Pakistan Economy - News & Updates - Archive

[Neo]

Saturday, September 09, 2006javascript:; http://www.dailytimes.com.pk/print.asp?page=2006\09\09\story_9-9-2006_pg5_11

KARACHI: Federal Minister for Industries, Production and Special Initiatives Jehangir Khan Tareen said on Friday that the country had the potential to export at least 600,000 units of arms a year.

He added that a sports and hunting arms producing industry would be established at Darra Adam Khel by streamlining more than 200 arms manufacturing units in the area.

The minister said the Pakistan Industrial Development Corporation (PIDC) had taken a decision in this regard. He was speaking to journalists after chairing a meeting of the PIDC board of directors at PIDC house here on Friday. He said the meeting had also approved a proposal to establish a sports and hunting arms developing company in Darra Adam Khel.

There are around 200 small arms manufacturing units in the area, which produce good quality arms and ammunition.

 

[Neo]

Saturday, September 09, 2006javascript:; http://www.dailytimes.com.pk/print.asp?page=2006\09\09\story_9-9-2006_pg7_12

* CDWP to consider 48 projects worth Rs 66b in next meeting

By Fida Hussain

ISLAMABAD: The Water and Power Ministry has sought a sum of Rs 125 billion to buy land and resettle people likely to be affected by the proposed Kalabagh and Akhori dams as the Central Development Working Party (CDWP) of the Planning and Development Division is likely to consider around 48 other projects worth Rs 66 billion, a senior government official told Daily Times.

The official said that the CDWP would also consider the land acquisition and resettlement for the Diamer Basha dam project. However, the ministry has not given a separate cost for buying the land, said the official. The ministry has given the total cost of the project at around $6.53 billion with a foreign exchange component of $3 billion.

The ministry has estimated the cost of land acquisition and resettlement for Kalabagh Dam at Rs 58.6 billion and Akhori dam at Rs 68 billion. Besides the three major dam projects, a power distribution enhancement project of Rs 73 million in the energy sector is also on the tentative agenda of the CDWP’s next meeting.

The official said that the list of the projects would be finalised in pre-CDWP meetings which is to be chaired by Planning Commission Deputy Chairman Dr Mohammad Akram Sheikh.

The planning body will also consider Rs 21 billion development schemes in transport and communications, a Rs 272.545 million project in water resources, Rs 1.5 billion project in physical planning and housing, Rs 827 million schemes in population welfare, Rs 199 million scheme in culture, sports and tourism, Rs 1.4 billion project of industries and commerce, Rs 29 billion schemes in the health sector, Rs 573 million projects in education, Rs 97 million project in information technology, Rs 8.54 billion in agriculture and food, Rs 597 million schemes in science and technology, and Rs 2.7 billion projects in the higher education sector.

The next CDWP meeting is considered to be important because it will consider vital energy projects. The meeting will be crucial in a sense that it will take up the land acquisition of Kalabagh Dam for which the federal government is yet to remove the grievances of Sindh and NWFP, the official said.

 

[Neo]

Emaar Pakistan launches Portuguese-style Mirador homes at Canyon Views

Emaar Pakistan, the country-arm of global real estate major Emaar Properties, has unveiled Mirador homes, a neighbourhood of Portuguese-styled villas at its first master-planned community project in the country, Canyon Views in Islamabad.

Family villas set amidst open green spaces, walkways

Perfectly suited for families, each stand-alone Mirador villa recreates the flourish of Portuguese architecture with terracotta walls, gabled roofs and wrought iron detailing. Wide-open green spaces, meandering walkways and tree-lined streets set the stage for an ideal getaway from the hustle and bustle of typical urban quarters. The stylish homes, located in close proximity to the city centre, are created to meet the requirements of the country's population seeking unique living environments.

'Mirador homes form the first component of Canyon Views, Emaar's first master-planned community in Pakistan,' said Mr Mohammed Al-Falasi, Managing Director, Emaar Pakistan. 'With Mirador, Emaar is bringing in the best of Portuguese style living quarters, the architectural components of which are perfectly suited for the warm climes of Pakistan.'

Mirador offers its residents a range of community and sports amenities such as cricket grounds, swimming pools and tennis courts. The streetscapes are ideal for a leisurely stroll or cycling. Children have dedicated play areas and swimming pools. The town centre will feature retail outlets, restaurants, fitness facilities, schools and a mosque.

Spanish or Portuguese style decorative elements complement the pitched colourful roofs in the exteriors. The villas, designed with a meticulous eye for details, boast modern fittings and elegant finishes. Large kitchens come fitted with extensive cabinetry and granite countertops. Residents have a choice of colour palettes for the interior.

Ceramic tiles are standard throughout the villa. Ten-feet high ceilings in living spaces and 9-ft high ceilings in principal spaces assure cooler ambient temperatures. All bedrooms, with en-suite bathrooms, have built-in wardrobes. The villas have special living quarters for service staff and two car parks.

Advanced entertainment and communication facilities are offered including hi-speed Internet access. All villas have private yards enclosed by boundary walls. Twenty-four hour security and maintenance services will also be provided.

'Emaar has a track record of handing over 14,000 homes in varied master-planned community projects in Dubai, and we are expanding on the same model in Islamabad with the Mirador homes at Canyon Views,' said Mr Al-Falasi. 'These villas mark a celebration of life by offering residents a proportioned living quarter with large balconies opening to lush green landscapes and a wide range of community amenities.'

Canyon Views is part of a PKR145 billion (US$2.4 billion) development outlay by Emaar in Pakistan and is located in the Defence Housing Authority Islamabad (DHAI) Phase 2 extension.

The sales center for Mirador homes is located at DHA Phase 2 extension, off Islamabad highway. Potential investors and home-owners can visit the centre from September 10 for more details on the project or log on to www.emaar.com to register interest.

Emaar is also developing the Highlands in Islamabad and Crescent Bay in Karachi apart from having signed a Memorandum of Understanding with the Port Qasim Authority to develop a mixed-use project in Karachi.

Emaar's Pakistan development initiatives are in line with the company's Vision 2010 of becoming one of the world's most valuable companies through focused expansion and diversification.

 

[Owais]

Private sector to add 2000MW electricity by 2008
ISLAMABAD (updated on: September 09, 2006, 21:16 PST): Prime Minister Shaukat Aziz on Saturday said the government would tap all possible sources to increase power generation and maintain the momentum of growth.

Chairing a meeting at the PM House to review the demand and supply situation and overall progress in electricity generation, the prime minister said the demand of electricity has increased by 11 percent in the last year reflecting economic vibrancy, high growth and improved living standards.

He was informed that the total hydel production was 6740 MW, 1000 MW higher than last year while the total consumption and demand of electricity was at par with 14,000 MWs.

The prime minister said electricity demand was growing by 6-8 percent annually. During the last year 19,000 tube-wells were installed and 15,000 villages were electrified.

He reiterated government's commitment to provide electricity to every village in the country by 2007 and said the villages, which are not on the grid, would be provided electricity through alternative sources of energy.

While efforts are being made to increase hydel power, electricity generation through coal and thermal power generation will also be encouraged, he added.

The prime minister said government was encouraging the private sector investment in power sector and a level-playing field has been provided to local and foreign investors.

He said the government has formulated a clear policy, streamlined the procedures and reduced approval time to remove bottlenecks hindering private sector participation.

The Minister for Water and Power Liaquat Ali Jatoi informed the prime minister that private sector will add up to 2000 MW of electricity by 2008.

Four companies; Saif Power Limited, Orient Power Company Ltd, Star Power Generation Ltd and Sapphire Group will produce 800 MW and supply it to Wapda.

The prime minister was informed that Wapda would provide 1100 MW thermal power by 2008.

The Private Power Infrastructure Board (PPIB) has invited Request for Proposals (RFPs) for coal power generation using local and imported coal.

The representatives of the private sector who attended the meeting appreciated the interest taken by the president and the prime minister to streamline policies in the power sector.

They said as a result of the government policies local and foreign businessmen were investing in the power sector, which augurs well for the future development of the country.

 

[ST1976]

Pakistan has been marketing itself quite agressively to foreign investors
There are two major factors to our success:

- Arabs are looking for a safer place to invest there money rather than US, UK or Continental Europe.
- The China factor: To counter India, Pakistan needs to grow in economic field rather then military and we're China's main ally and a potential regional hub and corridor for chinese trade.

we've seen actions against the Bughti's and number of attacks on gas pipelines and other assets seems to have declined drastically as direct result.

As for the figures published lately, I can comfirm the $30-40 billion from UAE, $10 billion from KSA, $2-5 billion from Kuwait and another $2-3 from Qatar and Bahrain. China will surpass UK as largest foreign investor and the potential is as high as $100 billion during next 7-10 years all depending on the ongoing negociations.

Things are looking good for Pakistan! :flag:

this is good thing for pakistani economy that Arabs and China want to invest in pakistan. if someone will ask me about status of pakistan among muslim countries in terms of economic performance, I may rate her close to malaysia, indonessia. I guess pakistan has got reputation close to these countries.

action against Bughti was a gamble played by Mr Musharraf, either he will win or he will loose. Mr Musharraf look like a honest man but he gotto understand that he cant solve all the problems by bullets. there was no man like 80 year old Bughti in the world. Bughti is thinking of the people living in Baluchistan. if they will not think like that, no Bughti will get support from them. in the same way, even if indian military kill few leaders of Hurriyat “by mistake”, thinking of 10-20% people of kashmir will not be changed who think Hurriayt is right. anyway lets see whether Mr Musharraf win this gamble or not. if he will win, problem of baluchistan will be solved completely and if he will lose, pakistan will face very tough situation in Baluchistan similar to that of East pakistan in 1970.

Neo if we add $40bn from UAE, $10bn from KSA, $10bn from other Arabs, and rest $100bn from China as you said, this comes around $160bn and if 30-$40bn from rest of world including US, Europe and Japan (if we assume with this trend as you said), then the total comes atleast around $200bn for next 7-10 years or about $20bn to $30bn on average for next 7-10 years. brother I don’t know how correct your information is, but if this is true, pakistan will emerge as the fastest growing economy in the world beating all the expectations. but even if we look on the excellent performance of pakistan in terms of FDI last year, it was just around $3.2bn including $1.8bn through just privatisation or just about $1.4bn excluding FDI thru privatisation. I don’t know how much success pakistan will get in this mission of FDI. but even if pakistan get only 40-$50bn (excluding privatisation) for next 7-10 years, this will be said to excellent for a small economy like pakistan and this may be a solution to tackle widen trade deficit of pakistan. otherwise if we look on trade performance of pakistan, things are completely different and it no good.
anyway i give my best wishes.

 

[sigatoka]

I don’t know how much success pakistan will get in this mission of FDI. but even if pakistan get only 40-$50bn (excluding privatisation) for next 7-10 years, this may be a solution to tackle widen trade deficit of pakistan.

In any given year Capital Acc. Surplus + Trade Deficit Must equal 0. (by definition)
(similarly Trade Surplus + Capital Account Deficit must equal 0)


In a year that Privatisation occurs, capital surplus increases (because inflow of capital), therefore trade deficit must increase for equation to equal zero. FDI in the short run allows a nation to consume more than it produces (and in the long run it forces a nation to consume less than it produces- because foreign owners have to be paid dividends). Its real benefits are from transferring technology (which spills over) and thus it allows long run consumption to increase.

p.s. what exactly do you have against a trade deficit? Japan has been running mamoth surpluses for at least (as long as i have been seing internation finance on tv) and they have been growing at the great rate of 1% for that time. The U.S. on the other hand has been running large trade deficits and been growing more like 3-3.5% a year since (i started watchign int. finance on t.v.)

 

[ST1976]

In any given year Capital Acc. Surplus + Trade Deficit Must equal 0. (by definition)
(similarly Trade Surplus + Capital Account Deficit must equal 0)


In a year that Privatisation occurs, capital surplus increases (because inflow of capital), therefore trade deficit must increase for equation to equal zero. FDI in the short run allows a nation to consume more than it produces (and in the long run it forces a nation to consume less than it produces- because foreign owners have to be paid dividends). Its real benefits are from transferring technology (which spills over) and thus it allows long run consumption to increase.

p.s. what exactly do you have against a trade deficit? Japan has been running mamoth surpluses for at least (as long as i have been seing internation finance on tv) and they have been growing at the great rate of 1% for that time. The U.S. on the other hand has been running large trade deficits and been growing more like 3-3.5% a year since (i started watchign int. finance on t.v.)

you are right

 

[Neo]

this is good thing for pakistani economy that Arabs and China want to invest in pakistan. if someone will ask me about status of pakistan among muslim countries in terms of economic performance, I may rate her close to malaysia, indonessia. I guess pakistan has got reputation close to these countries.

Indeed, we're among the fastest growing muslim economies and we're poised to become an Asian Tiger.
FTA with Malaysia is in the making, it will be effictive early next year.

action against Bughti was a gamble played by Mr Musharraf, either he will win or he will loose. Mr Musharraf look like a honest man but he gotto understand that he cant solve all the problems by bullets. there was no man like 80 year old Bughti in the world. Bughti is thinking of the people living in Baluchistan. if they will not think like that, no Bughti will get support from them. in the same way, even if indian military kill few leaders of Hurriyat “by mistake”, thinking of 10-20% people of kashmir will not be changed who think Hurriayt is right. anyway lets see whether Mr Musharraf win this gamble or not. if he will win, problem of baluchistan will be solved completely and if he will lose, pakistan will face very tough situation in Baluchistan similar to that of East pakistan in 1970.

Bughti is a closed chapter and the event has been hi jacked by opposition and anti Pakistan elements, totally blown out of proportion.
There were strikes in Pakistan, nationwide protests, all but the Bughti tribes had there say! Why? Because they're relieved to be freed from abuse and moder day slavery he put up on his own people.
At the end of the day, everything will be normal. It's merely storm in a glass of water.

Neo if we add $40bn from UAE, $10bn from KSA, $10bn from other Arabs, and rest $100bn from China as you said, this comes around $160bn and if 30-$40bn from rest of world including US, Europe and Japan (if we assume with this trend as you said), then the total comes atleast around $200bn for next 7-10 years or about $20bn to $30bn on average for next 7-10 years. brother I don’t know how correct your information is, but if this is true, pakistan will emerge as the fastest growing economy in the world beating all the expectations. but even if we look on the excellent performance of pakistan in terms of FDI last year, it was just around $3.2bn including $1.8bn through just privatisation or just about $1.4bn excluding FDI thru privatisation. I don’t know how much success pakistan will get in this mission of FDI. but even if pakistan get only 40-$50bn (excluding privatisation) for next 7-10 years, this will be said to excellent for a small economy like pakistan and this may be a solution to tackle widen trade deficit of pakistan. otherwise if we look on trade performance of pakistan, things are completely different and it no good.

I got those figures from news articles and most of it is posted in this thread. Pakistan has been receiving high profile trade delegations from these countries, even if the half of the pldged amount is materialised, it will turn Pakistan into en economic powerhouse.
Figures from China and UAE are most reliable, many of the mega projects have already started.

anyway i give my best wishes.

Thanks man! :flag:

 

[Neo]

KARACHI (September 10 2006): State Bank of Pakistan (SBP) Governor Dr Shamshad Akhtar has asked the banks to make plans to raise home remittances to six billion dollars in the current financial year. In a meeting with bank heads at the SBP head office, Karachi, on Saturday.

The SBP governor stressed the need for capturing additional home remittances through banking channels. They are a better source than borrowing and more sustainable; therefore, it is worth the effort and the additional cost, said the central bank chief.

Dr Shamshad Akhtar asked the bank heads to forge alliances with banks and exchange companies in countries where they do not have branches. Further, she asked them to explore the possibility of Internet banking and post themselves on popular websites. Banks would need to offer better pricing and more efficient delivery mechanism than exchange companies and moneychangers, she added.

The SBP governor formed a task force under Habib Bank Ltd (HBL) President Zakir Mahmood to come up with recommendations within the next four weeks to achieve current financial year's target of six billion dollars, and also develop a medium-term plan to further enhance the remittances to eight billion dollars by FY 2009-2010.

It is also learnt that Prime Minister Shaukat Aziz himself is also leading a wider task force to explore all avenues to reduce the pressure on the external account.

The current account imbalance has risen to record high after posting healthy surpluses in 2002 and 2004 despite a sharp rise in foreign direct investment (FDI) to $3.5 billion in FY06.

According to knowledgeable sources, the inflow of foreign currency through informal channels is at least one to one and half times the inflow of $4.3 billion through formal channels.

The demand in informal channels is to cater for gold imports into the country, reverse capital flight to buy properties abroad and meet the calls from trade emanating for under-invoicing (of imports to pay lower duty) and over-invoicing (in exports for earning rebates), and also fulfil various exchange control rates of mandatory nature such as: circuitous exchange flow arising due to bad debt, etc.

 

[Neo]

ISLAMABAD (September 10 2006): Prime Minister Shaukat Aziz on Saturday said the government would tap all possible resources to increase power generation and maintain the momentum of growth. Chairing a high-level meeting at the Prime Minister House to review the demand and supply situation and overall progress in electricity generation.

Prime Minister said the demand of electricity has increased by 11 percent in the last year reflecting economic vibrancy, high growth and improved living standards.

He was informed that the total hydel production was 6,740 MW, 1000 MW higher than last year while the total consumption and demand of electricity was at par with 14,000 MWs.

The Prime Minister said electricity demand was growing by 6-8 percent annually. During the last year 19,000 tube-wells were installed and 15,000 villages were electrified. He reiterated government's commitment to provide electricity to every village in the country by 2007 and said the villages, which are not on the grid, would be provided electricity through alternative sources of energy.

While efforts are being made to increase hydel power, electricity generation through coal and thermal power will also be encouraged, he added. The PM said government was encouraging the private sector investment in power sector and a level playing field has been provided to local and foreign investors.

He said the government has formulated a clear policy, streamlined the procedures and reduced approval time to remove bottlenecks hindering private sector participation. The Minister for Water and Power Liaquat Ali Jatoi informed the Prime Minister that private sector will add up to 2000 MW of electricity by 2008.

Four companies; Saif Power Limited, Orient Power Company Ltd, Star Power Generation Ltd and Sapphire Group will produce 800 MW and supply it to Wapda.

Shaukat was informed that Wapda would provide 1,100 MW thermal power by 2008. The Private Pour Infrastructure Board has invited Request for Proposals (RFPs) for coal power generation using local and imported coal.

The representatives of the private sector who attended the meeting appreciated the interest taken by the President and the Prime Minister to streamline policies in the power sector. They said as a result of the government policies local and foreign businessmen were investing in the power sector, which augurs well for the future development of the country.

The meeting was also attended among others by Javed Sadiq Malik, Principal Secretary to PM, Mukhtar Ahmad, Advisor on Energy to PM, Acting Secretary Petroleum and Natural Resources, Chairman, Wapda, Chairman, Nepra, and senior officials. The private sector was represented by Javed Saifullah Khan, Nadeem Babar, Javed Ahmad Noel and Shahid Abdullah.

 

[Neo]

ABBOTTABAD (September 10 2006): Business community from the US is interested to construct at least 20 small hydro-power generation projects in NWFP in next two years on Built Operate and Transfer (BOT) basis, besides investing in 69 other projects costing $650 million after the sovereign guarantee by Government of Pakistan.

President Hazara Chamber of Commerce Industry, Engineer Jehanzeb Khan held a detailed briefing to the visiting officials from USA, which includes Robert Mosbachwr, Dulsa Zahniser and Jones C Polan.

Initially 20 projects with the capacity of 1 MW to 20 MW will be constructed in Hazara, Malakand and Peshawar divisions. He told that local businessman were invited for joint venture with the US investors while matters regarding the onward sale of power to either directly community or companies will be settled later on.

Engineer Jehanzeb Khan said that the government of NWFP was asked to constitute an independent authority to monitor the working of Hydel power units and to fix the tariff and also to help out the investors to remove the hurdles during and after the establishment of units.

Jehanzeb Khan said that three categories had been recommended to the US business partners which includes Small, Medium and Mega Projects for which locations had been identified at River Indus, River Kunhar, River Swat, River Siran, River Jehlum with hundreds of natural spring and other falls in hilly areas of NWFP. Elaborating the capacity of the proposed power generation units, he said that these could produce electricity from 1 MW to 5,000 MW.

Chamber President said that if power generation had been started through Hydel then it will reduce at least 34 percent burden on main National Grid and not only power shortage problem will be solved forever but due to Hydro Power generation, local industry and general people would have opportunity to get electricity on much reduced rates.

He added that it will also provide jobs to unemployed youth and predicted an economic revolution in the NWFP. For the early start of this scheme, Jehanzeb Khan said that early attention by the government of NWFP can bring billions rupees foreign investment in the province. He said that the earthquake had badly affected the business activities in Hazara division.

He said after the arrival of foreign investment in NWFP, it will boost not only local economy but the province will be in a position to increase their revenue as industries will be getting electricity on cheaper rates.

 

[Neo]

KARACHI (September 10 2006): Port Implementation Authority has short-listed three foreign companies to operate Gwadar Port, Aaj TV reported on Saturday. The port is likely to start operations this year, it added. Those companies, which have been short-listed, included China Harbour, Port Singapore and Dubai Port World.

In this regard, Authority's British Consultant Arther D. Little has issued a letter to the companies asking them to complete documentation process. Initially, the port will be used for transhipment as well as local needs. After completion of roads and rail track the port would work as a route to the Central Asian states.

 

[Neo]

KARACHI (September 10 2006): The removal of the bottlenecks and smoothening of the supply chain right from the manufacturer to the port and the vice versa would enhance the economic activity, enabling Pakistan to export more, Member of the National Trade Corridor Improvement Program (NTCIP) Task Force, Mohammed Rajpar said here on Saturday.

The Managing Director of General Shipping Agencies (Pvt) Ltd who is also a Board Member of Karachi Dock Labour Board and Port Qasim Authority, Member of Ship Owners' Advisory Committee and Gwadar Port Negotiation Committee, in an interview with APP said it is for the first time that a Prime Minister is giving such constant and consistent attention to improvement of the supply chain to enable the country meet new challenges of the global village.

Rajpar said the NTCIP Task Force is a brainchild of Prime Minister Shaukat Aziz who is moving at a fast pace, focusing on capacity building and infrastructure development in order to ensure that the country's economic growth rate is maintained without facing any bottlenecks.

PM Shaukat Aziz believes that the strength of a chain is determined by its weakest link and he often repeats to the Task Force members that he wants to see all their respective sectors strong.

Responding to a query, Rajpar said during the last 3 years, Pakistan's cargo volumes have increased 13 to 20 percent per annum and this growth is expected to remain on higher side during the next couple of years. "The rule of the thumb is that trade grows 1.3 times of GDP growth. Since the latter remains robust there are concomitant prospects for trade.

Appreciating the President Pervaiz Musharraf, Federal Minister for Ports and Shipping Senator Babar Khan Ghauri, he said it is their efforts that Dubai's DP World, Emaar and Nakheel groups are active in Pakistan and more are expected to enter into the market in due course

About Gwadar, he said it can emerge as a business hub for the region with fascinating opportunities for shipping lines to serve markets as far as Western China. Central Asian Republics and Afghanistan. There is a particular interest in the "Energy Corridor" aspect by creating a strategic oil reserve outside the Straits of Hormuz, he added.

Talking about his business, he said "Being an active advocate of change in industry practices, we are trying to bring a cultural change amongst local merchants," Rajpar said. "We are convincing importers to open FOB L/Cs to control their shipping choices as the complaints regarding CNF imports have increased wherein the exporters tend to hire cheaper, unreliable lines/carriers to save on freight resulting in higher costs, delays or other complications."

It is in the interest of the importers as well as the local freight forwarders/shipping agents that FOB L/Cs are opened and carrier is nominated by the importer after negotiating freight charges. "They can make us compete to get competitive rates and we offer one window service encompassing shipping, custom clearance, land transport, etc," Rajpar argued.

 

[Neo]

MIRPUR (September 10 2006): The amount of Rs 18 billion will be spent for the execution of various development projects in Azad Jammu Kashmir during current fiscal year, official sources said. The sources told APP here on Saturday that Rs 500 million were being spent on various developments projects across the liberated territory during the first quarter of the ongoing financial year.

Various development projects launched in Azad Kashmir during the current fiscal year will not only benefit the AJK population vis-à-vis extension of latest amenities of life at their doorsteps. The AJK government has decided to remove all undue bottlenecks in the way of the development works.

A sum of Rs 500 million had been earmarked for power sector as the AJK government had set the target of electrifying the entire population up to the year of 2007.

The federal government will spend over Rs 70 billion for Mangla Dam raising and Neelum-Jhelum Hydel Power projects to make the maximum use of the available hydel power potential in AJK. Work on Bataar and Kathai Hydel power stations will remain in progress whereas extension of two megawatt and one point six megawatt hydel stations at Leepa and Kathai would be carried out, the sources said.

The education sector had already been also received Rs 390 million during the next fiscal year. The construction work on the buildings of eighty middle and thirty high schools and five Inter-Colleges in various parts of the of AJK will be afoot and resumed in quake-hit zone soon. The work was abandoned following the recent earthquake.

Physical planning and housing sector will get Rs 387 million. Adequate allocation for Greater Water Supply Schemes of Bagh, Dadayal, Sehnsa and Hijreera was also being made. Besides the construction of different official buildings in various districts, the construction of High Court Circuit benches at Mirpur, Kotli and Rawalakot was expected to be completed within the stipulated time frame, the sources added.

 

[Neo]

ISLAMABAD (September 10 2006): Accor, French leading chain of hotels is coming to Pakistan, hoping to start construction of their first hotel by July next year. Accor chairman and co-founder Gerard Pelisson told a press conference that they have signed two memorandums of understanding with Pakistani partners to have a network of hotels in different parts of the country.

He said that Accor is a leading name across the world and in the Muslim countries of North Africa, Middle East and Far East. They are starting their venture in Pakistan as it offers vast opportunities for its mix of five star, four star and three star hotels, the last being its specialty.

Leading a five-member team, Pelisson held discussions with the minister for investment Shahid Hamid and called on President Musharraf who assured them of full co-operation.

Pelisson has already signed two memorandums of understandings with Karachi businessmen Jahangir Siddiqui and Siddiqui and Sorss Karachi. We have an ambitious programme of expanding hotel industry in the country and want to build long-term partnerships with private sector here, he added.

Questioned if issues of security bothered them, Pelisson said that the robust economic growth and the huge potential of the industry in Pakistan would be their assets.

They plan to cater for not only the foreign tourists as the countrywide would become a hub of trade and commerce because of its geographic location but equally serve the domestic tourism which too is expanding fast. The chain of three star hotels branded as IBIS will outnumber the other categories of four and five star hotels. He was optimistic that Pakistan with a population of 160 million and growing per capita income, they would meet only a part of the demand.

Pelisson told a reporter that hotels take two to three years to build and a same period to be profitable and he was not deterred by any issue of security or law and order which is equally good or bad elsewhere.

To begin with they would be investing 30 million dollars and put in more equity as the chain gets expanding. This would offer employment to some 300 persons. He hoped that within a few years, their investment would rise ten fold and also the job opportunities. What's good about the chain is that they run their own training academy in hotel management which would help young entrants and is bound to be a key to their success.