INDUSTRY

 

Aug 05 - 11, 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF

 

SAINDAK TO START PRODUCTION BY YEAR-END

The country's one of the mega projects Saindak Copper-Gold project in Balochistan will start much awaited commercial production by the end of this year.

 

 

A team of over 50 experts of Metallurgical Company of China (MCC) has initiated the job at the project while the full-fledged work at the project would commence by December this year, official sources said on Tuesday.

As soon as the work in full swing starts simultaneously the project will start commercial production.

Pakistan and China had signed the contract of $350 million during the visit of Chinese Prime Minister to Pakistan, last year.

The Chinese company has been awarded lease for Saindak Copper-Gold project for the period of 10 years with the conditions. Under the agreement, the MCC would invest an estimated amount of $9 million and would pay $0.5 million annually as rental.

The MCC would share 50 per cent of the cash surplus, if generated for the sale of metals to be recovered from the project.

The government of Balochistan will also receive $0.7 million annually as royalty and the MCC would pay royalty after negotiation with Government of Balochistan with the support of Government of Pakistan.

The MCC share in the surplus cash flow generated from the project shall be in the first place directed to recover the MCC working capital and thereafter remaining cash surplus shall be reinvested in the project as equity.

Initially, the Chinese company will invest $39 million as working capital to make the project operational.

ECONOMY FACES RISKS, WARNS WORLD BANK

The country's economy faces serious challenges and major risks emanating from a variety of internal and external sources, says the World Bank.

According to the World Bank's Country Assistance Strategy (CAS) released on Tuesday, the main risk comes from uncertainty about a sustained implementation of reforms after October polls, particularly in the face of domestic opposition from 'vested interest' and possible opposition to the policies introduced by the present government.

The CAS refers to uncertainty over the reform of the elementary education system, including the attempt to regulate religious schools and the pro-gender equity policies.

The World Bank says that the government has rightly decided not to complete the Poverty Reduction Strategy Paper until after the new government is in office to ensure the latter's endorsement of the PRSP.

 SL EXPERTISE SOUGHT IN TEA CULTIVATION

Pakistan on Thursday offered Sri Lanka to set up tea packing units in Export Processing Zone in Karachi, and sought Lanka's cooperation and expertise for cultivation of tea and coconut in Pakistan.

In a faxed message received from Colombo, the president, Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Iftikhar Ali Malik told members of Sri Lanka Chambers of Commerce and Industry that the two countries can collaborate in areas such as food processing, agro-based and rubber-based industries, textiles and garments, leather products, extraction and processing of mineral sand, precision tools and products, machinery and transport equipment, chemicals, electronic products, and tourism and information technology.

PSO, WAPDA SIGN ACCORD

Pakistan State Oil (PSO) has signed an agreement with the Water and Power Development Authority (WAPDA) for handling and storage of fuel oil.

The power utility's annual requirement of furnace oil ranges between 1.2-1.5 million tons per annum.

INDUSTRIAL AREA NEAR QUETTA PLANNED

The Balochistan government has decided to set up an industrial area in Bostan with all necessary facilities including water, gas and electricity.

Decision in this regard was taken at a meeting chaired by Provincial Governor Justice (Retd) Amirul Mulk Mengal, on Monday. The meeting reviewed the matters relating to the establishing more industries and investment opportunities in the Province.

KOREANS TO SET UP TEXTILE UNITS

Leading South Korean businessmen have indicated willingness to set up leather garment manufacturing unit and spinning and weaving mills in Pakistan.

According to the Export Promotion Bureau on Monday, these interests have been shown and discussed by visiting members of South Korean trade delegation with Pakistani tanners and leather garment manufacturers and textile mills during a week-long stay in the country.

WHEAT OUTPUT

Wheat has now emerged as one of Pakistan's major foreign exchange earners. This was stated by Federal Minister for Food and Agriculture, Khair Mohammed Junejo.

About the current wheat position in the country, the minister pointed out that the public sector has 7.2 million tons wheat in stock and a lot more is in the private sector. He said that the country's wheat requirements are adequately covered and that Pakistan is intending to continue with its (wheat) exports to the extent of 1.5 million tons.

COTTON ACT DISCUSSED

A high level meeting on Saturday discussed production of clean cotton and enforcement of Cotton Control Act in the country.

Commerce Minister Abdul Razak Dawood chaired the meeting at TCP head office, which was also attended by senior officials of Commerce Ministry, Minfal, Smeda, Textile Commissioner's Organization, TCP, PCSI.

The meeting discussed matters relating to production of clean cotton, premium for different levels of contamination in cotton, improving quality of ginning, Standardization Ordinance and issues relating to textile industry and enforcement of Cotton Control Act by the provincial governments.