Revival of Pakistan Locomotives Factory, Risalpur on cards

on 11/03/2018

A good news! Pakistan is contemplating to revive and thus upgrade Pakistan Locomotives Factory at Risalpur in its bid to modernize railway infrastructure in the country.   Started operations in 1992, PLF, Risalpur has a designed production capacity of 25 diesel electric locomotives per year. It failed to perform as per expectations although it has potential to double the production. Realizing that the locomotives factory will remain an under performing public sector entity without foreign investment and technical assistance,  plans have been prepared to seek international help.

The issue came under consideration when Asian Development Bank (ADB) Director-General for Central and West Asia Werner Liepach,  visited Pakistan in February, held detailed discussions with Secretary Railways Parveen Agha on the modernization of railways.

The bank expressed its willingness to identify and arrange commercial co-financing for projects of Pakistan Railways, particularly modernizing its infrastructure and rolling stock. Upgradation of Pakistan Locomotives Factory in Risalpur, procurement of new locomotives and creation of a freight company were discussed at length. Mr Werner was of the view that the group`s co-financing for railways project will be the seed money to bring in more commercial funding.

ADB believes the railway sector needs to exalt its infrastructure to provide more inexpensive transport services and recover the market share lost to roads. It merits mentioning that the factory has manufactured a total of 102 diesel electric locomotives since 1993.

ـ ـ ـ ـ ـ کچھ لفظوں کی کہانی – – – – – کتاب

on 14/02/2018

 

محمد صلاح الدین

سائیں ! کیا وجہ ہے کہ چین اتنی ترقی کر گیا اور ہم اتنا پیچھے رہ گئے؟

‘کتاب’

سائیں نے ایک لفظ میں جواب دے دیا

میں سمجھا نہیں۔ میں نے سائیں سے کہا

وہ بولے ” دنیا کی دس بڑی لائبریریوں میں چین کی نیشنل لائبریری  کا نواں نمبر ہے، صرف اس ایک لائبریری میں تین کروڑ چونسٹھ لاکھ کتابیں ہیں اور باون لاکھ لوگ سالانہ اس لائبریری سے فائدہ اٹھاتے ہیں”۔

انہوں نے سانس لیا اور پھر بولے “بیٹا کامیابی دنیا کی ہو یا آخرت کی اس کے لیے کتاب کو تھامنا پڑتا ہے”۔

Door open to yuan-based trade with China: SBP

on 30/01/2018

Dec 19, 2017, Minister for Planning and Development Ahsan Iqbal said that the government was considering a Chinese proposal to use renminbi (RMB or yuan) instead of the US dollar for payments in all bilateral trade between China and Pakistan.The decision was taken after rejecting a Chinese proposal to allow yuan as legal tender in Gwadar, Balochistan.

`The SBP, in the capacity of the policy maker of financial and currency markets, has taken comprehensive policy related measures to ensure that imports, exports and financing transactions can be denominated in yuan,` said a statement issued by the SBP. It further said both public and private sector enterprises (ie both Pakistanis and Chinese) are free to choose yuan for bilateral trade and investment activities.

The RMB is an approved currency for denominating foreign currency transactions in Pakistan. The SBP has already put in place the required regulatory framework which facilitates use of yuan in trade and investment transactions such as opening of letter of credits (LCs) and availing financing facilities in yuan.

In terms of regulations in Pakistan, yuan is on a par with other international currencies such as dollar, euro and Japanese yen, etc. In FY17, Pakistan exported goods and services worth $1.62 billion while the imports from China were $10.57bn reflecting a great imbalance.

The two countries have yet not chnalised a free trade agreement (FTA). The FTA may benefit exports from Pakistan as the country critically needs to improve its exports due to huge trade deficits. After signing a Currency Swap Agreement (CSA) with People`s Bank of China (PBoC) in 2012,

SBP had taken a series of steps to promote use of yuan in Pakistan for bilateral trade and investment with China. The central bank has allowed banks to accept deposits and give trade loans in yuan. For onward lending the proceeds of CSA, the SBP has put in place the loan mechanism for banks to get the yuan financing from the SBP for onward lending to importers and exporters having underlying trade transactions denominated in the Chinese currency.

In 2012, the SBP issued a circular that said the authorised dealers may open for-foreign currency accounts and extend trade loans under FE-25 Scheme in US dollar, pound sterling, euro, Japanese yen, Canadian dollar, UAE dirham, Saudi riyal, Chinese yuan, Swiss franc and Turkish lira. Industrial and Commercial Bank of China Ltd (ICBC) Pakistan has been allowed to establish a local yuan settlement and clearing setup in Pakistan enabling it to open yuan accounts of the Chinese banks operating in Pakistan and to facilitate settlement of yuan-based transactions such as remittance to/from China.

With the opening of Bank of China in Pakistan, the access to onshore Chinese markets will strengthen further. Apart from the above, several banks in Pakistan maintain onshore yuan nostro accounts, said the SBP.  Considering the recent local and global economic developments, particularly with the growing size of trade and investment with China under CPEC, the Bank foresees that yuan denominated trade with China will increase significantly and will yield long term benefits for both the countries. When asked, the SBP spokesman said the statement on yuan was issued due to many queries from media about the use of the currency for bilateral trade. He said it seemed there was confusion about the use of yuan for bilateral trade which was clarified with this detailed statement.

85 pc foreign investors forsee growth

on 30/01/2018

The Perception and Investment Survey of the Overseas Investors Chamber of Commerce and Industry (OICCI) has found that near about three quarters foreign investors foresee continued growth in their businesses and plan to make further investments in Pakistan.

In percentage nearly 66pc respondents of the survey were found indicating plans for making new investments in business and human capital. Around 85pc of the respondents expect increased sales and 68pc anticipate a rise in their profits in coming years.

Yet another healthy sign was that the issue of energy shortages, which was listed as the second biggest challenge in the last three surveys, has dropped out of the list of top five challenges. However, law and order still remains in the top five list but it dropped two points down and at present is the biggest challenge on number three instead being the number one.

The results of the survey have been presented to Prime Minister Shahid Khaqan Abbasi. OICCI President Khalid Mansoor told the prime minister that the overall results of the survey reflect improved and positive sentiments of the members of the OICCI.

OICCI members also highlighted key concerns impeding fast growth in foreign direct investment (FDI), including a negative perception of the country against positive realities. They pointed out that a poor ranking on World Bank`s Ease of Doing Business Index and tax related matters, like the year-on-year continuation of three to four percent super tax, long delays in the settlement of refunds and a growing number of inter provincial coordination issues, can be managed by ensuring good governance.