Pakistan: Economic Progress - Page 6

sibgakhan · #51 Monday, January 16, 2006

Pakistan Telecom Act to be amended

SOHAIL SARFRAZ

ISLAMABAD (March 31 2004): The government has decided to amend Pakistan Telecommunication (Re-organisation) Act, 1996 (Act XVII of 1996) to promote competitive environment making Telecom Deregulation Policy investment-friendly.

Sources told Business Recorder here on Tuesday that the Ministry of Information Technology has prepared a summary for the cabinet to amend the act.

The draft of the summary has been dispatched to various government organisations for their comments before submitting to the cabinet for approval.

According to details, Pakistan Telecommunication (Re-organisation) Act was enacted on October 17, 1996. Since then there have been a number of developments including the end to monopoly of Pakistan Telecommunication Company Limited (PTCL) over voice communication after January 1, 2003, creation of Pakistan Electronic Media Regulatory Authority (Pemra), growth in size and operation of National Telecommunication Corporation (NTC) and enhanced demand for frequency spectrum.

The cabinet has recently approved the Telecom De-regulation Policy and Mobile Cellular Policy to provide the telecom sector a competitive environment. These policies have necessitated amendments in the Act to expand and restructure the Frequency Allocation Board (FAB) and define its jurisdiction and functions.

The Act will be amended to introduce a tariff regime based on cost of providing service safeguarding the interest of consumers.

It would also establish a regime for "Access Promotion Contribution" to regulate diversion of prescribed part of revenue from international incoming traffic towards infrastructure development in under-served and commercially non-viable areas.

The amendment in the Telecommunication (Re-organisation) Act will give powers to the Pakistan Telecommunication Authority (PTA) to investigate and enforce competition and charge regulatory fee. Establish and manage Universal Service Fund for providing people access to telecommunication services in the un-served, under-served, rural and remote areas.

It would link Pemra, PTA and FAB for better co-ordination and sector development and matters relating to international telephony.

Sources said that the Ministry of Information Technology has also proposed other amendments in the said law.

The punishment for offences under the Telecommunication (Re-organisation) Act has been increased from two years to three years to make the offences non-bailable in order to curb the illegal international incoming traffic and other offences pertaining to telecommunication.

Moreover, the period of processing applications for spectrum by FAB has been reduced from three months to one month for facilitating the new entrants.

In line with the decision of the cabinet committee on telecommunication headed by the then Chief Executive, it is proposed that the Board of National Telecommunication Corporation (NTC) may be expanded and reconstituted and NTC be give more financial autonomy and administrative authority.

The Lahore High Court, while interpreting section 7(3) of the Act of 1996, has held that the revisional authority for hearing revisions under the Act is Secretary IT and Telecom Division, whereas Law Division opined that Secretary Cabinet Division is competent to hear the revisions. To remove this ambiguity the government has decided to amend the said law.

Copyright Business Recorder, 2004

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sibgakhan · #52 Monday, January 16, 2006

Oil and gas sector lead in corporate earnings

RECORDER REPORT

KARACHI (March 31 2004): The corporate earnings during 2003 showed tremendous improvement compared with preceding year where oil and gas exploration sector led the gainers while cement and power generation was relatively poor.

According to second quarter report released on Tuesday, the State Bank of Pakistan said that corporate results had shown a tremendous improvement during 2003 compared with previous year.

The earnings data for the top 30 companies on the basis of profit after tax (PAT), earnings per share (EPS), dividends, yield and market value reflects a market improvement in corporate performance.

The top 30 companies' net income during 2003 recorded a growth of 18.1 percent, to Rs 65.843 billion, as compared with Rs 55.760 billion of the preceding year, while earning per share stood at 6.1 percent as against 5.1 cent of preceding year.

Average cash dividend of these companies worked out to 40.6 percent as compared with 33.8 percent a year ago.

Sectoral 2003 earnings performance based on 530 listed companies showed that the top performing sector is the oil and gas exploration sector with a massive EPS of Rs 19.4.

The weak performance of textile spinning is puzzling, given the significantly improved export performance.

The performance of cement and power generation and distribution sectors was, however, relatively poor.

This was despite the fact that D.G. Khan Cement and Hubco performed very well within their respective sectors. Heavy losses suffered by KESC amounting to Rs 8.3 billion accounted for the bulk of losses in the power generation and distribution sector.

In fact, only two other companies incurred losses and the rest earned higher profits compared with 2002.

Copyright Business Recorder, 2004

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sibgakhan · #53 Monday, January 16, 2006

HSBC named FA for Dalda

KARACHI (March 31 2004): Unilever Pakistan (UP) has appointed HSBC as financial advisors to sell their edible oil business along with assets and brand "Dalda."

According to HSBC/Unilever press release issued here on Monday, March 29, the process started in January 2004 where 16 parties showed interest in the business and confidential information memorandum was issued to them. Out of these 12 parties participated in non-bidding bid.

After intensive and transparent evaluation six parties were selected and due diligence and negotiation are in progress.

The parties involved in final negotiation are representing Fauji Foundation, Habib Oil Group, Soya Supreme Group, Unilever Employee Welfare Group, Savola Group (Saudi Arabia) and Candyland Group.

The above parties have showed keen interest and by the end of April the deal should be finalised.-PR

Copyright Business Recorder, 2004

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sibgakhan · #54 Monday, January 16, 2006

British companies interested to shift businesses to Pakistan

RECORDER REPORT

LAHORE (March 31 2004): British Deputy High Commissioner Hamish St Clair Daniel has said that the UK would continue to support Pakistan against levy of anti-dumping duty on Pakistan's bed linen by the European Union.

In a meeting with LCCI President Anjum Nisar, Daniel said that the UK had continuously extended support to Pakistan in its efforts against terrorism. Efforts are afoot to raise bilateral economic co-operation between the two countries, while several British companies in the fields of education & training, printing & packaging and textile & designing industry are showing keen interest to shift businesses to Pakistan.

A delegation of the British textile machinery sector would visit Pakistan and hold catalogue exhibitions and a series of seminars in Lahore, Karachi and Islamabad in September this year.

He expressed satisfaction over new developments taking place on India and Pakistan fronts.

He, however, agreed with the LCCI president that Pakistan has been subjected to negative propaganda by Western media. He hoped that the 'Investment Conference' taking place in four weeks in UK would further enhance flow of investment to Pakistan.

The LCCI president invited British companies to invest in Pakistan particularly in Gwadar and Sundar Industrial Estate to make best use of the geographic location of this free port.

Pakistan, he said, now stands close to a large market of over one billion people, having the same set of consumer preferences and nearly same climate and culture.

Investment operations based in Pakistan would not be restricted to the Pakistani market alone.

These positive developments should be studied and monitored by the commercial sections of diplomatic missions for a more objective guidance for the businesses, he observed.

To be specific, investments in agro-based packaging and processing can find an instant wide market stretching from Lahore to Lucknow and Karachi to Mumbai.

Similarly, textile value-addition and the apparel sector can also be other potential areas for investment.

In this context, South Asian origin investors can take the initiative and lead to set the ball rolling, he added.

Copyright Business Recorder, 2004

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Iran allows private sector to import rice

RECORDER REPORT

KARACHI (March 31 2004): The Iranian government has allowed the private sector to import rice on payment of 4 percent custom duty and 96 percent benefit tax.

The information has been conveyed to Rahim Janoo, founder-chairman of Rice Exporters Association of Pakistan (Reap) by Pakistan's Commercial Counsellor in Teheran.

The commitment was made by the Iranian side at the 24th session of Pakistan-Iran joint Economic Commission held in Islamabad recently.

The Iranian side committed that import of rice would be allowed with from 'new year' beginning from March 20.

The Counsellor has said that as the Iranians observe holidays for about two weeks on the occasion of their new year 'Nauroze', it was difficult to contact any official during that period.

The Pak mission, however, succeeded in contacting the Iranian officials at the Ministry of Commerce and obtained the new book of import tariff in Persian.

According to the 'book', rice can now be exported to private parties in Iran on payment of customs duty at the rate of 4 percent and commercial benefit tax of 96 percent.

The 'book' does not mention anything about import, which means that now the private sector can also import.

Pakistan's mission suggested that Reap should arrange rice packs as 'Nauroze gifts' for officials and important personalities which would help Pakistan to market its super quality rice in the Iranian market.

Since rice constitutes major portion of Pakistan's exports to Iran, Reap should be on the forefront to make marketing gestures like arranging rice packs as gifts.

Copyright Business Recorder, 2004

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sibgakhan · #55 Monday, January 16, 2006

Gwadar port to have transit shipment facility

QUETTA (March 31 2004): Federal Finance Minister Shaukat Aziz has said that transit shipment facility will be provided at Gwadar Port so that the businessmen could store their cargo for onward shipment to the Gulf States.

Addressing members of the Balochistan Chamber of Commerce and Industry here on Tuesday, he said that X-ray machines would be installed in Quetta, Chaman, Peshawar and Karachi to check smuggling of contraband items through containers.

He said that steps would be taken to promote tourism in Gwadar. Gwadar Airport is being extended where necessary modern facilities would be provided to the travellers with the assistance of Oman government. Chinese government is helping Pakistan in development of Gwadar Port, he added.

He said the economy has recovered and consolidated resulting in generation of tremendous job opportunities.

The finance minister said that with the strengthening of economy, Pakistan has broken the begging bowl and soon it would be out of the yoke of the International Monetary Fund (IMF).

Referring to other achievements in economy, he said that there was increase in agriculture production. Sugarcane crops have registered a record increase. Production of rice has also increased by 8 percent to 9 percent.

Industrial production has increased by 15 percent, while investment was also on the rise. Investments are coming in textile engineering, automobile and cement.

He said that textile machinery worth $3-4 billion has been imported.

Shaukat said that new factories would be set up during the next 10 years. There is also increase in per capita income. Some 0.4 million motorcycles and 0.1 million vehicles would be manufactured this year.

Copyright Associated Press of Pakistan, 2004

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sibgakhan · #56 Monday, January 16, 2006

Transit trade Gwadar port to generate over $50 b

Abu Talha

Islamabad—The Gwadar deep-sea port, to be completed by March 2005, will have the potential to generate over $ 50 billion in transit trade annually in future.

Official sources said after becoming fully operational along with strong communication and transport links with Central Asian States, Iran, western provinces of China and commercial cities of the country, an estimated two-thirds population of Balochistan will become part of port-related activities.

The mega project which includes construction of three berths in the first phase will generate job opportunities for thousands of people. Having the potential to handle ships over 50,000 tons weight, the port will have huge cargoes for transiting to the Gulf region through smaller ships.

Reports emanating from the Gulf region suggest that authorities there are keenly interested in the project and for its early completion as their over-saturated warm water ports cannot absorb further pressures.

The sources said situated on mouth of the Gulf, the warm water Gwadar port will wait for transit of huge discovered and undiscovered estimated 2500 billion barrels of oil in Central Asian Region to different destinations as the fuel-thirsty nations are looking towards this region to meet their future needs. The nearest port for such facilities is this under-construction port. This port will become a gate-way for the region. It also offers special opportunity for land-locked Afghanistan.

The sources said foreign consultants have been engaged to overview the plan prepared by the Nespak for the port city. Modifications are expected in the original plan.

However, the business sources in the area are sceptical about the way the affairs of the port are being handled. They were of the view that the port will be completed by March 2005, but the road links with commercial cities of the country are still a distant dream. The feasibility study for railway links with the port is not yet complete and restoration of peace in Afghanistan is not in sight. With this situation the potential of the port cannot be exploited as desired.

The sources said the disposal of land, commercial and residential, supply of water, grievances of local population, construction of well-equipped international airport and construction of storages and warehouses are a few issues which need to be tackled in a transparent manner.

The land mafia in the area is trying to grab the precious land in the emerging port city, the population of which is expected to jump over one hundred thousand from the present about 60,000 in near future.

http://www.pakobserver.net/200403/31/view/?page=1&id=5

sibgakhan · #57 Monday, January 16, 2006

Import of machinery registers 23.7pc increase

Islamabad—The import of machinery and chemicals have increased significantly by 23.7% during July-February 2003-04 as compared to the corresponding period of last year.

Increase in import of machinery is a positive indicator of economic activity in the country. The higher non-food import and non-oil imports appears to reflect gearing up of the economy, an official source told APP here Monday.

Imports excluding petroleum products and food group during last eight months amounted to US$6559.4 million as against US$5069.9 million during the corresponding period of the last year showing an increase of 29.4%.

Textile industry has invested heavily to prepare the challenge after abolishing of textile quota in 2005. The textile sector has imported textile, machinery worth US$363.4 during July-February 2003-04 as against US$326.6% million during the corresponding period of last year.

The increase in the import of motor vehicles was driven essentially by surge in domestic demand due to increased availability of car financing which is relatively cheap.

Import unit value of major importers have shown an increasing trend in the range of 1.1% to 25.6% increased the import during July-February 2003-04 otherwise import bill would have been US$7636 million and the trade deficit would have been US$865.0 million.

Pakistan’s imports during July-February 2003-04 have registered an increase of 17.2% as compared to the corresponding period of the last year. The growth was initially projected at 5.0%.

The items of machinery group registered increase of 23.7% while chemical group by 23.7%, textile group by 15.8%, metal group by 35% and miscellaneous group by 21.8% and food group by 6.9%.

Import of petroleum crude increased by 13.8% due to rise both in quantity and unit value by 7.6% and 5.7% respectively during the period under review.

While the import of petroleum products declined by 28.6% despite increase in import unit value by 25.6% during July-February 2003-04 as compared to the corresponding period of the last year.

In the food group import of tea was 15.4%, spices 69.9% and edible oil 25.3% have increased during the period while decline has been observed in the import of milk cream by 13.3%, dry fruit by 76.6% and pulses by 50.4%.

Import of metal group have increased significantly by 35% to US$419.8 million during July-February 2003-04 from US$311.0 million during the corresponding period of the last year.

The trade deficit increased by $1216.3 million during July- February 2003-04 as against $838.9 million in July-February 2002-03 registered an increase of 45.0%.

Because of expansion in economic activities the import of machinery and chemical have increased which led to increase trade deficit during July-February 2003-04.

The increase in the trade deficit was on account of higher imports by 17.2% and exports by 13.8%—APP

http://www.pakobserver.net/200403/31/view/?page=4&id=2

sibgakhan · #58 Monday, January 16, 2006

Robust growth in revenues during first half FY 2004

Karachi—The State Bank of Pakistan, Tuesday stated that second quarter of the financial year 2004 (Q2-FY04) fiscal performance remained quite remarkable.

In the second quarterly report for the year 2003- 04, SBP explained that Rs.33.7 billion consolidated budget deficit reported for first half of the year (HI- FY04) is lower than the Rs.40.9 billion recorded for Q1-FY04. “In other words, it seems that the quarter under review recorded the first ever fiscal surplus since sub-annual data was made available in FY01.”

In terms of GDP, the consolidated budgetary deficit for HI-FY04 is a mere 0.8 percent, comfortably within the 4.0 percent annual target for FY04 and approximately half of the corresponding period last year.

The support came both from disciplined expenditures as well as a robust growth in revenues during HI-FY04. While the spending growth was contained to 3.6 percent (vs. the 4.0 percent average target for FY04), a 13.9 percent revenue growth for the period substantially exceeded the 5.3 percent average growth target for FY04.

Both tax and non-tax receipts contributed strongly to the aggregate revenue growth. While the former benefited from strong CBR tax collections; higher interest and dividend income largely due to improving health of financial and non-financial institutions coupled with logistic support receipts from US helped the rise in non-tax revenues, SBP pointed out.

CBR Q2-FY04 tax receipts jumped 22.8 percent YoY to Rs.136.4 billion, pushing the cumulative HI-FY04 tax revenues to Rs.230.4 billion - well above the Rs.218.1 billion target for the period.

The strength of the CBR performance is also underlined by the fact that, other than direct taxes (which were marginally below target), receipts under all tax heads comfortably achieved the respective HI- FY04 targets, SBP stated.

The State Bank of Pakistan, in its second quarterly report referring to impressive 12.4 % aggregate growth in industrial sector, termed availability of cheap consumer financing, strong growth in exports especially to textiles, higher farm income, and lower funding cost etc. instrumental to enhance demand vis-a-vis high growth rate.

State Bank of Pakistan stated that an acceleration in industrial production during Q2-FY04, compared to Q-1-FY04, led to a remarkable aggregate growth of 12.4 percent during the HI-FY04 compare to a 5.1 percent growth in the corresponding period last year.

This strong growth in industrial production owes largely to a 14.7 percent growth in large-scale manufacturing (LSM), with a supporting contribution from the 6.7 percent increase in electricity generation.

The State Bank of Pakistan has also predicted a reasonably good growth in the agriculture sector during financial year 2004 (FY04). The central bank in its second quarterly report for the year 2003-04, maintained that agriculture sector is expected to record good growth despite the negative impact of lower than the targeted cotton crop and the loss to poultry sector due to the “bird flue” virus.

In fact, the above target production of rice and sugarcane offset much of the impact of the relatively weak FY03 cotton crop. However, achieving the 4.2 percent growth target for agriculture during FY04 is only possible if the wheat harvest exceeds its target by a substantial margin and the livestock sub-sector remains at least on target, SBP stated.

Analyzing the outcomes, SBP stated that water availability improved further, reaching almost to the norma level in kharif FY04, and increasing by 30.1 percent in rabi FY04 compared to FY03.—APP

http://www.pakobserver.net/200403/31/view/?page=1&id=9

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No chapter, verses regarding Jihad, Shahadat
removed from textbooks: Zubaida

RECORDER REPORT

ISLAMABAD (March 31 2004): Federal Education Minister Zubaida Jalal has said that no chapter or verses regarding Jihad and Shahadat has been deleted or removed from the textbooks being taught in the country and the Ministry would soon delete any objectionable material, which spreads the sectarian hatred among the people, from the textbooks.

She stated this on Tuesday while addressing the participants of the 'National Seminar on Preventive Education against AIDS/HIV', jointly organised by the Ministry of Education in collaboration with Unesco.

The Minister categorically rejected the assumption and said that no verses regarding Jihad has been deleted, rather some have been shifted from inter level to matric level.

She told the participants that the Ministry of Education is the defender of the ideological boundaries of the country and would go to every extent to uphold the Islamic identity of the nation.

She maintained that making up-to-date changes and bringing modifications in the textbooks is the sole discretion of the provinces, but they can only modify the textbooks by following a strict policy guideline framed by the federal ministry of education.

Zubaida Jalal informed the participants that report has been sought from the province on the issue to inform the public and the parliamentarians about the actual situation.

The Minister further said that some politico-religious elements misinterpret the term Jihad thus inciting the masses by misinforming them about the non-issue.

She maintained that she would soon disclose the factual position and clear the assumptions and misconceptions found in a section of people through the media.

Meanwhile, talking to the Indian journalists at SAF games, Zubaida Jalal said that syllabus being taught in Pakistan is minority-friendly and minorities enjoy equal rights in the educational institutions of the country.

She also told the journalists that in Pakistan not even a single minority student has been killed in the school, as contrary to that of many neighbouring and other countries of the world.

Pakistan is the only country where minorities have the full freedom to profess and practise their religious doctrines, without the state intervention, she said adding no new curriculum has been framed in which the Ideology of Pakistan and the Indo-Pak History has been changed.

She said that no democratic country in the world could change its history being taught to the students in the schools.

She termed the Ideology of Pakistan and the Pakistan Movement, as an integral part of the syllabus and the country is proud of its independence movement.

Copyright Business Recorder, 2004

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sibgakhan · #59 Tuesday, January 17, 2006

Government striving for improving common man's life

SANGLAHILL (March 31 2004): The government was undertaking sincere efforts to improve common men's living standard by providing them the basic amenities of life, said Speaker Punjab Assembly Chaudhry Muhammad Afzal Sahi.

He was addressing an annual function of Sangla Hill Fauji Foundation here on Tuesday.

Citing some of steps taken by the government for common man's relief, he said, free education till matric and provision of textbooks for primary students was a landmark step of the Punjab government.

"Education has all the potential to bring prosperity to a family", he said and added that various incentives were being offered to the private sector as well to boost the educational facilities available to people.

Projects worth crores of rupees were going on in the country to add to the infrastructure and civic amenities, he said.

He stressed that a new social order based on fair play and justice was needed in the society to improve the life of common man.

Copyright Associated Press of Pakistan, 2004

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sibgakhan · #60 Tuesday, January 17, 2006

Punjab to spend Rs 150 million on education in each district

RECORDER REPORT

LAHORE (March 31 2004): Punjab Chief Minister, Chaudhry Pervaiz Elahi has asked police to take immediate stringent measures to arrest absconders in the province.

He stated this during a meeting with provincial legislators from various districts here on Tuesday.

The chief minister maintained that projects under 'Tameer-e-Watan Programme' would be completed in the province by end of this year.

He informed that Rs 150 million would be spent on education in each district of the province this year.

Talking about legislative work undertaken by provincial assembly he said that it had done record legislation.

Chief Secretary, Kamran Rasul, I.G. Masud Ahmed Shah and other senior officials were present on the occasion.

Copyright Business Recorder, 2004

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