Pakistan: A most surprising success story - Newsweek (Merged)

Society Pakistan & World Affairs
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Re: Pakistan: A most surprising success story - Newsweek (Merged)

Pakistan to export Motorbikes now :), i never thought its possible because our locally produced bikes are not all that great but we might export them to Bangladesh, Afghanistan and East AFrican countries.

Govt plans to export 250,000 motorcycles
By Fida Hussain

ISLAMABAD: The government plans to export 250,000 motorcycles in the current financial year and the Engineering Development Board (EDB) has asked the government to finalize the duty drawback facility for motorbikes’ export and incorporate it in the Trade Policy 2006-07, EDB CEO Imtiaz Rasgar told the Daily Times on Wednesday.

If the recommendation of the EDB was approved, large-scale export of motorcycles would begin from this fiscal.

The proposed export would earn foreign exchange of 150 million US dollars for the country, said the EDB vice chairman.

He said that the EDB is demanding nothing extraordinary in the coming Trade Policy. We simply want the government to grant the sector duty drawback facility, which is actually the right of any sector playing a role in the country’s exports.

Mr Rastgar said that the proposed export of motorcycles would be the first step towards the opening up of engineering sector for exports. This will also help the government to diversify exports, which are dominated by textiles having a share of around 70 percent in the total exports.

“The government has been striving for diversification of exports. In this regard, the EDB has sent its recommendation for taking steps on behalf of the government to encourage motorbikes’ export in the current fiscal,” he said.

The motorbikes’ export will encourage other industry in the engineering sector to play their role in increasing the exports of the country. We need to enhance our exports. For this the government must encourage the engineering sector, he added.

In the recommendation, the EDB has asked the Central Board of Revenue to return customs duties to the tune of 5-10 percent to the manufacturers on motorbikes’ export. They pay the customs duty on the import of raw material. This is a just demand of the manufacturers, an official said.

The government has the facility of duty drawback for exporters in various sectors. The government has been providing compensatory duty drawback facility on textile exports. Under the compensatory facility, the textile sector is paid more than they pay in customs duty on the import of raw material, the official said. “In other words, the government subsidizes the export of cotton goods,” the official said.

Pakistan produced more than 650,000 motorbikes in the last fiscal. In 2006-07, the motorcycle manufacturers are expected to manufacture over one million units as a result of expansion of the existing plants. According to a study of the EDB, Bangladesh, Afghanistan and the East African region could be potential markets for Pakistan-made motorbikes, the official said.

Motorcycles’ manufacturing is a success story in the country. The industry is fully capable of meeting the domestic requirements. It is also capable of competing in the international market as Pakistan-made 70CC motobikes are famous in the international market. This company has been in the export of motorcycles since long, the official said.

http://www.dailytimes.com.pk/default.asp?page=2006\07\06\story_6-7-2006_pg5_1

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Re: Pakistan: A most surprising success story - Newsweek (Merged)

Pakistan becomes ideal choice of foreign investors

GENEVA (APP) - Prime Minister Shaukat Aziz said on Wednesday that political stability, consistency and continuity of economic polices and high corporate profitability is turning Pakistan into a destination of choice for investors from regions as diverse as the Middle East, ASEAN, Europe and North America.
“Pakistan is providing level-playing field and we make no distinction between local and foreign investors. There are no sectors which are taboo to investment,” he told the leading fund mangers from around the world at a function organised by the Union Bank of Switzerland.
Over the last seven years, the government has undertaken comprehensive and multi-faceted structural reforms which have helped to revive and reposition the country, he added.
“Due to consistent investment policies and the provision of level-playing field for investors, there is a substantial increase in investments leading to the generation of economic activities, job opportunities and better growth in the country,” he added.
He said due to economic stability, today Pakistan has gained international recognition as one of the top performers of the world and is swiftly moving to occupy a significant place in the global economy as an emerging market.
Explaining Pakistan’s economic policies and reforms, he said, these were driven by the principles of deregulation, liberalization and privatization.
PM said continuity and consistency in economic policies have created a conducive business environment and numerous sectors were now open for investment.
Highlighting some of the achievements in economic sector, the Prime Minister said the budget deficit has been reduced significantly; revenue collection and exports were in double digit; growth consecutively for the last three years; debt burden has declined substantially, and Foreign Direct Investment was all time high.
He said country’s real GDP grew by 6.6 per cent, the per capita income has risen to $847 and the economy was growing at an average rate of almost 7 per cent during the last four years and over 7.5 per cent in the last three years, thus enabling it to join the club of the fastest growing economies of the region.
Shaukat Aziz said Pakistan’s economic policies were now more vibrant, transparent, and predictable.
He said with the wide ranging structural reforms, improved financial credibility, highly competitive banking sector, rule based fiscal policy, investors’ friendly framework and stable economic environment, Pakistan has now moved towards second generation reforms. The government, he said, was working on a policy to strengthen the private sector.
He attributed the success of the macro-economic reforms undertaken during the past six years to the leadership of President Musharraf.
He indicated at the policies of good governance and transparency in all government affairs and said it had brought good name to Pakistan.
“We are trying to change the system,” Aziz said and added that its privatisation policy had been a success as there was more vibrancy in the economy.
Referring to Poverty Reduction Strategy programme, he said it is to ensure that the benefits of macro-economic success should reach to the common man to raise their standard of living.
He said 160 million people of Pakistan were the greatest asset of the country and having an enormous potential to excel in any sphere of human endeavour.
The PM said that the government has implemented broad-based, multi-sectoral reforms that have brought about a qualitative and quantitative transformation in Pakistan.
Good governance has been provided through transparency and accountability, he added.
The PM said Pakistan enjoys a unique pivotal position on the Asian continent and was located at the cross-roads of South and Central Asia as well as West Asia.
He said due to its multiple linkages, Pakistan can be the anchor of peace, stability and prosperity for the entire region.
The Prime Minister said high levels of growth have been achieved while poverty is decreasing, per capita income and employment growing. Besides he said, trade is increasing and diversifying into new areas while there has been unprecedented inflow of Foreign Direct Investment (FDI), he added.
The PM said due to Pakistan’s strategic location it was playing a role towards promoting regional peace and security besides providing inter-regional linkages for multi-dimensional cooperation.
The government has already embarked on developing several corridors of cooperation including oil and gas pipelines, electricity grids, transportation networks and trade relations, the Prime Minister said.
He said Pakistan provides the shortest access to sea for all land-locked countries of Central Asia as well as Western China.
He said Pakistan was building a deep-sea port at Gwadar on the Persian Gulf and constructing rail and road links to connect the region.
PM said government’s vision of Pakistan is of a strong, democratic, progressive country that provides peace, prosperity and security to its people and coexists with its neighbours with peace and amity.
He said Pakistan wants resolution of all outstanding issues with India including the core issue of Kashmir and is committed to the process of dialogue with India.
Following the reforms, he said now there is a much bigger middle class in the country and cited the example of growth in cellular market that has risen from 300,000 to 32 million.
He said the government has also received good response from floating the Euro bond with maturity of 10 and 30 years.
“We plan to come to international market once every year, it is not a need driven issue, but we want to build linkages with international investor community,” he added.

http://nation.com.pk/daily/july-2006/6/bnews1.php

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Re: Pakistan: A most surprising success story - Newsweek (Merged)

Definitely! I go there every year, and every year something new emerges. The rate of development just keeps on increasing.

And its not only limited to the upper-class. More & more investments have created more & more jobs, alot for the lower-class, bringing them to the mid-income & low-mid-income categories. This is also proven in the latest Economics Survey of Pakistan, under poverty, which has been decreasing significantly for the past few years.

Kudos to Mushy & Shortcut Aziz.

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Re: Pakistan: A most surprising success story - Newsweek (Merged)

Yup, and we need to maintain and sustain continuned this level of economic growth for many years to come, and it will trickle down more to the masses.

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Re: Pakistan: A most surprising success story - Newsweek (Merged)

After so long do we have a government in place that's actually getting stuff done. Well done Mushy!

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Re: Pakistan: A most surprising success story - Newsweek (Merged)

Pakistan's foreign exchange reserves rose to $13.111 billion in the week ended July 1 from $13.021 billion the previous week, the State Bank of Pakistan said Friday.

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Re: Pakistan: A most surprising success story - Newsweek (Merged)

StanChart set to buy Pakistan bank

Standard Chartered, the emerging markets bank, is finalising an agreement to buy Pakistan’s Union Bank in a deal likely to be worth at least $500m. Shaukat Tarin, president of the Union Bank, on Monday told the Financial Times: “The due diligence is complete. Now we are working on the sale purchase agreement.” He did not elaborate on details such as price.

https://registration.ft.com/registration/barrier?referer=&location=http%3A//www.ft.com/cms/s/c17d17ba-15b6-11db-9950-0000779e2340,_i_rssPage=1c573392-3015-11da-ba9f-00000e2511c8.html

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Re: Pakistan: A most surprising success story - Newsweek (Merged)

Chinese mulling $13b investment in Gwadar

*By Sajid Chaudhry

*ISLAMABAD: The Chinese petroleum industry has indicated an interest in shifting its excess capacity to Gwadar, bringing in estimated investment of $13 billion, a senior government official told Daily Times on Wednesday.

The China Chamber of Petroleum Industry (CCPI) and All China Federation of Industry and Commerce (ACFIC) conveyed to Pakistani authorities during a recent visit that the Chinese petroleum industry is keen to invest in Pakistan’s energy sector, the official said.

The ACFIC and CCPI indicated that both the public and private sectors should cooperate in energy projects in Pakistan, with the Chinese private sector in particular seeing a lot of opportunities here, the official said.

This cooperation will not be restricted to building an oil pipeline to set up an energy corridor to Gwadar, but also in shifting energy related industry to Pakistan.

However, the government will need to provide strong support to lay down a framework for a safe financial, investment and security environment in Balochistan to attract this investment, the official said.

He said the Chinese petroleum industry sees four potentially fruitful projects. Firstly, an oil pipeline linking Gwadar to Xinjiang in China to set up an energy corridor. The economic viability of such a project is yet to be worked out. Secondly, the development of Gwadar Port Energy Zone, where the Chinese could set up an oil refinery with a capacity of 21 million tonnes.

China has been preparing a similar project along the Yangtze River in collaboration with Saudi Arabia for the last two years, but has now indicated it could shift the project to Pakistan, the official said. Other countries besides China will also be invited to invest in the project.

Thirdly, the Gwadar energy zone could accommodate other energy sector industries. The Chinese business groups said that China has excess capacity in the petroleum services industry and planned to move the excess capacity to Dubai, but was now considering shifting it to Gwadar, the official added. According to their initial estimates, the Gwadar Port Energy Zone could attract investment of up to $13 billion.

Fourthly, the Chinese petroleum industry also indicated an interest in oil and gas exploration projects in Pakistan, the official said. The Chinese business groups had proposed that a Pak-China energy and trade cooperation promotion association be established for such projects.

The association would include members from the oil and gas sector and other industries in the power sector. They had also suggested that a Pak-China joint investment company be set up to finance these projects, the official said

http://www.dailytimes.com.pk/default.asp?page=2006\08\10\story_10-8-2006_pg5_1

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Re: Pakistan: A most surprising success story - Newsweek (Merged)

Pls keep the posts relevent to this thread.
Discussion on Shaukat Aziz, PSM, KSE has been split to form this thread;
http://www.paklinks.com/gs/showthread.php?t=226795