Jan 21 - 27, 2002
640 units closed down in NWFP
One-third of the industrial units in NWFP have been closed
down, whereas 60 per cent of the functional manufacturing units are operating
below their capacity due to unfavourable investment climate over the years,
according to official sources.
The province has a total number of 1970 industrial units
including sugar, beverages, food processing, flour mills, ice and cold storages,
cigarette, textile, leather, furniture, cement, steel furnace/rerolling,
pharmaceutical, marble, match and several number of plastic manufacturing unit.
However, due to a variety of reasons over 640 units have been
closed down whereas there are over 1000 (thousand) units which are operating
below their operational capacity.
The closed down units, according to some official documents
available, involve a collective investment of over Rs13.1bn out of a total
investment of over Rs60bn made in the NWFP industrial sector since Pakistan came
"NWFP is landlocked and is over a thousand miles away
from the Karachi sea port. As it is highly dependent on the south for both of
its inputs/raw material and markets, higher transportation costs make it
difficult for the industries to compete," contained in an official document
of the NWFP government.
Withdrawal of incentives previously available to the
Gadoonamanzai industrial estate, over capitalization, inefficient management,
absence of technical know-how, high production cost, shortage of raw material,
depressed market, lack of working capital, drop in internal cash generation and
poor cash management have been described, under the official documents, as some
of the reasons for the closure of so many industrial units and below-the-
capacity operations of a large number of industries.
Act sought for quality cotton production
The official drive to lead the country towards the complete
production of contamination-free cotton seems to face cold response next year
after the bitter experience of growers and ginners in Rahim Yar Khan district
where the government initiated it this year with a lot of enthusiasm.
All Pakistan Textile Mills Association (Aptma) had long been
demanding strict enforcement of cotton control act to ensure the production of
either complete contamination-free cotton or less-contaminated cotton.
Recently, a stalwart of Aptma Gohar Ijaz carried out a study
that revealed the country is suffering a loss of $1,426 million every year in
the export of cotton and its made-ups only due to contamination in raw cotton.
The break-up of the loss for the export of various stages of
cotton products is as: Cotton, $308m; yarn, $252m; fabric, $215m; hosiery $255m;
readymade garments & made-ups, $392m.
Pakistan ups oil storage capacity
Pakistan has increased its oil storage capacity to offset
emergency demand should border tensions with India erupt into a war, an industry
official said on Tuesday.
"We have increased the crude storage capacity to 20 days
from the normal 15 days," the official at a state-run refinery told AFP on
condition of anonymity.
"We have also raised the throughput to 80 per cent from
the normal refinery capacity utilization of 70 per cent," he said. "It
is being done under a contingency plan in view of the prevailing border
Petroleum exploration licence
The federal government will award on Friday a concession
agreement with Canadian Hydrocarbon Corporation (Scimitar) for petroleum
exploration in Dera Ghazi Khan.
The concession licence would be granted to Scimitar, first of
its business venture in Pakistan, for the exploration activities in Safed Koh.
Gas supply from miano delayed
Reference news published on page 2 in our Dec 31, 2001-Jan
6,2002 issue. The following clarification has been issued by OMV (Pakistan).
"The initial gas supply from Miano gas field has already
commenced. OMV (Pakistan) Expatriates employees were evacuated in mid September,
however, all these Expatriates had to return to Pakistan within 2 to 4 weeks of
evacuation. Since then company is fully represented in Pakistan and all business
operations are continuing. The Sawan Gas Field Development agreements were
signed in mid November. Though the initial Gas supply from Miano has already
commenced, however, the full capacity supply is expected to be delivered during
January 2002. This change in schedule resulted from the reasons that services
personnel from a USA based company were prevented from traveling to Pakistan.
Also after September 11, air freight consignment of some essential equipment
could not be brought into the country".
Dewan Farooque Motors
Dewan Farooque Motors — the producers of Hyundai and KIA
vehicles in Pakistan — said the company planned to introduce KIA Sportage
Wagon, powered by a two-litre turbo-charged inter-cooled diesel engine.
Inflation rises in six months
The Inflation rate based on sensitive price indicator (SPI),
consumer price index (CPI) and wholesale price index (WPI) during the first six
months of this fiscal surged by 2.1 per cent, 2.57 per cent and 3.03 per cent
respectively in comparison to the same period last year.
Official figures released by Federal Bureau of Statistics,
showed that the inflation during the July-December period of 2000-01 increased
by 5.17 per cent, 4.91 per cent and 6.28 per cent over the corresponding span of
Quarterly report on GDP
A quarterly report on Gross Domestic Product (GDP) will be
compiled from next fiscal by the Federal Bureau of Statistics (FBS) and would be
available for policy-makers and the private sector to take decisions on updated
economic data in a rapidly changing environment.
ICI seeking partner
ICI Pakistan is looking for a senior or junior partner for
its PTA business, hit by one of the worst recessions in this line of business,
says a top ICI official.
It could be a joint venture partner with equity holding of
around 37 per cent at par with ICI Pakistan, or one or two partners acquiring
majority stakes. The paid-up capital of the Pakistan PTA Ltd is Rs5 billion.