Day: April 10, 2014

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World Bank officials discuss with Minister for Ports and Shipping $ 115.8 million Karachi Port Improvement Project

Karachi, April 10, 2014 (PPI-OT): The federal Minister for Ports and Shipping Senator Kamran Michael met the World Bank officials and discussed the World Bank financed $ 115.8 million Karachi Port Improvement Project which has two components.

The first component deals with the Reconstruction of Berths 15 – 17A and the other is to carry out Institutional Strengthening Studies. The Minister Kamran Michael was informed about the scope of studies conducted for the 10 years’ strategic business plan, improvements of environment health safety standards at the port and improvement of financial management systems of the port.

The Minister appreciated the efforts towards the midterm review of World Bank financed Karachi Port Improvement Project. He was apprised of the objectives of the Midterm review which the World Bank team is presently doing to assess progress on key components of the project, review the project’s operational aspects, and progress towards achieving the development objectives.

The mission will focus on determining corrective actions needed for the project to achieve intended results and suggest any adjustments if so required based upon the discussion with Government counterparts and other stakeholders. The mission is also meeting port users to get their views and feedback.

The Word Bank Port Economist Edward Liang, Consultant Yousuf Hussain, Disbursement Specialist Anwar Bhatti, Financial Management Specialist Naveed Saeed and Port Specialist Hassan Afzal Zaidi were present in the meeting which was also attended by Chairman KPT Rear Admiral Azhar Hayat and KPT’s planning and development division team.

For more information, Contact:
Chairman
Karachi Port Trust
KPT Head Office Building,
Eduljee Dinshaw Road,
Karachi-74000 Pakistan.
Tel: 99214358, 99214542, 99214530-40
Fax: 99214377
Email: Chairman@kpt.gov.p

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Import of Liquefied Natural Gas will start in 2015: Commerce minister

Lahore, April 10, 2014 (PPI-OT): Federal Minister for Commerce Engineer Khurram Dastgir has said that formal import of Liquefied Natural Gas (LNG) will start in 2015 as work to develop required infrastructure is in full swing.

The Federal Minister was speaking at the Lahore Chamber of Commerce and Industry on Thursday. LCCI President Engineer Sohail Lashari presented the business community point of view while LCCI former Presidents Bashir A Buksh, Iftikhar Ali Malik, Mian Anjum Nisar, Shahid Hassan Sheikh Muhammad Ali Mian and Irfan Qaiser Sheikh also spoke on the occasion.

The Federal Minister said that the import of LNG would help supplement government efforts to mitigate gas shortage in the country. Citing the examples of China, Malaysia, Indonesia and India, the Federal Minister said that the progress and prosperity would remain a dream without liberalizing the trade regime therefore strenuous efforts were being made to liberalise trade regime of the country.

He however, made it clear that all the future Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) would be done would a complete research and a proper homework. Engineer Khurram Dastgir said that serious efforts were being done to overcome the challenges of extremism and energy shortage.

He said that only because of these two issues the country could not get its due place in the international marketplace. He said that the mistakes committed during 1994 to 2013 on the economic front were being rectified through a collective approach and a collective wisdom.

The Minister said that work to generate electricity through coal was in advance stage as it was only way to get rid of costly thermal electricity. He said that the country energy mix would be reversed to ensure relief to the masses.

Speaking on the occasion, the LCCI President Engineer Sohail Lashari appreciated the government for giving required focus toward the economic issues. He said that the business community would continue to supplement government efforts aimed at progress and prosperity.

The LCCI President urged the Minister to direct the Trade Development Authority of Pakistan to collaborate with the Chambers of Commerce and Industry before finalizing its foreign delegations and exhibition in foreign destinations. The LCCI President also called for early establishment of regional offices of Director General Trade Organisations to facilitate the private sector.

The LCCI President said that low level of foreign direct investment, inflationary pressures, high mark up rate, foreign and domestic debts, capital flight, budgetary deficit, trade imbalance, high cost of business, circular debt, low tax-to-GDP ratio are few of the issues, we are facing as a nation.

He said that these factors do cause inconvenience to government in making both ends meet but it is the business community which has to bear the toll in the form of tight fiscal and monetary policies which hardly allow businesses to grow at will. He said that the real worry is that the structure of our imports dominated by oil and consumer goods is not capable of supporting long-term economic growth capacity.

He said that the government overall approach to trade development should be based on trade facilitation. We have been proposing that export development fund must be spent in this connection but no major breakthrough has been made so far.

He said that we need greater diversification in the structure and direction of our trade. Producing far few goods for far few markets is not going to strength the economy of Pakistan. The LCCI President said that our focus should be on greater value addition and entry into new markets like Africa, South America and the Islamic world.

He called for well thought out trade policy with both short term and long term targets. We have to utilize all available options to give maximum projection to Pakistani goods in international markets in best possible manner.

He suggested that TDAP should actively organize trade fairs and exhibitions in such markets which are not fully exploited. For this purpose, some strategic reorientation in the functioning of Trade Development Authority and in the disbursement of Export Development Fund is essential.

He said that Export Development Fund should be made more aligned with the overall objectives of Strategic Trade Policy Framework. Special focus should be placed on export-oriented firms that are predominantly small and medium enterprises.

He said that it is also essential to revamp the disbursement of EDF for research and development activities of innovative growth firms and for performance oriented trade associations.

He stressed the need to consistently expand the country’s market access. Pakistan should actively enter into Free Trade Agreements and Preferential Trade Agreements with countries where it has a clear and mutual comparative competitive advantage.

He proposed the creation of country-level and regional FTA/PTA Advisory Councils involving the representatives of private sector and officials of the Ministry of Commerce for exploring all avenues to benefit from such agreements.

He said that Lahore is set to become a major cross-road trading and business city in South Asia in the wake of growing trade liberalization in the region and between Pakistan and India.

He said that it is about time that we seriously improve our trade readiness especially involving the trade related infrastructure at Wagha Border which is critical for achieving the ambition of greater trade between Pakistan and India as well as in the region.

He informed the Federal Minister that the LCCI has established a Mediation Centre in August 2012 with active collaboration of IFC. There are more than 40 accredited mediators registered with LCCI who can help the local, national and international businessmen for out of the court settlement.

For more information, contact:
Shahid Khalil
Information Department
Lahore Chamber of Commerce and Industry (LCCI)
11-Shahrah-e-Aiwan-e-Tijarat,
Lahore -54000, Pakistan
Tel: +9242 111 222 499
Fax: +92 42 636 8854

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Workers’ remittances rise 11.9percent to $11.58 billion in first nine months of fiscal year 2013‐14

Karachi, April 10, 2014 (PPI-OT): Overseas Pakistani workers remitted an amount of $11.58 billion in the first nine months (July – March) of the current fiscal year 2013‐14 (FY14), showing a growth of 11.87 percent when compared with $10,353.82 million received during the same period of last fiscal year (July- March FY13).

The inflow of remittances in July – March FY14 from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $3,391.27 million, $2,288.92 million, $1,820.91 million, $1,632.21 million, $1,357.73 million and $318.94 million respectively as compared with the inflow of $2,979.31 million, $2,085.94 million, $1,636.66 million, $1,434.97 million, $1,195.86 million and $269.04 million respectively in July – March FY13.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first nine months of current fiscal year amounted to $772.8 million as against $752.04 million received in the first nine months of last fiscal year.

In March 2014, the inflow of remittances from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $425.53 million, $262.00 million, $194.82 million, $166.46 million, $164.03 million and $34.93 million respectively as compared with the inflow of $351.53 million, $220.22 million, $175.53 million, $150.22 million, $128.36 million and $26.43 million respectively in March, 2013. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the nine month of the current fiscal year (March FY14) amounted to $89.48 million.

For more information, contact:
Syed Wasimuddin
Chief Spokesman
State Bank of Pakistan (SBP)
Tel: +9221 3921 2562
Fax: +9221 3921 2563
Email: syed.wasimuddin@sbp.org.pk

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Pakistan’s liquid foreign reserves position as of April 10, 2014

Karachi, April 10, 2014 (PPI-OT): The total liquid foreign reserves held by the country stood at $9,713.5 million on 04April2014.The break-up of the foreign reserves position is as under: –

i)   Foreign reserves held by the State Bank of Pakistan:     $4,943.2 million

ii)  Net foreign reserves held by banks                 :     $4,770.3 million

iii) Total liquid foreign reserves                      :     $9,713.5 million

During the week ending 04April2014, SBP’s Liquid FX Reserves decreased by $229 million to $4,943 million compared to $5,172 million in the previous week. The decrease in the Central Bank reserves is due to external debt servicing of $142 million, including $109 million payment to IMF on account of SBA, and other official payments. During the week ending 04April2014, there was no major inflow from multilateral and bilateral sources.

For more information, contact:
Syed Wasimuddin
Chief Spokesman
State Bank of Pakistan (SBP)
Tel: +9221 3921 2562
Fax: +9221 3921 2563
Email: syed.wasimuddin@sbp.org.pk

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Ambassador Olson reaffirms United States commitment to Azad Jammu and Kashmir

Islamabad, April 10, 2014 (PPI-OT): U.S. Ambassador Richard Olson visited Muzaffarabad today to highlight the United States’ support for bilateral trade opportunities, educational exchange, and development programs in Azad Jammu and Kashmir.

Ambassador Olson’s visit, his first to the region, was an opportunity to renew ties with the government leadership of AJK and to meet with local residents. “Today’s visit is an important opportunity for me to see the enduring partnership of the United States with the people of Azad Jammu and Kashmir,” Olson said.

Ambassador Olson called on AJK President Muhammad Yaqoob Khan, and also met with a delegation of senior officials of the AJK government. He discussed investment and trade opportunities during a meeting with Chamber of Commerce leaders and entrepreneurs from the AJK region. “The United States is the largest export market and one of the largest sources of foreign investment for Pakistan,” said Olson. “We want to see this continue to grow, including right here in the AJK region.”

Jointly with AJK’s President, Olson broke ground on a new building that will house the University of Azad Jammu and Kashmir Faculty of Education at the Muzaffarabad old city campus. “This state-of-the-art building – which will include eight classrooms, a computer lab, a teaching lab, library, and multipurpose hall – will accommodate approximately 300 students. We believe that a world-class learning facility will help attract the best and brightest students to pursue careers as teachers.”

Ambassador Olson joined thirty English Access Microscholarship Program students, ages 14-16, to celebrate World Intellectual Property Rights Day at the Lincoln Corner at University of AJK in Muzaffarabad.

During the event, which the READ Foundation organized, Access students displayed and explained their creative work to the Ambassador, discussed the importance of intellectual property protection, and gave him a signed and bound copy of their written work.

Olson emphasized U.S. support for commitment to women’s empowerment and entrepreneurship in Pakistan during his visit to an exhibition of handicrafts made by women participating in programs supported by the Azad Jammu and Kashmir Ministry of Social Welfare and Women’s Development. Ambassador Olson also toured Muzaffarabad’s Red Fort, Rutta Qilla, an important cultural and historical site in Azad Jammu and Kashmir.

U.S. Education Programs in AJK and Pakistan: The Faculty of Education building at the University of AJK is part of the comprehensive education program that the United States supports alongside the government of Pakistan for the entire country.

This program includes the $160 million Pakistan Reading Project; building and repairing over 850 schools; establishing Centers for Advanced Studies in Water, Agriculture and Food Security, and Energy at four Pakistani universities; a $1 million University Partnership program between the University of Azad, Jammu and Kashmir and San Jose State University in Linguistics and English Education; expanding English skills for more than 5,000 low-income students; and awarding more than 4,800 scholarships for university students to pursue education through the Pakistan-USAID Merit and Needs Based Scholarship Program.

Access Micro-scholarships: The English Access Microscholarship Program provides a foundation of English language skills to talented youth from socio-economically disadvantaged sectors through after-school classes and learning activities. The program gives participants English skills that lead to better jobs and educational prospects. Since the program began in Pakistan in 2005, over 9,000 scholarships have been awarded in 21 locations throughout the country.

For more information, contact:
Alberto Rodriguez
Spokesman
Information Office Public Affairs Section
Embassy of the United States of America
U.S. Embassy, Islamabad- Pakistan
Cell: +92300 501 2640
Tel: +9251-208 0000
Fax: +9251-227 8607
E-mail: webmasterisb@state.gov

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United Nations Humanitarian Fund allocates $9.5 million for more than 1 million people displaced in Khyber Pakhtunkhwa, Federally Administered Tribal Areas

Islamabad, April 10, 2014 (PPI-OT): The United Nations’ Central Emergency Response Fund (CERF) has allocated US$9.5 million (920 million Pakistani rupees) to help meet the needs of the more than 1 million people who remain displaced in Khyber Pakhtunkhwa (KP) and the Federally Administered Tribal Areas (FATA) in Pakistan due to insecurity.

The funding comes at a crucial time, as significant humanitarian needs remain in KP and FATA, yet aid agencies have limited resources to meet those needs.

“This money will save lives by ensuring that humanitarian organizations can continue to support the Government’s efforts to help the most vulnerable men, women and children in KP and FATA,” said Timo Pakkala, the UN Resident Coordinator and Humanitarian Coordinator in Pakistan.

The funds will give life-saving food aid to 980,000 people; primary health care for 500,000 people; critical water, sanitation and hygiene services for 200,000 people; nutrition services for 65,000 people, including malnourished children; and emergency shelter and non-food items for 14,000 people.

The UN estimates that some $283 million are required to maintain essential humanitarian services in KP and FATA this year. So far, $100 million have been received, leaving a considerable funding gap. “It is important to ensure that the basic humanitarian needs of displaced people and families returning to their homes in FATA continue to be met,” Pakkala said.

Pakistan is the fourth-largest recipient of CERF funding globally at a total of $177.7 million since 2007 and the sixth-largest in 2014, having received 6.22 per cent of the $152.3 million allocated to date this year.

The CERF is funded by voluntary contributions from UN Member States, non-governmental organizations, local governments, the private sector and individual donors. Since 2006,the CERF has allocated more than $3.4 billion for humanitarian operations in 88 countries and territories.

For more information, contact:
Humaira Mehboob
Public information Officer
United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA)
Serena Business Complex, 2nd Level, Khayaban-e-Soharwardy,
Sector G-5 Islamabad, Pakistan
Cell: +92-346-8563613
Fax: +92-51-8355981
Email: Mehboob@un.org
Web: www.pakresponse.info

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JCR-VIS reaffirms entity ratings of Universal Leather (Pvt.) Limited

Karachi, April 10, 2014 (PPI-OT): JCR-VIS Credit Rating Company Limited has reaffirmed the entity ratings of Universal Leather (Pvt.) Limited (ULPL) at ‘BBB+/A-3’ (Triple B Plus/A-Three). Outlook on the medium to long term rating is ‘Stable’.

Leather industry enjoys the fourth largest share in exports and contributed about 4.9% to the country’s exports in the out-going year. Total exports mainly comprised finished leather (44%) and leather garments (33%). The sector is largely fragmented, with several players operating at varying scales.

ULPL has been operating in the leather sector for several decades. Shareholding is vested with family members who are represented on the company’s Board of Directors while also holding key management positions.

The company posted improved sales for the out-going year on the back of both higher volumes and prices of its products. Margins also recouped in this period, translating into an improved bottom line from core operations.

The company maintains a conservative capital structure with borrowings mobilized for working capital management. There is no long term debt on books. Moreover, investments are strategic in nature and there is minimal amount of liquid assets carried on balance sheet. The borrowings and trade payables balance is however well matched by stock-in-trade and trade debts.

Going forward, increasing working capital requirements may exert some pressure on the bottom line unless off-set by higher product prices. Moreover, Rupee appreciation in 1QCY14 is likely to have an adverse impact on the company’s margins.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
Tel: at 021-35311861-70
Fax: +9221 35311872-3