Re: Pakistan: A most surprising success story - Newsweek (Merged)
The rise of the Massi culture. No home is without a good massi these days. Bless them :)
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Pakistan Expects $5B Foreign Invest Next FY-Govt Official
More than $5 billion in foreign direct investment should flow into Pakistan next fiscal year, up from at least $3 billion expected this fiscal year, a Pakistani official said Sunday. Umar Ahmad Ghuman, minister of state for privatization and investment, said he expects foreign investment to flow into industries such as real estate and agriculture in the next fiscal year, which begins July 1. Pakistan took in $1.524 billion in FDI in its last fiscal year, which ended June 30, 2005. Such targets for growth in foreign direct investment come as Pakistan works to open up its state-dominated corporate sector and make it faster and easier for private investors to invest. Pakistan’s gross domestic product should grow 7.5% this fiscal year, which ends June 30, and by at least 6% next fiscal year, the minister said on the sidelines of the Boao Forum for Asia, a gathering of government and business leaders. Wednesday, Pakistan’s central bank said that the country’s GDP growth this fiscal year is likely to be below 7% and that inflation still poses a challenge to macroeconomic stability. Pakistan’s economy grew 8.4% in the last fiscal year - the highest rate in two decades.
http://framehosting.dowjonesnews.com/sample/samplestory.asp?StoryID=2006042306280000&Take=1
Re: Pakistan: A most surprising success story - Newsweek (Merged)
silly billy and every one thank you for this wonderful thread
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Guys, check out these AMAZING jumps in manufacturing in the last five years! I mean, this SEEMS to be a clear indication of prosperity.. But is it sustainable?
Poverty and unemployment: tough times ahead
By Zafar-ul-Hassan Almas
Pakistan’s economy has gained more strength during the course of last four years. Its macroeconomic indicators have posted marked improvement indicating sustained growth.
During the last five years (2000-05), there is a tremendous rise in inflow of remittances, exports, micro-credit, development expenditure, revenues, and low inflation rate which has only gone up last year but it is still below double-digit level.
The government’s poverty reduction strategy being followed for the last six years include: sustaining higher growth momentum, promoting social development, pursuing good governance and protecting the vulnerable segments of the society. Poverty and social sector related expenditures under the strategy are the most important fiscal intervention to target the poor and vulnerable sections of the society.
In 1997, Noble Laureate Amarta Sen said “Unlike agricultural growth, which often reduces poverty only by increasing mean consumption, the government expenditure reduces poverty both by increasing mean income and improving the distribution of income”.
The spending on social sector witnessed a rise during the last five years. It was less than Rs100 billion six years ago and it increased to over Rs300 billion last year.
Over the last six years, the government has spent over Rs1 trillion in this area and is expecting positive results. Pakistan has invested heavily on infrastructure projects during the last three years which has enhanced the level of economic development.
Have such policies and programmes improved the living conditions of the people? Have they reduced poverty and improved social indicators? These are valid and frequently asked questions. The efforts to strengthen the economy will not be completed unless macroeconomic gains trickle down to masses in terms of improved living conditions.
The concept of pro-poor growth has recently emerged in the diction of economics. It is not the economic growth per se but quality of the growth that makes dent on poverty. The macroeconomic instability arising from unsound policy has a direct bearing on the well-being of the poor. The pro-poor growth means growth with macroeconomic stability and sectoral composition of growth matters depending on extent of labour intensity.
Agriculture and construction sectors are invariably more labour intensive than manufacturing and services sector. But within manufacturing and services sectors there are pockets of labour intensive sub-sectors. The small and medium industries contribute bulk of the manufactured exports and wholesale and retail trade account for bulk of services sector employment. The crop sector in the agriculture for example generates more than 40 percent of rural employments directly.
The major crop component witnessed a 57 per cent rise in value addition in nominal terms which implies transfer of huge amount to rural areas. When we see patterns of economic growth during the last three years in this backdrop, the pro-poor growth accounted for around 70 per cent of economic growth during the last year’s growth of 8.4 per cent and significant contribution to growth in 2002-03 and 2003-04.
The industrial development is crucial because of limited capacity in the agriculture sector for the employment of growing labour force. The government has provided various incentives to boost industry and increase competitiveness. The large-scale manufacturing grew at an average rate of 11.1 per cent during the last five years which is highest persistent growth for any period in recent economic history.
Such an impressive growth in industrial production is not concentrated on few items; rather it is broad-based with construction related industries, consumer durables, capital goods etc witnessing tremendous growth.
Some five years ago, the country was producing nine million tons of cement. This year the production is likely to touch over 14 million tons. Five years ago, the country was producing some 33,000 cars. This year the production is expected to touch 125,000. Five years ago, the country was producing 95,000 motorcycles. This year, it is likely to produce 450,000. The prices of motorcycles have nosedived.
Considerable advancement has been made in the production of consumer durables. Five years ago, the country was producing 121,000 TV sets. This year the country is expected to produce 851,000 TV sets.
The prices have also come down. Five years ago, the country was producing 4821 air conditioners. This year 140,000 air conditioners will be produced. Similarly, five years ago, the country was producing 211,000 refrigerators. This year, the target is to produce 630,000 refrigerators.
These are the clear examples of growing consumer demand and emergence of a strong middle class. This is also a clear indication of the rising levels of income. The growth in large-scale manufacturing is not limited to consumer durables. This must have generated some employment. Call centres, information technological explosion, exploding mobile business and growth in many sectors should have created employment.
As a study by Centre for Research on Poverty Reduction and Income Distribution (CRPRID) suggests that poverty is characterized by large amounts of clustering around the poverty line. This suggests that there exists a high proportion of vulnerable population which is likely to move in and out of poverty as a result of changing economic conditions.
The concentration around poverty line implies that the poverty incidence can change dramatically or a large section of the population can be categorized as vulnerable – i.e. it is likely to fall into poverty as a result of a shock or move above the poverty line through targeted interventions of the government.
Estimates suggest reduction in poverty between 1990-91 and 1993-94, by approximately five percentage points, followed by an upward spike of four percentage points to 1998-99, and reduction of 6.7 per cent between 2001 and 2005. The wide swings in poverty in Pakistan are a norm rather than an exception.
Poverty is a concept that spans a range of dimensions, such as health, education, mortality and security that is not correlated with conventional measures of income poverty. But we have to live with the international norms and calculate the income poverty as others do.
There is another kind of statistics which reveal our poor show on these counts.
There can be a debate over improvement in the statistics and the government should not be complacent over a meagre reduction in poverty to the extent of 6.9 per cent.
More than one-fourth of our population lives below poverty line and difficult times are ahead.
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Is it sustainable? Absolutely positively YES!
As long as Pakistan is in American camp, our credit rating will be high, resulting in more money being pumped into the economy.
Re: Pakistan: A most surprising success story - Newsweek (Merged)
As long as Pakistan is in American camp, our credit rating will be high, resulting in more money being pumped into the economy.
And what'll happen after we'll leave em?
Re: Pakistan: A most surprising success story - Newsweek (Merged)
MashAllah, couldn't be more prouder of this govt's achievement.
Oveall, Pak is doing better as compared to 10yrs before. Due to the hardwork of our govt and sincere people of the private sector, I have no doubt that we can reach the economic ladder as the US did. It will definitely take time but things are getting better for most people and it wasn't the case during the late 90s. I hope it goes well and smooth in the future as well. InshAllah.
Umer
Re: Pakistan: A most surprising success story - Newsweek (Merged)
NESPAK wins mega project in Iran
**LAHORE: National Engineering Services Pakistan (Pvt) Limited (NESPAK) achieved a major breakthrough in its overseas business development by winning a highly competitive mega project in Iran.
It is a World Bank funded project which will cost $120 million, and the Iran Government short-listed six leading international firms of consulting engineers including NESPAK to bid for the project, said a company spokesman on Wednesday. The project relates to development of databases and computer models for integrated land, water and environment management in northern Iran along the eastern Caspian Coast. It involves the use of latest satellite technologies and Geographic Information System (GIS) for computerising earth surface data consisting of thematic map layers such as land, soils, elevation, geology, slopes, roads and floodplain layers and their integration with hydrologic, groundwater, watershed and river flow models.
NESPAK has nominated highly qualified and experienced professionals to execute the Iranian project, said the spokesman. APP**
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WOW!! What an achievement by NESPAK. Their work within Pakistan is highly impressive and now they are getting projects from other countries as well.
Re: Pakistan: A most surprising success story - Newsweek (Merged)
It’s always encouraging to read that major western entrepeneurs like the EasyJet group, are investing in Pakistan.
£219m easyHotel expansion outside Europe
easyGroup announced that its hotel arm – easyHotel – signed a £219m master franchise agreement with Istithmar Hotels – a subsidiary of Dubai-based alternative investment house Istithmar PJSC – to open a chain of 38 budget hotels across the Middle East, North Africa, India and Pakistan within the next five years. easyHotel will open six properties in Dubai, eight in India, three each in Saudi Arabia and Pakistan, two each in Lebanon and Egypt and one each in Sharjah, Kuwait, Bahrain, Oman, Abu Dhabi, Ras Al Khaimah, Qatar, Morocco, Turkey, Syria, Libya, Jordan, Tunisia and Algeria. Each hotel will contain between 80 and 120 rooms.Eight of these hotels will be operational by the end of 2007 and a further 18 will be operational by the end of 2008. The remaining 12 will be operational over the following three years. The expansion is a response to easyGroup’s perceived market demand for branded budget hotels in view of mid-scale segment growth in these regions. Stelios Haji Ioanno, easyGroup chair, said: “Our expansion into these areas demonstrates our strategy of building our brands globally by working with world class partners like Istithmar PJSC.” The hotels offer short-stay travellers small, no-frills and simply furnished rooms at budget prices. The company opened hotels in London and Switzerland in 2005.
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Two European carmakers to set up plants
Two more European car manufacturers will introduce their latest model cars in Pakistan by the end of this calendar year. The government of Pakistan has already allowed the two companies to import their complete build units (CBU) initially.** French company Renault will introduce to the Pakistanis its Logon models. The government has also allowed a consortium of four investors, including an Arab and three Pakistani investors, to introduce European Black Cap car in Pakistan. **“The federal government is working on an auto policy that would be announced in the next few weeks,” an industry source told the Daily Times here on Monday. “The government is likely to announce a number of incentives for these two European carmakers.” “The incentives to be announced by the federal government will help the carmakers to set up their plants anywhere in the country,” the source said. French Renault carmakers had already introduced their vehicles in India and now they are looking towards the Pakistani auto market. “The company has promised to the Pakistani government to initially invest Rs two billion in Pakistani auto industry and it would import 1000cc to 1300cc cars into the market,” the source said. The company has demanded a further reduction in customs duty from 35 to 15 percent in the coming budget and exemption from all taxes for the next five year, the source said. Similarly, a Pakistani consortium, SPL, has been allocated several acres of land in Dhabeji, a place close to Karachi.
The consortium with an initial investment of Rs 2.5 billion would set up a Black Cap car-manufacturing plant in Pakistan and it would introduce 800cc to 1300cc cars. The ministry of finance has allowed the consortium to import 300-400 CBU cars in Pakistan. “Both the new investors are looking towards the government’s auto policy, which is to be announced,” the official said. Two European cars, BMW and Mercedes, are already plying in Pakistan and considered prestigious despite being highly expensive. “The new comers are introducing vehicles below 1300cc power engines and they should be so priced that they should compete with other vehicles like Suzuki, Toyota and Honda,” an analyst said. According to sources, the government has set up a committee, headed by Prime Minister Shaukat Aziz, to listen to complaints of the local auto industry. The government has refused to give any new incentive to the local auto industry, an industry official said.
http://www.dailytimes.com.pk/default.asp?page=2006\05\02\story_2-5-2006_pg5_4
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Mashallah very nice developments, may Allah swt help Pakistan sustain the growth. The next big achievement I would like my Pakistan to have is justice system, may Allah swt help us, aameen.
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Development budget increased by 109% since 2002-2003](http://www.paklinks.com/gs/showthread.php?t=215723)
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Wish we could gather decent funding to extend our motorway system, and availability of clean drinking water. Just these two improvements will fix thousands of ills afflicting our society.
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Boeing places $100m manufacturing orders with Pakistani companies
KARACHI: US company Boeing has placed electronics manufacturing orders worth $100 million with Precision Engineering Company and Pakistan Aeronautical Complex. This was stated by Director Boeing Company Seattle, USA Miguel R Santos at a seminar on “Electronics and Electrical Contract Manufacturing”, held recently. According to EPB, the objective of the seminar was to sensitize the related Pakistani industry and obtain feedback on the subject. He said that in next two to three years, Boeing’s outsourcing could surpass $1 billion mark for electronics and electrical manufacturing companies.
“Boeing is not only placing the orders but also providing the technical know-how by deputing their engineers to train Pakistani counterparts”, Santos added. He pointed out that US aircraft manufacturing company has even supplied the machinery needed to prepare these parts used in their 777 aircraft model series.
The United States of America alone was out-sourcing annually over $ 600 billion worth of products to the developing countries and growing rapidly, he noted. This unique opportunity provides increased employment and growth in Pakistan from the production and enhanced exports when such goods are exported back to the buyer. Vice President, Boeing Glen A. Green and a Pakistani-American entrepreneur Pervaiz Lodhi also spoke. **“The Next Industrial Revolution” which is outsourcing and contract manufacturing of electronics and electrical parts by the developed countries to the developing nations like Pakistan. **They said the world market is very large and growing fast as cost of production increases in developed countries and technical capabilities improve in the developing ones. After the Seminar the chief executive and chairman of Philips-Pakistan, Shahid Zaki, director, Boeing Company Miguel Santos and vice president Boeing Glen A. Green, had a meeting with Chairman Export Promotion Bureau Tariq Ikram to discuss this opportunity and outline the way forward. The EPB chairman constituted an action team comprising persons which are experts in their related fields to chalk out plans to capture opportunities for securing outsourcing assignments for Pakistan. Pervaiz Lodhi, President, LED Tronics based in Torrance, California. Miguel R. Santos, Director, Boeing Company based in Seattle, Washington, Sultan ul Arfeen, Arfeen Group of Companies, Shahid Zaki, Chairman & ECO, Philips-Pakistan, Zubyr Soomro, CEO, Citygroup-Pakistan Operations, Mohsin Ali, Secretary General American Business Council of Pakistan, Riaz Khan Executive Director Marketing, Export Promotion Bureau are in the committee. It was decided to set up an electrical and electronic contract manufacturing city for this purpose. In the meantime, Export Promotion Bureau will contract International Trade Center to get their technical expertise in order to launch the project.
http://www.dailytimes.com.pk/default.asp?page=2006\05\04\story_4-5-2006_pg5_6
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Thanks for sharing guys.
Great job Mushy and Aziz.
Pakistan Zindabad 
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Dubai companies line up mega-projects in Pakistan
ISLAMABAD (Reuters) - State-owned Dubai World is in talks with Pakistan to develop major infrastructure projects and manage a port earmarked to become a hub for trade between the Gulf, China and Central Asia, officials said on Thursday. A news release issued by Dubai World quoted Pakistan’s President Pervez Musharraf saying the proposed deal would bolster Pakistan’s historically strong ties with Dubai and the United Arab Emirates. Dubai World, a state holding company, said it was looking for involvement in industrial and public sector infrastructure, including oil and gas related projects, airports and port terminal management, along with industrial parks and free zones. Dubai Ports World and real estate developer Nakheel are the two Dubai World group companies that will lead the ventures in Pakistan. Mohammad Sharaf, chief executive officer of Dubai Ports told a news conference in Islamabad that the company was seeking management of Gwadar, an Arabian Sea port on the coast of Pakistan’s troubled southwestern province of Baluchistan, for up to 50 years. “We intend to grow in this market… In ports, transport and logistics. We believe there are great opportunities here,” Sultan Ahmed bin Sulayem, chairman of both Dubai Ports and Nakheel, told the news conference. Pakistan’s junior minister for investment, Umar Ghuman, said the government was also planning to build five new cities as part of its grand project to develop the region.
Re: Pakistan: A most surprising success story - Newsweek (Merged)
2 Billion Tons Of Copper And 20 Million Ounces,
Reko Diq Reserves estimate
$1.25bn copper, gold reserves discovered
By Khaleeq Kiani
ISLAMABAD, April 13: Major reserves of copper and gold in Balochistan’s Rekodiq area have been discovered which would contribute about $1.25 billion annually to the national economy, it is learnt.
“This is a major discovery by all international standards”, a senior government official told Dawn on Wednesday. The president or the prime minister will make a formal announcement after completing legal formalities, he said.
The Rekodiq mining area has proven estimated reserves of two billion tons of copper and 20 million ounces of gold. According to the current market price, the value of the deposits has been estimated at about $65 billion, which would generate thousands of jobs.
The size of Pakistan’s national economy (GDP) at present is about $104 billion.
Balochistan government has 25 per cent stake in the Rekodiq project. Rest of the 75 per cent stakes of the project have now been taken over on 50:50 basis by Antofagasta of Chile and Barrick Gold of Canada.
“The discovery has ranked Rekodiq among the world’s top seven copper reserves”, said an industry expert requesting not to be named for political reasons associated with ongoing security operation in the province.
“This is a quantum jump…the mineral resources may contribute to the national economy despite inadequate support this sector gets from the government”, he added.
The Rekodiq project is estimated to produce 200,000 tons of copper and 400,000 ounces of gold per year, at an estimated value of $1.25 billion at current market prices. The copper and gold are currently traded at about $5,000 per ton and $600 per ounce respectively in the international market.
The project will, however, require about $1 billion investment to start commercial production by 2010. It has so far consumed about $50 million to prove two billion tons of copper and 20 million ounces of gold.
The presence of a mineral deposits in the area was identified by the Geological Survey of Pakistan in early 1990s in collaboration with BHP Billiton of Australia.
Later in 2000, Tethyan Corporation (TCC) of Australia took over the project from BHP and invested $30 million by raising funds through international listing and drilled over 75,000 meters to prove the reserves.
The TCC has recently been taken over by two of the world’s largest copper and gold mining firms — Antofagasta of Chile and Barrick Gold Corporation of Canada. The market capitalisation of Barrick alone is estimated at over $25 billion. This is the first private sector funded mining venture in Pakistan.
The chairmen of the two mining majors — Jean Paul Luksic of Antofagasta and Gregory Charles Wilkings of Barrick — also had a meeting with Prime Minister Shaukat Aziz on Tuesday to inform him about their successful take over of TCC at 158 million Australian dollars (about $130 million or Rs8 billion).
Pakistan is rich in mineral resources waiting to be tapped by both domestic and foreign investors by bringing in latest techniques and state-of-the-art technology in this sector, the prime minister told the two investors. He said the logistics chain would be improved throughout the country to facilitate the movement of cargo. He hoped that Gwadar Deep Sea Port would be a hub for export of mining products from Balochistan.
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Mashallah 
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Banking assets reach $60bn
State Bank Governor Dr Shamshad Akhtar has said that the banking industry in Pakistan has witnessed a brisk growth in assets in recent years which now stand at over $60 billion. Delivering a speech at the Global Transaction Banking seminar here on Wednesday, Dr Akhtar said Pakistan offered a promising ground for financial experimentation and innovation. “Pakistan’s banking industry has seen a brisk growth in assets which today stand at over $60 billion. Bank’s profitability is at an all-time high and unprecedented, reaching close to Rs93 billion by 2005,” she said. “Aside from higher efficiency, gains in the industry attributable to benefits arising from significant banking sector restructuring and reforms, and high profitability of banks has been achieved because of high interest margins,” said Dr Akhtar.
The SBP governor said that in the period ahead, the financial industry, however, had to be positioned for a more competitive environment and had to cater for more diverse and complex requirements of Pakistan’s consumers and infrastructure. Pakistan, like the rest of Asia, is growing fast and a rise in per capita income, emergence of the middle income group and relative wealth increases all together bring with them new demands for the retail banking industry. “Beside real sector developments and requirements, the financial industry of Pakistan has to catch up fast with the global developments and achieve better financial diversification and strengthen its risk management systems,” said the SBP governor. “In Pakistan’s context, it has to be recognized that while large banks will continue to thrive on volumes of business, which they have traditionally captured given their reach across the country, it is the foreign banks with their competitive edge in global transaction banking that can offer unique and new financial solutions,” she added. Pakistan’s real time inter-bank settlement mechanism is at an advanced stage of installation and is expected to be lived by the 3rd quarter of 2006, Dr Akhtar said.
The coverage of online branches as a percentage of total branches (7,245 branches) has now reached 45 per cent. At this pace, the whole branches network of the banking system will be online in the very near future, which will substantially improve efficiency of the payment system. Usage of cards at POS (Point of Sales) is expanding with the passage of time. This channel recorded remarkable growth of 62 per cent in number of transactions to 13 million transactions in FY05 from 8 million in the previous year. Value of transactions grew by 56pc to Rs42.8 billion in FY05 from Rs27.4 billion in FY04. “The Global Transaction Banking concept, though newer to Pakistani banks, will help service the ever-growing need for Pakistan’s trade and finance and facilitate investors’ awareness about the growing Pakistani economy and markets. We see inter-exchanges like this would further strengthen the transaction banking business in Pakistan,” Dr Akhtar concluded.
Re: Pakistan: A most surprising success story - Newsweek (Merged)
Dubai World sets up deals with Pakistan
Dubai World and the government of Pakistan will jointly undertake large-scale infrastructure projects in Pakistan. Nakheel, a fully-owned subsidiary of Dubai World and the developer of several of Dubai’s mega-projects such as the Palms, The World and Dubai Waterfront, will spearhead efforts to explore investments in the residential, commercial and leisure real estate sectors in Pakistan. Dubai World and the government of Pakistan also discussed potential investment in other commercial activities, including development and management of industrial infrastructure, and development and operation of public sector infrastructure projects, including oil and gas-related works, airports and port and terminal management. Dubai World chairman, Sultan Bin Sulayem, said: “Pakistan is one of the world’s fastest growing economies making it an attractive market for Dubai World. We have a close relationship with Pakistan and would like to further strengthen it by capitalising on opportunities in the country. The Middle East has a huge potential investor base for investments into Pakistan.” President of Pakistan, General Pervez Musharraf, said: “We have a significant shortage of quality housing units across the country, and Nakheel is ideally placed to plug this gap as a result of the expertise it has developed from the various large-scale projects in Dubai.
“The Government is committed to facilitating foreign investment in the country and we will ensure that Dubai World receives the full support of the Government at all times. We have historically enjoyed strong relations with Dubai and the UAE, and this is an excellent platform to further bolster those ties.” Dubai World is a state-owned enterprise of Dubai and is involved in a wide range of commercial activities. It has business interests in the fields of ports and logistics, real estate, and management of free zones.