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Market Situation Analysis of contracted projects in Pakistan

12/28/2009

Affected by multiple factors, in 2009 Pakistan contracted projects (including mechanical and electrical products and large complete sets of equipment) market, a substantial contraction. Firstly, the IMF loan conditions, the Pakistani government to strictly control expenditures, the sharp drop in the public domain on three occasions Development Plan (PSDP) of the budget expenditure, coupled with the budget of the external funds are not in place, a large number of infrastructure projects forced to shut down or stay launched. Secondly, a sharp deterioration in the security situation in Pakistan, some construction projects, due to the construction site safety more difficult to protect the little company is interested, it is difficult to start. In 2009, developments in various fields is as follows:

(A) power construction stood out. Due to the growing status of power shortages (peak hours gap up to 5 million kilowatts), more frequent power cuts, the public dissatisfaction with increasing force the Government to increase investment in power construction. 2008-09 fiscal year, PSDP actual capital in the area of electricity for the 103.3 billion rupees, exceeding budget by 25%. Relatively short construction period of thermal power project is still the first choice, Nandi Pu, Ben. Kassem, and Qiqiao Mee Lin, the three combined-cycle power plant projects have started, with a total installed capacity of 1.51 million kilowatts. In addition, kudu combined-cycle power plant (74.7 kw) of the construction units have been identified. The Pakistani government also plans to "fast-track" approach to start 19 rental power plant construction projects, but strong opposition from all sides, progress is slow. In the transmission, the Pakistani government to use the ADB loan has launched a seven transmission line upgrading projects and six private power station network engineering.

(B) almost no improvement in water conservancy construction. As the number of large projects has not yet proved completion of the focus areas of water conservancy construction is still under construction, the project is to accelerate the construction schedule. 2008-09 fiscal year, the actual capital in the field of 41 billion rupees, mainly for increasing the height of Mangla Dam, Nile Mu. Jiele Mu Hydropower Station, Satepala water irrigation and other projects. In addition, also launched four small dams and two dam rehabilitation project to invite tenders. Concern of the Bhasha Dam project had been initiated the tendering exercise advisory unit, but financing problems have not been implemented, little real progress. Kalabage dams and irrigation channels, river banks and other projects in India due to disagreements and re-shelved the provinces.

(C) Traffic-building is relatively stable. In the international financial institutions lending the support of Pakistan and the field of transportation infrastructure has steadily improved. 2008-09 fiscal year the actual funds available in the field 514 rupees, and the budget balanced, a number of projects put up the work smoothly. Highways, financed by the ADB on the 4th Highway (M4) and the World Bank-funded National Road No. 55 (N55) construction projects, the basic conclusion of the tendering exercise recently is expected to start. Railways, 75 motorcycles, 500 trucks and 202 buses have been identified procurement project implementation unit, the signal system upgrade project tender is drawing to a close. Airport, Beijing Capital International Airport pile project has already launched a first bid of the other tenders the tender to be the near future. The port, the port of Karachi coast wall works, tendering Qasim Port Expansion Project is progressing well.

(D) slow down the pace of energy exploration. As the Pakistan domestic energy, electricity triangular debts serious problems, coupled with deteriorating security situation in Europe and the United States investor confidence plummeted, energy exploration activities in Pakistan began to slow down the upstream exploration, drilling and engineering services market shrinking. Ministry of Petroleum and Natural Resources, according to Palestinian statistics, in 2009 a total of 90 drilling, down 10%, about one fifth of the rig is stopped and other state geological exploration contracts be reduced by about one third.

(E) communications markets have been shrinking dramatically. The past two years, Palestinian communications due to intense competition and access to low-profit era, at the same time, the global economic recession has also caused major telecommunications operators, there are different degrees of financial crisis. To cut costs, in 2009 telecommunications operators significantly reduce network construction and expansion of investment in procurement of equipment, communications equipment market since 2002, the most significant decline.

(F) The Housing build markets deep trough. This year, a large number of Gulf countries because of real estate investors and developers in the international financial crisis, seriously damaged, one after another withdrew from the Palestinian, leading to Palestinian housing construction market into low ebb. Apart from the Pakistani government-funded "Prime Minister Housing Scheme" under a very small number of houses started, there is no large-scale housing construction project started, some of the construction project has also experienced varying degrees of payments crisis.