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KARACHI (December 27 2005): Pakistan's exports and imports in November this year remained lower than those of October. According to provisional statistics issued by Federal Bureau of Statistics here on Monday.

Exports in November amounted to Rs 66,951 million, against Rs 79,374 million of October; while imports in November figured at Rs 137,440 million in comparison to Rs 138,978 million of October.

However, exports were 22.89 percent higher than November 2004, which amounted to Rs 54,482 million.

Similarly, imports increased by 55.26 percent, in comparison to Rs 88,525 million in November 2004.

The exports during July-November this year were worth Rs 395,613 million, against Rs 318,854 million of corresponding period of 2004, showing an increase of 24.07 percent.

Imports during July-November figured at Rs 667,537 million, against Rs 428,884 million of same period of last year, showing an increase of 55.65 percent.

The main commodities of exports during November 2005 were cotton cloth (Rs 9,251 million), bedwear (Rs 7,588 million), knitwear Rs 6,709 million), cotton yarn (Rs 6,361 million), readymade garments (Rs 5,085 million), rice basmati (Rs 2.384 million), other rice (Rs 2,768 million), petroleum products (Rs 2,276 million), towels (Rs 2,027 million), and leather garments (Rs 1,992 million).

Major imports during November this year were petroleum crude (Rs 15,648 million), petroleum products (Rs 11,015 million), iron and steel (Rs 8,947 million), motor vehicles (Rs 6,154 million), plastic materials (Rs 5,070 million), textile machinery (Rs 4,130 million), power generating machinery (Rs 4,116 million), fertiliser manufactured (Rs 3,408 million), palm oil (Rs 2,833 million), and electrical machinery and apparatus (Rs 2,421 million).

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Administrator @ Defence.pk

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New gas reserves in Khost inaugurated
QUETTA (December 27 2005): Balochistan Governor Owais Ahmed Ghani on Monday formally inaugurated the discovery of new gas reserves at Khost (Hurnai), some 118 kilometres away from here, by lighting the gas. The project is a joint venture of Mari Gas Company and MFD Exploration Company of Chzeck Republic.

The exploration work had also been inaugurated by the governor about three months ago.

Speaking on the occasion, the governor termed the discovery of new gas reserves as milestone in development of the area and thanked Allah Almighty for success of the very first gas well within a short period.

He extended his heartiest felicitation to Mari Gas Company and paid tribute to the area people for their co-operation with the company. "Maintaining law and order is essential for continuing development process and I hope that the area people would carry on their support to the gas company in future as well," he said.

The governor directed the company authorities to work on priority basis for the development of the area and welfare of its people and said that the benefits of new gas reserves would be fully ensured to be provided to the area people.

There is a need to purify the gas before its domestic and commercial use as it contains high quantity of poisonous Hydrogen Sulphides, he said, and added that a gas purification plant would also have to be established in the area for this purpose.

The governor was informed that new gas reserves would ensure availability of 6.867 mmscf gas daily. Rs 240 million were spent on digging of the well while Rs 60 million were spent on survey earlier, it was added.

Earlier, Managing Director Mari Gas Company Lieutenant General Imtiaz Shaheen (Retd) in his reception address highlighted the activities of his company and said that they would continue their efforts to discover more gas reserves in the area. He also assured that the company would not only provide jobs to local people on priority basis, but also work for development of the area.

A large number of area notables and tribal elders also attended the inauguration ceremony.

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BEIJING (December 27 2005): China is likely to increase its investment in Pakistan in the energy sector next year, as part of ongoing efforts to develop comprehensive mutually beneficial economic partnership.

"We are ready to help Pakistan in developing nuclear, hydropower and renewable resources to meet its energy requirements, said a senior Chinese official. The Chinese side has already expressed its intention to provide financial and technical support to Pakistan for developing important projects, like Chashma Power Plant, Neelum Jhelum Hydropower and Thar-Coal.

Talking to APP, he said the two countries had made substantial co-operation in the past in the energy sector, especially developing hydropower resources including Ghazi Brotha Dam. There are other joint ventures like Jinnah Hydro-Power Project (96 MW), Golan Gol Hydro-Power Project (106 MW) and Muzaffargarh-Kati Grid and Transmission Line construction project.

The two countries could also focus their attention on development of renewable energy resources in the coming years, the official said adding some Chinese companies have offered to provide technical assistance to Pakistan for developing of cheap electricity through solar energy.

An official of Jiangsu Solar Energy Resources Institute said the Chinese companies could help Pakistan in manufacturing solar collector tubes that could be used in providing inexpensive electricity.

A delegation of technical experts has already visited Pakistan for undertaking joint ventures to develop these tubes as well as other methods of producing thermal solar energy.

"We are also prepared for transfer of technology to Pakistan for the development of renewable energy under the memorandums of understanding (MoUs) signed by two countries last year, he said adding, in China, plate solar energy collectors and full-glass vacuum tube solar-energy water heaters have already formed into a production industry.

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SIALKOT (December 27 2005): Director General Board of Investment, Riazul Haq has said that foreign investment amounting to $3 billion was expected during current fiscal year in the country, as a large number of foreign investors had shown willingness to invest in different sectors.

Talking to Business Recorder here on Monday, Riazul Haq disclosed that automobile manufacturers like Mercedes Benz and Volks wagen were willing to establish their assembling and manufacturing plants in Pakistan adding that negotiations between the automakers and government were underway.

The establishment of these plants would help bring the automobiles' prices down in the country.

DG Board of Investment revealed that China National Chemical Engineering Corporation would set up fertiliser and oil refinery plants in Pakistan. Similarly, Shaheen Business Industrial Group of Jordan would establish power plant of 1200 megawatt in Bhikki.

The government had developed a business-friendly environment aimed at promoting the industrial sector as well as to ensure foreign investment in the country.

More foreign investors had showed their interests in setting up new industrial projects in Pakistan, he said.

The DG BOI disclosed that China specific area had been reserved in Sunder industrial estate while 100 acre of land had been allocated for the Korean investors in the estate.

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ISLAMABAD: Minister for Commerce Humayun Akhtar Khan Monday expressed hope that Pakistan would achieve its exports target of $17 billion for the current financial year.

Addressing a press conference, he highlighted the trade performance during July-November 2006 assuring that Pakistan’s exports were registering an exponential growth over the last four to five years.

He said that the exports had crossed the $10 billion mark for the first time in the year 2003.

Since then, "we have not looked back and made all efforts towards increasing exports to new and previously unattainable levels", he said.

In this regard, he said the government had set a target of $17 billion for the year 2005-06.

"The export growth which we have achieved so far during the first five months (July-November 2005) indicates that we will be able to achieve the target," the Minister said.

Humayun Akhtar Khan said that during the first five months of 2005-2006, exports increased significantly by around 23 per cent to $6.6 billion from $5.4 billion during same period of last year, thereby registering an increase of $1.2 billion in absolute terms.

Export growth was driven mainly by substantial rise in volume, he added. During July-November 2005-06 textile exports increased to $4.03 billion from $3.16 billion during the same period of last year, showing a remarkable increase of 28.0 per cent, he added.

He further said that export of cotton cloth increased by 33 per cent, readymade garments 72 per cent, cotton yarn 43 per cent, and towels exports were up 12 per cent in value during the period under review.

The Commerce Minister added that the export of primary commodities during July-November 2005-06 increased to $553 million from $437 million registering a rise of 27 per cent.

All the major primary commodities increased in the range of 12 per cent to 45 per cent per cent except raw cotton and fruits, which declined by 24 and 7 per cent respectively during the period, he said.

Hamauyun Akhtar said imports during July-November 2005-06 increased to $11.2 billion from $7.2 billion of the corresponding period last year, an increase of 54.0 per cent.

Major contributors to increase in the import bill, he said were machinery group ($1.08 billion), petroleum ($1.04 billion), metal group ($322 million) and chemicals ($170 million) in absolute term.

Import of non-food, non-oil items increased by 52 per cent during July November 2005, he observed.

The Commerce Minister said it was heartening to note that the increase had been in those sectors, which give impetus to the growth in exports.

Moreover, increase in imports was an indicator of expansion in the economy and it would ultimately help in achieving a sustainable GDP growth rate, he remarked.

Replying to a question he said that balance of payments position of Pakistan is very healthy.

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LAHORE, Dec 27 : Pakistan’s textile exports have increased to $4.03 billion in first five months of this fiscal, showing an impressive increase of 870 million dollars when compared to $3.16 billion textile exports during the same period of last year.

In percentage the textile exports during July-November period of this fiscal registered an impressive increase of 28.0 per cent.

Data released by Ministry of Commerce, showed that in textile sector, export of cotton cloth (33 per cent), readymade garments (72 per cent), cotton yarn (43 per cent), and towels (12 per cent) increased in value during the period under review. Export of primary commodities during July-November 2005-06 increased to US$ 553 million from US$ 437 million registering an increase of 27 per cent.

All the major primary commodities increased in the range of 12 per cent to 45 per cent per cent except raw cotton and fruits which declined by 24 and 7 per cent respectively during the period under review.

According to ministry, Pakistan’s exports are registering an exponential growth over the last 4 - 5 years. The exports, which were previously stagnating between 8-9 billion dollars, crossed the $10 billion mark for the first time in the year 2003.

The ministry said it had set a target of $17 billion exports for the year 2005-06. The current trend of exports, growth achieved in first five months (July-November 2005) indicates that the annual target of exports would be achieved.

During the first five months of 2005-2006, exports increased significantly by around 23 per cent to $6.6 billion from $5.4 billion during same period of last year thereby registering an increase of $1.2 billion in absolute terms. Export growth was driven mainly by substantial rise in volume.

Imports during July-November 2005-06 increased to $11.2 billion from $7.2 billion of the corresponding period last year, registering an increase of 54.0 per cent.

Major contributor to increase in the import bill were machinery group ($1.08 billion), petroleum group ($1.04 billion), metal group ($322 million) and chemical group ($170 million) in absolute term. Import of non-food, non-oil items increased by 52% during July -November 2005.

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KARACHI, Dec 28 Asia Pulse - Chilean copper company Antofagasta Minerals said it has agreed to a US$133 million joint venture with an Australian company to explore and exploit Pakistan copper and gold properties.

Antofagasta said in a statement, the agreement involved the purchase of a 19.95 per cent stake in Australia's Tethyan Copper Company (ASX:TYC) for US$20.5 million as well as an outlay of US$37.5 million for a 50 per cent equity stake in Tethyan's Pakistan mineral properties.

The agreement, announced out of London and subject to approval by shareholders and regulators, also involves a commitment to invest up to US$75 million in exploration and development.

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KARACHI, Dec 28 Asia Pulse - The Government of Sindh through the Sindh Coal Authority has made agreements with the North East Coal Geologist Survey Bureau of China for developing two additional blocks at the Thar coal field and identifying and discovering new coal fields in North Lakhra besides carrying out coal block assessment work.

A communique from the Sindh Mines and Mineral Development Department stated Monday that the first Chinese contingent comprising 12 technical members arrived on December 22 to carry out the assigned drilling and exploration work.

The second contingent comprising 48 members is scheduled to arrive tomorrow in Karachi.

The team will identify and delineate two additional coal blocks in the Thar coal field.

The team will drill 70 bores holes, 35 in each block and would carryout Hydrological, Geo-technical, Geophysical studies leading towards an international report, acceptable to the national and international investors interested in coal fired power generation.

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ISLAMABAD: Pakistan is taking a great and much needed leap forward in view of growing energy needs for development and scarcity of natural fossil fuel reserves.

Under its national energy plan, it plans to generate 8800 MWs of nuclear power by the year 2025 through the setting up of additional nuclear power plants, under IAEA safeguards. All of Pakistan's existing nuclear power generation plants are under IAEA safeguards.

Effective and robust export controls should also facilitate international cooperation in the area of civilian nuclear technology under safeguards. Meanwhile, the government has notified, in an SRO, the control lists of goods, technologies, materials and equipment related to nuclear and biological weapons and their delivery systems, which will be subject to strict export controls.

According to the foreign office, the control lists have been notified pursuant to the "export control act on goods, technologies, materials and equipment related to nuclear and biological weapons and their delivery systems" which was adopted by the Parliament in September 2004.

The control lists adopted by Pakistan encompass the lists and scope of export controls maintained by the Nuclear Suppliers Group (NSG), the Australia Group (AG) which relates to biological agents and toxins, and the Missile Technology Control Regime (MTCR).

The classification system is based on the European Union's integrated list, which constitutes the latest international standard in this regard. Lists controlling the exports of chemical weapons related agents and their delivery system are already being maintained by Pakistan pursuant to the Chemical Weapons Convention Implementation Ordinance 2000.

The notification of the control lists further highlights Pakistan's policy to implement its national and international non-proliferation commitments as a responsible nuclear weapons state. The lists are being notified to all concerned, including manufacturers of such goods and technologies as well as to the enforcement agencies for effective controls at the borders.

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SINGAPORE (Standard & Poor's) Dec. 28, 2005--Standard & Poor's Ratings
Services today affirmed its 'B+' foreign currency and 'BB' local currency
long-term and its 'B' short-term sovereign ratings assigned to the Islamic
Republic of Pakistan (Pakistan). At the same time, Standard & Poor's revised
its outlook on the foreign currency rating to positive from stable while
keeping a stable outlook on the local currency rating.
"Sharp declines in the government's external debt indicators and
structural improvements that, over time, should help Pakistan's export
capacity motivated the change in outlook for the foreign currency rating,"
said Standard & Poor's credit analyst Agost Benard. "Pakistan's net general
government external debt to current account receipts has improved to an
estimated 81% currently from 244% at year-end 2000. Although this ratio may
stabilize at this level and the country may run current account deficits
approaching 4% of GDP for the near future, we expect strong inward foreign
direct investment to finance much of these deficits," he said.
"Privatizations of Karachi Electric Supply Corporation and Pakistan
Telecommunication Company Limited are recent high profile examples, but we
expect greenfield investment to rise from current levels as well. In the
process, Pakistan's economy will become more competitive, per-capita GDP
growth should remain on average well above 4%, and, we expect industrial
exports to gain market share," Mr. Benard said.
A similar revision in outlook, however, was not effected for the local
currency rating. Tighter policies on both the fiscal and monetary fronts would
be needed for upward pressure to arise on the local currency rating.
"The government has suspended treasury bond auctions for nearly a year
and a half, reducing the average maturity of its rupee denominated debt," Mr.
Benard said. "It has taken repeated recourse to central bank financing,
reaching nearly half of the monetary base in November. Its general government
fiscal deficit is likely to rise above 4% of GDP this fiscal year ending June
30, 2006, including an estimated 0.6% of GDP of earthquake-related spending
that will be financed with concessional loans, unless the government takes
additional revenue and expenditure measures. This is up from 3.3% of GDP
deficit the year before," he noted.
Real interest rates remain slightly negative, although inflation appears
to have peaked at 11% in the second quarter and should end the calendar year
at 8%.
"The longer-term challenge," Mr. Benard concluded, "will be for the
government to capitalize on its recent reforms of its tax system and passage
of a fiscal responsibility law by raising government revenues significantly
from its current level of 14% of GDP and to demonstrate that the current
pro-market, pro-growth set of policies will be sustained during successive
administrations."
Complete ratings information is available to subscribers of
RatingsDirect, Standard & Poor's Web-based credit analysis system, at
www.ratingsdirect.com. All ratings affected by this rating action can be found
on Standard & Poor's public Web site at www.standardandpoors.com; under Credit
Ratings in the left navigation bar, select Find a Rating, then Credit Ratings
Search.

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ISLAMABAD - Pakistan’s Prime Minister Shaukat Aziz on Wednesday inaugurated the country’s third nuclear power plant, calling it an important step forward in securing “energy security”.


Known as Chashma Nuclear Power Plant (CHASHNUPP-2), the facility is located some 280 kilometers southwest of Islamabad and is being built with Chinese assistance at the cost of 700 million US dollars under an agreement signed in March 2003.

“The project is a milestone in the history of our nuclear technology and yet another landmark in Pakistan-China friendship,” Aziz said at the concrete-pouring ceremony.

“Chashma-2 symbolises the deep interest China has in Pakistan’s development,” the prime minister said, and added it is a concrete manifestation of the resolve of Pakistani and Chinese peoples to further enrich their traditional and well-established partnership for peace and development.

“We need nuclear power, which is a cheap, reliable, and environment friendly source of energy,” the prime minister said.

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BEIJING, Dec 27: Major public and private Chinese firms have assured Pakistani exporters of their support in finding a big market for rice. The assurance was extended to a delegation of rice exporters from Pakistan in a meeting with officials of China National Cereals, Oils and Foodstuffs Import and Export Corp (Cofco) and other major Chinese companies.

During the meetings, Cofco officials told Pakistani exporters about ample opportunities of selling their product in the Chinese market, especially long-grain rice.

China, they said, was planning to import 2.3 million tons grain rice this year. But so far its import had been around 400,000 tons. According to an estimate, Pakistan’s annual rice supply to China could be around 50,000 tons.

Pakistan exporters would be required to launch an aggressive and consistent campaign to find potential buyers, a delegation member said.

“We hope to successfully compete with rice exporters from other countries by presenting better quality at a cheaper rate,” he said.

During the visit, the delegation also held meetings with major rice buyers in Shanghai. Free-Banaspati rice-testing was also arranged on the occasion by the Pakistan-General. Major stores in the city expressed their willingness to sell Pakistani rice, it was learnt.

Sources said the prospects for Pakistan’s rice growers and exporters were bright since tariff on agriculture products would come down to zero-level from Jan 1, under the Early Harvest Programme, recently signed by the two countries.

Meanwhile, an official from China’s Chamber of Commerce for Import and Export of Foodstuffs and Native Produce said that China would encourage import of agro-based products from Pakistan, including rice and fruit. Pakistan, he said, would experience no problem of quota restriction.

The Chinese government has already completed necessary legal requirements to allow import of Pakistani rice and mango from this year. The official hoped the food trade would give a big boost to their economic ties.

Pakistan, it was learnt, would have to make greater efforts to clinch a reasonable share of its food products in Chinese market, since it was a new player in the field. An official of the Pakistan Embassy hoped that private sector would work out a long-term strategy to capture the opportunity. — APP

Endangered

Hinduja for free trade zone on Indo-Pak border

Hinduja Group Chairman Srichand P Hinduja today proposed to set up a free-trade zone on the Indo-Pak border between Rajasthan and Sind of Pakistan. The zone, to be built by the Sindhi community, would be a counterpart of the Bahamas or Bermuda in the US, Hinduja said.

Addressing the 12th International Sindh Sammelan in the city today, he said Ram Jethmalani would take up the issue with the Prime Minister shortly.

The forum of the Sindhi community would also approach the Pakistan government simultaneously. “We want to finish addressing the governmental issues related to this before the next annual meeting of the forum,” he told Business Standard.

For the free trade zone, he said a few hundred acres of sandy desert on both sides of the border was needed, where the Sindhi community would invest “the required money to make the desert bloom.”

Hinduja, an activist of the Sindhi community the worldover, said he had discussed the issue with the Governor of the Reserve Bank of India last month.

“We can tap the enterprise of the Sindhi community on both sides of the border for the mutual economic benefit of both the countries. This would improve relations between the two countries and create business opportunities for Indo-Pak trade and for South Asia exports to the rest of the world. Pakistani Sind too is an under-developed province and a free-trade zone should create economic opportunities for it as well,” he explained.

The combined wealth of the Hinduja family is estimated to be around $8 billion.

Hinduja said a free trade zone would be able to tap the wealth of the parallel economy and would thereby help the gross domestic product of the country to grow more than the projected 8 per cent rate.

“I have studied the subject (the potential of a free trade zone to attract parallel economy) for the last 30 years. I am confident and have full faith on Prime Minister Manmohan Singh. Now, the economy has become mature to attract parallel wealth,” he added.

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Wild Wild Web

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KARACHI (updated on: December 30, 2005, 11:23 PST): Country's foreign exchange reserves rose by $72 million to $11.310 billion in the week ending Dec. 24, the State Bank of Pakistan (SBP)said on Friday.

Reserves held by the SBP rose to $8.867 billion from $8.798 billion a week earlier, while those held by commercial banks jumped to $2.443 billion from $2.440 billion, the central bank said in a statement.

The bank did not give any reason for the increase.

Country's reserves hit an all-time high of $13 billion in the week ending April 30, but subsequently declined due to routine debt payments and a rising oil import bill.

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KARACHI (updated on: December 30, 2005, 11:56 PST): The State Bank of Pakistan (SBP) on Friday trimmed its forecast for gross domestic product (GDP) growth for the current fiscal year to 6.0 to 6.6 percent and said inflation must be reduced, even at the expense of short-term growth.

In its quarterly report, the SBP said it hoped the consumer price index would average 8 percent for the fiscal year ending June 30, 2006, in line with the official target.

The bank had previously forecast GDP growth for the year of 6.2-6.8 percent.