Pakistan Economy - News & Updates - Archive

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1.2 million cotton bales shortfall envisaged


ISLAMABAD (August 23 2006): The Punjab and Sindh have informed the centre that floods and monsoon rains had damaged 7.3 percent and 5 to 20 percent cotton crop in these provinces, respectively.

Similarly, both the provinces also informed the ministry of food, agriculture and livestock (Minfal) that the intensity of Cotton Leaf Curl Virus (CLCV) is low in these areas, sources in the ministry told Business Recorder on Tuesday.

The Punjab, the major cotton producing province, reported that about 198,478 acres of cropped area was damaged due to floods in seven districts. The crop damage ratio in Rajanpur, Layyah and D.G. Khan was 27 percent, 15.5 percent and 13.1 percent, respectively.

The only flood damage in major cotton growing areas ruined nearly 0.2 million bales of cotton, they anticipated. Last year, floods had damaged 350,000 acres of cropped area. While CLCV symptoms have been recorded on 61.95 percent spots as compared to 52.36 percent during the corresponding period of last year. Its intensity is low.

Contrary to the provincial claims of low intensity of CLCV, farmers told Business Recorder CLCV attack is higher and would cause a loss of nearly half a million bales.

Sindh, in its report to the Minfal, stated floods and monsoon rain-related damages were between 5 to 20 percent in 10 districts of the province while Sanghar district was severely hit with 25 to 35 percent damages. The total sowing area in the province was 573,870 acres against the target of 640,000 acres. The federal government has fixed a target of 13.8 million bales of cotton with sowing areas of 3.2 million acres. But due to floods and monsoon damages and CLCV attack, the target of 13.8 million bales of cotton is unlikely to be achieved and agri experts have anticipated loss of about 1.2 million bales of cotton.

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KARACHI (updated on: August 23, 2006, 18:07 PST): Pakistan Refinery Ltd (PRL) said on Wednesday it plans to invest $182 million in the next three years to upgrade its refining facility.

The Karachi-based refinery, Pakistan's third-largest complex, with a capacity of 50,000 barrel per day (bpd), said the upgrade would help sustain the refinery's profitability.

"The board of directors of Pakistan Refinery Limited in their meeting held on August 22 approved an investment plan of approximately 11 billion rupees ($182.2 million) for upgrading the refinery," the company said in a statement.

Additional units that will be installed under the plan will include a diesel hydrotreater, visbreaker, hydrogen generation plant, deasphalting unit, sulphur recovery unit, amino treatment plant and vacuum distillation unit, it said.

Aftab Husain, PRL's commercial and supply general manager, said the refinery would produce low sulphur content diesel under EURO II specifications after completion of the upgrade.

"The company will finance around 80 percent of the project, while the remaining 20 percent will be financed through loans," Husain said, without giving any details.

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KARACHI (updated on: August 23, 2006, 18:09 PST): The country's business group Jahangir Siddiqui (JS) has raised $70 million in a private equity fund to invest in high-growth potential sectors in the country, a company official said on Wednesday.

The closed-end JS Private Equity Fund I, which is the first of its kind in Pakistan and has a 10-year life, has attracted investments from four foreign institutions, including $20 million from the International Finance Corporation, an arm of the World Bank.

Ali Siddiqui, managing partner in JS Group, said the firm had closed its first fund on August 22 and hoped to attract another $130 million from foreign investors.

"We expect to have future closing in which the fund will grow larger in size ... eventually over $200 million," Siddiqui told a news conference in Karachi.

Siddiqui said the fund, which hopes to get equity partnership in companies, will target high-growth potential oil and gas, automobile and transport firms.

"We believe the timing is right to look closely at investment opportunities in Pakistan as a lot of firms in the country lack equity to grow into vibrant companies," he said.

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PPIB processing 52 projects of 14,000MW


ISLAMABAD (August 23 2006): The Private Power Infrastructure Board (PPIB) is processing 52 projects of 14,000MW which would attract $14 billion investment by 2016, starting from 2008, but did not mention if these projects would be materialised. This projection was given to the Minister for Water and Power Liaquat Ali Jatoi at the 64th meeting of the PPIB on Tuesday.

PPIB is also expecting 2000MW in 2008, which would bridge demand-supply gap to some extent but it expressed concern over the issues like non-availability of gas, but assured that all critical issues would be addressed for smooth implementation of the projects.

According to a press release, progress of 1550 MW power plants based on indigenous coal, which include 1000 MW plant based on coal from Thar, 200 MW on Jherruk coal, and 350 MW based on coal from Lakhra was discussed. Jatoi advised PPIB to continue its efforts to encourage coal-based projects and also Minister for Mines and Minerals Sindh, Irfan Marwat was asked to give a detailed presentation to the board in its next meeting with a view to help in the development of local coal and improve co-ordination amongst the various organisations.

The meeting decided that the board members would visit the Thar coal field in early September to be apprised of the ground realities and familiarise themselves of the location of this important coal field. In the same context, extension of Letter of Interest was given to two projects, which are 150 MW Habibullah Power Project and 200 MW Power Project to Fateh Group.

PPIB is also exploring the viability of 1000-1200 MW of imported coal-based power plants within 100-km of Karachi. This project would not only help meet the power requirements but will also reduce dependence on imported oil. The project would include the power plant, infrastructure required at the port for coal handling, and other logistics, the press release added.

The meeting also reviewed the preparation of the bidding documents being prepared by the Citibank who are the advisors to PPIB. The Minister directed that the preparations for ICB needs to be expedited.

The Board also formed a sub-committee to review the availability of gas for future IPPs and ensure that there are no bottlenecks in respect of projects currently under process. The board also informed that the bids for setting up 60-100 MW plant at Khuzdar would be invited through press by August 27. The board reviewed progress on fast track projects and decided that signing of the agreements with IPPs be expedited.

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KARACHI, Aug 22: After having failed to achieve $5.7 billion export target of fabrics and readymade garments in 2005-06, the exporters are gearing up to fetch anywhere from $6 to $6.5 billion in the current fiscal year.

Final figures for the last fiscal year show that fabrics and readymade garments exports could fetch a little more than $5 billion which is slightly more than $4.7 billion earned from export the previous year.

Textile exporters are pinning hopes on an expected bumper cotton crop, a textile package that offers Rs25 billion in subsidy and rebate to garments, fabrics and the vigorous marketing drive in the USA, EU, African, South American and Far Eastern countries.

Exporters are involved a cut-throat price war in the European Union and USA markets and failed to make as much impact after phasing out of textile export quotas in January 2005 as China, India and Bangladesh did.

“The marketing situation is gradually brightening up for us also,� a leading garment export remarked in a cautious assessment.

He is waiting for the picking assessment of cotton crop and also how the spinners operate this season. He believes that initial euphoria of phasing out of textile export quota is gradually on decline and international textile market is gradually stabilising.

Spinning is the most capital-intensive textile sub-sector and the spinners is the super rich class that for decades thrived on a 50 per price subsidy on cotton and generous bank loaning.

But this season, the government has overlooked spinners while proposing a concession package of Rs25 billion for the knitwear, garment and fabric exporters.The performance of textile sector in 2006-07 will depend by and large on the spinners’ relation with the ginners while buying cotton and then disposal of yarn that can keep the domestic value-added sector starved if some improvement is noted in international yarn prices.

In 2005-06 the textile exporters earned an overall $10 billion against a projected export earning of $10.62 billion showing a drop of about 5 per cent.

A big drop of more than 49pc has been noted in export of raw cotton which is hailed by the spinners, weavers and value-added sector.

“The ideal situation would be total consumption of 15 million bales of cotton by spinners and utilization of yarn by weavers and towel manufacturers,� a leading garment exporter said.

In 2005-06 yarn export fetched $1.46 billion against projected $1.28 billion mainly because of increase in volume as per unit value came down.

Fabrics export was expected to realise $2.49 billion against which $2.19 billion were fetched. This was despite a small increase in the average unit prices of fabrics.

Export of garments dragged behind by 6pc of the target as these could earn hardly $3 billion against $3.25 billion target. This was mainly because of more than 10pc decline in knitwear export which fetched $1.7bn against $1.93bn.

Textile business is pinning all hopes on a bumper cotton crop which should give them anywhere up to 14 million bales, which is enough to keep spinning sector busy till next September when cotton will start trickling in.

There is, however, a lurking fear that if monsoon extended beyond first 10 days of next month, the cotton crop may suffer a setback.

Reports gathered from various sources indicated that cotton crop prospects look bright so far and growers and ginners expect a good picking this autumn.

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KARACHI, Aug 22: Export Promotion Bureau Chairman Tariq Ikram has said the export target of $40 billion within next five years is easily achievable if an export strategy is prepared targeting for the world market share of five per cent from the present three per cent.

For achieving this target, he said, the export strategy and roadmap had to be made by integrating all stakeholders belonging to the federal and provincial governments, as exports were not the responsibility of one single ministry or the EPB but of the entire nation and this required collective approach.

Speaking at the eighth Export Excellence Award of the Pakistan Readymade Garments Manufacturers and Exporters Association late on Monday evening, Mr Ikram refuted the notion that the textiles and garment sector had lost its importance in the government planning and exports.

On the contrary, he said textiles and garments were still backbone of country’s economy and looking to the developing worldwide scenario on textiles and clothing by the year 2014, the volume would rise to $800 billion from the present level of around $400 billion.

During the last six years, he said country’s textiles and clothing exports registered an 85 per cent growth as against average growth of about 16 per cent per annum in the past. However, Mr Ikram stressed upon the need for introducing technologies and improving upon manpower and manufacturing skills, as all these factors were essential for creating efficiency and containing cost of production.

The only way left for manufacturers and exporters was to contain cost of production through adopting such methods which could improve and enhance efficiency. Mr Ikram said at present 130 countries were producing textiles and clothing but only 30 countries were buyers.

He said there was a need for having a neutral body that could jointly work with all the stakeholders. Once the body is set up, Mr Ikram said, the export strategy with the help of all stakeholders could be made and even a target of $50 billion could be achieved in the next five years.

Citing some examples where there is big scope for exports, he said annually Pakistan lost millions of dollars by not taping tuna fish exports. “Every year in October 60,000 to 100,000 tons of tuna fish travel from Pakistani waters to Iran but we do not explore this source for exports. If properly explored and value-addition was made, this fish could fetch $7 to $10 per lb.

Similarly, he said Pakistan had huge reserves of marble, granite and green onyx but it was only exporting them as raw materials. If required technology and techniques are adopted their annual exports could touch $2 to $4 billion.

Gems and jewels are also being exported as raw material at a through away price. This sector could also fetch billions of dollars, he added.

Chairman Senate Mohammadmian Soomro stressed upon the need to meet the economies of scale and said due to open competition and free market it had become the survival of the fittest.

“We should focus on future challenges and a lot is needed to be done.� He assured the private sector of full government support and said it had the potential to meet the challenges of the open market era.

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News of an upcoming Pakistani move to launch an international bond on behalf of the country's oil and gas development corporation (OGDC) marks an important step forward for the country to gain a foothold in global capital markets.

Pakistan's return from being a near default country in the late 1990s to being a solvent country with a healthy rise in liquid foreign current reserves, is often cited by the country's leaders as an impressive success story. The turnaround means that Pakistan's ability to not only borrow from international financiers but also float new bonds, has sharply improved. This has helped improve Pakistan's profile.

But the news of the expected bond offer also comes in a week when a mission from the International Monetary Fund (IMF) is visiting Islamabad to broadly discuss the pace of progress surrounding the Pakistani economy.

Though the IMF's clout over Pakistan has reduced sharply from the days when it had a much stronger ability to influence policy in return for a continued flow of loans, the Washington based outfit's assessment of any economy is important. No details of the IMF's discussions have been made public.

But senior western economists in Islamabad, familiar with the discussions, believe that the IMF is keen to look at areas such as the extent to which Pakistan's claims of a robust rise in its foreign direct investments, hold true. The Pakistani government has claimed a very significant rise in foreign direct investment (FDI) heading to the south Asian country in the fiscal year which ended in June this year.

But critics warn, the Pakistani estimates also include returns from the country's privatisation plans. Though in the short term, receipts from privatisations must help improve the inflows of foreign money heading in to the country, there are some compelling questions that must be asked on the extent to which such a sharply rising number also demonstrates a parallel rise in the extent to which foreign investors feel comfortable with the idea of heading to Pakistan.

The answer is clearly one that can not be easily ignored. Pakistan is far from successfully overcoming the impediments for investors, centrally to do with the cost of doing business. Factors such as high global oil prices jeopardising investment prospects are beyond the capacity of any one country such as Pakistan, to tackle.
But factors which are internal to Pakistan, ranging from elements within its notoriously poorly run electricity systems to the pathetic quality of government at grass roots level, amply demonstrate the many ordeals that investors have to face on a daily basis.

By comparison, some of the more successful destinations for investors such as economies in the Far East, continue to offer more attractive prospects for investors. For any discerning observer, the choice of a destination other than Pakistan therefore becomes more promising.

As Pakistan's new bond foray begins to be of interest across international financial markets, the realities faced by businesses within the country are much too glaring to be ignored. It is still possible that the bond offer about to be put out may attract much larger than expected interest, and the financial returns may be more than just impressive.

However, if indeed this was to be the benchmark of Pakistan's success in overseeing a turnaround which also attracts new investors, there are bound to be a number of lingering questions.

Pakistan's ability to translate its success from recent years must now depend on how far it can actually oversee a turnaround in the functioning of its key elements that are directly relevant to the interests of investors. Achieving that objective must be central to the extent that short term returns from privatisation efforts can actually be overtaken by a sustained flow of investments over a long term period.

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30 projects worth Rs 130 billion approved


ISLAMABAD (August 24 2006): The Executive Committee of the National Economic Council (Ecnec) in its meeting on Wednesday, with Prime Minister Shaukat Aziz in the chair, approved 30 development projects worth Rs 130 billion including foreign exchange component (FEC) of Rs 42.08 billion.

Deputy Chairman of the Planning Commission Akram Sheikh during a news briefing following the meeting said that the Prime Minister has foreseen that country was heading towards middle-income from low-income economy.

He said that in total the Planing Commission considered 35 projects, out of which were 27 new while eight ongoing, whereas among the new ones five projects of Rs 5.3 billion in health sector were deferred due to absence of Health Minister Dr Nasir Khan from the meeting.

Giving sector-wise break up of the projects, he told the newsmen that 15 projects were approved of Rs 81.7 billion with FEC of Rs 26.90 billion in infrastructure sector, 12 projects worth Rs 44.2 billion (FEC Rs 15.20 billion) in social sector and 3 projects in other sectors costing Rs 3.5 billion without foreign assistance.

In infrastructure sector, 11 projects related to water resource development, 3 to energy and one to transport and communications sector.

THE PROJECTS IN WATER SECTOR INCLUDED: Construction of Fall Structures on Nara Canal, Re-sectioning of Ranto Canal and Jamroa Canal costing Rs 1.086 billion, Second Flood Protection Sector Project (FPSP-II) (Rs 4.614 billion), Remodelling of SMB Link and Bahawal Canal Lower (Rs 745.89 million), Chashma Right Bank Irrigation Project (additional work and outstanding liabilities) (Rs 865.83 million), Makhi-Farash Link Canal project (Chotiari Phase-II) (Rs 1.73 billion), Pehur High Canal project (Rs 6.615 billion), Taunsa Barrage Emergency Rehabilitation and Modernisation project (revised PC-I) (Rs 11.23 billion), Bazai Irrigation project (Rs 1.59 billion), Rehabilitation of Irrigation System in NWFP (Rs 8.48 billion), Punjab Barrages Rehabilitation project Revised PC-I (Rs 1.647 billion) and Extension of RBOD from Sehwan to sea at Gharo (revised PC-I) costing Rs 29.217 billion.

IN ENERGY SECTOR: three projects of over Rs 27.34 billion were approved ie Oil-Fired Thermal Power Station at Jamshoro units (revised PC-I) of Rs 8.75 billion, Feasibility study and detailed engineering design and preparation of tender documents for Kohala hydropower project of Rs 545.7 million and 450-MW Combined Cycle Power Plant at Chichoki Mallian costing Rs 18.05 billion.

IN TRANSPORT AND COMMUNICATIONS: a project costing Rs 1.394 billion for construction of Rothoa-Haryam Bridge and its approaches across Reservoir Channel on Mirpur-Islamgarh Road was approved.

AMONG 11 PROJECTS IN SOCIAL SECTOR: 4 are from physical planning and housing that include supply and installation and operation of water desalination plant of I million gallons capacity for Gwadar Industrial Estate worth Rs 757.72 million, water supply schemes in District Peshawar of Rs 662.50 million, water supply scheme for Shalman to Landi Kotal, Khyber Agency, costing Rs 579.2 million, expansion of filtration plant and water supply network for supplying clean drinking water to Hyderabad city under the Prime Minister's package of Rs 998 million and water supply and sewerage schemes for Mirpur City and other hamlets costing Rs 3.573 billion were approved.

IN THE MASS MEDIA SECTOR: the most important project of establishing Islamabad Media Tower of Rs 1.28 billion has been approved with public-private partnership. The federal government will provide the land and construction cost will be borne by the private sector.

IN EDUCATION SECTOR: 3 schemes for capacity building of teachers training institutions of Ministry of Education in Islamabad Capital Territory (ICT), Federally Administered Northern Areas (Fana), Fata and AJK costing Rs 669.56 million, capacity building of teachers training institutions in Punjab of Rs 3.174 billion, and capacity building of teachers training institutions in the NWFP costing Rs 1.035 billion were approved.

An amount of Rs 14.52 billion for overseas scholarships for MS/M.Phil leading to PhD in selected fields was approved in Higher Education. Establishment of nation-wide integrated trunk radio system for police for Rs 1.95 billion in governance sector was also approved.

Ecnec also approved Rs 1.58 billion Milk Collection/Processing Dairy Production and Development Programme and Livestock Production and Development of Meat Production Project of Rs 1.521 billion in agriculture sector.

National Monument of Pakistan worth Rs 574.38 million in cultural sector and Construction of Building for Pakistan School of Fashion Designing, Lahore, (revised) for Rs 669.37 million in commerce sector were also approved.

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Inflation almost same as in fiscal year 2006-end: SBP


KARACHI (August 24 2006): The current fiscal year 2006-07 commenced with almost the same headline inflation as witnessed during the last month of last fiscal year 2005-06. According to State Bank's monthly publication, 'Inflation Monitor', issued on Wednesday, the consumer price inflation remained at 7.6 percent year-on-year (YoY) in July 2006--the same as recorded in June, 2006.

However, it was significantly lower than 9 percent inflation during July, 2005. Although non-food inflation witnessed slight increase during July 2006, its impact on overall inflation was offset by decline in food inflation. Sensitive price indicator also maintained its last month's (June 2006) rate of increase. Wholesale price index, however, declined noticeably, which was supported mainly by decline in WPI food inflation.

After being recorded at 7.8 percent in June 2006, food inflation declined to 7.4 percent YoY in July 2006. Price movements of individual items in the CPI food group showed that prices of 26 food items, including eggs, pulse masur, wheat, apple, etc YoY declined during July 2006.

On the other hand, prices of 31 items exhibited double-digit YoY inflation, which, among others, included beef sugar, pulses gram, mash and moong, potato, tomato, etc. However, the rate of increase in prices of most of these items declined in July 2006 as compared to June 2006. The rest of the items, having a weight of 47 percent in food group, exhibited subdued or moderate inflation.

Non-food inflation increased slightly from 7.5 percent YoY in June 2006 to 7.8 percent in July, 2006 primarily due to rise in gas charges and train and air fares. However, the main component of non-food inflation, ie house rent index continued to decelerate. It declined from 30 percent in July, 2005 to 24 percent in July 2006.

Core inflation measured by non-food non-energy, that had been declining for the last several months, ceased to decline further in July 2006, while the core inflation, measured by trimmed mean, showed reversal in its past trend of decline.

The wage inflation was 17.0 percent in July 2006, compared with 18.2 percent in the previous month. However, it was significantly higher than 11.6 percent in July last year. Wages of skilled workers increased by 16.8 percent and those of labourers increased by 18.5 percent during July 2006. The average real wage inflation kept rising but with slower rate of 9.4 percent in July 2006, as compared with 10.6 percent in the preceding month.

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UK supports Pakistan for EU market access: Daniel


KARACHI (August 24 2006): The British Deputy High Commissioner, Hamish St Daniel, has said that Britain is a very strong supporter of Pakistan to provide it markets access in European countries. Addressing members of Site Association of Industries (SAI) here on Wednesday.

He said that Pakistan offers very attractive investment opportunities and, in the next couple on months, a number of British trade delegations would visit Pakistan and discuss business avenues.

He said that next week a delegation of Birmingham Chamber of Commerce would visit Pakistan, whereas a telecom delegation, an education delegation and a finance delegation would visit Pakistan soon. He said that travel advice did not restrict people from visiting a country. The visitors are advised only to take precautionary measures while visiting that country.

He said that during his tenure he visited several parts of Pakistan by car--from Islamabad to Northern areas, Sialkot, Faisalabad and many other cities--and faced no problem.

Danial said that business community could play a big role in improving the image of Pakistan abroad. He advised the business community to increase interaction with business communities abroad to improve Pakistan's image. "Visit trade bodies and brief them about Pakistan, its policies, and working environment," he said.

He noted that Pak-Britain two-way trade was around $1 billion and added that balance of trade was in Pakistan's favour. The UK Deputy High Commissioner appreciated steps taken by Pakistan government in respect of intellectual property rights. He said that these steps have played a vital role in reducing piracy of books, films, drugs, CD and VCD, etc.

About nuclear power generation, he said that it was a very sensitive issue. For power generation, other options should be utilised, including coal, solar, wind and hydroelectric. He said that it is a fact that oil prices have gone very high and gas reserves are depleting fast.

Danial said that British companies are interested to participate in restructuring and modernising Pakistan railways. Replying to a question about one-day cricket series, he said he was interested in cricket series' continuation and that justice should be done in the recent incident.

Welcoming the guests, SAI Chairman Ameen Bandukda said that the current scenario offered great potential for investment from British companies to form joint ventures and enter into agreement for transfer of technology. He said that potential exists in the fields of power generation, telecommunication, iron and steel, chemicals and food processing.

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JSG introduces equity fund worth $70m

ISLAMABAD: Jehangeer Siddiqui Group introduced Wednesday $70 million equity fund.

Managing partner of Jehangeer Siddiqui Group, Ali Siddiqui told that with the amount received from the first closed ended fund, the sectors of oil and gas, automobile and transport would be invested.

According to company officials, this is first closed ended fund of its kind, which will have ten-year term.

Besides the investment by foreign institutions, International Financial Corporation invested $20 million in the fund.

Company officials told that the fund soon would receive an added $130 million that will make it $200 fund.

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Banks disburse Rs134 billion loans

KARACHI: The banks during the first seven months of the current calendar year provided loans amounting to Rs134 billion.

State Bank of Pakistan (SBP) sources told that the banks’ disbursed loans at the end of December valued at Rs2044 billion, which shot up to Rs2178 billion at the end of July.

The banks during July 2006 alone issued over Rs50.5 billion loans. Banks’ loans by the end of June amounted to Rs2127 billion that reached Rs2178 billion at July ending.

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SMEDA, GCC sign agreement to build export centre

GUJRANWALA: Small & Medium Enterprises Development Authority (SMEDA) and Gujranwala Chamber of Commerce (GCC) signed an agreement to establish an export display centre in the city.

GCC President Akhlaq Butt and SMEDA General Manager Aftab Qadwai sign the contract papers. According to the contract, SMEDA has provided an amount of Rs 8 million to build a six-storey export display centre, which will be completed in 2007.

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ISLAMABAD (August 24 2006): Prime Minister Shaukat Aziz on Wednesday said Pakistan is set on the path of reforms and growth with stability as macro economic improvements have enabled the country to attract foreign investment and absorb the oil shock.

He was talking to Mohsin Khan, the IMF Director who called on him along with a delegation. The IMF team is visiting Pakistan for the annual review of its economy.

The prime minister highlighted the efforts of the government to further reduce poverty by focusing on health care, education, women empowerment and job creation both in rural and urban areas. In rural areas, the major drive for growth continues to be agriculture and in urban areas manufacturing and services sectors, he added.

The prime minister also discussed the overall economic indicators and the initiatives taken in the monetary policy by the State Bank of Pakistan. He said the extra financial impact of the earthquake on government spendings and development programme was absorbed due to improved fiscal situation and increased revenue generation.

The earthquake necessitated tremendous rebuilding of the infrastructure and expenditure on relief and rehabilitation efforts in the earthquake affected areas, he added.

The prime minister said the investment climate in the country is improving and the trend is expected to continue and further accelerate as investors become aware of the medium and long term potential in Pakistan as an investment destination.

Mohsin Khan, Director IMF said that it is gratifying to note that he and his delegation are visiting Pakistan at a time when the prospect of its economy look good as Pakistan is set to achieve its growth target for the year 2006-07. He said that Pakistan's economy is in good health as the Prime Minister's economic team has its act together.

He also expressed the hope that Pakistan's economy will continue to show steady improvement in the coming years to bring about improvement in the life of its people. He said his discussions with the prime minister were fruitful and productive.

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Thursday, August 24, 2006

KARACHI: SITE Association of Industry Chairman Ameen Bandukda said on Wednesday that UK was the second largest investor in Pakistan after the USA and he added that more than 70 British companies were operating in Pakistan.

He was speaking during British Deputy High Commissioner Hamish Daniel’s visit to the SITE Association of Trade and Industry.

The SITE chairman said investment in Pakistan by British businessmen and companies had increased in the last two years and a number of trade delegations had visited Pakistan.

He said trade between both countries was about one billion dollars and added that the volume of trade between the two countries was on the rise.

The SITE chairman stated that a lot needed to be done to meet the needs of industrialists and the business community in Karachi as the city’s infrastructure needed to be upgraded.

When asked about efforts to project a positive image of Pakistan, he said exporters and importers could serve as effective “industrial messengers�.

Hamish Daniel said companies from Britain were entering into mega projects in Pakistan regarding the modernization of railways and he added that there was great scope for cooperation in security sector reform. He said investors from UK could invest in the oil and gas, agro industry, information technology, textile machinery, gem mining and environmental technologies.