What's new

Pakistan Economy - News & Updates - Archive

Status
Not open for further replies.
Pakistan's call for World Bank-IMF help to build up energy infrastructure


SINGAPORE (September 20 2006): The global community faces a major challenge in securing affordable and cost-effective energy supplies while preserving regional and global environment, said PM's adviser on finance Dr Salman Shah here on Tuesday.

Addressing the plenary session of the World Bank/IMF annual meeting in Singapore, he said there are two dimensions to the energy challenges (i) the escalating oil prices, which are risks to fiscal and macro-economic stability in mostly oil importing countries, and (ii) the deficit of needed investment in energy sector.

Closing the infrastructure deficit is critical to any efforts towards unleashing growth potential and attainment of millennium development goals (MDGs) in the developing countries, he added.

"The World Bank and the IMF have to play an active role in financing and assisting the countries to accelerate needed investment in infrastructure", said Dr Salman Shah
 
US firm keen to set up 5,000MW coal power plant


NEW YORK (September 20 2006): An American company has shown interest in setting up a 5000MW coal power plant in Pakistan, State Minister for Investment Umer Ghumman said on Tuesday.

Ghumman said that during an interaction with Brain Miller, executive vice president, general counsel and company secretary, AES Corporation, he found Miller interested in exploring possibilities of setting up a coal power plant in Pakistan. He said that AES officials would visit Pakistan for an in-depth study of the proposal.

He said AES if comes to Pakistan with a plant of 5000MW generation capacity "we will be able to get power in between 2.5 cents to 3.5 cents per unit. He said that soon there will be a follow up meeting and something concrete would come out.

He said that Miller was already studying the possibility of travelling to Pakistan with the proposal. Ghumman said that he has met with a few other power-producing company heads and has asked them to relocate some of their plants from other less lucrative locations to Pakistan for which the Pakistan government would provide all possible assistance.

He said that relocation of power plants is economical and convenient and therefore, easily acceptable to companies planning to either wind up their business at one location and move to another or to expand their business.

Giving his overall view of meeting businessmen at the roundtable interactive luncheon meeting he said investors seem more interested in telecommunication, oil and gas exploration, power generation and financial services.
 
Pakistan to learn from NYSE: law needed to check frequent stock fluctuations


NEW YORK (September 20 2006): Minister of State for Privatisation and Investment Umer Ahmed Ghumman said on Monday that Pakistan would learn from the New York Stock Exchange how to manage frequent and abrupt fluctuations in the Pakistani stock exchanges so that the interest of the small and medium investors could be saved.

The minister was talking to press after attending a roundtable meeting with the US investors/businessmen, chief executive officers of important US companies and top bankers at a local hotel where President General Pervez Musharraf had given them a briefing on Pakistan's economy and opportunities for investments.

Ghumman said the NYSE had a legislated a system to manage its transactions and Pakistan would have to study it to find out how it could be replicated.

He said that to make the Karachi Stock Exchange (KSE) attractive and to control frequent fluctuations that shook confidence of investors, legislation would be needed. "There is need to monitor fluctuations in the market, which bring uncertainty and loss to those who do not have holding capacity. We will have to consult the NYSE for legislation," he added.

The minister said that all the stakeholders such as stock markets, regulators and investors would have to study the system, take guidance from success stories and draw a plan that could lead to the process of monitoring fluctuation in stock markets.

Ghumman said that it was a chance meeting with Executive Vice President of Global Client Group, NYSE, Noreen Culhane, at the roundtable meeting where continued erratic behaviour of Pakistani stock markets came under discussion.

He said that the NYSE had shown interest in helping Pakistan in drawing legislation to check rapid fluctuations in "our stock exchanges." He said Pakistani markets were attractive for foreign investors, but they feared abrupt fluctuations, which were too frequent and, at times, disastrous.

"Once the erratic behaviour of the market has been checked through a legal process/legislation, foreign investment and number of foreign buyers would multiply many more times," he said.

APP adds: The minister said the American entrepreneurs eyed Pakistan as one of the most attractive destinations for investment. "The American business leaders say they have great confidence in Pakistan's economic potential and investment prospects as the country now has corruption-free leadership, that is committed to its economic development," the minister said. Ghumman, who also met the chief executive officers of various companies, told newsmen that AES Corporation was interested in setting up a plant for generating 5000 MW of energy from coal in Pakistan.

Leading companies, including Ethan Allen Corporation, a mega furniture chain, Merrill Lynch, Sweet Water International, Xerox were also looking at Pakistan to expand their business, the minister said, and expressed the hope that these companies would come in a big way and push forward Pakistan's economic growth.
 
Textile industry: one-year relief from EOBI, Sessi under study: EPB


KARACHI (September 20 2006): The government is considering exempting the textile industry from the Old-Age Benefit Institution (EOBI) and the Sindh Employees Social Security Institution (Sessi) deductions for one-year to bring the cost of doing business down as huge sums are paid in these heads.

Minister of State and Export Promotion Bureau (EPB) Chairman Tariq Ikram stated this during a visit to Al Abid Silk Mills, here on Tuesday. He said the textile industry paid huge money to both the EOBI and Sessi, and if the industry gets one-year relief the business would flourish and exports would also get boost as well.

The EPB chief said the worker relief institutions would not be deprived of their due share, adding the government would pay them during the period. He offered the Al Abid Silk Mills to establish a warehouse near Port Qasim for its finished goods. He also offered that consultant for any field that required by a company from the EPB then the Bureau would slash the fee of the consultant to 50 percent.

Al Abid Silk Mills CEO Nasir Sattar informed the state minister that the decline in bedwear exports were nearly 20 percent and this was occurred after quota regime. He said that the reason for the disaster was high cost of inputs ie gas, electricity, banks mark-up, taxes, and non-availability of zero-rating atmosphere.

He cited examples of India and Bangladesh where governments have provided conducive environment to their entrepreneurs. Due to these incentives the international buyers attracted there and exports of these countries were growing.
 
Cooperation with China growing in oil and gas sector: Jadoon


ISLAMABAD (September 20 2006): Federal Minister for Petroleum and Natural Resources, Amanullah Khan Jadoon has said that Pak-China co-operation in the oil and gas sector is rapidly growing for the mutual advantage.

He was talking to a delegation from China Xinjiang Petroleum and Allied Services, headed by Youting Kou, General Manager, who called on him and discussed investment opportunities in the oil and gas sector.

The minister said that the government was providing attractive package of incentives to investors in the onshore and offshore oil and gas exploration and it would welcome company's investment in these sectors. Jadoon also highlighted the salient features of the investor-friendly policies of the government and the ongoing oil and gas exploration activities in the country.

Kou, head of the Chinese delegation, briefed the Minister on Xinjiang Petroleum and its activities in the oil and gas sectors and expressed his keen desire to participate in the exploration activities in Pakistan. Minister of State for Petroleum and Natural Resources, Mir Muhammad Naseer Mengal, Secretary Petroleum, Ahmad Waqar, Additional Secretary Shaukat Hayat Durrani and acting Managing Director OGDCL Mubbashar A Zafar were also present during the meeting.
 
IPI gas talks: Ahmadinejad may invite Singh and Musharraf by November-end: Kasuri

NEW YORK (September 19 2006): Iran President Mahmoud Ahmadinejad is likely to invite President General Pervez Musharraf and Indian Prime Minister Manmohan Singh for a negotiated settlement of the proposed Iran-Pakistan-India gas pipeline, after the consultants appointed to work out benchmark pricing recommendations submit their report by the end of November 2006.

Talking to newsmen at Roosevelt Hotel on Sunday, Foreign Minister Khurshid Mahmud Kasuri said that the gas pipeline project "is in the interest of the three countries, and it will finalise at some stage".

He said that the consultants appointed to find out benchmark pricing formula were expected to come up with their recommendations in early November. "Once it is done, there is a possibility that Iranian President Ahmedinijad invites President Musharraf and Prime Minister Manmohan Singh for a negotiated settlement," he added.

He said that Pakistan is a growing economy and its needs of energy resources are expected to grow proportionately. The gas reserves of Pakistan are likely to last only about 10 to 115 years as against the estimated target of 40 years. More energy sources were to be found out, he added.

About the delivery of super-sophisticated fighter jets, Kasuri said that Pakistan is not oblivious to its political, economic and defence needs and it would not take decisions that would compromise with its sovereignty.

"Pakistan has ensured that there are no bottlenecks in the delivery of F-16s, and the country is in the serious business of buying aircraft that suit its defence needs."

He said that Pakistan has ensured that the past bitterness in F-16s deal would not be remembered. "We have ensured that the past experience is not repeated."

He made it clear that Pakistan "is in the business of buying the aircraft that are of high quality" and fulfil the requirements of its air force. "Pakistan is not looking for remote-controlled toys; we need high-performance aircraft. Pakistan is paying a hefty sum of $5 billion, and what the country is acquiring is - bang for the buck."

He brushed aside all suggestions that the United States has laid down preconditions for the sale and said that the United States "has not set any unusual preconditions" for sale of the aircraft to Pakistan. "The only condition that is there pertains to non-transfer of the technology, which is a general rule in all such deals."

On the prospects of a bilateral investment treaty with the United States of America, Kasuri said that a lot of pertinent issues have been resolved, but added that it was not likely to conclude during the current visit.

However, he said, there was sustained inflow of American investment into various promising areas of Pakistan's economy.

Pakistan, he said, would safeguard its interests in respect of concluding the bilateral investment treaty with the United States.

Kasuri said that the upcoming meeting between President Musharraf and President Bush in Washington would review bilateral co-operation in an array of fields including energy, economy, education, science and technology, etc. "The meeting has significance in that this is for the first time that the two leaders will be meeting in the wake of Pakistan and US reaching a strategic partnership in March this year during the American President's visit to Islamabad. Since then, the bilateral strategic dialogue has picked up between the two partners and the two presidents now will have the opportunity to review progress in this respect," he added.

President Musharraf's visit would focus on furthering Pakistan-US ties in a broad range of fields, he said, and brushed aside the suggestion that Afghanistan might become a major issue in view of Afghan President also visiting Washington immediately after Musharraf's talks at the White House.

He expressed hope that there would be progress vis-à-vis establishment of reconstruction opportunity zones in the tribal areas. The idea was floated and discussed during President Bush's visit to Islamabad.

On the North Waziristan issue, Kasuri made it clear that Pakistan would not be pulling out the troops from the area, and "in fact, would be able now to patrol the border region effectively". The deal with tribal elders is aimed at isolating the extremists and 'weaning away' the youth from the influence of extremist elements.

Under the agreement, the tribal leaders have assured to check cross-border movement. They have committed not to allow any foreigner indulging in extremism and violence.

In reply to a question, he said that if the deal proved successful, it might be replicated by Afghanistan government. "This is a holistic approach having military, political, administrative and economic and reconstruction aspects."

Briefing journalists about the Brussels and Havana visits and meetings of the President with world leaders, Kasuri said these were useful in the sense that they provided an opportunity to clear misconceptions and misperceptions about the various policies Pakistan is pursing to find out peaceful solutions to its internal as well as external problems.

He said that the meeting between President Musharraf and Prime Minister Manmohan Singh was marked with flexibility and boldness. There was a message that the two countries could resolve the outstanding disputes.

When asked whether Pakistan was sending troops to Lebanon to be included in the UN peacekeeping mission, he said that no such decision had been taken. "Only army experts for mine clearing in the war-hit areas will go."
 
Wednesday, September 20, 2006javascript:; http://www.dailytimes.com.pk/print.asp?page=2006\09\20\story_20-9-2006_pg5_8

KARACHI: Ufone, one of the major cellular service providing company of Pakistan, on Tuesday announced largest-ever expansion of its network at a cost of $550 million which will push its total investment to $900 million in the country.

Speaking at a press conference in Karachi, Chief Executive of the Ufone Babar Khan told journalists the envisaged plan focuses on the expansion of the network in terms of capacity and coverage in existing and new cities besides providing high-speed wireless data services based on EDGE technology.

With the help of the new investment, the cellular company in the next one and a half years would be in a position to offer uninterrupted coverage to its clients from Karachi to Peshawar.

Giving the details of latest expansion plan of Ufone, he said that it will not only change the current scenario of the local telecom industry, but will also give new meanings to quality service and customer satisfaction.
 
ISLAMABAD: Tullow Oil Pakistan (Ltd) on Tuesday expressed interest to invest $5 billion in oil and gas sector in remote areas of Pakistan. In this connection a delegation of Tullow Oil led by Paul Mc Dade called on Federal Minister for Inter-provincial coordination Salim Saifullah Khan. The delegation apprised the minister of plans and projects as well as investment made by Tullow Oil Company in oil and gas exploration in Pakistan. The company has so far invested $200 million and further desires to invest $5 billion in oil and gas sector. It has started production from Chachar Oil Field, Sindh, and is presently working on five blocks in NWFP and intends to work on three blocks in Balochistan. Talking to the delegation the minister said prudent policies of the government had made Pakistan a most conducive country for foreign investment in the entire region.
 

KARACHI, Sept 19: The country expects to produce around 3.3 million tons white refined sugar this season starting from October 1, 2006. However, this is going to create a glut in the market because already around 1.6 million tons of unsold sugar stocks are lying in the country.

Contrary to the previous year when prices went sky high, the current season will witness a crash in sugar prices that may even inflict sever damage to growers’ interest and that of the sugar industry, observe sugar analysts.Due to poor harvest of cane crop last year, the country could hardly produce around 2.6 million tons, which was much below the domestic demand. Consequently, the government allowed free import of sugar by the private sector and the Trading Corporation of Pakistan.

At present around 1.6 million tons of sugar stocks are lying with different stakeholders, which will allow the country to have opening stocks of around one million tons at the start of new crushing season. On an average the country consumes around 0.325 million tons per month. This would mean that 0.65 million tons would be consumed before the start of the next season.

Industry sources say presently the TCP was holding around 0.8 million tons of white refined sugar, 0.225 million tons with trade and 0.609 million tons with sugar mills.

The open market has already started witnessing a fall in sugar price which is being quoted at around Rs32 per kg. Sugar analysts feel that once the new crop sugar starts pouring in, the price will further crash and this will imbalance the costing of growers and the industry.

Despite the fact that recent heavy rains in Sindh have damaged around five to 10 per cent of standing sugarcane crop, but it equally proved to be a boon for growers who are now expecting higher yield of cane. As a result of this, the province expects to produce around 1.1 million tons of sugar as against 0.9 million tons produced last year.

Similarly, Punjab is also going to harvest large sugarcane crop this season and sugar production is being estimated to be 25 per cent higher than last year.

Pakistan Sugar Mills Association (PSMA) Chairman Abdul Wajid told Dawn that the coming crushing season would be quite difficult for the growers and industry because in the presence of huge unsold stocks, offtake of sugar from the new crop would be slow and this would create liquidity problem for the industry.

As fallout of this situation, he said, the growers might also have to face some delayed payments from the industry. Mr Wajid also feared that this vicious circle might also directly inflict damage to the banking sector from where huge funds would be taken by the industry for running their industry and purchase of cane.

The PSMA chairman said the sugar industry had no financial strength to bear the brunt of carrying huge inventory for longer period because with a glut in sugar market there would be no immediate offtake of fresh production.

He urged upon the provincial and federal governments to seriously look into the situation and take immediate steps to help avert the ugly situation that might arise with the advent of new crushing season and save the growers and industry from facing financial crisis.

Responding to a question, Mr Wajid said in his opinion the only way out, and that too could be one of many required measures, was to delay the crushing season at least by one month. This will help achieve two objectives. Firstly, it would help the crop get fully matured to have higher yield, and secondly it would further exhaust sugar stocks and create a demand, he added.
 
KARACHI: Speakers at a conference revealed that by 2018-19 usage volume of CNG would be on a par with that of motor gasoline (petrol), however, they mentioned that diesel would sustain its dominating share in oil marketing.

The speakers were unanimous to establish strong networking with international CNG companies to channelise resources and expertise for the development and growth of CNG sector in the country and asked government to provide basic facilities to it.

They were addressing at “CNG Conex-2006 (International CNG Conference & Exhibition)”, jointly organised by National Forum for Environment & Health (NFEH), in association with CNG Stations Owners Association of Pakistan (CSOAP) and HDIP at a local hotel on Tuesday.

City Naib Nazim Nasreen Jalil said that 30 per cent of public transports were emitting hazardous pollutants that were resulting in diseases like cancer, asthma etc. “To prevent this deteriorated situation 15-year old public bus fleet would be replaced with CNG buses” she said, adding “250 to 300 CNG-fitted buses would be on roads by the end of this year.”

Nasreen said that federal government would provide funds of Rs5 billion to bring 8,000 CNG buses to the city and vowed to make double CNG stations in the city which were currently 123 in number.

Malik Khuda Bux, Chairman, CSOAP, said basic objective of this conference was to let international potential investor know that Pakistan was one of the fastest growing countries in usage of CNG. Pakistan had become CNG leader in Asia and third largest user of CNG in world after Argentina and Brazil, he added.

In technical session, Riaz Rashid, Sr Manager, Engineering Development Board (EDB), informed that currently four local companies were manufacturing CNG kits, one was producing dispensers, one was producing compressors and a company was manufacturing priority panels.

CNG-fitted vehicles are touching a figure of 5.5 million across the globe thus showing great opportunities to local companies. Masroor H. Khan from Shell Company apprised that in 2020 CNG share in gas sector would reach to about 6.3 per cent, which was about 1.2 per cent in 2004. He deplored over turnaround time from inception to commission of a CNG station, which took approximately 12 to 18 months and urged to reduce this time period to flourish CNG stations across the country.

It may be mentioned that presently more than 1.1 million vehicles are running on CNG while 1,056 CNG stations are working at the moment in Pakistan. More than 3,500 applications for seeking provisional licence from OGRA (Oil & Gas Regulatory Authority) are in pipeline for establishing CNG stations.

Shahab Raja, Advance Electronics, Amir Hassan, chief executive Tesla Pakistan and others also spoke.
 
ISLAMABAD (September 21 2006): Marubeni Corporation, a Japanese firm, has shown interest in four thermal based projects of 1650 MW capacity, including 450MW Uch-II power project at Kashmore, 400MW at Faisalabad and two projects of 800MW and 350MW at Chichokimalian, which would be offered through International Competitive Bidding (ICB).

The intention to participate in tenders was expressed by a six-member Japanese business delegation, headed by Kazuhiko Sakamoto, Sr Executive Vice President of Marubeni Corporation at a meeting with Pakistani delegation, led by Federal Minister for Water and Power, Liaquat Ali Jatoi on Wednesday.

The meeting was informed that the company had successfully implemented and executed a number of power projects world over in a span of three decades and was interested to invest handsome capital in power sector in Pakistan. As of today, the company has completed EPC projects with an aggregate capacity of about 69,000MW, and is currently constructing 20 power plants around the world.

The company is also interested to increase its export of electrical equipment like generators, turbines and other machinery to Pakistan. The company had participated in the ICB for three thermal projects and was confident of submitting a competitive and responsive bid, it was further informed.

While welcoming the Japanese delegation, the Minister informed about the simplified procedure for facilitating foreign investment particularly in power sector.

The delegation was further informed that a flexible regime for foreign investment exists in the country and no procedural problem would impede them from investing in power sector.

The minister apprised the delegation that the power sector in Pakistan had a great potential for making profitable investment in the country as the growing demand of power has been registered as 10-12 percent.

Jatoi further said that Pakistan had cordial economic relations with Japan and the visit of the delegation would further boost trade and economic co-operation between the two countries.

The leader of the Japanese delegation expressed satisfaction over the economic situation and apprised the Pakistani side that the company had a vast experience in the power sector.

The minister assured the delegation of his full support to facilitate the company for investing in the power sector and invited it to participate in the ICB of other power projects, and assured further that the competition would be based on transparency and equal opportunities for all intending investors.
 
ISLAMABAD (September 21 2006): While finding a quick solution to worsening electricity shortage problem, Wapda on Wednesday signed an emergency power supply agreement with Alstom Power Rental (APR), a US-based company, for instalment of a 136 MW power plant in Sheikhupura.

The agreement provides that Alstom Power Rental will install the plant, on rental basis, and make it operational within 120 days. The plant will be operated and maintained by APR for 36 months, with the agreement renewable if the two parties intended to carry on the arrangement on long-term basis. The project will cost APR about $117 million.

The agreement will help Wapda plug power supply/demand gap without any capital investment. The tariff has been structured on the basis of Wapda's existing aggregate tariff for protection of consumers' interest. After singing the agreement APR president John Campion committed to Wapda about commissioning the plant within the stipulated time.

The installation of the power plant takes 24-36 months to go into operation. He termed the agreement as a landmark project for Pakistan and hoped that it would greatly contribute towards resolving its energy crisis. John added that APR has undertaken the fast track power projects in many countries like Sri Lanka, Haiti, and Mexico. The project is likely to impact other IPPs, which will have to compete with APR's aggressive tariff terms and timeline for the project.

John appreciated Wapda chairman Tariq Hameed and his team's co-operation to install the project on highly competitive terms. He said that the project would be a good addition to Pakistan's power generation capacity.

APR was awarded the project through a competitive bidding process. Keeping in view the on-going energy shortage, Wapda had invited proposals for the setting up of power plants on rental basis through press on July 11, 2006. APR was one of only two parties, which bid for the project. Oklahoma-based Walters Power International (WPI) and Lahore-based Associated Group (AG) are working with APR for setting up of the project.

Oklahoma former Governor David Walters, who is also WPI president, on the occasion said that the investment climate in Pakistan has undergone a dramatic change and it allows the foreign investors to come up with critical projects. WPI is involved in Pakistan for different projects for the past 10 years.
 
CAIRNS (September 21 2006): Federal Minister for Commerce, Humayun Aktar Khan met with Deputy Prime Minister and Minister for Trade of Australia, Mark Vaille here on Wednesday. Both the ministers considered the proposals put forth by Pakistani and Australian officials as a result of Joint Trade Commission (JTC) meeting between the two governments.

Secretary Commerce of Pakistan, Asif Shah headed the delegation. Both the ministers showed their resolve to continue this process of trade negotiations and to find ways and means to increase bilateral trade through better market access. The Australian Minister was very cordial and welcomed the suggestions made by Pakistani side.

Humayun Akhtar khan, who is attending Ministerial meeting of Cairns Group of WTO member countries, also discussed Doha Development Agenda in the context of stalled WTO talks with his Australian counterpart Mark Vaille. Both the Ministers agreed to work in a cordial manner with each other and other trading partners to restart the negotiations as soon as possible.
 
Short selling allowed in November futures: KSE-100 index recomposed


KARACHI (September 21 2006): The Securities and Exchange Commission of Pakistan (SECP) has allowed short selling in November futures contract with the condition of adopting necessary changes in KAT (trading software).

In a letter to Karachi Stock Exchange, the regulator said that although the matter was communicated earlier, but KSE has now shown its inability to bring about requisite changes in the KAT to allow for short sale under the new system, even though KSE is already monitoring the five percent of the free-float position limit imposed on the brokers in futures market and is also monitoring short sale in excess of Rs 50 million.

The regulator's letter said that in view of the fact given above that KSE is not ready to allow short sale under the new system, SECP has no option but to continue the ban on short sale for the October Futures Contract. Short sale shall, therefore, be allowed from November Futures Contract after KSE brings about necessary changes in its system and adopts the new system.

Re-composition: The Karachi Stock Exchange (Guarantee) Limited (KSE) has carried out the re-composition exercise and the details of the changes in the KSE-100 index companies for the review period from March 2006 to August 2006, based on the re-composition rules of KSE-100 Index.

The re-composition exercise has been carried out pursuant to the decision taken by the Board of Directors of the Exchange in their meeting held on March 29, 2004, whereby the management has been authorised to carry out the exercise of re-composition by itself. In aggregate, three companies would be affected due to re-composition process. The following is the details of Incoming and Outgoing companies:

Incoming companies are including Meezan Bank Limited, Kohat Cement Company Limited and Pakistan International Container Terminal Limited all three under the reason of Market Capitalisation Based Rule while the outgoing companies are including Kohinoor Textile Mills Limited, Nishat (Chunian) Limited and Telecard Limited all under the Market Capitalisation Based Rule.

The recomposed Index, based on the prices of August 31, 2006, will capture the market capitalisation to the extent of 90.29 percent of the total market capitalisation as compared to 90.08 of the current Index. The revised Index will be implemented with effect from October 02, 2006, and the revised/recomposed list of KSE-100 Index companies is as under:

CLOSE - END MUTUAL FUNDS

01. PICIC Growth Fund*

02. PICIC Investment Fund

MODARABA

03. Fayzan Manufacturing Modaraba*

LEASING COMPANIES

04. Orix Leasing*

INVESTMENT BANK/INVESTMENT COMPANIES./SEC COMPANIES

05. Arif Habib Securities Limited

06. Jahangir Siddiqui & Co Limited

07. PICIC*

COMMERCIAL BANKS

08. Allied Bank Limited

09. Askari Commercial Bank Ltd

10. Bank AL Habib Limited

11. Bank Alfalah Limited

12. Bank of Punjab

13. Faysal Bank Limited

14. Meezan Bank Limited

15. Metropolitan Bank Limited

16. NIB Bank Limited

17. MCB Bank Limited

18. National Bank of Pakistan Ltd*

19. PICIC Commercial Bank Ltd

20. Prime Commercial Bank Limited

21. Saudi Pak Commercial Bank Ltd

22. Soneri Bank Limited

23. Union Bank Limited

24. United Bank Limited

INSURANCE

25. Adamjee Insurance Co Ltd*

26. EFU General Insurance Co Ltd

27. I. G. I. Insurance Co Ltd.

28. New Jubilee Insurance Co Ltd

29. Pakistan Reinsurance Co Ltd

TEXTILE SPINNING

30. Gadoon Textile Mills Ltd*

TEXTILE WEAVING

31. Kohinoor Weaving Mills Ltd*

TEXTILE COMPOSITE

32. Azgard Nine Limited

33. Nishat Mills Limited*

WOOLLEN

34. Bannu Woollen Mills Limited*

SYNTHETICS & RAYON

35. Dewan Salman Fibre Limited

36. Gatron Industries Limited

37. Ibrahim Fibres Limited*

JUTE

38. Thal Limited*

SUGAR & ALLIED

39. J.D.W. Sugar*

CEMENT

40. Attock Cement Pak. Limited

41. Bestway Cement Limited

42. Pakistani Cement Co Limited

43. Cherat Cement Co Limited

44. D. G. Khan Cement Co Ltd

45. Fauji Cement Company Ltd

46. Kohat Cement Company Ltd

47. Lucky Cement Limited*

48. Maple Leaf Cement Factory Ltd

49. Pioneer Cement Company Ltd

TOBACCO

50. Lakson Tobacco Co Ltd

51. Pakistan Tobacco Co Ltd*

REFINERY

52. Attock Refinery Limited

53. Bosicor Pakistan Limited

54. National Refinery Limited*

55. Pakistan Refinery Limited

POWER GENERATION & DISTRIBUTION

56. KESC

57. Kohinoor Energy Limited

58. Kot Addu Power Company Ltd*

59. The Hub Power Co Ltd

OIL & GAS MARKETING COMPANIES

60. Attock Petroleum Limited

61. P. S. O*

62. Shell Pakistan Limited

63. Sui Northern Gas Pipeline Ltd

64. Sui Southern Gas Co Limited

OIL & GAS EXPLORATION COMPANIES

65. Mari Gas Company Limited

66. OGDC*

67. Pakistan Oilfields Limited

68. Pakistan Petroleum Limited

ENGINEERING

69. International Industries Ltd*

AUTOMOBILE ASSEMBLER

70. Al Ghazi Tractors Limited

71. Atlas Honda Limited

72. Honda Atlas Cars Limited

73. Indus Motor Company Ltd

74. Millat Tractors Limited

75. Pak Suzuki Motor Co Ltd*

AUTO & ALLIED

76. General Tyre & Rubber Co*

CABLES & ELECTRICAL GOODS

77. Siemens Engineering Co Ltd*

TRANSPORT

78. PNSC

79. P. I. A. C. "A"*

80. P. I. C. T

TECHNOLOGY & COMMUNICATION

81. PTCL "A" *

FERTILISER

82. Dawood Hercules Chemicals Ltd

83. Engro Chemical Pakistan Ltd

84. Fauji Fertiliser Bin Qasim Ltd

85. Fauji Fertiliser Co Limited*

PHARMACEUTICAL

86. Abbott Laboratories Limited

87. GlaxoSmithKline Pak. Ltd*

CHEMICAL

88. Clariant Pakistan Limited

89. Colgate Palmolive Limited

90. ICI Pakistan Limited*

91. Pakistan PTA Limited

PAPER & BOARD

92. Packages Limited*

VANASPATI & ALLIED

93. Wazir Ali Industries Limited*

LEATHER & TANNERIES

94. Bata Pakistan Limited*

FOOD & PERSONAL CARE PRODUCTS

95. Nestle Milkpak Limited*

96. Rafhan Maize Products Limited

97. Unilever Pakistan Limited

GLASS & CERAMICS

98. Ghani Glass Limited*

MISCELLANEOUS

99. Dreamworld Limited

100. Pakistan Services Limited*
 
Low tax-to-GDP ratio: documentation of agriculture, services sectors needed early: CBR

ISLAMABAD (September 21 2006): The low contribution of agriculture and services sectors in the tax-to-GDP ratio points towards immediate need of documentation of the untapped sectors and services. A CBR report said that the mismatch between the sector-wise share in the tax and GDP was one of the major reasons for low tax-to-GDP ratio in the country.

The share of agriculture in GDP was 20.2 percent and 1.2 percent in taxes. Manufacturing sector's share in GDP was 17.1 percent and in taxes 62 percent while the share of services sector in GDP was over 50 percent and its share in taxes was 32.8 percent.

Within services, the share of transport, storage and communication in GDP was 13.8 percent and in taxes the share was 4.5 percent; the share of construction sector in GDP was 2.2 percent and its contribution in taxes was 2.9 percent; and the share of wholesale and retail trade in GDP was 16.9 percent and 2.8 percent in taxes.

The report said that the low contribution of agriculture and services sectors highlighted the need to diversify to untapped areas. The report specified that the reasons for low tax-to-GDP ratio included the narrow tax base, as large contribution in taxes was made by administrated sectors like POL, services and utilities.

Other reasons for low tax-to-GDP ratio are: mismatch between sectoral shares in tax and GDP ratio; narrow tax base; poor compliance by taxpayers; too many exemptions; presence of large underground economy and informal sector; leakage and evasion due to administrative weaknesses and limited efficiency gains; and too much centralisation and adverse taxpayers' perception that the collected amount was not spent on basic needs, the report added.
 
Status
Not open for further replies.

Latest posts

Back
Top Bottom