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
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
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
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
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 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
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.