-bills complaints at customer centres and new development projects were also discussed in the meeting.

European Commission grants Rs 47.20 million to DHA for waste management


ISLAMABAD (January 13 2005): The European Commission (EC) has announced 633,330 euro (Rs 47,119,752) grant for Defence Housing Authority (DHA), Karachi to improve waste management conditions creating problems for the residents. The project will benefit directly over 200,000 people living in the vicinity of the DHA Karachi. However, it will indirectly benefit, 15 million inhabitants of Karachi at large through the development of a strategic approach to municipal solid waste management at city level.

Particular attention will be paid to deprive and exclude groups of the community through the development of special education and training systems.

The project will be implemented by the DHA in collaboration with Kreis Minden-Luebbecke, of Germany and City San Pedro del Pinater of Spain (European partners).


Pakistan, Italy to boost trade

By Our Reporter


ISLAMABAD, Jan 18: Pakistan and Italy have agreed to collaborate in textiles, leather, marble and gems and jewellery sectors to enhance the volume of trade between the two countries.

The understanding was reached at separate meetings of Commerce Minister Humayun Akhtar Khan with Vice-Minister in-charge of External Trade, Adolfo Urso and National Security Adviser and Principal Foreign Policy Adviser to the Prime Minister, Giovanni Castellaneta.

An official announcement on Tuesday said the Italian minister agreed with the commerce minister that both the countries stood to gain by collaborating in textiles, leather, marble and gems & jewellery sectors and that there should be more interaction between enterprises of the two countries.

Mr Urso expressed his enthusiasm to visit Pakistan along with a delegation of businessmen and entrepreneurs in April this year to further bilateral trade ties. Mr Khan pointed out the highly vulnerable export base in Pakistan's economy and how important it was for the European Union to ensure the continuity of their understanding on the issue of market access.

Mr Urso assured Italy's unequivocal support to protect and promote the interests of Pakistan. With exports of $454 million and imports of $312.6 million (in 2003-04), Italy is Pakistan's 7th largest export destination and 15th largest source of imports.

Pakistan's exports to Italy, which stood at $209.27 million in 1999-2002, have doubled. The trade balance has been in favour of Pakistan since 1999-2000. Major exports to Italy are textile products, readymade garments, tanned leather, cotton yarn, carpets, synthetic textiles, sports goods and surgical instruments.

Major imports from Italy are iron and steel manufactures, machinery and parts, animal and vegetable fats and oil, medical and pharmaceutical products and chemical materials
http://www.dawn.com/2005/01/19/ebr10.htm

Pakistan has regained financial sovereignty, repeats Ishrat

LONDON: Dr Ishrat Husain, governor State Bank of Pakistan, has said the country has regained financial sovereignty following its economic turn around and assured expatriates economic reforms introduced in past five years are irreversible....(Cont)

http://www.dailytimes.com.pk/default...-1-2005_pg5_11

Iran to build car factory in Pakistan

TEHRAN (MNA) –- Iran is to build a car factory in Peshawar, the former capital of the Frontier Province in Pakistan.

Meanwhile, an auto part production company will be built near the car factory, said the Iranian consul in Peshawar, Mohammad Imani, in his meeting with head of the commerce chamber of tribal areas of Frontier Province. The two sides stressed on the development of ties between Iran and Pakistan as a key factor to maintaining political stability in the region.

http://www.mehrnews.ir/en/NewsDetail.aspx?NewsID=149189

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ADB praises economic growth, prudent policies of Pakistan

--Says country will achieve 8% annual growth target soon

ISLAMABAD Jan 19 : The Asian Development Bank says with the current trend of economic growth and prudent policies Pakistan will achieve the target of eight per cent annual growth soon.

This was stated by the Country Director of the Bank Mr. Marshuk Ali Shah while addressing a news conference in Islamabad on Wednesday.

He said Pakistan's medium term economic growth prospects are very good and if the process continued, long term prospects in the future will also be brightened which will help reduce poverty with fast speed.


To a question he said Pakistan is set to achieve higher production of cotton this year and there also are bright chances of achieving the wheat production target. The increase agriculture production will have good impact on the socio-economic conditions of the rural masses and will help dent poverty.


Marshuk Shah said Pakistan's economy is moving towards right direction and there is need to make more efforts to achieve high growth targets and sustain them. He said due to good economic performance, investment is coming in the country and industry is expanding which has helped bringing down unemployment during the last year.


To a question he said to sustain the growth rate special focus will have to be put on manufacturing, industry, livestock, horticulture and other sectors besides agriculture.


He said it is the first time in country's history that development expenditure have gone up and a huge amount is being spent in infrastructure development which will further help to give boost economy.


Asked Pakistan's imports have been risen up to fifty per cent, the Country Director of the ADB said industrial imports have increased significantly which is good omen and increase in imports shows that economy is going on and investment is coming in the country.


He however said that continuous rise in inflation is a matter of concern and it would have negative effects on poverty reduction efforts therefore government should take concrete steps to tackle the issue. He said inflation figures in December last year shows that it has gone down but sustained efforts are needed to control it.


Marshuk Ali said the feasibility study of Turkmenistan- Afghanistan-Pakistan gas pipeline has been completed and it will be presented in the Steering Committee meeting of the Bank being held next month. He said it is likelihood that the committee will approve the project and informed that a number of companies have expressed their interest to finance the project costing three billion dollars. He said Pakistan will have to expedite efforts on its part as according to surveys, it will be facing shortfall of natural gas by 2009.


Highlighting the ADB's contribution in Pakistan's economy he said the Bank will maintain and further strengthen the momentum of its strategic and operational interventions and activities in Pakistan in future.


He said the Bank has approved about eight hundred million dollars for eleven projects for the current year which aims at improving governance, education, access to justice, rural, agriculture and industrial development and poverty reduction. He said the Bank granted a loan of over seven million dollars to Pakistan for seven projects during the last while it will provide one point three billion dollars for various development programmes in 2006.

http://www.pakistanlink.com/Headlines/Jan05/19/13.htm

World Bank president apprised of economic performance

RECORDER REPORT

ISLAMABAD (February 08 2005): World Bank president James D. Wolfensohn called on advisor to prime minister on finance and revenue Dr Salman Shah here on Monday. The advisor apprised the World Bank president of the performance of the economy in the light of various reforms introduced by the government in fiscal, financial, administrative, institutional, agricultural, banking and governance areas. The poverty reduction strategy of the government was also discussed.

During the meeting, it was observed that reforms have started delivering the desired dividends and the macroeconomic indicators are gradually moving upwards.

The advisor asked the World Bank to support Pakistan in the development of infrastructure needs of the fast-growing economy including the energy sector.

He asked the World Bank to help Pakistan in developing and implementing a private sector development strategy that would enable the private sector to efficiently compete in the world markets and ensure achievement of 7-8 percent GDP growth target set by the Prime Minister.

Briefing the delegation about the signification process, Dr Salman Shah stated that Pakistan has overcome the macroeconomic challenges and its policies of privatisation, deregulation and liberalisation have worked very well.

All major banks have been privatised and 80 percent of banks are now with the private sector.

He said the State Bank of Pakistan was now fully autonomous. He said the government has deregulated the energy sector and the SECP has introduced transparency in corporate governance. He added that the CBR was now a business-friendly and transparent organisation.

According to the advisor, the GDP and flow of foreign direct investment (FDI) in Pakistan were maintaining upward trend and budgetary position and tax collection was improved.

He further said lowering of inflation has provided greater monetary flexibility and the interest rates of banks have been brought down from double digits to single digit, which has encouraged private investment.

Now we have strong external liquidity, which has led to exchange rates stability. As a result of confidence in the economy, remittances from overseas Pakistanis have increased manifold. Moody and S&P have upgraded the credit rating of Pakistan.

Replying to a question about corruption in Pakistan, the advisor pointed out that the higher-level corruption has been eliminated but at the middle-level Pakistan do has some problems.

The government was trying to overcome it by strengthening institutions and curtailment of discretionary powers of police and tax officials.

He said the government has introduced structural reforms in the CBR and simplified procedures by introducing self-assessment in income tax.

The World Bank delegation led by its president comprises Praful Patel, vice-president, South Asia region, Robert Floyd, assistant to Wolfensohn, John W. Wall, country director, Abid Hasan, operations advisor and Thomas Buckley, acting country co-ordinator. The meeting was also attended by minister of state for finance Omar Ayub, minister of state for economic affairs Hina Rabbani Khar, State Bank governor Dr Ishrat Husain, CBR chairman, secretaries of finance and economic affairs and other senior officers of the finance ministry.

Copyright Business Recorder, 2005

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Level playing field provided to investors: Prime Minister

ISLAMABAD (February 08 2005): Prime Minister Shaukat Aziz on Monday said Pakistan was providing level playing field to all investors and facilitating the private sector to play its role in economic growth. Talking to Simon Radolph, head of Asia Region Templeton Asset Management to Pakistan, Shaukat Aziz briefed him on the government's structural reforms and deregulation policies.

He said the continuity and sustainability of economic policies have made IT, telecom, oil and gas, power, agro-based industry and services sectors as potential areas for investment.

The manufacturing sector was growing rapidly, offering opportunities for more investment, the Prime Minister added.

Shaukat Aziz said Pakistan could serve as a hub for exports to Middle East, Central Asia and Africa because of its strategic location.

He also briefed Simon Radolph on the dialogue process with India for ensuring peace in the region. The Prime Minister said Pakistan as a peaceful country was striving for stability in the region so that it could focus on development and prosperity of the people.

The government, Shaukat Aziz said, was also focusing on agriculture sector to improve the living standard of the people of the rural areas and providing them basic amenities of life. This would not only boost the agricultural production but also provide quality raw material to agro-based industries, he added.

The Prime Minister said that over-subscription of Euro Bond last year and Sukuk Bonds early this year was a clear manifestation of the investors' growing confidence in Pakistan.

Simon Radolph while praising Pakistan's economic and fiscal policies said the country has earned credibility in the international capital market and won the confidence of investors.

Pakistan's economic reforms and deregulation policies were a model for other developing countries to emulate, he added.

Copyright Associated Press of Pakistan, 2005

EU duty-free GSP facility likely from April
M RAFIQ GORAYA

ISLAMABAD (February 08 2005): The European Union may give duty-free market access to Pakistani products under a new General System of Preferences (GSP) from April 2005, it is learnt. Sources said that Commerce Secretary Tasneem Noorani is leaving for Brussels on Tuesday, as his meeting with the European Union Commission Chairman has been fixed for Wednesday, to discuss the GSP for Pakistan, free access to European markets and other trade related matters.

They said that Noorani's visit to Brussels is a follow-up of Prime Minister Shaukat Aziz's visit to EU late last month where he had called upon the EU leaders that as a frontline coalition partner in fight against terrorism and drug trafficking Pakistan deserves EU's duty-free GSP facility for sustained economic development.

Commerce Minister Humayun Akhtar also visited the 25-member EU to lobby for the continuity of the GSP and withdrawal of 12 percent duty on Pakistani exports.

Sources said that the European Union remains Pakistan's largest trading partner, receiving about 30 percent of Pakistan's exports and providing 18 percent of its total imports.

Pakistan's trade with the EU is mainly composed of textiles, which account for over 68 percent of the total Pakistani exports to the EU, followed by leather products, which account for 13 percent of the total Pakistani exports.

Sources described EU's intentions to extend fresh GSP to Pakistan as a diplomatic achievement.

Copyright Business Recorder, 2005

Pakistan and Sri Lanka may sign FTA

RECORDER REPORT

ISLAMABAD (February 08 2005): Pakistan and Sri Lanka are likely to ink Free Trade Agreement (FTA) during the meeting of Sri Lankan President Chandrika Bandaranaike Kumaratunga with Prime Minister Shaukat Aziz here. The Sri Lankan President, who is currently on a visit to Pakistan, will also discuss economic and trade ties with the high officials. This would facilitate trade between the two countries on win-win basis after exchanging the negative lists of commodities on which both Sri Lanka and Pakistan have agreed before signing the FTA.

Signing of this agreement to facilitate bilateral free trade between the two countries was delayed due to high tariff on the import of certain items from both the sides.

According to Sri Lanka, Pakistan has imposed high duty on the import of betel nut and betel leaf which, for Pakistan, is an important source of revenue.

Pakistan on the other hand said Sri Lanka has levied high import duty on Pakistani onion, potato and rice.

Negotiations at diplomatic level and exchange of trade delegations contributed towards resolving thorny issues and these efforts paved the way for signing the agreement.

In parallel, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in past few months was also in contact with Sri Lankan importers and other stakeholders to help solve the issue.

Federation of Sri Lankan Chamber of Commerce and Industry and Ceylon Chamber of Commerce also viewed that trade with Pakistan was more viable as compared to India with respect to price and quality.

Copyright Business Recorder, 2005

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WTO regime: EU for special treatment to Pakistan

ISLAMABAD (February 08 2005): The State Minister for Commerce Hamid Yar Hiraj has called upon European Union (EU) to give special treatment to Pakistan in WTO regime due to his country's role as a frontline state at war on terror. He was speaking at the launching ceremony of six-day long training course "WTO and Pakistan - specific issues" organised by Azam Chaudhry Law Associates here on Monday.

The training course running till February 12 is being held to highlight implications of WTO regime on Pakistan. Representatives of leading organisations like Saudi Pak Investment, Pak Kuwait Fund, ZTBL, Millat Tractors, Muslim Commercial Bank, Pakistan Poverty Alleviation Fund (PPAF), Sarhad Rural Support Programme, Punjab Rural Support Programme, the ministry of industries, environment and commerce are attending the course.

The minister hoped that Pakistan will be allowed access to the new European Union (EU) generalised system of preferences (GSP) plus scheme-zero rate import duty keeping in view its strong commitment to war on terror. The scheme is likely to be effective from July 1, 2005. He appreciated Azam Chaudhry Law Associates initiative for organising the training course on WTO issues, which he added, was an ideal platform being established by private sector to educate the stakeholders about the implications of WTO regime on Pakistan.

Speaking on the occasion as a chief guest, the Deputy Director General WTO, Dr Kipkorir Aly Azad Rana explained WTO's agenda with July package. He was of the view that WTO offered both opportunities and challenges to developing countries. He said that training course like this would dispel apprehensions of Pakistani entrepreneurs about WTO regime and would help them develop the understanding of the situation.

Guest of honour, the EU Ambassador, Iikka Cusitalo said that Prime Minister Shaukat Aziz had successfully pleaded Pakistan's case during his recent visit to Europe. He held that European Union would support technical programmes for capacity building in Pakistan.

In his welcoming address, Dr Muhammad Azam Chaudhry, said that the importance of implications of WTO issues had pushed him to come up with such a platform so that Pakistani government officials and other stakeholders could be aptly educated and made ready to handle the issue properly on their respective fora.

He said that WTO provides a comprehensive approach to regulate the international trade. He said that any neglect or indifference on the part of Pakistan to the understanding of international rules would cause economic problems and will further increase poverty. Dr Chaudhry, with a PhD in International Law, was accorded the Knighthood by the French President in 2003. He specialises in corporate affairs and WTO matters. He has also served as legal advisor for the UNHCR in Geneva and World Tourism Organisation in Spain. He has also worked as chief of mission of UNHCR in Spain.

Prominent among those who also attended the launching ceremony was ambassadors to Pakistan from Mauritius and Kenya.-PR

Copyright Business Recorder, 2005

Pak-UK bilateral trade trend positive: High Commissioner

KARACHI (February 08 2005): The bilateral trade between Britain and Pakistan was now 850 million pounds per annum and the trend was "positive," noted British Deputy High Commissioner in Karachi and Director for Trade & Investment Hamish Daniel. He told a news conference here on Monday, along with members of visiting trade mission from Birmingham Chamber of Commerce & Industry. He said during January-September 2004, British companies exported goods worth 234 million pounds to Pakistan, showing growth of 9.6 percent over same period last year, major of them being specialised industrial and power generation machinery, telecom, broadcasting equipment, chemicals, pharmaceuticals, medical products.

Pakistani companies exported products worth 423 million pounds, 6.3 percent higher as compared with the same period in 2003, he added. Major of these were textiles, yarn, fabric, garments, towels, bedding, rice, leather and leather products, carpets, fruits.

Daniel said a total of 77 UK companies including major players Unilever, Shell, BP, Glaxo SmithKline, Standard Chartered Bank, National Power, British American Tobacco and ICI were operating in Pakistan.

UK's development assistance to Pakistan during the fiscal year 2004-05 was 69.8 million pounds.

He said Birmingham Chamber of Commerce was fifth trade delegation visiting Pakistan since September 2004. For Expo Pakistan Exhibition 2005 in Karachi, two separate delegations from Glasgow City Council and Pakistan Britain Trade & Investment visited.

Speaking on the occasion, David Frost leader of Birmingham Chamber of Commerce said British businesses have continued interest in Pakistan market. Birmingham was the oldest and largest Chamber of Commerce in the UK located in heartland of the country. He said members of his trade mission were having talks with Pakistani counterparts to seek potential for developing a partnership.

They were active in variety of businesses - baby accessories, gift items, education, IT training, security services, exports consultancy, financial products, machine tools and promotion of performing arts, he added.

Copyright Pakistan Press International, 2005

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Pak-UK bilateral trade trend positive: High Commissioner

KARACHI (February 08 2005): The bilateral trade between Britain and Pakistan was now 850 million pounds per annum and the trend was "positive," noted British Deputy High Commissioner in Karachi and Director for Trade & Investment Hamish Daniel. He told a news conference here on Monday, along with members of visiting trade mission from Birmingham Chamber of Commerce & Industry. He said during January-September 2004, British companies exported goods worth 234 million pounds to Pakistan, showing growth of 9.6 percent over same period last year, major of them being specialised industrial and power generation machinery, telecom, broadcasting equipment, chemicals, pharmaceuticals, medical products.

Pakistani companies exported products worth 423 million pounds, 6.3 percent higher as compared with the same period in 2003, he added. Major of these were textiles, yarn, fabric, garments, towels, bedding, rice, leather and leather products, carpets, fruits.

Daniel said a total of 77 UK companies including major players Unilever, Shell, BP, Glaxo SmithKline, Standard Chartered Bank, National Power, British American Tobacco and ICI were operating in Pakistan.

UK's development assistance to Pakistan during the fiscal year 2004-05 was 69.8 million pounds.

He said Birmingham Chamber of Commerce was fifth trade delegation visiting Pakistan since September 2004. For Expo Pakistan Exhibition 2005 in Karachi, two separate delegations from Glasgow City Council and Pakistan Britain Trade & Investment visited.

Speaking on the occasion, David Frost leader of Birmingham Chamber of Commerce said British businesses have continued interest in Pakistan market. Birmingham was the oldest and largest Chamber of Commerce in the UK located in heartland of the country. He said members of his trade mission were having talks with Pakistani counterparts to seek potential for developing a partnership.

They were active in variety of businesses - baby accessories, gift items, education, IT training, security services, exports consultancy, financial products, machine tools and promotion of performing arts, he added.

Copyright Pakistan Press International, 2005

'Potential to boost Pak-China trade, economic ties'

RECORDER REPORT

RAWALPINDI (February 08 2005): Chinese government is giving full incentives to industrialists of the country to meet the challenges emerging after enactment of the World Trade Organisation (WTO), said Suleman Nagri, a member of the Chinese trade delegation here on Monday. "It is imperative for the governments of the developing countries to support their industrial sector with special stress on small and medium enterprises (SMEs) if they want to remain in international competition", he said while talking to Business Recorder.

Suleman Nagri, a Kashmiri origin Chinese businessman dealing in gems and precious stones and export and import business, is on a visit to Pakistan to explore Pakistani market. He has set up his business in Urumqi, the capital of Xing-Jiang a Muslim majority province of China. Xing-Jiang population is 390 million with 66 percent Muslims.

He was of the view that Pakistani industrialist, exporters and investors have lot of opportunities in Chinese market particularly in the field of electronics, toys, blankets, crockery, automobile and auto-parts. They must avails the benefits of incentives being given by Chinese government for industrial growth, he said.

Nagri said that Chinese government is providing free electricity to the industrialists and manufacturers of the export quality products. Raw material and manpower is very cheap while duty on import of raw material and machinery is very low, he said adding that these incentives by the government are making Chinese products cost effective and viable to compete in the international market.

He said that the tax system and bank financing is very easy and businessmen friendly. "Every businessman is feeling comfortable in market as he would have to get all facilities by the government", he added.

Chinese trader said that Pakistani exporters have to work in the fields of pottery, textiles, bedsheets, gem stones, minerals, dates, fruits particularly mango and milk products including cream.

Chinese products are very cheap and of better quality and it is an opportunity for Pakistani businessmen to get their products from China on cheaper rates than other countries, he said and added "We are too close and have road links which would help us to decrease the carriage cost".

He said that there are lot of potential to increase trade and economic relations of Pakistan and China and it depends upon governments and business community of the both sides to get benefits from the experiences of each other.

Talking on the political atmosphere in Xing-Jiang, a Muslim majority province of China, Suleman Nagri said that Muslims are enjoying complete freedom of religion and religious activities. Government is providing all possible facilities to people without any discrimination of religion.

He invited Pakistani business community to visit the industries in Urumqi and explore new vistas of investment and trade there.

Copyright Business Recorder, 2005

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Industrial growth rises by 17.12 percent in six months

ISLAMABAD (February 08 2005): The industrial sector growth has increased by 17.12 percent during first six months of the current fiscal as compared to the same period last year. According to the official sources, out of major 39 industrial items, 27 registered handsome increase in the production while 12 showed minor decrease in their production during July-December 2004-05.

According to a data collected by the Ministry of Industries and Production, the production of sugar increased by 18.56 percent, cigarette increased by 7.33 percent, cotton cloth 21.81 percent, cotton cloth (non-mill sector) 15.62 percent, cotton yarn 7.48 percent, jute goods 0.84 percent, paper and board 1.52 percent, fertiliser 2.45 percent, soda ash 3.04 percent, caustic soda 11.80 percent, glass sheet 11.28 percent, cement 21.38 percent, motor tyres 23.42 percent, motor tubes 6.96 percent and coke 1.41 percent.

The production of auto sector was also very encouraging that increased by 29.33 percent during first six months of the current fiscal. The production of cars increased from 44,050 to 56,847 cars, light commercial vehicles from 5,779 to 9,387, buses from 645 to 906, tractors from 16,436 to 21,319, motorcycles from 148,129 to 219,935,jeeps from 383 to 616 and trucks from 946 to 992 in July to December.

The production of sacking decreased in the first six month of the current fiscal by 7.07 percent as compared to the corresponding period last year. The production of iron and steel products was 1,199,003 million tons in July-December 2003-04, which fell down to 1,126,356 in July-December 2004-05. The production of printing paper, packing paper and chipboard and some products of fertiliser also decreased during the period July-December 2004-05.

Following the instructions of the Federal Minister for Industries and Production and Special Initiatives, the Ministry is making and considering incentives and exemptions for industry to encourage and attract the investment to benefit the industrial sector.

Copyright Associated Press of Pakistan, 2005

Saudis keen to invest in various sectors

RECORDER REPORT

ISLAMABAD (February 09 2005): A group of 40 Saudi investors has shown interest to invest in telecom, information technology, power generation, hydel power project, housing, livestock, food processing, agriculture, floriculture and dairy farm besides joint ventures with Pakistani businessmen. Saudi investors met Pakistani businessmen at a local hotel for two hours and discussed new avenues for joint ventures in addition to areas of individual investment, said an official close to the Saudi delegation.

Matters pertaining to bilateral investment were also discussed between Commerce Minister Humayun Akhtar and visiting Saudi Commerce Minister Dr Hashim A Yemni at a meeting in Commerce Ministry.

Humayun apprised his Saudi counterpart that Pakistani businessmen were still facing hurdles in getting visas, and urged him to remove restrictions immediately.

Both Minister also co-chaired the Joint Ministerial Commission (JMC) wherein Humayun said that Pakistan was providing maximum facilities to foreign investors, adding that regulatory regime was continuously being made business-friendly. "Restrictions on investment are at a minimum and hardly any official sanctions or permissions are required for trading and investment operations by foreigners," he said.

He said that goods and service sectors were open for participation by non-Pakistanis. The regulations for inflow of capital and repatriation of proceeds are also very liberal.

He said that the government has been consistently liberalising its trade and investment regime so that Pakistan's trade and investment regime could be considered as one of the most liberal in the region at the present time.

Khan said that this was an excellent time to invest in Pakistan especially in value-added textile sector, fruit and vegetable processing, and engineering sector especially in European model small cars and tractors, renewable energy, petrochemical, shrimp farming and construction sectors.

Buyer-driven FDI especially finds large opportunity in Pakistan in both traditional and core sectors such as textile and clothing, rice, leather footwear, surgical and sports goods as well as in new categories such as shrimp farming horticulture (flowers, fruits and vegetable), marble and granite, furniture, gems and jewellery and electro-medical equipment. Re-location of industries in these sectors via a policy decision has been made highly favourable, especially for relocation of industries from abroad.

Copyright Business Recorder, 2005

FTA to boost Pak-Sri Lanka economic co-operation: Kumaratunga meets Musharraf

ISLAMABAD (February 09 2005): Pakistan and Sri Lanka on Tuesday expressed the hope that coming into operation of Free Trade Agreement (FTA) between the two countries would open a new era of trade and economic co-operation to their mutual benefit. 0President General Pervez Musharraf and visiting Sri Lankan counterpart Chandrika Kumaratunga told newsmen after formal talks that both the South Asian countries stand to gain enormously from bilateral free trade.

"The FTA will impart a tremendous boost to our economic and commercial ties, we will identify areas for developing greater economic co-operation, this will certainly be beneficial for both," President Musharraf said at Aiwan-e-Sadr.

The Sri Lankan leader reciprocated his views, emphasising that Colombo sees FTA with Pakistan as a major development in its relations and believes that it would take its bilateral trade to higher level.

President Musharraf expressed Pakistan's dismay and disappointment over the postponement of the 13th Saarc Summit.

Pakistan believes that we need to inject more seriousness into Saarc, which is for the benefit of all South Asian countries. Postponement of summits does not augur well for the effectiveness of this organisation," he said.

He suggested that there should be some formulations where no postponements are possible, saying all the member countries should work collectively to decide about it.

"If somebody does not want to attend, they should not, the others should attend - why should any one country have the onus of postponing or scuttling the whole meeting.

"We feel that because of the frequency of postponements we have been over the last few years, we need to collectively decide on what course needs to be taken, so that such postponements do not occur in future."

In her remarks, President Kumaratunga expressed the hope that new dates for the Saarc Summit would soon be worked out and the regional body would move forward for the economic well-being of the South Asian nations.

Referring to peace process between Pakistan and India, she said, improvement in their bilateral relations would augur well for regional economic co-operation.

The Sri Lankan leader commended President Musharraf's efforts for establishment of peace in the region.

"We would like to commend very sincerely President Musharraf's efforts at resolving the burning issue of region, that is issue of Kashmir between India and Pakistan."

She also lauded Pakistan's key role in the fight against terrorism.

"We too have been facing this problem in our country and making efforts for peace. At the moment the cease-fire is holding between rebels and the government.

"We wish President Musharraf and Pakistan success in their counter-terrorism drive."

President Musharraf also briefed the visiting leader about Pakistan-India peace process and the composite dialogue.

"Our efforts move in tandem on the confidence-building measures and the dialogue process going on between both the countries.

"Pakistan is very serious in moving forward on the betterment of relations between India and Pakistan so that the entire South Asian region benefits from it through the resolution of disputes to the mutual benefit of the people of the region," President Musharraf said.

Both the leaders said the two countries enjoyed excellent relations in political field and the area of defence co-operation. President Musharraf expressed the hope that Kumaratunga's visit would further deepen bilateral ties.

The Sri Lankan president thanked the government and the people of Pakistan for extending immediate help for tsunami victims.

Pakistan's relief assistance was greatly helpful in overcoming the initial difficulties, she said, while appreciating Pakistan's rapid response to the Sri Lankan suffering, she said.

President Musharraf assured the visiting leader of Pakistan's continued support to Sri Lanka and expressed grief and sorrow over the tsunami tragedy.

Meanwhile, Commerce Minister Humayun Akhtar and Sri Lankan President Chandrika Kumaratunga discussed bilateral trade relations, including Free Trade Agreement and agreed to strengthen these in the days to come.

Holding of a single country exhibition in Sri Lanka also came under discussion.

He said the visit of the Sri Lankan president was an historic event and both the countries would exchange diplomatic notes to initiate a bilateral Free Trade Agreement (FTA). This would be the first FTA of Pakistan with any country.

He said the FTA was the beginning of deeper economic and commercial relations with Sri Lanka and would take this process further by undertaking negotiations on trade in services and investment.

The commerce minister proposed single country exhibitions after operationalising the FTA.

The Sri Lankan president welcomed the proposal and assured co-operation to Pakistan in holding the single country exhibition in Sri Lanka.

Kumaratunga invited Humayun to visit Sri Lanka to further strengthen the existing trade relations.

Both the sides agreed to increase trade relations to their maximum potential.

Copyright Associated Press of Pakistan, 2005

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'Pakistan poised to be a major player in world trade'

RECORDER REPORT

KARACHI (February 09 2005): Dr Mirza Ikhtiar Baig, Chairman, Site Association of Industry (SAI), has said that Pakistan is today poised to be a prominent player in the world trade regimen. "Textile is and would continue to be our backbone and we must ensure that our nation's exposure in textiles, which provide 67 percent of our export revenue, 40 percent employment, and nearly 10 percent of GDP, is enhanced." As per SAI communication, he said this at a meeting of 21st Century Business and Economic Club on Monday night, held to congratulate him on his unopposed election as SAI chairman.

Introducing his vision for the association for the coming days, he said that considering the new global trade realities, taking into account the accepted clout of SAI in the economic prosperity of Pakistan, and taking cognisance of the importance of maintaining closer liaison with the members, he had prepared an agenda and called it as 'Agenda Outreach'.

This manifesto would centre on specified macro objectives which could be classified into the three main considerations, which he highlighted, one by one.

In order to compete on their terms and to expand their declared niche, he said, "we have to struggle for building on our physical infrastructure on a fast track. Pakistan power rates are backbreaking and there is always this Damocles sword of power outages and load-shedding on us.

Water is a scare commodity for our area. Nepra, Ogra OCAC and their ilk have assumed demonic powers on our industries."

He criticised the increase in gas prices for industrial consumers from existing Rs 182.09 to Rs 197.11 per MMBTU.

He said OCAC is bent upon sending negative signals to foreign investors by raising petroleum products prices on the very day of inauguration of Export-Pakistan 2005 by President Pervez Musharraf himself.

On 'Agenda Outreach', he said that he is also contemplating the modalities of setting in motion the program to undertake foreign tours for delegations of Site industrialists to market their products, for promoting their goods and for attracting investment in Site area.

Copyright Business Recorder, 2005

LCCI and Glasgow Council sign MoU for trade promotion

RECORDER REPORT

LAHORE (February 09 2005): The Lahore Chamber of Commerce and Industry (LCCI) and the Glasgow City Council (GCC) on Tuesday signed a memorandum of understanding (MoU), which would cover a wide spectrum of trade areas, including information technology (IT) and textiles between the two sides. The Glasgow delegation, led by Hanzala Malik, comprised businessmen belonging to various sectors. Speaking on the occasion, LCCI President Mian Misbah-ur-Rehman urged the Glasgow-based businessmen to come forward and join hands with their Pakistani counterparts for launching joint ventures in the fields of information technology, telecommunications, infrastructure, education, and food preservation.

He said the LCCI is planning to hold a single country exhibition of Pakistani products in Glasgow during April-May in a bid to apprise the foreign buyers about quality of Pakistani products.

He averred that Pakistan, which is now on road to economic stability, needs a positive response of foreign investors to prove its worth as an attractive investment destination.

The LCCI chief said the development of Gwadar deep-sea port and industrial estates all over the country would provide best possible infrastructure facilities to foreign investors, adding that road and rail linkages to neighbouring countries are added advantages, which cannot be ignored as far as global businesses are concerned.

He said that trade between Pakistan and United Kingdom needs more concerted efforts and this should be from both the sides. "With the introduction of new investment policy, the foreign investors are allowed to hold 100 percent equity of industrial projects without any permission of the government. Therefore, it is high time for the foreign investors to take advantage of business-friendly policies of the present government", he added.

Earlier, speaking on the occasion, Glasgow delegation chief Hanzala Malik said that process of globalisation is bringing the people closer, and there is a need to learn from the experiences of each other, adding that only because of Pakistan's economic stability, the Glasgow-based industrialists have decided to visit Pakistan and avail the existing opportunities.

LCCI senior Vice-President Sohail Lashari briefed the delegation members about the chamber's working and the business atmosphere prevailing in Pakistan, which is conducive. He stressed the need for removal of barriers coming in the way of economic co-operation between the two countries.

LCCI Vice-President Sheikh Mohammad Arshad said there are a lot of opportunities waiting for the potential investors particularly in the field of textiles and leather, adding that Pakistan's economy has taken a positive turn, and made significant progress over the last five years.

He said the increase in total foreign private investment is enough to prove that Pakistan has a lot to offer, hence the foreign investors should take advantage of the situation.

Copyright Business Recorder, 2005


Pakistan Forum-Ceylon Chamber MoU signing today

RECORDETR REPORT

KARACHI (February 09 2005): Majyd Aziz, Founder-Chairman of Pakistan-Sri Lanka Business Forum, said on Tuesday that Sri Lankan President Chandrika Bandaranaike Kumaratunga would witness the signing of the Memorandum of Understanding (MoU) between the Forum and Sri Lankan Business Council of Ceylon Chamber of Commerce in Islamabad on Wednesday. He said that Abdul Rauf Tabani, Vice-Chairman of Aero Asia and President of the Forum, and P D Rodrigo, Vice-Chairman of the Ceylon Chamber, would ink the MOU on behalf of their organisations.

He said that the Sri Lankan President would address the gathering and the Forum members would be presenting Pakistani'sbusiness community's viewpoint for her consideration.

Majyd said that the Forum has been established on the initiative of Sri Lankan High Commissioner, General Srilal Weerasooriya, and would be the exclusive bilateral entity that would be recognised by the government and the trade organisations of Sri Lanka.

The Forum would have as members both Pakistani enterprises and Sri Lankans involved in trade and industry in Pakistan.

He said that the signing of the Free Trade Agreement (FTA) between the two countries and the opportunities which would ensue from it would bring a new phase of bilateral trade that would further strengthen and establish the trade contacts and would have an immediate salutary effect on the bilateral trade figures.

In a communication, he said that the present two-way trade is only 146 million dollars and that this does not reflect the true potential of trade between the two countries.

He said that the FTA, the MOU, and the functioning of the Forum, would herald a substantial enhancement in bilateral trade.

He added that many Pakistani entrepreneurs are interested in undertaking mega construction projects, setting up pharmaceutical factories, initiating information technology joint ventures, and providing excellent fabrics to Sri Lanka. Pakistan is also interested in increasing import of tea from Sri Lanka.

Majyd said that prominent members of the Forum are Aziz Memon of Kings Group, M. I. Akbar of Akbar Group, Tony Talayaratne of Sri Lankan Airlines, Rashid Soorty of Soorty Group, Zubair Motiwala of Diamond Group, Yasin Malik of Hilton Pharmaceuticals, Tahir Khaliq of UDL Group, Saqib Bilwani of Gani &Tayyab Group, Amir Bashir of Season Oil, Khurram Kalia of Kalsoft, Yasin Siddiq of Premium Textiles, Naeem Warind of Warind Group, Nasser Kamal of General Tyres, Farid Aidrus of Unilever, Captain Mushtaq of Seatrade Group and others.

He said that the High Commissioner of Sri Lanka would be the Patron -in- Chief while the Consul General and the two Honorary Consuls would be Patrons. The Head Office would be at Sri Lankan Consulate General in Karachi.

Copyright Business Recorder, 2005


Trade ties with Turkey to be enhanced

NAVEED SIDDIQUI

ISLAMABAD (February 09 2005): Pakistan and Turkey both are not satisfied with the existing trade volume between the two countries and agreed to enhance bilateral business ties in the fields of industries, food, textile, telecommunication and education.

Pakistan has also proposed establishing regular relationship through signing MoUs between Islamabad Chamber of Commerce and Turkish trade bodies to promote trade relations. These views came during a visit of 53-member Turkish trade delegation to the Islamabad Chamber of Commerce ad Industry (ICCI) here on Tuesday.

Education Minister of Turkey Erdal Gurr led the trade delegation comprising the industrialists of SME sector in Qaisaria Industrial City, some 330 km from capital Ankara.

Speaking on the occasion, head of the Turkish delegation told the Islamabad traders and businessmen that Qaiseria is a key industrial zone in the country, which houses at least 750 small and medium entrepreneurs (SMEs) besides having at least 300 exporting sites.

Erdal Gurr has announced expansion of Pak-Turk Friendship school network to other parts of the country apart from Islamabad where at least three educational institutions had been operating to provide education to the needy people.

He further added, "our industrialists are attracted by the Expo-2005 at Karachi and will invest in many sectors, bringing the Pak-Turk friendship into a reality.

Turkey has trade volume of $160 billion with other countries of the world and Pakistan however, sought that trade links should be further improved up to at least 1 percent share of the Turkey's total trade. It may be mentioned here that the total trade between Pakistan and Turkey during the year 2003-2004 was in the range of US $300 million. This includes Pakistan's exports amounting to US $219 million and imports to US $78 million, leaving the balance of trade in favour of Pakistan.

The major commodities exported by Pakistan included cotton fabric, cotton yarns, chemical's hides and skins, sports goods etc.

The major imports from Turkey have included crude minerals, vegetable fats and oils, chemical materials, tyres and tubes, iron and steel, machinery and parts. The volume of trade during 2003-2004 has shown increase over the previous two years.

Welcoming the guests, ICCI President Tahir Sadiq said that both Pakistan and Turkey have great business potential, which is needed to be exploited to further promote trade and investment opportunities.

Recently in telecommunication sector Telnor and Al-Warid have made huge foreign investment. In power sector, a Turkish power plant manufacturing company "Palment" has offered huge investment in setting up power generation plant and development of infrastructure in Pakistan and has also shown interest to make investment in hydel sector, he added.

Tahir Sadiq said: "Investment relations between private sector of Pakistan and ECO countries are far below the existing potential."

Pakistan has tremendous potential and opportunities in almost every sector, especially in power, oil and gas, SMEs, mining and minerals, infrastructure, construction, agriculture, agro-based industries, food and fruits processing, packaging, tourism, engineering goods, IT, telecom and textile, which Turkish companies can avail, he remarked. ICCI president also proposed to organise Pakistan-Turkey trade fairs in both the countries to boost economic activity.

On behalf of Islamabad Chamber of Commerce and Industry, traders community has offered to set up a chemical laboratory for fruits and vegetables analysis in Istanbul and the samples have to be sent to Ankara for analysis, which is a hurdle in export of fruits, like mangoes, through Istanbul, which is a hub of commercial activity.

Copyright Business Recorder, 2005

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Pakistan’s GDP set to touch $100b

LAHORE, Feb 14 : The Gross Domestic Product (GDP) is all set to touch $100 billion mark by June 2005 after explicitly achieving unexpected above- the- target growth in the national economy during this fiscal year.

In 2003-04, the size of GDP stood at $95 billion, which is now poised to hit $100 billion at the end of this financial year as domestic industrial production, services sectors and agriculture, especially cotton are depicting impressive growth in 2004-05.

Economic Adviser to Finance Ministry Dr Ashfaque H. Khan said while talking to reporters.

By June 2005, the size of services sectors is expected to expand to $50 billion, agriculture $23 billion, industries $18 billion while remaining sectors’ worth in overall GDP is being seen at $9 billion, he said.

Dr Khan said that above- the- target tax revenue collection during July-December 2004-05, impressive growth in foreign trade, inflow of remittances, foreign investment, external assistance, domestic industrial production, banks massive lending to private sector, improved profitability of the corporate sector and overall expansion of private sector are jacking up the GDP size to the highest level.

The Economic Adviser further said that in the current budget the Federal government had projected 6.4 per cent target of growth in the GDP, but the current trend of continued improvement in key economic indicators show that the GDP growth could settle between 7 to 8 per cent in 2004-05.

After observing trend of economic growth in first six months of this fiscal the multilateral donor agencies have already informed the Federal government about above the target growth of GDP in the current financial year.

The inflow of foreign assistance in this fiscal has also increased to $1.4 billion in July to December as compared to $493 million inflow during the same period last fiscal.

Meanwhile, Pakistan has received $1.946 billion remittances in first half of this fiscal as against $1.874 billion in the corresponding period of previous fiscal.

Foreign trade of Pakistan has also increased to $16.257 billion in July-December this fiscal, showing a hefty increase of $3.881 billion when matched with $12.375 billion total foreign trade in July-December last financial year. National exports have improved to $7 billion, compared to $6.1 billion during the period under review while imports have settled at $9.257 billion vis-_-vis $6.267 billion in the same period in previous budgetary year.

Domestic banks lending to private sector also set a new precedent in 2004-05. According to latest State Bank report, in July 2004 to January 29, 2005, the banks have provided Rs 290.50 billion credit to the private sector as against Rs 214 billion credit given in the same period of last fiscal.

The State Bank of Pakistan earlier set Rs 250 billion credit plan for the private sector for 2004-05, but the central bank had to enhance it to Rs 350 billion when the actual lending exceeded the annual target in just seven months.

During the past couple of years the national economy is showing rapid expansion. In 2002-03 the GDP growth stood at 5.1 per cent which further surged to 6.4 per cent in 2003-04 and is expected to boost around 7-8 per cent of the GDP at the end of this
financial year.

http://www.pakistanlink.com/Headlines/Feb05/14/10.htm

United States, Pakistan Open Bilateral Investment Treaty Talks

United States of AmericaFeb. 14 2005

Press Release - U.S. Dept. of State

The United States and Pakistan held their first round of negotiations for a Bilateral Investment Treaty (BIT) in London February 7-10, according to a State Department media note February 11.

The two delegations plan to meet for a second round of talks in Pakistan in the spring, the note said.

A BIT has three basic aims:

-- Protect investment abroad in those countries where investors' rights are not already protected through existing agreements, such as modern treaties of friendship, commerce and navigation or Free Trade Agreements.

-- Encourage the adoption of market-oriented domestic policies that treat private investment in an open, transparent and nondiscriminatory way.

-- Support the development of international law standards consistent with these objectives.

The United States has signed BITs with 47 countries.
http://www.harolddoan.com/modules.ph...rticle&sid=878

Pakistan, Sudan to finalise economic cooperation agreement

Wednesday February 16th, 2005 03:13.

The second round of talks for an agreement between Pakistan and Sudan, which helps avoid double taxation and ensures cooperation in eliminating tax evasion, will be held in Khartoum in the first week of March, an official told Daily Times.

The Central Board of Revenue is sending Muhammad Fayyaz Khan, income tax policy chief, and Muhammad Riaz, international taxes policy secretary, to Sudan by the end of February.

The first round of bilateral talks was held at Islamabad last year and it was decided then that a second round would take place to finalise the proposed agreement between the two countries.

The agreement will cover many areas of economic activity to be initiated by the private sector as well as the public sector in both countries.

Under the proposed agreement, income from any transaction will taxed at the country where it was actually completed and an equal amount of tax credit will be available to the home country receiving the transaction amount.

Both countries will cooperate to eliminate tax evasion.

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Government striving for investment-friendly atmosphere: Shaukat

LAHORE (February 17 2005): The Prime Minister, Shaukat Aziz has said that the government is focussing on good governance and political stability to create business and investment-friendly atmosphere. He stated this, while talking to a 16-member LCCI delegation at Prime Minister House, says a spokesman of the LCCI here on Wednesday. LCCI President Mian Misbah-ur-Rehman led the delegation. Other members of the delegation were SVP Sohail Lashari, VP Sheikh Muhammad Arshad, former FPCCI president Iftikhar Ali Malik, former LCCI chief Sheikh Muhammad Asif and members of the executive committee of the chamber.

Various important issues being faced by the business community were taken up during the meeting, which continued for well over an hour. The Prime Minister assured the delegation of his full co-operation in early solution of all the issues.

Shaukat said that there was a need to make Pakistan a business-friendly state and added that he wished businessmen in Pakistan had all the facilities and a good environment. He averred that the globalisation has posed new challenges and complexities to the business community and to cope with these challenges, the government is doing all what it can and would continue its endeavours at national, regional and international levels.

He said that he has directed the concerned ministry to give due weightage to the proposals of all the chambers while preparing forthcoming federal budget. He asked the chambers of commerce and industry (CCI) to send all its proposals to the finance ministry.

He was of the view that establishment of industrial estates in various parts of the country is enough to prove sincerity of the government towards the well being of business community and creation of business-friendly atmosphere in the country. He urged the delegation members to help the government in putting the economy on right track, as no country could move forward without the co-operation of business community.

The LCCI Chief, Mian Misbah-ur-Rehman, on this occasion presented a cheque of Rs 10 million to the Prime Minister for tsunami and snow/rain affected people of the country.

While lauding the efforts of Prime Minister towards betterment of the business community, he said that the present government has realised the importance of business community and is taking all necessary measures for redressal of their genuine concerns.

He stressed the need for expediting the process of industrialisation in the country, as it is the only way to cope with poverty and the problem of unemployment. Appreciating the Prime Minister for signing free trade agreement (FTA) with Sri Lanka, he called for signing such agreements with other countries in the larger interest of Pakistan's economy.

Sohail Lashari and Sheikh Muhammad Arshad also lauded the efforts of Prime Minister for the economic revival of the country.


Pakistan, Tunisia Set To Boost Trade Ties


ISLAMABAD, Feb 23 Asia Pulse - Pakistan and Tunisia enjoy excellent political and diplomatic relations but their trade is not matching to it.

"Bilateral trade between Pakistan and Tunisia is only $40 million and there is tremendous potential for boosting trade relations for the benefit of the two countries", said charge d'affaires of Tunisia in Pakistan Muhammad Ben Salah.

He said in the next half of 2005, one Pakistan exhibition will be held in Tunisia. This, he said, would help boost trade relations between the two countries.

The envoy appreciated the economic policies initiated by Pakistan and said businessmen of the two countries could take opportunity for enhancing bilateral trade. " Tunisia can export dates, fertilizer for agriculture and olive oils to Pakistan", he said.

Pakistan

By OGJ editors

HOUSTON, Feb. 23 -- International Sovereign Energy Corp., Vancouver, BC, may develop fractured Paleocene and Eocene carbonates in Toot oil field near Islamabad in the Potwar basin on a farmout from state Oil & Gas Development Co. Ltd.

Toot produces light oil from Jurassic Datta at 4,500 m, where 17 wells were drilled in 1964-86. Light oil potential exists in the carbonate sequences of the Sakesar, Patala, and Chorgali formations at 4,150 m (OGJ, Jan. 10, 2000, p. 57). The concession covers 122.67 sq km.

The first stage calls for a geological, geophysical, and petrophysical study of the carbonates and a fracture analysis of other nearby fields. Development would occur in later stages by well re-entries or new drilling with International Sovereign as operator.

An analogous field in the same region came on production in 1990 and produced more than 12 million bbl of light oil and 11 bcf of gas in 10 years from two wells still on production today.

NCHD gets $6.5m donation

ISLAMABAD: The Bill and Melinda Gates Foundation has donated US$ 6.5 million to the National Commission for Human Development (NCHD) in Pakistan for the Primary Health Programme.

“We are very pleased to support the National Commission for Human Development’s efforts to improve rural health in Pakistan,” said Dr David Fleming, director for global health strategies in Bill and Melinda Gates Foundation. Sources said three major projects would be carried out with the grant. They said under the National Oral Rehydration Solution (Nimkol) Project, 6.75 million mothers in 45 districts in the country would be trained to make and administer a simple but effective remedy that could prevent child deaths from diarrhoea. online

daily times

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