China Kingho Group to invest in Thar Coal field

"Thar coal field in Sindh is spread over more than 9000 sq km and is bestowed with 175 billion tons of lignite coal." — File Photo

ISLAMABAD: The Kingho Group being the largest private group of China has expressed its keen interest to Invest in Thar Coal project.

A seven-member delegation of M/s. China Kingho Group, headed by Executive Vice President Ma Xiaomin, visited Board of Investment (BOI) to explore investment opportunities in Pakistan in coal sector and development of coal fields of Thar, Badin, says a statement issued here.

Minister of State and BOI Chairman Saleem H.Mandviwalla stressed that in order to sustain economic growth, Pakistan needed to develop its indigenous energy resources rapidly.

IMF conditions hitting businesses: Humayun Akhtar

KARACHI: The International Monetary Fund’s prescription of hiking interest rates, taxes and power tariffs in the country will be counterproductive for the manufacturing sector and economy on the whole, a former commerce minister and businessman said.

In a meeting with bed linen exporters, the former minister, Humayun Akhtar Khan, said the interest rates have been cut globally to encourage businesses while in Pakistan, the situation is exactly otherwise.

“The economy is sustaining on the IMF loans and the government is blindly following its dictations,” he said. Akhtar said that the foreign direct investment (FDI) must be channelised into export-based industries, not just in telecom and power sectors, to strengthen the economy.

KESC reduces power outages for residential areas

KESC has announced the reduction in the duration of power cuts in the residential areas of Karachi.

 

A KESC spokesperson on Tuesday announced a reduction in the duration of power cuts after receiving 80 mega watts of power supply from Kanupp Nuclear power plant.

The duration of power outages will vary from seven to five hours in different areas. Industrial areas, however, continue to experience up to 12 hours of power cuts.

IMF concerned over Pakistan’s economic reforms

KARACHI: The International Monetary Fund (IMF) has expressed concern over Pakistan’s slow implementation of energy sector reforms and a revised general sales tax, officials said on Tuesday.

The IMF and Pakistani officials are meeting in Islamabad to discuss the possible release of the sixth tranche of an $11 billion emergency loan agreed in November 2008, which has kept the economy afloat. Talks end on Tuesday.

“Though things are not very good, it is still too early to say whether the sixth tranche is in danger,” an official source said.

If the IMF does not approve the release of the sixth tranche other donors would be hesitant to provide aid or loans, as well, which would threaten Pakistan’s economic stability.

Strike on, strike off

Industrialists irked by power outages, assured by Sindh governor. 

KARACHI: Industrialists have rescinded an appeal for a strike on Wednesday on the back of assurances by Sindh Governor Dr Ishratul Ibad. The governor said that emergency measures would be taken to ensure the supply of electricity to industries and to improve industrial conditions.

Following the governor’s assurances, the Korangi Association of Trade and Industry (KATI) decided not to go through with a strike on Wednesday.

Crucial talks with IMF, WB put off for three days

The talks have been suspended so that the economic managers could seek President Zardari's intervention in taking difficult economic decisions.—Reuters photo

ISLAMABAD: The crucial talks between the government and twin missions of the International Monetary Fund and World Bank remained suspended for a day on Tuesday and then put off for another two days to seek top level political intervention in difficult economic decisions.

Informed sources told Dawn that the two sides were originally scheduled to conclude on Tuesday, or latest by Wednesday, their negotiations on macroeconomic framework and on a strategy for economic stabilisation and containing the rising fiscal deficit.

Industries to shutdown in protest against power cuts

KARACHI: The representatives of the six industrial areas of Karachi have decided to observe a shutdown on Wednesday if the Karachi Electric Supply Company (KESC) fails to restore uninterrupted supply by Tuesday.

The decision was taken at a joint meeting of the associations of the six industrial zones of Karachi, which took place at Korangi Association of Trade & Industry (KATI) on Saturday.

Chairmen of SITE Association of Industry, North Karachi Association of Trade & Industry, Federal B. Area Association of Trade & Industry, Landhi Association of Trade & Industry, Korangi Association of Trade & Industry, and SITE Super Highway Association of Trade & Industry represented their associations at the meeting besides others.

IMF power deal sealed after US dropped trade links

WASHINGTON: A last-minute deal among G20 nations to give emerging economies more voting power at the IMF was made possible when the United States abandoned efforts to link the shift to trade balance targets, sources said on Wednesday.

US Treasury Secretary Timothy Geithner introduced the idea of tying actions to bring about a better-balanced global economy to more International Monetary Fund voting power during meetings of the Fund in Washington last month.
Geithner fleshed out his proposal in a letter to finance ministers of the Group of 20 nations in which he pressed for a deal to limit current account surpluses and deficits to a specified share of national output.