Moody’s investors Upgrades Pakistan Bond Ratings

Society Pakistan & World Affairs
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Re: Moody’s investors Upgrades Pakistan Bond Ratings

Even though, Pakistan trade deficits has increased and oil price has shot up (less then 20 dollars per barrel before Musharaf came to power, to today’s over 60 dollars per barrel, and Pakistan imports more then 5 billion dollars of that commodity every year), investments (FDI), remittances, exports and Pakistan invisible earnings has grown enough to deal with trade deficits along with increase in foreign exchange reserves without increasing, rather decreasing foreign debt.

All this is happening because Pakistan of today is not loosing dollars to Swiss bank accounts and luxuries of corrupts or their property buying spree in western countries. When thieves like BB and NS are out from power, country is bound to do good, else, Pakistan would have been same old Pakistan even now, a bankrupt country with increasing debt, negligible dollar reserves and prime minister holding begging bowl asking Pakistanis to save Pakistan with slogan ‘Qarz uttaro, mulk sawaro’.

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Re: Moody’s investors Upgrades Pakistan Bond Ratings

Textile exports rose by 26.90% in Nov

After remaining depressed since the beginning of current financial year, the export of textile products finally registered growth in November by depicting the increase of 26.90 percent compared to same month of last financial year. It also depicted a growth of 10.34 percent in November of the current financial year, compared to the preceding month of October of 20006-07, the latest data released by Federal Bureau of Statistics suggested on Friday. However, the export of textile products in the first five months (Jul-Nov) of 2006-07 were slightly down by 1.12 percent compared to the corresponding period of previous year. Despite the slight decline in first five months of 2006-07, the export of textile products in month of November only is encouraging, which argues well for the future exports, analysts of foreign trade opined and noted that it indicates that export of textile products has started recovering from turbulent time, it has been facing since the beginning of the current financial year. The export of textile products stood at $864.93 million in November of 2006-07, compared to $783.88 million in same month of last financial year and $681.57 million in October of the current financial year. The textile products export stood at $4.192 billion in Jul-Nov period of 2006-07 compared to $4.239 billion in the corresponding period of the previous year.

The official statistics showed that export major textile categories, which under performed in first four months, recovered and posted gains in November 2006-07 except cotton cloth. The export of bedwear, knitwear, cotton yarn, readymade garments and art, silk and synthetic textile posted gains in this November compared to same period of the previous year. According to an analyst, the export of textile products should have been registered more gains in view of textile package and research & development (R&D) support, the government announced. “A lot has to be done to sustain this export growth trend because the genuine concerns of textile industry are still to be addressed properly like high cost of production, which is making the country’s textile products uncompetitive in the international market, where its competitors China, India and Bangladesh have a competitive edge because of supplying cheap textile products,” he said. The break-up of export of textile products figures suggests that the export raw cotton increased by 5.19 percent and 13.46 percent in November this compared to November of last year and October of current financial year respectively. The export of cotton cloth, which was in billion dollar export category in the last financial year, posted a gain of 16.07 percent in the month under review compared to October of 2006-07, however declined by 3.57 percent compared to November of 2005-06. The export of knitwear, which also ranked in the billion dollar export category in financial year 2005-06 recorded a substantial increase of 37.13 percent in the said month compared to the same month of the previous year. The export of bedwear, which neared to $ 2 billion in the last financial year also reflected a growth in November 2006-07 by posting a gain of 23.24 and 15.12 percent compared to November 2005-06 and October of this year. The export of readymade garments increased by 11.48 per cent in fifth month of this year compared to same month of previous year. The export of towel increased by 32.13 percent. The export of made-up articles (excluding towels, bedwear) increased by 26.34 per cent whereas cotton carded decreased by 81.09 percent. The export of cotton yarn, which continued to post gain since the start of 2006-07 also recorded a growth of 9.48 percent in November this compared to the same month of previous year.

In other export categories, food group posted a negative growth of 4.15 percent in first five months compared to corresponding period of previous year and declined by 2.98 percent in November only compared to the same month of previous year, however rice export was up by 21.21 percent in first five months of 2006-07. The export of Petroleum group and coal declined by almost five percent in Jul-Nov this compared to same period of previous year, however it rose by 17.75 percent in November this over same month of previous year. The export in the manufacturing group other than textile also decreased by 22.00 percent in the first five months and 14.24 percent in November only.

http://www.dailytimes.com.pk/default.asp?page=2006\12\23\story_23-12-2006_pg5_12

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Re: Moody’s investors Upgrades Pakistan Bond Ratings

^Yeah, I heard, good news.
The exporters still need to improve quality and all, but still good news none the less.

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Re: Moody’s investors Upgrades Pakistan Bond Ratings

Foreign investment into Pakistan is flooding in from all over the world - the Middle East, Europe, USA, China and South East Asia. Singapore in a major foreign investor from S.E. Asia.

Singapore’s PSA to run Pakistan’s Gwadar port](http://www.paklinks.com/gs/showthread.php?t=239912)

Temasek subsidiary to buy $300 million stake in Pakistan lender](Malaysia Business & Finance News, Stock Updates | The Star)

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Re: Moody’s investors Upgrades Pakistan Bond Ratings

Total FDI up by 105% in July-November

The total foreign investment in the country surged by 105 percent to $2.099 billion in July-November 2006-07 compared with only $1.023 billion received in the same period last year. The portfolio investment, which was slow since the beginning of the current fiscal year, started taking off in November, as the country received $623.8 million investment in the local bourses in the last five months of this fiscal, up by 130 percent compared with last year. In 2005-06, the country had received an amount of $270 million as portfolio investment. The direct investment, which was up by 200 percent in the first quarter of this fiscal, slowed down in October and November, but was still higher at $1.476 billion up around 96 percent compared with last year. Last year, the SBP received only $752 million against direct investment. According to the figure released by the State Bank of Pakistan (SBP) on Tuesday, the telecommunication sector received an amount of $410 million from the United Arab Emirates in November this year. Out of which $133.2 million are of the privatization proceeds.

However, big amounts of $393.7 million and $221 million have been received in the financial business, mining and quarrying, the data said. The portfolio investment in the local bourses sufficiently increased in the last two months, an analyst said, which are showing some improvement in the stock markets. However, in the month of December, this investment would be declining, he said. He said: **“The direct investment figures are encouraging for the country. The country has received an amount of $2.099 billion in the last five months, which shows that the government would easily achieve its FDI target of $4 billion for the current fiscal year.” During the outgoing fiscal year, the SBP had received total foreign investment of $3.872 billion. **The Privatization Commission has completed its first Global Depository Receipt (GDR) at the London Stock Exchange (LSE) by selling its share of around $812 million, which has not been included in the portfolio investment. Mohammad Imran, research head at First Capital and Securities, said: “It would be the highest-ever figure of direct investment. Last year the country had received an amount of $1.8 billion in the shape of privatization proceeds out of the total foreign investment of $3.872 received in 2005-06. Recently, the Privatization Commission announced that it would hold Global Depository Receipts (GDR) of the government’s holdings in National Bank of Pakistan, Habib Bank Limited, Allied Bank and the Oil and Gas Development Company Limited to raise foreign investment. The government has announced it would sell GDR on the London Stock Market by the end of this calendar year. Portfolio investment from the USA shot up to $303.1 million in July-Nov 2006-07 compared with $178.1 million in the same period last year. Major investment in the local bourses was from Singapore, which stood at $107.1 million in July-Nov 2006 compared with a withdrawal of $0.8 million in the same period last year. In direct investment, the European Union invested of $709.8 million in the last five months compared with only $150.7 million in the same period last year. The United Kingdom invested $640.4 million in the last five months, while such investment stood at $90.4 million in the same period last year.

http://www.dailytimes.com.pk/default.asp?page=2006\12\27\story_27-12-2006_pg5_1

Punjabian di Thread
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Re: Moody’s investors Upgrades Pakistan Bond Ratings

Pakistan stocks poised to shine in 2007 - analysts

Pakistan’s stock market, one of Asia’s top performers, should grow up to 25 percent in 2007 as an expanding economy is likely to attract more foreign investors despite political risks, analysts said on Thursday. They forecast the Karachi Stock Exchange 100-share index (KSE) to rise 20 to 25 percent next year. The benchmark index, which has had a roller-coaster ride this year, is up about 5 percent since the start of 2006. Friday is the last trading day of the year. The main driver for 2007 will be the economy, analysts said. The government expects 7 percent growth this financial year, up from the 6.6 percent recorded in the year that ended in June. Analysts said liberal rules on foreign investment are also attracting overseas players. “Foreign funds have just 3 to 4 percent holding in the market capitalisation but in terms of free-float, they own one-fifth of the market,” said Mohammed Sohail, director of research at Jahangir Siddiqui Capital Markets.

On Thursday, the KSE’s capitalisation was about $46 billion, while the free-float was close to $9 billion. Foreign investment rose by 130 percent to $623.8 million in the first five months of the current 2006/07 financial year compared with $270.9 million a year earlier. A tentative peace process between old rivals Pakistan and India has also given underlying strength to the market, easing some of the political risk for foreign investors. Risks include the threat of political instability as a result of President Pervez Musharraf’s support for the United States in its campaign against the al Qaeda and the Taliban in Afghanistan. Analysts said dividend yields on blue-chip stocks listed on the KSE are among the highest in Asia at around 6 to 8 percent, compared with 3 to 5 percent in Indian markets. This makes Pakistani stocks the most attractive foreign and local investment vehicles in the region. “Pakistani market offers the highest dividend in Asia and the 10.6 multiple price earning ratio is by all standards very good,” said Sohail. “If foreign funds are aggressive, the index can reach the 13,000-point level in 2007. The probability of foreign funds returning is high especially in the exploration and banking sectors.”

ROLLER-COASTER 2006

The market has been volatile this year, with the KSE index starting at 9,556.61 points, then rising beyond 12,337 points – an all-time high – in April, supported by easier domestic liquidity and a lack of other investment opportunities. But a settlement crisis in the second half of the year and new regulations on risk management hit the KSE index. It closed at 10,058.47 on Thursday. “It’s the nature of the beast,” said Ahmed Reza, chief executive officer of Arif Habib Securities. “Stock markets never have the same growth year after year.” The KSE index has risen almost 10-fold since Pakistan joined the U.S.-led war on terrorism after the Sept. 11, 2001, attacks on the United States.

http://asia.news.yahoo.com/061228/3/2v029.html