# Infrastructure and Transport News



## Neo

*46 road projects of Rs 400 billion to be completed by 2015 *

KARACHI (January 07 2007): Federal Minister for Communication, Shamim Siddiqui said, about 46 projects of Rs 400 billion in road sector will be completed by 2015. Speaking at a seminar on "Project Management" in collaboration with 'All Pakistan Contractors Association' and 'Project Management Institute' here on Saturday.

He said the present government has started project worth billion of rupees across the country. Project management experts are, therefore, needed to complete the projects efficiently.

"At present about 22 projects are delayed including the most important Islamabad-Murree project, due to lack of proper project management expertise," he added. Among the mega projects being carried out by the government were Karakoram Highway, M-1, M-4, M-5, M-6, M-7, RCD, N-55 Highway and Gwadar-Hub road, these will be completed by 2015.

To a query about the progress on Thatta road, he said, proper departmental investigation is being carried out as Sindh Government has also complained and involved staff would be punished. He appreciated the organisers for arranging a seminar on topic of project management.

http://www.brecorder.com/index.php?id=514636&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Pakistan plans rail link on its side of Kashmir*

Saturday January 6

The Indian Railways' effort to run trains to the Kashmir valley this year has had an impact across the Line of Control, with Pakistan Railway starting feasibility studies to lay tracks from Rawalpindi to Muzaffarabad, the Capital of Occupied Kashmir (Azad Kashmir). 
Pakistan Railway is also looking into building a 40-km link between Dina and Mirpur at the southern tip of Azad Kashmir. This shorter link (see map) is likely to be executed first as the Rawalpindi-Muzaffarbad line will be more difficult to build, considering the mountaneous terrain. 

Mirpur is presently connected to Pakistan through the Peshawar-Lahore Grand Trunk Road. Pakistan Railway officials said that since Mirpur is fast emerging as the industrial hub of Azad Kashmir, having rail connectivity with the place was economically crucial. 

"We are studying three or four different routes between Dina and Mirpur. Our survey began only recently and we will be completing it by April," Mohammed Ashfaq Khattak of the consultancy firm told The Indian Express over phone. 

"Apart from deciding on possible routes, the feasibility study is also trying to find out if the project will be economically viable," said Malik Hayat, Rawalpindi's divisional superintendent of railways. 

The railways there spent Pakistani Rs 10 lakh last year on the Dina-Mirpur feasibility study, official data show. And sources said international help and expertise may be sought at a later stage. 

On the Indian side, preparations to run trains in Kashmir are at an advanced stage, with operations between Udhampur and Katra slated to begin soon. And the more significant target of bringing a train into the Valley is likely to be met sometime by March. 

http://in.news.yahoo.com/070105/48/6avq5.html


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## Neo

*Airblue depicts 91.6 percent seat capacity growth in 2006: CEO *

KARACHI (January 09 2007): Pakistan's fastest growing airline, Airblue, recorded a growth of 91.6 percent in available seat capacity on its route network from January to December 2006 as compared to the corresponding period last year. There was also an 85.5 percent increase in revenue passenger kilometers flown during the period.

Airblue CEO Shahid Khaqan Abbasi, reviewing the performance of the new generation airline, said it had last month reported a growth in profitability of over Rs 150 percent according to audited accounts for the 2005-06 accounting period, showing exceptional financial performance, and bucking the trend of substantial losses suffered by other Pakistani airlines.

The youngest airline of Pakistan, Airblue, he said, was able to achieve the unprecedented results by doubling its fleet size, floating additional capacity, and carrying revenue passengers at higher yields allowing it to achieve profitability in an environment where high fuel prices and operational costs were causing losses in billions in the Pakistan's aviation sector.

In the calendar year 2006, the Airblue achieved 1,820 million ASKs (available seat kilometers) as against 950 million ASKs in 2005 - showing a growth of 870 million ASKs or a 91.6 percent increase in the available seat capacity for the travelling public.

The revenue passenger kilometers (RPKs) were recorded at 1,410 million in the year 2006 as compared to 760 million in 2005 - showing a growth of 650 million RPKs or an 85.5 percent increase in the utilised seat capacity.

The passenger revenue in the period increased from Rs 2,370 million to over Rs 6,150 million, a 160 percent increase, reflecting substantial yield improvement in the period as the seat factor reduced from 80 to 77.5 percent.

Abbasi said the Airblue was able to achieve the outstanding results by offering a quality product with innovation at affordable prices. The airline has introduced e-tickets in Pakistan, web-based bookings, wireless check-in at the airports, self check-in-kioska, in-flight entertainment on domestic flights, gourmet meals, RRM and many more firsts to redefine flying.

For the year 2007, he said the Airblue has many first to offer to the value-conscious traveller. Additional domestic frequencies and destinations, more Gulf frequencies and destinations, and direct flights from Pakistan to the United Kingdom in early 2007, he added.

http://www.brecorder.com/index.php?id=515420&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*PIA and Ufone announce business strategy alliance *

KARACHI (January 09 2007): Pakistan International Airlines and Ufone on Monday signed a partnership agreement to launch a key strategic alliance. The key focus of this alliance will be on providing mutual benefits to existing and potential customer base of the two companies in terms of convenience, comfort and competitive advantage.

The programme will offer Ufone post-paid customers free and immediate enrolment into PIA's Awards + Plus frequent flyer programme, and enable them to earn PIA A+ air miles on use of Ufone services. In addition, members will benefit from other travel-related key benefits including access to business class lounges, excess baggage allowance, and other special promotions.

Currently PIA's domestic operations have registered a growth of 5pc with a market share of 69.5pc during 2006. The said partnership agreement thus focuses comparable benefits to both the companies and their customers. "PIA-Ufone alliance is a significant step in taking PIA's Frequent Flyer Programme to the next level, 'our Frequent Flyers are our most valuable customers'.

PIA team has been engaged in developing a set of unique, innovative and exciting offerings that will exponentially increase the value of programme for them, during calendar year 2007," Tariq Kirmani, Chairman & CEO, Pakistan International Airlines added on the occasion.

The contract was signed between Tariq Kirmani Chairman & CEO, Pakistan International Airlines and Mubashir Naqvi President & CEO Ufone. Senior officials of both the organisations joined strategic partnership signing ceremony.

http://www.brecorder.com/index.php?id=515396&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Sialkot airport to be operational in first quarter of 2007 *  

SIALKOT (January 09 2007): The mega project of Sialkot International Airport would be operational in first quarter of 2007. The development work on Sialkot International Airport costing more than Rs 2 billion is in top gear.

This mega project had a great significance because it was being totally financed by the private sector and the private sector had not built a project of this magnitude and size so far in the country.

According to airport sources that the Sialkot International Airport was being developed on Build, Own and Operate (BOO) basis and this airport at Sialkot would be a landmark not only in the history of this export-oriented city and hub of cottage industries but also for the country.

The air field light system costing more than Rs 170 million had already been installed at Sialkot International Airport as a result of which Boeing 747 planes would land at the airport.

The country's longest runway measuring 3.6 KM had been completed which would provide landing and take off facilities to Boeing 747 and other aircraft in bad weather like mist. The cargo terminal, apron and eternal roads of the airport had also been completed adding that terminal for domestic passengers were nearing completion.

According to a rough estimate over ten thousand exporters of Sialkot besides a large number of exporters and other passengers of Gujrat, Narowal, Hafizabad, Mandi Bahauddin, Wazirabad, Jehlum and Mirpur (Azad Kashmir) would be benefited with the completion of this mega project.

http://www.brecorder.com/index.php?id=515468&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Accor to open hotel in Pakistan*

KARACHI: Mercure Grand Hotel Karachi Airport, a project of Accor, one of the European leaders in the hotels and tourism and globally incorporate services, is to start operations on April 1, 2007, according to a press statement issued on Monday.

According to the statement the establishment of the hotel in Pakistan will bring an attractive European addition to the Karachi Airport district. The hotel will be located in the Civil Aviation Security Zone, a short five minutes away from the Jinnah International Airport Terminal. 

The hotel will begin commercial operations in two phases. Phase I opening on April 1 2007 will consist of 120 rooms and 2 suites, with an all day dining restaurant, coffee shop, swimming pool with pool bar.

http://www.dailytimes.com.pk/default.asp?page=2007\01\09\story_9-1-2007_pg5_11


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## sigatoka

Neo said:


> *Pakistan plans rail link on its side of Kashmir*
> 
> Saturday January 6
> 
> The Indian Railways' effort to run trains to the Kashmir valley this year has had an impact across the Line of Control, with Pakistan Railway starting feasibility studies to lay tracks from Rawalpindi to Muzaffarabad, the Capital of Occupied Kashmir (Azad Kashmir).
> 
> Mirpur is presently connected to Pakistan through the Peshawar-Lahore Grand Trunk Road. Pakistan Railway officials said that since Mirpur is fast emerging as the industrial hub of Azad Kashmir, having rail connectivity with the place was economically crucial.




It would be better if Pakistan could reduce or in fact eliminate duty and quotas on buses and if not all vehicles than at least ones that have higher people capacity such as 8 seaters and then also using the funds allocated to the rail development to improving roads infrastructure. 

Rail is not a rational solution to an area which is mountainous and has not very high population density (which applies to Kashmir) however the only reason it appear to be "cost effective" is because the price of motor transportation is artificially hiked by taxes and quotas. 

It is a backward mentality that links motor vehicles with personal consumption rather than an essential investment in a nations transporation link that is holding back development in this sector in Pakistan.


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## Neo

Ragardless of the density, raillink would be cost effective in terms of time management and heavyduty transportation.
There's also a stretegic aspect to this in times of crisis.


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## Neo

*Mercure Grand Hotel to start operation at Karachi Airport from April *

KARACHI (January 10 2007): Mercure Grand Hotel, Karachi, a five-star hotel, will start operation from April 1, 2007 and will bring an attractive European style hotel to the Karachi Airport. The hotel is located in the Civil Aviation Security Zone, a short 5-minute drive from the Jinnah International Airport Terminal.

This was announced by Christophe Landais, Managing Director of Accor, Middle East, while briefing newsmen in the hotel premises on Monday. He said that the hotel would begin commercial operation in two phases. Phase I, opening on April 1 2007, will consist of 120 rooms and 2 suites, with an all-day dining restaurant, coffee shop, swimming pool, with pool bar.

Phase II will open shortly afterwards and will consist of additional 55 superior rooms, all on ground level, with balconies and direct garden access, multiple seminar and convention facilities as well as a complete fitness centre.

He said that guests would experience a feeling of tranquillity, spaciousness and relaxation due to the extensive gardens, recreational amenities, and the general layout of the attractively landscaped property. The renovation is both attractive and contemporary with direct assistance from globally recognised companies such as W&A International. The hotel will offer guests one of a kind leisure experience in Karachi area.

The Mercure Grand Hotel, Karachi Airport, project is a complete and total refurbishment of an existing facility on 10 acres land. The hotel is owned by United International Group (UIG) Private Limited, with Muhammed Akhtar Qureshi as C.E.O. The project has a substantial minority interest from the JS Group, which is the largest financial conglomerate in the country with increasing stake in the hospitality sector.

Upon opening, the Mercure Grand Hotel Karachi Airport will be the only international standard hotel in Northern Karachi and Airport area. Accor Middle East already has an advance team in place and is actively seeking permanent staff for the hotel.

Christophe in his presentation said: "Accor Middle East is delighted to have been chosen to manage this attractive and dynamic project which will provide at least some much sought after relief to the significant hotel room demand situation in Karachi. Accor Middle East is wholly committed to the Pakistani market and we intend to significantly grow our portfolio of hotels in this dynamic country."

Grand Mercure is one of several fast growing Accor brands in the Middle East region along with Sofitel, Novotel, Mercure, and Ibis. The addition of the Mercure Grand Hotel Karachi Airport will create total 5 Grand Mercure hotels in the Middle East zone (comprising the entire Arabian Peninsula, including the Levant countries as well as Iran and Pakistan). The hotel will join a global network of over 700 Mercure hotels in 49 countries and will add to Accor's existing portfolio of 20 hotels in the Middle East.

In addition to Mercure Grand Hotel Karachi Airport, the Sofitel Karachi in Clifton is another Accor hotel, which would shortly begin construction with the opening planned in late 2009. Accor is one of the most significant hotel management companies with regard to expansion and development in the region with over 30 hotels currently under construction in the Middle East area. Within 3 years, Accor Middle East anticipates having approximately 70 hotels under management contract in the Middle East.

With 160,000 associates in nearly 100 countries, Accor is the European leader in hotels and tourism and the global leader in corporate services. To provide private and business clients with superior service, it leverages nearly 40 years of expertise in its two core activities:

Hotels, with Sofitel, Novotel, Mercure, Suitehotel, Ibis, Etap Hotel, Formule 1, Motel 6 and Red Roof Inn brands, represent more than 4,000 hotels and 475,000 rooms in 90 countries, as well as strategically related activities, notably Lenotre Services to corporate clients and public institutions, through Accor Services. Total 21 million people in 35 countries benefit from its broad portfolio, which includes food vouchers, people care, incentives and loyalty programs.

Muhammad Akhtar, CEO of UIG and Muhammad Imran Qureshi, Director, UIG were also present on this occasion.

http://www.brecorder.com/index.php?id=515752&currPageNo=1&query=&search=&term=&supDate=


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## Neo

*$400 million ADB loan for infrastructure projects *

ISLAMABAD (January 15 2007): The Asian Development Bank (ADB) has approved $400 million loan to Pakistan for 'Private Participation in Infrastructure and Program-I (PPIP)' aimed at enhancing economic growth through improved infrastructure services.

Its outcome will enhance private sector participation in the country's infrastructure investment and maintenance to reduce the government's fiscal burden and provide better infrastructure services to the population and enterprises, official sources told Business Recorder.

To achieve the desired objectives, subprograms will also be executed, including strengthening the enabling environment for PPI by addressing the remaining policy, legal, regulatory, and institutional constraints and providing technical and financial support for PPI projects.

This is a cluster program that will consist of Subprogram-I and Subprogram-II (the design of which will depend on the outcome of Subprogram-I and the government's emerging priorities).

A technical assistant grant will support implementation of Subprogram- I and capacity-building initiatives required to support the government's PPI initiatives over the medium- and long-term.

By promoting PPI, the operation will help the government to leverage more financial resources into infrastructure by using the private sector as an intermediary. This will help to fill the gap between (i) the infrastructure the government can afford, and (ii) the infrastructure needed for economic development and poverty reduction, as articulated under the government's Medium Term Development Framework (MTDF).

Infrastructure development is a key pillar of the government's MTDF in recognition of its importance for sustaining economic growth and alleviating poverty. The MTDF acknowledges the necessity of PPI in infrastructure and utilities from the point of view of capital mobilisation, but also in terms of ensuring efficiency and effectiveness.

The government is committed to promote PPI by addressing remaining political, legal, regulatory, and institutional constraints to PPI in priority sectors. Further, under the MTDF, the government has approved specific development programs for the power, transport, and water sectors.


http://brecorder.com/index.php?id=51... rm=&supDate=


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## Neo

*'ADB extending $900 million for mass transit scheme' *

KARACHI (January 15 2007): The Asian Development Bank (ADB) is extending financial assistance to the tune of $900 million in the shape of grants for the mass transit programme in the metropolis and the city's water and sewerage projects.

This was stated by Karachi Naib Nazim Nasreen Jalil. She was speaking in the 'Bilmushafa' programme of Radio Pakistan, Karachi, on Sunday. She said that the ADB assistance would be utilised for the mass transit programme in the metropolis, the rail system, roads, overhead bridges, underpasses and for improvement of water supply and sewerage.

The Naib Nazim said that Karachi had been neglected in the past. However, she added that attention was paid to this metropolis when President Pervez Musharraf came to power.

She said that a package of $29 billion was prepared under Tameer-i-Karachi programme and the stakeholders were asked to invest in it.

She pointed out that now development programmes are being carried out in Karachi. Nasreen said that both federal and provincial governments want that Karachi should make progress.

She said that Karachi earns almost 68 percent of the revenue of the country, which speaks of its significance. She highlighted the strategic location and importance of Karachi and said that in its development lay the development of the province and the country.

She said that from the K-3 water scheme of 100 MGD, arrangements were being made to provide 6 MGD to Lyari, and 3 MGD to DHA. Steps are also being taken for supply of water to Baldia Town from this scheme, she added.

The Naib Nazim said that Rs 50 million each have been given to the towns for laying sewerage lines and strengthening the water supply lines.

She said that a lot of attention was being paid towards education, and 38 schools would be upgraded as model schools and they would be of the standard of private schools.

She said Nazim Mustafa Kamal "is doing a lot" for the progress and development of the city. She said that concerted efforts should be made by all so that this city could make a rapid headway.

She also spoke about `Hamara Karachi' programme which is being celebrated to mark the platinum jubilee of the Karachi Metropolitan building.

Nasreen said that a number of programmes were being organised for every segment of the society to foster understanding and brotherhood among various communities who dwell in this metropolis and to develop a sense of belonging for the city.

She also pointed out that there are more than 200 historic buildings and "we want to provide information to the people about this city".

http://www.brecorder.com/index.php?i... rm=&supDate=


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## Neo

*Private sector, overseas Pakistanis told to run trains *

LAHORE (January 17 2007): Pakistan Railways (PR) was encouraging private sector and overseas Pakistanis to invest and run their trains on nominal charges while using the PR tracks. Federal Minister for Railways, Sheikh Rasheed Ahmed stated this while talking to newsmen, here at Nazria-e-Pakistan Foundation on Tuesday.

The minister maintained the PR had also handed over the operation of a Freight Express to as many as 23 parties from the private sector. Pakistan Railways will lay down the track between Spin Boldak and Kandhar as and when it gets green signal from the Afghan government, he added. He said Pakistan Railways was offering its eight plots for construction of hotels.

The minister said that he would inaugurate the Ran Patthani Bridge during the current month. He announced that a Rawalpindi-Karachi bound Mashaheer (Luminaries) Muslim League Train would be launched on March 23, 2007. Although the new train would be slightly expensive but it would offer quite a range of facilities. Catering service of this train would be given to five-star hotels, he added.

Pakistan Railways had successfully launched Pakistan Express and Jinnah Express to facilitate the passengers to a maximum extent, especially those belonging to middle class of the society, he said.

http://www.brecorder.com/index.php?id=517973&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*75 locomotives to be imported *

ISLAMABAD (January 17 2007): The government will soon float international tenders for the import of 75 locomotives to overcome the shortage, which is causing huge losses to Pakistan Railways.

"We plan to import 75 new locomotives to meet the growing demand for transportation. Tenders would soon be floated internationally," Railways Minister Sheikh Rashid Ahmed said this while talking to Business Recorder here on Monday.

The Pakistan Railways was facing acute shortage of locomotives, especially due to increasing number of accidents, which had not only created scarcity of wagons but also harmed national exchequer.

About 30 accidents happened during last year, which caused losses of around Rs 40 million to the PR, he told. "We have serious problem regarding shortage of locomotives. We will not only import locomotives but also the production of engines locally is also on the cards," he further said.

Th minister had also met with the Iranian ambassador last week in this connection and expressed his desire to import locomotives from Tehran. On the other hand, the controversy over the supply of faulty locomotives by a Chinese manufacturing company is still on. He told this correspondent that the authorities have worked out a plan to manufacture locomotives at Risalpur locomotive factory. "Initially five locomotives would be built on trial basis at Risalpur," he said, adding that it would also help prove the 'productivity' of the factory.

The productivity of the factory has been questioned time and again and opposition legislators have even voiced for shutting down the unit. He said that funds were one of the major reasons behind poor manufacturing.

http://www.brecorder.com/index.php?id=517983&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Air Arabia to start Sharjah-Pakistan flights *

ABU DHABI (January 18 2007): Air Arabia LLC on Wednesday announced upcoming start of operations between Sharjah and Pakistan. After talks in Abu Dhabi with United Arab Emirates and Pakistan authorities, Air Arabia's project to fly to Pakistan was given go ahead and will not fail to please Pakistani community of UAE.

Sheikh Abdulla Bin Mohamad Al Thani Chairman Air Arabia said "We are pleased with outcome of talks. We had desire to operate to Pakistan for very long time. It is happy to announce that people in UAE and Pakistan will be able to benefit from using low fare travel between two the countries.'

Air Arabia will fly daily to Pakistan, splitting operations between Karachi four days a week, and Peshawar three days a week. Flight schedules will soon be announced and allow eager passengers to book and pay online by simply visiting www.airarabia.com. Pakistan is the 21st country Air Arabia flies to raising its destinations portfolio to 34 destinations in three years of operations.
http://www.brecorder.com/index.php?id=518341&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*PIA seeks Rs 18 billion to offset losses *

ISLAMABAD (January 18 2007): Pakistan International Airline (PIA) has approached to the government for seeking a Rs18 billion package for financial restructuring to offset losses it suffered in 2005 and 2006 due to high fuel prices. Its management on Wednesday held a press conference here to give details of its operations and steps taken to improve financial health.

It said PIA suffered loss of Rs 18 billion due to high fuel cost and it needed the government financial support to overcome its financial woes for smooth sailing now onward. Meanwhile, when the management was holding the press conference, PIA Chairman Tariq Kirmani was holding a meeting with Prime Minister Shaukat Aziz to apprise him of PIA financial woes.

The management told the newsmen that PIA operating expenditures rose to Rs 9,188 million in 2006 due to increase in the international fuel prices, claiming that steep increase in fuel prices started from early 2005 and reached an unprecedented level of $78 per barrel in September 2006, taking PIA fuel cost from Rs 18 billion in 2004 to approximately Rs 34 billion in 2006.

The management said it took a number of steps to mitigate the impact of fuel cost to improve operating results of the corporation such as introducing various operational restructuring steps.

Reuters adds: State-run Pakistan International Airlines would start hedging up to 20 percent of its fuel purchases from February to guard against volatile prices, a senior airline official said on Wednesday. "The process will start within a month," Kamran Hasan, airlines's senior vice president, told a news conference.

Hasan said the airline has hired a consultant to help with hedging jet oil as the country lacks expertise. The government last month allowed PIA, which buys over $558 million of jet fuel a year, to hedge its fuel purchases.

Another PIA official said the airline has short-listed four foreign banks, including ABN Amro, Citi Bank, Standard Chartered Bank and Deutsche Bank for the hedging. "Everything is in place and we are waiting for a right time to go for hedging," Arif Majeed, head of PIA's finance department, told Reuters.

PIA's fuel cost went up to 34 billion rupees in 2006 from 18 billion rupees in 2004. It suffered a loss of 6.14 billion rupees in the first six months of last year, while its accumulated losses currently stand at 17.94 billion.

The airline is also paying over two billion rupees annually in financial charges on bank borrowing for fuel purchases. PIA, Pakistan's biggest airline with 42 planes and around 19,000 employees, is slated for privatisation.

http://www.brecorder.com/index.php?id=518286&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Hub-Karachi railway track under study *

KARACHI (January 18 2007): The Lasbela Chamber of Commerce and Industry (LCCI) will provide necessary commercial and industrial data to Railway for their assessment in developing the feasibility report of linking Hub industrial area with Karachi through railway track.

Considering the importance of Lasbela district being the gateway to Gawader port, the chamber proposed to the Ministry of Railway for laying a railway track from Karachi to Hub. The chamber also proposed that a passenger and goods trains be run to facilitate industrialists to reduce the cost of transportation of their workers and goods, thus reducing their cost of production.

After receiving the proposal Railway authorities have advised the chamber to contact the railway approved consultants to prepare a feasibility report of the project.

The chamber contacted as many as eight railway-approved consultants and ultimately M/s Pakistan Railways Advisory and Consultancy Services (Pvt) Limited Islamabad sent their proposal for preparing the feasibility report. Pursuing the same, a meeting was held between Pakistan Railway, Lida and the Lasbela Chamber to consider the ways and means to proceed further.

An interdepartmental body comprising representatives of Pakistan Railway, LCCI and Lasbela Industrial Development Authority (Lida) has been formed to study the technical and commercial aspect of the proposed linkage of Hub, Gawadar and Karachi through a railway track.

http://www.brecorder.com/index.php?id=518296&currPageNo=3&query=&search=&term=&supDate=


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## Neo

January 18, 2007 

*Infrastructure cess rate revised upward*

KARACHI, Jan 17: The Sindh government has revised upward rate of infrastructure cess, adding a slab of weight and distance covered by an import consignment to reach its destination in the province. The consignees will now have to pay one paisa per km for the distance to their destination.

According to the new schedule of tax announced through an ordinance issued by the governor of Sindh for consignments up to 1,250 kg, infrastructure cess will be 0.5 per cent of C&F value, plus one paisa per km.

The rates of a consignment of 2,030 kg and above will be 0.505 per cent plus one paisa per km; for 4,060 kg and above the rate will be 0.510 per cent plus one paisa per km; for 8,120 kg and above 0.515 per cent; for 16,000 kg 0.520 per cent and for consignments exceeding 16,000 kg the rate will be 0.525 per cent plus one paisa per km.

Earlier, the infrastructure cess was charged at a flat rate of 0.5 per cent of the C&F value of a consignment. However, a number of importers challenged the rate in the Sindh High Court arguing that some importers were using less amount of infrastructure than others hence the tax should not be charged at a flat rate. The case is pending in the SHC for the last one-and-a-half years.

To satisfy the complainants, the Sindh governor issued the Sindh Finance (Amendment) Ordinance, 2006, which has come into effect with immediate effect.The ordinance said in the Sindh Finance Act, 1994, hereinafter referred as the said Act, in section 9, for sub-section (1), the following shall be substituted:-Ã¢â¬Å(1) There shall be levied and collected a cess for maintenance and development of infrastructure on goods at the rate determined on the basis of their value, net weight, and distance in accordance with the schedule appended to this Act, for carriage by road and smooth and safer movement in the province upon entering or before leaving the province from or for outside the province or country, through air or sea.

The infrastructure cess is a major revenue earner for the Sindh government, which collected Rs4,602.761 million during 2005-06. The six months (July-Dec 07) collections from the cess is Rs2275.987 million.

Secretary Excise and Taxation Iqbal Ahmed Bablani told Dawn on Wednesday that the step taken by the Sindh government would end long litigation between the government and the importers and it would lead to increase in revenue. The concerned parties were hitherto depositing cess in the court.

He said that the cess rates had been rationalised to give benefit to the importers using fewer infrastructure compared to those importing huge consignments and carrying them to a long distance.

Chairman, KCCI sub-committee on Taxation, was unable to give his comment on the development, saying that he needs some time to give his reaction.

He, however, said that levy of one paisa per km on the distance covered by an import consignment will increase the cost of imports, which would be definitely passed onto consumers.

http://www.dawn.com/2007/01/18/ebr5.htm


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## Neo

*President to inaugurate SIA on February 15 *

SAMBRIAL (January 20 2007): President General Pervez Musharraf will formally inaugurate the newly constructed Sialkot International Airport (SIA) on February 15, 2007 and on this day first cargo flight carrying export goods would depart from this airport.

Sialkot International Airport's Director & Convenor Media Committee, M Zafar Malik disclosed this while talking to journalists here on Friday. He said President General Musharraf had been sent invitation in this regard. He said more than Rs 2 billion had been incurred on the construction of this airport on which modern system had been installed for guidance of the aircraft to land and take off on it even in thickly fog.

M Zafar Malik said such a sophisticated system was not installed at any airport of the country, adding that the runway of this airport was 3.5 kilometer long and during any emergency the F-16 could also land and take off on it. It was a second project after Sambrial Dry Port, which had been completed in private sector helping to overcome unemployment in the region, he added.

http://www.brecorder.com/index.php?id=519410&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Pakistan to sell land for 5-star hotels in Dubai*

22 January 2007 

ABU DHABI Ã¢â¬â Pakistan Railways will hold roadshows for selling its eight plots of land located in prime commercial areas across the country for establishing five star hotels. The government is also looking for joint venture partners for launching a chain of 55 budget hotels, said Shaikh Rashid Ahmed, Pakistan's minister for railways.

"We are finalising our programme, to make our presentation in Dubai to offer our prime land for setting five star hotels, budget hotels and electric power stations to lure Gulf investors", said Shaikh Rashid in an interview with Khaleej Times, yesterday.

He said that of these eight plots for five star hotels, three are located in the prime commercial localities of Karachi, and one each in Lahore, Rawalpindi, Multan and Sukkur.

Last year, he said, one plot in the heart of Karachi was sold out to a Sharjah-based group for constructing $200 million complex. He said there is tremendous need for budget hotels. Pakistan Railways has planned to launch 55 budget hotels on joint venture basis, in all the major metropolitan cities and towns in the country. The Pakistan Railways has invited Expressions of Interest (EoIs), which will be expired this week, for the establishment of the project. The EoIs will be extended to attract gulf investors.

Giving details of the project, Shaikh Rashid said Pakistan Railway, as joint venture partner would invest its "Land as Equity", while the lead partner will plan, design, finance, develop, operate and market the project, ensuring regular revenue streams to Pakistan Railways during the agreement period.

The partners would be responsible for obtaining any approvals, sanctions and certification from local or relevant agencies for setting up the project. "These hotels are aimed at providing better accommodation to the people at comparatively affordable rates. The locations where these hotels would be established include Karachi, Hyderabad, Quetta, Chaman, Sibbi, Taxila Cantt, Rawalpindi, Jehlum, Sargodha, Golra Sharif, Peshawar, Attock, Kohat, Hassanabdal, Mardan, Charsadda ,Nowshera. Lahore, Faisalabad, Gujranwala, Sialkot and other cities. 

http://www.khaleejtimes.com/Display...business_January525.xml&section=business&col=


----------



## Neo

*Government may declare transport an industry *

ISLAMABAD (January 25 2007): The government may declare transport as an industry enabling the transport operators to get financing from the banks. This was a unanimous demand by the transport operators' representatives to the Minister for Industries and Production, Jehangir Khan Tareen on Wednesday.

The minister, presiding over two separate meetings with truck body-makers and large fleet operators said the government will take up the issue with the banks and some solution could be found. If declaring it, as an industry is the only solution to promote transport sector then the government will go for it, he assured.

He assured all the stakeholders of the transport sector that the government would solve all their problems to modernise it. A series of meetings have been planned to understand the situation so that a holistic approach could be adopted to improve the services, he added.

The minister said a workshop has been arranged on February 13 in which all the stakeholders are invited to take their comments. The truck fleet modernisation was part of the National Trade Corridor Improvement Programme initiated by Prime Minister Shaukat Aziz, he added.

Tareen directed the Engineering Development Board (EDB) for conducting a survey of truck body makers. The government will look into the possibilities of establishing an industrial estate of 25 acres around Rawalpindi in order to solve the problem of land for the truck body builders, he added. A training institute for drivers of heavy vehicles will also be established to meet the demand of skilled manpower of the sector, he added.

The meetings were informed that National Highway Authority is planning to establish 104 weigh-bridges at different highways to control overloading, which is damaging roads.

http://www.brecorder.com/index.php?id=521327&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Ã¢â¬ËCountry needs Rs2.9 trillion to upgrade infrastructureÃ¢â¬â¢ *

KARACHI: The State Bank of Pakistan (SBP) has estimated that countryÃÂ­s financing needs to upgrade present infrastructures will be Rs2.9 trillion.

Muhammad Arif, Joint Director, Financial Markets Strategy and Conduct Department of the Central Bank, while presenting his paper on Sukuk, at a 2-days international conference at a local hotel on Wednesday detailed following break up.

Ports: Rs104 billion; Aviation: Rs133.9 billion; Energy: Rs1102 billion for private sector and federal government; Karachi Electric Supply Corporation: Rs58 billion; water resources: Rs219 billion.

In fuel sector the public sector will need Rs219 billion and private sector financing needs will be Rs174 billion.

He said the issuance of Sukuks is the best financing option.

He suggested five-point way forward for achieving the financing targets: 

Creation of primary sovereign Sukuk Market.

Creation of critical mass in sovereign market to the level of Rs30 billion. This would enable Islamic banks to meet their reserve requirements leaving some mass to secondary market trading.

Creation of Repo market by innovating some model in accordance with Shariah requirements and devising documentation and drafting of master Repo agreement.

Making Islamic financing activities part of Monetary Policy Operations. This can be done through introduction of short-term Islamic Money Market instrument mimicking features of Treasury Bills.

Price dissemination mechanism be installed.

He disclosed that SBP is coordinating with international financial institutions in developing Islamic Money Market and Sukuk Market.

SBP has also formed a task force to develop Islamic Money Market and to suggest Government of Pakistan regarding structuring and issuance of Sovereign Domestic Sukuk.

SBP is also coordinating with SECP to develop corporate bond market by making them cost effective and by providing requisite market infrastructure.

According to him this would facilitate corporate Sukuk Issuance as well.

http://www.thenews.com.pk/daily_detail.asp?id=40228


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## Neo

*Modernisation of trucking discussed *

KARACHI: Minister for Industries, Production and Special Initiatives, Jahangir Khan Tareen has assured all stakeholders of transport sector that the federal government will solve their problems for modernisation. 

He was presiding over two separate meetings with truck body-makers and large fleet operators in Islamabad on Wednesday. 

He added that a series of meetings have been planned to understand the situation so that holistic approach could be taken to improve the services and efficiencies. 

A workshop on February 13 would be held in Islamabad where all stakeholders would be able to present their views. 

The minister said that truck fleet modernisation was part of the National Trade Corridor Improvement Programme. 

Tareen instructed the Engineering Development Board to make a comprehensive survey of truck body builders to formalize the industry. He promised that the government would look into the possibilities of establishing an industrial estate of 25 acres around Rawalpindi in order to solve the problem of land for the truck body builders. 

A training institute for drivers of heavy vehicles will also be established to meet the demand for skilled manpower by the sector, he added. 

Participants of the meetings were informed that National Highway Authority is planning to establish 104 weigh bridges at different highways in order to control the problem of overloading, which is damaging the roads. Tareen said that a plan would be circulated to the fleet operators in order to get inputs from them. 

The representatives of transporters unanimously demanded that transport should be declared an industry so that they could get financing from the commercial banks.

Tareen said that the government would take the issue of financing with banks and some solution could be found in this regard. If declaring industry is the only solution for them, then the government will go for it, he added. 

The transporters also demanded that truck stands should be shifted outside the cities, near highways in order to solve their parking and extra costing issues. 

Secretary Industries, Production and Special Initiatives Shahab Khawaja, senior officials of National Transport Research Centre, National Highway Authority, NLC and office bearers of various associations of transporters and truck manufacturers, attended the meetings. Imtiaz Rastgar, Chief Executive Officer, Engineering Development Board gave a presentation on various issues of the sector. 

http://www.thenews.com.pk/daily_detail.asp?id=40238


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## Neo

Thursday, January 25, 2007 

*Work on Indus Highway Phase III to start soon*

ISLAMABAD: The National Highway Authority (NHA) plans to start work on Phase-III of the Indus Highway (N-55), comprising a two-lane carriageway between Sehwan and Ratodero, with a $ 174 million Japanese soft loan.

Ã¢â¬ÅTenders have been issued in this regard, and construction work on the project will start soon,Ã¢â¬Â sources in the NHA told APP on Wednesday. Indus Highway or N-55 has a total length of 1,264 kilometres out of which 757 kilometres have been completed in Phase-I & II, while the remaining 465 kilometer section will be completed in Phase-III, said the sources.

Indus Highway provides a 500 kilometre shorter Peshawar-to-Karachi route than the National Highway (N-5). The completion of Phase III of the Indus Highway will pave the way for swift transportation of goods to and from Karachi. It will also be instrumental in bringing socio-economic progress to the less developed areas on the west bank of the River Indus. Moreover, the completion of this project will strengthen the capacity of the Indus Highway as an integral part of the national trade corridor.

The first two phases of the Indus Highway were also co-financed by the Asian Development Bank (ADB) and the governments of Pakistan and Japan.

http://www.dailytimes.com.pk/default.asp?page=2007\01\25\story_25-1-2007_pg11_10


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## Neo

* PIA chief sees turnaround in 2007 *

KARACHI: Chairman Pakistan International Airlines (PIA) Tariq Kirmani hopes that 2007 could be a turnaround year for the national flag carrier but says to achieve this changes have to be made in every area and money will need to be spent.

He told this to members of cabin crew of PIA in a interaction, which is part of a series of periodical communication meetings with the employees of different departments of the corporation, said a handout issued here on Thursday.

Kirmani talked to them about high fuel prices and how it had affected the economics of the airline in the last two years. Fuel costs in the last two years had increased by 100 per cent from Rs18 billion in 2004 to Rs36 billion in 2006 or from 31 per cent of total revenues in 2004 to 48 per cent in 2006. The airline industry average of the cost of fuel as a percentage of revenues was merely 27 per cent, he said.

Ã¢â¬ÅWe have to change the peopleÃ¢â¬â¢s perception about the organisation. Criticism for the sake of criticism was no good and served no ones purpose. We require new blood to run this organisation and for this the first preference is from within the organisation and then from outside,Ã¢â¬Â the handout quoted him as saying.

He said there are some tough decisions to be made but one thing is for sure that even if PIA is a public sector organisation it will not function as such.

He agreed with a suggestion that fortnightly meetings among members of the operational departments should be arranged and held regularly so that the problems and issues are better understood at the operational level and are resolved for the benefit of all.

http://www.thenews.com.pk/daily_detail.asp?id=40384


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## Neo

*Airblue plans Islamabad-UK operation *

KARACHI: Pakistan's one of private sector airlines, Airblue, on Friday announced plans to launch its first long-haul international operation between Islamabad and Manchester, United Kingdom, from the middle of May, 2007. 

According to a press release issued here, the Chief Operating Officer (COO) of Air Blue, Shahid Khaqan Abbasi said the airline had been evaluating proposal to operate to UK for over a year and completed all necessary official requirements to launch the flights. 

He said the airline first obtained official permission from government for operations and formal permission was obtained from the UK Department of Transportation. 

The decision to start operation to Manchester was taken in the wake of large strength of Pakistani community in the region, Abbasi said.

Negotiations are in process with Manchester Airport Group on details of flight operation, which include slot timing, handling, engineering, catering and other allied support functions, the press release added. 

With a fleet of six Airbus aircraft, Airblue operates more than 30 flights a day to seven domestic destinations and three daily flights to Dubai. 

It has operated more than 10,000 flights in the last 30 months carrying over 2 million passengers on its network with revenues in excess of Rs12 billion.

http://www.thenews.com.pk/daily_detail.asp?id=40528


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## Neo

*CDGK plans to construct, improve eight more roads *

KARACHI (January 28 2007): City District Government Karachi (CDGK) plans to construct and improve eight new roads in the metropolis at the cost of Rs 143.8 million with a view to resolve increasing traffic problems.

In this regard, Works and Services Department of the CDGK has invited tenders from the A-class pre-qualified contractors for the construction of roads. In line with proposed plan, construction of Azeempura Road, Shah Faisal Colony, Jamot Wali Muhammad Road from PAF Base Korangi to Ali Akbar Shah Goth Bin Qasim Town will be done at the estimated cost of Rs 20 million.

Similarly, Cattle Colony to Coastal Area, Bin Qasim Town will be completed at the estimated cost of Rs 18 million; Rodalt Basti to Rehri, Bin Qasim Town at the cost of Rs 19 million; Road 363 from Road 362 to Road 10,000 Landhi Town with the estimated cost of Rs 10.7 million, Road 12000 to Road 8000 along Ismail Goth Landhi Town at the cost of Rs 13.2 million; Navi Road from Road 16000 to I&T Exchange Korangi II, Landhi Town by Rs 43.7 million, construction of footpath along with Mewashah Graveyard Site Town at the cost of Rs 6.7 million, and 11-A to 11-B New Karachi Road at the cost of Rs 6.7 million.

Moreover, the CDGK has also invited tenders for the construction of storm water drains including Soldier Bazaar from Gurumandir to Sultanabad (main drain), Soldier Bazaar drain from Gurumandir to Sultanabad Segment I (Dhobi Gat and Empress Market branch) and Segment II (Lucky Star Branch and Commissioner Office Branch).

A 15-member group of students from Kennedy Schools of Government, Harvard University, United States of America has visited Jehangir Kothari Parade, Bagh-e-Ibn-e-Qasim Clifton. The city government officials briefed them about the Clifton Beach Development plan and other uplift projects being undertaken in the area. The students were informed of the restoration and renovation of old Jehangir Kothari Parade, Development of Clifton Beach Park and Bagh-e-Ibn-e-Qasim spread on an area of 130-acre of land.

http://www.brecorder.com/index.php?id=522678&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Over Rs 71 million for roads construction *

PESHAWAR (January 28 2007): North West Frontier Province (NWFP) Chief Minister Akram Khan Durrani has approved Rs 71.155 million for the construction of 10 km roads and a suspension bridge in Vally Konish of district Mansehra.

The roads included Chiprha Payan to Chiprha Bala (3 km road), Shahrah-e-Raisham to Ahle Aur Bajna village (1.175 km road), Shahrah-e-Raisham to Dhna Chinar Kot (1 km road), Shahrah-e-Raisham to Korey Achrhian (1.1 km road), Shahrah-e-Raisham to Soyan Nakholi (1.5 km road), Shahrah-e-Raisham to Zubair Shaheed Bhai Bala (1.225 km road) and Qiyyam Galli to Lam village (1 km road).

The scheme has been approved as non-ADP and the chief minister directed the finance department to immediately release fund for the construction and rehabilitation of roads in Vally Konish to facilitate the people and would make easier the road communication network in the area.

http://www.brecorder.com/index.php?id=522707&currPageNo=3&query=&search=&term=&supDate=


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## Neo

Tuesday, January 30, 2007 

*PNSC set to buy 2 oil tankers, 1 bulk carrier worth $150m*

By Sajid Chaudhry

ISLAMABAD: The Pakistan National Shipping Corporation (PNSC) is all set to acquire two Aframax Oil Tankers and one Panamax Bulk Carrier worth $150 million to enhance countryÃ¢â¬â¢s capacity to transport crude oil and raw materials, a government official told Daily Times on Monday.

The purchase of oil tankers and bulk carrier would also necessitate in view of the fact that by the calendar year 2010, all single hull oil tankers will need to be phased out of operations and replaced by double hull oil tankers under the International Maritime Organisation Regulations. 

The acquisition of the oil tankers and bulk carrier by the companies would go a long way in the economic development of the country by providing state of the art tankers bulk carrier for the PNSC subsidiaries.

Three of the PNSCÃ¢â¬â¢s subsidiary companies, namely, Karachi Shipping (Private) Limited, Quetta Shipping (Private) Limited and Lahore Shipping (Private) Limited are acquiring state of the art two Aframax Oil Tankers and one Panamax Bulk Carrier at a cost of approximately $150 million. This acquisition is being financed through foreign currency funding arrangement from ABN AMRO Bank NV, the Netherlands (ABN) to the extent of 90% of the total cost of the above acquisition, the official added.

The said loan between ABN AMRO Bank and the Karachi Shipping (Private) Limited, Quetta Shipping (Private) Limited and Lahore Shipping (Private) Limited has been arranged without any government guarantee.

The PNSC being public sector enterprise having 89.13% shareholding of the government of Pakistan and its 16 subsidiaries including the three referred have experienced tremendous growth in operations since last five years. To meet this and future growth, fleet expansion and replacement plan is necessary. The purchase of oil tankers of necessitated in view of the fact that by the calendar year 2010, all single hull oil tankers will need to be phased out of operations and replaced by double hull oil tankers.

The PNSC on behalf of its subsidiaries is a major transporter of crude oil for the countryÃ¢â¬â¢s needs, and is required to abide by the International Maritime Organization Regulations. Further, to meet the countryÃ¢â¬â¢s bulk imports of raw materials such as coal coke, iron ore and grains, the PNSC requires adding more bulk carriers in its fleet. At present, the PNSC managed company has only one bulk carrier, which is insufficient to meet countryÃ¢â¬â¢s increasing demand. The same is being managed through foreign flagged vessels, which is resulting in out flows of the countryÃ¢â¬â¢s precious foreign exchange reserves. The acquisition of state of the art two Aframax Oil Tankers and one Panamax Bulk Carrier will therefore, assist in the economic development of the country.

http://www.dailytimes.com.pk/default.asp?page=2007\01\30\story_30-1-2007_pg5_1


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## Neo

*Japan to assist in transport sector*

ISLAMABAD - Japan has shown willingness to provide financial and technical assistance to Pakistan for the launching of mega projects of intra-metropolitans and long distance inter-cities tunnel train services to reduce burden on the transport sector, a government official told TheNation.

The private sector companies from Japan, having expertise in tunnel train services, are taking interest in investing in the railway sector, especially of jointly initiating the ventures of intra-cities tunnel train service. They have also indicated to invest in the long-distance tunnel train service among the various major cities. 

The official said the Japanese investors have communicated to government of Pakistan about their interests in the said areas to help both financially and technically in setting up such train services. The proposal in this respect has been under review in the Ministry of Railways and the experts are looking its feasibility and also viability. The decision will be taken shortly after discussing every aspect of these projects.

He maintained the investors&#8217; interest in these railways projects reflects the stability in the construction sector as such projects are directly linked with the availability of construction materials like cement. The huge construction projects of building tunnels required larger stocks of cement and the government is confident to fulfill the needs of the investors. &#8220;If the production of cement, the main component in construction, continued at this level then there would more investors to come in Pakistan,&#8221; the official hoped.

Train service in Pakistan is totally under state control due to its strategic importance and the government has not yet put Pakistan Railways on the privatisation list and no sign in the near future. Pakistan Railways still maintains its significance of larger network and accessibility to various small towns and villages across the country, especially in Sindh and Punjab. 

Carrying goods from various major important trade centres like Karachi and Lahore etc to other parts of the country presently uses railways service. Pakistan Army is also using train service for mobilization and supplying of goods from one place to other. 

http://www.nation.com.pk/daily/jan-2007/30/bnews1.php


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## Neo

January 30, 2007 
*Regional trade role suggested for KPT*

By Shamim-ur-Rahman

KARACHI, Jan 29: International experts maintain that Karachi harbour cannot handle mother ships, therefore, the focus should be on exploiting KarachiÃ¢â¬â¢s role as the hub of a regional trans-shipment trade. They are also sceptical about the environmental impact of the proposed deep-draught container handling berths at Keamari Groyne.

These conclusions were drawn in the final report on the feasibility of the project by the Techno-Consult International in association with Posford Haskoning Ltd. and HR Wallingford prepared for the Karachi Port Trust.

The KPT is keen to expand its services for a wider global market and has developed a comprehensive plan for the development of infrastructure and other incentives to attract transhipment trade to the port. A part of this plan is construction of deep draught container handling berths at Keamari Groyne.

The environmental assessment made by these experts showed that Ã¢â¬Åthe project would not directly harm the environment after completion.Ã¢â¬Â It was recommended to dredge outside the migration and nesting season of the protected Green Turtle. The dredging is, however, not possible during the monsoon season.

The environmentalists, however, do not agree with the consultantsÃ¢â¬â¢ observation and maintain that it would further pollute the harbour area and, therefore, endanger marine life and those living along the coast.

They suggested monitoring the impacts of the dredging and the changes in the current profile in the area in order to be able to take mitigation measures whenever required after completion of the project.

A trade forecast model was developed to determine the expected future container trade for the new terminal. It concluded the potential trade volume for the Central Asian States was meagre compared to PakistanÃ¢â¬â¢s domestic trade. This is because Pakistan has a much larger economy than the CAS together.

For a larger share of this small market, the federal government should make major investments in hinterland connections from the port, the experts proposed.

In Pakistan the containerisation process is still ongoing. Every year more general cargo is transported in containers. The growth of container trade showed it was in line with expectations. Based on the World BankÃ¢â¬â¢s GDP forecast and the historic average of the GDP as development scenarios, a forecast of the container throughput on national level were developed.

The preconditions to transhipment trade were identified, which included unrestricted access to the port; fast cargo documentation and customs procedures supported by EDI, allowing start of discharge within one hour of berthing and allowing sailing within one hour of completion of loading operations; and available space to increase capacity.

According to a regional market analysis it would be very difficult for Karachi to attract mother ships from the eastmain trading route. The port should rather focus on the attraction of transhipment trade from the dedicated Middle East routes, the experts suggested in their report. Ships on these routes often bring a lot of cargo that is destined for Pakistan and India.

Analysis of the present container handling capacity in Karachi and the traffic forecast results showed that there was a need to develop a new container terminal in Karachi between 2008 and 2010, depending on the high or the low traffic forecast scenario.

They have recommended that a Simulation Navigational Study be carried out by the KPT under the next stage of detailed Quay wall and marine design works. This study is required by the operations division of KPT.To connect the terminal to the existing road infrastructure, three alternative road connections were designed. The preferred alternative follows largely the existing infrastructure, but has a fly over to pass the most congested parts in the Port access roads.

http://www.dawn.com/2007/01/30/ebr1.htm


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## Neo

*Country losing $2.5 billion annually to inefficient road freight industry *

KARACHI (February 01 2007): The inefficiencies of country's road freight industry are costing roughly Rs 150 billion, or $2.5 billion, annually to the national exchequer. The present industry structure cannot integrate into international trucking nor can support the country's projected economic growth and, unfortunately, the trade would stay reliant on such industrial infrastructure due to the absence of alternative options.

According to documents available with Business Recorder, there are three major areas identified for such losses of inefficient road freight sector, which are Rs 60 to 90 billion per year spent on extra fuel cost and subsidies on the use of diesel, Rs 30 to 35 billion in additional road user costs and about Rs 25 billion contributed to the infrastructure deficit. A highway constructed for 10-year efficient life for freight traffic has been damaged only in 18 months period.

Low quality of service is impeding the country's trade competitiveness for imports and exports. Freight sector demands are unbalanced, and majority of consumers is not aware of 'externalities' unwilling to pay the right price.

The industry is responding by over-supplying of illegal and unregulated services. Competing in an 'illegal market' is keeping the freight industry from responding appropriately.

Experts believe that as far as structure of road freight industry is concerned, the domestic demand is much higher than the international demand and 90 percent or more of all land freight in the country is 'trucked' and this would double in the next ten years.

They say that segmentalisation of demand is very weak and poor; reliance on 'inter-modalism' as railways is not delivering the adequate service levels for speedy freight movement.

Almost all trade is conducted through two seaports in the south, and one out of every three truck trips is for agricultural sector use. The geographical distribution of demand is uneven due to major share of Punjab in both internal and external trade. The consumer tariffs, which have consistently fallen in real terms over the last 20 years, are among the lowest in the world.

Majority of the consumers, further negotiating down rates with little or no expectation for improvement, is stuck in a rut. The share of manufacturers and general merchandise is rising rapidly and these (and other) high-value exporters and customers are willing to pay higher.

The current available capacity is higher than demand, but this availability is illegal. The trucking equipment is under-developed and outmoded and the same holds true for all not significant road infrastructure, freight stations, terminals, trailers, sales, service, support and driver training.

Another aspect of cargo safety is under-developed cargo insurance practices and absence of mechanisms for access to finance at the right cost. The country's trucking industry is not practically deregulated. In reality, it is poorly regulated as per the market trends for owning the vehicles.

The experts say that the freight sector is superficial and a very fragmented industry, but few informal financiers consolidate it at the back, though. The absence of appropriate standards, registration and fitness certification system has distorted supply side incentives, and ill-informed industry and trade associations do not have the professional service users' control rates.

http://www.brecorder.com/index.php?id=524009&currPageNo=1&query=&search=&term=&supDate=


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## Neo

*India repairing Munabao rail track *

ISLAMABAD (February 01 2007): The Indian railway is repairing flood-damaged tracks for resumption of Thar Express train to Pakistan, Indian Zee channel reported on Wednesday. The report said the train service between Munabao in Indian Rajasthan and Khokhrapar in Sindh province is likely to resume operations in March.

It quoted railway official AK Khana as saying that the track restoration work would be completed in next 20 days. The railway is currently repairing only the main line so that the Thar Express can resume operations as soon as possible, the official said. The train service was suspended on August 25, last year following unprecedented floods in Rajasthan.

http://www.brecorder.com/index.php?id=524001&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*First test flight lands at SIAL *

ISLAMABAD (February 02 2007): The first test flight has landed successfully at the Sialkot International Airport Limited (SIAL). According to PTV, the Sialkot International Airport Limited (SIAL), a result of public private partnership is nearing completion and the formal inauguration of the joint public-private venture would be held soon.

The SIAL is situated 14 km west of Sialkot. Constructed on a 1,050 acre of area. The project was expected to cost Rs 1,500m along with Rs 230m (provided by the Government of Pakistan) to obtain the 1,050 acre site for the construction. The expenditure however, has already exceeded to over Rs 2,320 million.

It will handle around 143,000 passengers a year. The site offers excellent transport infrastructure with existing road links to Wazirabad, Gujrat, Gujranwala, Narowal, Sialkot City, Sialkot Export Processing Zone and Sialkot Dry Port.

The airport would cater the needs of the industrial triangle of Sialkot, Gujranwala, Gujrat and Mirpur Azad Kashmir. The airport will bring a greater prosperity to the area and contribute to socio-economic development in the region.

An efficient cargo hub in the area has long been required as the it is a major export area in Pakistan for surgical instruments, leather goods, musical instruments, textiles and sports equipment. Construction of the airport was first approved in February 2001 by the President Pervez Musharraf.

http://www.brecorder.com/index.php?id=524392&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Business class International departure lounge *opens 

KARACHI (February 02 2007): PIA Chairman & CEO, Tariq Kirmani inaugurated the newly renovated Business Class International Departure lounge in a simple ceremony held at Jinnah Terminal of Karachi Airport.

A press release issued here on Thursday said the ceremony was a final outcome of what Pakistan International Airlines had lately been emphasising in terms of its 3C's initiative that are "Convenience, Comfort and Competitiveness.

PIA as corporate entity has worked on redesigning and refurbishment of its Business Class international departure lounge at Jinnah International Airport Karachi to keep the airline at pace with international competitive environment.

The new lounge has been designed using the natural wood, fabrics, dyes, colours and embroidery to highlight the unique Pakistani craftsmanship and Pakistani raw material. The cuisine offered in the lounge is a mix of Pakistani and Continental food giving a choice that suits its business class passengers' tastes.

All this is in line with the PIA brand "home star", a concept where Pakistani culture is emphasised in terms of design, tradition & hospitality, the statement added.

PIA is a brand that represents Pakistan at home and abroad and the airline is using all the traditional ingredients in its branding not only to enhance its service but also to represent a modern Pakistan.

The newly renovated Business Class Lounge now bearing a delightful ambience was appreciated by a group of Business Class passengers who were present at the moment. The ceremony was also attended by Deputy Managing Director, Umar Ghafoor, Senior Vice Presidents and other officials of the airline.

http://www.brecorder.com/index.php?id=524445&currPageNo=2&query=&search=&term=&supDate=


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## Neo

Friday February 2, 2007

*Emirates To Launch Pakistan-Brazil Service Via Dubai*

KARACHI, Feb 2 Asia Pulse - Emirates could play a key role in enhancing trade and commerce between Pakistan and Brazil following its South American debut on October 1, 2007 with six-a-week, non-stop services to Sao Paulo, Brazil, said a press release issued here on Wednesday.

The press release quoted President of Pakistan having said during his 2004 visit to Sao Paulo that there is tremendous potential for commercial and joint venture collaboration between Pakistan and Brazil. The 14-hour 40-minute flight will be the first-ever non-stop service between South America and the Middle East, providing Pakistani passengers a new direct connection to South America via Dubai.

Pakistan exported goods worth $9.029 million to Brazil in 2004-05, and its imports for the same year amounted to US $145.7 million, bearing testimony of the two countries' long-standing trade relations.

http://au.news.yahoo.com/070202/3/12a6j.html


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## Neo

Just checked the flight data, KHI-DXB is operated by Airbus A330-300 and DXB-SAO by Boeing B777-200LR, flight endurance 20.15hrs!!

It will the first link from Pakistan to Latin America.

Karachi-Sao Paolo via Dubai:

01 KHI DXB 21-0545 0645 *EK 605* EQP 332 NONSTOP 2015

02 DXB GRU 21-0930 1900 *EK 261* EQP 77L NONSTOP 2015


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## Neo

*Rs seven billion funds approved for infrastructure restoration *

RAWALPINDI (February 07 2007): District Nazim Rawalpindi Raja Javaid Ikhlas has said that Punjab Chief Minister Chaudhry Pervez Elahi has approved funds of Rs 7 billion under 'Big City Package' for the restoration of infrastructure and speeding up the social development.

Talking to the newsmen an inaugural ceremony of tube-well opening project he said that approved funds amount would be utilised for the construction of fly-over from Marreer Chowke to Chandni Chowke, replacement old faulty sewerage lines with new once, reconstruction of seven roads, provision of clean drinking water to the local residents.

http://www.brecorder.com/index.php?id=525968&currPageNo=1&query=&search=&term=&supDate=


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## Neo

*'Open sky policy to continue' *

KARACHI (February 07 2007): Minister for Defence Rao Sikandar Iqbal has said that the "open sky" policy will continue, and ruled out the possibility of privatisation of Pakistan International Airline (PIA) in near future.

He told newsmen on Tuesday, after a press briefing held by PIA Chairman Tariq Kirmani, that he is not satisfied with the PIA's overall performance and hoped that the national carrier will render better performance soon.

"I have been informed by the PIA chairman that steps have been taken by the new management for the overall improvement of the airline, I think results will soon be visible," he added. He said that the new aviation policy is under way and will be announced within next two months.

Earlier Tariq Kirmani said that last year PIA suffered Rs 9.188 billion loss mainly due to fuel price hike in the international market. He said that during last two years fuel prices in the international market touched the highest level of $78 per barrel, as a result, PIA's fuel cost increased from $18 billion in 2004 to Rs 34 billion in 2006.

However, he said that PIA's performance continued to grow during 2006, as a result, its revenue grew by 10 percent to reach Rs 70 billion from Rs 64 billion during 2005.

He said that PIA carried 5.7 million domestic and international passengers during 2006, achieving a growth of 5.1 percent with overall 73 percent seat factor, while total market has grown by only 3.6 percent with 72 percent overall seat utilisation.

He said PIA's domestic market has declined by 2.7 percent and airline has carried 2.3 million domestic passengers during 2006, while PIA carried 3.4 million international passengers, growing by 5.5 percent over last year, with a market share of 48 percent.

He said that PIA's operational and financial restructuring plan, including creation of a Fuel Equalisation Fund (FEF) with a view to protecting the airline from future fuel prices hike, have been sent to Ministry of Finance for approval.

The plan proposes issuance of Term Finance Certificates (TFCs), equity injection by the government and sale of non-core assets besides some internal steps for the improvement in the airline, he added.

He said that after the approval the restructuring plan will start yielding results after it's implementation in 2007-08, and PIA will induct new planes in its fleet, thus reducing the average age from 21 to 10 years.

http://www.brecorder.com/index.php?id=525894&currPageNo=3&query=&search=&term=&supDate=


----------



## Neo

*Pakistan to introduce mass transit system in eight major cities* 

By ANI 
Wednesday February 7, 2007.

Islamabad, Feb.7 (ANI): Pakistan on Wednesday announced plans to launch a mass transit train system in eight major cities.

Talking to reporters here after making the announcement, Railways Minister Sheikh Rashid Ahmad said a decision to this effect was taken with the aim of reducing vehicular traffic pressure on existing roads of the cities, besides overcoming pollution problems.

The mass transit projects are planned to be launched in Rawalpindi-Islamabad, Lahore, Karachi, Peshawar, Quetta, Multan, Hyderabad, and Faisalabad. 

http://in.news.yahoo.com/070207/139/6bvub.html


----------



## Neo

Thursday February 8, 2007
*Pakistan Int'l Airlines Posts US$150 MLN Loss For 2006*

KARACHI, Feb 8 Asia Pulse - Pakistan International Airways (PIA) suffered a Rs 9.188 billion (US$150.6 million) loss in 2006, mainly due to a fuel price hike in the international market, chairman Tariq Kirmani told a press briefing Wednesday.

He said that during the last two years fuel prices in the international market touched the highest level of $78 per barrel. As a result, PIA's fuel cost increased from $18 billion in 2004 to Rs 34 billion in 2006. 

However, he said that PIA's performance continued to grow during 2006, its revenue grew by 10 per cent to reach Rs 70 billion from Rs 64 billion during 2005. The airline carried 5.7 million domestic and international passengers during 2006, achieving a growth of 5.1 per cent with overall 73 per cent seat factor, while total market grew by only 3.6 per cent with 72 per cent overall seat utilisation.

Mr Kirmani said PIA's domestic market has declined by 2.7 per cent and airline has carried 2.3 million domestic passengers during 2006, while PIA carried 3.4 million international passengers, growing by 5.5 per cent over last year, with a market share of 48 per cent.

He said that PIA's operational and financial restructuring plan, including creation of a Fuel Equalisation Fund (FEF) with a view to protecting the airline from future fuel prices hike, have been sent to Ministry of Finance for approval. The plan proposes issuance of Term Finance Certificates (TFCs), equity injection by the government and sale of non-core assets besides some internal steps for the improvement in the airline, he added.

He said that after the approval the restructuring plan will start yielding results after its implementation in 2007-08, and PIA will induct new planes into its fleet, reducing the average age from 21 to 10 years.

Speaking after the press briefing, Minister for Defence Rao Sikandar Iqbal said that the present "open sky" policy of the Government would continue, and ruled out the possibility of privatisation of Pakistan International Airline (PIA) in the near future. He said that the new aviation policy was under way and would be announced within next two months.

http://au.news.yahoo.com/070208/3/12cj9.html


----------



## Janbaz

*President Musharraf inaugurates signal-free corridor in Karachi*

KARACHI: President Pervez Musharraf here Friday formally inaugurated Rs. 3 billion signal-free corridor from SITE to Airport to reduce travelling time by one hour. 

Sindh Governor Dr Ishratul Ibad Khan, Chief Minister Dr Arbab Ghulam Rahim, City Nazim Syed Mustafa Kamal and Naib Nazim Nasreen Jalil were also present on the occasion. 

Talking to journalists, President Musharraf said that this corridor was a mega project for the people of Karachi with enormous benefits. It will reduce travelling time and provide hassle free commuting. 

"This is a mega project. Cost does not matter. This is a project to facilitate people who live in Karachi, providing hurdle free and hassle free travel from SITE, Nazimabad and Liaquatabad to Drigh Road in just eight to ten minutes,", he added. 

"I have lived here and I know that people used to spend 20 minutes at each signal. They had to bear all the hassle of travelling on these routes. This corridor will reduce travel time by at least one hour. This will save petrol as well as save the driver from anguish," he observed. 

President Musharraf appreciated the City Government for completing this long corridor with six flyovers and underpasses in just 8 months and 20 days. 

"Earlier similar projects had taken five years. I congratulate them on accomplishing this task in such a record time," the President said. 

"This is very efficient and this is also sign of the financial and economic progress in the country. I also want to congratulate Karachiites who will use this corridor," he said. 

Earlier, City Nazim Syed Mustafa Kamal said that the project was implemented in a record short span of time. 

"We believe in serving people and this corridor passes from the areas where 60 to 70 per cent of Karachi's population lives," he noted. 

He said this project is sufficient for next 25 to 50 years. Every underpass has water ducts at the beginning and in the middle to syphon off water through drains to Orangi Nullah and Gujjar Nullah. In case of heavy rains and accumulation of water, the automatic motor will pump out water fast through drains, he added. 

Mustafa Kamal specially thanked the people of Karachi specially people living along the corridor for bearing with the inconveniences caused to them due to digging and traffic jams. 

"I pay tributes to them for their exemplary support during this period. They have seen that their leadership has brought results," he noted. 

He said that election is not the target and this is the reason that Haq Parast government has completed these flyovers and underpasses in record time.

The News.
http://thenews.jang.com.pk/updates.asp#17550


----------



## Neo

*Karachi-Hyderabad motorway project *

KARACHI (February 09 2007): The spokesman of Federal Communication Ministry on Thursday clarified about construction of six-way motorway on the Karachi-Hyderabad Highway as saying the National High Authority (NHA) had reached a formal agreement with a construction company on December 27, 2006 and the Executive Board of NHA had also approved the project.

In a statement, the spokesman said that the National Highway Council had been apprised about the agreement on January 16, 2007. The NHA has been directed to resubmit all financial details of the project at the next meeting of the Council to be held by the end of March 2007, he said.

http://www.brecorder.com/index.php?id=526689&currPageNo=3&query=&search=&term=&supDate=


----------



## Neo

Friday, February 09, 2007 

*Pakistan to get 60 quality hotels, says Musharraf*

KARACHI: President Gen Pervez Musharraf said on Wednesday that five 5-star hotels would be established in Karachi, Lahore and Islamabad in the coming years, and the Railways was launching 55 three and four-star hotels all over Pakistan. 

Musharraf was addressing a gathering at the groundbreaking ceremony of the Rs 11 billion Karachi Financial Tower building, being built by Enshaa-NLC Ã¢â¬â a joint venture of UAE Enshaa Holding Ltd and National Logistic Cell Ã¢â¬â at the GovernorÃ¢â¬â¢s House. 

He said that Pakistan offered the best investment environment for high profits in the region, and invited foreign investors to come to Pakistan. 

Ã¢â¬ÅInvestment (in Pakistan) has grown by 1,200 percent since 1999, and it will cross $4 billion this year,Ã¢â¬Â he said, adding that investors would continue coming to Pakistan because of stability in government policies. 

Ã¢â¬ÅWe have created an investment-friendly environment in Pakistan. We have changed our rules and regulations to suit investors coming to Pakistan, so that they feel Pakistan is a venue for investment,Ã¢â¬Â he added. 

The president said investors could earn maximum profits because of the economic turnaround in Pakistan. He said Pakistan was now categorised as a Ã¢â¬Ëmiddle-income countryÃ¢â¬â¢. He said that Pakistan, with a market of 160 million people, was the hub of South and Central Asia, therefore it should not be seen as a standalone country. Musharraf said the government was trying to project the true image of Pakistan. He expressed satisfaction with PakistanÃ¢â¬â¢s maturing policies, which were helping attract investors and sustain the economic growth. 

The president said the government was paying special attention to construction work because it generated economic activity and created jobs for skilled and unskilled labourers. Sindh Governor Dr Ishratul Ebad Khan, Chief Minister Dr Arbab Ghulam Rahim and Federal Ministers Sheikh Rashid Ahmed and Babar Khan Ghauri attended the ceremony. 

http://www.dailytimes.com.pk/default.asp?page=2007\02\09\story_9-2-2007_pg7_27


----------



## A.Rahman

* Karachi: Financial Towers*

Basic Information
The two towers are identical and rise in terms of numbers of floors and height. The building comprises 3 levels of basements, 2 levels of Retail, 5 levels of podium parking and 33 levels of above the podium level. Gross Floor Area of KFT is more than 1.4 million sq ft. The net saleable area of each floor shall be in the range of 16,500 to 17,300 sq ft.

Where the sky bridge pierces through the twin towers, there will be a 6 story void (24 to 29 level) created to house the recreational facilities like swimming pool and the garden terrace. The sky bridge shall be occupied as the commercial club.

The podium and the basement will contain the retail and parking provisions. Over 1,800 car parks will have to be provided for the development.

&#8226; Karachi Building & Town Planning Regulations 2002
&#8226; International Building Code 2003
&#8226; Building Energy Codes of Pakistan
&#8226; Uniform Mechanical Codes
&#8226; Codes and Standards of National Fire Protection Association
&#8226; CIBSE Guide Lines
&#8226; British Standards/EN Standards for each system
&#8226; Illumination Engineers Society Codes
&#8226; I.E.C Standards

The building shall be equipped with the following latest and state of the art services and systems:

&#8226; Air-Conditioning and Mechanical Ventilation
&#8226; Electrical services including power, lighting, telephone, data etc
&#8226; Fire protection services including fire alarm system
&#8226; Plumbing and Drainage services
&#8226; Smoke Management system
&#8226; Security system
&#8226; Vertical Transportation services


----------



## Owais

*Railways signs accord for Rawalpindi-Lahore bullet train feasibility *

ISLAMABAD: Pakistan Railways has signed an agreement with a consortium of Spanish and Austrian companies for preparation of feasibility report for the first bullet train of the country that would run between Rawalpindi and Lahore. 

Pakistan Railways general manager operations and an official of the Austro-Spanish consortium signed the agreement here on Saturday.

Federal Railways Minister Sheikh Rashid Ahmad on the occasion said that the Spanish -Austrian companies&#8217; consortium would complete the project by 2009.

The bullet train would travel with the speed of 250-300 kilometer per hour. The train would reach Pindi in one hour and 10 minutes from Lahore.

Replying to a question regarding Rohri train mishap, Sheikh Rashid said that inquiry report of the incident will be released by February 12.


http://geo.tv/geonews/details.asp?id=1951&param=1


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## Neo

A.Rahman said:


> * Karachi: Financial Towers*



Thanks Rahman, I was looking for the image.
Looks nice, man Karachi is developping fast!


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## Janbaz

Any news about the mega Port Tower Complex? I hear it is approved and then someone says its just a vision!


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## Neo

*Lahore-Rawalpindi bullet train: Railways signs feasibility study deal *

ISLAMABAD (February 11 2007): Pakistan Railways on Saturday signed an agreement with an Austrian and Spanish-based consortium to carry out feasibility study for high-speed train between Rawalpindi and Lahore. The study for laying high- speed track, to be completed in nine months, was signed at the Ministry of Railways here.

Minister for Railways Sheikh Rashid Ahmed and Secretary and Chairman Railways Shakil Durrani were present. General Manager Railways Assad Saeed signed the agreement. Managing Director Mr Santiago represented the consortium, M R Consult.

Officials from the embassies of Austria and Spain also were present there to witness the signing ceremony. Pakistan Railways has planned to start high-speed train service between Rawalpindi and Lahore before 2010. The train's speed is estimated at 250 to 300 kilometres per hour.

M R Consult is the firm which has won the contract for quoting the lowest rates of Rs23.97 million among eight bidding companies from USA, China, France, Sweden, Austria and Spain.

http://www.brecorder.com/index.php?i... rm=&supDate=


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## Neo

*Clifton-Manora bridge: President to perform ground breaking soon *

KARACHI (February 11 2007): President General Pervez Musharraf will soon perform the ground breaking of bridge that would be constructed from Clifton to Manora. This was stated by Federal Minister for Ports and Shipping, Senator Babar Khan Ghauri.

He thanked President Musharraf for appreciating the work of Karachi Port Trust and the work he is doing for Karachi as Minister for Ports and Shipping.

The Minister said the President would also perform the ground breaking of the Diamond Island City. He stated that a number of mega projects are coming up for the beautification of this metropolis, betterment of the province and for strengthening the country.

http://www.brecorder.com/index.php?id=527375&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Chinese firm keen on investing in transport sector *

KARACHI (February 11 2007): A five-member Chinese delegation, led by Madam Sheng on Saturday called on Sindh Minister for Labour, Transport, Industries and Commerce Muhammad Adil Siddiqui at his office and offered investment of 83.33 million dollars in transport sector in Karachi and interior of the province.

The offer includes wide-body comfortable and environment-friendly CNG buses, besides establishing CNG fuel stations and fleet operators in the province.

Provincial Transport Secretary Nasar Hayat, representative of Provincial Committee on Investment Muslim Abbasi, Younis Haji Usman, Nazir Haji Usman were also present.

Expressing satisfaction over the investment atmosphere in Sindh, Director, Hier Bus Company of China Tong and Madam Sheng, President of Suz Zou Meisheng said they had reviewed inter-city and intra-city routes in the province, where people could be facilitated with safe and conformable transport services through running pollution free CNG buses.

They said their company was keen to work on this project in co-ordination with homeland transport under public private partnership, which would establish terminals for inter-city and intra-city fleets and besides CNG stations.

The minister said the province was safer and attractive place for foreigners for their investment and added there were vast investment opportunities in other sectors also.

He said government through its policies has maintained law and order while foreign investors are being provided facilities for investment on 100 percent equity basis.

The government is working on other projects to improve infrastructure and also wanted to improve transport infrastructure, for which it is necessary to introduce larger number of CNG buses under urban transport scheme, he added.

The minister assured the delegation of all-out assistance on behalf of Sindh government.

http://www.brecorder.com/index.php?id=527432&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Open skies for Karachi, Lahore proposed *

By Saad Hasan

KARACHI: Aviation authorities have proposed to open skies of Karachi and Lahore for intending foreign airlines in a bid to increase air traffic and passenger travel, a Civil Aviation Authority (CAA) official told The News on Saturday.

This proposal incorporated into the draft of upcoming aviation policy, which was yet to be finalised, might widen the operational scope for international carriers restricted up until now to Gulf-based airlines, he added.

Ã¢â¬ÅThe arrangement is based on point-to-point basis,Ã¢â¬Â said the official, who wished to remain anonymous, explaining this fixed a destination up to which passengers could be carried barring flights from going beyond that point.

However, air routes to Islamabad and Peshawar have not been liberalised because of infrastructure constraints and the open skies policy draft has not excited the existing Gulf-based operators either.

Ã¢â¬ÅWe do not see any benefit in this Ã¢â¬Ëcontrolled policyÃ¢â¬â¢ of third and fourth freedom rights,Ã¢â¬Â says an official of one of the carriers. Ã¢â¬ÅThis is discrimination against us, people from the (Gulf) region are investing so much in the country.Ã¢â¬Â

He said the policy in its present shape would only prove useful for small carriers from regional countries around Pakistan. Ã¢â¬ÅAlready there is overcapacity at Dubai. So if fourth and fifth freedom is allowed then it is good,Ã¢â¬Â he added.

Fourth and fifth freedom rights let an airline bring passengers from another country to ones own and then onward to a third country while third and fourth freedom right permits air traffic transit between two countries only.

The CAAÃ¢â¬â¢s move toward limited liberalisation of the aviation sector comes at a time when a domestic airline has announced the start of flights between Islamabad and Manchester, UK, raising concerns about its impact on the national flag carrier.

Pakistan has seen substantial increase in passenger travelling in the last couple of years and experts believe that economic growth will continue to boost the number of passengers travelling to and from the country.

According to CAA statistics, international and domestic passenger traffic at all airports increased to 13.5 million in 2004-05 from 11.8 million recorded a year earlier.

This increase in passenger travelling has compelled the CAA to plan a major expansion of infrastructure including renovation of airports and construction of some new ones.

Moreover, it is being felt that regional countries are experiencing exceptional growth in the aviation sector and Pakistan must also strive to grab its share.

http://www.thenews.com.pk/daily_detail.asp?id=42315


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## Neo

*Work on Sialkot-Lahore motorway under process* 

SIALKOT (February 13 2007): Necessary arrangements are being finalised for undertaking development work on mega project of Sialkot-Lahore motorway, costing more than Rs 20 billion, official sources told Business Recorder here on Monday.

They said that new industrial estates would be developed on Sambrial, Gujranwala and Muridke interchanges of Sialkot-Lahore motorway and process of selection of land for the proposed estates was underway.

Besides, an ultra modern Sialkot Engineering University was being developed on 500 acres of land on Sambrial-Daska section near Sialkot-Lahore motorway, they added. The Punjab government had released Rs 90 million for the purchase of land while the Sialkot Chamber of Commerce and Industry (SCCI) had already contributed 130,000 Euro as matching grant to Royal Institute of Technology.

The role of Sweden government would be instrumental in establishment of the proposed university and collaboration in extending the technical know-how. The Sweden government would also provide necessary assistance in formulation of faculties of the proposed engineering university of Sialkot.

The proposed university would not only cater to the needs of industrial sector of Sialkot but also provide opportunities of higher education at local level. The university would provide broad base opportunities of industrial research and development to local industries like surgical instruments, sports goods and leather industry for resolving their problems pertaining to innovation of products.

At present the local business community engaged with surgical instruments manufacturing, sports goods and leather industries were facing hardships due to the lack of research and development facilities at local level.

The surgical industry and sports goods industries of Sialkot had great potential and both the sectors could earn 7 billion dollars and 10 billion dollars respectively.

The completion of the motorway would reduce the distance between Sialkot and Lahore and it would further accelerate the pace of trade and commerce activities and generate employment opportunities, the sources added.
http://brecorder.com/index.php?id=528164&currPageNo=3&query=&search=&term=&supDate=


----------



## Neo

*Navy ready to vacate Manora Island *

KPT to build five-star resort

By Masood Anwar

KARACHI: Pakistan Navy has given green signal to Karachi Port Trust (KPT) for the vacation of Manora Island and handing over the possession very soon.

The KPT the body for the development of port and providing infrastructure in the port area has chalked out a plan to construct a five-star resort on the Island.

The plan was duly approved by Prime Minister Shaukat Aziz in October 2005. However, implementation of the scheme was delayed due to the installation of the Pakistan Navy on the Island. Due to the presence of Pakistan Navy on the Island, Manora is declared as high security sensitive area.

Now the Pakistan Navy has given its consent to vacate the area, Brig Syed Jamshed Zaidi, General Manager for Planning in KPT revealed this while talking to The News.

The resort would be linked with Clifton, Sandspit and Hawksbay via a bridge. Prime Minister Shaukat Aziz has given approval for the construction of a five-star resort at Manora in October 2005. Manora is a small island having area of around 2.5 square kilometers located just south of the Port of Karachi. The island is connected to the mainland by a 12 kilometre long causeway along with the Sandspit beach. Manora and neighbouring islands form a protective barrier between Karachi harbour to the north and the Arabian Sea to the south.

The island of Manora has served for more than 50 years as the main base of the Pakistan Navy, with berths for naval vessels located along the eastern edge of the island. The island has been governed as a military cantonment.

Before the opening of the new Jinnah Naval Base at Ormara, 250 kilometers away, Manora was the main base of Pakistan Navy.

Now, Pakistan Navy has agreed to shift its entire installation from Manora to Cape Montz, Zaidi said. They (Pakistan Navy) have given their consent recently, he said and added that soon after getting the possession, the KPT will start the initial work on the project.

According to an encyclopedia, parts of city of Karachi and the island of Manora at port of Karachi constituted the city of Debal. 

The island was the site of a small fort constructed in the eighteenth century when the port of Karachi traded with Oman and Bahrain. The fort was stormed by the British in 1839 because of the strategic location of Karachi. Although the fort is now buried beneath the naval base, the lighthouse is a visible reminder of the British presence having been built in 1889 to assist vessels approaching Karachi harbour. It is the tallest lighthouse (28 m or 91 feet high) in Pakistan.

Manora is also a popular picnic spot because of the long sandy beaches along the southern edge of the island, which merge into the beaches of the Sandspit and then extend several kilometers to the beaches at Hawksbay. 

The island lies approximately 15-20 minutes by boat ride from mainland Karachi but there are no good hotels available for an overnight stay. For this and other reasons, the Government of Pakistan planned to develop the island into a tourist destination, KPT general manager said.

The island has been envisioned as an exotic location with natural landscapes such as the beaches and the mangrove forests, and secluded beauty with an upgrade for the lighthouse to add to the quaint feel of the island. 

Ministry for Ports and Shipping has also signed Memorandum of Understanding in 2006 with Dubai World Port and Emaar Properties for the redevelopment of Manora Island.

The KPT has estimated the cost for the development and construction of resort to the tune of Rs5 billion.

Beside the resorts, the KPT will also build a cruise terminal at the jetty of the Manora Island to facilitate the tourists and encourage the sea-tourism, he said.

Now, KPT is ready to kick-off the project with the first step of the appointment of the consultant, he added. Estimated period for the completion of the project is around 4 years.

Beside the 400 acres land occupied by the Pakistan Navy, the KPT has owned around 200 acres land in the island. And this 600 acre land is enough for the erection of a new tourist hub in the island, Zaidi said. The KPT will not touch the old residents of the island who are enjoying ownership rights there, he clarified while replying a question.

http://www.thenews.com.pk/daily_detail.asp?id=42635


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## Neo

Wednesday, February 14, 2007 

*Transport sector may get industry status soon*

* Transporters could qualify for soft loans and tariff incentives

By Fida Hussain

ISLAMABAD: A plan for declaring the informal transport sector an industry is being finalised, and the proposed plan calls for setting up small as well as large companies, which would qualify for soft loans from banks and tariff incentives from the tax authorities, an official said on Tuesday.

The faulty transport services and infrastructure inefficiencies were costing annually Rs 150 billion to the national exchequer. This also results in low quality of service impeding Pakistan trade competitiveness. The transporters have been asked to establish small and large companies to convert their businesses into formal industry, which would enable them to avail bank financing and tax incentives.

They have been assured that once they are converted into formal industrial sector, the government would ask banks to offer soft loans with little mark up rates, said the official. The government may also come up with a scheme to buy all trucks operating to replace them with the modern ones for meeting the international standards in view of National Trade Corridor Programme, said the official on sidelines of a workshop organized by the Engineering Development Board (EDB) here on Tuesday.

The workshop discussed ways and means to modernizing the trucking sector, which was attended by all the stakeholders including truck manufacturers, consumers, individual transporters, truck and bus body-makers and others. The workshop was addressed by Industries and Production Minister Jehangir Khan Tareen, Communication Minister Shamim Haider and Planning Commission Deputy Chairman Engineer Dr Akram Sheikh. The EDB CEO Imtiaz Rasgrar said that the government sees a huge potential of the sector with the operation of Gawadar deep seaport, which would, open new avenues for transport business. The policy for modernisation of trucking sector, he hoped would be finalized in a month time. He said that around 5 percent of trucking is in accordance with modern lines. About 25 percent of it would be modernised under the National Trade Corridor (NTC) Programme. The modernisation of the trucking sector would reduce 15 to 20 percent fuel consumption and road maintenance by $1 billion, speakers said. Under the NTC, the government is addressing issues confronting the countryÃ¢â¬â¢s road freight sector, which carries almost 95 per cent of the countryÃ¢â¬â¢s overland freight.

The strategy has been targeted to increase the share of prime movers to 10 percent from 5 percent by June 2010. This overland freight traffic, domestic and international, is responsible for almost 96% of the total tonnes per km and dominates the market owing to weak and unreliable railways.

Almost 70 percent of the trucking fleet comprise 2 axle trucks while the estimated figure show that the road freight traffic will grow by 6 percent. The strategy also supports vehicle disposal in unserviceable condition and legal regime and enactment of new laws to conform to international conventions and practices with a view to provide legal and formal cover towards protecting the national and international business interests, said a document of the EDB.

http://www.dailytimes.com.pk/default.asp?page=2007\02\14\story_14-2-2007_pg5_4


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## Neo

Wednesday, February 14, 2007 

*PIA receives 7th 777-300ER*

KARACHI: Pakistan International Airlines received delivery of the seventh 777-300ER (extended range) from the Boeing company.

Ã¢â¬ÅThe airline received the seventh 777-300ER series plane on February 11,Ã¢â¬Â a PIA official confirmed. Ã¢â¬ÅThe last plane of this contract would be received in the month of March this year.Ã¢â¬Â The airplane departed from Paine Field on the evening of Feb 8 for KarachiÃ¢â¬â¢s Quaid-e-Azam International Airport PIA was one of the first airlines in the world to order all of the latest versions of the 777 and it was the launch customer for BoeingÃ¢â¬â¢s 777-200LR.

http://www.dailytimes.com.pk/default.asp?page=2007\02\14\story_14-2-2007_pg5_7


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## Neo

Wednesday, February 14, 2007 

*Airblue acquires another Airbus*

KARACHI: Airblue has acquired another Airbus A321 Aircraft on dry lease, which will be inducted in its fleet this week.

The airline said in a statement here on Tuesday: Ã¢â¬ÅThis would increase the fleet size of Airblue to six dry-leased aircraft and would more than double the capacity of the airline since its inception.Ã¢â¬Â 

http://www.dailytimes.com.pk/default.asp?page=2007\02\14\story_14-2-2007_pg5_8


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## Neo

*Pakistan, India agree to resume Thar Express services* 
Wednesday February 14, 2007 

ISLAMABAD: Pakistan and India have agreed to resume the discontinued Thar express services from 17th of this month. 
This was stated by the Federal minister for Railways Sheikh Rashid Ahmad During his meeting with Indian High Commissioner to Pakistan, Satya Barata Pal. 

During his talks the minister aid that an amount of Rs. 500 million would be spent for providing all the suitable amenities to passengers at the Wagah Zero point and Khokara par Monabao junctions. 

The minister said that the previous travel link from Monabao junction had to be suspended due to damages occurred to a portion of railway track from flooding in previous August, which would be resumed from 17th Feb. 

The minister said that during talks, the issues of purchasing new tracks, freight trains and engines from India also cropped up, and India has assured of all possible assistance in this condition. 

He said that the Indian recommendation to run the Monabao- Khokhrapar train service would be discussed at the foreign office levels. 

http://www.paktribune.com/news/index.shtml?168918


----------



## Neo

*Deep-water container port planned at Keamari Groyne *

KARACHI (February 15 2007): Karachi Port Trust (KPT) is developing Pakistan Deep Water Container Port at east of Keamari Groyne as a major regional transit and trans-shipment hub for handling current and future generation vessels.

In this regard, the pre-qualification notice for hiring contractors is issued by the KPT for dredging works of basin and approaches, the reclamation and the marine protection work to develop the new deep-water container port. In addition, KPT would retain an option to enhance scope of work by adding Dredging and Reclamation of Cargo Village and Reconstruction of Berths projects.

The feasibility study for Pakistan Deep Water Container Port was conducted by Posford Haskoning of Netherlands in association with HR Wallingford of United Kingdom and Techno Consult International. The study was completed in mid 2005, in which construction of ten berths was recommended at Keamari Groyne to cater the future requirements.

KPT has earlier advertised the project for pre-qualification of concession agreement and has received overwhelming response on the project. Nine consortia have participated namely PSA International Singapore (Singapore), Dubai Port World (Dubai), Macrsk - ARM (Denmark), Hutchison Port Holding (Hong Kong), CMA - CGM (France), ICTSI (UAE), RGL Port International (Kuwait), Gulftainer Company Limited (UAE) and Noor Financial Investment Company (Kuwait) have submitted their pre-qualification documents. The lease of the terminal shall be initially for 25 years extendable for further 25 years.

http://www.brecorder.com/index.php?id=528875&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*PQA's capacity to rise over 160 percent in four years *

KARACHI (February 15 2007): Diplomats from 40 foreign countries were briefed about the geo-strategic location of Pakistan on the world map and significance of its ports which placed the country in an ideal position to grow and establish itself as a regional hub for international trade.

The briefing was conducted by Chairman, PQA, Vice-Admiral, Asad Qureshi during the visit of diplomats to PQA Wednesday. The diplomats were from Brunei, South Africa, Yemen, Botswana, Congo, Gambia, Guinea Bissau, Iraq, Kenya, Kyrgstan, Lesotho, Liberia, Libya, Malaysia, Maldives, Mauritania, Niger, Swaziland, Tajikistan, Turkmenistan and Uzbekistan. Chairman, PQA also enlightened the guests about the objectives of National Trade Corridor improvement plan for providing efficient transport links, simplification of procedures, reduction in port charges and customs reforms for sustainable growth to reduce cost of doing business in Pakistan to boost exports.

The delegates were informed that with the deepening and widening of channel to 15 meter draught (in all weather) and with the installation of night beacon, the ship handling capacity would also increase from its present capacity and by 2010, with the completion of additional nine terminals, increase in berths shall be 100 percent while annual handling capacity shall increase by 161 percent. They were also briefed about the future development plan in industrial sector at the Port.

http://www.brecorder.com/index.php?id=528809&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*President approves Rs14 bln Leh Nullah road project *

RAWALPINDI: February 15, 2007: President General Pervez Musharraf on Thursday approved construction of a Rs. 14 billion two-lane signal-free road from Chaklala to Katarian along either side of Leh nullah on a fast track basis.

The approval was accorded after a presentation by the Engineer-in-Chief of Pakistan Army, also attended by Minister for Railways Sheikh Rashid Ahmad, District Nazim Rawalpindi Raja Javed Akhlas and senior officials.

The president directed the uplift of Rawalpindi city and removal of disparities between the twin cities of Rawalpindi and Islamabad in civic facilities. He also asked the authorities to simultaneously take up the sewerage disposal and treatment project.

President Musharraf said the Leh nullah road project, to be initiated soon, will address the issues of traffic congestion, environment and mitigate the floods, which have resulted in loss of lives and property in the past and have been a source of concern for the people of Rawalpindi.

The president was informed that there will be no acquisition of land involved in the project and minor encroachments will be re-located. It will be the largest infrastructure and development project in the city.

The Engineer-in-Chief's branch of Pakistan Army and Frontier Works Organisation would be participating in the project for its early completion and to ensure quality of the work.

The Leh nullah, once a fresh water stream, has turned into a serious environmental issue as all the sewerage water of the twin cities passes through it and is a source of flooding in the adjoining localities, particularly during monsoon.

http://www.brecorder.com


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## Neo

*'Concrete steps underway to improve existing rail system' *

HAFIZABAD (February 18 2007): Federal Minister for Railways Sheikh Rasheed Ahmad said here on Saturday that concrete steps were being taken for the improvement of existing rail system and to introduce new fast trains in the country.

Addressing a big gathering at a local Railway Station, the minister said that in the past railway timetables used to prepare in connivance with the transporters to benefit them but now time tables were being prepared for providing facility to the travelling public.

He said that 51 foreign companies have been invited for the introduction of new express trains in the country. He said that Rs 5.5 billion are being spent on the laying of double track from Lahore and Karachi and work has been entrusted to Frontier Works Organisation (FWO) which will be completed by December this year. He hoped that atleast forty train crossings would be eliminated due to laying of double track.

He regretted that during the past six years no effort was made to improve the existing railway system. He stressed the need for creating awareness among the commuters to desist from ticketless travelling.

He disclosed that over Rs 700,000 daily is being realised from ticketless travellers as fine. He said that three new trains would be introduced namely, Nishtar Express, Sir Syed Express and Pindi Express between Rawalpindi and Karachi during the current month.

After the rehabilitation of track between Sialkot and Hafizabad, more express and shuttle trains would be introduced between Sialkot and Faisalabad via Wazirabad-Hafiazabad-Sangla Hill to meet the demands of commuters of this section. Replying to a question, he said that since his taking over the charge of Railway Ministry, 2000,000 passengers have been increased per month.

On the request of Chaudhry Liaquat Abbas Bhatti MNA, Chaudhry Mubashar Abbas Bhatti District Nazim and Dr Muzaffar Ali Sheikh, the Railway Minister allowed the district government to start construction of underpass at the railway track between Mohallah Sherpura and Bijli Mohallah, funds for which has already been released by the provincial government.

He assured that after the manufacturing of two new coaches, Pakistan Express (between Pindi and Karachi via Hafizabad) would operate daily. Meanwhile, he strongly condemned the bomb blast in Quetta on Saturday in which number of precious lives including a senior civil judge were lost.

http://www.brecorder.com/index.php?id=529889&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*New Pak-China rail link: pre-feasibility study project signed *

ISLAMABAD (February 20 2007): Pakistan Railways on Monday signed a pre-feasibility study project for new rail link from Havelian to Khunjrab with a German and Austrian firm (ILF Consulting Engineers). ILF Consulting Engineers quoted the lowest rates of Rs 72.50 million for the project in the tender, which was participated by three other firms.

This project would be jointly carried out by Chinese firm Dongfang, which was the second lowest in the bid.

Pakistan Railways had asked the firm to bring lower their offer, matching with the lowest, so that the project could be jointly awarded. The firm accordingly reduced their bid and an agreement to this effect was already signed in Lahore between Pakistan Railways and the firm.

The agreement with the ILF Consulting Engineers was signed by General Manager Operations Asad Saeed. Minister for Railways Sheikh Rashid Ahmed was also there to witness the signing of the agreement.

http://brecorder.com/index.php?id=530387&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Pak ports provide ideal gateway *

ISLAMABAD: Pakistani ports are on the worldÃÂ­s main oil and LNG shipping routes and provide an ideal gateway for connecting to emerging high demand in India and China. Our ports provide convenient convergence being the hub of proposed/possible oil and gas pipelines from Central African Republics (CARs).

This was stated by Munawar Baseer Ahmad, Managing Director, Sui Southern Gas Company while speaking on the topic of Ã¢â¬ËPakistanÃ¢â¬â¢s role as the South Asian Energy CorridorÃ¢â¬â¢. He was addressing the first working session of the 3rd Pakistan Oil and Gas Conference 2007 that commenced on February 18, 2007 in Islamabad and was inaugurated by Prime Minister Shaukat Aziz, says a press release.

The three-day event held every two years has been organised by the Petroleum Institute of Pakistan (PIP) established in July 1963 for the purpose of promoting and coordinating the activities of the Oil and Gas Industry in Pakistan.

PIP is headed by its Chairman Syed Munsif Raza who is also the Managing Director of Pakistan Petroleum Ltd.

The session was chaired by Ahmed Waqar, Federal Secretary Ministry of Petroleum and natural resources. Mukhtar Ahmed, Adviser to Prime Minister on Energy also spoke on the topic of Ã¢â¬ËPakistanÃ¢â¬â¢s energy strategy and its role in South AsiaÃ¢â¬â¢ while dilating on adequate and affordable energy supply to meet the needs of PakistanÃ¢â¬â¢s expanding economy.

He said that the present energy supply to China was through Ocean route and in case of any constraint, the supply may get disrupted. In such a scenario, the MD asserted, the proposed Energy Corridor would provide reliable, efficient and strategic mode of transportation for oil and gas ensuring supply integrity to China and India on Long Term Basis.

Earlier, Mukhtar Ahmed, Adviser to the Prime Minister on Energy started the proceedings by speaking on the issue of PakistanÃ¢â¬â¢s energy strategy and its role in South Asia. He said that the security of energy supply required a balanced energy mix and maximum indigenous resource utilisation.

He added that the long-term viability of energy sector required appropriate distribution of responsibilities which included policy formulation, regulation, administration), rational industry structure in the form of GovernmentÃ¢â¬â¢s Ã¢â¬ËstrategicÃ¢â¬â¢ presence, public-private partnership & exclusive private ownership) and sustainable pricing regime.

http://www.thenews.com.pk/daily_detail.asp?id=43575


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## Neo

February 20, 2007 
*WB provides Rs1.61bn for improving highway*

ISLAMABAD, Feb 19: The World Bank has provided Rs1.61 billion to the National Highway Authority for the improvement of the highway from Rawalpindi to Peshawar, top NHA officials said.

This amount will be spent on two major rehabilitation projects, including Rs1.1 billion for the construction of the 57-km Tarnol to Chablot section and Rs512 million for the 68-km Nowshera to Peshawar section of the highway technically known as N-5, said NHA member operations Brig Shahid Majeed.

Work has already started on the projects and about 3 km of the road, from Tarnol to Sangjani, has been completed and opened for traffic. The remaining portions along with bridges, flyovers and underpasses will be completed in about one-and-a-half year, an NHA official said. The N-5 Road will be one of the best highways when completed, said Brig Shahid.

At present, the highway is in extremely shabby condition causing great trouble to motorists and public transport owners.

One of the oldest and busiest, the N-5 Road has become so risky to travel on due to the frequent diversions, swerves, its numerous broken sections, ups and downs, ditches and unnecessary speed breakers -- most of which appear all of a sudden. A motorist travelling at a high speed increases his chances to a maximum of being involved in an accident if he has to apply brakes or reduce speed suddenly on such a shoddy road.

Motorists and public transporters have been facing great trouble travelling on this highway.

http://www.dawn.com/2007/02/20/top10.htm


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## Neo

Wednesday, February 21, 2007 

*19 reasons why Shahra-e-Faisal shouldnÃ¢â¬â¢t be destroyed by an elevated expressway: IAP*

KARACHI: The Institute of Architects Pakistan (IAP) has listed 19 reasons and concerns about the proposed Elevated Expressway (EE) that the CDGK plans to build over the M.T. Khan Road / Shahrah-e-Faisal corridor, according to a press release Tuesday. On Feb 24, the CDGK is holding a briefing on the project at the AKU at 10:30 a.m., the IAPÃ¢â¬â¢s Amina Nasim Jan told Daily Times.

According to the press release, the architects and planners are not against development; in fact their business thrives with the development in the country but Shahrah-e-Faisal which has been there since before Partition was never designed to support an elevated expressway. 

The project proposes to construct a 24km long, 4 lane expressway which will stretch from Jinnah Bridge at Keamari to Quaidabad in Malir. Vehicles will be required to pay a toll. There will be six entry and exit points; Quaidabad, Star Gate, Karsaz, Shahrah-e-Quaideen, Hotel Metropole, and Jinnah Bridge. The EE will be high enough to clear the existing overpasses and will have toll plazas at intermediate levels at the six entry/ exit nodes. There have been very limited public hearings on this project. 

Several prominent members of the architectural and engineering communities have expressed their reservations but their concerns have been brushed aside in the rush to initiate this project in the name of development and foreign investment.

The IAP believes that there are several reasons why this project is conceptually flawed and unfeasible: The EE is being developed to ease the current and projected load on Shahrah-e-Faisal. The project does not take into account the alternative route and the relief that will be provided by the Lyari Expressway nor does it consider any different corridors to divert traffic off of Shahrah-e-Faisal.

The EE is proposed to be a high-speed link for freight and passenger traffic between the airport, Karachi Harbour and the Port Qasim. Realistically, there is very limited traffic between the airport and the two ports. Instead there is much greater freight traffic between the ports and the rest of the country, adequately serviced by the Northern Bypass.

It is also not correct to refer to the EE as the Southern Bypass as has been suggested because it bypasses nothing and ploughs through the densest and most valuable real estate in Karachi. The EE also does not service any of the industrial estates of Karachi. There is no direct access to the EE from Korangi, SITE and North Karachi except through residential neighbourhoods. These areas are much better served by the Northern Bypass and the National Highway.

The project proposes to place a limited access high-speed expressway over the alignment of Shahrah-e-Faisal and M.T. Khan Road. This would mean that the expressway would have the same constraints and limitations as Shahrah-e-Faisal and M.T. Khan Road and will hardly allow expressway speeds. For example, the expressway will travel over the Bridge at PIDC, squeeze between Hotel Pearl Continental and Hotel Sheraton; curve around Hotel Metropole and past Hotel Avari.

By adding the EE, the volume of traffic that can be handled by the Shahrah-e-Faisal corridor may be doubled but the roads leading into Shahrah-e-Faisal and away from it will remain the same. This will create major congestion on roads feeding Shahrah-e-Faisal. An EE is an expensive and inefficient response to the cityÃ¢â¬â¢s traffic problems. When the volume exceeds the capacity of the EE, it will not be possible to widen it. Therefore, this project will have much shorter productive life span than an on-grade highway.

The EE is being proposed as a 4 lane highway with two lanes traveling in either direction (The 6-lanes claimed in CDGK publications includes entry and exit lanes). There is no provision for a shoulder or emergency lane. A breakdown or accident on the expressway will result in traffic jams of monumental proportions, with no escape for vehicles and no access for fire tenders or ambulances except from the six exit points.

The placement of the six entry and exit points is not rationally based on the requirements of the cityÃ¢â¬â¢s traffic but rather on the limited space available for entry and exit ramps and toll plazas. For example, there is no entry or exit at Jinnah Airport. Airport traffic will exit the EE at Star Gate intersection and merge with Shahrah-e-Faisal traffic till the JIA intersection. There is no interchange at either Rashid Minhas Road or FTC. Residents of Gulshan-e-Iqbal and DHA would have to exit earlier and merge with Shahrah-e-Faisal traffic. 

The proposed Master Plan 2020 calls for the development of multiple nuclei, i.e. additional business districts at different locations throughout the city to reduce commuting time and pressure on our roads and other resources. The goal of this proposal is to decrease the dependence on Saddar. This is a commendable proposal in the Master Plan. The EE tends to contradict this goal of the Master Plan as it seeks to concentrate more traffic into Saddar. If this money were applied instead to develop a Central Business District in Port Qasim it would open up jobs there and reduce traffic to Saddar.

Lastly, the increase in the number of cars on the roads in Karachi is not a valid justification for the construction of new highways. The city should not be fascinated by the notion of having an elevated expressway as if such a thing is an achievement that heralds KarachiÃ¢â¬â¢s elevation to a Ã¢â¬Ëmega cityÃ¢â¬â¢. Elevated expressways are usually the failure of urban planning because they indicate that a city has failed to manage its traffic problems through less dense, less expensive, on-grade solutions.

The construction of the EE will ruin one of the most attractive boulevards in Karachi. Trees along Shahrah-e-Faisal will be lost. It will effectively place a roof over the existing roadway, cutting off sunlight and breezes. Anyone wanting to imagine the ambience of the resulting roadway need only stand under the NIPA flyover or the Liaquatabad Flyover and imagine it extending for 24km.

The increased traffic load on the Shahrah-e-Faisal corridor and the construction of the EE will greatly increase the levels of emissions. The expressway perched above Shahrah-e-Faisal will trap pollution and prevent it from dispersing. 

The EE passes through the heart of KarachiÃ¢â¬â¢s thriving commercial, business and tourist districts. Much of its length is over Shahrah-e-Faisal which was recently designated as a corridor for high rise commercial development. After its completion, traffic on the EE will whiz past the third and fourth floor of these buildings. The high walls of these building will create a canyon-like effect which will trap pollution and amplify noise. The EE will obscure the facades of every building that it will cross, greatly hinder peopleÃ¢â¬â¢s access and will depreciate real estate values.

The price tag for the EE has grown from the initial US$225 million through $250 million to $350 million (Rs 21b). Figures much higher than these have been quoted by independent sources. The feasibility of this project depends on the recovery of the cost through tolls. 

The EE project is expected to cost $350 million or Rs 21 billion. The developer is expected to recover their investment by collecting tolls from all vehicles over the first 20 years of its life. This means that the operator will need to collect Rs 1,050,000,000 per year or more than Rs 2,876,000 per day. If the average toll per vehicle per trip is set at Rs 20 that would amount to 143,835 cars per day using the expressway. Divided between the six entry/exit points, that amounts to almost 24,000 cars per exit per day or one car every 3.6 seconds. It would seem unlikely that the CDGKÃ¢â¬â¢s financial claims about this project will be realized. In which case the foreign developer of the project will claim the CDGKÃ¢â¬â¢s sovereign guarantee.

The construction of the EE will cause severe hardship to the residents of Karachi particularly to the businesses located on Shahrah-e-Faisal. The construction time of 30 months appears to be too optimistic considering the usual pace of construction in Pakistan (foreign developer notwithstanding). The CDGK has not shared any plans with the citizens of Karachi on how it plans to achieve these diversion plans during the construction period and which adjacent neighbourhoods will be affected.

Shahrah-e-Faisal is the main access route to the airport and is heavily used for the movement of VVIPÃ¢â¬â¢s. How will this access be maintained during construction? What diversionary routes will be used for VVIP traffic at added security risks? There have been no public hearing held to discuss this with residents and businesses along the Shahrah-e-Faisal / M.T. Khan Road corridor. 

The EE is not the only solution to the traffic problems of Shahrah-e-Faisal. After its completion, The Lyari Expressway will handle a large volume of traffic currently accessing Shahrah-e-Faisal from the north. The IAP proposes two alternatives: develop an on-grade highway along the Malir River bed and; develop the under-construction road through the Korangi Industrial Area into an expressway. Both proposals can be connected laterally across the Malir River to Shahrah-e-Faisal which will provide a natural detour during VVIP movement. This will allow citizens living south of Shahrah-e-Faisal to use this expressway instead. Both proposals can be connected to Karachi Harbour through limited access corridors through DHA.

http://www.dailytimes.com.pk/default.asp?page=2007\02\21\story_21-2-2007_pg12_1


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## Neo

*Aero Asia to purchase new aircraft *

KARACHI: Just days after Airblue announced the launch of a long-haul flight to Manchester from May, Aero Asia, another Pakistani private airline, also made public its plan to operate flights between Islamabad and the UK city in the next three to four months.

But Aero Asia that has had a turbulent past has come out with a new idea to capture the lucrative route, once the exclusive domain of PakistanÃ¢â¬â¢s national flag carrier.

Ã¢â¬ÅActually, this route should be called Mirpur to Manchester as we will be focusing on a large number of Ã¢â¬ËMirpurisÃ¢â¬â¢ who frequently visit England,Ã¢â¬Â Managing Director Aero Asia, Haider Jalal said on Wednesday night, referring to the hilly district of Azad Kashmir.

In the last couple of decades, tens of thousands of Mirpuris have settled abroad, notably in England and it is believed that facilitation of these natives, who frequently visit relatives, will give the airline an upper hand over others.

Aero Asia, now owned by the UK-based Regal Group, has decided to arrange a special transportation service to bring passengers from Mirpur to Islamabad, Jalal said while addressing a gathering of travel agents here at a local hotel.

Recalling how Aero Asia was grounded in May 2006 and Ã¢â¬ËsalvagedÃ¢â¬â¢ by the new group a month later, he mentioned a number of steps, ranging from the induction of new planes to increasing international destinations, envisaged for the revival of the countryÃ¢â¬â¢s first private airline.

He said frequency of flights to existing domestic destinations and Dubai would be increased, besides new flight schedule for Sukkur, Multan, Pasni and Gwadar was also in the pipeline. Ã¢â¬ÅThere are also plans for a shuttle service between Lahore and Islamabad,Ã¢â¬Â he added.

On a more ambitious side, the airline is eyeing to target Pakistanis in Copenhagen, Oslo and Barcelona as well as looking to start freight flights to Belgium and Austria from Lahore for which a DC-8 freighter plane with 48 tonsÃ¢â¬â¢ capacity is being leased.

Jalal said a B-737 300 would be inducted next week, which would be the fourth addition to the existing fleet of three aircraft. Ã¢â¬ÅThe airline will also add one more plane that is either going to be a B-767, A-310 or A-321,Ã¢â¬Â he added.

Chairman Zahoor Ahmed, in his brief remarks, said in the next few months the seeds of transformation would start to bear fruit.

http://www.thenews.com.pk/daily_detail.asp?id=44047


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## Neo

*MoU inked with China on Sost Dry Port* 

ISLAMABAD (February 24 2007): Pakistan and China have signed an MoU according to which a joint venture company "Pak China Sost Dry Port Pvt Ltd" will be registered in Northern Areas for amicable handling of all the affairs pertaining to business and management of Sost Dry Port.

The MoU regarding "Silk Route Dry Port Trust" was signed on Friday in Islamabad by Yuan Jianmin, Chairman Sinortans China and Saleem Khan Vice Chairman in the presence of Federal Minister for Kashmir Affairs and Northern Areas, Major Tahir Iqbal (Retd).

Earlier, the minister chaired a high-level meeting to discuss and resolve the issues connected with Sost Dry Port which was attended by the Chinese delegation, Secretary Kashmir Affairs and Northern Areas, representatives from Chinese Embassy and Director China M/o Foreign Affairs.

The minister categorically decided that from now on all the business done would be in the name of this Joint Company. The account management and administration of the SDP would be jointly controlled by Pakistani and Chinese side and a balance will be attained in the number of officials from the two sides.

It was also decided that the 4th Board meeting would be held on 6th March, which will be chaired by the minister where an actual new board will be formulated for the tenure of 3 years, which will then not be changed unnecessarily. The board members will be nominated/terminated according to the laid down procedures, which will be similar for both sides.

The minister also decided that the loans taken separately by the Chinese Company and the "Silk Route Dry Port Trust" will not be a liability of the joint company and will be the own responsibility of these companies. The company board will also have an ex-official member from the NAs administration.

The minister stated at the occasion that Pakistan and China enjoy time-tested exemplary cordial relations which will further be strengthened by the signing of this MoU as all the disputed issues have been resolved with mutual consensus. He added that Sost Dry Port would serve as foundation for future investments and trade between the two countries.

The minister said that President Musharraf and Prime Minister Shaukat Aziz have expressed concern over the SDP issues and have asked the minister to get involved and resolve these at the earliest.

Chairman Sinortans, China reciprocated the minister's sentiment and said that they fully agree with the decisions reached during the meeting and would provide 100 percent support for future management of SDP.

He expressed his gratitude to the minister for taking keen interest in resolving the affairs regarding SDP and invited him to chair the next board meeting in China. Later, the minister reported the out come of the meeting to Prime Minister Shaukat Aziz and presented a copy of the MoU.

http://brecorder.com/index.php?id=531838&currPageNo=1&query=&search=&term=&supDate=


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## Neo

Feb 24, 2007 

* China-Pakistan rail link on horizon*
By Syed Fazl-e-Haider 

QUETTA, Pakistan - Islamabad on Monday awarded a Rs72 million (US$1.2 million) contract to an international consortium to carry out a feasibility study for establishing a rail link with China to boost trade relations between the two countries. 

The study will cover a 750-kilometer section between Havellian and the 4,730-meter-high Khunjerab crossing over Mansehra district and the Karakoram Highway. Havellian is already linked with the rest of the rail network in Pakistan; the Chinese will lay track within their territory up to Khunjerab, linking Pakistan with China's rail network. 

By expanding its stake in Pakistan's rail sector, China is poised to exploit the country's advantageous geographical position - strategically located at the confluence of South, Central and West Asia. 

Beijing's involvement in several rail projects in Pakistan is motivated primarily by commercial considerations, but it also sees distinct advantages for its improved transportation and access to Central Asia and the Persian Gulf states. A reliable network of road and rail links can only ensure China's access to energy-rich central Asia, serving it both commercially and strategically. 

In the first week of this month, Pakistan Railways and China's Dong Fang Electric Supply Corp signed an agreement for establishing a rail link between Havellian and Khunjerab. Ingenieurgemeinschaft Lasser-Feizlmayr (ILF), a consortium of consultant engineers from Austria, Germany and Pakistan, is to submit its report to the Ministry of Railways in nine months. It is most likely that the distance between Havellian and Khunjerab will involve the construction of tunnels. The ILF services encompass both the construction of new high-speed railway lines and the modernization of existing lines for standard-gauge and narrow-gauge railways in addition to tunnels. 

China is actively involved in the development of Pakistan Railways and for the past five years it has been increasing its stake in the country's communication sector. Pakistan Railways is a state-owned company that provides an important mode of transportation in the furthest corners of the country. It has been a great integrating force and forms the lifeline of the country by catering to its needs for large-scale movement of people. The freight-passenger earnings comprise 50% of the railway's total revenue. Pakistan Railways carries 65 million passengers annually and operates 228 mail, express and passenger trains daily. It introduced new mail and express trains between major terminals from 2003 to 2005. 

Pakistan Railways has recently entered several agreements with Chinese railway companies for its development. In 2001, Pakistan Railways signed a $91.89 million contract with China National Machinery Import and Export Corp for the manufacture of 175 new high-speed passenger coaches. The project was funded by Exim Bank China on a supplier credit basis. Forty completely built passenger coaches have been received and 105 will be assembled in Pakistan Railways' carriage factory by next December. 

These coaches are being used on Pakistan Railways' mail and express trains from Rawalpindi-Lahore-Karachi, Lahore-Faisalabad and Rawalpindi-Quetta. The manufacturing kits for the remaining 30 coaches have also been received and manufacturing is in progress. With 12 already assembled, the project is scheduled to be completed by next month. The passenger coaches are of the latest design and are equipped with disc brakes. The technology transfer for these coaches has been obtained from China's Chang Chun Car Co. 

Under an agreement signed with China in 2003, Pakistan Railways purchased 69 locomotives, of which 15 were delivered as completely built units and are in use by Pakistan Railways. The remaining 54 are to be built at Pakistan Railways' locomotive factory. The Chinese locomotives are 37% cheaper than the European locomotives. 

Some in Pakistan have been criticizing the faulty locomotives purchased by Pakistan Railways from Dong Fang Electric Corp of China. It is surprising that last year, Pakistan Railways decided to purchase 45 more 2,000-3,000-horsepower locomotives from the same company. The company is willing to redesign the already-delivered 30 locomotives of the original order, such that the underframe is strengthened and the weight reduced to less than 140 tons. Last year, as a result of an open bidding, a Chinese company, Beijing Research and Design Institute, is committed to providing 300 rail cars to Pakistan Railways. 

Under another agreement signed in 2004 with China National Machinery and Equipment Group, the Chinese company is to undertake the construction of Corridor 1 of a light-rail mass-transit system for Karachi that is intended to serve 4 million commuters. The project will cost about $568 million and take four and a half years to complete. The contract has been awarded on a build-operate-transfer basis and comprises five corridors. 

Pakistan signed a series of agreements with China during the past three years to enhance the capability of its railway system. Under an agreement signed between Pakistan and China Railway, a Chinese company will provide 1,300 freight cars to Pakistan Railways, of which 420 will be manufactured in China and the remaining 880 will be produced at the Moghalpura railway workshops in Lahore. 

Under another project, 450 passenger coaches will be rehabilitated at an estimated cost of Rs2.14 billion. The project also includes the conversion of 40 coaches into air-conditioned cars and the conversion of 10 power vans. Furthermore, there is a provision of 100 new high-speed bogies, 30 of which will be imported from China, while 70 will be manufactured locally on a transfer-of-technology basis. Under a separate agreement, 175 new passenger coaches are being purchased from China. 

As part of a $100 million agreement signed between Pakistan and China in November 2001, China is to export 69 modern locomotive engines to Pakistan to modernize Pakistan's railway fleet. The first eight engines have been completed and are ready for shipment to Karachi. The new engines consume less fuel than older models and are cheaper to maintain. The main feature of this deal is that the first 15 engines will be manufactured in China and the remainder will be assembled in Pakistan, with spare parts and technology provided by China. Similarly, for a Rs7.2 billion railway project in Sindh province involving laying 78,000 tons of rails, China delivered 64,000 tons to Pakistan Railways. 

As a part of its development plan for its transport and communications network, Pakistan Railways has completed a feasibility study of the Chaman-Kandahar section for laying railway tracks between Pakistan and Turkmenistan through Afghanistan. The feasibility study for cost, engineering and design for the construction of a rail link from Gwadar to the existing rail network in Mastung district in Balochistan has also been finalized. The new link to Gwadar port will open up underdeveloped areas of Balochistan for development. The main aim of the venture is to connect the Central Asian republics with Pakistan Railways' network through Afghanistan. 

China is going to be the beneficiary of Gwadar's most accessible international trade routes to the Central Asian republics and Xinjiang. By extending its East-West Railway from the Chinese border city of Kashi to Peshawar in Pakistan's northwest, Beijing can receive cargo to and from Gwadar along the shortest route, from Karachi to Peshawar. The rail network could also be used to supply oil from the Persian Gulf to Xinjiang. Pakistan's internal rail network can also provide China with rail access to Iran. 

http://atimes.com/atimes/South_Asia/IB24Df02.html


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## Neo

February 25, 2007 
*Rs5 billion bridge over River Indus*

KARACHI, Feb 24: Sometimes next week one of the top government functionaries is performing a groundbreaking ceremony of a Rs5 billion bridge construction project on River Indus that will connect Khairpur with Sukkur and reduce the distance by 59 kilometres.

The scheme proposes to construct a two-lane 24 feet bridge over River Indus including a 43-km long approach road as approved by the Central Development Working Party (CDWP) in October last and had recommended for approval to the Economic Committee of National Economic Council.

On completion, expected in next three years at a total cost of Rs4.8 billion, the bridge will not only reduce the distance between Khairpur and Sukkur but will also provide access to the highway and motorways now in process of upgrading on both left and right banks of River Indus. It is bound to open up area to the entire Pakistan.

For last more than 23 years, the people of the province particularly of these two districts have been demanding construction of an all weather permanent bridge on River Indus to save time on travelling. For one reason or the other, the inclusion of project in the Public Sector Development Programme was put off.

Ã¢â¬ÅOur government took up the project with renewed enthusiasm for inclusion in the PSDP after 2002 elections,Ã¢â¬Â Sindh Planning and Development Minister Syed Shoib Ahmad Bokhari said in an informal conversation.

As he said a meeting of the political leaders that included the elected Nazims of the two districts and senior officials and chaired by him finalised the alignment of the bridge at North of Baqirani and North of Khuhra with the approval of the Provincial Chief Minister.

The project was included in the PSDP for 2004-05 with a token allocation of Rs5 million. It could, however, not be taken up but now has been included the PSDP for the current fiscal year. The National Highway Authority (NHA) is taking up the implementation of the project and has given a schedule.

http://www.dawn.com/2007/02/25/ebr8.htm


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## Neo

Sunday, February 25, 2007 

*CAA to spend Rs 40b on uplift of airports*

LAHORE: The Civil Aviation Authority (CAA) would spend Rs 40 billion on the construction of new airports and upgrading of existing facilities in the coming three to seven years. 

This was disclosed by CAA Director General Farooq Rehmatullah, while talking to the press, at the conclusion of a one-day regional countries conference on navigation issues and air routes. The conference was attended by the CAA representatives of India, Sri Lanka, Bangladesh, Bhutan, Nepal and Maldives.

The CAA DG told the press that the objective of the meeting was to improve the air routes and make them economically more viable. He added that the meeting also discussed the opportunities of training of the CAA staff of the countries concerned. He said the next meeting would be held in Nov 2007 in Islamabad. The association is called Cooperative Development of Operational Safety and Continuing Airworthiness Programme (COSCAP) South Asia. 

The agenda, which came under discussion, was regional air routes, air traffic congestion, problems over Afghanistan airspace, enhancement of regional cooperation and harmonization of regulations, restructuring of CAA Pakistan and Civil Aviation Training Institute (CATI) situated at Hyderabad Pakistan.

During the press briefing, CAA DG talking about the CAA progress said that they would construct new airports and upgrade the old facilities in the coming three to seven years. He said that overall, Rs 40 billion would be spent on the projects that include the improving facilities in Islamabad, Karachi, Lahore, Peshawar, Quetta, Lahore, Sukkur and other places. The new airports would be constructed in Islamabad and Gwadar. He said that apart from increasing airports, the consolidation of departments and cargo services would also be focused. 

He added that the CAA also wanted to improve cargo income and would make its functioning better. He added that only performance-based people would stay with reward in CAA in future. 

About the air companies having debts towards the CAA, he said two of them, Bhoja and Hajvery, had been closed. He further elaborated the departmental problems and the issues pertaining to the CAA.

http://www.dailytimes.com.pk/default.asp?page=2007\02\25\story_25-2-2007_pg5_3


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## Neo

*Rs 2 billion to be spent on revival of railway track: Rashid *

CHAKWAL (February 26 2007): Federal Minister for Railways Sheikh Rashid Ahmad announced that Rs 2 billion would be spent on the revival of railway track and all the land adjacent to the railway station would be sold and a modern Railway station would be established at Chakwal and the train would start functional in a year.

Addressing a mammoth public gathering at Government College here after laying foundation stone of revival of Mandra to Bhaun Railway track. Sheikh Rashid Ahmad said on Sunday that the presidential election would be held before the general polls.

He termed the election as very important because it would be for the strengthening of Pakistan and moreover it would give stability to the democracy. MPA Chaudhry Ijaz Hussain Farhat, Malik Fida-ur-Rehman and District Nazim Chakwal Sardar Ghulam Abbas also spoke on this occasion.

Federal Minister was of the view that the Punjab province role in the coming general election would be vital and people have to decide that they would vote for the strengthening of Pakistan. He regretted that American policies were against the Muslims throughout the world and the life of the Muslims were made miserable after 9/11 incident.

He said Pakistan was the fortress of Islam. He criticised the double standard of MMA who promised that they would resign from the assemblies if woman protection bill was approved from the National Assembly and now they had backed out from their commitment.

Earlier, talking to the newsmen at historic 100 years old Chakwal Railway Station the minister was confident that after the tragedy of Samjhota Express the dialogue between Pakistan and India would not be hampered and Pakistan Government was confident that Pakistan would taken into confidence after the inquiry of the incident.

He further said that the security of both the railway trains was handed over to the rangers and both the countries were unanimous that some serious measures should be adopted for the security of Samjhota Express so that such incident should not be repeated.

District Nazim thanked General Pervaiz Musharraf for fulfilling the announcement made by President at a public meeting at Katas District Chakwal some 8 months ago and Federal Minister came here to implement the President's announcement.

http://www.brecorder.com/index.php?id=532709&currPageNo=2&query=&search=&term=&supDate=


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## Neo

February 26, 2007 
*KARACHI: Transport yet to get due attention*

KARACHI, Feb 25: The public transport problem in Karachi is where it had been years ago, and there is no hope of its solution as the rulers seem not yet ready to give this pressing social, economic and human issue a proper place on the list of their priorities.

It has now become a set pattern that when the baffled Karachiites raise their concerns over this issue, the rulers pacify them with lollipops of the complete and early revival of the Karachi Circular Railway (KCR) and 8,000 new wide-bodies CNG buses. Years come and go, but the promises of the KCR revival and CNG buses are not fulfilled. One could only salute the Karachiites for their patience.

During morning and evening rush times daily, millions of Karachiites travel in shabby, overcrowded, painfully slow and dangerously fast buses and minibuses to reach their workplace or homes in a very pathetic manner.

To help end their plights, the former city government administration in 2001 introduced the Urban Transport System (UTS) system in Karachi, and Green Buses and some other private companies ran CNG-run wide-bodied buses. It is said that the former city nazim had envisaged bringing some 10,000 environment-friendly CNG buses in Karachi in two phases, besides a plan to convert half of the existing city buses on CNG. He had also offered incentives such as CNG at half the price of diesel, sales and import duty exemptions and concessions for installing CNG refueling stations.

He had successfully persuaded the federal government to waive the import duty and sales taxes on the import of these buses as a special case.

However, despite such ambitious plans, in practice some 300 CNG buses were brought on Karachi roads in the era of Naimatullah Khan. These included UTS and Karachi Public Transport Scheme (KPTS) buses, including 32 AC long buses of the Sweden Bus Company, 28 AC buses of the Green Bus Company, 30 non-AC buses of the World Wide Enterprises, 30 non-AC buses of the Allied Bus Service, 28 non-AC buses of the Green Bus Company and 197 non-AC buses of Metro Bus Service.

City Nazim Syed Mustafa Kamal also saw solution to the public transport problems in the wide-bodied CNG buses and said that histhe administration would introduce 8000 new CNG buses in five years to phase out worn-out buses from the city. According to his plan, the first tranche of these 8,000 new CNG buses had to reach Karachi by December 2006.

However, the year 2006 passed without seeing any of the promised CNG bus, and for the year 2007 there is even not even a tentative date for the first tranche. There is a ray of hope that a South Korean bus maker is setting up an assembling plant in Karachi, but when will it be finalised and begin rolling out production no one knows.

The progress on the revival of the KCR, a mega rail-based urban public transport system for this seventh largest city of the world, also seems painfully slow. It is a pity that though this ambitious project, launched as back as 1969, was abruptly closed in 1999, and since then its fate hangs in the balance. In 2004 President General Musharraf had ordered the revival of the KCR within two years, but despite the passage of three years it is still in limbo.

Though it is now said that Japanese investors are keen to invest in this project and the government had also given green light to them, to the dismay of Karachi commuters the physical work on this very vital rail-based urban project is yet to be initiated.

Many Karachiites see no hope in the early future for the revival of the KCR or introduction of CNG buses, as the ruling quarters, notwithstanding their rosy statements, seem not keen to take on the issue.

There is no concept of a urban city without a matching urban public transport system. It is interesting that the basic theme of a majority of statements of officials is that Karachi has not only joined the club of modern and developed urban cities, but it is becoming a regional hub of trade and commercial activities.

One is at loss to understand how a city having inefficient and obsolete mode of public transport could be termed a modern urban city. The public transport sector of Karachi since long has been a victim of ostrich policies of successive administrations. Sadly the present one also seems following in their footsteps. The policymakers are forgetting the basic point that they could not get rid of the pressing issues by putting them off, because these issues only get complicated and aggravated with deferral, and in later stages like chronic diseases are hard to cure.

To solve the chronic issue of public transport in Karachi, our policymakers need courage, innovation and strong political will.

Public, however, patient and naive it may be, could not be hoodwinked for too long. Statements and promises have also their limits, and they lack charm and appeal if repeated for too long.

http://www.dawn.com/2007/02/26/local25.htm


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## Introvert

*A 1000-acre cargo complex will be built in Karachi: DG CAA *​
KARACHI: Civil Aviation Authority (CAA) would be spending an enormous amount of Rs50 billion for the development of cargo infrastructure here.

CAA Director General (DG), Farooq Rahmatullah told that a cargo complex spanning over an area of 1000 acres would be built here, which would comprise of logistic centre, aircraft parking base and the refrigeration storage facilities.

He said that the hotel, shopping mall, apartments and other facilities would be constructed in the next six months at the Karachi and Lahore airports under public-private partnership with an outlay of $4.5 billion on this project.

He further said that the aviation policy would be keeping provisions for special incentives as regards the launching of small planes and helicopter services in the backward and northern areas of the country.

CBR chairman, Abdullah Yusuf on this occasion told that a 10-year plan for raising the tax rate has been prepared. He said that the customs duty income has declined due to the lesser imports, while the income tax and sales tax revenues have increased and thus the CBR revenue targets have surged by 25 percent. 
http://www.geo.tv/geonews/details.asp?id=2720&param=3


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## Neo

*Air Arabia set for Karachi, Peshawar flights *

ISLAMABAD (February 27 2007): Air Arabia has announced its flights' schedule for its two new destinations in Pakistan.Inaugural flights will take off on March 4 and 7 to Karachi and Peshawar respectively, private TV news channel reported. "Air Arabia is proud to add Karachi and Peshawar to its destinations," said Air Arabia chief executive officer Adel Ali.

"We are confident that adding these two destinations can effectively cater to the large number of the Pakistani community living outside Pakistan and to offer an alternative cost effective travel for customers in Pakistan," he added.

Air Arabia's main focus is to make air travel more convenient through Internet booking and offering the lowest fares in the market without sacrificing on service or safety standards.

http://www.brecorder.com/index.php?id=532991&currPageNo=2&query=&search=&term=&supDate=


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## Neo

February 28, 2007 
*CNG-based transport in five years: CDWP approves 40 projects*

By Khaleeq Kiani

ISLAMABAD, Feb 27: The Central Development Working Party (CDWP) on Tuesday approved an ambitious programme to introduce CNG-based public transport system in all major cities in five years. The project is aimed at replacing the existing diesel vehicles with CNG buses.

The government will provide Rs5 billion to partially offset interest costs of loans companies may need from banks to put in place the required infrastructure and purchase buses.

Deputy Chairman Planning Commission Dr Akram Sheikh presided over the CDWP meeting which approved 40 development schemes worth Rs16.6 billion, including revisions and cost overruns of 10 projects. Out of the 40 schemes, 21 worth Rs9.6 billion are in the infrastructure sector, 14 projects of Rs4.7 billion in the social sector and the remaining five in other sectors.

The projects approved include Rs1.9 billion President MusharrafÃ¢â¬â¢s initiative to provide scholarships to 5,500 students of Balochistan and Fata for education in top institutions in the country.

Briefing the media, Planning CommissionÃ¢â¬â¢s spokesman Mohammad Asif Sheikh said that since CNG buses were normally expensive, the government would share the interest portion of loans to enable the private sector to establish companies with not less than 50 CNG buses.

Member (infrastructure) Dr Asad Shah told reporters that an inter-ministerial steering committee had been constituted to work out operational details of the project.

He said that about 500-600 CNG buses will hit Karachi roads early next financial year, followed by Lahore, Peshawar, Quetta and Rawalpindi-Islamabad.

The provincial governments will provide land for parking and related requirements to these companies on lease to reduce initial costs.

Planning CommissionÃ¢â¬â¢s spokesman said that under the presidentÃ¢â¬â¢s programme, 3,300 students from Balochistan and 2,200 from Fata would be provided scholarship for getting education in public and private sector colleges and universities. Twenty per cent of these scholarships will be reserved for girls but there will be no bar if the number of female students goes up.

Mr Asif Sheikh said the CDWP approved a project worth Rs1.2 billion to set up 10 provincial coordination centres and 40 regional surveillance units to control bird flu, and to strengthen poultry laboratories all over the country.

He said the government was able to release 42 per cent (Rs90 billion) of the Rs213 billion Public Sector Development Programme during the first six months of the current year. Of this, Rs88 billion was utilised by line ministries and the pace of utilisation was better than last year.

http://www.dawn.com/2007/02/28/top2.htm


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## Neo

*ADB funding to be sought for Rs 22 billion Faisalabad Motorway *

ISLAMABAD (March 01 2007): Pakistan has decided to approach the Asian Development Bank (ADB) for funding the Rs 22 billion Faisalabad-Khanewal Motorway (M-4) project, as the Malaysian government has categorically refused to undertake the project on BOT basis.

Sources in the Communications Ministry told Business Recorder that Malaysian government's refusal has taken the concerned authorities back. Pakistan and Malaysia had signed a Memorandum of Understanding (MOU) for construction of the 184 km long Faisalabad-Khanewal Motorway at an estimated cost of Rs 17 billion.

The Malaysian government had once again renewed its pledge to make M-4 project, but it was not ready to construct the highway on BOT basis. After talks, Pakistan government was optimistic that the Malaysian side had reviewed its decision and was willing to undertake the project.

Sources said that the Malaysian side even at that time was reluctant as it believed that the project was not viable. Interestingly, there has been an increase of Rs 5 billion in the estimated cost of the project, that now stands at Rs 22 billion.

When contacted, Communications Minister Shamim Siddiqui confirmed that Pakistan government had approached the ADB to seek financial help for the project.

He said they were going to meet ADB officials in July to arrange Rs 22 billion funding for the motorway. He said that Malaysian authorities were not willing to BOT option as they believed it was not financially viable for them. He dispelled the impression that it was some kind of 'backtrack', saying that they had showed inability due to financial constraints.

The Minister said that still there would be a Malaysian contractor who would construct the 184-km road. The plan is to construct Faisalabad-Khanewal Motorway in four years time. It would have four lanes, with the provision of upgradation to six lanes.

The designed speed limit on the M-4 will be around 120 miles/hour. There would be 25 bridges, two major bridges, 85 subways, 436 culverts, 42 flyovers and five service areas. The plan has seven interchanges--at Faisalabad, Painsara, Gojra, Toba Tek Singh, Shorkot, Abdul Hakeem and Khanewal.

http://www.brecorder.com/index.php?id=533683&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Rs 7 billion allocated for Nullah Leh Expressway: Rashid *

RAWALPINDI (March 01 2007): Railway Minister Sheikh Rashid Ahmed has said the government has allocated Rs 7 billion for the Expressway being constructed on both sides of Nullah Leh.

"The expressway and super flyover from Mareer Chowk to Faizabad costing Rs 6 billion would help resolve traffic problems in the city", the minister said while addressing women councillors of the Rawal Town here on Wednesday. Rawal Town Nazim Sh Rashid Shafique was also present on the occasion.

He said the formal inauguration of the expressway project will be held on March 23 and work on this project would be started at five points to complete the project at earliest.

The minister said that 22-km-long expressway would end the persisting traffic problems. He said the work on super flyover from Mareer Chowk to Faizabad would also be taken into hand soon to decrease traffic pressure on Murree Road.

Sheikh Rashid Ahmed said the work is underway to run the mass transit train in Rawalpindi besides a shuttle service between twin cities of Rawalpindi and Islamabad.

http://www.brecorder.com/index.php?id=533724&currPageNo=3&query=&search=&term=&supDate=


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## Neo

Thursday, March 01, 2007 

*Ã¢â¬ËRs 77b being spent on roads in BalochistanÃ¢â¬â¢*

ISLAMABAD: Prime Minister Shaukat Aziz said on Wednesday that the federal government was spending approximately around Rs 77 billion on the construction of 4,300 kilometres of roads in Balochistan, and of the total sum, Rs 6 billion would be spent during the current financial year. 

http://www.dailytimes.com.pk/default.asp?page=2007\03\01\story_1-3-2007_pg7_34


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## Neo

*CNG-based public transport*

MUCH can be achieved with the right political will and the commitment to see a project through from the planning to the implementation stage. The Central Development Working Party, an inter-provincial ministerial forum, approved 40 development schemes on Tuesday, among them a much-needed programme to convert public transport to CNG in five years. The project covers all major cities and includes government support to offset infrastructure and bank loan costs incurred by companies investing in large CNG-based fleets. Land for parking and other requirements will also be leased out by the government to reduce start-up costs. These are healthy incentives as CNG buses are more expensive than their diesel counterparts and the higher costs involved can be a deterrent even for major transporters. If successful, the scheme can have a positive impact on air pollution Ã¢â¬â the example of New Delhi is there for all to see Ã¢â¬â and also help reduce the countryÃ¢â¬â¢s oil import bill.

The key, though, will be implementation. Last year, the Sindh government set a June 2007 deadline beyond which two-stroke rickshaws would not be allowed on the roads anywhere in the province. With the cut-off point just four months away, little progress has been made in terms of the switch over to four-stroke engines and it is too much to expect that rickshaws will simply disappear from July 1. The same is true of Lahore, where two-stroke rickshaws are to be phased out by the end of the year. There is a danger that the CNG scheme too may fizzle out and, as such, periodic review and follow-up are a must. In the meantime, the authorities need to tackle the air pollution problem through tighter fuel standards and emission controls, scrupulous fitness certification regimes, and a crackdown on poor quality smuggled petrol and diesel.

http://www.dawn.com/2007/03/02/ed.htm#3


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## Janbaz

*Musharraf for fast PR uplift, trains with 300km/hour speed *


ISLAMABAD (updated on: March 03, 2007, 17:50 PST): President General Pervez Musharraf on Saturday called for fast development of the Pakistan Railways on modern lines to provide economical travel to the people, swift movement of goods and to create linkages with neighbouring countries.

"We need to be ready for the future and plan for trains that can travel to 300 km an hour and divert road and air travellers to use this efficient mode of travel," he told a gathering here at the Golra Railway Station after inaugurating museum of Pakistan Railways.

The president stressed that the pace of improvement need to be further enhanced. "We have to catch up fast," he said and directed the Railway authority to prepare for the challenges ahead.

He said the current target of increasing speed of trains up to 140 km/hour was not enough. "Today the world is moving on to magnetic levitation trains and monorails for mass transport, we need to go for these," he added.

The president referring to his vision for the Pakistan Railways spoke of plans to link Chamman to Kandahar in Afghanistan and to build an ambitious rail track from Havelian to the Khunjerab Pass to connect with the Chinese mainline.

"Both the governments of Kyrgyzstan and Kazakhstan have expressed desire to join this rail link as it will provide them an access to the Gwadar Port," he said.

The president said new rail tracks were also being developed between Gwadar and Quetta, Peshawar and Zhob and Bostan and Zhob, besides the dualisation of the Karachi-Peshawar mainline.

The president also called for moving on to the standard gage and said currently the meter and broad gage were being used that led to import of expensive Rolling Stock and Wagons that need to be converted.

President Musharraf also called for hastening the pace on provision of mass transport system for Karachi, Lahore and Rawalpindi/Islamabad and said it could be later emulated in other major cities.

Business Recorder.
http://www.brecorder.com/


----------



## Janbaz

*Railway track to be laid from Chaman to Kandahar, says Musharraf *

CHAMAN: President Pervez Musharraf underlined Saturday the need for modernising the railways in order to providing inexpensive, efficient and comfortable travel facilities the people. 

Speaking after inaugurating the Railway Heritage Museum at Golara Sharif Station here Saturday, the President said that the country needs to catch up with the developed world on fast track basis as the railway provides the cheapest mode of travel to the people. 
President Musharraf said railway, the primary mean of travel for the common man would be provided required finances to carry out its modernization. 

The President said the mass transit system especially in big cities in Karachi, Lahore, Rawlapindi and Islamabad and other cities as well. 

He said we must go for the mass transit system in order to remove the choking of the roads. 

He said by removing the bends along the rail tracks would further bring down the distance between various destinations. President underscored that the entire railway system needs to be converted from the existing meter gauge and broad gauge into modern standard gauge. 

He said by switching from meter gauge and broad gauge to standard gauge would make the rail travel faster and efficient. The President said the imported railway wagons have to be converted from standard to broad gauge which incurs extra cost. 
The President said that the developed world has gone one step further ahead and is using magnetic system. In the mass transit system they are using mono rails and Pakistan is no where near these systems. 

He said we must move forward through applying modern and improving the speed of the rails from hundred and forty kilometers to three hundred kilometers. He said the trains in the world have even achieved four hundred kilometers and trains in Pakistan run at just hundred and forty kilometers which is unacceptable for a progressive nation. 
President said we have no time to lose as we a nation in hurry to catch up fast with the advances the world is making and railway is the area where the focus is needed. 
The President said the government would support all endeavours of the Ministry of Railways to upgrade the rail network for the sake of the people of the country so that they switch over to railways from road transport and even the air travel. 

listing the futuristic plans of expansion for railways, President Musharraf said that plans are underway to link their country with other regional countries of the region. He said Chaman would be connected with Kandahar via Spin Boldak and futuristically country could be linked with China through Khunjerab Pass which would facilitate travel from all the Central Asian Republics. 

Kazakhstan and Kyrgyzstan have shown the desire to utilize this railway line for access to the sea. He said Gwadar would be connected with Quetta through a new railway line and Peshawar with Zhob via Bannu and Dera Ismail Khan. He said plans are afoot to introduce broad gauge from Bostan to Zhob.

Geo TV.
http://www.geo.tv/geonews/details.asp?id=2914&param=1


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## Neo

The track has been in the pipeline for over three decades and I'm still not convinced that we'll build it now.

The region is way to instable, transport by road is often attacked and looted by robbers and terrorists. 

But it will boost regional trade when the border becomes stable.


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## Janbaz

*Infrastructure financing to enhance public debt *

By Mehtab Haider

ISLAMABAD: Pakistan&#8217;s public debt is set to increase in coming years owing to borrowing requirements for financing the upcoming bigger infrastructure projects in the next decade, said Fiscal Policy Statement 2006-07 issued by Ministry of Finance on Saturday.

&#8220;Although public debt is now on a solid downward footing, sustaining the momentum will be a continuing challenge,&#8221; the report states. The coming years, the report said, will see an increased borrowing requirement particularly in the foreign currency component to finance the infrastructure development program. The large infrastructure projects envisaged in the next decade will increase the debt burden if sufficient revenues are not generated from within the country.

The report says as a result of slower pace of growth in pubic debt as against GDP growth rate, public debt as a percentage of GDP has continued its declining trend. Public debt as share of GDP fell from 61.5 percent at the end of June 2005 to 56 percent at the end of June 2006, which is similar to the level of debt during the 1970s.

In another report of Debt Policy Statement, the finance ministry states at the end of FY06 total domestic debt stood at Rs2,312 billion which is 30 percent of GDP. The net increase in domestic debt was Rs153 billion from end of FY05 where domestic debt was Rs2158 billion. This represents a growth rate of 7.1 percent, which is slightly higher than the average growth rate since FY00 of 6.6 percent.

Therefore, a supportive yet prudent fiscal policy based on principles of sound macroeconomic fundamental is crucially important to lead the country to a higher growth trajectory.

Fiscal consolidation has undoubtedly contributed to a sharp recovery in economic growth within a stable macroeconomic framework. Every effort will be made to continue to improve the fiscal balance, notwithstanding the pressure generated by the earthquake of October 2005. Revenue performance on the other hand is better than the target and will help ease some pressure on the earthquake-related spending.

Going forward, Pakistan will have to allocate substantially large resources for strengthening the country&#8217;s physical and human infrastructure to sustain the growth momentum. The challenge will be to significantly enhance Pakistan&#8217;s tax-to-GDP ratio in order to generate the resources required to finance the development of both human and physical infrastructure.

The government, the report said, will therefore, have to make efforts to broaden the tax base i.e. to hitherto untaxed or under taxed sectors. Broadening of tax base will enable the government to reduce marginal tax rates, which will help further stimulate investment and production and will promote voluntary tax compliance.

Broadening of tax base will also ensure the fair distribution of the tax burden among various sectors of the economy. The overall services sector including wholesale and retail trade as well as agriculture sector needs to be fully taxed.

Total revenue for the fiscal year 2006-07 is estimated at Rs1163.0 billion as against Rs1,087.0 billion in the previous year (2005-06) thus projecting a growth of 7.0 percent. Tax revenue, accounting for 76.1 percent of total revenue is targeted at Rs885.7 billion, which is 15.5 percent higher than last year. Tax collection by the Central Board of Revenue (CBR) is targeted at Rs835 billion and accounts for 94 percent of the total tax revenue. The CBR tax collection is projected to rise by 17.0 percent over last year.

During the first quarter (July-September) of the current fiscal year (2006-07) total revenue amounted to Rs255.7 billion as against Rs236.6 billion in the same period last year, thus registering an increase of 8.1 percent. Tax revenue stood at Rs191.6illion, which is 20.9 percent higher than the corresponding period of the last year. Similarly, non-tax revenue amounted to Rs64.0 billion and declined by 10.7 percent in the same period. CBR tax collections are important component of tax collections and account for lions share in overall tax collection.

The Government is moving ahead on its agenda to improve expenditure management and fiscal transparency. The New Accounting Model (NAM) has been used for 2004-05 federal budget. However, because of capacity constraints at the provincial level the NAM is used in parallel with the existing model except only in the North West Frontier Province (NWFP), while implementation in other provinces will take some time.

The overall fiscal deficit is targeted at Rs373 billion or 4.2 percent of the projected GDP. On the basis of the developments on revenue and expenditure front, the overall fiscal deficit during the first quarter (July-September) stood at Rs86.7 billion or 1pc of GDP.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=45358


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## Janbaz

*Govt to invest Rs400bn on highways, motorways *

By our correspondent

KARACHI: Communications Minister Shamim Siddiqui said on Saturday that the Ministry of Communications was going to invest Rs400 billion on new roads, highways and motorways and widening and repair of the existing ones.

Speaking to reporters after inauguration ceremony of worldcup.cricpoint.com at a local hotel, he said these projects involve investment of Rs400 billion. The most important of these projects is the Karakorum Highway, which provides connectivity with China and would be completed at a cost of Rs65-70 billion.

He said the motorway had been completed up to Faisalabad and now work would be started to extend it from Khanewal to Sukkur. By 2014 it would be connected to Karachi, he said. He said work was going on the road from Karachi to Peshawar to make it a four-lane road.

He said the construction of road from Gwadar to Khushab to Sohrab would be undertaken at a cost of Rs22 billion. A road is being built from Khuzdar to Rato Dero at a cost of Rs12 billion. The RCD Highway was being upgraded from Hub to Chaman.

Earlier, the website constructed by the team of Kalpoint.com, a commercial venture of Kalia Group was inaugurated. Speaking to the inauguration ceremony Shamim Siddiqui praised the efforts of Kalia Group in taking Pakistan to the map of IT world by establishing a software house and educating the youngsters of the nation in IT.

Veteran Urdu commentator Muneer Hussain praised the efforts of Hanif S. Kalia for bringing innovative ideas to serve the nation. General Manager Kalpoint.com Umair Ahmed Khan said the website will not only hold latest news but also world cup history, reviews, views, schedules, venues, etc. He said that one of the features of the website is online desktop and full scorecard.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=45363


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## Janbaz

*'Efforts on to bring prosperity in Balochistan' *

ISLAMABAD (March 04 2007): The government is making efforts to convert Balochistan into a developed province, the spokesman of Balochistan government, Raziq Bugti, said on Saturday. Talking to PTV, he said that the government had started several development projects in the province, and majority of Balochistan people are in favour of progress and prosperity of the province.

Most of the projects would be completed by the end of 2008, to be helpful in government's bid to bring the province at par with the rest of the country, he said. He said that Gwadar port project has provided employment opportunities to hundred percent locals. It has increased economic activities there. A few years ago there were only 800 boats. The number has already swelled up to thousands recently, the spokesman added.

Business Recorder.
http://www.brecorder.com/index.php?id=534791&currPageNo=1&query=&search=&term=&supDate=


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## Neo

*Super Highway to be converted into sisx-lane Motorway *

ISLAMABAD (March 05 2007): The Karachi-Hyderabad Super Highway will be converted into six-lane Motorway (M-9) within two years, sources in National Highway Authority (NHA) told APP on Sunday. They said the road would form part of a wider network connecting the principal and populous cities of the country.

The project will cost Rs 6.3 billion and the scope of work includes expansion of the road from four to six lanes and provision of service areas. They said that the Authority had signed a concession agreement for construction of the 136 km M-9 with Standard Construction in September last year, but there had been some objections over approval of the project.

However, on January 16, 2007, after a comprehensive briefing by the NHA on this project the National Highway Council (NHC) approved the project. M-9 will be the country's first major project to be built on 'build, operate, transfer' (BOT) basis, whereby the contractor would construct the project and operate it for 25 years, before handing it over to the government.

http://www.brecorder.com/index.php?id=535310&currPageNo=1&query=&search=&term=&supDate=


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## Neo

March 08, 2007 

*Pakistan to build fourth port after Gwadar*

ISLAMABAD: The government plans to build another port after it completes the Gwadar deep sea port in Balochistan, Federal Minister for Ports and Shipping Babar Ghauri told reporters on Wednesday. 

Ghauri, after a meeting with the British high commissioner to Pakistan, said the site for the new port would be decided soon. It would also be a duty-free port like Gwadar. He said the proposed fourth port would be an important addition to the countryÃ¢â¬â¢s trade infrastructure after the Karachi port, Port Qasim, and Gwadar. He said that the first cargo vessel would reach the Gwadar port in the third week of March and it would be a Ã¢â¬Åhistoric momentÃ¢â¬Â. He hoped that Gwadar would become a major platform for the countries of Central Asia and the Middle East. 

The minister said Gwadar would be made a Ã¢â¬Åhub portÃ¢â¬Â with the assistance of Singapore. Big ships would bring commercial cargo containers to Gwadar, and than these containers would be transported to Karachi, Port Qasim, Iran and Bangladesh via small vessels. The Gwadar Port Energy Zone would be open to investors from all countries and Pakistan is pursuing the project to become an Ã¢â¬Åenergy corridorÃ¢â¬Â in the region, he said in his meeting with the British high commissioner. 

http://www.dailytimes.com.pk/default.asp?page=2007\03\08\story_8-3-2007_pg7_19


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## Janbaz

Excellent news about the fourth port though i wish we had a bit of coastline on our east or west instead all sputtered in the south. Well, ill be content with what we have!


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## Neo

Our coast line is just fine, all we need to do is improve the infrastructure and develop more dry ports to facilitate export oriented bussiness. 

Gwadar should get a rail link with Quetta, Karach Port Qasim, Multan, Lahore, Rawalpindi, Peshwar and Chitral and should also be linked to Qandahar and Zahidan.

Rail track between Gwadar and Karach PQ would automatically link Pasni, Jivani and Ormara via Bela and Hub. 
There's an excellent trade corridor. Once this is realised more cities will be developped near the coastline.


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## Janbaz

Neo said:


> Our coast line is just fine, all we need to do is improve the infrastructure and develop more dry ports to facilitate export oriented bussiness.
> 
> Gwadar should get a rail link with Quetta, Karach Port Qasim, Multan, Lahore, Rawalpindi, Peshwar and Chitral and should also be linked to Qandahar and Zahidan.
> 
> Rail track between Gwadar and Karach PQ would automatically link Pasni, Jivani and Ormara via Bela and Hub.
> There's an excellent trade corridor. Once this is realised more cities will be developped near the coastline.



Q: How come these beach loving westerners don't visit the Pakistani south? Marvelous beaches' and coastline. Taliban and insurgents live far to the north. I wonder.....


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## Neo

Janbaz said:


> Q: How come these beach loving westerners don't visit the Pakistani south? Marvelous beaches' and coastline. Taliban and insurgents live far to the north. I wonder.....



Lack of alcohol and western standards entertainment facilities.

Read this article by Angela Williams. I've met her on two occaissions, she's written a lot about Pakistan. Her opinion matters to me:

https://defence.pk/forums/showpost.php?p=53531&postcount=28


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## Neo

*Railways improves 5993 kms rail track in five years *

ISLAMABAD (March 11 2007): The Pakistan Railways has improved 5993 kilometres railways tracks in addition to 7717 kms. old age sleepers in the past five years, the NA standing committee on Railways was informed on Saturday. Sardar Tufail Ahmad Khan, the standing committee chairman, presided over the meeting held in the Parliament House on Saturday.

The meeting also discussed the recurring number of train accidents and derailment in the past resulting in loss of many lives in the past. In that regard, the Railways chief engineer, Irfan Gohar, said passenger safety was cared for, and efforts are continuing to improve railway tracks and sleepers. Old tracks that receive constant rolling and delay in maintenance work were one of the causes of derailment..

That notwithstanding, instances of 55993 kms improved track, and refurbished sleepers were cited as an example of improvement underway. In addition, Javed Qureshi, Secretary of the Railway Board outlined the procurement policy of his organisation.

The meeting also discussed the alleged loss of property documents relating to Railway Golf Club, and this matter annoyed Sardar Tufail Ahmad, the committee chairman, who urged strong action against those responsible for the loss of the documents. The meeting offered Fateha for 50 or more Pakistanis who had lost their lives in the Samjhota Express accident, near Panipat, India, early this month.

In another standing committee meeting, that of water and power sector, it was noted that 80 percent of Parliamentarians' electrification schemes have been completed in Multan, while the Hyderabad Electric Supply Company had completed 4203 (out of 4709) within five years (2002-2007).

Wapda Chairman spoke about the progress of recovery in the outstanding dues. Committee Chairman, Ghulam Murata Mailto, MNA, presided over the water and power committee meeting. It may be mentioned here that among more than 70 Standing Committees in the Senate and the National Assembly many are busy assessing the true worth of their respective Ministries before the presentation of the budget. Last month, Speaker National Assembly and the Chair of Standing Committees agreed to strengthen the Parliament through strong committee work.

http://www.brecorder.com/index.php?id=537238&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Underpass at Wireless Railway Gate planned *

KARACHI (March 11 2007): City District Government Karachi (CDGK) is planing to construct an underpass at Wireless Railway Gate to facilitate the general public in the area.

City Nazim Syed Mustafa Kamal said that CDGK would build an underpass at the Wireless Railway Gate with a view to scale down difficulties being faced by the residents of area and general public due to a high volume of train traffic passing through the densely populated area.

Addressing the foundation stone-lying ceremony of the dialysis center at Shamsi Hospital in Malir town on Saturday, he said the CDGK had developed the Abbasi Shaheed Hospital and Karachi Institute of Heart Diseases to facilitate the general public.

On this occasion, MNA Iqbal Muhammad Ali, MPA Abbas Jafri, Nishat Zia, Town Nazim Shah Faisal Town Muhammad Imran, UC nazims, President Foundation Siddiq Solijah and other office-bearers.

In order to cleanse the city from viral epidemics, the city government had adopted a long-term policy to ensure a healthy environment in the metropolis, Kamal added.

He said that CDGK had allocated a huge chunk of funds to healthcare sector to provide each citizen with basic health facilities free of cost at CDGK's healthcare institutions.

He said that CDGK was intending to take necessary preventive measures and in this connection it had undertaken an extensive fumigation spray drive in all 18 towns throughout whole year.

He said that provision of healthcare facility to each citizen was the primary objective of the present local government and it was making efforts to make it possible within available resources.

He said that prior to summer rains, CDGK had now onwards started cleaning storm water drains to avert any flood like situation due to choked drains amid rains, besides eliminating insects breeding in them.

The city nazim apprised that insecticides in a huge quantity had been procured to continue fumigation drive without any interruption in the city. He pointed out that 66 identified drains in the city have been cleared to allow the smooth flow of drain water, in addition insecticides had also been sprayed in them with the help of 650 malaria and other sanitary staff. About 30 vehicles were used for this purpose, he added.

http://www.brecorder.com/index.php?id=537265&currPageNo=2&query=&search=&term=&supDate=


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## Janbaz

*New aircrafts to be added in Pakistan's fleet*

R M Saqib
KARACHI - Pakistani air companies have decided to expand the fleet by purchasing 30 to 40 new aircrafts, said in Pakistan National Aviation Symposium organized by Air blue held at a local hotel here on Monday. 
The participants of the symposium said that Pakistan had an immense potential to boost its aviation industry. The need is to grab this opportunity in this field by increasing the standard and customer services quality. 
PIA SVP Sales Kamran Hassan said that there were about 12 million passengers for Pakistani airlines including 5 million domestic and 7 million international passengers. On the other hand, he was of the view that Pakistani airlines including PIA, Aero Asia and Air blue have a total fleet of just 55 aircrafts which is less than they need while India have 240, China 650 and United States have more than 6000 aircrafts. He added that this fleet would be increase to 100 aircrafts by getting more planes on lease and purchase. He pointed out that Pakistani airlines had a good share of international market, which can easily be augmented. &#8220;PIA has acquired ATR-42 airplanes and is also planning to increase its B-777 fleet to 12 while replacing B-737 airplanes&#8221;, he added. He also said that PIA, the only public airline of the country, would also use Visit Pakistan-2007 year to boost tourism in the country. He revealed that airline was also planning to resume flights for Shanghai, China soon. He also expected the increment of 5 percent per annum cargo traffic in coming five years. 
Director Commercial Air blue Syed Nasir Ali said that Pakistan with its unique geographic and demographic conditions and being first to liberalize aviation industry in the region had strength in this sector to grow more emphatically. 
He pointed out that out of 55 aircrafts altogether, Pakistan had just 20 new generation aircrafts while the older ones were more fuel consumers thus more expensive. He mentioned that for more sustainable growth in this sector, 30 to 40 wide body aircrafts would be added beside 60 to 80 Single-Aisles aircrafts to cater the expected 20 millions passenger market in coming future. 
Air blue Chief Operating Officer (COO) Shahid Khaqan Abbasi said that the symposium was first of its kind in Pakistan and was aimed to introduce new ideas and bring innovativeness in the Aviation Industry of Pakistan. He added that the aviation industry was witnessing positive prospects and was vibrant one.
Shahid Khaqan said that Air blue was expanding its network to Europe and Middle East and it was expected that the airline would maintain 40 to 50 percent growth rate per annum. 
Civil Aviation Authority (CAA) Director Traffic Tahir Ahsan Malik said that the liberalization of the aviation sector combined with the arrival of new air companies in Pakistan would improve the competition in market and it would not impact the share of already existed national airlines in negative aspect. 
He maintained that most of the Pakistani airlines were mainly stuck to the Middle East destinations and they must have to extend their business by adding the destinations of Europe, North America and Far East as there was vast capacity available there. 

The Nation.
http://www.nation.com.pk/daily/mar-2007/13/bnews9.php


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## Neo

*Shaheen inducts new aircraft *

KARACHI: Shaheen Air International has purchased fifth Boeing 737 aircraft, which arrived at the Karachi Airport on Tuesday, said a press release issued here. A spokesman for the airline said Shaheen Air has purchased the fifth B-737 aircraft with 120-passenger seat capacity from an American company. With the induction of fifth aircraft, the airline is aiming to expand its existing operations within Pakistan and Gulf and also intends to bridge smaller cities with major cities across the country. He said with the acquisition of new aircraft the airline is initially expecting 130 flights per week, throughout its domestic and international network.

http://www.thenews.com.pk/daily_detail.asp?id=46718


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## Neo

*Airblue to offer 25 percent shares to public next year *

KARACHI (March 14 2007): 'Airblue' airline will launch 25 percent shares for initial public offering by next year, said Shahid Khaqan Abbasi, Chief Operating Officer of the airline. Talking to newsmen at a lunch hosted by Yahya Polani, CEO, Polani Travel, and Rafiqe Bukhari, CEO, Bukhari Travel.

He said that 'Airblue' was planning to issue IPO, for general public, with a view to financially strengthen the airline. He said that during last three years, Airblue sales were around Rs 3 billion.

Earlier, addressing the travel agents, he said that Airblue has been providing quality services, in line with international standers, both on ground and in the sky. "Airblue is a 100 percent Pakistani airline, and functions with the help of local staff, including pilots," he added.

He said that Airblue's first flight to Manchester from Islamabad would be on June 1, and added that "initially, we will operate four flights weekly, and later it will be extended to seven flights a week".

He said that Airblue's annual growth rate was around 80 percent, improved during the last three year. However, this increasing growth was likely to decline in future by 30 percent to 40 percent, particularly during next year.

He said that despite all difficulties, Pakistan's air travel industry was growing on fast track and, as per Iata forecast, the industry's growth rate would be around 7.4 percent. Nasir Ali, Director, Marketing, Airblue, said that travel agents "are the backbone of the industry" and they had played a vital role in the success of Airblue.

He said that Airblue had started operations three years back, which has become the fastest growing airline of Pakistan. "Airblue introduced online booking facility and discount system for the first time in Pakistan to facilitate the passengers," he added.Yahya Polani, Rafiqe Bukhari, Haji Masood, Jameel Sakrani and Sufvan Polani also addressed the gathering.

http://www.brecorder.com/index.php?id=538104&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Rs 600 million allocated for construction of roads: Kamal *

KARACHI (March 18 2007): Karachi City Nazim Mustafa Kamal has announced to undertake construction of roads at a cost of Rs 600 million, soon after completion of the water and sewerage projects currently being executed in the metropolis.

He said that the incumbent City District Government of Karachi (CDGK) had taken up the water crisis issue seriously and initiated several water and sewerage projects. He said that laying new water pipelines at estimated cost of Rs 60 million and reconstruction of roads with Rs 600 million was in full swing in the city.

Talking to newsmen after inauguration of the water and sewerage projects on Friday, he said that the CDGK would resolve all outstanding water and sewerage issues faced by the residents of Gulistan-e-Johar by the end of current year.

On this occasion, additional vice-chairman and MPA Imamuddin Shahzad, Gulshan Town Nazim Wasay Jalil, UC nazims and naib nazims besides scores of area residents were also present.

The City Nazim observed that Karachiites were facing water problems for the last 30 years. He expressed hope that these would be resolved on priority basis. "Development of civic infrastructure is CDGK's prime policy," he added.

At present, laying of water and sewerage lines is underway. These include the sewerage pipelines of 8-in, 12-in, 15-in, 18-in and 24-inch diameters," he added. These different diameter lines are being laid from Pehalwan Goth to Sumam Shopping Centre and Johar Bridge to Johar Chowrangi.

http://www.brecorder.com/index.php?id=539734&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*'Work on KCR to start soon': Japanese firm to invest $800 million *

KARACH (March 20 2007): Karachi City Nazim Mustafa Kamal has said that the Karachi Circular Railway (KCR) system would be initiated through a Japanese firm's $800 million investment, and the project would be completed in two-and-a-half years.

He said that the proposed project had been in doldrums for past several years, but now it would be completed well before its stipulated completion span of 8 years, and would be initiated soon.

He said this in a meeting on Sunday at his secretariat with Shane Rosenthal, Urban Economist of Asian Development Bank regarding Karachi Circular Railway development. On this occasion, Karachi DCO Fazlur Rehman, Coordinator Karachi Mega City Development Projects Roshan Ali Shaikh, and head of consultant team Jim Arthur were also present.

Kamal said that the plan for development of Karachi Circular Railway system had been finalised in consultation with the federal government. He said that several important civic projects could not be undertaken by the incumbent CDGK due to lack of funds. "However, all such projects remained uninitiated for funds unavailability to be incorporated in the Asian Development Bank's Karachi Mega City Development Project (KMCDP) to resolve the public problems," he added.

He said that CDGK was also planning to construct expressway on Malir River to provide the citizens with many travelling corridors in the city.

He said that a treatment plant at Gujjar nulla would also be set up, and added that a road would also be constructed at the nulla to scale down the increasing vehicular traffic congestion in the area.

The Nazim said that to meet the increasing electricity demand in the city, the CDGK was signing MoUs with private firms to overcome the power generation crisis.

"Around 800 CNG buses will be introduced to minimise the pollution in the city and to facilitate the commuters," he said. Rosenthal said that the first instalment of ADB's fund for KMCDP would be released soon so that CDGK could initiate the uplift projects.

http://brecorder.com/index.php?id=540827&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*First phase construction of fly-over approved *

RAWALPINDI (March 20 2007): The Punjab government has approved first phase of the fly-over construction from Mall road to Chandni Chowk fly-over, Murree road, said Brigadier Pervaiz Mehmmood Khan (retd), Director General, Rawalpindi Development Authority (RDA) on Monday.

In second phase, he said, the fly-over would be connected to Nullah Leh Expressway at different points wherever it would be feasible, he said while talking to newsmen.

He said the RDA had prepared PC-II of the elevated fly-over project. These two mega projects of Nullah Leh Expressway and fly-over would form an internal loop of routes around the city that would end traffic problems, he said.

He said the government has earmarked Rs 25 million for feasibility study and detailed designing of the fly-over project on Murree Road and the initial paperwork has been started to be completed in six months time, he said.

He said proposals are under consideration to complete this mega project in different phases. In first stage, it would be constructed from Mall road to Liaquat Bagh and then to Chandni Chowk. The contract for each phase may be awarded to different companies, he added.

http://brecorder.com/index.php?id=540800&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Air services between Pak-India to be increased soon *
Tuesday March 20, 2007 

NEW DELHI: Air services between Pakistan and India will be increased soon in order to improve cross border travel facilities and people to people contact. 
An Indian based private News Agency revealed that Aviation Officials of the two countries are expected to meet shortly to discuss the issue. 

An understanding for the meeting was reached at Foreign Secretary level talk in Islamabad five days back. 

It added that at present Indian Airlines operates one flight a week from Delhi to Lahore while Pakistan International Airlines PIA has four flights a week. 

PIA is also plying between New Delhi-Karachi and Mumbai Karachi. Now the two sides will try to work out at least seven flights a week. 

They will also discuss the possibility of adding places for air link.

http://www.paktribune.com/news/index.shtml?172478


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## Neo

Wednesday, March 21, 2007 

*Sofitel Tower for Clifton*

KARACHI: Prime Minister Shaukat Aziz will be the chief guest of the groundbreaking ceremony of a 27-story hotel today (Wednesday) at Governor House. 

A special meeting of Cantonment Board Clifton was held Tuesday to consider the approval of the architectural drawings of Sofitel Tower at the old Mideast Hospital Clifton site. The meeting was chaired by Cantonment Board President Brigadier Kamran Aziz Qazi and was attended by Khawaja Iftikhar Ahmed Mir, CEO, and representatives of DHA, Pakistan Navy, and sponsors/owners of Sofitel Tower along with their technical team.

A presentation was given by traffic engineer Farooque Umar on issues raised by the Cantonment Board Clifton at an earlier meeting. After detailed deliberations and discussions the board unanimously resolved to provisionally approve the architectural drawings subject to the provision of an NOC from the CAA for height clearance, the Pakistan Navy from the security point of view and SEPA from an environmental point of view. The Sofitel Tower, to be completed in three years, comprises five basements and a six-story shopping mall.

PPI adds: Sindh Minister for Industry and Trade Muhammad Adil Siddiqui said on Tuesday that a large number of foreigners were moving to Karachi which had created a dire need for such a hotel in the city where more and more international industrial and trade exhibitions were being held. When these events take place, the cityÃ¢â¬â¢s hotels are all over-booked and more were needed to reduce pressure on the existing ones.

http://www.dailytimes.com.pk/default.asp?page=2007\03\21\story_21-3-2007_pg12_1


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## Neo

Saturday, March 24, 2007 

*Restoration of road networks requires Rs 6 billion per annum*

LAHORE: Long-term asset management analysis indicates that restoration of existing road network conditions to an acceptable level requires annual expenditures of approximately $100 million or Rs 6 billion, said a report available with Daily Times. 

Such costs, added the report, could be decreased if a comprehensive pavement preservation program is designed and implemented.

The economic managers of the country have agreed in the Economic Survey of Pakistan 2005-06 that despite the high returns from infrastructure investment, fiscal stresses resulting in high level of public indebtedness rendered public sector investment in infrastructure rather difficult. While the need for access to good quality, reliable and affordable infrastructure is universal in developing countries, the under-investment in this critical area resulted in large infrastructure gap. High growth in developing countries including Pakistan is placing increasing pressure on existing infrastructure.

The survey points out that infrastructure has a central role in the development agenda and is a major contributor to growth, poverty reduction and achievements of the Millennium Development Goals (MDGs).

Many studies have demonstrated that the economic returns to infrastructure investment are high, and infrastructure services Ã¢â¬â especially those contributing to improve investment climate Ã¢â¬â can make significant contributions to the growth of an economy. A strong, efficient and affordable infrastructure is a critical element of good investment climate and therefore, is a precondition to sustain the growth momentum.

It is estimated that maintenance of the existing Pakistani highways will be a massive task, given the limited resources available for infrastructure needs.

The report suggests that the Asphalt recycling Ã¢â¬â a well-tested method in Michigan Ã¢â¬â can transform the road management techniques in Pakistan.

A promising approach that has evolved in recent years has been that of the roadway recovery concept, better known as recycling, as Asphalt recycling involves the reuse of existing roadway materials in the reconstruction and/or rehabilitation of pavements.Ã¢â¬Â

The materials present in old asphalt pavements have residual value even when the pavements have reached the end of their service lives. Recycling recognizes the value of those existing aggregate and asphalt resources through a process known as reclaimed asphalt pavements. 

Transport and Communica-tions are important elements of infrastructure services and are essential in maintaining economic growth and competitiveness. Transport and communication sector in Pakistan account for about 11 percent of GDP, 16 percent of fixed investment, 6 percent of employment and about 15 percent of the Public Sector Development Programme.

http://www.dailytimes.com.pk/default.asp?page=2007\03\24\story_24-3-2007_pg5_2


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## Neo

Saturday, March 24, 2007 

*Etihad increases flights to Pakistan*

KARACHI: Etihad Airways, the national airline of the United Arab Emirates (UAE), has announced five additional flights to destinations in Pakistan for this summer. 

With this increase in frequencies and other schedule adjustments made across the network, swift and convenient onward connections to the airline's fast growing global network will improve dramatically. From 25th March, three flights will be added on the Karachi Ã¢â¬â Abu Dhabi route; whereas a total of 10 flights will be made available with a choice of departure time of 13:10 or 23:00. In August, one more flight will be added, resulting in a daily schedule with double daily flights on Wednesdays, Thursdays, Saturdays and Sundays. 

The Islamabad services will expand with one additional flight, making it a total of 7 flights per week with afternoon and evening departures also available to the guests. The timings of the successful daily Lahore services will also be changed to offer a choice of afternoon and evening departures.

Timings of the Peshawar services have also changed slightly with 2 flights departing every week at 8:30 from 29 March onwards. As a result of the new schedules, connections to Africa and the Middle East will also improve for the Pakistan Guests with additional services added on these routes. 

The growth over the past year has been especially strong: from four weekly flights to in February 2006 to 27 flights and three additional cities. These expansions are the result of putting our customers first and providing them with safe, swift and convenient travel alternatives.

http://www.dailytimes.com.pk/default.asp?page=2007\03\24\story_24-3-2007_pg5_8


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## Neo

*Bids for setting up of five 5-Star hotels invited *

ISLAMABAD (March 25 2007): Pakistan Railway has invited bids or expression of interests (EOIs) for setting up of five 5-star hotels or luxury apartments or commercial ventures in four major cities of the country including Karachi, Multan, Rawalpindi and Lahore.

"Pakistan Railway intends to develop the real estates for construction of 5-star hotels/luxury apartments/commercial venture to cater to the growing demand of business community and upward trend in the socio-economic activities in country," a spokesman of Railway Ministry told APP here on Saturday.

He said applications for EOIs for joint venture or bidding documents for straight lease in sealed cover indicating property name applied for should be submitted separately on or before June 25 till 11am.

Applications received after this date and time shall be returned unopened, he added. All bids for straight lease option will be opened by the nominated committee on the same day at 11:30am in the presence of bidders or their representatives in the office of the Director Marketing, Pakistan Railways, Burt Hall, Allama Iqbal Road, Lahore.

Giving details about available sites for the joint ventures or straight lease, he said, vacant Pakistan Railway Land and Kalapul Main Korangi Road, Karachi measures 11 acres and another property opposite Karachi Club, Dr Zia-ud- Din Ahmed Road, Karachi measuring 3.84 acres are available.

In Rawalpindi a plot measuring 5 acres is available on Railway Station Road, Rawalpindi and in Multan plot measuring 4.5 acres is available on Main Bahawalpur Road, Multan Cantt. He said in Lahore, land for building one or two 5-Star hotels in Mayo Gardens Colony, Lahore at 3 plots collectively measuring 13 acres are available. He said Pakistan Railway is keenly interested to offer these properties on Joint Venture Project (JV) on straight lease basis for a period of 99 years.

http://www.brecorder.com/index.php?id=542830&currPageNo=2&query=&search=&term=&supDate=


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## Janbaz

*Musharraf lays foundation stone of Lai Expressway*

RAWALPINDI: President Pervez Musharraf Tuesday laid foundation stone of Rs. 16 billion Lai Expressway project in Rawalpindi. 

President Musharraf arrived by a helicopter at historic Liaquat Bagh of Rawalpindi to address a public meeting. 

Railways Minister Shaikh Rashid addressing the public meeting said that President Musharraf&#8217;s policies have guided the country to a respectable place. 

He said that construction of Nullah Lai Expressway would resolve the traffic problem and save loss of human lives from floodwater of Nullah Lai.

Minister of Defence Rao Sikandar Iqbal, other federal and provincial ministers were also present at the meeting. 

People were present in large number at the meeting place and chanting slogans for President Musharraf. Stringent security measures have been taken in the city on the occasion.

The News.
http://thenews.jang.com.pk/updates.asp#20054


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## Neo

*Super Highway Estate uplift work almost over: minister *

KARACHI (March 28 2007): Sindh Minister for Industry, Trade, Transport and Economic, Adil Siddiqui, has said that development work on most modern lines at the Super Highway Industrial Estate, Phase II, has almost been completed.

Addressing members of Federal 'B' Area Association of Trade and Industry (FBAATI) after inaugurating the 4000 kw KECS feeder, he said that plots at this industrial estate were offered at Rs 1.5 million per acre, whereas in Sunder industrial estate plots were much expensive.

He advised the investors to take advantage of this offer and establish industrial units at this industrial estate. He said water is available; sewerage system has been developed; and roads have been constructed, and all power wiring is underground.

He said that besides developing plots a labour colony comprising of 1000 flats, hospital, mosque and school have already been developed. He said that the government is going to invite President General Pervez Musharraf to see the development of this industrial estate.

The minister said that the government has allocated Rs 250 million for KITE Limited, and added that KITE still fails to provide PC-1 of development plan. He said that the government is also willing to provide sufficient amount for the development of Federal B Area Industrial areas to the newly formed F B Area Industrial Estate Development Company.

Adil said that the government also provided Rs 500 million grant to SITE Limited for carrying out development work. He said that the government was making efforts to change the face of Karachi in the next one year. He praised the working of KESC management and said that it had done a good job to improve the working and efficiency of the organisation.

He expressed hope that KESC would complete its ongoing development and upgradation programme by June 2008. KESC Director Operation Adnan Bashir Khan said that the KESC had prepared a plan to meet power demand during the coming summer He said that KESC has installed around 150 to 200 new feeders in the city. Besides, work is in progress on upgrading its entire system.

Welcoming the guests, FBAATI Chairman Masroor Ahmed Alvi said that a number of industrial units had gone out of production in his industrial estate due to high cost of production and unfavourable conditions abroad. He said that the buyers are reluctant to visit Pakistan, whereas Pakistanis face difficulties in going abroad for marketing Pak products due to the image of Pakistan.

http://www.brecorder.com/index.php?id=543927&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Accor launches hotel operations in Pakistan *

KARACHI (March 29 2007): Accor hotels launched operations in Pakistan by opening of its first hotel, the Grand Mercure, Karachi Airport Hotel. The hotel is ideally located, bordering terminal 1 & Star Gate.

The property has state of the art five star facilities with 235 luxurious rooms, all day dining restaurant, coffee shop, health club, swimming pool, full service banqueting, marriage lawns, business centre etc.

The hotel will be an addition to the under-served hospitality market in Karachi. This is the first new five star prime property added in the hospitality sector of Karachi after a long break of over two decades. The hotel will be managed by Accor and is owned by UIG (Pvt) Limited. UIG is a joint venture between JS Group & Qureshi family.

With 160,000 associates in nearly 100 countries, Accor is the European leader in hotels and tourism and the global leader in corporate services. To provide private and business clients with superior service, it leverages nearly 40 years of expertise in its two core activities. Hotels, with the Sofitel, Novotel, Mercure, Suitehotel, Ibis, Etap Hotel, Formule 1, Motel 6 and Red Roof Inn brands, representing more than 4,000 hotels and 475,000 rooms in 90 countries, as well as strategically related activities, notably Lenotre.

Built over four decades, JS Group is one of Pakistan's most diversified and progressive financial services groups. The group has grown from its roots in Pakistan's financial services industry. JS Financial operates market-leading companies in asset management, investment banking, securities brokerage, commercial banking, insurance and trade finance.

The group also includes five vertical businesses: JS Industrial, JS Infocom, JS Property, JS Resources and JS Transportation. The group has offices throughout the major cities in Pakistan and manages its international operations from its London office. The group comprises businesses with over 18,000 employees and net income of over US $150m in 2006.

http://www.brecorder.com/index.php?id=544324&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Pak-China rail link feasibility to be completed this year *

ISLAMABAD (March 29 2007): Railways Minister Sheikh Rashid Ahmed on Wednesday said that feasibility study for developing rail link between China and Pakistan would be completed this year.

Talking to a delegation of a Chinese firm M/s China Industry Railways, he said the rail link, would provide Pakistan and China an ample opportunity to explore vistas in economic and social sectors with European and Central Asian States.

He informed the visiting delegation that the work on Quetta-Kandhar and Taftan-Zahidan sections was already underway that would ultimately give boost to the economic ventures in South Asian region.

The Chinese delegation gave a briefing to Railways Minister and expressed keen interest in supplying fast speed passenger coaches to Pakistan Railways. Sheikh Rashid was apprised that the firm has been supplying coaches to various railways in the European countries besides the Railways of China.

In connection with the Pakistan's proposed plan to run fast trains, the minister was told that the coaches built by the Chinese firm could run between the range of 250 to 300 kilometres per hour which meets the requirement of Pakistan Railways. The delegation also extended invitation to Railways Minister Sheikh Rashid Ahmed for undertaking a visit to their firm.

Sheikh Rashid, while responding positively, said that Prime Minister Shaukat Aziz would take up the matters pertaining to railways with his Chinese counterpart during his upcoming visit to China.

http://www.brecorder.com/index.php?id=544265&currPageNo=2&query=&search=&term=&supDate=


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## Neo

Thursday, March 29, 2007 

*Survey for 4th port at Sonmiani Bay starts*

KARACHI: The survey for Allah Din Port Ã¢â¬â the fourth modern seaport of the country to be established at Sonmiani Bay, in Balochistan province, 75km west of Karachi, has been started.

Federal Minister for Ports and Shipping Babar Khan Ghauri and Karachi Port Trust Chairman Vice Admiral Ahmed Hayat on Wednesday took an aerial view of the Sonmiani Bay.

President Gen Pervez Musharraf shall perform stone laying ceremony of the port by the end of this year. The project aims to develop the first coastal city in Balochistan with business, housing, industrial and industrial development opportunities.

http://www.dailytimes.com.pk/default.asp?page=2007\03\29\story_29-3-2007_pg5_3


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## Neo

*Pakistan Attracts $1.5 Billion World Bank Support For Transport Plan *

ISLAMABAD -(Dow Jones)- Pakistan's $6-billion plan to improve its transport infrastructure will receive $1.5 billion worth of project loans from the World Bank over the next five to seven years.

"The chief objective (of the plan) is to lower the losses in trade and transport logistics of Pakistan, losses worth up to 4%-6% of the country's GDP," Amir Durrani, the World Bank's senior transport sector specialist, said yesterday.

The Asian Development Bank has already said it will lend another $1.1 billion.

The project, called the National Trade Corridor Plan, is yet to be formally launched. Prime Minister Shaukat Aziz heads a committee that meets monthly to review progress and assign work to agencies.

The plan aims to reduce bottlenecks in highways, railways, civil aviation, ports and shipping, trucking and trade facilitation sectors, resulting in estimated savings of $5 billion a year.

Ports, roads and railways along the corridor, which runs from ports in the south to industrial bases and trading partners in the north and north-west, handle 95% of the country's external trade, valued at $41.56 billion in fiscal year ended June 30, 2006.

Poorly managed freight forwarding, high port costs, delays at customs, relatively shallow draft in ports and poorly managed roads are among the problems the project aims to deal with.

Besides the World Bank and the ADB, private investors and the government are also helping with funds.

According to a World Bank document, $1 billion of this the $1.5 billion money will be spent from 2006-2010 on building and reconstructing 9,600 kilometers of roads, with the remainder being spent on customs reforms, port handling and other areas. It is initially providing $360 million to construct 200km of expressways.

The ADB's $1.1 billion will go toward highway building and reconstruction, and for technical support for port management, according to a document outlining the government's plans.

It will also lend $600 million to help attract private investment in the power, transport and water subsectors, according to an ADB statement issued in November last year.

Including the transport infrastructure projects, the World Bank is implementing 18 projects in Pakistan in the current fiscal year, with a net commitment of $1.1 billion. 

http://www.nasdaq.com/aspxcontent/N...CQDJON200703290243DOWJONESDJONLINE000403.htm&


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## Janbaz

*New int'l airport to be built near Fateh Jang*

AMRAIZ KHAN 
LAHORE - Civil Aviation Authority CAA Pakistan will double the present space of Allama Iqbal International Airport&#8217;s AIIAP terminal building while foundation stone of a new international airport in Islamabad would be laid down on April 7, costing more than Rs 35 billions.
CAA North Zone Regional Director Brig (R) Pervez Bashir informed this while addressing a press conference here at AIIAP on Thursday. CAA Public Relation Officer Kamran Malik and AIIAP Acting Airport Manager Muhammad Arshad Malik were also present on the occasion.
Pervez said that the airport, yet to be named, would be constructed near Fateh Jang district and it would be situated on the land of Fateh Jang and Attock land simultaneously. He said that it would be the biggest airport of the country equipped with the latest technology. President General Pervez Musharraf has shown interest in laying foundation stone of the airport, he added. He said that the prime minister and the president would name the new airport, which would be constructed on complete self-finance basis born by CAA.
He maintained that the newly designed airport would be expanded on 3700 acres land out of which 90 per cent land had been acquired by the CAA. Pervez said that NHA would construct roads of the airport, adding that the airport would be the concept of airport city in which two runways, terminal building, cargo village, hotels, shopping malls, expo centre and grid station etc would be included. 
He was of the view that only ground levelling of the site would take one and a half-year and it would cost about Rs 1.5 billion.
The regional director further said that the new airport would be operational by four years and the CAA authorities had fenced the area of 18 km for the security purpose. He said consultancy for the project was being hired from an American firm. He revealed that the terminal building of the airport would be used from the two sides for the parking of aircrafts and 20 to 25 planes could be parked at the same time on the proposed airport. 

The Nation.
http://www.nation.com.pk/daily/mar-2007/30/bnews2.php


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## Janbaz

Nice to see new modern facilities being built to make all parts of our great country accesible. It's just like the U.S.A where every significant city has an international airport.


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## Janbaz

*PIA suffers Rs 13.4 billion loss in 2006*

OUR STAFF REPORTER
KARACHI - Pakistan International Airlines suffered a loss of Rs 13.4 billion last year (January-December 2006), sources told TheNation on Thursday. 
The sources said that at the 302nd meeting of PIA&#8217;s board of directors in Karachi on Thursday, it was disclosed that the national flag carrier had suffered Rs 8.6 billion more loss than 2005 which was Rs 4.8 billion. 
However, a press released issued by the PIA public relations department claimed that the PIA board of directors noted at the meeting that the airline had recorded an &#8220;exceptional growth of revenue&#8221; from Rs 64.074 billion (January-December 2005) to Rs 70.587 billion (January-December 2006), showing a 10 percent increase. During the same period, the passenger traffic increased by 12 percent, cargo traffic by 17 percent, the system passenger seat factor to 71.4 percent and cargo load factor to 61.9 percent. The press release said that PIA was successful in increasing its domestic market share by 4.7 percent to 69.4 percent and also managed to defend its market share in the international segment at the same level as last year of 48 percent. 
&#8220;The board noted that the Corporation achieved a healthy growth of 10 percent in revenue mainly boosted by 12 percent growth in passenger revenue. However, this was more than offset by a record increase in fuel price, and over 71 percent increase in financial cost to finance increased fuel and fleet replacement cost.&#8221; 
&#8220;The Board appreciated the management&#8217;s efforts to counter the adversities by adopting a strategy focusing attention on the enhancement of revenue through improved services, new selling initiatives, competitiveness and cost curtailment.&#8221;
The meeting was presided by Mr Tariq Kirmani and attended by Kamal Afsar, Mueen Afzal, Nawid Ahsan, Shahzad M Husain, and Maj Gen Mir Haider Ali Khan. 

The Nation.
http://www.nation.com.pk/daily/mar-2007/30/index5.php


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## Neo

*Stone-laying of new Islamabad airport on April 7 *

LAHORE (March 30 2007): The stone-laying ceremony of new Islamabad Airport project will be held on 7th of April and President General Pervez Musharraf is expected to be the chief guest on the occasion.

This Rs 35-billion project will usher in a new era of economic prosperity in the districts of Rawlapindi and Attock as it will provide direct job opportunities to 2,000-2,500 people, besides providing indirect employment to a sizeable number of people in the area, Brigadier Pervez Bashir, Director Civil Aviation Authority North Zone, told a news conference at Allama Iqbal International Airport, here on Thursday.

With the announcement of this project, the price of property in the area have shoot up, he pointed out. The project will not only financially benefit the people of the area but also add to the national exchequer in terms of tax amount.

To a query, he said the name of this airport was under consideration and the president or the prime minister will formally announce it, as and when the name is finalised.

Spreading over an area of around 3700 acres of land, this will be a complete 'green field airport.' It will have two runways to meet any emergency needs and will be able to handle growing air traffic for 70 to 100 years, he revealed. He said that out of total 3700 acres, 95 percent of the land has already been acquired while the rest of land will be managed very soon.

Payments for the acquired land have already been made, he stated. He said that area wise, it would be the biggest airport of the country having all facilities, including two runways, terminal building, lounges, cargo village as well as commercial outlets such as hotel, expo-centre, grid station, water distribution plant, Sui gas facility, offices, CAA employees colony and other necessary facilities.

He averred that the project whose total cost will be borne by the CAA through its own resources without having an financial assistance from the government, will be completed in two phases. In the first phase work regarding ground levelling etc, will be done; while in the second phase, terminal building will be completed along with all allied facilities.

It will be one of the most modern airports in the world, he claimed. Describing the uniqueness of the project he said that its terminal building would be erected in middle of the two runways for making its maximum utilisation.

About time framework of its completion he said that it will be completed in four years and civil work was expected to commence in June-July next year. To a question regarding problems being faced by the passengers at the Lahore airport arrival lounge, he said he was cognisant of the issue and the space will be doubled in less than six months. "We have already identified 336 acres of land for this purpose," he concluded.

http://www.brecorder.com/index.php?id=544726&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Lakpass Tunnel likely to be completed by December *

ISLAMABAD (March 30 2007): Work on Lakpass Tunnel on Quetta-Taftan road (N-40) is in full swing and the project is likely to be completed by December this year, four months ahead of schedule, source in National Highway Authority (NHA), Ministry of Communications told APP here on Thursday.

Lakpass Tunnel Project comprises construction of a 180 metre long tunnel and four and a half kilometre road. The tunnel is located about 25 kilometres from Quetta in District Masung. The source said the Tunnel shall provide comfort to the public travelling on N-25 & N-40, by improving the steep gradient and eliminating the curves.

The source also informed the project also includes 7.3 metres wide approach road with three metres shoulders to the tunnel and rehabilitation of the existing road to 7.3 metres width and three metres shoulders following existing alignment to allow smooth flow of traffic along the Lakpass area.

The Tunnel is being constructed by Frontier Works Organisation (FWO) at a cost of Rs 800 million on Built-Operate-Transfer (BOT) basis. The tunnel will connect Quetta-Noshki-Taftan Highway (N-40) and Karachi through Karachi-Khuzdar-Quetta-Chaman Highway (N-25) also known as RCD Highway.

Construction of the Lakpass Tunnel will facilitate trade activities in the country and also with Iran, Afghanistan and Central Asian Republics, the source said adding that better business opportunities will be available to the locals. The source said at present Lakpass is a weak link on N-25 and N-40 leading to Iran and Afghanistan and to Central Asia.

The source said that gradient of the existing Lakpass crossing is 15 percent and the vehicles creep up at a snail's pace. Fully loaded trucks are compelled to hire tractors to pull them through this segment. The problem of steep gradient is aggravated by sharp blind curves. He said on completion, it will provide safe and efficient crossing with improved gradients and elimination of curves, reduce accidents and will save travelling time. The project will also provide employment opportunities and generate economic activity in the area, he added.

He further said that length of national highways in Balochistan is 36.66 percent of the overall length. The NHA's plan for Balochistan is to provide road linkages to Gwadar Port, high standard national highways and provincial and international linkages, he continued.

He further said, FWO has experienced construction experts and the latest construction equipment and machinery and has to its credit completion of the Makran Coastal Highway and hoped that Lakpass Tunnel will also be completed with quality construction.

http://www.brecorder.com/index.php?id=544778&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*132KV grid station to be set up for new Islamabad airport *

ISLAMABAD (March 31 2007): The Civil Aviation Authority, in collaboration with Islamabad Electric Supply Company (IESCO), will set up 132KV grid station for new Islamabad international airport near Fatehjhang. According to official sources, the project will cost Rs 481 million, which also included Rs 197.03 million foreign exchange.

The project will be completed in 18 months from start of the development work. It is noteworthy that ground breaking of new Islamabad International Airport is likely to be performed by President General Pervez Musharraf on April 7.

The New Islamabad Airport will be completed in two stages on 30,000 kanals of lands in four years. The new airport project will cost around Rs 35 billion. About the existing electricity facility near the new Islamabad airport, the sources said that so far there is no facility, infrastructure available at the proposed grid station site.

The sources said that under the said project the ISECO would build grid station, colony, and all necessary work stations for smooth provision of load demand of 25MW to the new Islamabad International Airport. The existing Islamabad airport is situated at congested area, which needed to be expanded immediately in order to fulfil its role to become a major hub of domestic, international travels in the country. Pakistan economy is rapidly developing, which needs new international airports to connect to the world all the time.

http://www.brecorder.com/index.php?id=545139&currPageNo=1&query=&search=&term=&supDate=


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## Neo

* Airblue launches frequent flyer programme *

KARACHI: Airblue on Friday launched Frequent Flyer programme in a bid to encourage frequent travellers of the airline by offering special treatment and packages. Frequent Flyer plastic cards are part of AirblueÃ¢â¬â¢s customer loyalty programme for the repeat passengers. Blue Miles cards are for passengers who are registered as frequent flyers on the airlineÃ¢â¬â¢s website, said a press release issued here. The registered passengers who have travelled more than 2,000 miles, but less than 20,000 miles will get the standard Blue card and registered passengers who have travelled more than 20,000 miles will get Platinum Member card. Through the programme, the airline is offering 100pc greater redemption miles to its Frequent Flyer passengers than existing offers in the market.

http://www.thenews.com.pk/daily_detail.asp?id=49106


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## Janbaz

*Pakistan, China to enter Transit Trade Agreement * 

By Khalid Mustafa
ISLAMABAD: Pakistan and China are to kick off parleys for joint study to enter into Transit Trade Agreement (TTA), on April 10-12 in Beijing besides initiating talks for FTA in services sector. 

Under the TTA both the countries would be able to use each other&#8217;s territory for transit of their goods for export to other countries. Both the sides will discuss the entry and exit points, mode of transportation of goods and security of containers under customs procedures. For this particular purpose, both the countries would carry out study on Transit Trade Agreement. 

Pakistan wants to grab the Central Asian markets by using the transit route of China and in return Beijing would be allowed to use Gwadar port and Karachi port for export of its goods to other countries. 

Both the countries have taken this initiative after the Quadrilateral Transit Trade Agreement (QTTA) signed in 2004 between Pakistan, China, Kyrgyzstan and Kazakhstan. 

Since the initiation of trade under QTTA, only 8 trucks have been passed on through Pakistan&#8217;s territory. He highlighted as to why the trade under QTTA could not pick up mentioning the irritant, which include visa and quarantine issues. Keeping in view the no progress in trade under QTTA, both Pakistan and China have decided to enter into bilateral Transit Trade Agreement. 

&#8220;This will be the second Transit Trade Agreement which Islamabad would enter, as Pakistan and Afghanistan have already had Pak-Afghan Transit Trade Agreement (ATTA).&#8221; 

Pakistan and Afghanistan signed the Afghan Transit Trade Agreement in 1965. According to the agreement, the goods can be transited through only two land routes ie Peshawar-Torkham and Chaman-Spin Baldakh. Now both the countries are pondering to revise the Transit Trade Agreement, as such agreement needs to be revised after every 10 years, but the existing ATTA is operational since 1965.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=49227


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## Contrarian

lol neo, ur posting about frequent flyer programes now!


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## Neo

malaymishra123 said:


> lol neo, ur posting about frequent flyer programes now!



I work in the civil airline industry remember?


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## Neo

*PIA passenger market up 3.3 percent despite oil bill increase *

KARACHI (April 01 2007): With fuel prices expected to be averaging below $60 per barrel, and plan in hand to streamline overheads, PIA has all the potential to successfully revive itself and rebound during the next 12 months. This was stated in a meeting of the airline's Board of Directors, which reviewed its operating performance and approved the 2006 audited accounts.

It was noted that he aviation market in Pakistan, throughout 2006, remained highly competitive and maintained open access to airlines both from within and outside the country. Overall, the passenger market increased by 3.3 percent, while PIA achieved a growth of 4.4 percent (from 5.44 million passengers in 2005 to 5.68 million in 2006).

The airline achieved a passenger seat factor of 71.4 percent on scheduled services whereas 'passenger yield' increased by 6.1 percent over the previous year. Cargo load factor increased to 61.9 percent in 2006 and 'cargo yield' grew by 12.1 percent. PIA retained its share in the international segment and increased its domestic market share to a healthy 69 percent.

The airline substantially modernised its fleet through acquisition of three wide-body state-of-the-art Boeing 777 and induction of three brand new ATR 42 Turbo aircraft to partly replace the Fokker fleet. With the acquisition of Boeing 777 LR, nonstop flights were introduced to Canada for the first time.

The Board was informed that for the year under review the airline's expenditure rose because of the fuel bill. This increased expenditure was essentially caused by the simultaneous occurrence of factors that were both extraneous and unavoidable.

The single key factor for increased operating expenditure in 2006 was the abnormal increase in fuel cost by Rs 6.9 billion, 26 percent higher than the previous year.

Since mid-2005, the crude oil prices in the world market have been witnessing abnormal increase, which reached its peak in late 2006 when crude was being sold at $78 per barrel. As a consequence, the aviation fuel prices also showed sharp increases.

Since PIA had not hedged its fuel prices, unlike some other airlines, all the cost increases were absorbed in the respective period accounts. For the year 2006, PIA fuel bill rose from Rs 26.5 billion in 2005 to Rs 33.4 billion in 2006, showing an increase of 26 percent over previous year.

PIA's fuel bill, as a percentage of sales (47 percent) was far higher than the industry average of 31 percent. Apart from unhedged fuel, it also significantly pointed to the high rate of burn-off of fuel on the ageing aircraft, as average age of PIA's fleet was 20 years at the beginning of 2006--much higher than the industry average.

In addition to fuel, the airline experienced substantial cost increases in the aircraft chartered for meeting scheduled and Haj traffic, engineering/maintenance, aeronautical and flight handling and selling and distribution cost.

Compared to 2005, the interest cost increased by an additional Rs 2 billion to Rs 4.8 billion--71percent increase over previous year-- primarily due to additional borrowing for the purchase of three Boeings 777 and three ATR aircraft, and increased short-term borrowings due to fuel price-led operating loss.

Moreover, increase in interest rates in the country also contributed to the increased financing cost. Despite grounding of 6 Fokker aircraft in July 2006 and some restrictions from European Union under their Safa Program in October 2006, PIA's revenues increased by 10 percent.

"If we are to measure PIA's performance by isolating the abnormal impact of fuel price increase, then the airline using 2004 fuel price level would have posted a profit of Rs 3.3 Billion in 2005 and another profit of Rs 1.5 Billion in 2006, after including increased financing costs", said PIA Chairman Tariq Kirmani, who chaired the Board meeting.

"This is so because all the indicators critical to evaluating an airline's performance have shown improvement in 2006, whether it is market share, number of passengers carried, aircraft utilisation, yield increase, or revenue improvement," he added. During the year under review many strategic and operational levels of initiatives were taken for improving the quality and productivity of the human resources, which eventually should also improve the morale among the 18,500 manpower, he said.

During the year, PIA inducted 42 newly qualified MBA Trainee Officers, 50 Trainee Engineers and 841 Cabin Crew for its expanding fleet. In the area of training, 293 newly inducted cabin crew were trained in 2006 including 55 from overseas, whereas 264 PIA employees were trained in various management disciplines by visiting trainers. Moreover, PIA Training Centre Instructors were trained under train-the-trainer program from Iata, European Union and aircraft manufacturers like Boeing and ATR. Performance Appraisal training was conducted for more than 3000 employees of supervisory/middle & senior management levels.

The airline is going through a challenging time with some new pressures like the March 7, 2007 EU restriction on part of PIA fleet, which is taking priority. It is expected that the airline will be able to resolve the EU issue within the first half year 2007. The management will continue its accelerated emphasis on high standards of safety and engineering maintenance. At the same time, the airline management and the Board have agreed on a plan to accelerate the modernisation of its fleet through cost effective means so as to aim for an average fleet age of around 10 years. PIA is already in the final stages of selecting replacement of aircraft for its narrow body Boeing 737 fleet. Moreover, the process to replace Boeing 747 fleet is also under review by the management.

New state-of-the-art technologies, like Sabre Revenue Management System, are currently under test-run, which would accurately predict future demand enabling PIA to proactively allocate fleet and related resources to be competitive in a complex market environment. This will also help maximise revenue, help enhance market share and keep a close watch on competitive pricing strategy. Additional 3-5 percent revenue is being forecast through this system.

Kirmani said the airline is constantly improving its systems and processes to improve productivity and control cost. In addition, our action in 2006 to expand the distribution network through participation in major GDRs is also expected to generate additional sales as PIA services are now available to a much larger distribution base," he concluded.

http://www.brecorder.com/index.php?id=545462&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Shaheen Air buys two Boeing 737s*

KARACHI: Shaheen Air International has purchased another two Boeing 737 aircraft, thus leading to a fleet of seven aircraft.

In a press statement issued Monday, the airlineÃ¢â¬â¢s spokesman Farooq Nasir Khan said that one Boeing would arrive at Karachi Airport early this week, however the other one has departed from USA and arriving at Karachi Airport on April 6. 

He said that with a fleet of seven self-owned Boeing 737 aircraft, Shaheen Air has robust plans and endeavors to expand its flight frequencies swiftly.

http://www.dailytimes.com.pk/default.asp?page=2007\04\03\story_3-4-2007_pg5_16


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## Neo

*PIA moves towards global alliances *

KARACHI (April 04 2007): Pakistan International Airlines has taken another step forward towards its mission of "Participating in Global Alliances". PTA recently entered into code share agreements with Thai Airways & China Southern Airlines.

PIA and Thai Airways have entered into an exclusive strategic alliance whereby the two airlines will code share on all flights operated by both airlines between PIA & Thailand. This agreement is effective from March 25, 2007 in the summer 2007 schedule. Thai Airways will be operating 12 weekly frequencies, five from Lahore, four from Karachi and three from Islamabad. PIA will be operating four frequencies per week, two each from Karachi & Islamabad, However, PIA is presently operating only two weekly frequencies between Islamabad and Bangkok

Passengers will now have the option to travel on any of the 14 frequencies with greater flexibility of itinerary. Passengers will also be free to travel on any route without the requirement of endorsement. For example a passenger holding ticket on Karachi-Bangkok-Karachi route can now travel on Karachi-Bangkok-Lahore or Karachi-Bangkok-Islamabad or Islamabad-Bangkok-Islamabad by any of the two airlines. The two airlines have also extended SPAs to each other on domestic sectors.

Pakistan International Airlines (PK) and Thai Airways (TG) have also agreed on establishing common market selling fares from Pakistan & Bangkok and through fares on all beyond points that are not served by PTA.

In another step forward, PIA & China Southern Airlines have entered into a long term strategic partnership. The two carriers now have code share on all flights between Pakistan & China effective March 25, 2007. China Southern Airlines (CZ) is the marketing partner on Pakistan International Airline's (PK) operated flights between Islamabad and Beijing. The flights will also carry CZ flight numbers. Similarly, PIA is the marketing carrier on CZ operated flights between Urumqi and Islamabad.

PIA shall have six weekly frequencies to the People's Republic of China, three to Beijing and three to Urumqi PIA is already a code share partner of AeroSvit airlines of Ukraine for operation between Karachi and Kiev since November 2006. PIA operates between Karachi and Dubai with AeroSvit (VV) as the marketing partner. AeroSvit operates between Dubai and Karachi with PIA as the Marketing Carrier. Passengers travel between Karachi and Dubai on PK flight numbers.

PIA and THY (Turkish Airlines) are also operating under code share agreement on flights between Pakistan and Istanbul since June 2006. PIA operates on Islamabad-Istanbul route while Turkish Airlines operates on Istanbul-Karachi route.

The code share agreements with four airlines in nine months is indicative of PIA's commitment and resolve to join global alliances to expand its network and frequencies so as to provide convenience to its customers and improve the economics of PIA operation.

http://www.brecorder.com/index.php?id=546186&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*All set to launch Nishter Express today *

RAWALPINDI (April 04 2007): Pakistan Railways will start a new train named Nishter Express on Wednesday to ply between Rawalpindi and Karachi for which all the arrangements have been finalised at Rawalpindi railway station. Federal Minister for Railways Sheikh Rasheed Ahmed will see the train off at 11am.

The deputy superintendent of Rawalpindi Railways Division Muhammad Hayat Malik told this scribe that Nishter Express would run from Rawalpindi on every Wednesday and Saturday leaving at 2pm in the afternoon which will reach Karachi the next day at 10.30am. The train would run from Karachi on every Monday and Thursday, he said.

He said the Express train would touch Lahore, Multan, Rohri and Hyderabad have eight coaches including one A/C parlour, 3 A/C lower, two economy class coaches, dining car and a power coach. Three A/C lower and a power coach would be attached with the train from Lahore. He said that fare of A/C parlour would be Rs 2020 while A/C lower Rs 1975, economy class seat fare would be Rs 685 and along with berth it would be Rs 765. Malik said that coaches of the Nishter Express were locally assembled in Railway Carriage Factory using Chinese technology.

He further said Railways has planned to run two more non-stop trains including Mianwali Express between Rawalpindi and Mianwali and Pindi Express between Rawalpindi and Karachi. He said that a Freight Express would also be launched on April 11 from Faisalabad followed by launch of Mianwali Express on April 16 from Rawalpindi and launch of Pindi Express on April 30.

http://www.brecorder.com/index.php?id=546175&currPageNo=3&query=&search=&term=&supDate=


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## Zeeshan S.

*Bab-e-Pakistan to be ready by August 2009*

Staff Report

LAHORE: The minister for the chief minister&#8217;s inspection team, Col (r) Shuja Khanzada, said on Thursday that work on Bab-e-Pakistan was in full swing and the project would be completed by August 2009.

Inspecting the progress on the project, he said, Bab-e-Pakistan would reflect the Islamic and Mughal architectural heritage of South Asia and the culture of the four provinces as well as Azad Kashmir. He said, &#8220;Bab-e-Pakistan will be a symbol of national unity.&#8221;

Khanzada said that the Bab-e-Pakistan project, covering 103 acres, would be completed at a total cost of Rs 2.09 billion. He said that the 164-feet tall monument would have the kalima engraved on it. He added that an auditorium, a library, a museum, an exhibition hall, a mosque, a high school for boys, a high school for girls and a garden would be part of the project.

Khanzada credited the project theme to President Pervez Musharraf and Chief Minister Pervaiz Elahi. He said the CM would visit the site soon. He added that information about the Pakistan Movement, along with pictures and messages of national heroes, would be available for visitors at Bab-e-Pakistan.

He said a special body would be established to maintain the monument. He said colleges and university would also be set up near the monument in the future.

http://www.dailytimes.com.pk/default.asp?page=2007\04\06\story_6-4-2007_pg7_47


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## Neo

*Private airlines to get more flying rights *  

By Masood Anwar

KARACHI: The government has decided to break with its tradition of giving protection to the national flag carrier - Pakistan International Airlines - and restructure the National Aviation Policy.

Under the new policy, the government would facilitate private airlines over foreign carriers with an offer of fifth freedom traffic rights without non-reciprocities, minutes of the National Trade Corridor Improvement Programme (NTCIP) revealed.

Fifth freedom is the right of an airline from one country to land in a second country, to then pick up passengers and fly on to a third country where the passengers then disembark. 

Moreover, restructuring of the Civil Aviation Authority (CAA) and privatisation of major airports were also on the cards, documents showed.

Ã¢â¬ÅThe grant of fifth freedom traffic rights has been included in the new aviation policy,Ã¢â¬Â according to a presentation on the national trade corridor given to Prime Minister Shaukat Aziz on March 1.

Ã¢â¬ÅThe policy should not be restrictive/selective giving the impression of being protective to a specific airline,Ã¢â¬Â the meeting was told. Ã¢â¬ÅAccess to Northern gateways should be made liberal.Ã¢â¬Â 

As a result of the PMÃ¢â¬â¢s directives, the CAA has given fifth freedom rights to Royal Brunei Airline with intermediate stops at Singapore and Dubai while negotiations are underway with Qatar Airways, which may get permission soon.

Talks with Qatar on Bilateral Air Services Agreement (ASA) were held in September 2006 and Qatar Airways had provided sufficient capacity to handle fourth and fifth freedom, the meeting told the PM.

Sources said Qatar Airways had also proposed to start domestic flights in Pakistan and the Ministry of Defence was considering the proposal.

In the new aviation policy, private sector airlines could avoid mandatory operation on low-yield routes of remote areas.

Ã¢â¬ÅThe spirit of providing connectivity to remotest areas in Pakistan is appreciated. However, operation on secondary routes may not be made mandatory for the private airlines as it would be at the cost of their financial viability. Provision of some incentives for them to fly on these routes may be made in the proposed policy,Ã¢â¬Â the minutes said.

The secondary routes included Moenjodaro, Zhob, Saidu Sharif, Dalbadin, Parachinar, Sehwan, DI Khan, Hyderabad, Ormara, Rawalakot, Muzaffarabad, Chitral, Gilgit, Panjgur, Turbat and Jiwani.

Earlier, the private sector airlines were bound to operate on a minimum of two secondary routes.

Moreover, the private airlines will also be free to fly on lucrative international routes. Previously, they were not allowed to do so in order to give protection to the PIA.

The meeting also discussed the division of Civil Aviation AuthorityÃ¢â¬â¢s functions. In a presentation to the Vice President of World Bank, Praful Patel, the director-general CAA said the government had planned division of the authority into regulatory, commercial and operating areas.

He also told the World Bank the CAA would encourage Pakistani private sector airlines to operate on international routes.

Under the heading of objectives required to be achieved, the meeting was told privatisation of airports and restructuring of CAA should be done. 

Building of airport cities at Karachi and Lahore having business centres, leisure facilities, amusement parks, logistic parks and transshipment facility is also underway. The CAA was directed to take steps for the inclusion of private sector in ground handling activities.

http://www.thenews.com.pk/daily_detail.asp?id=49760


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## Neo

Friday, April 06, 2007 

*Ã¢â¬ËBanking industry to play due role in infrastructure upliftÃ¢â¬â¢*

KARACHI: The Governor of the State Bank of Pakistan (SBP), Dr Shamshad Akhtar, has said that the central bank and commercial banks, being socially-responsible corporate entities, are committed to infrastructure development in the country.

Dr Akhtar was speaking at the foundation stone laying ceremony for the reconstruction and refurbishment of I I Chundrigar Road held here at the SBP head office on Thursday. 

The road is being built with the financial assistance of commercial banks. 

The SBP governor described the project, estimated to cost Rs 220 million, as a manifestation of public-private partnership. 

She expressed optimism that the beautification project of I I Chundrigar Road will be completed within four months as assured by the city nazim, Syed Mustafa Kamal. 

Dr Akhtar appreciated presidents of commercial banks for their contribution top the project, and hoped that the institutional mechanism established for the implementation of the project will help ensure its completion in record time. 

She said the State Bank will also make contribution to the project after obtaining approval from its board shortly.

She said that in order to meet growing infrastructure requirements of the banking industry, the SBP and commercial banks, in consultations with the relevant 

government departments, have floated a proposal to set up a financial district in Karachi. 

The proposed financial district will have state-of-the-art facilities, she said, adding that a steering committee under her chairmanship has already been set up. Other committee members would be drawn from the Pakistan BanksÃ¢â¬â¢ Association and the City District Government Karachi.

The SBP governor urged banks to continue to play their role in the development of the city and ensure cleanliness of their premises as well as adjoining areas. 

Earlier, the city nazim, Syed Mustafa Kamal, briefed the SBP governor about salient features of the project. He said that the reconstruction of I. I. Chundrigar Road will be completed within four months. In order to strengthen the security of this vital business area, a network of close-circuit cameras will also be installed on the refurbished I I Chundrigar Raod, he said, adding that Karachi, a financial and commercial hub of the country, is now regarded as one of the 12 mega cities of the world.

The ceremony was attended, among others, by the president of National Bank of Pakistan, Syed Ali Raza, senior bankers and officials of the City District Government Karachi. 

http://www.dailytimes.com.pk/default.asp?page=2007\04\06\story_6-4-2007_pg5_9


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## Neo

*Prime Minister approves development of new port city in Balochistan *

ISLAMABAD (April 07 2007): Prime Minister Shaukat Aziz has approved in principle the concept for the development of a new self-contained port city on the Balochistan coast, which will provide business, tourism, housing and industrial development opportunities to Pakistani and foreign investors.

The prime minister was chairing a presentation on the proposed port city called Alladin Cove at the PM's House on Friday. The actual city would be located at Miani Hor on the Balochistan coast.

He said that the decision to develop the new port city with world class infrastructure, including roads, airport, hotels, IT, banking, industrial parks and oil refineries had been taken in pursuance of the announcement made by President General Pervez Musharraf to develop a new city on March 20 during his visit to Gwadar to inaugurate the Deep Sea Port.

During his presentation, the Chairman Karachi Port Trust, Vice Admiral Ahmed Hayat told the meeting that Pakistan's fourth sea port of the country would be developed at Miani Hor a lagoon near Sonmiani, which is located 80-km North West of Karachi.

The prime minister said that the selected area should be clearly delineated and acquired and the services of a world-class developer should be sought through international tenders to prepare a master plan for the proposed city.

He said that in addition to being a port the new city would be a tourist resort and an industrial hub and would open new vistas of economic opportunities and create thousands of jobs, which would benefit not only Balochistan but the entire country.

He appreciated the positive role of Chief Minster Balochistan, Jam Mohammad Yousaf and the provincial government in facilitating yet another mega project, which would benefit the people of Balochistan.

http://www.brecorder.com/index.php?id=547502&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*New Islamabad airport costs surge to $650 million* 

ISLAMABAD (April 07 2007): The cost for new Islamabad International Airport has increased from $350 million in 2005 to $650 million in 2007 and those abreast with the cause of escalation believe that at the end of the day project will cost $800 million to the nation.

The increase in cost even today is Rs 18 billion at 1=60 dollar/ rupee exchange rate. President General Pervez Musharraf is going to perform groundbreaking of this mega project but without a detailed engineering design on April 7.

Sources said Civil Aviation Authority (CAA) had awarded a Rs 1.5 billion contract of levelling and grading of the land to M/s Hussnain & Co, a Lahore-based construction company, a year back and work is already in progress.

But CAA is yet to hire a consultant for detailed engineering design of the project. Even a lay man can understand that a detailed engineering design is pre requisite to start with an important project like the new Islamabad International Airport.

The purpose of levelling and grading work without detailed engineering design appears to be ensuring groundbreaking for the airport project with the given timeframe.

Sources said CAA had advertised for hiring a consultant for detailed engineering design sometime back and after going through the initial work it's negotiating with CPG- an Australian company- presently engaged with Singapore Authority for the similar job. The experts say the CAA will get the detailed engineering design ready for the project in 8 to 10 months after the award of the contract.

Probably, for the same reason CAA is hinting at start of construction work of the project in 2008. It perhaps does not include grading and levelling in construction work. The CAA estimates of Rs 38 billion for cost of the project, which according to its work plan, will complete in 3-4 years, is also indicative of the concerned authorities perplexity.

The project of constructing a green field Islamabad International Airport was conceived in 1988, by the then president Ziaul Haq, but it could not take-off due to CAA and other departments' indecisiveness. The past events and developments indicate that the concerned authorities kept on changing mode of work and procedure of award of contract for years.

They offered the project to the private sector sometimes on BOO and sometimes on BOT basis but each time the decision was reversed for the reasons known to those who delayed it for 19 years that multiplied its cost besides depriving Islamabad from an airport of the world standard.

http://www.brecorder.com/index.php?id=547570&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*PIA shows growth in revenue *

KARACHI (April 07 2007): PIA showed a healthy growth and positive trend in all indicators critical in evaluating an airline's performance. It will be seen from the figures that while revenue growth has been 11percent and 10 percent in FY 2005 and FY 2006 respectively, or in other words from Rs 57.7 billion to Rs 70.5 billion, all this gain was neutralised by the increase in fuel prices in the last two years.

This was coupled with the increase in interest rates and interest payments due because of the induction of new aircrafts like the Boeing 777's and the ATR's into the PIA fleet. Had this not been so, and the fuel prices had remained constant at the FY2004 level, PIA would have posted a massive Rs 4.12 billion in profit in the last two years.

However, that was not to be the volatile, unpredictable and almost indifferent nature of the hike in fuel prices was a severe blow to the entire airline industry that cumulatively cost it USD 46 billion extra in fuel cost in five years from 2001 to 2005. Most airlines are still recovering from this unavoidable burden.

In PIA this figure increased from 31percent 2004 to 41percent in 2005 going up to 47percent in 2006 and this percentage is of the total revenues earned. This phenomenal increase is much higher then the industry average of 31percent. In monetary terms this meant that PIA spent Rs 34.1 billion on fuel in 2006 as compared to Rs 19.1 billion in 2004 and Rs 26.9 billion in 2005 showing an Increase of 26.8percent.

Similarly, compared to 2005, the interest cost increased by an additional Rs 2 billion to Rs 4.8 billion, which again was a 71,percent increase over last year. On top of all this, there was a substantial cost increases in aircraft chartered for meeting scheduled and Hajj traffic, engineering and maintenance, aeronautical and flight handling, selling and distribution cost.

The loss to the airline due to these factors would have been very great had them not been a positive trend in all the performance. In sheer performance terms the airline carried 5.7 million passengers in 2006 as compared to 5.5 million passengers in 2005.

This is very significant because whereas the overall passenger market increased by 3.3 percent, PIA achieved a growth of 4.4 percent. Passenger yield increased by 6.1percent and the seat factor stood at 71.4percent in 2006. In the year 2006 the load factor increased from 52.5 in 2004 to 62.4. Cargo yield increased from Rs 3.6 in 2004 to Rs 4 in 2006.

Aircraft utilisation was below par due to the grounding of Fokker aircraft and the as yet uncompleted new aircraft induction. There were 48 aircraft in 2004 whereas there were only 39 aircraft in 2005 and 40 in 2006. The average age of the PIA fleet was 21 years in 2004. Today, in April 2006, the average age of the fleet is 16 years.

By the end of June 2007 the average age of the fleet will further reduce to 11 years. The number of employees was reduced from 19,312 to 18,258 the aircraft to employee ratio still remained much higher at above 400, compared to the international average of 150 employees per aircraft.

http://www.brecorder.com/index.php?id=547597&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*'New Islamabad airport to complete in four years' *

ISLAMABAD (April 07 2007): Project Director Islamabad International Airport Masood Salam on Friday said that the new Islamabad international airport equipped with modern and state of the art facilities would be completed in four years.

Talking to a TV channel, he said it would bigger than Lahore and Karachi airports and the structure of the building would depict Islamabad's culture. 30,200 acres land has been acquired for the airport, while fencing of the land has already been completed, he added.

The construction work will start in June 2008, while the ground levelling has already been started at a cost of around Rs 1.5 billion, he said adding the contract for this project has been given to an American company, which will complete the initial project in eighteen months.

Masood Alam said that the estimated cost for construction of new airport is Rs 24 billion and the funds would be provided by Civil Aviation Authority. Immediate target is to handle 0.1 million tons cargo by 2010 and it would be the second one after Hong Kong in Asia regarding cargo handling. It would be linked with M1 and M2 having facilities of the motorways, he added.

Alam said the area would be developed commercially. He said that they would follow the international standards for the construction of airport and maintain quality, adding the CAA would be responsible for its maintenance.

He recommended that the new airport area be declared special zone and CDA laws be implemented there. The construction of new Islamabad airport would generate thousands of job opportunities, he added.

http://www.brecorder.com/index.php?id=547638&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Karachi airport: visa counter to be set up for tourists: Nilofar *

KARACHI (April 08 2007): Federal Minister for Tourism, Nilofar Bakhtiar has informed the business community that a counter will be set up at Karachi airport for issuance of visa on arrival for tourists. Addressing members of Karachi Chambers of Commerce and Industry (KCCI) on Saturday.

She said that a counter for issuance of visa in arrival has already been established at Islamabad airport. About visa policy, she said that the new visa policy puts Pakistan a head of many countries in promoting tourism and added that the government has allowed national of 24 countries to get visa on arrival for tourism.

Criticising Pakistani embassies, high commission and consulate abroad, she said that many Pakistani mission do not know about this arrangement although servile circulars and advises were sent to them.

Regarding tourism promotion, she said that the government has declared year 2007 as the "vision of Pakistan year". In this regard the ministry has devised a number of events to celebrate and has prepared a full-year tourism promotion calendar.

Nilofar Bakhtiar pointed out that Pakistan is a land of great splendour, which has remained largely undiscovered and has a lot to offer tourists coming to visit this country. Pakistan is a destination, suitable for all kinds of excursions.

Describing unique selling points for tourism, she said that out of 14 highest peaks 5 are located in Pakistan, Pakistan offers world class climbing and hiking areas, sacred religious sites of significance to Muslim, Sikhs, Hindus and Buddhists, sea sports, etc.

The minister informed that the ministry has prepared a comprehensive tourism marketing strategy, which has been approved by Prime Minister of Pakistan. Main focus of tourism promotion policy is to target those countries that do not have travel advises against Pakistan. Criticising travel advises, she said that in many website Pakistan is market as red area whereas Kabul has been market as green areas. No country has put India on negative list although bomb blast also occurred in this country. Many countries in the world are facing worst conditions then Pakistan but they are not on negative list, she added.

The minister said that not only the foreign media but also the national media playing a big role projecting negative image of Pakistan. Whenever we asked foreign media about projecting bomb blats, burning of houses and vehicles they informed that footage is being provided by Pakistani media, she added.

She said that she has visited a number of countries to counteract the negative image that Pakistan has abroad. Efforts have also been made to bring Pakistan on the forefront as a welcoming and tourist friendly country.

Nilofar Bakhtiar pointed out that the tourism ministry faces many challenges to realise this mega task including negative country image abroad and substandard civic infrastructure. The ministry is making efforts to undertake tourism promotion activities including arranging presentations and road shows in target market cities, identifying and train a multi lingual young sales team She commented that Pakistan is a Muslim country, which allows every religion to hold ceremonies according to their religious traditions.

http://www.brecorder.com/index.php?id=547958&currPageNo=1&query=&search=&term=&supDate=


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## Neo

Tuesday, April 10, 2007 

*Pakistan, India renew 3-year Samjhota pact*

ISLAMABAD: Pakistan and India on Monday renewed an agreement on running the Samjhota Express between Wagah and Atari for another three years. 

Pakistan Railways General Manager (Freight) Gulrez Hashmi and Indian Railways Adviser (Traffic) SR Thakur singed the agreement at the Railways Ministry, where Railways Minister Sheikh Rashid Ahmed and IndiaÃ¢â¬â¢s Deputy High Commissioner in Islamabad Man Preet Vohra were also present. 

The agreement between India and Pakistan on rail communications via Wagah, which was renewed on January 20, 2004, expired on January 19 this year. 

Later, the Indian government asked Pakistan to extend the agreement for three months, till the renewal of the agreement. Finally, the two countries finalised the agreement at a meeting on Monday, extending it till January 19, 2010. 

After the meeting, Ahmed said that both countries had decided to add two passenger coaches each to Samjhota Express and Munabao Express. 

He said that it had also been decided to impose a penalty equal to 10 times of the base rate on passengers carrying luggage over 35 kilogrammes in Economy Class and 50 kilogrammes in First Class. Ahmed said that the Indian delegation had told him that India could help Pakistani relatives of the people killed in the Samjhota train bombings identify their relatives through DNA tests. 

He, however, said that he had not received any formal update from India on investigations into the Samjhota Express bombings. 

Vohra said that investigations into the train bombings were in progress.

http://www.dailytimes.com.pk/default.asp?page=2007\04\10\story_10-4-2007_pg7_2


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## Neo

*PNSC to buy two oil tankers, one bulk carrier *

KARACHI (April 14 2007): The financing deal of $135 million between Pakistan National Shipping Corporation (PNSC) and ABN-Amro Bank for acquisition of two oil tankers and one bulk carrier is likely to be finalised in a month or two.

Sources told Business Recorder that the Ministry of Ports and Shipping has given November 16, this year, to the national flag carrier for the purchase of all three vessels. In this regard, a technical team of PNSC has inspected some suitable vessels for purchasing, but they were waiting for finalising the financing deal of $135 million with ABM-Amro Bank.

Interestingly, the corporation did not seek any government guarantee for financial deal with the bank. The new vessels include two double-hull oil tankers of 'Aframax class' and one bulk carrier of 'Panamax class'.

The vessel acquisition plan would cost an amount of $150 million, of which $135 million has been arranged through financing from bank (ABN-Amro Bank), while remaining amount of $15 million would be provided by the corporation from its own financial resources.

Earlier, the Prime Minister Shaukat Aziz has given approval for the purchase of three vessels. The corporation fleet renewal and expansion plans are continuing with its efforts to add more tonnage to its fleet. The corporation obtained necessary approvals from the federal government that also appreciated the plan and it is expected that these vessels would be inducted in fleet in this financial year, 2006-07.

The national flag carrier have to replace its ageing oil tankers as one of its oil tankers would be out of business under restrictions of Condition Assessment Scheme (CAS) of International Maritime Organisation (IMO) in 2007, while another three tankers would fall under the same in 2010.

Lack of adequate fresh tonnage (new ships), due to past financial constraints has resulted in gradual deterioration of the PNSC fleet in terms of age profile and unless the trend was reversed, foreign vessels would grab a bigger chunk of the country's sea borne trade, the sources said.

The age profile of the fleet, however, is gradually deteriorating, as, in terms of dead-weight tonnage (DWT), over 62 percent of the fleet of 15 ships with about 636,182 DWT is over 26 years old, while remaining 38 percent is 23 to 18 years old.

With this age profile it has been estimated that over 60 percent of the fleet needed to be replaced within next four to six years. During the past three years, the corporation paid $21.9 million for the purchase of three oil tankers-MT Shalamar, MT Swat and MT Johar-while MT Lalazar was purchased for $13.5 million and a bulk carrier MV Kaghan for $15 million.

With the help of these two oil tankers the country's liquid cargo import, especially crude oil handling, would be enhanced. Now, the corporation manages a fleet of 10 multipurpose cargo ships, four Aframax tankers and one bulk carrier under its flag.

These tankers are over 20 years old, as new tankers are very costly and financial constraints have forced the corporation to opt for second-hand vessels in the past. The requirement of double-hull tanker, against single hull, came into force in 1998, and those countries operating old oil carriers have to replace them with the new version of tankers-double-hull.

A new tanker of double hull of 'Aframax' class costs around $40 million to $60 million, but PNSC had purchased four single-hull oil tankers at a cost of about $35.4 million. However, sources said that better maintained tankers have a longer life. "The purchase of all four tankers was arranged from our own financial resources, without borrowing a single penny from any financial institution," the source added.

At present, the corporation is lifting only 20 percent of the country's total national carriage that stands at 55 million tonnes, due to high growth activity in national economy.

The national flag carrier has already secured a 10-year "Contract of Affreightment" from January 20, 2003, for crude oil transportation with Pakistan Refinery Limited, National Refinery Limited and Pak-Arab Refining Company.

The corporation also transported 90,900 tons crude oil from the Gulf to Colombo for Sri Lanka-based Ceylon Petroleum Corporation and also got itself registered with the company.

In mid-1990, the Corporation had availed a loan option of $50 million from National Bank of Pakistan (Bahrain) for the purchase of three small size gearless container vessels. These three vessels were used for feeder services and have a carrying capacity of about 1100 'twenty equivalent units' (TEUs).

http://www.brecorder.com/index.php?id=550250&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Pesco to build five new grid stations *

PESHAWAR (April 14 2007): The Peshawar Electricity Supply Company (Pesco) will construct five new grid stations and would augment heavy power transformers of 19 over loaded grid stations in different parts of the province. This was told to 38th Board of Directors meeting of the company held under the chairmanship of Wing Commandar Jamshed Savul (Retd) at Wapda House Peshawar.

Chief Executive Pesco Brigadier Sakhi Marjan, Dr Mir Hatim Khan, Ahmed Nawaz Mughal, Members, and Pesco's senior management officers attended the meeting. The BoD also welcomed new member Dr Maqbool Khan on the board.

Anwar-ul-Haq Yousafzai Secretary Board of Directors presented a comprehensive report about the minutes of 37th Board of Directors meeting and after detailed discussion the minutes were approved with minor amendments. In order to overcome the problems of overloading causing frequent breakdowns and excessive line losses, BoD accorded approval for bifurcation of feeders so that the electricity problems could be solved.

The chief executive Pesco informed the directors that Pesco has electrified 2,300 villages last year while in the current fiscal year it has electrified 1,300 villages so far and efforts are underway to electrify all the villages of NWFP by the end of December 2007 as directed by Wapda.

The BoD directed the concerned field officials to further improve their performance and curtail the line losses and increase recovery pace and make all out efforts to the menace of illegal use of electricity. Chairman, Board of Directors stressed to start the campaign against illegal use of electricity.

The BoD was informed that after the October 8, 2005 earthquake, the most debilitating natural disaster hit Hazara and Azad Kashmir areas and destroyed the whole infrastructure of power distribution system. Pesco Management and its technical staff made hectic efforts and used all available resources and provided electricity to camps, temporary hospitals and public. The BoD was also informed that the ERRA has approved the PC-1 and immediately after release of loan the rehabilitation work on permanent basis will be started.

Briefing members of the Board of Directors Chief Executive Pesco Brigadier Sakhi Marjan informed that in order to overcome the problems of overloading Pesco will construct 5 new grid stations while heavy power transformers would be augmented in 19 over loaded Grid Stations under 6th STG Program.

Similarly, work on erection of 75km-long 132 KV Transmission line would also be made in the months to come. He told that Pesco has completed a number of developmental projects last year including erecting of HT & LT lines. He said that since July 2006, Pesco has completed 21 HT Line projects while work on 43 HT proposals is under way and would be completed soon.

Similarly work on 373 LT has been completed, and work on 843 LT projects has already been approved. By completion of these developmental works the Pesco distribution system would be improved and the low voltage problem would also be solved.

The BoD has accorded approval for recruitment of sons of 3 martyred Pesco employees and 2 injured workers and also approved Rs 200,000 compensation grant for each to Rural Sub Division D.I.Khan meter reader & Driver of Mardan who sacrificed their lives during performing their duty.

The Pesco Board of Directors appreciated the overall performance of the Pesco team and expressed the hope that they would work with same spirit and zeal for company's welfare and to solve the consumer's complaints at their doorstep. The board of directors also approved a number of technical and managerial matters.

http://www.brecorder.com/index.php?id=550289&currPageNo=1&query=&search=&term=&supDate=


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## Neo

April 15, 2007 

*PIA to launch Quetta-Gwadar flights*

QUETTA, April 14: Pakistan International Airlines (PIA) will launch direct flights between Quetta and Gwadar from April 20. An announcement to this effect was made by Balochistan PIA general manager Asghar Mohyuddin Verdag at a press conference here on Saturday.

He said that in the first phase the Quetta-Gwadar flight would be available twice a week. He said that flights between Quetta and Turbat would also be started.

He said that ever since the Gwadar port was made operational, people had been making demands for direct flights from Quetta.

He said that despite shortage of aircrafts, the PIA management has decided to link Quetta with the new port city without any further delay. 

He said that PIA was offering concession tickets on this route with the aim to provide maximum facilities to the people of Gwadar.

A PIA flight would come to Quetta via Karachi for Gwadar on every Friday while every

Monday the route of the flight would be Karachi-Gwadar-Quetta-Turbat and Karachi.

http://www.dawn.com/2007/04/15/nat10.htm


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## Neo

*'Iran and Pakistan rail link to be built in 2008' *

TEHRAN (April 16 2007): Iran's rail network will be linked to Pakistan in next Iranian calendar year (to start March 21, 2008), Iranian Minister of Roads and Transportation Mohammad Rahmati said.

In talks with Rahmati, visiting Pakistani Minister for Communications Muhammad Shamim Siddiqui noted that most of travellers entering Iran through Quetta, west central Pakistan, are pilgrims that along with their families visit holy city of Mashhad, north-eastern Iran. He called for building of a railway to directly connect Mashhad.

Rahmati said railway network would connect Iran to Pakistan via Iranian city of Zahedan. He expressed hope that building of railway will lead to boosting of trade relations between two neighbouring nations.

Iran's minister explained that building of a highway to link south-eastern Iranian city of Chabahar to Pakistan's south-western city of Gwadar is a prioritised project of the ministry.

http://www.brecorder.com/index.php?id=551382&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*500 mw power plant: PPIB opposes Wapda agreement with Qatar government *

ISLAMABAD (April 16 2007): The Private Power Infrastructure Board (PPIB) has refused to be part of the 'controversial agreement' being negotiated between the government of Qatar and the Ministry of Water and Power for setting up a 500 mw combined cycle power plant at Chicho ki Malian, sources told Business Recorder.

"PPIB has not participated in any discussion held for awarding the project to the Qatari government," sources quoted PPIB Managing Director Khalid Rehman as saying in a letter on March 31, written to Joint Secretary, Water, Zahir Shah Mohmand, a copy of which was made available to this scribe.

Any material deviation from the ECC-approved and market-tested security documents, particularly in the areas of governing laws, dispute resolution, risk or reward framework would adversely affect the independent power producer (IPPs) program, said Rehman, a former employee of Asian Development Bank (ADB).

The PPIB chief was of the view that agreements with Qatar government should be in line with those already negotiated with other IPPs, sources said.

They said that the Finance Ministry had earlier turned down a proposal of Wapda to set up 450-500 mw thermal power plant at Chicho ki Malian (Sheikhupura) and 100 mw at Khuzdar (Balochistan) in the public sector.

In the first place, the government had decided, in principle, to establish three thermal power stations of 200 mw each in Sheikhupura, Faisalabad and Khuzdar, but the Prime Minister did not clear the proposal.

The basic issue was said to be financial commitment for those two projects as the Finance Ministry had refused to facilitate the utility, sources added.

Finance Ministry's view was that it had no objection to the establishment of thermal power stations, but as for as financing was concerned, Wapda had to make provision from its own resources.

The PPIB has, however, conveyed to the concerned quarters that if the government, or Wapda, or both, were unable to arrange funds, it was ready to offer these projects for international competitive bidding (ICB).

In September last year, the Prime Minister had directed the Ministry of Water and Power and Wapda to ensure availability of energy to maintain the projected growth momentum.

"Concerted efforts be made to increase power generation capacity from hydel, thermal, alternative energy sources and nuclear means as well as required mix of all these be ensured to meet peak and lows in demand, both seasonal and locational," sources quoted the Prime Minister as directing the concerned departments.

They said that a committee on power demand-supply position, headed by Water and Power Secretary Ashfaq Mahmood had recommended that public sector generating companies (Gencos) should make investment for two 450 mw combine cycle power plants which would reduce the time spent on arranging funds and tariff negotiations. But, at the same time, it was also observed that it would be a departure from the existing approach of inducting private power units.

However, the Wapda Chairman observed that the schedule proposed by the committee was tight, and proposed commissioning dates of the units on open cycle were in September 2007 and combined cycle by March 2008.

Later, Prime Minister Shaukat Aziz decided that no thermal power plant would be set up in the public sector. But when it was felt that the situation was worsening, the earlier decision was nullified, sources added.

http://www.brecorder.com/index.php?id=551339&currPageNo=1&query=&search=&term=&supDate=


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## Neo

*Afghanistan seeks access to Pak ports to lift ATT cargoes *

KARACHI: Afghanistan has sought direct access to Pakistani ports to lift cargoes imported from different countries as a transit facility, through its own transport, sources in Afghan Transit Trade (ATT) said on Tuesday.

A delegation of Afghan traders and trade officials recently visited Pakistan and held meetings with authorities concerned and local custom agents, who facilitated ATT from Pakistan.

âOne of the major demands, Afghan traders and officials made before the Customs official and CBR (Central Board of Revenue) was direct role of Afghan importers and government in transportation of ATT cargoes from Pakistan to their final destination in Afghanistan,â said a source close to the negotiations between the two sides.

âThough, the Afghan side didnât define the way they wanted to lift the cargoes from the Pakistani ports, it seemed that they would like their own transport to enter Pakistan, load the cargo and then get back to Afghanistan.â

He said though the authorities had not shown any reaction yet, it had not inspired the local customs agents, who played the most important role in transportation of ATT cargoes.

âBut no decision has been made yet, neither the authorities concerned have given any timeframe to set the issue,â said the source. âThe Pakistani side is more interested to make the existing ATT system more transparent and the recent meeting with the Afghanistan was part of the same objective.â

Pakistan and Afghanistan in late 60s entered into an Afghan Transit Trade Agreement (ATTA), which allowed goods bound for the landlocked Afghanistan to go through Pakistan free of duty. Initially the trade was restricted to few products, as it carried a list of more than 50 products, on fears of smuggling, which could trigger flood of smuggled goods into local market.

However, rising demand in the neighbouring country has convinced the authorities to remove most of the products from the negative lift, which has now been reduced to four, which includes cigarettes, automobile parts and right-hand drive vehicles.

âCurrently, Pakistan and Afghanistan are drafting an agreement to enhance ATT with focus on volume increase and minimum documentation requirements,â said the source.

He said the agreement was due to be signed within next few weeks and it required a nod from top levels of both sides.

âThe proposed agreement offers benefits to the ATT with incentives from both sides of the border, which would expedite trade process and ultimately cut transportation cost of the consignments,â he added.

Pakistan in September 2006 made a major move when it decided clearance of ATT consignments through âOne Customsâ project to regulate trade between the two countries. The clearance process under the system is set to become operational after meeting all requirements, including training of customs officials and accord with the Afghan government.

Currently the traders have the option to use Pakistan Customs Computerised System (PACCS), a paperless online system where all declarations are processed electronically. But the system is unable to process the ATT invoice.

âWith such automation, EATTS (Electronic Afghan Transit Trade System) would be launched for online processing of ATTA documents,â said the source. âIt would include filing of documents, sealing of containers, verification of documents, monitoring and other processes related to Afghan transit trade.â

Imports under ATTA started increasing some three years back as what traders said improving posture of the landlocked Afghanistan and increasing construction activity paved way for increased trading activity in the neighbouring country.

The imports under ATTA touched Rs20 billion mark during financial year 2003-04 first time ever up by 48.7 per cent compared to figures of 2002-03 and crossed almost Rs30 billion by the end of June 2006.

http://www.thenews.com.pk/daily_detail.asp?id=51683


----------



## Neo

*Private sector may build, operate airports *

By Saad Hasan

KARACHI: A proposed aviation policy that seeks to liberalise the countryâs aviation industry and promote competition among domestic airlines has allowed the private sector to construct and operate commercial airports to meet expected growth in air traffic.

According to the draft National Aviation Policy 2007, the private sector will be allowed to construct and operate airports and generate non-aeronautical revenues.

Director General Civil Aviation Authority (CAA) Farooq Rehmatullah, who has spearheaded the aviation policy and ambitious reforms in the CAA itself, said the private development of airports was aimed at enhancing connectivity of rural areas with the rest of the country.

âSixty per cent of the population is based in rural areas. Their purchasing power and per capita income has increased but they have to travel long distances to reach the airports,â he said, adding airstrips in their areas would generate feeder traffic for bigger airports.

Specifically citing semi-industrial cities like Gujrat and Sahiwal, he said there was a lot of passenger traffic but no airports. âThese airstrips can be used by 12 or 15-seater fixed-wing aircraft to provide feeder service to main hubs.â

The policy draft that has been uploaded on the CAAâs website for public feedback also envisages selective fifth freedom traffic rights to legacy carriers on reciprocal basis.

Rehmatullah explained this would allow airlines like Lufthansa and Cathay Pacific Airways to operate connecting flights through Pakistan. 

âComing from east and going to west, these airlines would drop and pick passengers at Karachi and Lahore.â

Asked as to how this would safeguard the interests of domestic carriers, he said: âWhile setting the objectives of this (draft) policy we asked; should we serve the PIA (Pakistan International Airlines) or the public?â The latter was given priority, he added.

The draft policy has also made it mandatory for Pakistani airlines to register their aircraft domestically and stopped them from permanently inducting foreign registered aircraft on wet lease.

It says temporary induction of wet leased aircraft, which are provided by the lessor along with crew, maintenance and insurance cover, will be allowed for a limited period of time.

âRequirement of enhanced paid-up capital, fleet registration, its size and restriction on wet lease operations on foreign registered aircraft in the country will ensure better safety oversight besides giving boost to local job market and training activities,â it said.

While paid-up capital for Regular Public Transport licence has been increased to Rs500 million, temporary induction of aircraft on wet lease has been allowed for Hajj and Umrah operations.

Aircraft on wet lease are permitted for any other reason âfor maximum 90 days and up to 25pc of the registered fleet capacity.â

http://www.thenews.com.pk/daily_detail.asp?id=52172


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## Neo

*Inadequate infrastructure causes $4bn loss *

LAHORE: Minister of State for Finance Omar Ayub Khan has said Pakistanâs economy is losing $4 billion annually due to flawed and inadequate infrastructure that needs up-gradation on a priority basis.

He was talking to newsmen at the zonal office of the Federation of Pakistan Chambers of Commerce and Industry here on Friday.

He said despite many challenges the economy was growing at a pretty fast pace, which was evident from the fact that the GDP had more than doubled from $62 billion in 1999 to $135 billion.

He said âas far as the federal government is concerned, it is implementing Musharrafâs formula on NFC, giving an increased share of 45 per cent to the provinces in the federal divisible pool this year.â It would be increased by another one per cent in the next budget, he added.

He said other issues in the National Finance Commission were related to the provinces and the federal government would accept whatever consensus they developed in that regard.

Omar Ayub said the cost of doing business was basically linked with productivity and improvement in human resource would increase labour productivity in the country, which âis very low at presentâ.

He said in fact there was dearth of skilled labour force in the country. 

âUnemployment is not impacting skilled manpower. It is the problem of those who possess no or low skills.â

He said increased demand in the domestic market indicated the economy was moving and the impact of economic growth had started reaching the grass-root level.

He said the government had no magic wand to change the entire economic scenario and it was leading the nation to economic progress by assuring consistency of policies and facilitating the private sector by assuring them of adequate credit and enabling atmosphere for industrial activities.

He said the challenges faced by the economy included energy, security, infrastructure and human resource. Big reservoirs were essential for sustained economic growth as they would provide much-needed additional water and power to the country, he added.

Kalabagh dam, he said, would be constructed after national consensus on the project.

He said Pakistan was working on the gas pipeline project with Iran as the country needed natural gas for increasing energy requirements. 

He said economic ties with Russia were improving.

Earlier, the FPCCI members were briefed about the Competitiveness Support Fund by a team of experts.

http://www.thenews.com.pk/daily_detail.asp?id=52175


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## Neo

*Work on terminal expansion starts *

KARACHI: Malaysian Minister for Plantation, Industries and Commodities Peter Chin Fah Kui on Friday inaugurated an expansion project of Mapak Qasim Bulkers (MQB) Terminal here at Port Qasim. 

With this expansion the storage capacity of the terminal will increase to 100,000 metric tons of edible oils, molasses and other liquid cargoes. The Malaysian minister led a high-powered delegation from his country. The project is a joint venture of FELDA, K L Kepong, IOI Corporation of Malaysia, and Westbury Group of Pakistan. 

The MQB Terminal is operational from the 1995 with a capacity of 24,000 and is the largest storage terminal facility at Porrt Qasim and Karachi Port. Earlier, Chairman Port Qasim Authority (PQA) Vice Admiral M Asad Qureshi briefed the visiting delegation on the performance of PQA including its future development vision. He said PQA is currently pursuing a large number of projects for capacity enhancement and industrialisation for attracting foreign direct investment (FDI) and simultaneously undertaking major infrastructure development to enhance efficiency of the port. 

The chairman maintained current handling capacity of nine berths is 31 million tones per annum and as per future development plan, number of terminals/berths shall further be increased by nine with additional handling capacity of 50 million tones per annum. With the completion of these terminals by 2010, increase in berths shall be 100 per cent while annual handling capacity shall be increased by 161 per cent, he said. 

To a question, the delegation was told that there was no restriction from the Pakistan government on foreign investment or foreign participation in any development project in the country. 

Speaking on the occasion, the Malaysian minister highly appreciated the development vision of the PQA and termed his visit very successful. He said that the leading group of Malaysia was already attached to the ongoing Jetty development project at PQA, which will play role as nucleus for future projects from Malaysia for Pakistan. 

He also said that the further enhancement of the trade ties between the two sides will create more opportunities for both the countries.

http://www.thenews.com.pk/daily_detail.asp?id=52178


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## Neo

*Air Blue to start Islamabad, Manchester flights *  

ISLAMABAD (April 22 2007): Air Blue will start Islamabad-Manchester flights from June 1, this year, it was announced by its Chief Executive Officer (CEO), Shahid Khakan Abbasi, here on Saturday at a dinner hosted by him.

Air Blue is a private sector airline, operating on various domestic and international routes and its growing fast. Shahid Khaqan appreciated Air Blue's business partners commitment for Air Blue and hoped that they will show the same commitment to secure more business for his airline to get good dividend on their investment.

Shahid Khaqan Abbasi said Air Blue has purchased 6 new Airbuses, which itself showed that it was a strong airline having the best potential to grow and provide the best services to its passengers. Shahid Khaqan Abassi added Air Blue will spend 300 million dollar on the purchase of the new Airbuses.

He said Air Blue enjoys good reputation and it will not compromise on the quality of services. He said Air Blue was also working on other international routes to further expand and get a sizeable business from the global market. He noted that Air Blue was minimising impact of growing oil prices through best business tactics.

Air Blue provides e-ticketing facility to its passengers and its fare was also lesser than PIA and other airlines. Shahid Khaqan Abassi maintained that Air Blue's travelling was 83 percent, which was a record for any private sector airline.

http://www.brecorder.com/index.php?id=553886&currPageNo=2&query=&search=&term=&supDate=


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## Neo

Good move! Competition will finally force PIA to improve service and quality.
Has anyone of you guys flown with Air Blue yet?
How's the service?


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## Neo

*Pak-China rail link to boost economic activity in South Asia: Rashid *

ISLAMABAD: April 22, 2007: The work on feasibility study for developing rail-link between China and Pakistan was being conducted at a pace and would be completed within this year.

This was stated Minister for Railways Sheikh Rashid Ahmed here on Saturday while talking to Zhao Jun, the Vice President of China National Machinery Corporation (CNC) at the Ministry of Railways.

He said this link would provide Pakistan and China ample opportunities to explore vistas in economic and social sectors with European countries and Central Asian States.

The work on Quetta-Kandhar (Pakistan-Afghanistan) and Taftan-Zahidan (Pakistan-Iran) sections was already underway which would ultimately give boost to the economic ventures in this part of the South Asia and rest of the world, the minister added.

The minister elaborated the vision of the President of Pakistan in making Pakistan the economic bridge between the countries of Asia and Europe through sea, road and rail network. He apprised of the delegation about Pakistan's efforts in turning it into an energy corridor for rest of the world by next decade.

He said that besides the European world, Pakistan had been focusing on Russia, China, Iran and Afghanistan to grab economic opportunities from these countries. He said that Foreign Direct Investment (FDI) has increased manifold in the last seven years due to opening of the Pakistan's economy and the consistency of fiscal policies.

As a result, Pakistan managed to achieve record growth rate during this period, the minister maintained.

The minister offered the Chinese Railways to invest in Pakistan Railways as the country wanted to bring it at par with rest of the world. He urged the Chinese delegation to make their participation in introduction of latest signalling system and high speed rail track by Pakistan Railways.

Pakistan was keen to start Metro service in 8 major cities, a high speed train between Lahore and Rawalpindi, the first ever project in South Asia, he added.

A briefing was given to the Federal Minister for Railways where the Chinese firm expressed keen interest in supply of fast speed passenger coaches to Pakistan Railways.

The minister was apprised that the firm that has been supplying coaches to various railways in the European Countries besides to the Railways of China. The minister was told that the coaches built by the firm could run between the range of 250 to 300 Km per hour which also meets the requirement of Pakistan Railways for running fast trains in different parts of the country.

Sheikh Rashid said that Pakistan and China enjoy strong brotherly and friendly relations which are deeper than an ocean and higher than Himalaya.

www.brecorder.com


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## Neo

*Mass transit scheme needed to make roads safer *

KARACHI (April 25 2007): Speakers at the National Road safety Conference on Tuesday stressed on the need to establish a 'safe' mass transit to scale down the increasing road accidents. They observed that in the absence proper infrastructure, children have been victims of reckless driving.

They urged the decision makers to draw up plans for ensuring road safety on country's roads in general and city and province in particular so that every citizen could enjoy a sense of protection during travel and commuting. They demanded of the government to ensure committed funding to the road safety programme so that it could be carried out in line with experts' recommendations on set international rules.

These views came up from experts at a one-day conference organised by the Indus Motors Company Limited in collaboration with Sindh Education Foundation at a local hotel on Tuesday to mark the UN Global Road Safety Week being observed from April 23 to 29, 2007.

Speakers included: Parvaiz Ghias, CEO Indus Motor Company, Dr Rasheed Jooma, Director, Jinnah Post Graduate Medical Center, Aijaz Ali Khan, DG, Road Sector Development Directorate, Sindh Government, Anita Ghulam Ali, MD Sindh Education Foundation, Asad Jahangir, former IG Sindh, and DIG Traffic, Amanullah Ansari, WHO National Programme Officer, and Waseem Haider, Advisor to Sindh Chief Minister of Home Affairs.

Wasim Akhtar who addressed the concluding session of the conference. He was also the chief guest of the session in place of Governor Sindh, Dr Ishratul Ibad Khan. He suggested that helmet for motorcyclists should be made compulsory so that motorbike-riders could be more protected against road accidents.

He urged the traffic police department to implement helmet-related laws strictly which could only be made visible through the department efforts and hoped it would bring about a positive change in the society. Calling upon the stakeholders, he said that they should play their due role in strengthening the road safety culture in the country.

Other speakers pointed out that physically challenged people face serious road communication problems due to unavailability of proper road infrastructure including pedestrian bridges in the city.

They said that road safety audit was necessary to ensure road safety. They said that lack of bus-stands was the primary hurdle in the smooth implementation of traffic laws and safeguarding the public from road accidents. They suggested that bus-stands should be designed and located in a systematic manner, otherwise it had been causing serious problems.

They urged the government to establish pedestrian zones in cities of the province to allow a free pedestrian moment without any trouble. They said that traffic-effect study was important to streamline the vehicular traffic. They criticised that only few traffic engineers were in the country to implement the road safety in a proper way, which had badly effected the traffic system in the country.

They also said that road safety should be included in academic curriculum so that children could be acquainted with traffic laws and road safety codes in their early age.

Pertaining to healthcare sector's role, they said that regionalisation of trauma center would help recover the severe mentally injured in road accidents. They negated that concept of only few trauma centers should be set up in the cities.

Traffic system was discussed a major tool to enhance the road safety, experts said that traffic department should be provided with the latest equipment to ensure road safety.

They said that cases of road accident should be dealt at the traffic police stations instead of police stations, which would not only reduce time to get them early settled but also let the traffic official know how to improve their capacity of investigation and plans implementations.

http://www.brecorder.com/index.php?id=555665&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Gwadar port to open new business avenues: Soomro *

ISLAMABAD (April 25 2007): Acting President Mohammedmian Soomro on Tuesday said that opening of Gwadar Port and construction of Beijing Expressway had opened new avenues for the business activities in the region. He was talking to Director, Head of Sales Africa and Middle East of Swiss International Airlines, Flex Rodel, who called on him at his residence here, says a press release.

Soomro said these projects had given a golden opportunity to businessmen to market their products to China and Central Asian States. It was a favourable time for the airline companies to introduce their flights on these routes, he added.

The Acting president informed that more flights to China had already been agreed upon and the construction of Expressway to Beijing would help in further transportation of goods to China. He called upon the world business tycoons to make plans, well in advance for the transportation of their goods to the huge markets of China and the Central Asian States. Soomro also informed Rodel that New Islamabad Airport would have all the modern facilities and it would be ready within the next three years.

http://www.brecorder.com/index.php?id=555697&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Karachi Railway Div surpasses revenue targets *

KARACHI (April 30 2007): The Karachi Railway Division has been able not only to meet but surpass the revenue targets given on account of freight and passenger traffic. This can be judged from the point that Pakistan Railway met 1,000 wagons target of its entire system in the month of March, with 50 percent share contributed by Karachi Division alone and the remaining by six other divisions.

The Divisional Superintendent Railway, Karachi Division, Mir Mohammed Khaskheli told APP that Karachi Division was given passenger revenue target of Rs 2,562 million for the current financial year as against Rs 2,285 million last year and achieved a revenue of Rs 2,212 million till March 2007.

"We achieved this despite the fact that Ranpathani Bridge, which was washed away by heavy rains, hampered the railway traffic for more than 45 days". Similarly, on the freight side, Karachi Division was given a revenue target of Rs 3,162 million as against 2,298 million last year and so far the Division had been able to earn a revenue of Rs 2,343 million, higher by Rs 42 million over the last year's target.

"We earned this revenue despite Ranpathani Bridge episode", Khaskheli informed. The DS Railway said that for the last three months, some 27,000 passengers travelled daily to upcountry destinations through 23 mail and express trains, showing a significant increase in the occupancy ratio of trains.

Talking to APP, the Deputy DS Railway Maqsood-un-Nabi pointed out that in view of growing number of passengers as well as trains and resultant increasing number of inquiries, the inquiry information office "117" had been renovated and upgraded with number of telephone lines increased from 6 to 16, which would be further raised to 20 soon.

He said the new inquiry office had been set up at DS Office. To a question the DS Railway said in view of growing freight business because of better marketing practices, the railway had increased the number of freight trains from Karachi, from 7 to 9.

Recently, he informed, a dedicated express freight train had been pressed into service for Multan and Faisalabad. It operates from Karachi Bandar, an area, which remained unutilised for long and many organisations had been eyeing on its land.

He said another express freight train was pressed into service, operating from the city station. He said that at present a wagon yields Rs 65,000 for round trip while railway's freight tariff was about 30 percent less than the road cargo tariff. The railway carries cargo to destinations in 35 hours while trucks take 2-3 days and that is why the businessmen are preferring to send their cargo through railway.

http://www.brecorder.com/index.php?id=557752&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*43-kilometre portion of N-75 to be opened by December: NHA *

ISLAMABAD (April 30 2007): Construction work of Islamabad-Muzaffarabad Highway (N-75) is in progress and its first 43-kilometre portion will be opened for traffic by the end of current year, sources in National Highway Authority (NHA), Ministry of Communications told APP on Sunday.

"The highway is of strategic importance and links Islamabad, with Azad Jammu and Kashmir Capital, Muzaffarabad. Under the first phase, a four-lane divided carriageway that links Satrameel (Islamabad) and Lower Topa in Murree Hills is being constructed by a local contractor and over 80 percent work has been completed", the sources said. Its scope of work includes construction of five bridges and 200 cross-drainage structures.

After opening of N-75, he added, the distance between Islamabad and Murree would be reduced to just 43 kilometres and the journey time would be halved from 1.5 hours to only 45 minutes.

Japan government is providing assistance for the construction of 65-kilometre stretch of Islamabad-Muzaffarabad dual-carriageway between Lower Topa and Kohala Bridge, the sources told.

"The bends in this piece of road will be removed and all dilapidated bridges will be constructed anew. After realignment and reconstruction of this stretch of the road, the journey time between Islamabad and Muzaffarabad will be reduced from 4.5 hours to 3.5 hours," the sources added.

http://www.brecorder.com/index.php?id=557734&currPageNo=2&query=&search=&term=&supDate=


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## Neo

Monday, April 30, 2007 

*India counselling Pakistan, others to develop railway corridors*

NEW DELHI: India is teaming up with neighbouring countries including Pakistan to develop global railway corridors to cut down travel time. 

India is counseling Pakistan and others to develop rail links to the Middle East, boosting trans-shipment of goods and services in the strategic region, Indian media reported on Sunday. 

India is following a policy of international corridors. In the first step, it is trying to link the railways of India and Myanmar over a distance of 330 kilometres, media reports quoted Railway Ministry sources as saying.

The reports said that this would create a link between India and Southeast Asian states including China. The exercise will cut traveling to one-fourth the time taken by sea route, the report added. 

The eastern international corridor will link Kohima in the northeastern state of Nagaland with Myanmar. It will lead to railway routes connecting India with Vietnam, Cambodia and Laos on one hand and with economically developed southeastern China and Russia on the other.

http://www.dailytimes.com.pk/default.asp?page=2007\04\30\story_30-4-2007_pg7_17


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## Neo

*Dubai firm to build hotel in Pakistan *

DUBAI (May 01 2007): Istiithmar Hotels, a subsidiary of Dubai-based Istithmar, is planning to build more than 50 budget hotels in the region within the next five to six years. The company is planning to invest 400 million dollars in developing hotels in 17 countries across the Arab region, Pakistan and India.

The new hotels will have a total capacity of 3,800 rooms, Chief Executive Officer of Istithmar Hotels was quoted as saying by Gulf News on Monday.

http://www.brecorder.com/index.php?id=558054&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Prime Minister inaugurates IC3 project at Port Qasim *

KARACHI (May 01 2007): Prime Minister Shaukat Aziz on Monday inaugurated $8 million international container security project known as IC3 at Port Qasim to facilitate faster clearance and shipment of export cargo at economical rates to USA.

This integrated scanning facility is the first ever project launched by US Customs anywhere in the world which will not only save freight and examination cost but also require no further inspection of goods.

Speaking on the occasion, Prime Minister said that this state of the art facility would ensure the faster flow of Pakistani exports to the United States. He said that USA-Pakistan relations have a close cooperation in a host of areas, diplomatic, political, security, defence, trade, investment, science and technology, etc.

He said the United States and Pakistan have been sharing with many other countries in the world their common value of peace, harmony and helping the world to be a safer place to live. He said the Pakistan was working with USA on many more economic engagements. "Special arrangements for our border zones, IOZs, the bilateral investment treaty are on the table with the USA. We see greater economic cooperation with the US and cooperation in all areas", he added.

Shaukat Aziz noted that IC3 project is a manifestation of the growing and solid and strong ties Pakistan had with the United States over many decades. He said the new facility would allow the shipment of pre-cleared goods from Port Qasim to enter the United States without any further check. This will reduce door-to-door time from Pakistan suppliers to US buyers, he added.

He opined that the USA was the major trading partner of Pakistan and this facility would allow Pakistan companies to supply their products to US companies just in time. The Prime Minister said that Pakistan was developing a trade corridor to improve the logistic chain to move goods speedily and efficiency.

This will cut the travel time between Karachi to Peshawar and major cities by half. This highway will be linked to Afghanistan and Central Asian Republics, he pointed out. He invited Afghanistan and Central Asian Republics to utilise this integrated facility to ship their products to United States.

Referring to Pakistan's economy, Shaukat said that the country was witnessing a higher growth at an average of 6 to 8 percent over the last several years. The per capita income will increase from $846 to $950 by the end of current fiscal and cross $1000 by the June of 2008, he said amid applause.

He pointed out that the leading global bank Goldman Sachs has identified Pakistan as one of the 11 most promising countries in the world in terms of economic growth, potential and future.

He said that Pakistan will have a highest ever foreign investment of more than $6 billion by the end of June this year. This investment is coming from USA, European Union, Middle East and Far East, he added. He said that country's forex reserves have crossed $13.6 billion, the all time high since Independence.

Earlier, US Charge d' Affairs Peter W Bodde said that this facility was a part of the integrated cargo container project which will speed the flow of goods from Pakistan and the Central Asia region to US market which increasing US's own security.

He said Port Qasim is the first of only three locations in the world selected for this testing phase, reflecting the close cooperation between USA and Pakistan. Assistant Commissioner Department of Homeland Security (DHS) Jayson Ahern read out the letter of Secretary DHS Michael Chertoff on the occasion. Earlier, on his arrival, Prime Minister unveiled the plaque to launch the scanning facility.

Sindh Governor Dr Ishratul Ibad Khan, Chief Minister Sindh Dr Arbab Ghulam Rahim, Port and Shipping Minister Babar Khan Ghauri and Information Minister Mohammad Ali Durrani were also present on the occasion.

http://www.brecorder.com/index.php?id=557963&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*US launches container security project in Pakistan *

KARACHI (AFP) - The United States has launched a facility in Pakistan aimed at boosting security and speeding up the flow of goods. 

The international container facility has been launched at Port Qasim in the southern port city of Karachi, where US-bound goods from Pakistan and Central Asia will be scanned before being shipped to the United States.

"This facility is both a preventive tool in the global war on terror that will make our borders safer and will also increase the economic efficiency of Pakistani exports," US Charge d'Affaires Peter W. Bodde told a ceremony.

"Port Qasim is one of only three locations in the world selected for this testing phase, reflecting the close cooperation between our two countries," he added.

As a joint effort with the Pakistan government, the facility would test the feasibility of using scanning technology to inspect every container bound for the US, he said.

"It will also increase the security of the international supply chain for shippers utilising Port Qasim," he added.

Pakistan's ports and shipping minister Babar Ghauri said the new system would boost trade and security between Pakistan and the United States and another system would be installed at Karachi port.

Pakistan, a key US ally in the global fight against terrorism, has arrested more than 700 Al-Qaeda fugitives who fled to the country after the fall of hardline Taliban regime in neighbouring Afghanistan.

The South Asian country provided the US forces with its airbases and intelligence to oust the Taliban regime after the September 2001 terrorist attacks in the United States.

http://news.yahoo.com/s/afp/20070501/wl_sthasia_afp/pakistanustradeshipping_070501064433


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## Moin91

Neo said:


> *Dubai firm to build hotel in Pakistan *
> 
> DUBAI (May 01 2007): Istiithmar Hotels, a subsidiary of Dubai-based Istithmar, is planning to build more than 50 budget hotels in the region within the next five to six years. The company is planning to invest 400 million dollars in developing hotels in 17 countries across the Arab region, Pakistan and India.
> 
> The new hotels will have a total capacity of 3,800 rooms, Chief Executive Officer of Istithmar Hotels was quoted as saying by Gulf News on Monday.
> 
> http://www.brecorder.com/index.php?id=558054&currPageNo=2&query=&search=&term=&supDate=



Hmm Good news 
In which city will this hotel build?


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## Neo

Probably Karachi, Lahore and Islamabad, no locations have been released yet.


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## Neo

Thursday, May 03, 2007 

*Pakistanâs air traffic control system most ill-equipped, NA told*  

ISLAMABAD: The country's air traffic control system is working without even a single calibration aircraft that controls the entire air traffic, while the radar system installed at airports has long outlived its utility, Parliamentary Secretary for Defence Major (Retd) Tanveer Hussain told the National Assembly on Wednesday.

In response to a calling attention notice, Hussain told the house that the country had only one 'Beach King Air 200' aircraft to control air traffic which met an accident in November last year and was still under repair in Dubai.

He said the Civil Aviation Authority (CAA) had temporarily hired a PAF plane but it was not fully equipped with the technology required for landing and take-off of aircraft, and radar systems.

Tanveer also revealed that an Indian passenger aircraft hovered over a Pakistani airport and went back but the Civil Aviation Authority (CAA) system could not detect it.

He told the house that an F-27 aircraft that crashed in Multan last year had missed its direction and was heading towards India when a lady officer at the control room diverted the plane to Multan before its crash. Hussain said that an inquiry report on the incident was complete but he and the defence minister could not access it.

To a question, he said that DG CAA did not have even the basic knowledge about civil aviation, as he had the oil industry background. 

He told a questioner that some CAA officers were going on foreign tours without permission of the defence ministry and the minister had ordered an inquiry into the mater. He further told the house that the French radar system purchased decades ago had completed its life, needing immediate replacement.

The speaker took cognizance to the issue and directed the defence ministry to give a detailed briefing to the parliamentary secretary on the CAA affairs. The parliamentary secretary will report to the house by May 15.

http://www.dailytimes.com.pk/default.asp?page=2007\05\03\story_3-5-2007_pg7_27


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## Neo

*'No response to Turkish open sky policy' *

KARACHI (May 05 2007): Turkish government's offer of open sky policy to Pakistan, whereby the national airlines of the two countries would be free to operate any number of flights between the two countries, has not been responded to by Pakistan.

This information was given by the representative of Turkish Airlines during the meeting of the Ambassador of Turkey with the Federation of Pakistan Chamber of Commerce and Industries (FPCCI) President and members, held at Federation House here recently.

Turkish Airline was ready to operate daily flights from Istanbul to Karachi, Lahore and Islamabad, which will help the businessmen of the two countries to meet frequently, and in turn would promote trade and economic cooperation between them.

Another impediment in the promotion of trade between Pakistan and Turkey was the reluctance of Pakistan's commercial banks to accept guarantees given by Turkish banks and insisted on their provision through international banks, said Turkey-Pakistan Business Council Co- Chairman Ali Irvali, who also attended the meeting.

http://www.brecorder.com/index.php?id=560144&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Wide scope exists for private sector in Railways: Rashid *

RAWALPINDI (May 05 2007): Private sector has a lot of investment scope in Pakistan Railways as this is the fast growing communication sector, which offers high profit to the investors. Sheikh Rasheed Ahmed, Federal Minister for Railways said this while addressing the launching ceremony of non-stop "Rawalpindi Express" at Rawalpindi Railway Station here on Thursday.

"Private Sector should come forward with open mind and run trains to provide better travelling facilities to the people", the minister said. He said the government was ready to give private companies prime time facility for running trains with modern facilities. A scheme was also on the cards to return some percentage of fares to passengers in case trains arrive late at the destination adding that this would improve railways' image and make it trustworthy organisation, he added.

He said that the Rawalpindi Express was being launched between Lahore and Rawalpindi on experimental basis adding that the service would be extended to Karachi in near future.

He said that President Musharraf, during his recent visit to Spain, had asked the Spanish president to provide feasibility of bullet train service between Lahore and Rawalpindi and added that the ultimate goal of Railways would be to provide cheap, safe and faster travel service to the masses.

He said that Pakistan Railway would now work on priority basis to launch mass transit services in four big cities of Pakistan, including Rawalpindi, Islamabad, Lahore and Karachi, adding that the service would help reduce traffic problems to a great extent.

Later, the mass transit service would be extended to other cities, the minister said. He said that there had been increase of 2.5 million passengers in the past few months, adding that the number would be raised up to 10 million next year. He said that the freight would also be increased from 4 percent to 10 percent.

Rashid said that the double track between Karachi and Lahore would be completed by December this year adding that feasibility study of doubling tracking the other railway tracks would be started soon. He said that Railway would enhance salary of its employees gradually adding that they would listen to good news in the upcoming budget.

It is worth mentioning here that the Rawalpindi Express would leave Rawalpindi for Lahore at 20:00 hours and reach the destination at 23:30 hrs. The train would leave Lahore at 09:00 am and would reach Rawalpindi at 12:00 noon.

http://www.brecorder.com/index.php?id=560163&currPageNo=2&query=&search=&term=&supDate=


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## Neo

May 06, 2007 
*Rs30bn needed for road maintenance*

RAWALPINDI, May 5: The government needs at least Rs30 billion a year for at least five years for maintenance of roads at national and provincial levels, according to a new Asian Development Bank study.

The Punjab government alone needs Rs8 billion for its current upkeep. In Sindh, the only province with an operating computer-based road asset-management system, the maintenance backlog for the 8,700 kilometres of provincial roads is estimated to be Rs3.8 billion while the provinceâs total backlog is estimated to exceed Rs8 billion.

The NWFP needs Rs500 million a year for five years to eliminate the maintenance at district level, says the study.

It is significant that district road network has increased by around 70,000 kilometres over the past two decades.

There is, however, no consolidated data about how much funds are needed for road and bridge maintenance. But, judging from the current road conditions, it is apparent that funding for maintenance was not always a priority.

According to the study, insufficiency of funds for road repairs can be overcome through good maintenance planning and prioritising expenditure.

Tools for such planning exist, but require regular measurement of physical parameters and traffic volumes and the use of computer-based systems for data processing. The study pointed out that apart from the Sindh government, no road agency appeared to be enthusiastic about adopting modern data processing methods.

Currently, routine maintenance is undertaken on the basis of traditional âyardstickâ approach while funds are allocated on the basis of a set amount per kilometre multiplied by road length.

Highlighting unreliability of data, the report said that safety audits were not normally part of road work planning. For transport operations, spheres of responsibility are blurred and uncoordinated.

Highlighting corruption at all levels, the study said that it was prevalent in most tiers of road maintenance that led to increase in costs and sub-optimal selection of road alignment or improvement level.

The study suggested that corruption might eat up about 20 per cent of the total funds. The problem is exacerbated because of low wages, widening disparity between the rich and poor, bureaucratic hurdles and centralised and/or hierarchical decision making.

http://dawn.com/2007/05/06/top15.htm


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## Neo

Tuesday, May 08, 2007 

*PC receives 7 EOIs for 5-star hotel project*

ISLAMABAD: The Privatisation Commission has received seven Expression of Interest (EOIs) from interested parties, consortium of investors with commitment to build, own and run a five star hotel on a prime piece of land at Shahrah-e-Quaid-e-Azam, Lahore.

The project is titled âServices International Hotel (SIH)â with an area of fifteen 15 Kanals, 3 Marlas and 113 square feet.

The parties include Associated Group, Lahore; The City Group, Lahore; Hashwani Hotels Limited, Islamabad; Rupali Polyester Limited Lahore; Abraaj Capital Limited, Dubai, United Arab Emirates; Al-Sabaiea National General Trading and Constructing Company, Kuwait; Marwat Enterprises, Lahore. 

The interested parties, consortium of investors were asked to provide bank statement for the last three years to demonstrate net worth. The successful bidder shall have to construct a five-star hotel including basements in accordance with the Building Regulations of Lahore Development Authority (LDA). The permissible height of the hotel building shall be 400 feet.

http://www.dailytimes.com.pk/default.asp?page=2007\05\08\story_8-5-2007_pg5_9


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## Neo

Tuesday, May 08, 2007 

*Power shortage: FPCCI calls for construction of dams*

LAHORE: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Monday stressed the need of the construction of dams on top priority to overcome power shortage.

President FPCCI Tanvir Ahmad Sheikh told APP the country was currently facing the shortage of 1200 MW, while uninterrupted supply of power was pre-requisite for economic growth and development of the country.

He said private sector had to timely ship their consignments to fulfill its commitment.

He said industry and agriculture are most important sectors, which required smooth power supply for industrial development and meeting the food needs of the country. Keeping in view the power supply situation confronting the country, water reservoirs and dams should be constructed on top priority with consensus, he added.

He said, âwe can only get rid of load management if new dams are built on war footings.â Chairman Businessmen Panel, the largest alliance of traders and associations and ruling group in FPCCI, Tariq Sayeed said the construction of dams would help meet ever increasing demand of cheaper resource of energy which would bring down the cost of all products including eatables. Panel co-chairman and former president FPCCI, Iftikhar Ali Malik said Kalabagh dam project was technically feasible and economically essential which, he added, should be constructed without further delay. 

http://www.dailytimes.com.pk/default.asp?page=2007\05\08\story_8-5-2007_pg5_11


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## Neo

May 09, 2007 
*Pakistan needs to improve infrastructure*

ISLAMABAD, May 8: Infrastructure development is crucial for improving the global competitiveness ranking of Pakistan, said Chief Executive of the Competitiveness Support Fund (CSF) Arthur Bayhan here on Tuesday.

He was making presentation to the Ministry of Housing and Works on the indicators relevant to the housing sector.

The presentation was part of the CSFâs initiative to bring all the line ministries on board to improve Pakistanâs ranking on the global competitiveness index of the World Economic Forum.

CSF is a joint initiative of ministry of finance and USAID. Support for Competitiveness Support Fund is part of the $1.5 billion in aid that the US government is providing to Pakistan over five years to improve economic growth, education, health and governance.

Pakistan has to adopt innovative housing solutions for its growing middle class.

This will not only create value for the growing number of hardworking population but will also address growing demand for appropriate infrastructure for a viable economy, Mr Bayhan added.

Secretary Housing and Works Abdul Rauf Chaudhary informed the CSF delegation that his ministry had launched the national housing policy in 2001 and it was now coordinating with Central Board of Revenue and the provincial governments on various issues concerning the housing sector.

He also said the ministry was undertaking initiatives to provide appropriate housing for the low income groups.

We will be launching projects of up to 15,000 flats for the government employees soon in Islamabad. Similar projects in Lahore, Karachi and other cities are in the pipeline, he added.

The CEO of Competitiveness Support Fund elaborated the rational behind the indicators and pointed out that the data used for these indicators was not up-to-date.

He said housing ministry had a crucial role in setting standards for the infrastructure development.

Pakistan scores well overall in terms of infrastructure quality and notable progress in building infrastructure will continue. However, recent problems in supply and reliability of electricity need to be addressed.

http://www.dawn.com/2007/05/09/ebr11.htm


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## Neo

Wednesday, May 09, 2007 

*Infrastructure development crucial for competitiveness*

ISLAMABAD: Pakistan must capitalize on its strengths and eliminate its weaknesses in the area of infrastructure in order to move up on the Global Competitiveness Index of the World Economic Forum, said Arthur Bayhan, CEO of the Competitiveness Support Fund (CSF) here Tuesday. 

He was making a presentation to the Ministry of Housing and Works on the indicators relevant to the housing sector in Pakistan. 

The CSF presentation was a part of CSFâs initiative to bring all the line-ministries on board to improve Pakistanâs ranking on the Global Competitiveness Index (GCI) of the World Economic Forum. Pakistan was ranked 91 on the GCI in 2006. Pakistan had showed improvement of 3 rankings from 94 to 91 in 2005. 

âThe State of Pakistanâs Competitiveness,â a report of the Competitiveness Support Fund (CSF) and the World Economic Forumâs annual Global Competitiveness Report (GCR) identified low cost housing as an important aspect of improving Pakistanâs overall competitiveness. âPakistan has to adopt innovative housing solutions for its growing middle class; this will not only create value for the growing number of hardworking population but will also address the growing demand for appropriate infrastructure for a viable economy,â said Bayhan. 

Speaking on the occasion, Abdur Rauf Chaudhary, Secretary of the Housing and Works Ministry, informed the CSF delegation that his ministry launched the National Housing Policy in 2001 and it is now coordinating with CBR and the provincial governments on various issues concerning the housing sector. 

He also said that the ministry is undertaking initiatives to provide appropriate housing to the low-income groups. âWe will be launching projects of up to 15,000 flats for the government employees soon in Islamabad; similar projects in Lahore, Karachi and other cities are in pipeline,â he said. 

Secretary housing also asked the CSF to make a special presentation to the Housing Advisory Board, which is chaired by the Minister for Housing. The board comprises of all relevant provincial and district government authorities and representatives from the private sector organizations. He urged the CSF to brief the board members on the competitiveness aspects of the housing sectors in Pakistan and provide policy guideline to improve the sectorsâ competitiveness. Chaudhary proposed that CSF make the presentation in the next meeting of the board in July 2007.

Bayhan said that the Ministry of Housing and Works has a crucial role in setting the standards for infrastructure development in the country. âPakistan scores well overall in terms of infrastructure quality and notable progress in building infrastructure will continue. However, recent problems in supply and reliability of electricity need to be addressed. In some cases, innovative private-public partnerships can help expand infrastructure more rapidly than might otherwise be the case,â he said. 

Abdul Basit, Joint Secretary, Prime Ministerâs Special Programme Wing, Ministry of Finance informed the meeting that the Prime Ministerâs Special Programme Wing (PMSP) has been tasked to coordinate with all the ministries to work with the CSF for improving Pakistanâs competitiveness ranking. He also pointed out that other countries in the region are improving their competitiveness by investing in their infrastructure and Pakistan should not lag behind.

http://www.dailytimes.com.pk/default.asp?page=2007\05\09\story_9-5-2007_pg5_2


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## Neo

*Mideast to fund $1.5b hydropower project*

8 May 2007 

ISLAMABAD â Qatar and some other Middle Eastern countries have expressed their willingness to fund the $1.5 billion Neelum-Jhelum Hydropower project in Pakistani held Kashmir (Azad Kashmir).

Informed sources said that Pakistan government is currently facing problems to undertake the mighty project as the officials of Water and Power Development Authority (WAPDA) have so failed to award contract for the construction o the dam due to which Pakistan could loose its priority rights over Jhelum waters. 

A project of WAPDA the 969MW project has been hanging in balance for six years although it is considered crucial to secure Pakistan's priority rights over Neelum waters â a tributary of the river Jhelum â threatened by the Indian move to use its waters for power generation and diversion. 

These sources said Prime Minister Shaukat Aziz had taken up the project with Chinese leadership during his recent visit because of complexities relating to Chinese bidders but the outcome was not so encouraging. The Prime Minister later told reporters that Neelum-Jhelum project was not discussed with China.

Adviser to the Prime Minister on Finance Dr Salman Shah, however, said that financing for the project was available in the form of offers from Qatar and the Middle East but the Wapda had been asked to take a decision on the bidder and the project structure.

He confirmed that the lowest bidder had not been able to arrange buyer's credit for the project. He, however, declined to comment on $500 million higher bid from the second bidder saying the government would arrange financing when Wapda takes a decision on technical issues.

The Prime Minister had given a deadline of six weeks in January this year to finalize financing arrangements for the project so that the project could be launched without wasting time. The bidding for the project was held about a year ago. The contract could not be signed with the lowest bidder that quoted $1.3 billion price for the project because it failed to arrange required buyer's credit a pre condition under the bidding. 

As a result, discussions were started with the second bidder that offered $1.8 billion along with buyer s credit of about $700 million. 

http://www.khaleejtimes.com/Display...May/business_May244.xml&section=business&col=


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## Neo

May 10, 2007 
*Airlineâs operations suspended for safety*

KARACHI, May 9: The Civil Aviation Authority (CAA) has, with immediate effect, suspended operations of the *Aero Asia Airlines* due to issues relating to safety and passenger convenience.

The Aero Asia operates on three domestic and three international routes.

According to a CAA press release issued here on Wednesday, the problems were brought into notice of the airlineâs management time and again but the situation, instead of improving, went from bad to worse and the company failed to comply with CAAâs safety and regularity requirements.

The CAA said the Aero Asia might restart their operations

as and when they so desired, provided they satisfied the authority on all safety-related issues, in addition to exercising better operational control over aircraft.

âThe authority has no issue with the Aero Asia as far as payment of its current dues is concerned,â said the CAA.

The airline said it had temporarily suspended operations.

âWe are in search of newer aircraft and modern-day technology in order to improve our product,â Haider Jalal, managing-director of the airline, told a news conference.

âWe have decided to suspend our operations temporarily with effect from May 19, till further notice.â

In March, the European Union banned all but seven of state-run Pakistan International Airlinesâ aging fleet of 42 planes based on safety concerns.

http://www.dawn.com/2007/05/10/top15.htm


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## Neo

*Metro train service: 'feasibility studies in eight cities to start soon' *

ISLAMABAD (May 11 2007): Feasibility studies for launching of metro train service will be conducted in eight major cities of the country, including Islamabad-Rawalpindi, Karachi, Lahore, Peshawar, Quetta, Faisalabad, Multan and Hyderabad-Kotri, soon.

Minister for Railways Sheikh Rashid Ahmad said this, while replying to a question from Rana Mehmood-ul-Hassan during the question hour in the National Assembly on Thursday.

He informed the House that revalidation of feasibility study for revival of Karachi Circular Railways (KCR) was being done by Pakistan Railways through international consultant, who would submit the report within two months.

He said that feasibility studies for operation of metro train service in the cities of Karachi and Lahore were being conducted by the City District Government Karachi (CDGK) and Punjab government respectively.

The Railways Minister also informed the House that feasibility study for laying rail track in southern districts of NWFP to link these areas with Karachi was being carried out. The new track would reduce 300 to 400 kilometres distance between Karachi and southern districts of NWFP, he added.

To a question from Maulana Abdul Akbar Chitrali, the Minister said that during 2006 Pakistan Railways earned Rs 9762.542 million through passenger trains. Replying to a supplementary question, he said that after collapse of Run Pathani Bridge, the government was taking steps to rehabilitate old railway bridges. He said that talks with Russia were being held in this connection.

http://www.brecorder.com/index.php?id=562353&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*AEDB helps private sector develop solar streetlights *  

ISLAMABAD (May 12 2007): The National Assembly was informed that private sector has been able to develop high quality solar streetlights with the patronage of the Alternative Energy Development Board.

The Minister for Water and Power Liaquat Ali Jatoi said in a reply to a question in the National Assembly that AEDB is now approaching various agencies and local authorities like CDA, GDA, provincial governments and housing authorities to replace the conventional street lights with solar streetlights.

The minister was replying to a question by Begum Ishrat Ashraf who wanted to know if there was a proposal to utilise solar energy for streetlights. The minister said that the Energy Board is facilitating the private sector to develop solar streetlights.

In reply to another question about the arrears of Peshawar Electric Supply Company (Pesco), in NWFP and Fata asked by Sabir Hussain Awan, the minister said that the public sector owed more than Rs 1.3 billion and several steps were being taken to recover them. The receivables of Pesco on February 28, 2007 were Rs 591 million from the provincial government departments and Rs 715 million from federal government departments.

http://www.brecorder.com/index.php?id=562693&currPageNo=1&query=&search=&term=&supDate=


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## ahussains

We are facing a tough time in terms of power shortage we have to speed up it all ,,, The time is running did build a dam from last 35 years or so ... at least 2 to 3 dams on the high priorty and in very short time were build also trying to accuire some alternatie power sources too . like solar energy , and some nuclear power plants also have to installed too...


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## Neo

*Malaysia To Build Two Highways Worth US$102.6 Million In Pakistan *

KUALA LUMPUR, May 14 (Bernama) -- The Works Ministry through CIDB Malaysia and the National Highway Authority (NHA) of Pakistan today sealed an agreement worth US$102.6 million to build two highways in Pakistan.

The highways are namely the 29 km US$46 million Karachi Northern Bypass and the 56 km Rawalpindi Bypass and Northern Interchange estimated to cost US$56.6 million.

The projects mark the first of such partnership between the Malaysian and Pakistani governments.

Both projects will be implemented on a Built-Operate-Transfer (BOT) basis and carried out by a CIDB-led consortium consisting of HCM Engineering Bhd and Ahmad Zaki Resources Bhd, Works Minister Datuk Seri S Samy Vellu said at the signing of the Memorandum of Understanding here.

The MoU was signed by NHA general manager Hassan Rind and CIDB chairman, Tan Sri Ir Jamilus Hussein.

"Initial assessment shows that both the projects potentially have more than 20 percent internal rate of return. I've planned to go to Pakistan early next month to study and expedite the implementation of the projects," Samy said at a press conference later.

MinConsult Sdn Bhd will conduct a feasibility on the projects, he added.

This new partnership comes after the cancelled Khanewa-Faisalabad Motorway project which was signed in April 2005. The project was cancelled after a feasibility study showed that it was an unsuitable project.

To date, IJM Corporation Bhd is the only Malaysian company involved in infrastructure construction in Pakistan. It is building an elevated expressway along Shahrah-E-Faisal from the Quaidabad Intersection to Jinnah Bridge in Karachi.

The project, estimated to cost RM830 million, commenced last February and is expected to be completed in June 2010.

Meanwhile, Pakistan's Communications Minister Muhammad Shamim Siddiqui who was also present said the country currently has US$8 billion worth of infrastructure projects to be rolled out by 2012.

"We welcome more companies from Malaysia to vie for these infrastructure projects," he said.

Samy added that he has also submitted 11 class A contractors name to the Pakistan's authority for its upcoming projects.

http://www.bernama.com/bernama/v3/news_lite.php?id=261831


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## Neo

May 15, 2007 
*Govt okays Rs3bn plan to revamp Karachi Shipyard*

ISLAMABAD, May 14: The government has allowed Karachi Shipyard and Engineering Works (KSEW) to launch its Rs3 billion modernisation programme to regain the business it had lost because of its "dilapidatedâ.

Official sources told Dawn on Monday that the ministry of defence had proposed the modernisation and up-gradation plan for KSEW to help fetch business amounting to Rs1.5 billion along with foreign exchange earnings of about $7.28 million annually.

The plan envisages enhancement of existing capacity of ship repair at KSEW by installation of a "ship lift system" and replacing old and obsolete machines with state-of-the-art new machines.

The new system will be capable of lifting vessels up to 4,000 tons and capability to repair 10 to 13 ships at a time. At present KSEW has two dry docks of 26,000 DWT tons and 18,000 DWT tons constructed in 1956 and 1970, having average capacity to repair 16 ships per annum. This will be increased to 39 ships per annum in addition to the existing capacity with installation of new ship-lift-system.

The scope of work will include Installation of ship-lift-system, transfer system, up-gradation of existing technology, marine civil works and procurement of new equipment.

The KSEW is the only shipyard in the country, which possesses comprehensive ship repair infrastructure. Before this facility was set up, Pakistani ships had to go to Malta for underwater repairs. Since its inception these limited facilities were fully utilised for domestic and foreign ship repairs.

However, these facilities have not been upgraded since their initial installation in 1957. Hence the demand and requirement is much more than the present capacity. Sources said that due to gradual increase in naval and commercial fleet and domestic ports the existing docks facilities have become inadequate.

This has created dual negative effects i.e. ships are not getting repairs in time and on the other hand losing business to the tune of Rs1.5 billion per annum. At present, it is not possible to entertain foreign shipsâ clientele, although the sea trade at Pakistani ports is increasing at a brisk rate since Pakistan Navy (PN), Pakistan National Shipping Corporation (PNSC), Port Qasim Authority (PQA), Karachi Port Trust (KPT), Gwadar Port and Maritime Security Agency (MSA) have plans to rehabilitate and increase their existing fleets.

The ship owners are forced either to wait for prolonged periods or are constrained to send their ships to Dubai or elsewhere for repairs. Even the foreign fishing trawlers operating in Pakistani waters are forced to go to Dubai/Singapore for dry docking and repairs.At present location of KSEW has limitation of depth of water channel. To address this problem, KSEW will request KPT for allocation of requisite space at the deep draught container terminal and the cargo village being planned by KPT.

The project for overall revamping of shipyard costing Rs1.9 billion was first considered by the CDWP in its meeting held on February 18 2003. The CDWP decided to return the PC-I to the sponsoring agency with the direction that they should engage a renowned consultant to undertake a feasibility study to justify rehabilitation of KSEW.

Although the CDWP has approved the project, it observed that instead of undertaking feasibility study through engaging renowned consultants, the sponsoring agency, after more than 5 years, have come up with a PC-I costing Rs3 billion (53 per cent higher than the previous cost) with different nomenclature albeit the scope of work is similar (and lesser) to the BMR programme of the KSEW.

The sponsoring agency has been asked to clarify the position along with progress made so far as a follow-up of the CDWP decision.

It is stated in the PC-I that with the existing 2 dry docks, KSEW is able to repair 16 ships per year at an average rate. In this behalf, the sponsoring agency was asked to provide list of ships/vessels (including foreign and local) repaired/constructed along with tonnage during the last 5 years period. Inventory of major machinery resting with the KSEW should also be provided.

According to the PC-I, Rs153 million has been indicated as annual operating cost after completion of the project. The sponsoring agency was asked to indicate the source of funding to meet these expenses.

http://www.dawn.com/2007/05/15/ebr5.htm


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## Neo

*NHA wants Rs 14 billion for realignment of Karakoram Highway *

ISLAMABAD (May 17 2007): The National Highway Authority (NHA) has sought an amount of around Rs 14 billion for the realignment of Karakoram Highway (KKH), a large portion of which is to be submerged by Diamer-Basha Dam, sources told Business Recorder on Wednesday.

The NHA has submitted PC-I to the Planning and Development (P&D) Division and the proposed project would be discussed by the concerned authorities in the meeting of Central Development Working Party (CDWP) today (Thursday). The CDWP will also consider 51 other projects valuing around Rs 24 billion.

In Transport & Communications sector, the CDWP will, apart from KKH realignment, consider 14 other projects costing around Rs 14 billion. Other projects in Transport & Communications sector include setting up optical imaging payload facility, setting up of design, development & testing of special metallic joint, remote sensing data transmission facility, development of dynamic system test facility, design & development of a compact antenna test range, construction of Bostan-Zhob narrow gauge section into broad gauge, provision of railway tracks for setting up dry port at Prem Nagar, including acquisition of land, construction of grade separated interchange at Nagan Chorangi, construction of black top road from Tellimute to Doli Post. There are some other small projects in the transport and communication sector.

In water sector, the meeting would take up four projects of Rs 2.03 billion for approval including Resettlement Action Plan for Mirani Dam affectees of Rs 1.184 billion, construction of Lougher dam and Karak dam in district Karak, and Darmalak dam in district Kohat.

The CDWP will also consider nine schemes in physical planning and housing sector. In the energy sector, the meeting will accord approval to the construction of 132 KV grid station in sector 1-16 Islamabad with the cost of Rs 323.69 million.

In Health sector, the meeting will take up two projects worth Rs 918.861 million which include provision of stereotactic radio surgery system at JPMC Karachi and construction of surgical medical block, JCO ward and other allied facilities.

The meeting will also approve the most important project about strengthening of regulatory infrastructure by applying innovative radioactive waste management technology valuing Rs 338 million.

In higher education sector, the meeting will take up three projects of Rs 1.835 billion for approval, which include establishment of national law university, Islamabad, strengthening of departments of Economics Business Administration, Commerce & Applied Economics Research Centre at Karachi University and provision of higher education opportunity for students of Federally Administered Tribal Areas (FATA) and Balochistan.

http://www.brecorder.com/index.php?id=565233&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Peshawar-Islamabad Motorway to open by year-end: NHA reviews works progress *

PESHAWAR (May 17 2007): The National Highway Authority (NHA) is likely to open the entire Peshawar-Islamabad Motorway (M-1), for all traffic, by the end of the current calendar year.

"The construction work is in advanced stage of completion, and M-1 will be made operational as per schedule," announced General Manager Operation, NHA, Arshad Mahmood, in his keynote address to stakeholders' consultation meeting held here at Peshawar Garrison Services Club on Wednesday.

He said that roads projects of Rs 63 billion were in progress in different parts of the country, which would give a tremendous boost to national economy besides facilitating the flow of foreign trade through the eastern and western corridors of the country to Afghanistan, Central Asia and other parts of the world.

He said that the Authority was also working on Pindi Bhatian-Faisalabad, Sukkur-Shikarpur, Rothedero-Karachi via Dadu, Rothedero-Gawadar, Karachi-Hyderabad Expressway, and Peshawar-Torkham Expressway. He said that foreign donors including Asian Development Bank, Jica and China were providing valuable financial assistance for these vital developmental projects.

He said that the road network in the country had undergone massive expansion over the past few decades thereby substantially increasing the length of the roads and highways and the number of all sort of vehicles.

About plans for the next financial year, he said that the Authority has proposed sanctioning of Rs 60 billion for the construction of new roads and maintenance of the existing infrastructure. Arshad Mahmood said that the country serves as a natural and viable transit way for flow of goods produced in the booming economies of China and India, and added that a well netted road infrastructure must be put in place to fully tap this available potential.

Attiq Ahmad, NWFP General Manager, NHA, in his presentation said that beside the ongoing projects a number of newly federalised roads had also been taken in hands. He said that improvement work on Chakdarra-Bahrain was going in full swing, whereas construction work on Khawazakhela-Besham Road would be started soon.

He said that all roads in the scenic Swat valley would be brought at par with other highways in the country, which would surely give impetus to tourism industry and trade. The NHA, Balochistan GM, Yousaf Ali Khan, said that during last financial year the Authority had spent Rs 800 million on construction of new roads and repair and maintenance of different highways in the that province.

GM NHA Northern Areas (NAs), Ilyas Afzal, said that 1200 km roads fell within its purview and the Authority had spent Rs 40 million on routine maintenance work. Likewise, Rs 10 million was spent on emergency maintenance work. Director, Road Asset Management, NHA, said that the total value of the roads in the country is Rs 2.5 trillion, and their quality maintenance and upkeep at optimum level is essential for sustainable economic growth.

http://www.brecorder.com/index.php?id=565293&currPageNo=2&query=&search=&term=&supDate=


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## Neo

Tehran: 2007/05/18 

*Iran, Pakistan sign railway agreement *

TEHRAN, May 18 (MNA) â Iran and Pakistan inked an agreement on construction of railway. 

The Iranian Road and Transportation Minister Mohammad Rahmati and Pakistani Federal Railway Minister Sheikh Ahmad Rashid signed the agreement.

According to the agreement, Taftan-Quetta railway links the two countries within next two years.

Totally $200 million is invested in the project.

Rashid said Pakistan needs 10 thousand wagons and Iranâs Pars Wagon Company has the capacity to meet the need.

http://www.mehrnews.com/en/NewsDetail.aspx?NewsID=488265


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## Neo

*Pakistan's rail link with Europe soon: Rashid *

LAHORE (May 20 2007): Federal Minister for Pakistan Railway Sheikh Rashid Ahmad has said Pakistan would be linked with Europe via Quetta, Iran, Taftan and Istanbul through railway track in the coming three years and pilgrims would be able to reach Saudi Arabia to perform Haj via train.

While addressing a press conference here at Railway Headquarters, he said the customers would get tickets through Credit Cards throughout the country and thus one person would be able to get 10 tickets from one Credit Card simultaneously. He further said that all facilities of the international standards would be provided to the passengers of Pakistan Railways within 60 days.

The minister said the complaints offices at the railway stations would be opened to redress the problems of the passengers. He further said that computerised booking facility for goods transportation would also be provided. He said all the hurdles in the way to sale out. The unnecessary property of Pakistan Railway, would be removed with immediate effect and the signal system of the railway would be improved to insure the smooth and steady operation of the trains throughout the country.

Sheikh Rashid said double track would be laid down from Gujranwala to Lahore and Faisalabad to Lahore to facilitate passengers to save time. Trains would not stop at small stations and shuttles trains would be launched in these areas for the better facilitation of the local passengers, he maintained.

He said special funds had been demanded from the federal government in the coming budget for rebuilding and maintenance of historical workshop of Pakistan Railway situated at Mugulpura.

President or Prime Minister would soon visit to inspect the workshop. He said the inquiry regarding the Karchi Club and Lahore Railway Farm scandal was going on, and after the final report, it would be brought to light within 24 hours and strict action would be taken against the culprits, he pointed out.

Rashid said there were no differences between MQM and the government and what happened in Karachi on May 12 was regrettable. "MQM is the strong political party of Karachi, allied with the government. Its political strength can not be ignored, he explained.

http://www.brecorder.com/index.php?id=566222&currPageNo=3&query=&search=&term=&supDate=


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## Neo

Sunday, May 20, 2007 

*Design, cost review of KKH uplift project demanded*

By Sajid Chaudhry

ISLAMABAD: The Water and Power Development Authority (WAPDA) has proposed an allocation of Rs 13.844 billion for upgrading the Karakoram Highway (KKH) to facilitate the construction of Diamer Basha Dam. 

However, the technical appraisal carried out by the Planning Commission has pointed out that the unit cost of the project comes to Rs 43 million per kilometre. The cost has been based on 30 percent plus on the NHAâs CSR 2005, which has raised the cost quite high keeping in view the fact that this is basically improvement work and not a new construction. The technical appraisal has demanded complete design and cost review in consultation with NHA and Planning Commission. 

According to working paper of the project available with Daily Times, the project envisages upgrading of existing section of Karakoram Highway from Havelian to the proposed dam site on river Indus which is to be located about 40 kilometres short of Chilas.

The total length involved in the project is 323.5 kilometres. The working paper states that existing geometric of different sections of the proposed road would not allow transportation of heavy machinery like turbine runner of 5.5m dia required in the construction of the dam. Furthermore, the trailer carrying such equipments would cover the whole width of the road not allowing any overtaking or passing of traffic coming or passing of traffic coming from opposite direction.

The width of the existing road varies from 6.1 m to 6.5 m reroute. The road is to be strengthen with provision of additional layers of sub-base, base course and widened from existing 6.1 metres to 7.3 metres with shoulders from 1 or 2 metres. The existing road beyond the dam (140 kilometres) would sub-merged in the dam and therefore would have to be relocated and constructed at higher altitude, the working paper adds. 

The benefits accruing from the project would be saving vehicles operating cost, travel time, increased tourism, smooth trade with China, reduction in the maintenance cost and accidents, and uninterrupted transportation of heavy equipments and materials for the dam, it reveals. 

The economic and transportation benefits to the adjacent cities have also been estimated in the project which projected that the per day vehicle flows from Havelian to increase from 8870 vehicles in 2006 to 15055 in year 2015, from Abbotabad and Mansehra 11851 in 2006 to 20170 in year 2015, Mansehra and Thakot from 7068 in 2006 to 12601 in year 2015, Thakot-Basham from 1349 in 2006 to 2414 in 2015, Basham-Dasu from 1554 to 2804 in year 2015, Dasi-Sazin from 1184 to 2131 in 2015 and Sazin to Dam site 1170 to 2099 in year 2015. 

The technical appraisal of the project carried out by the Planning Commission has identified many flaws in the project details and has sought justifications relating to the proposed allocation of the project. It stated that it has been proposed that the project should be funded through Public Sector development Programme (PSDP). WAPDA is the main stakeholder who requires the upgrading of the road for the transportation of heavy machinery and equipments required for construction of Diamer Basha Dam. WAPDA should therefore provide complete or part funding for the project from its own resources. Technical experts have also questioned the traffic data at various sections of the road by stating that growth rate for projected traffic varies from 4.1 percent to as much as 22.6 percent.

http://www.dailytimes.com.pk/default.asp?page=2007\05\20\story_20-5-2007_pg5_1


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## Neo

Islamabad, May 19, IRNA 
Pakistan-Iran-Rail 
*Pakistan plans new Quetta-Taftan railway track *

A modern railway track between the Pakistani southwestern city of Quetta and Iranian bordering town of Taftan will be laid shortly with the ultimate objective to link Pakistan with Europe through rail system, the Railways Minister said Saturday. 


"This fast railway track will later be linked with Turkish port city of Istanbul to link Pakistan railways with Europe," Sheikh Rashid Ahmad told a news conference. 

Rashid visited Iran this week and discussed cooperation with Iranian officials in the field of railways. 

He said that the 5,000 trained workers of Pakistan Railways are being sent to Saudi Arabia to lay railway track to link Jeddah with holy cities of Makkah and Medina. 

He said Pakistan railways will introduce ticket system through credit card from June 1. 

However, at a time maximum ten tickets could be purchased by one credit card. 

He said that National Mass Transit Authority would be formed to develop Mass Transit Systems in eight major cities of the country. 

http://www2.irna.ir/en/news/view/menu-237/0705209707012355.htm


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## Neo

*Railways need Rs 30 billion for rehabilitation *

ISLAMABAD (May 21 2007): Pakistan Railways is in dire need of at least Rs30 billion for rehabilitation of dilapidated tracks, replacement of obsolete signaling system and maintenance of bridges, it is learnt reliably.

Sources in the Railways Ministry told Business Recorder that as many as Rs30 billion were needed immediately to undertake rehabilitation work of dilapidated railway tracks and to replace obsolete signaling system to avert accidents.

It is learnt that Railways Minister Sheikh Rashid Ahmed briefed Prime Minister Shaukat Aziz some days back about the ongoing railway developments and sought the handsome amount for the said purposes.

The existing signaling system of Pakistan Railways neither meets the safety requirements of higher speeds nor the growing traffic density and the risk of their malfunctioning cannot be ruled out which may result in accidents.

"We believe modern signaling system was prerequisite for ensuring safety of travelling public by avoiding train accidents, enhancing transportation efficiency and capacity at higher speed," a senior official said. Presently, he said PR needed Rs12 billion to replace old signaling system from Karachi to Peshawar.

The other basic problem that confronts Pakistan Railways was dilapidated railway tracks. "We have sought the funding of around Rs15 billion for rehabilitation of tracks," the official added. Railways Minister, the official continued, had conveyed to Prime Minister Shaukat Aziz that the government must have to provide atleast Rs15 billion for upgradation and rehabilitation of railway tracks.

The railways authorities are very much concerned on aged bridges as well. It is learnt that more than 80 percent bridges of Pakistan Railways have lived their life and could cause a major disaster any moment.

The official said there are around 15,000 bridges and most of the portion is over aged. "We have to spend Rs3 billion on maintenance of bridges on main railway lines," the senior official added.

http://www.brecorder.com/index.php?id=566916&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Two gas terminals to be set up at Port Qasim *

KARACHI (May 22 2007): The ground-breaking of two important projects, dedicated floating liquefied natural gas (LNG) and dedicated liquefied petroleum gas (LPG) is likely to take place at Port Qasim some time in the last week of this month.

The LNG terminal is being set up by Associated Group and Pakistan GasPort Ltd, and the LPG terminal has been sponsored by KUB Malaysia Berhad (KUB), Progas Energy Ltd (PEL) and National Logistics Cell (NLC). Both projects are being set up on 'build, operate and transfer' (BOT) basis.

The LNG terminal would be completed in 30 months' time at a cost of $160 million and, according to the estimates, total income to PQA in 30 years would be $142 million. The terminal would be able to handle 75,000 dwt vessels and would have capability to handle not less than three million tonnes material per year.

The concession has been granted on non-exclusive basis for 30 years, with PQA retaining its right to offer setting up of similar terminal to other parties at Port Qasim.

The company shall maintain sufficient depth in the channel at all times to accommodate ships drawing draught up to 12 metres. The company will be responsible for the capital dredging of the berthing basin, the approach channel and turning basin for floating LNG terminal.

It shall also be responsible for the maintenance dredging of the berthing basin and maintain the berthing basin only, whereas PQA would be responsible for the maintenance dredging of the approach channel and the turning basin.

The location for dumping of dredging material will be decided between PQA and the Company, based on relevant studies by the company. The cost of capital dredging of turning basin only will be recovered by the Company by paying 50 percent of applicable royalty to PQA in the amount equal to the capital dredging cost thereof, and the Company will not charge any interest, on the amount so adjustable, from PQA.

The implementation agreement was signed with Pakistan GasPort Ltd on April 28, 2007. The LPG terminal is being set up by Progas Pakistan (Private) Ltd, formerly Keloil (Private) Ltd (Malaysian Company). Total cost of the project is $25 million with 62:38 debt equity ratio.

It would be able to handle two million tonnes material and handle 50,000 dwt vessels. The concession has been granted for a period of 30 years on non-exclusive basis. PQA would retain the right to offer setting up of similar terminals to other parties.

http://www.brecorder.com/index.php?id=567153&currPageNo=1&query=&search=&term=&supDate=


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## Neo

Wednesday, May 23, 2007 

*Rs 750 million approved for Gwadar Airport*

ISLAMABAD: The Annual Plan Coordination Committee (APCC) on Tuesday approved Rs 750 million for construction of Gwadar International Airport and Rs 1.357 billion for converting 29 troubled districts of Balochistan into peaceful âAâ areas. 

âThe Rs 1.357 billion project aims at converting 29 âBâ areas into âAâ areas in Balochistan,â Mr Riaz, project director, told reporters here, adding that âBâ areas are the districts where law and order situation is not good. 

He hoped that the project aimed at restoring law and order in these districts would be completed in next two years.

The APCC also approved agriculture sector development projects worth over Rs 25 billion and allocated initial funds for the fiscal year 2007-08. 

After the meeting, Ismail Qureshi, federal secretary Ministry of Food, Agriculture and Livestock, said that Rs 18.5 billion project was also approved for introducing drip and sprinkle irrigation technology in the country. 

He said that an ongoing project of Rs 66 billion for lining of 89,000 watercourses in the country would continue in the next fiscal year. He said that work on some 45000 watercourses would be completed this year.

Qureshi said that the APCC had approved Rs 3 billion fisheries development project. This project also includes constitution of fisheries development board and establishment of fish farms in the seas and on the land to promote latest techniques for the development of this sector. 

He said that Rs.5.5 billion livestock development project, Rs 8 billion productivity enhancement project and Rs 1 billion food quality enhancement project would be launched to enhance productivity. 

Syed Asif Shah, commerce secretary, said that the APCC had approved Rs 216 million for the Pakistan Fashion Design School, Rs 30 million for Foreign Trade Institute and Rs.1.3 billion for the Expo Centre Lahore, extension in Expo Center Karachi and establishment of Institute of Textile and Clothing. 

The Ministry of Science and Technology will get 40 percent increase in its development budget in next fiscal year with an allocation of Rs 7 billion; and Railway Division Rs.12 billion, the officials said.

http://www.dailytimes.com.pk/default.asp?page=2007\05\23\story_23-5-2007_pg7_18


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## Neo

Wednesday, May 23, 2007 

*Railways to build Peshawar-Karachi optical fibre network*

LAHORE: Pakistan Railways plans to initiate a project to establish an optical fibre cable transmission system from Peshawar to Karachi by the end of the year, Daily Times learnt on Tuesday. 

Railways sources said Pakistan Railways (PR) plans to replace the old underground communication cables, which have become unserviceable on the Lahore-Khanewal sector, with optical fibre transmission cables on the main line from Peshawar to Karachi. It is expected that the project will be executed in phases and completed by 2011. The project will help the PR communication department meet international standards and the system will help achieve smooth communication, a Railways official said. Almost all the major railway links of the world are already using this transmission system, he added.

PR authorities have initiated consultations for the project with several foreign railways companies. It is expected that the project will be awarded to Spanish Railways because it has been involved with several railway communication network upgrade projects.Railways Chief Engineer (Telecom) Muhammad Zafar refused to provide any project details, saying the Federal Minister for Railways Sheikh Rashid Ahmed had asked him not to disclose any information about the project.

However, another PR official said the project will be initiated by the end of this year and should be completed by 2011. At present, the communication system of PR is not up to the mark, consequently control rooms of almost all divisions face problems in establishing the location and arrival time of trains. After the fibre optics system is in place almost 90 percent of the communication problems will be resolved, the PR official said. Railways General Manger Operations Asad Saeed said the project is on the backburner for the time being as they are currently focused on a project of installing the latest signal system on various sectors. âHowever, the project of laying the optical fibre system from Peshawar to Karachi will be initiated by the end of this year,â he added.

http://www.dailytimes.com.pk/default.asp?page=2007\05\23\story_23-5-2007_pg7_10


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## Neo

*Pakistan to lay first rail link in Afghanistan dpa German Press Agency*
Wednesday May 23, 2007 

Islamabad- Pakistan will start construction of the first
major functioning railway line in Afghanistan, officials from the
countries said in Islamabad Wednesday.

An initial 10.5-kilometre stretch of track will be laid from the
Pakistani border town of Chaman to Spin Boldak in Afghanistan at a
cost of 700 million rupees (11.5 million US dollars), Pakistani
Railway Minister Sheikh Rashid said after signing a memorandum of
understanding.

The work will take about a year. A second phase envisages
extending the line to the southern Afghan city of Kandahar for
eventual connection via the western city of Herat to Khushka in
Turkmenistan.

While Britain and Russia built railway lines in Afghanistan in the
19th century and the Soviets during the occupation in the 1980s,
there is no working railway service in the country today apart from a
few kilometres across a bridge from Uzbekistan.

Afghan President Hamid Karzai and Pakistani Prime Minister Shaukat
Aziz agreed to lay the track at ba meeting last year.

http://rawstory.com/news/dpa/Pakistan_to_lay_first_rail_link_in__05232007.html


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## Neo

*World Bank and IDA to provide $25 million to Pakistan to improve the performance of trade and transport system *

FAISALABAD (May 28 2007): World Bank and IDA will provide $25 million to Pakistan as technical assistance to improve the performance of the Trade and Transport Logistics System and bring it up to international standards with the aim to reduce the cost of doing business in Pakistan and ultimately enhance trade competitiveness and the country's industrialisation.

According to official sources, Planning Commission and Ministry of Commerce, government of Pakistan will achieve this objective through policy reforms targeted within the framework of NTCIP, investment projects relating to railways, road transport, ports and shipping, aviation, trade facilitation and capacity building/analytical work and increased institutional capacity to develop and implement the changed sector environment. Direct recipients of the proposed technical assistance project are NTCMU, TTFU, National Trade and Transport Facilitation Committee (NTTFC), and respective public agencies (ministries, operating authorities).

In an update project report, Jean-Noel Guillossou, Senior Transport Economist of World Bank stated that the initial beneficiary will be Pakistan's private sector trading community, which will have better opportunities to enhance their competitive position in their international markets and, under competitive pressures, reduce costs to consumers. This should in turn generate additional employment and growth opportunities. Pakistani consumers should also benefit from the resulting reduced costs of imports. Specific targets and their benefits will be set during project appraisal, he added.

Based on lessons learned, he said that GOP and World Bank have agreed on financing NTCIP through programmatic DPLs, specific project investment lending and a technical assistance loan. GOP and the Bank also agreed that a multi-sector policy-oriented operation to support implementation of reforms acting as triggers for specific project investment lending would be most effective.

Jean-Noel Guillossou, Senior Transport Economist of World Bank said that the technical assistance loan will help prepare and monitor reforms through establishment of coordination units within the Planning Commission and Ministry of Commerce and provide additional analytical underpinning and training opportunities.

The project is proposed to consist of the following five components (i) capacity development in the entities directly concerned with the implementation of NTCIP during the period of programme execution (NTCMU), (ii) support for the implementation process of NTCIP through analytical work on trade procedures and trade supporting infrastructure and services needs (including roads, railways, ports and shipping, aviation and energy sub-sectors), (iii) further strengthening of the private sector participation through TTFU and NTTFC aiming to internalise public-private collaboration on trade facilitation through a dedicated project component (building on the Bank funded "Trade and Transport Facilitation Project"), (iv) establish sustainable monitoring and evaluation system to evaluate impacts of NTCIP-including the coordination, monitoring and evaluation of the social and environmental safeguard issues, and (v) manage the external communications strategy for the NTCIP.

He mentioned that the project's five components will finance the institutional set up of NTCMU, TTFU, and national and international consultancy services resulting in underlying studies, research, and training. The funds will be proportionately divided in both units.

In order to ensure effective implementation of NTCIP with particular emphasis on trade facilitation, a five-year stand-alone TA is the most feasible option for maximising sustainability and achieving Pakistan's development priorities for international competitiveness.

Many of the technical assistance and capacity building requirements facing the implementation of the NTCIP are institutional and technical in nature, which is difficult to address in investment operations. Stand-alone technical assistance compared to technical assistance components integrated in investment operations has proven to be most effective when dealing with multiple sectors and agencies. Due to its multi modal nature, ownership and implementation of NTCIP is spread across agencies and sectors under the coordination of the Planning Commission and the oversight of the prime minister's office and NTCIP Task Force, he added.

Jean-Noel Guillossou said that the successful implementation of NTCIP will require strong ownership at the ministry and agency level as well as strong leadership at the level of the Planning Commission (acting as the designated coordinating and management agency of NTCIP) as well as collaboration from the private sector. TTFP-1 has proven that strong leadership and true champions of a project/programme are essential for successful outcomes.

Private sector participation has been seen as a prerequisite to trade and transport facilitation initiatives. Major reforms implemented under the program are seen to reduce the cost of doing business in Pakistan. The relatively under-developed private sector in Pakistan has therefore a major role to play by adapting itself to the changed environment, he added.

He explained that the project loan is proposed to amount to $25 million over a period of five years. During project preparation, partnership and collaboration with ADB, JBIC, UNDP and EC will be further developed.

According to World Bank's study, Pakistan's economy has expanded by over 6.5 percent per annum during the past four years. A wide-ranging programme of economic reforms launched in 2000 has played a key role in the country's economic recovery. These reforms have done much to boost Pakistan's share of total trade in GDP (rising to 30 percent in 2005).

Exports have strongly performed in recent years, growing to about $14.4 billion in 2005, and investment has rebounded. To sustain sufficient momentum for this growth in the coming decade, the government of Pakistan (GoP) is now focusing on reducing the cost-of-doing business and increasing productivity and international competitiveness.

A major initiative has therefore been launched by GoP to improve the trade and transport logistics chain along the north-south 'National Trade Corridor' (NTC) linking Pakistan's major ports in the south and south-west with its main industrial centers and neighbouring countries in the north, north-west and east. Together, the ports, roads, and railways along NTC handle 95 percent of external trade, and 65 percent of total land freight serving the regions of the country, which contribute about 85 percent of GDP.

http://www.brecorder.com/index.php?id=569711&currPageNo=1&query=&search=&term=&supDate=


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## Neo

*CAA convinces EUto restart PIA flights *

European Union to revisit its decision in late June in light of the progress made towards removing its reservations

By Saad Hasan

KARACHI: The European Union (EU) has expressed satisfaction over efforts of Civil Aviation Authority (CAA) to help restore normal operations of Pakistan International Airlines (PIA) to the 27-nation bloc, a senior official told The News on Monday. 

Senior CAA officials met EU authorities in Brussels on May 21 to discuss the issue of operational restriction on PIA aircraft, said Deputy Director General CAA Air Vice Marshal Safdar Khan who was among the three-member delegation led by DG Farooq Rehmatullah. 

âThe meeting was very, very positive; a good icebreaker,â he said, adding CAAâs action plan for putting big part of PIA fleet back into European airs was well received by the EU officials. EU that imposed flying restriction on 35 aircraft of Pakistanâs national flag carrier earlier this year will revisit its decision in late June in light of the progress made towards removing its reservations. 

Though it has been reported that the operational restriction on PIAâs B-747s and A-310s was a result of passenger-safety precaution, the aviation authorities in Pakistan insist it was mainly an outcome of poor upkeep of the aircraft.

âBad condition of exterior and interior of a plane reflects the overall performance of the airline,â AVM Khan said, arguing an airline that fails to maintain upkeep of aircraft can not be trusted to ensure safety of passengers either. But, he maintained PIA was in the process of implementing the action plan prepared by CAA to remove the EU grievances. CAA was vigilantly monitoring its implementation, he added. 

However, the woes of the once-prime airline go beyond the EUâs operational restriction. PIA suffered a loss of Rs3.9bn in first quarter of 2007, up almost Rs300m a month from Rs3bn incurred during Jan-March 2006. 

Moreover, former Chairman and CEO Tariq Kirmani left PIA at a time when the airline was crying for a strong leadership to take it out of the financial and operational crises. As fuel price remain vulnerable to US-Iran standoff over nuclear arms issue, the government is yet to extend financial assistance to loss-making PIA to start hedging fuel. PIA faced a loss of Rs13.2bn during 2006 primarily due to high fuel cost. 

http://www.thenews.com.pk/daily_detail.asp?id=58014


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## Neo

June 01, 2007 

*ABN Amro, PIA sign $522m accord*

KARACHI, May 31: Pakistan International Airline (PIA) and ABN Amro signed a loan financing arrangement for $522 million to fund acquisition of three new Boeing 777-300 ER aircraft for the national flag carrier.

The financing arrangement comprises 12-year term loan facilities of $470 million supported by the Export-Import Bank of US and Pakistan government guarantee and seven year commercial facilities of $62 million.

The agreement signing ceremony, arranged by the ABN Amro Bank in Amsterdam, was attended by senior members from ABN Amro's cross border structured finance group, including Maarten Klessens, global head of structured funding and investments, Paul Kranendonk, Global Head Cross Border Structured and Commodity Finance and Naveed A Khan, Country Executive, ABN Amro Pakistan.

Representing the Boeing was Anil Patel. PIA team was led by M Abdul Aleem, chief financial officer.

Klessens congratulated PIA for remarkable achievement which resulted in fleet modernisation through a very attractive financing package.

PIA chairman Zaffar A Khan appreciated ABN Amro and PIA loan agreement in finalising this large transaction at commercially attractive rates.

He said that the government is lending full support to ongoing business operation of airline which is currently undergoing an operational, financial re-structuring and modernisation activity to further improve its customer service and performance.

http://www.dawn.com/2007/06/01/ebr7.htm


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## Neo

*US to provide financial support for improvement of ports *

ISLAMABAD (June 02 2007): The United States will provide financial and technical support for improvement of ports, security and enhancement of facilities at LNG terminals. This was stated by Federal Minister for Ports and Shipping Babar Khan Ghauri after his meeting with Acting U S Ambassador to Pakistan Peter M Boad.

The Federal Minister stated that government was taking concrete measures to promote shipping and advancement of ports, said a press release here on Friday. He said Pakistan had become a focal point of investment for the foreign investors, because of continuation of economic policies of the government, in which advancement and development of ports has taken unusual importance.

He said consistent efforts to establish new ports have brought positive results in this regard. The Federal Minister expressed the hope that in future Pakistani ports will play a key role in connecting Central Asian States Afghanistan and China with other ports of the world for trade and transportation, which will further strengthen Pakistani economy. In the meeting both sides showed satisfaction on the development and performance in this regard.

http://www.brecorder.com/index.php?id=571656&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Airblue starts Islamabad, Manchester flights *

KARACHI (June 02 2007): The first long haul flight operated by a Pakistani private carrier departed for Manchester from Islamabad International Airport on Friday at 15:30 hours Pakistan Standard Time, according to a airblue press release issued here.

The flight was operated by airblue's A321 aircraft carrying a full load of 26 business class and 146 economy class passengers to arrive at Manchester at 20:30 hours UK time.

Airblue, Pakistan's largest private airline, will be operating four-weekly-return flights on the Islamabad-Manchester-Islamabad sector which will increase to five weekly return flights from June 28, 2007 and eventually to a daily flight from mid-July.

Airblue is the first private airline of Pakistan in the aviation history to start long haul operations between Pakistan and the United Kingdom. The new operation was warmly welcomed by the local communities of Azad Kashmir, Pakistan and British Pakistani communities settled in Manchester as new direct flights have been introduced on a sector which had heavy demand, and the passengers had been left with no option to travel by other carriers with long transit stops on route. Now the passengers can complete the journey in nine and a half hours with no change of aircraft.

http://www.brecorder.com/index.php?id=571632&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Railways to induct new fleet of 150 high powered locomotives *

ISLAMABAD (June 03 2007): Minister for Railways Sheikh Rashid Ahmed on Saturday said that all efforts to raise the status of Pakistan Railway matching with international standards are in-hand. As a very first step, he said, steps are afoot to restore the punctuality of train services for the purpose a fleet of 150 new high-powered locomotives are being inducted.

Talking to President PR Commercial Group and Staff Association Multan Division Malik Razaq Riaz, who called on the minister here, the minister urged the workers and officers of railways to put in more efforts to improve the standard of their organisation.

Sheikh Rashid Ahmed said, for the first time in the history of PR the highest ever number of freight coaches - 2181 - have been dispatched from Karachi to the upward destinations.

He said the ministry is attaching top priority to improve parcel and goods services, which he termed was the backbone of the railways. In the passenger sector, he said they had no in-hand plans to increase the fares while improvement in service is being brought in phases.

He said PR has been able to import required machinery for the manufacture of locomotives at Risalpur Locomotive Factory and the consignment would reach Pakistan soon. He said all the efforts are being made on war footings with highest level of care and attention.

The minister said that recently they have introduced five awards on monthly basis for the PR drivers, guards, commercial and technical staff for ensuring strict observance of punctuality. He further said the system of reward has been introduced in Railways for the first time and hoped this would bear fruitful results.

Sheikh Rashid Ahmed said, a number of welfare steps for Railway employees have been taken which include, up-gradation of drivers and guards and other running staff with the trains besides offering permanent job to the contractual employees at different tiers of the organisation.

As far as the provision of facilities to passengers, he said soon e-ticketing would be introduced while the system of issuing tickets against credit cards has already been initiated.

Sheikh Rashid Ahmed said with the induction of almost 15 new passenger trains on various destinations was a major achievement, during his short tenure of 13 months. He said with the induction of new trains the passengers have been able to get sufficient number of seats available for their travel.

The Railway Minister said that feasibility study for running of bullet train between Rawalpindi and Lahore would be completed by July this year, enabling PR to transform the ambitious plan into reality. He said from June 15, the running time of non-stop trains between Rawalpindi and Lahore would be further reduced from existing four hours to three and half hours.

He said the running time of trains on the main track - between Raiwind and Khanewal - has already been reduced up to four hours. The minister said the measures for betterment of commercial staff would be considered sympathetically as a number of steps in this regard are already in the pipeline.

http://www.brecorder.com/index.php?id=572071&currPageNo=3&query=&search=&term=&supDate=


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## Neo

Tuesday, June 05, 2007 

*Cargo handling: Port Qasim sets new target of 2.5m tonnes*

KARACHI: The Port Qasim Authority (PQA) has set a new record for cargo handling of 2.5 million tonnes during the month of May 2007. 

A spokeswoman informed Daily Times on Monday that during current financial year 2006-07, a cargo volume of more than 26 million tonnes is expected to be handled at the PQA, an increase of some 13 percent over the corresponding period of previous year. 

Similarly shipping also showed an increase of 11 percent during current financial year. A record container traffic of more than 0.6 million TEUâs registering an increase of 13 percent over corresponding period, has already been handled at QICT which accounts for major fraction of the containerised traffic of the country. 

Engro Vopak Chemical Terminal caters for major chemicals imports if the country, as POL imports at FOTCO oil terminal are expected to surpass 8 million tonnes capacity mark during 2006-07. 

She said financial year also symbolises PQA as export facilitator since exports at PQA showed major improvements over more than a decade. Dry port comprises wheat, rice and cement, which showed an increase of 81 percent during 2006-07 as compared to previous financial year.

Sustainable growth pattern has been observed at the port over the years as during the first 20 years, from 1983 to 2003, growth in cargo and ship handling has been at 10 percent respectively. However during the tenure of present government, from 2003 onwards to closure of financial year, 2006-07, growth in cargo and ship callings has been observed at 19 percent and 13 respectively per annum.

http://www.dailytimes.com.pk/default.asp?page=2007\06\05\story_5-6-2007_pg5_5


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## Neo

*Rawalpindi-Islamabad mass transit to start soon: Rashid *

RAWALPINDI (June 13 2007): Federal Minister for Railways Sheikh Rashid Ahmed has said that mass transit train between Rawalpindi and Islamabad would not only provide easy communication link to the people of the twin city but also decrease pressure on the roads.

"The train service would start soon to provide better and cheaper travelling facilities to the commuters of twin city", the minister said while addressing the workers of Pakistan Railways at the launch of the first indigenously overhauled locomotive engine at Central Diesel Locomotive Workshop here on Tuesday.

Superintendent Railways Muhammad Hayat Malik, Divisional Superintendent Syed Munawar Shah, Chief Mechanical Engineer (CME) Mian Ahsan Mahmood, Deputy CME Firdaus Khan and a large number of Railways workers were also present on the occasion. The minister said that about 10,000 residential quarters would be constructed for the Pakistan Railways employees across the country.

He said that increasing number of passengers was a proof that the people have confidence in the department. Appreciating the performance of the workers he said that the department earned Rs 2 billion profit in the current financial year only by virtue of hard work of Railways employees. He said that the Railways' employees would be sent abroad for advanced training to improve their technical skills which help modernise Railways to meet world standards.

"The entire Railways network would be altered with the most modern system. Double track would be laid from Peshawar to Karachi in different phases. On the occasion the minister said, "Railways would also purchase wagons and in this connection negotiations with many countries are underway." With 15 percent adhoc relief and up-gradation of pay scales have given relaxation to 90,000 Railways employees, which shown sympathetic approach of President Musharraf and Prime Minister Shaukat Aziz towards the government employees.

http://www.brecorder.com/index.php?id=576700&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Huge spending on Pakistans infrastructure *
By Farhan Bokhari in Islamabad

June 13 2007

Pakistan will spend more than $7bn in the new financial year, which begins next month, on infrastructure such as roads, bridges and power lines, according to the prime minister. 

The spending plan, unprecedented in Pakistans history, is geared to deal with fast-growing demand from an economy now in its third year of recovery.

The government last *Saturday announced plans to spend up to Rps520bn ($8.6bn, 6.4bn, £4.3bn) during the next financial year on national development, half of which is meant to be spent on infrastructure. 

However, Shaukat Aziz, prime minister, told the Financial Times that state-owned corporations such as the Water and Power Development Authority, the main provider of electricity, and the Karachi Port Trust, which manages one of Pakistans largest ports, will together spend an additional Rps220bn ($3.6bn) on developing infrastructure.

There is growing pressure on our infrastructure. The Pakistani economy has doubled in just five years, said Mr Aziz. We have already invested a lot but, as you can see, the demand is rising very fast. 

Mr Aziz denied claims from opposition leaders that the government was significantly raising its public spending in an election year to win favour. He also denied the plan would put pressure on government spending. The fiscal deficit in the next financial year is projected to fall to 4 per cent of gross domestic product from 4.2 per cent. 

This plan has nothing to do with elections but everything to do with infrastructure. The rise in development spending is aimed at removing the bottlenecks that we currently face. 

Sakib Sherani, chief economist for Pakistan at ABN-Amro, said the promised spending represented a jump in real terms but questioned whether the government would succeed. One big issue is the extent to which the government will be able to undertake all of its plans. Pakistan has had a history of projects planned but not executed in time, said Mr Sherani.

Western officials in Islamabad said the spending plan could be derailed if political uncertainty mounted to the extent that it affected Pakistans economic outlook. The opposition parties since March this year have rallied behind Iftikhar Chaudhary, chief justice of the supreme court, since he defied the governments move to force him out of office. Since then public protests surrounding Mr Chaudhary have given momentum to the anti-government movement. 

http://www.ft.com/cms/s/6e72d5ee-19cc-11dc-99c5-000b5df10621.html


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## Neo

*Proactive drive for construction of roads in Punjab *

LAHORE (June 14 2007): Punjab Communication and Works Department has been directed to constitute survey teams comprising engineers and road experts, which would point out black spots and dangerous curves on various roads in the province, so that these could be removed immediately to minimise the threat of accident.

Punjab Communication and Works Minister Chaudhry Zaheer-ud-Din Khan issued this directive to Punjab C&W Secretary Muhammad Ahsan, while presiding over a high level meeting here on Tuesday, disclosed an official. Additional Secretary (Technical) Masood-ur-Rasool, Chief Engineer Highway North, Chief Engineer Highway South and Superintending Engineers also attended the meeting.

Chaudhry Zaheed-ud-Din said that the rate of traffic accidents could be minimised by removing the black spots and dangerous curves from the roads. He directed the Chief Engineers North and South to chalk out a comprehensive plan for the construction of such roads, which have completed their designed lifetime.

He said that a plan should be evolved to improve the geometry of existing roads. He directed that Communication & Works officers to launch a comprehensive campaign in collaboration with district governments and local police to remove encroachments from inter-districts and other important roads. He also directed that road-marking and traffic signboards should be displayed at roads on priority basis for the guidance of drivers.

http://www.brecorder.com/index.php?id=577091&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*ADB and Canada to support Kandahar-Spin Boldak roadwork: $12.8 million grant pledged *

ISLAMABAD (June 15 2007): ADB and Canada will support the completion of the 103.4-km Kandahar-Spin Boldak Road with a $12.8 million grant. The road starts at Kandahar, south-eastern Afghanistan, and continues to the south-east, through the Hada Hills, and ends at the Afghan-Pakistan border town of Spin-Boldak.

Rehabilitation of the road began in October 2002 with $30 million grant to Afghanistan from ADB's Japan Fund for Poverty Reduction and the Kuwait Fund for Arab Economic Development. The funding covered reconstruction and improvement works on 61.4 kilometers of the road, said a statement of the bank.

The new grant would be used to rehabilitate the remaining 42 kilometers of the road and boost employment, trade and commerce in south-east Afghanistan. "The road's full potential cannot be realised until its entire length has been improved," said Robert Rinker, Senior Portfolio Management Specialist with ADB's office in Afghanistan.

The roadwork has provided employment to residents and returning refugees and expanded opportunities for trade and commerce. Average daily traffic increased from around 2,500 vehicles in 2003 to over 3,800 in 2005 and is expected to continue to increase. The project will be undertaken by Hamkar Construction Co-Afghanistan, which won the contract through a public bidding by Afghanistan's Ministry of Public Works.

http://www.brecorder.com/index.php?id=577830&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Pakistan Deep Sea Water Container Port *

Malpractice in bidding pointed out

KARACHI: Bidders have questioned the bidding process of Pakistan Deep Sea Water Container Port, as parties allowed to participate in the tendering are one way or the other submitting two tenders simultaneously.

The ministry of finance has issued a notification through SRO 432 (1)/2004 which, declares this act as a violation of the rules and regulations, which is soliciting of any thing of value to influence the action of a public official or the supplier or contractor in the procurement process or in contract execution to the detriment of the procuring agencies. 

According to the shipping sources this would lead to establish bid prices at artificial, non-competitive levels and to deprive the procuring agencies of the benefits of free and open competition.

The sources said that the co-owners of QICT and KICT have been allowed to tender separately. On the face of it, there are four pre-qualified bidders but because of the global partnerships and joint shareholdings amongst the parties, there are in fact only two distinct groups within the four parties ñ DP World and Maersk Line being one group and PSA and HPH being the other. 

The pre-qualification parameters are kept at such a high level that all Pakistani firms in the port business together can not be pre-qualified. 

According to tendering principles, all the four companies should have been debarred from the tendering by the consultants as well as port authorities on the charge of participating in the submission of more than one tender, the sources added. 

http://www.thenews.com.pk/daily_detail.asp?id=60532


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## Neo

*Bus service between Pakistan and Nepal urged *

KHATMANDU (June 16 2007): Nepalese Foreign Minister Sahana Pradhan declared that Nepal and Pakistan have a long history of cordial relations and working together at regional and international forums, including Saarc but voiced her disappointment that the required progress has not been achieved by Saarc like Asean or the European Union.

Talking to CPNE delegation led by its president Syed Fasieh Iqbal, here on Friday the Nepalese Foreign Minister said promotion of tourism between Nepal and Pakistan through a regular bus service via India should be pursued seriously by both the countries. Nepal shall lend its full support to the proposal, because promotion of tourism and people to people exchange is within the charter of Saarc and Nepal would definitely support such a measure.

Talking of close ties with Pakistan she said that both countries had a shared history of freedom struggle. Pakistan and India became independent after colonial rule in 1947, Burma became independent after having remained a colony of the British in 1948 and Nepal also became independent in 1951. She felt very strongly that road and air links between Nepal and Pakistan must be expanded to the optimum level.

http://www.brecorder.com/index.php?id=578120&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Daewoo to run buses in Karachi *

KARACHI (June 17 2007): City Nazim Karachi, Syed Mustafa Kamal has offered the Daewoo Company to initiate bus service in the metropolis. Kamal assured that city government will support the company to start bus services and urged that it should initiate services with CNG buses.

These views he expressed in a meeting with Change II Kim, Chief Executive of Daewoo Pak Express Bus Services who called on him at his secretariat on Saturday. Offering provision of land and possible co-operation in other areas, he urged the bus service provider firm to establish a training institute for 500 drivers and technicians to create a neat transport culture.

http://www.brecorder.com/index.php?id=578800&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Over Rs 600 million road network plan initiated *

SIALKOT (June 20 2007): Sialkot district government has initiated a road network plan costing over Rs 600 million, under which repair and reconstruction of 127 roads in Sialkot, Daska, Pasrur and Sambrial tehsils of the district are being accomplished.

District Nazim Muhammad Akmal Cheema disclosed this while talking to reporters here on Tuesday. To streamline the traffic system, a comprehensive plan is being prepared by the Sialkot district government. Keeping in view the requirements of the next 50 years, a ring road would be constructed, he said.

Akmal Cheema said that construction work on Sialkot-Lahore road, costing Rs 20 billion would be carried out soon, which, on completion, would help reduce the travelling distance. The Nazim further revealed that Rs 55 million were being spent on widening of BRB Canal Bridge near Daska city, while Rs 350 million were being spent on widening of Sialkot-Head Marala road for channelling the traffic.

Akmal disclosed that more than Rs 45.2 million were being spent on agriculture technology, agricultural research, improvement of irrigation system, and provision of quality seeds and to ensure extension of agriculture. The step had been taken for introducing new agricultural technologies for increasing per acre yield of crops in Sialkot district, he added.

The District Nazim revealed that as many as 66 watercourses were nearing completion, of which 41 watercourses were being constructed in canal areas, and 25 in Barani area. The completion of these watercourses would not only ensure sufficient irrigation water, but would also prevent wastage of water in the district, he added.

Apart from this, he said adequate arrangements had been made for imparting agricultural education to the farmers and cultivators, besides exhibition plots were being prepared in various parts of the district for dissemination of necessary information to the growers about various crops.

The District Nazim disclosed that all out efforts were being made for the promotion of livestock sector at a cost of Rs 5.87 million besides seven veterinary dispensaries had been established, while rupees three million were available for undertaking new projects in Sialkot district.

Akmal vowed to convert Sialkot district into a model district of the Punjab and for this purpose all available resources were being mobilised in transparent manner for further accelerating the pace of development work.

http://www.brecorder.com/index.php?id=579953&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Musharraf orders timely completion of roads*

ISLAMABAD, June 19: President Pervez Musharraf has directed the National Highways Authority to ensure timely completion of major road projects while maintaining stringent quality standards.

Speaking at a meeting of the Ministry of Communication held here on Tuesday to review the pace of road projects and the future plans, the president directed the authority to complete the Islamabad-Peshawar Motorway (M-1) by October this year. He directed the Ministry of Finance to release necessary funds.

He said the NHA must ensure completion on time to check cost escalation.

The president took note of the poor construction of the 68-kilometre Nowshera-Pabbi section and 48-kilometre Nooriabad-Hyderabad section and directed to initiate necessary action against the responsible for negligence.

He said that the quality of work must be ensured in future projects and warned that negligence would not be tolerated as far as the standard of the construction work was concerned.

Underscoring the need for involving the private sector in future projects on the build-operate-transfer (BOT) basis, President Musharraf said it would lessen the burden on the public sector.

http://www.dawn.com/2007/06/20/top10.htm


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## Introvert

*$6-7bn to be spent on infrastructure*

ISLAMABAD, June 22: Prime Minister Shaukat Aziz said has said that $6-7 billion will be spent on infrastructure development in Pakistan during the next five years.

Chairing a meeting to review the steps required to improve the logistics chain in the country, the premier said this year the federal government would spend Rs60 billion on infrastructure development and transportation.

The amount spent by the provincial governments in these sectors will be in addition to this, he added.

He said under the National Trade Corridor (NTC) Plan, the government is focusing on improving the end to end logistics chain to improve productivity and competitiveness of industrial sector.

Under NTC, he said improvements are being made in the system of railways, roads and highways.

Processes at the ports, airports and land borders have been simplified to reduce the clearance time. The completion of NTC plan and building of North-South Corridor would remove the road blocks to our industrial development and trade enhancement, he added.

We want to jump the curve and do the right things rightly to improve our productivity and competitiveness, he said.

The meeting decided that the Planning Commission and the Asian Development Bank (ADB) would jointly prepare a strategic framework to improve the business enabling infrastructure in Pakistan.

The Planning Commission will coordinate with all related departments to prepare the framework. The study that will be carried by a world class consulting firm will focus on determining the future growth requirements in Pakistan.

It will be completed within a year and will have five stages; assessing the current situation, setting growth priorities, critical enablers and alignments to NTC, syndication and stakeholders management, implementation, planning and institutionalisation.

Mr Aziz said the initiative is well timed and the first essential step to operationalise the vision 2030 approved by the National Economic Council (NEC) in its meeting held on May 31, 2007.

ADB Country Director, Peter L. Fedon said the strategic framework, to be jointly prepared by the ADB and Pakistan government, will focus on improving the competitive advantage of Pakistan. It will identify steps to bring improvements in terms of competitiveness and optimal utilisation of resources.

http://www.dawn.com/2007/06/23/ebr2.htm


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## Neo

*Sindh government to build 278.6-km coastal highway ​*
KARACHI (June 28 2007): Sindh Chief Minister has approved a summary for the construction of Sindh Coastal Highway, with new alignment of Super Highway, to Sehwan and new alternative road via Khokhrapar-Malir-Memon Goth-Darsano Chano-Haleji-Jhimpir-Jhirk-Mulla Katyar-Umerkot.

According to the feasibility report, the length of the highway is 278.6 km, whose cost has been estimated at Rs 3.053 billion, while the annual recurring expenditure after completion would be Rs 45.7 million. The pavement width would be 5.5 metres.

The summary was sent to the Chief Minister by Works and Services Department, and it proposed that the federal government may be approached to include the scheme in next year's PSDP to be executed by National Highway Authority (NHA), or it may be funded by provincial government as a special project, to be executed through a project director/chief engineer appointed for the purpose. The CM approved the proposal and has asked the Planning and Development Department to expedite the process.

A sum of Rs 50 million has been allocated in the 2007-08 provincial budget for the project. An official of Planning and Development Department told Business Recorder that the project would take around four years to be completed. He said that in the initial stage, the allocation was low and process was slower, but in middle and final stages the allocation would be higher and work would be speedier.

He said that in the provincial budget 2007-08, highest priority had been accorded to transport and communication sector, for which 19.55 percent of total ADP ie Rs 7660 million had been set aside.

Works and Services Department Sindh through a consultant had done the feasibility study of the project from Ghaggar Phatak to Ali Bandar. Pak Army had also cleared the proposed alignment. On the request of Sindh Government, the NHA had included it in Federal PSDP under NHA sector during 2003-04-05.

However, it was not reflected in MTDF 2005-10, giving rise to presumption that the planners in Islamabad had relegated this vital scheme to the backyard of development portfolio.

The department also approached donor agencies including ADB and JBIC for taking up this scheme but no commitment was made by them. Keeping in view the importance of this scheme, the CM perforce announced that Coastal Highway would be constructed by provincial government through provincial funds.

As it is an uphill task, because if the subject project costing more than Rs 3 billion was included in provincial ADP, it would be difficult to finance through regular T&C sector without critically damaging the on-going schemes portfolios.

Therefore, Works and Services Department proposed that the provincial government may fund the scheme as a special project to be executed through a project director/chief engineer appointed for the purpose, which the Chief Minister Sindh approved and allocations were made in the provincial budget.

http://www.brecorder.com/index.php?id=584032&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Sialkot allocated Rs 400 million for road construction ​*
SIALKOT (June 29 2007): Sialkot District Government has allocated more than Rs 400 million in 2007-08 budget for the construction of new roads of 200km length in Sialkot, Pasrur, Daska and Sambrial tehsils of the district. District nazim Akmal Cheema told newsmen here on Thursday.

He said the construction of 93 new roads costing over Rs 356 million had been completed, repairing and reconstruction work of 85 roads costing Rs 230 million also completed.

District nazim disclosed that Rs 3.9 million had been set aside for the welfare of handicapped children, while free textbooks, uniforms, wheels chair and hearing aids will also be provided to them. Other facilities included a stipend of Rs 200 to each student, and pick and drop facility. He said 20 education schemes at a cost of Rs 55.1 million were initiated of them 11 schemes have been accomplished.

http://www.brecorder.com/index.php?id=584721&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Lahore Rapid Mass Transit System to be introduced soon ​*
LAHORE (June 29 2007): The Punjab Transport Department will introduce Lahore Rapid Mass Transit System (LRMTS) to provide international standard intra-city travelling facilities to the passengers of the metropolis with the cost of 2.4 billion dollars.

This mega project will be completed till 2020 and its first green track will be accomplished till 2012.The green track will stretch over 27-killometer track. This was stated by Chairman Planning and Development Suleman Ghani while talking to media men after addressing a seminar regarding the Lahore Rapid Mass Transport System, held here at a local hotel on Thursday. He said that the completion of the green track is the first and foremost priority of the Punjab government and after its accomplishment, better, fast and safe travelling facilities would be available for the common people.

He further said that Lahore was the second largest urban centre in Pakistan. In mid 2006 government estimates put the population at around 9 million people which places Lahore in the top 30 of the world's largest cities, he added. The population is growing rapidly and 30 percent of the workforce is employed in construction and car ownership is rising at 10-15 percent per annum, he pointed out.

He said that there are currently some 13.5 million daily commuters using various modes of transport. The public transport system of Lahore has not kept pace with the growing number of travellers, with the result that private car travelling is outstripping the highway network capacity and congestion is increasing on every passing day.

Consequently, attention is now focused on developing high quality; rail based rapid mass transit solutions for the city, he maintained.

The Regional Director and transport consultant Mazhar Iqbal while talking to Business Recorder said that after the completion of this project more than 200,000 people would travel daily through green track which would start from Humza Town to Shahdra Town and total route would be 27 km, he maintained.

Chairman P&D Suleman Ghani talking to this scribe said that according to feasibility report, the project had to be completed by 2012 but "we are trying our best to complete it in 2011, because the World Cup would be held in 2012 and before this we have to complete it," he observed.

The Secretary Transport Agha Nadeem, head of Provincial Transport Authority Khalid Mehmood Mehla and Regional Transport Secretary Chaudhry Muhammad Iqbal and representatives of the various transport related departments and foreign consultants from various countries are also participating in the seminar.

http://www.brecorder.com/index.php?id=584736&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Govt working on new railway services in Balochistan​*
QUETTA: Federal Railways Minister Sheikh Rashid Ahmed said on Monday that discussions to improve the train service between Iran and Pakistan were underway with the Iranian government. 

Inspecting various railway stations in Balochistan, the minister said that the government intended to develop the railway system in Balochistan, which was established by the British rulers in the late 1880s. He said that the government had started talks with Iran to increase the number of trains between Quetta and Zahidan, the capital of the Iranian province of Balochistan. He said that currently only one train ran between the two provincial capitals once a fortnight. He said that not only had Iran agreed to increase the number of trains, it has also shown interest in revamping the 361-kilometre Quetta-Zahidan railroad. 

He said that the government had invited experts from Germany to prepare the feasibility report for Asias longest railroad tunnel between Chaman and Khozhak. 

President Musharraf has agreed to fulfill the demand of the people of Balochistan to start train services between Bostan and Zhob, which would later be connected to Peshawar. The government will spend Rs 8 billion on expanding the railroad network in Balochistan, he said.

The minister said that train services in Balochistan had not been suspended in the recent floods. He said that Pakistan Railways (PR) had not suffered any serious losses in the floods. Damage to the tracks was minor, which the PR was capable of repairing, he added. He said that the government would provide better residential facilities to railway police personnel and the Frontier Corps (FC). He also promised that the next train service, whenever launched, would be launched from Balochistan to assure the people of the province of their participation in the development of the country.

http://www.dailytimes.com.pk/default.asp?page=2007\07\03\story_3-7-2007_pg7_17


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## Neo

*Sialkot airport to be operational from next week ​*
SIALKOT (July 03 2007): Sialkot International Airport will be operational in second week of current month and initially cargo and domestic flights would be operated. Airport sources told Business Recorder here on Sunday that this mega project costing Rs 2 billion had a great significance as it was totally financed by the private sector.

The project had undertaken on build, own and operate (BOO) basis. This modern and professionally designed International Airport has been developed over 1004 acres of land and fully equipped for handling B747-400, A300 and 737 aircraft. Most modern apron having the parking capacity for six wide-bodies aircraft or three airbus plus F-27 aircraft had been constructed at the airport. Besides 3600 meter long, 45-meter wide taxiway had also been constructed, they said.

The longest international runway of the country measuring 3.6 km had been constructed and it would cater to the requirements of all aircraft used for international and domestic cargo and passenger traffic. The work on main passenger terminal was in full swing, however, temporary arrangements had been made to accommodate passengers at the airport, they said.

The airport will not only cater to the needs of golden industrial triangle of Sialkot, Gujranwala and Gujrat but also generate thousands employment opportunities besides bringing a revolutionary change in the socio-economic development of the region.

With the merging of Dry Port, Export Processing Zone and Airport at Sialkot, it will ultimately help substantial increase in the exports from the area in future. Besides, the construction of mega project of Sialkot-Lahore motorway and setting up of an engineering university and industrial zone in the area had further increased the importance of the airport.

In the absence of airport, the exporters of Sialkot were confronting with multifarious problems because the air cargo from the area was sent via Lahore and Islamabad airports. With the support and co-operation of the government the construction of airport has been given practical shape, which would ultimately help reduce the logistic problems of exporters of the region.

The potential traffic forecast for Sialkot international airport is scaled down at the time of opening to 530,339 passengers a year while estimated cargo tonnage at the time of opening is expected to be 285,15 tonnes. This means that by the end of year 2012 about 53,000 tonnes of cargo will be lifted from the Airport.

Due to the provision of passenger facilities at Sialkot International Airport, it was estimated that the general public would benefit to the tune of over Rs 2 billion in terms of time and money savings.

Similarly, cargo handling at the airport would save more than Rs 1 billion for the businesses. The total saving of at least Rs 3 billion annually would be a perpetual benefit. The business community has played significant role in undertaking such a huge airport project elegantly on self-reliance basis for fulfilling their dream.

http://www.brecorder.com/index.php?id=586140&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Mekran Coastal Highway: minister sees serious flaws in design ​*
KARACHI (July 03 2007): Some serious flaws in designing have been noticed at some of the locations of Mekran Coastal Highway (MCH) after it was washed away by rains and floods at various points. Flaws in its designing at some locations have surfaced as no study or data was available for annual rains and floods.

Federal Minister for Communication, Mohammed Shamim Siddiqui expressed these views in an exclusive interview to Business Recorder. According to him, it will take further two-and-a-half years to stabilise it for a steady traffic flow in conditions like storms and heavy rains.

He said the MCH would take at least two more years to stabilise to give reliable service to all vehicular traffic. The highway was inaugurated in December 2004. The recent cyclone has exposed the vulnerability and inadequacy of such poor execution in haste. Designing of MCH needs to be corrected, he said, adding that the project of such magnitude required accurate studies to build as it was not constructed for a limited period or limited traffic.

The MCH needed changes in its route due to design flaw, he said, adding that it would be stabilised by 2009. The recent cyclone '03B, 'Yemyin' that hit the Balochistan coastline and brought heavy rains was more devastating than the torrential rains of 2005 in the same area.

After 2005 rains, the initial cost for streamlining the highway and plugging of breaches and adding new culverts at various locations was Rs 150 million, but more funds is needed for redesigning the MCH. He said adding that the communication ministry had allocated an additional amount of Rs 850 million to construct more culverts and redesigning.

Various teams of National Highway Authority (NHA) deputed at affected portion of MCH are monitoring the situation to plug breaches and repair damaged culverts enroute. "We are assessing and evaluating the damages by the recent storm and it is estimated that Rs 250 to Rs 300 million would be required to rehabilitate the highway," he pointed out.

Shamim was of the view that the construction of MCH seemed to have been done in haste no one could evaluate at that time what was going to happen after storm or severe spell of rains. He said, "Some of the data was evaluated with help of local residents, which does not serve the purpose to construct such a big project."

The importance of MCH is increasing day by day due to Gwadar Port and after completing link with the Iranian border, he said, adding that this route would be useful for trading goods by road with Iran in near future.

http://www.brecorder.com/index.php?id=586089&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Rs 14.300 billion earmarked for road sector ​*
LAHORE (July 03 2007): Punjab Minister for Communication and Works, Chaudhry Zaheer-ud-Din has said that Rs 14.300 billion have been earmarked during the current fiscal year for the road sector. The target for the construction of 600-km long new roads and widening of 700-km long existing roads had been fixed, he added.

He was presiding over a high-level meeting to review the Annual Development Programme of Communication and Works Department at his office here on Monday. Secretary C&W Muhammad Ahsan, Additional Secretary (Technical) Masood Rasool, Chief Engineer Highway (North & South) Superintending Engineers and Xens also attended the meeting.

The meeting was informed that out of a total of 641 schemes in road sector, 200 schemes had been fully funded, which would be completed during the current fiscal year. It was informed that 597 schemes would continue during the current fiscal year while 47 new schemes would also be launched.

About 10-feet wide roads would be widened up to 20-feet while 12-feet wide road would be widened up to 24-feet, the meeting was apprised. He directed officers to ensure quality of schemes at every cost besides timely completion of development schemes and warned that any negligence would not be tolerated.

http://www.brecorder.com/index.php?id=586122&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Laraib Energy signs $120 million loan documents with ADB, NBP and HBL ​*
ISLAMABAD (July 03 2007): Laraib Energy Limited has signed loan documents with Asian Development Bank (ADB), National Bank of Pakistan and Habib Bank for $120 million for setting up 84 MW hydropower project, 8 km downstream Mangla dam.

The firm was very active in financial close during last several months but due to some bottlenecks on the part of government departments, it was delayed. However, documents for financial close were signed on June 30.

The power company in its press release on Monday said that with the rapidly deteriorating power situation in Pakistan and expensive thermal power plants in the pipeline required serious consideration of thermal and hydel mix, which is presently around 33 per cent.

Laraib hydropower project reached financial close after 12 years' efforts by the company's management and this situation also raises several questions ie is this the way to deal with serious investors? Last year, the government restored tariff policy of 1995 and what the power firm believe that for almost 10 years between 1997 and 2006 no commercially viable tariff was available.

http://www.brecorder.com/index.php?id=586116&currPageNo=1&query=&search=&term=&supDate=


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## Neo

Tuesday, July 03, 2007 

*EU to lift restrictions on PIA​*
KARACHI: Restriction imposed on a segment of the PIAs fleet by the Air Safety Committee of the European Union (EU) will be partially lifted from July 6, 2007.

The restriction, imposed by EU on March 6, 2007 disallowed PIA from operating its Boeing 747s and Airbus 310s (a fleet of 20 aircrafts) to European destinations. 

According to a press release on Monday, the relaxation announced would enable PIA to operate eleven designated Boeing 747 and Airbus 310 aircrafts into Europe. The remaining fleet of similar aircrafts will be reviewed in September and October timeframe, when full removal of the restriction will be considered. 

The Chairman of PIA, Zaffar A Khan said the progress the airline had made overcame the concerns of EU.

http://www.dailytimes.com.pk/default.asp?page=2007\07\03\story_3-7-2007_pg5_5


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## Neo

*Malaysia And Pakistan Increase Flights To 14 Times Weekly​*
By Umi Hani Sharani

KUALA LUMPUR, July 6 (Bernama) -- Malaysia and Pakistan have signed a Memorandum of Understanding (MoU) to increase air links from the current three weekly to 14 weekly frequencies.

Minister of Transport, Datuk Seri Chan Kong Choy told Bernama that the present flights were not enough as both countries aim to further intensify bilateral trade, investment and tourism.

The flights will be seven each to Karachi and Lahore, while Pakistan will operate an equal number of flights to Kuala Lumpur and other points in Malaysia.

"Pakistan is an important country to us. The current frequencies are not adequate, especially now that we are promoting Malaysia aggressively not only for trade and investment, but for tourism as well in conjunction with Visit Malaysia Year 2007," he said in a telephone interview.

The agreement, he said, was inked yesterday after two days of bilateral Air Services Agreement (ASA) talks in Pakistan.

Chan said the idea to increase the flight frequencies was mooted late last year when Prime Minister Datuk Seri Abdullah Ahmad Badawi was on a state visit to Pakistan.

"This signing is a follow-up action by both countries' aviation authorities in a move to enhance bilateral relations in the area of economy and culture," he said.

Under the MoU, the airlines of both countries are also allowed to operate an unlimited number of frequencies exclusively for cargo operations.

Meanwhile, Malaysia Airlines Commercial Director, Datuk Rashid Khan said the national carrier will be operating new services - Kuala Lumpur/Karachi/Lahore/ Kuala Lumpur - three times weekly starting 2008.

http://www.bernama.com/bernama/v3/news_lite.php?id=271835


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## Neo

*Foundation-stone laying of 'Lahore Mass Transit Train' project in September ​*
LAHORE (July 10 2007): The foundation stone of 'Lahore Rapid Mass Transit Train' project would be laid in September this year, while a separate autonomous body would be established for the speedy implementation of this project.

Punjab Chief Minister Chaudhry Pervaiz Elahi stated this, while presiding over a high-level meeting, held to review the pace of work of Lahore Rapid Mass Transit System, here on Monday.

In the Phase-I, Green Line and Orange Line would be constructed which would cost $2.4 billion and $1.9 billion, respectively. The 'Green Train' would ply from Shahdara to Hamza Town via Ravi Road, Lower Mall, Mall Road, Fatima Jinnah Road, Qartaba Chowk and Ferozepur Road areas.

Similarly, the 'Orange Train' would run from Pakistan Mint to Sabzazar via Shahnur, Awan Town, Hinjarwal, Niaz Beg, Canal View, Wahdat Road, Ali Town, Salahuddin Road, Bund Road, Islam Park, Dera Gujjran Depot, Mahmood Booti, Salamatpura, Samanabad, Gulshan Ravi, Chauburji, Lake Road, Lakshami Chowk, Railway Station, Sultanpura, UET, Baghbanpura and Shalimar Garden areas.

In the Phase-II, 24-km-long Blue Line and 19-km-long Purple Line would be constructed. The 'Blue Train' will pass through Model Town and Gulberg, while the 'Purple Train' will pass through from Allama Iqbal Town, Cantonment Area and airport areas. The central interchange station of Green and Orange lines would also be established besides linking these lines at Ring Road, railway station, airport, and Sports City.

The chief minister said this project will not only solve traffic problems, but hundreds of thousands of people would also be provided comfortable, low-rate, safe and rapid transport facilities of international standard on daily basis.

He said this project is of great significance which would help resolve traffic problems apart from providing transport facilities of international standard in view of increasing population of Lahore.

This project will help promote tourism, expedite the process of social development and uplift of living standard of the people besides, leaving a positive impact on environment, he added.

He also said this project would help provide standardised transport facilities to accelerate the pace of economic development apart from generating job opportunities for the people, which will result in poverty alleviation from the province. Nevertheless, this project will enhance the beautification of Lahore and highlight its historical, cultural and traditional image, he added.

The chief minister said both the 'Green Line' and 'Orange Line' of this project would be completed by 2011 and 2015, respectively. He also said the Mass Transit Track would be 97-km-long, which will be included 27-km-long Green Line out of which 11.6-km-long track would be underground, while 15.4-km-long would be overhead.

He said that 12 underground and 10 overhead stations would be set up on it. Similarly, Orange Line would also be 27-km-long out of which, 6.9-km-long tracks would be underground, while 20.2-km-long would be overhead upon which six underground and 20 overhead stations would be established.

He said that one unit of air-conditioned train will have the seating capacity of 500 passengers. The mass transit stations of international standard would be constructed for the facility of passengers where security and escalators as well as other facilities would he provided, he added. He said initially, 227,000 people would benefit from the Green Train and 245,000 people from the Orange Train.

Punjab Transport Minister Mohyuddin Chishti, P&D Chairman Salman Ghani, Principal Secretary to Chief Minister, G.M, Sikandar, Regional Director MVA Asia Ltd, Mazhar Iqbal, Consultants of MVA, Alexander Jonard, Mare Habi and other officers of P&D Department were also present on the occasion.

http://www.brecorder.com/index.php?id=590101&currPageNo=2&query=&search=&term=&supDate=


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## Neo

*Lahore mass transit system​*
THE Punjab government continues to shuttle between the rail and the road in its search for a way out of the great commuters muddle which grows denser by the day. So when the government is not mulling improvements in its famous ring road plan for Lahore, it is thinking about providing the city with a mass train transit system. In fact, venturing beyond the planning stage, Chief Minister Pervaiz Elahi has now announced that the project will be launched in September this year. The idea is most probably inspired by Delhi. The man behind the Delhi mass transit system was in the Punjab capital not too long ago to give a green signal to the Lahore rail project. An average Lahore wayfarer would be hoping that the path to the train would be less bumpy than has been the fate of the ring road plan that is there one moment and gone the next  which doesnt rule out controversy.

The chief minister says that initially, two lines  orange line and green line  would be constructed by 2015. Each of it would be 27-kilometres long. Later, two more lines, purple and blue, will be added to complete the system. For long stretches, these lines would run overhead given that constructing an underground rail network in the city is not very feasible. To be completed with what an official handout calls cooperation of the Asian Development Bank, the first two lines will cost $3.3 billion. In real terms, the cost of the project is yet to be worked out. Surely, notes of dissent are expected to start pouring in. The economists are going to question the heavy debt the project will incur for the government and the citizens, while the opposition politicians are most definitely going to give their own colour to these lines and the sabza group may soon be out to enumerate the effects of this development on Lahores environment. Some of these points may be very valid and should elicit a thoughtful response from the government. There can be no moving ahead without this exercise. The sooner this essential exercise is carried out the better it would be for everyone.

http://www.dawn.com/2007/07/12/ed.htm#2


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## Contrarian

You know Neo, when i mentioned this news to people in PDF, i got insulted saying stuff like 'wev seen the $hit mass transit system u got' and '********* cannot show anything', 'only thing ********* can do is this and that'.

I mentioned that Pakistan had seeked a feasibility report from Delhi Metro Rail Corp on the viability of it in Pakistan, as Delhi is the closest model that would have to be replicated, bcause of congestion, population and other things that are common in India and Pakistan.Sreedharan had gone to Pakistan for it, among other things. 
I wish i could show this report to them now, fortuntely i was banned.


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## Neo

*Traders demand express train for Multan ​* 
MULTAN (July 18 2007): Traders, industrialists and common people have demanded of Railway authorities to divert the route of Rohi-Express and Hazara express via Multan to facilitate thousands of people, who want to travel by train between Multan-Jhang, Shah Jewna, Sillanwali, Shaheenabad and Sargodha.

They also demanded to introduce a new fast train on this route to facilitate the people of southern Punjab. Khawaja Muhammad Shafiq, Chairman, Traders Alliance, Niaz Muhammad Shaikh, Tariq Raza Khan and others said that Multan-Sargodha section via Jhang had totally been neglected for the last sixty years.

There was no telecommunication system between Shorkot and Shaheenabad area. All stations are without water and light. The platforms are broken and dilapidated, they added. They said that Sandal Express was the only train for people of Multan to travel to Jhang and adjacent areas, which completes its journey of (170 miles-272 km) in ten to 12 hours.

http://www.brecorder.com/index.php?id=594049&currPageNo=2&query=&search=&term=&supDate=


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## solid snake

I didn't know Lahore was planning a mass transit train system. That is great news! I hope we get some help from Delhi, and that construction goes off without a hitch.

What I'm wondering is whether there will be any segregation on the trains. In Pakistan, buses have separate sections for men and women. Will this train system have this? I hope not, because it creates unnecessary inconvenience for everyone. There should be security on board the train so if anyone acts like a dumbass towards a lady, he gets arrested.



malaymishra123 said:


> You know Neo, when i mentioned this news to people in PDF, i got insulted saying stuff like 'wev seen the $hit mass transit system u got' and '********* cannot show anything', 'only thing ********* can do is this and that'.
> 
> I mentioned that Pakistan had seeked a feasibility report from Delhi Metro Rail Corp on the viability of it in Pakistan, as Delhi is the closest model that would have to be replicated, bcause of congestion, population and other things that are common in India and Pakistan.Sreedharan had gone to Pakistan for it, among other things.
> I wish i could show this report to them now, fortuntely i was banned.




I got banned from PDF because I defended Miss Pakistan against the attacks users of that site were making against her. They were insinuating that she was a whore, and other things you can well imagine. They accussed me of being an Indian, and promptly banned me. 

They are a bunch of juvenile losers. 

Now this forum is a real defense forum


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## Neo

*Air passenger traffic to rise 94pc in five years  ​*
KARACHI: Pakistan is expecting a jump of 94 per cent in the number of passengers using its airports from current 17 million to 33 million in next five years, The News has learnt.

It also intends to increase the number of international airlines operating in the country to 40 from 24 between 2008 and 2012, according to Civil Aviation Authority (CAA)s five-year business plan.

The CAA has also planned to make Karachi and Lahore regional hubs for West-bound air traffic, generating from the Asia-Pacific region, by seeking investments in airport-related infrastructure of the two cities.

Asia-Pacific countries will contribute the highest number of air passengers in the targeted period, said a senior CAA official, who was involved in the formulation of the medium-term strategy, but requested not to be named.

We need to convince these Asian airlines to drop their passengers here from where the western carriers could take the traffic to Europe and beyond.

According to Boeing, the American aircraft manufacturer, airlines in the Asia-Pacific region including China, Singapore, Thailand and Malaysia had altogether ordered some 8,000 aircraft, he said.

Just past week, global airports organisation Airports Council International announced that a record number of passengers totaling 4.4 billion traveled in 2006 with Beijing seeing the biggest rise in passenger traffic.

The CAA believes that its airports are ideally placed in South Asia having close proximity to South East Asia, Middle East and Central Asia.

The point is substantiated by one of its comparative studies, which shows a saving of 47 minutes on Hong Kong-Karachi-Brussels route for a flight going from Hong Kong to Brussels via Dubai.

However, an even greater emphasis is on making international hubs by providing a diverse range of facilities including world-class hotels, shopping plazas and other allied infrastructure for transit passengers.

Land is cheaper here and international airlines could use this to their advantage, the CAA official said, explaining that setting up aviation schools and training centres in Pakistan was much more cost-effective.

He also referred to an idea of building an aviation tower in Karachi or Lahore where foreign carriers could relocate their satellite offices.

The worth of land space in and around the airports runs into billions of rupees and it was only after Farooq Rehmatullah took over as Director General CAA a serious thought was given to utilisation of dormant non-aeronautical assets of the aviation regulator.

According to a new assessment, the CAAs non-aeronautical assets are valued at Rs177 billion against a book value of Rs17 billion.

Moreover, the CAA is eyeing increase in its revenues from current level of around Rs12 billion to Rs31 billion by 2012, a rise of 158 per cent.

http://www.thenews.com.pk/daily_detail.asp?id=65274


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## Neo

*Lufthansa announces flights from Pakistan​*
LAHORE: Lufthansa, a German Airline, has announced to start its flights towards Karachi and Lahore from October 2007.

An official press release by the company on Saturday announced that the company would start its service from October 28, 2007 thrice a week flights from Karachi to Lahore and Frankfurt.

Vice President sales and services Southeast Europe, Africa and Middle East, Joachim Steinback has stated Lufthansa Network would strengthen the bilateral economic relation by connecting the commercial and industrial cities of Pakistan, Middle East and Germany.

Joachim Steinback, who is also heading the strategically most important regions of Lufthansa Network, said that passengers of Pakistan and Germany would have access to the extensive route network of Lufthansa connecting through the Lufthansa hub Frankfurt to other European countries as well as to the United States.

Mr Steinbach further said, passengers would benefit from the new Lufthansa flights since the non stop connection from Pakistan to Germany would reduce travel time by up to three hours as compared to current connecting flights from gulf to Europe. He said this step of Lufthansa airline would be a great advantage for the business travellers.

Lufthansa also announced appointments for Pakistan and Mr Ian Patrick would be Lufthansa Country manger for Pakistan and Afghanistan. Mr Patrick has a long and varied airlines experience as he has experience of consulting for numerous fields of marketing, revenue enhancement and route feasibility. 

http://www.dailytimes.com.pk/default...2-7-2007_pg5_7


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## Neo

*Replacing B-747s bad idea for PIA: experts ​* 
KARACHI: The Pakistan International Airlines (PIA) is incurring huge financial losses on account of Boeing-777 being flown from Karachi with less than 16 per cent seat occupancy to the northern hubs of the country for onward dispatch to Europe and the United States. Also, the move to replace the tried and trusted B-747 aircraft with newer and more expensive aircraft is adding to the airlines financial burden.

For every positioning flight from Karachi to Lahore and Islamabad, the airline suffers an operating cost burden of Rs1.2 million, excluding the revenue that could have been generated, people close to the PIA affairs told The News. 

However, according to a PIA spokesman, the aircraft are rotated with a scheduled flight to and from the northern hubs, except where it is mandatory to bring it to Karachi where the airlines engineering base is headquartered for maintenance work. 

All positioning flights are operated as per printed regular scheduled flights where booking is done and passengers as per capacity of aircraft and availability are accepted, the spokesman told The News.

The PIA official said the operating cost of B-777 aircraft was being met in terms of recovery. He did not elaborate, however.

Well-placed sources said PIA had failed to meet its repayment schedule on installments of loans taken against the eight B-777 aircraft and had resorted to additional loans since the targeted revenues were never achieved. One of the factors that led to astronomical rise in total operating cost was the rise in maintenance expenses and the cost of serving on dead sectors which involved positioning flights to the northern hubs, they added.

Aviation experts say B-777 is a fuel-efficient aircraft, which if operated on dense capacity sectors and direct economical routes is bound to yield revenues and make operations profitable. They told The News It is an ideal long-range aircraft, but it is totally unsuitable for medium-range flights of less than 6- 7 hours.

The problems in strategy are causing heartburn within the airline. The trusted B-747 aircraft, which have been the mainstay of PIAs business, are being phased out despite the fact that they still have the capacity to earn for the corporation. 

PIA also has 12 A310s which are short to medium range aircraft with a capacity for 182 passengers and an underbelly cargo capacity of 8-9 tonnes. 

The airline has six Boeing 747-300 and two Boeing 747-240 Combi aircraft. The 747-300 has a passenger capacity of 429 seats and underbelly cargo capacity of 16 tonnes, as compared with Boeing 747-240 Combi having a passenger capacity of 260 seats and main deck plus underbelly cargo capacity of 48 tonnes. The total operating cost of Boeing 777ER is Rs589, 513/hour while that of 777LR is Rs608, 384/hour. This in terms of total operating cost for Boeing 777 per hour per passenger seat comes to Rs1, 950/hour and Rs1, 791/hour, respectively. 

Compared with this, the PIA fleet of 12 includes six owned by PIA and the other half leased through third parties. The total operating cost of the A310 is Rs414, 625/hour, which comes to a total operating cost per hour per passenger seat of Rs2, 253/hour. 

PIA has two Boeing 747 Combi aircraft. It has a capacity to carry 260 passengers and main deck cargo carrying capacity of 32 tonnes together with an underbelly extra cargo capacity of 16 tonnes apart from passenger baggage. 

The cost that works out for the Boeing 747-300 owned by PIA is Rs1, 923/hourper passenger seat. The total operating cost per hour of Boeing 747-300 is Rs833, 066/hour, while that of Boeing 747 Combi is Rs849, 711/hour. 

In spite of much higher fuel burn-off of B 747, the operating cost is comparable to more fuel efficient B-777 and A310s because the 747 is all paid for and the cost of servicing loans does not figure into it. Aviation experts say if an airline can manage it in terms of distance and financing, then B777 is the aircraft of choice.

However, given PIAs financial predicament, it does not make sense to phase out its trusted B-747s with more expensive aircraft on loans. In addition, in Haj and heavy traffic seasons, PIA still needs B747s which are then leased at high costs.

http://www.thenews.com.pk/daily_detail.asp?id=65613


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## Neo

*International airlines coming to Pakistan ​*
KARACHI: German carrier Lufthansa is resuming direct flights between Karachi and Frankfurt from October 28, 2007, citing firm growth in number of passengers traveling from Pakistan.

According to a communique, the airline will operate three weekly flights from Frankfurt to Karachi and for the first time to Lahore as well.

Lufthansa will connect Pakistan directly with Germany and with our global route network, said Lufthansas Dr Karl-Rudolf Rupprecht, Head of Hub Management Frankfurt. We expect a solid market growth in Pakistan and by that a further demand on this connection.

These non-stop flights will shorten the air journey between the two countries by up to four hours compared with present stopovers in the Gulf region.

The announcement comes at a time when Pakistans Civil Aviation Authority (CAA) is trying to turn the two largest cities of the country into transit hubs for Asia-Pacific passengers going to Europe and beyond.

According to a senior CAA official, while Pakistan is witnessing a good growth in air traveling, the Asia-Pacific region will contribute the highest number of passengers to global traffic in the next five years.

He said the authorities want to give incentives for stopovers here by seeking investment in diverse range of facilities including world-class hotels, shopping malls and other airport allied infrastructure. 

This will require giving point-to-point excess to airlines based in Western and Eastern hemispheres and CAA is in contact with a number of carriers in this regard, The News has learnt.

Englands British Airways will operate six flights to Pakistan from current three in its winter schedule and Singapore Airlines has also sought to double its three frequencies to Islamabad.

CAA is also in talks with Virgin Atlantic, China International and Midland Airways.

http://www.thenews.com.pk/daily_detail.asp?id=65706


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## Neo

*Three infrastructure projects worth Rs 126.95bn approved​*
* Establishment of 22 warehouses and 5,000 utility stores accorded approval

ISLAMABAD: The Central Development Working Party (CDWP) on Thursday accorded concept clearance for three mega infrastructure projects worth Rs 126.955 billion including National Trade Corridor Improvement Project, New Balakot City Development Project and Muzaffarabad City Development Project. The concept clearance of these projects would help the government to raise funds from donor community.

Dr Asad Ali Shah, Member Infrastructure Planning and Development Division briefed the media on decisions taken in the meeting upon conclusion of the CDWP meeting.

He said that concept clearance for National Trade Corridor Improvement Project has been accorded with a total outlay of Rs 94.134 billion and a foreign exchange component (FEC) of Rs 66.814 billion. Concept clearance for two other important projects have been accorded by the CDWP which include Muzaffarabad City Development Project worth Rs 20.820 billion with FEC of Rs 18 billion and New Balakot City Development Project worth 12 billion having a FEC of Rs 7.8 billion. 

He informed the media that the CDWP approved 11 projects worth Rs 2.69 billion and after initial approval recommended for approval 9 projects worth Rs 30.9 billion to the Executive Committee of the National Economic Council (ECNEC) headed by Prime Minister of Pakistan. 

The CDWP also accorded approval to establishment of 22 new warehouses or distribution centers and 5000 new Utility Stores in throughout the country at Union Council level by December 31, 2007. 

In this regard an amount of Rs 1.778 billion has been approved for this project. 

Dr Shah said that Rs 1.23 billion has been approved for the Earthquake Reconstruction Programme in District Swat, which was not included in the reconstruction plan and would help develop damaged infrastructure in Swat. CDWP also approved Rs 1.54 billion for the procurement of heavy machinery and equipment for the earthquake-affected areas of NWFP and AJ&K. 

He said that the CDWP approved procurement of 300 new design high speed bogie wagons for Pakistan Railways with an allocation of Rs 16 billion, and an allocation of Rs 955 million has been approved for pilot project for manufacturing of five 3000 HP diesel electric locomotives in the country. 

The CDWP accorded approval to PC-II worth Rs 59.535 million for technical assistance for Renewable Energy Policy Formulation and Capacity Development of Alternative Energy Development Board.

http://www.dailytimes.com.pk/default...7-7-2007_pg5_2


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## Neo

*Etihad Airways to fly 11 times from Karachi​*
KARACHI: Etihad Airways has increased their Karachi to Abu Dhabi service to11 weekly flights and the airline now offers daily flights with effect from August 1.

With this increase, flight EY 222 will operate four times a week- Wednesday, Thursday, Saturday and Sunday- while flight EY 228 will operate daily. 

Joost den Hartog, Etihad Airways Area Manager in Pakistan, said: The additional flight from Karachi is an indication of how important the Pakistan market has become for the Etihad network in the past three years. 

Etihad Airways now flies 11 times per week from Karachi, daily from Lahore, seven times a week from Islamabad, and two times per week from Peshawar to Abu Dhabi.

http://www.dailytimes.com.pk/default.asp?page=2007\08\03\story_3-8-2007_pg5_13


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## Neo

*CAA to spend Rs455m to update radars *​
KARACHI: The Civil Aviation Authority (CAA) has embarked upon a Rs455 million plan to upgrade the aging aircraft-navigational aid systems at its airports, The News learnt on Tuesday.

The investment will make the aircraft guiding equipment fully compatible with international standards and enhance the ability of airport managements to deal with higher traffic, according to a CAA official involved in preparation of the plan.

Radar systems were last updated in 1986 with the installation of French equipment. Now that company, Thales, no longer supplies the spare parts, he said, adding the system was for monitoring air traffic and communication with an aircraft pilot.

Air Traffic Management System and Voice Communication and Control System are part of the radar processes and would be upgraded in the first phase of the plan entitled Refurbishment of Radars and its Allied Equipment and Replacement of Air Traffic Control centres. 

The radars for the nine cities, including Karachi, Lahore and Islamabad, would be upgraded later, the CAA official said. However, he deplored that certain vested interests were putting hurdles in the way of a CAA delegation of experts who wanted to travel to China and evaluate a more economical version of the same equipment. 

It is always better to cut cost. China is supplying parts to leading technology firms, for aircraft and what not, he insisted. The refurbishment of radars will enhance safety and allow Reduced Vertical Separation Minimum that increases the number of aircraft to safely fly in a particular volume of space. 

CAA is awaiting the Central Development Working Partyís approval for this capital expenditure plan after which it will invite applications from international firms supplying the radar equipment. 

http://www.thenews.com.pk/daily_detail.asp?id=67370


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## Neo

*PIA to get 7 new Airbus A320-200​*
KARACHI: Pakistan International Airlines (PIA) has signed a Letter of Intent for the lease of seven new Airbus A320-200 aircraft from Aviation Lease and Finance Company (ALAFCO), Kuwait. Induction of these aircraft is part of PIAs drive to modernise its fleet with newer and more fuel-efficient airliners to provide its customers with state-of-the-art technology airplanes with in-flight comfort. The A320s will replace PIAs Boeing 737-300 f1eet, which has served the airline for more than 20 years. 

The deliveries of A320 are expected to commence in 2009 and completed in the same year. Chairman PIA said Friday that a comprehensive study was carried out, and based on technical and operational evaluation of the available options, Airbus A320-200 was selected as the most suitable choice for PIA. The new A320 aircraft will provide maximum operational flexibility on short and medium haul routes with lower operating costs, optimised cabin layouts and better baggage or cargo handling, he added. These aircraft with a seating capacity of 146 will operate mainly on domestic routes with limited operation on regional routes. 

With the induction of these seven new aircraft, the average age of PIA fleet will be reduced from current 13 years to around 10 years. PIA has recently acquired seven new ATR42-500 aircraft as replacement of its Fokker F-27 fleet. PIAs fleet also includes eight state of the art Boeing 777 aircraft which are being utilised on long haul routes. ALAFCO is a Kuwaiti company and provides Shariah-based aircraft leasing products with a portfolio of 33 owned and managed aircraft on lease to 16 airlines in 11 countries. They have recently placed orders for 59 new aircraft with Airbus and Boeing.

http://www.dailytimes.com.pk/default.asp?page=2007\08\11\story_11-8-2007_pg5_10


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## Neo

*Airblue to buy Airbus, Boeings *​
KARACHI (August 16 2007): Airblue will be purchasing Airbus and Boeing aircraft, and a deal in this regard would be finalised during the upcoming Dubai Air Show, scheduled to be held in October.

This was stated by Airblue Chief Operating Officer (COO) Shahid Khaqan Abbasi at the launching of co-branded credit card with ABN Amro at a local hotel Airblue on Wednesday. He said the banks would be contacted for the lease of aircraft once the negotiations now under way reached any conclusion.

About credit card, he said this new product would facilitate the travellers. "Airblue is proud to be associated with ABN Amro in this co-brand strategic alliance and look forward to working together to give our customers unique financial and travelling solutions," he added.

He hoped that Airblue would continue to thrive through providing better services to its travellers in future. Earlier, Country Executive of ABN Amro in Pakistan Naveed Khanin said:

"We intend to continue this commitment with the support of Airblue and further strengthen our relationship by providing the best services to our customers in the shape of an extraordinary credit card." The master card circulation would further go up, he said, and added that this card was launched after hard work and deliberation with Airblue.

http://www.brecorder.com/index.php?id=606044&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Hyderabad airport soon to be operational ​* 
HYDERABAD (August 15 2007): Hyderabad Zila Nazim Naveed Jamil said on Tuesday that the Hyderabad airport would soon become an operational airport of the country. He said that struggle continues for making Hyderabad airport operational. He stated this at a gathering of people organised by Hyderabad Chamber of Commerce and Industry. He said that the industrial development is the need of the time.

The Nazim said that the enthusiasm of industrialisation would control the unemployment. He said that there are three big barriers in the development of industry and trade--lack of airport, lack of large industrial area and lack of good infrastructure.

He said that as some members of the Chamber had pointed out in seminars, the district government has kept this as first priority. He said: "We are trying to solve the problems of the people according to our resources. When I met the Prime Minister and President I asked them to make Hyderabad airport operational."

He said that 300 acres land would be handed over to Sindh Industrial Trading Estate for widening the area of industrial zone. He added the plots would be allotted to genuine industrialists.

On this occasion, the President of Hyderabad Chamber of Commerce and Industry, Yousuf Sulaiman, said that air flights was the main demand of industrialists, businessmen, and other people. PIA will start service by flight ART-40 from Hyderabad. He said that it is believed that PIA would start both passengers and cargo services.

A former president of HCCI, Muhammad Yaqoob, said that the Smeda had announced to allot land for establishing Hyderabad Chamber of business development centre. He said one draft agreement has been prepared between Smeda and Taluka municipal administration of Latifabad that the project work would be started in near future. Vice President Muhammad Ammin said that PIA would no loss from the air service to Hyderabad.

On the occasion, DCO Hyderabad Afitab Ahmed Khateri, DIG Police Shouket Shah, DPO Investigation Khalid Mustafa Korai, SP Headquarters Zulifqar Ali and other officials, members of HCCI and people from other walk of life were also present.

http://www.brecorder.com/index.php?id=605776&currPageNo=3&query=&search=&term=&supDate=


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## Neo

*Turkish Airlines planning daily flights to Pakistani cities ​*
KARACHI (October 11 2007): Turkish Airlines is planning to start daily flights to Karachi, Lahore and Islamabad, said Country Manager of Turkish Airlines, Levend Arisoy in an interview here on Wednesday. These will be separate as well as non-stop on the Pakistan-Turkey route, he said adding that currently there were four flights a week between Istanbul and Karachi.

Arisoy said that the concerned officials of Turkey and Pakistan would meet later this year to renew the bilateral aviation agreement to increase the flight frequency between the two nations.

He maintained that the Turkish Airlines' offer was to have open sky policy for each country's national flag carrier- Turkish Airlines and the PIA. 2008, according to him, looks bright for the two airlines on the Pakistan-Turkey route.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Work in progress on design of Sialkot-Lahore Motorway ​* 
LAHORE (October 11 2007): Work is in progress on the detailed design of the 99km long Sialkot-Lahore Motorway, a mega project by the Punjab government, which will cost Rs 23 billion. NESPAK is providing engineering services for this motorway which will introduce a new era of development in the region and considerably increase trade activities in areas along the highway.

According to NESPAK sources, the project design will be completed early next year. After the design's approval, tenders will be invited for the construction of this Motorway. The motorway has been designed for a speed of 120 km per hour and involves the construction of 7 interchanges, 40 bridges, 70 underpasses and 8 flyovers.

The government will establish three Industrial Zones, each spread over an area of 3000 acres, along the motorway to boost industrialisation. A German and a Swedish university will also inaugurate their campuses in this area.

The residential sector will benefit from the development of housing colonies near the interchanges. The multidimensional benefits of the project ought to bring healthy social, economic, geographical and cultural changes according to the sources.

The Punjab government has undertaken this project due to the importance of Sialkot as an industrial city. It produces sports goods, surgical instruments, leather products, etc and therefore tremendous cargo traffic plies from Sialkot to Lahore for the marketing of the finished products in the country and their exports to world markets.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*NHA to start phase-III of project N-55 soon *​
ISLAMABAD (October 13 2007): The National Highway Authority (NHA) will soon start work on Phase-III of Indus Highway (N-55) rehabilitation and dualisation project with a $174 million Japanese soft loan.

" Tender inviting consultant has been advertised while tender inviting contractors to construct the Indus Highway Phase-III to build a two-lane carriageway between Sehwan and Ratodero would be floated soon," the NHA sources informed APP on Friday.

757km out of 1264km long Project N-55 has been completed in Phase-I & II while the remaining 465km section would be completed in Phase-III, the sources added. This project will strengthen the capacity of the Indus Highway an integral part of the National Trade Corridor.

The project N-55, as compared to the National Highway (N-5), shortens about 500-km distance between Karachi and Peshawar and its completion will certainly provide swift transportation services to and from Karachi. It would open up the West Bank of River Indus for wider economic activities will be instrumental in bringing socio-economic progress to the less developed areas, sources added.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Rs 4.5 billion Ali Bandar-Nagarparkar road to be built soon ​*
KARACHI (October 17 2007): Sindh Chief Minister Dr Arbab Ghulam Rahim has said that a 208-km road between Ali Bandar and Nagarparkar would soon be constructed with a cost of Rs 4.5 billion while the work on another 18-km-long road from Dangi to Ali Bandar was underway with estimated cost of Rs 580 million.

This he said while talking to people during an open kachechry and meetings with different delegations at his native village Khaitlari in Tharparkar district. MNA Arbab Zakullah, MPAs Arbab Abdullah, Abdur Razaq Rahimoon, Senator Abdul Gafar Qureshi, District Nazim Arbab Anwar, DIG Mirpurkhas Pir Mohammad Abbasi, district officials, elected representatives and people from different areas of Tharparkar district were also present on the occasion.

The chief minister said that these roads would benefit people of Tharparkar and Badin districts, adding the present government was serving people without any discrimination.

The chief minister listened to problems of people sympathetically and issued on the spot orders to resolve them. He said that the country had been put on the road to prosperity owing to the dynamic leadership of President General Pervez Musharraf. "We would achieve a massive victory in the next general election in view of our performance," he said.

Meanwhile, Sindh Chief Minister Dr Arbab Ghulam Rahim expressed sorrow and grief over the demise of former NWFP Chief Minister Arbab Jahangir Khan, and death of 19 people who drowned in sea near Gadani beach.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*'Islamabad airport be named after Liaquat Ali Khan' ​*
KARACHI (October 17 2007): The Quaid-Millat Liaquat Ali Khan Memorial Committee has reiterated its demand for naming Islamabad Airport after Liaquat Ali Khan, the first Prime Minister and the national hero of Pakistan who was assassinated in Rawalpindi in 1951.

In a resolution adopted on Tuesday at a meeting held to commemorate the 56th death anniversary of the first Prime Minister of Pakistan it said that the name of airport will be a living tribute to his unprecedented sacrifice to the cause of Pakistan.

Meeting further observed that there are numerous examples and traditions set by various countries all over the world where the airports were named after the names of national heroes who sacrificed their lives while holding constitutional office in their respective countries like late US President John F Kennedy. The NewYork Airport was named after him.

Speaking on the occasion, the General Secretary of the Committee, Mehfooz-un-Nabi Khan stressed the need of a broad-based national reconciliation at the time when Pakistan was passing through a critical moment of its history. Earlier, in the morning, the members of Quaid-e-Millat Liaquat Ali Khan Memorial Committee paid a visit to the grave of Liaquat Ali Khan and laid floral wreaths and offered Fateha as well.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*University Road: Sindh government to spend Rs 294 million on reconstruction ​* 
KARACH (October 18 2007): Sindh government will spend around Rs 294 million on rehabilitation and reconstruction of the University Road while the project would be completed in six months.

The development took place after the Pakistan International Airlines (PIA) refused to provide the much needed funds of Rs 312 million, which it had pledged under Tameer-e-Karachi Programme (TKP) on bridge-financing basis, sources in Works and Services Department of the City District Government Karachi (CDGK) told Business Recorder on Wednesday.

The PIA, after paying the first instalment of Rs 18 million, had refused to pay the remaining amount, which accounts for Rs 294 million, saying that the national flag-career was already facing a huge deficit, they added.

"Sindh government is now financing the project with the remaining amount of Rs 294 million investment", sources said. One track of the road has recently been opened for the public transport and the project would take at least six months to be completed.

It may be recalled that rehabilitation and reconstruction of the most-awaited project was initiated in August 2005 which has been a permanent source of inconvenience to public transport in general and students and teachers of the Islamia Collage and Dawood University of Engineering and Technology in particular.

To avoid traffic problems and inconvenience to the commuters the city government had devised a "sub-phases" based strategy to complete the belatedly started project, according to which the CDGK was to reconstruct the 1,500 metres road from the People's Chowrangi to Jail Chowrangi in the first sub-phase.

While the reconstruction work from Jail Chowrangi to New Town and New Town to Hassan Squire will be undertaken in the second and third phases respectively.

In the second phase, as per amendment, the road would be reconstructed from Hassan Squire to the Super Highway and for this purpose the funds would be provided by the federal government. The city government had set a 24-month target for completion of the project.

Business Recorder [Pakistan's First Financial Daily]


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## Moin91

*Unique railway track on verge of elimination*

Saturday, October 20, 2007
By Nasrullah Afridi

BARA: Historical Peshawar-Torkham railway track of the British era is facing elimination because of negligence on the part of the concerned authorities. 

Constructed at the cost of Rs210 million in 1920, the track has been washed away at a number of places by floodwater and the Khyber Safari Train Service being run by the Ministry of Tourism has been suspended for the last four months. The Archaeology and Tourism Departments seem least interested in resuming the service, which people believe would be a setback for the tourism industry of the country. 

The British government had planned to build the track in 1890 for military purpose but work on the project could not be initiated until 1920 due to border dispute with Afghanistan. The project was eventually completed in 1925. The main objective of laying the track was the quick mobilisation of the troops and ammunition to the border region. The laying of the 30-mile track from Peshawar Cantonment to Landi Khana passing through 34 tunnels was the great achievement of the British government. 

The track has found its place in the Guinness Book of World Records for being the only railway track that crosses runway of an airport (Peshawar International Airport). After creation of Pakistan, the track has been used for operation of Khyber Safari Train, which attracted a large number of national and international tourists.

The Pakistan Railways recruited many people to take care of the track but they receive their salaries while sitting at home. As a result of their negligence, the track was in a bad shape, especially from Landikotal to Landi Khana, even before the recent floods.

The track from Peshawar to Landikotal was functional but the flood on June 28 this year destroyed the track to such an extent that the officials halted the train operation, ended a chapter of tourism in Khyber Agency. A good piece of engineering is to be remembered as history because railways officials seem disinterested in its repair.

If the track is repaired, it could not only improve tourism but could also be of great help for trade between Pakistan and Central Asia through Afghanistan and could be the beginning of a new era in terms of economic benefits.


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## Neo

*Lufthansa starts Karachi and Lahore service on October 30 ​* 
KARACHI (October 25 2007): The Lufthansa German Airlines (LGA) has announced to start its flights towards Karachi and Lahore from October 2007, Business Recorder learnt on Wednesday. The Germany-based aviation network is bent upon strengthening the bilateral economic relations by connecting the commercial and industrial cities of Pakistan, Middle East and Germany.

The flight launching ceremony of Lufthansa's Services in Pakistan would be held on October 30 at Quaid-e-Azam International Airport, Karachi. The inaugural flight from Lufthansa would land at Karachi airport, and would then fly for Lahore carrying the officials concerned and representatives from media next Tuesday.

Business Recorder [Pakistan's First Financial Daily]


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## fatman17

i wonder if it will make any difference now. everyone is so used to catching flights from dubai these days, but it may trigger confidence in other european airlines to re-commence direct services to karachi/lahore/isld.


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## PakistaniPatriot

InshAllah it will. This is a good start.


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## Neo

*Inaugural of Islamabad-Peshawar Motorway today ​* 
ISLAMABAD (October 30 2007): With the delay of more than 10 years, Islamabad-Peshawar Motorway (M-I) will be opened for traffic on Tuesday (today). President Pervez Musharraf will grace the opening ceremony of the much-awaited project, Chairman National Highway Authority (NHA) Major General Imtiaz Ahmed told a news conference here on Monday.

Briefing the media persons, Imtiaz Ahmed said M-I project will be operationalised from Tuesday, however, it would be fully completed till June 2008.

The National Highway Authority (NHA) has remained under severe criticism over an inordinate delay in completion of the mega project that has resultantly inflated the cost of project. The project escaped many controversies including the termination of the contract awarded to a Turkish firm-Bayindir.

Responding to a question, NHA chairman said two sections; Islamabad-Burhan and Rashakai-Charsadda are already open for the traffic. Whereas, he continued, the remaining sections of 154-Kilometer M-I project would now also be opened. M-I consists of three major river bridges, 10 interchanges and the design speed is 120 km/hr.

Imtiaz was of the opinion that the mega project would not only play important role with regard to the development of the National Trade Corridor, but it would also help turning the proposed plan of Asian Highway network into a reality.

After lots of controversies, the Islamabad-Peshawar motorway project has now completed by a consortium of Pakistani contractors with the total cost of Rs 36 billion.

http://www.defence.pk/forums/newreply.php?do=newreply&noquote=1&p=110576


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## Neo

*Lufthansa resumes operation ​* 
LAHORE (October 30 2007): Lufthansa resumed its flight operations from Pakistan with LH658 flight landing at the Allama Iqbal International Airport here on Monday after its stopover at the Karachi Airport.

High-ranking officials and dignitaries of the country, including Senate Chairman Mohammad Mian Soomro, welcomed the Lufthansa delegation headed by Joachim Steinbach, Airlines Vice President Sales and Services South East Europe, Africa and Middle East and Pakistan and guests of the inaugural flight, a release issued here said.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*KPT flyover opened for traffic ​*
KARACHI (October 30 2007): Federal Minister for Ports and Shipping Babar Khan Ghauri on Monday opened the KPT flyover for traffic. The flyover has been constructed by Karachi Port Trust under President's backed 'Tameer-e-Karachi' program at a cost of Rs 73 million, a press release issued here said.

The Minister said that the flyover was yet another project which was completed by his ministry under the present government regime. Terming completion of the project as timely, he appreciated the efforts of KPT Chairman Vice Admiral Ahmad Hayat and his team and other concerned, said the press release.

The flyover was completed within the stipulated time. During a briefing, the project director said that total length of flyover is 360 metres and it has two lanes for moving in the same direction.

He said that the flyover would provide ease to the traffic moving on Moulvi Tameezuddin Khan Road from PIDC Bridge to Jinnah Bridge. The project director said that design life of the (flyover) bridge structure is 50 years, and the flyover has been built on the standards of American Association of State Highway Transportation Officials (AASHTO).

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*A-380 a distant dream for Pakistan ​* 
Tuesday, October 30, 2007

KARACHI: No international carrier has so far showed its willingness to bring the new generation jumbo Airbus 380 to Pakistan, Farooq Rehmatullah, director-general of the Civil Aviation Authority (CAA), told The News on Monday.

We have to engage the airline for that. So far, none of them has given any indications in this regard, he said, adding that was the reason it was premature to build the expensive airport infrastructure for the aircraft, which could carry 500-plus passengers.

Emirates, the Dubai-based carrier, had ordered A-380s but they would probably be operated on longer routes, he said. And the airlines operating between Europe, the US and Pakistan dont have that much load to carry. A-380 of Singapore Airlines made its first commercial flight from Singapore to Sydney on Oct 25.

A-380 a distant dream for Pakistan


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## solid snake

Who needs the A-380 anyway? We certainly don't. There's no need for it in Pakistan because aviation sector is still growing and our airports are not equipped to handle the plane. We should worry about it when there are so many flights coming in and out that our ATC's have trouble catching sleep.


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## Contrarian

The point is that the airports SHOULD be equipped to accomodate the plane! The airport infrastructure should be sufficient enough that the ATC crew gets rest, rotation, etc, etc. Thats the entire damn point!

There is currently only 1 airport in India that can handle the A-380, however almost all the new airports being built and renovated are being prepared for the A-380. India's airport infrastructure sucks BIG TIME...thankfully it is being tackled on a war footing now.Almost all the existing airports in the major cities are being completely revamped and expanded.


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## Neo

Apart from prestige there's not much A-380 can add to Pakistani airports. The long distance trunkliner is ideal for high density routes such as Sydney-Singapore, Delhi-Los Angeles, Tokyo-New York, London-Bangkok etc.

Pakistani airports haven't developped themselves as major regional hubs yet, designs like B743/4, B772/3 and A333/343 are much more effective serving Karachi and Lahore.


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## bhangra12345

Neo said:


> Apart from prestige there's not much A-380 can add to Pakistani airports. The long distance trunkliner is ideal for high density routes such as Sydney-Singapore, Delhi-Los Angeles, Tokyo-New York, London-Bangkok etc.
> 
> Pakistani airports haven't developped themselves as major regional hubs yet, designs like B743/4, B772/3 and A333/343 are much more effective serving Karachi and Lahore.



Do you build a runway every second day? You are in the airline business I believe, what do you think is the avg time between major upgrades of runway? I do not know, could you please indicate it, If it is more than say 10 years, then the infrastructure should be built for all runways being built now, otherwise if less than 5 years, then it is no brainer that Pakistan does nt need to invest in them right now.


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## Neo

*BA doubles flights ​* 
Thursday, November 01, 2007

ISLAMABAD: British Airways is spreading its wings to Pakistan by doubling its flight schedule between Islamabad and London to six flights a week, to cater to the increased passenger demand between the two countries.

Addressing a press conference here, BA Commercial Manager for Pakistan Paul Dhami said the six flights a week would commence with the airlines winter schedule, and was the result of a growing demand from both business and leisure travellers for flights between Pakistan and Britain.

The new schedule would be operated using Boeing 777s, scaling up overall capacity by 52 per cent compared to the present schedule, with premium capacity increasing by 44 per cent. As a result of the additional flights, the airline hoped that its world cargo capacity from Islamabad will increase by 100 per cent and these new rotations come on the back of new Pakistan freighter routings that were introduced earlier this year. He further said that the flights would offer alternating flights times on different days at 0818AM and 1230PM for even greater choice.

BA doubles flights


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## Neo

*Lufthansa willing to operate cargo flights from Sialkot ​* 

SIALKOT (November 01 2007): German Ambassador to Pakistan Dr Gunter Mulack has said that German Airline Lufthansa is ready to operate three cargo flights weekly from Sialkot to facilitate the business community.

Addressing the members of Sialkot Chamber of Commerce and Industry (SCCI) here on Tuesday night, he stressed upon the business community of this export-oriented city and hub of cottage industry to concentrate on producing quality products for competing with the global market more easily.

The quality production had become more imperative because the buyers were become more quality conscious and under the present global scenario global market could only be competed with quality and standard products, he said. The German ambassador assured the house that Germany would extend all possible support and assistance for upgrading the industrial sector of Pakistan.

Dr Gunter revealed that Germany was also ready to provide services of its senior citizens (Expertise) to business community of Sialkot enabling them to upgrade their workplaces, quality and production in the field of surgical instruments and sports goods etc.

He added that their expanses would be borne by the government while the business community would ensure accommodation facilities. He said that German Engineering University Lahore would be completed in two year, which would provide modern education facilities to the masses as well as help the industrial sector.

In his address of welcome, SCCI President Sheikh Abdul Waheed Sandal said that Pakistan and Germany had a tradition of good and amicable relations and it was encouraging that foreign ministers of both the countries were holding regular bilateral policy consultations that helped in further improving the relations.

The SCCI president suggested that exchange of trade delegation and one-to-one meeting of businessmen of both the sides for which the two countries must ensure simple visa process enabling the businessmen get visas easily and meet each other as and when required.

Later, the German ambassador visited Iqbal Manzil (the birthplace of Allama Iqbal) to pay homage to great philosopher, poet and thinker. He went round of different areas of Iqbal Manzil. The German ambassador on Wednesday morning also visited a renewed soccer ball industry and appreciated the skill and craftsmanship of the workers.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Thai Airways launches new winter direct service ​* 
KARACHI (November 01 2007): Thai Airways announced the imminent launch of its new winter 2007 direct service between Karachi, Lahore, Islamabad and Bangkok. The airline's country general manger, Kittiphong, made this announcement at a press conference held at a local hotel on Wednesday.

The new schedule will give more convenience and flexibility of travel to passenger in both business and leisure segment in Pakistan, which will be smoother than ever before.

Speaking at the conference, Kittiphong said, "Being the only airline from the South East Asia that operates covering the three major cities in Pakistan, we are trying our level best to provide more convenience, more flexibility and better services to our passengers in all possible aspects by applying the localisation into our services. Thai on its all network serves with Halal foods on board."

Starting October 29, Thai will operate four direct flights a week from Karachi to Bangkok on Monday, Wednesday, Friday and Saturday; by departing Karachi as TG502 at 11.55 pm to arriving Bangkok at 06.30 am next day. The return flight, TG501 that also operates on Monday, Wednesday, Friday and Saturday; is leaving Bangkok at 07.10 pm and will be arriving Karachi at 10.45 pm same day. There will be no more service from Karachi to Muscat vice versa as from winter schedule.

"We consider Pakistan a very important market. We have been serving the Pakistani nation for more than 30 years since 1976. We believe that our new improved winter 2007 schedule will benefit to all passengers and we will continue doing our utmost to ensure the passengers in Pakistan can enjoy our renowned Royal Orchid Services as smooth as silk," said Kittiphong.

The major change in Karachi operations are day of operation and earlier timing that will give passenger more convenience as Thai used to leave Karachi very early in the morning. The new schedule for Karachi flights will improve flight connections at Bangkok so that passenger can enjoy the immediate connection from Bangkok to many destinations in Asia and Australia especially Japan, China, Korea, Malaysia, Hong Kong and Indo-China four times a week.

Lahore operations are also increased by adding two more frequencies on Monday and Wednesday to accommodate the growing demand of the northern business hub city. Islamabad operations, however, will add one additional flight on Saturday to the existing three flights weekly on Monday, Wednesday and Friday at Islamabad starting from February 2008 onward that will be total of four times a week in 2008 from Islamabad to Bangkok.

Thai Airways International Public Company limited is the national carrier of Thailand. Found in 1960, serving 74 destinations (including domestic destinations) in 35 countries around the world. Thai has over 25,000 employees and a total of 90 aircraft in its fleet. The airline is continuing to strengthen its services through outstanding level of travel comfort. Thai Airways is among the first airlines to have certified Halal foods on board and recently received 2007 world best first class lounge award from Skytrax. Thai is one of the founding members of Star Alliance, the airline network for earth.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Rs7.6bn rail project to link Quetta with Peshawar​*
ISLAMABAD, Nov 1: The government will lay a broad-gauge railway track at an approximate cost of Rs7.6 billion to link Balochistan with the North-West Frontier Province.

Sources told Dawn on Thursday that the project would reduce the travel distance between Quetta and Peshawar by more than 400 kilometres.

The two-phase project, it may be mentioned, was approved by the PML-led coalition government in 2005 and at one stage it appeared to have been shelved. The project will link Quetta with Peshawar via Bostan, Zhob, Dera Ismail Khan, Bannu and Kohat.

On completion, the project will provide shortest rail route from Gwadar to Peshawar for the Afghan traffic and to Havelian for onward connection with China via the Khunjerab Pass.

It will help in realising the dream of turning Pakistan into an economic hub and centre of trade and business, claims the ministry of railways.

In the first phase, track will be laid from Bostan to Qila Saifullah (152.5km) and in the second phase from Qila Saifullah to Zhob (142.5km).

The narrow gauge track on the 295km Bostan-Zhob section was laid in 1939. It was a low-speed track, with sharp curves and steep gradients.

The Planning Commission was informed that train operation on the sector had become inefficient, uneconomical and very slow. Operation on the route had been completely stopped in 1991 because of huge financial losses.

The project was first announced during President Gen Pervez Musharrafs visit to Balochistan in April 2005.

Rs7.6bn rail project to link Quetta with Peshawar -DAWN - Top Stories; November 02, 2007


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## Neo

*PIA should be privatised, says Zafar A Khan​*
* Management is exploring other plans to save PIA from losses

KARACHI: Chairman and Managing Director of Pakistan International Airlines (PIA) Zafar A Khan has said that the government should privatise the national flag carrier.

Addressing a press conference after the announcement of financial results for third quarter on Thursday, the PIA chief said the government has decided to privatise many public sector organisations including PIA but, I have very limited knowledge regarding government policy and PIA privatisation.

Though he was of the view that such commercial organisations should be privatised. 

Results for the third quarter ending in September revealed that the financial health of national flag carrier is moving from bad to worse as its losses aggravated by more at Rs 3.2 billion during the period, making the accumulated financial losses of the whole year up to Rs 10.9 billion. Hence, the overall financial losses of PIA have enhanced to Rs 35.5 billion in the current year against Rs 24.6 billion lost a year ago.

I am disappointed with the results because they are below our expectations. We were thinking that we would cope up with PIAs growing financial losses, but we failed to do so. Now we are exploring new game plans and strategies to save the airline, Chairman PIA affirmed. He said that PIA has suffered big financial losses due to decrease in service sales, rising oil prices and investment in infrastructure. PIA has lost its passengers on the United Kingdom route and it could not provide services to maximum Umra pilgrims so far this year, Mr Khan said. Responding to a query, he said that the PIA management was deliberating to hedge Jet fuel in the past but it could not take any step in this direction and was waiting to see crude oil prices less at less than $70 per barrel in the international market.

He explained that the oil prices was uncertain in the global market and if we hedge at this moment when oil prices have mounted to $90 per barrel then it could aggravate losses of the national flag carrier. Currently, he informed, advisors are not supporting the idea of oil hedging. He detailed that Saudi Arabia has changed its Umra Policy for the current year and issued less number of Umra visa for Pakistani pligrims and it also changed its definition of mehram that resulted in widening the deficit of the state-owned airline.

But, Mr Khan said that he and the PIA management is satisfied what they invested on the improvement of infrastructure and services on the airline and up-gradation of the brand in the world.

He said flight punctuality and services have improved by a great extend as PIA has registered best punctuality performance in September. He added that PIA introduced Revenue Management System to improve our customer and sales service.

Now, he added, our priority is to facilitate 130, 000 Hajj pilgrims in the next few months and we have invested big amount on infrastructure particularly for this sole purpose. 

All efforts have been made to provide better services to Hajj pilgrims by the management of PIA, he added.

He said that PIA will purchase seven Airbus A-320 aircraft worth $50 million each by 2009, which are highly fuel effective and will save the airline from huge expenses of maintaining and repairing.

Daily Times - Leading News Resource of Pakistan


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## Neo

*'New transport policy to be implemented next year' ​* 
FAISALABAD (November 02 2007): Pakistan Government is preparing National Transport Policy (NTP), which will be implemented next year 2008 with the co-operation of Asian Development Bank. According to official sources, the Ministry of Communications (MoC) is working with National Highway Authority (NHA) and ADB on this objective and final draft of Policy has already been produced and circulated to relevant agencies for review.

NHA sources mentioned that Pakistan Government's 10-year road development programme was estimated at 2.3 billion dollar. The first phase costing almost 1 billion dollar, of which ADB is financing 770 million dollar. The first phase is being financed by ADB under an MFF modality, with multiple loans extended for the purpose of sub-projects included in the three batches. ADB is also providing an Asian Development Fund loan of 3 million dollar to support capacity and institutional strengthening work.

Meanwhile, NHA agreed to complete a business plan for 2007-2011. The plan will provide a vision for network development, performance, and financing. According to official sources, the Highway Development Sector Investment Programme supported by the Asian Development Bank (ADB) under a multi-tranche financing facility

(MFF) approved in 2005 is designed to rehabilitate existing road assets, create new ones, advance policy reform, and define other enabling environment conditions for the running of an efficient and sustainable national highway network for Pakistan. The programme will improve connectivity, promote trade and implement the policy changes included in the Road Sector Development Framework developed by the National Highway Authority (NHA), the Programme's Executing Agency (EA).

The Programme comprises both improvements of national highway assets (existing and new ones) and institutional strengthening. It aims to achieve two specific objectives. The first is to improve transport efficiency by (i) executing a national transport policy, (ii) strengthening NHA performance in managing the national highway network, (iii) improving road safety, and (iv) improving road maintenance management and funding. The second aim is to

enhance private sector participation in the road sector by (i) outsourcing road works, and (ii) private operation of NHA assets and activities. Pakistan government had prepared a 10-year road development programme, which will be implemented in three batches. The programme has two main components. (i) National highway improvement. This covers road construction to improve national highways serving inter-provincial traffic and regional connectivity between Pakistan and its neighbouring countries. (ii) Institutional strengthening of NHA. This includes advisory assistance for NHA to refine the highway sector policy; facilitate public-private partnerships (PPPs); and build institutional capacity in business planning, road safety, and road maintenance.

According to update project report, civil works for batch-1 projects are being financed by a loan amounting to 180 million dollar from ADB's ordinary capital resources. This loan was approved on December 13, 2005 and became effective on July 27, 2006.

Procurement of the civil works contracts is well under way. Bidding for four civil works Packages, had been carried out, with two contracts awarded in December 2006 and one in January 2007. The bid for the fourth package is still being evaluated. Two teams of supervision consultants were mobilised in November 2006. NHA is recruiting individual consultants to assist the general manager responsible for ADB-funded projects with the strengthening of project management skills and capacity.

Giving details, NHA sources revealed that Hub-Uthal (N25) project upgrades 85 kilometers of an existing road to a 7.3km carriageway. The actual physical progress of 6 percent is behind the planned target of 18 percent primarily due to delays in the start-up following a change in the road design. It is expected that work will catch up fast in months to come.

Official sources pointed out that NHA proposed a change in the road design after the contract was awarded, from improvement of the existing road to construction of a new carriageway parallel to the existing road. The proposed design change will maintain the alignment along the existing road and will be within the existing right-of-way owned by the government. The original project objective is thus maintained. There are no additional safeguard impacts, while the scope of civil works remains the same but with a cost increase of about 15 percent of the existing contract, said ADB report.

Multan-Muzaffargarh (N70) project involves (i) widening of 19 km of an existing road from a two - to a four-lane road, and (ii) construction of 16 km of a four-lane bypass road in Muzaffargarh city. The actual physical progress of 8 percent is behind the planned target of 11 percent primarily due to resettlement issues.

A resettlement complaint was filed with ADB's Office of the Special Project Facilitator (OSPF) by a group of people affected by the Multan-Muzaffargarh project. ADB examined the complaint and stopped all project activities while looking at the issue. While no land acquisition has begun in the bypass section, a key concern has been to ensure that NHA followed due process in relation to consultations, and ultimately to resettlement and compensation.

NHA has addressed the concerns raised by people in the bypass area by making changes to the corridor, and is presently implementing a time-bound action plan agreed with ADB. NHA is focusing on improved communication and information dissemination and is presently in the final stages of updating the resettlement plan. In conjunction with these activities, a facilitation process led by OSPF is going on. NHA has learned from this process and is now setting up a safeguards team within the institution. A national resettlement policy review is also to be launched by the Planning Commission (with ADB help).

Muslim Bagh-Qila Saifullah (N50) project will upgrade 50 km of the existing road to a 7.3km carriageway. The project has been progressing well, with the actual physical progress of 5 percent against a planned target of 8 percent. There are no specific issues on this project. Work is expected to accelerate in the months to come.

Qila Saifullah-Zhob (N50) project will upgrade the existing road to a 7.3m carriageway. The bids were opened on October 19, 2006. The bid evaluation is still ongoing. NHA is considering the single responsive bid received for negotiation. There is also a strong possibility of rebidding to comply with ADB policies and procedures.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*President to inaugurate Sialkot airport on Tuesday ​*
SIALKOT (November 04 2007): The decades old dream of local business community of having an international airport at Sialkot would become true on November 6, 2007 when the cargo flights and regular domestic flights across the country from this International Airport will commence.

Chief Executive of Sialkot International Airport Limited (SIAL) Khawar Anwar Khawaja stated this while talking to the newsmen here on Saturday. He said that the President General Pervez Musharraf will formally inaugurate Sialkot International Airport on November 6 during a ceremony scheduled to be held at the airport site near Sambrial-Sialkot, amid airtight security arrangements.

He said that the personnel of the Airport Security Force (ASF) have taken their charge at airport for commencing the regular cargo and domestic passenger flights from it on November 6.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*PIA to lease seven new planes from Kuwait company: LoI ready for government approval​*
ISLAMABAD (November 07 2007): Pakistan International Airlines (PIA) has finalised a Letter of Intent for leasing seven new A-320-200 Airbus aircraft from a Kuwait-based leasing company.

PIA spokesman told reporters here on Tuesday that the national flag carrier has finalised the agreement for leasing seven new A-320-200 Airbus from 'Aviation Lease and Finance Company' (Alafco), of Kuwait, to modernise its fleet by replacing Boeing 737-300. The delivery of new Airbus planes would be completed in 2009.

He said the PIA management has submitted a financial restructuring plan, based on multiple financial instruments, to the government to boost financial health of the airline.

PIA has entered into cost cutting measures, route rationalisation, cut in administrative expenditure to offset the ongoing financial crisis which now stands at Rs 34 billion, he added. About the recent strike by PIA aircraft engineers, he said the airline would have to bear an amount of more than Rs 800 million per annum if the demands of the aircraft engineers were accepted.

The spokesman said that salaries of PIA aircraft engineers were revised by 35 percent last year, followed by a 10 percent merit increase in salaries during last January. Therefore, he added, further revision of the salary package would be considered once the PIA moves on to better financial health.

He said that PIA authorities were calculating the loss which the national flag carrier suffered last week due to the strike. "We are still calculating the loss, but it would be in millions (of rupees), he added. About the financial crisis of PIA, he said that unprecedented increase in fuel prices in the international market was one of the basic reasons of PIA's cumulative losses.

He said the authorities have planned to reduce the overall fleet age from 21 years to 10 years in the next five years. The size of PIA fleet is currently 42 aircraft. The spokesman said that there were no more questions of safety of PIA planes, as the European Union has lifted its operating restrictions.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Rs 14 billion allocated for roads widening, construction ​* 
SIALKOT (November 07 2007): Punjab government has set aside more than Rs 14 billion during current fiscal period for the construction of news roads and widening of existing roads in the province. Official sources told Business Recorder here on Tuesday that under the programme 600 km long news roads would be constructed while existing 700 km roads would be widened in various parts of the Punjab.

Under the programme about 10 feet roads would be widened to 20 feet while 12 feet roads would be widened to 24 feet. The step was being taken for further improving the means of communication system and to ensure safe and hassle-free travelling facility to the masses in the Punjab, sources added.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*New Islamabad airport to enable A-380 to land comfortably ​*
KARACHI (November 10 2007): The first phase of ground levelling of the Rs 24 billion new International Islamabad Airport (NIIA) will be completed before the dawn of the new year, according to Civil Aviation Authority (CAA) sources. The second phase will encompass construction of passenger terminal building, and the airport would be operational by 2010.

The new runways and allied facilities would enable world's largest aircraft, like A-380, to wing their way with ease and comfort, they added. NIIA would be Pakistan's first green field airport, fully equipped with state-of-the-art facilities to provide maximum passenger comfort and convenience, with sufficient space to cater to the high ratio of visitors that accompany passengers.

Technical facilities, terminal building, aprons, taxiways, etc, have been planned in a way to match such facilities available anywhere in the world to meet the increased air traffic.

The NIIA project has been designed according to global benchmarks and would be a step forward towards making Pakistan a major regional hub for trade, tourism and communication. "The completion of this airport will herald a new era of modern aviation facilities in Pakistan, " says CAA Director General Farooq Rahmatullah.

Initially, the project would support a capacity of 6.5 million people, which may be increased in the future to cope with additional needs. Unlike any other airport in the country, NIIA would be equipped to handle landing of all types of aircraft, including A-380, the runway capacity for which exceeds all airports of Pakistan. A runway sized 12,000 feet length has, therefore, been especially planned to take aircraft of this types.

Located about 30 km south-west of Islamabad, NIIA sprawls across an area of 3200 acres. Approximately, 2,000 acres area has been earmarked for aviation-related activities, including a passenger terminal building (capable of handling 6.5 million passengers annually), control tower, single runway (with provision of a secondary runway), taxiways, apron and parking bays for wide body aircraft, cargo complex (capable of handling 100,000 tons annually). A large area has also been earmarked for commercial development, which would include a four-star hotel, duty-free shopping plaza, business centre, food courts and an international convention centre.

NIIA would be a blessing for the locals as it would bring them new employment opportunities, and preference will be given to them. World-renowned international design consultants ADPI and Louis Berger Groups who have been involved in the project. They are currently engaged in developing the airport design for NIIA. CAA has already approved the conceptual and preliminary designs.

The unique design would ensure a technologically advanced interpretation of the rich cultural heritage, including the cradle of the Ghandhara civilisation as well as the long Islamic history.

The CAA also plans to construct an airport city alongside NIIA, which would comprise hotels, restaurants, business centres and other facilities catering to consumer need. The airport city would not only facilitate people, but would also serve as a great non-aeronautical revenue generator for CAA.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Air Blue places $700 million orders for 14 A320-200s ​*
KARACHI (November 12 2007): Pakistan's fastest growing private sector carrier, Air Blue, has placed orders worth $700 million for purchase of 14 new A320-200 aircraft. This is the second largest order for outright purchase of brand new aircraft after national carrier PIA's $1.2 billion order placed in 2005 for purchase of eight Boeing aircraft--three 777-ER-200, three 777-ER-300 and two 777-LR-200.

There is, however, a marked difference in the purchase of aircraft by Air Blue and PIA, as the government had to provide sovereign guarantee to the Eximp Bank for the purchase of aircraft by PIA, and the private sector carrier Air Blue provided only Company's guarantee.

Shahid Khaqan Abbasi, Air Blue Chief Executive Officer, told Business Recorder here on Saturday that a formal agreement for the purchase of 14 new A-320-200 would be signed between Airbus Industrie and Air Blue in Dubai on November 13 during the five-day air show, which started on November 11. The Airbus Chairman Industrie would sign the agreement on behalf of the aircraft manufacturer and Shahid Khaqan Abbasi would sign on behalf of Air Blue .

Abbasi left for Dubai late on Saturday afternoon to attend the air show and to sign the agreement.

He said that the first A320-200 aircraft would be delivered in July, 2009, and thereafter one aircraft would be delivered after every three months thus completing the delivery of 14 aircraft by the end of 2012. Following induction of the new aircraft, the Air Blue fleet at present comprising three A-320s and three A-321s, which are on lease, would be returned to the lessor companies.

About the financial health of Air Blue, Abbasi said that from the word 'go', three years back "we have not, for once looked back". Despite the fact that Pakistani carriers, to cover up their failures, have been crying hoarse about the galloping increase in fuel prices, Air Blue, he said, had posted profits year after year in the face of high fuel costs and other expansion expenses.

The annual accounts, which are now being audited, would be announced by the end of next month, Abbasi said, adding that the airline would end up with a profit of around Rs 150 million and a 20 percent return on equity.

He said that Islamabad to Manchester Air Blue flights have proved a roaring success. The seat occupancy, both ways, has been hundred percent, although high season has not yet started, he added.

Similarly, he said, Dubai flights were also doing good business. About future expansion plans, he said that once the new aircraft are inducted into the airline, "we would expand towards West as well as East ie, Europe, Middle East, India, Bangladesh, Malaysia and Thailand would be our future destinations."

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Rs 500 billion to be spent on road projects ​*
ISLAMABAD (November 12 2007): Over 500 billion rupees will be spent on 129 mega road projects including motorways, expressways and highways under the National Trade Corridor Programme.

The National Highway Authority (NHA) sources told that work on 63 projects costing over 150 billion rupees was in progress, while another 16 projects of over 60 billion rupees are in the final phase of completion, Radio Pakistan reported. Work on Faisalabad-Khanewal section of Motorway will be started soon. The project will be completed within four years at a cost of about 17 billion rupees.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Pakistan, Turkey, Iran ties: Prime Minister underlines progress in transport links ​*
ISLAMABAD (November 11 2007): Prime Minister Shaukat Aziz stressed need for progress in establishing transport links between Pakistan, Turkey, Iran through land, air, sea to boost trade and economic activities as these are major drivers for building dependable relations.

He said this while talking to ambassadors of Turkey Engine Soysal and Iran, Mashaalah Shakeri on Saturday in Islamabad. He said Pakistan's relations with Turkey and Iran are based on shared faith, culture, history, geography including people to people contact, which combines to add depth to trilateral ties.

The challenges confronting the region today demand greater unity and solidarity among three countries. Prime Minister emphasised need for early signing of Free Trade Agreement (FTA) to leverage considerable potential of boosting trade, investment opportunities between Pakistan, Iran and Turkey.

He felt existing trade volume between three countries is way below its actual potential, which needs to be increased further through signing of FTA. Ambassadors thanked Prime Minister for his efforts to further promote economic, trade ties and hoped these would further strengthen in future.

Business Recorder [Pakistan's First Financial Daily]


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## Spring Onion

*ECNEC approves 16 projects worth Rs98 billion*



ISLAMABAD: The Executive Committee of the National Economic Council (ECNEC) has approved 16 projects worth about 98 billion rupees covering infrastructure, education, health, energy, environment and other sectors.



Prime Minister Shaukat Aziz who chaired the meeting here on Monday lauded performance of ECNEC during last eight years and said it greatly helped in creating a lot of economic activity, generating millions of jobs.



He noted that in the last eight years the ECNEC held 27 meeting and approved 649 projects worth 2.4 trillion rupees, which is a record in the history of the country. The projects covered all sectors of national activity including 403 projects in infrastructure and 207 in social sectors.



*Later, briefing newsmen, Deputy Chairman Planning Commission Dr. Akram Sheikh said the projects approved today included KKH Up-gradation at a cost of about 31 billion rupees. The Chinese funded project envisages upgradation of 335 kilometers of high from Raikot to Khunjerab.*


Another important project is doubling of track from Khanewal to Raiwind, Sahiwal, Okara and Kasur district of Punjab at a cost of 8.3 billion rupees.



West Bank Bypass Construction Project in Muzaffarabad city would cost 1.736 billion rupees, he said.



*Other important projects cleared by the ECNEC included Development of Forestry Sector Resources for the four provinces at a cost of about 11.5 billion rupees; Strengthening of UET Lahore at a cost of about 6 billion rupees; Ph.D. Fellowship for five thousand scholars at a cost of 6.4 billion rupees; infrastructure development of COMSATS Institute of Information Technology Islamabad at 2.9 billion rupees and strengthening of NED university Karachi at 2.2 billion rupees.* 

Dr. Akram Sheikh said the emphasis of the Government is on technical training, higher education, national trade corridor and development of energy resources.

He said a core group chaired by Dr. Attaur Rehman has been assigned the task of identifying emerging and new technologies and disciplines to keep pace with the modern day requirements.



He said as part of the national trade corridor project, a deep container terminal is being established at Karachi at one billion dollars besides huge investment in Port Qasim and Gwadar.

He said as a result of economic activities about half a million jobs are being created annually in the country.


*Report by Jana *


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## Neo

*PAKISTAN'S DEEP SEA CONTAINER TERMINAL TO MAKE KARACHI VITAL HUB​*
Tuesday November 13, 2007, 4:18 pm

ISLAMABAD, Nov 13 Asia Pulse - Pakistani president General Pervez Musharraf says construction of US$1 billion Deep Sea Container Terminal at Karachi would turn Pakistan into a major transhipment hub for regional states, further bolstering the country's trade and commerce.

Speaking after the signing ceremony between Karachi Port Trust (KPT) and Hong Kong-based Hutchison Port Holdings (HPH), at Aiwan-e-Sadr, he said the government has also decided to set up facilities for ship building and repair at Gwadar deep seaport.

The terminal assures minimum royalty payment of US$1.1 billion to KPT over 25 years concession period. Of ten draft berths at 18 meters depth four will be completed by the year 2010. Under public-private partnership Build, Operate, Transfer concession will be for an initial period of 25 years. HPH will be required to develop the site into a full-fledged modern container terminal with capacity of 3.1 M TEUs.

President Musharraf said Pakistan would be one of few countries in the region to provide shipbuilding and repair facilities. The terminal will be able to accommodate some of the largest ships operating. Pakistan serves as hub for trade between Central Asian Republics, Western China, the Middle East, Africa and Europe. "Our strategic location will be used for trade, commerce, which will be beneficial for the country and entire region. We will be on the world map of ship building, repair and deep sea container handling in three to four years time," the President said.

The terminal will be comprised of US$457 million of Foreign Direct Investment and the remaining US$550 million will be provided by KPT to develop infrastructure for Phase-I. The Chairman of KPT Vice Admiral Ahmad Hayat noted that the total expected income stands at US$3.5 billion in same period. He said the first vessel is expected to sail into new terminal by 2010. It will also have a road, rail link with rest of country, including a proposed cargo village. He said Karachi port would be able to handle the longest and deepest vessels that may wish to access the port. In Phase I, the terminal will be able to handle Super Post Panamax Container Ships.

HPH is one of the world's largest container terminal operators and handled 59.1 M TEUs worldwide, of which 13.1 M TEUs were transhipment. It operates 257 berths in 45 ports in 23 countries.

Finance, Business and Company News - Yahoo!7


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## Neo

*PIA to start international flights from Sialkot next year ​*
SIALKOT (November 16 2007): Pakistan International Airline (PIA) would start its regular passenger flights between Karachi-Sialkot-Karachi from Sialkot International Airport from November 30 whereas international flights would be begun during 2008 from Sialkot.

Sialkot airport sources told Business Recorder here on Thursday that necessary arrangements have already been completed for the first passenger flight. The Sialkot International Airport has been completed at a cost of Rs 3 billion has a great significance because it was totally financed by the private sector and so far private sector had not built a project of this magnitude and size in the country even in South Asia whereas new Islamabad Airport is being developed at an estimated cost of Rs 20 billion by the government.

This modern and professionally designed airport had been undertaken on Build, Own and Operate basis and has been developed over 1004 acres and fully equipped for handling B 747-400,A300 and 737 aircraft. The potential traffic forecast for Sialkot international Airport is scaled down at the time of opening 530339 passengers a year while estimated cargo tonnage at the time of opening is expected to be 28515 tons. This means that by the end of year 2012 about 53,000 tons of cargo will be lifted from Sialkot airport.

Most modern apron having the parking capacity for six wide-bodies aircraft or three airbus plus F-27 aircraft had been constructed at the airport. Besides, 3600 meter long, 45 meter wide taxiway had been constructed while longest international stand runway of the country measuring 3.6-KM has been constructed which will cater the requirement of all aircraft used for international and domestic cargo and passenger traffic, sources added.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Construction of 100,000-km roads network planned ​*
KARACHI (November 17 2007): Owing to the mushroom increase in vehicular traffic during the last five years, the federal government is planning to construct 100,000-kilometre roads network to overcome traffic and road communication related problems.

Road density is an important factor for economic growth of a country but, unfortunately, it is very low in Pakistan, which is 0.32 kilometre per square kilometre, sources told Business Recorder here on Friday.

"Balochistan is required more roads than Punjab, however, it has only 0.12 per km road density", they added. The introduction of car financing/leasing schemes with government facilitation by financing institutions has contributed a lot to the rapid increase of vehicular traffic.

Despite the sharp increase in vehicles no effective policy has been evolved yet to cater the increasing demands of roads network of the growing population, they said. In wake of this situation, the department has sent a proposal to Islamabad regarding to work out an effective road-transportation mechanism. The proposals are being mulled seriously and hopefully would be approved, they added.

According to a joint survey conducted by National Highways Authority (NHA) and World Bank, 47 percent of highways network were in deteriorated condition and only 28 percent of the network were in good shape.

They advocated of involving the private sector in construction of new highways and evolving a comprehensive road transpiration mechanism for bringing improvement in the situation. They attributed the deterioration of road network in the country to rapid increase in traffic volumes besides insufficient funding to maintain highways and embezzlement of the funds by concerned officials.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Work on Rs 11 billion Peshawar-Torkham highway to start in January ​*
ISLAMABAD (November 19 2007): Construction work on 51 kilometres Peshawar-Torkham Expressway costing Rs 11 billion would start in January 2008 and it would be completed within three years, sources in National Highway Authority (NHA) informed APP on Sunday.

The work on the Expressway will start from Surkamar near Bagyari and winding through Shagai Fort, Ali Masjid, Char Bagh and Landi Khana will end at the Torkham Post on Pakistan-Afghanistan border.

"The expressway is a proof of commitment that the government is showing towards improving the communication system in the remote mountainous areas. It would not only benefit the commuters, frequently using the road but also ensure more job opportunities, development and improvement in the lifestyle of the tribesmen", the sources added.

Peshawar-Torkham Express-way, they added would convert the single lane dilapidated road into a dual carriageway. The project would be completed in two phases. The estimated cost of the 17-kilometre section-II is Rs 5.4 billion while 34 kilometers long section-I will cost Rs 5.64 billion. The PC-I of the project has been approved by the ECNEC while the design has also been prepared.

Besides a tunnel at Char Bagh, a number of flyovers and underpasses have been proposed to facilitate commuters from the villages on both side of the route.

The Japan Bank for International Cooperation (JBIC) would finance the project, which also provided financial assistance for the construction of Kohat tunnel, the longest subway of the country.

He said that the widening of the Torkham-Jalalabad Highway would provide a fillip to trade links with Afghanistan and the landlocked Central Asian countries. Presently Torkham-Jalalabad Highway, lacking the required transportation facilities, was not suitable for strong bilateral commerce. After widening of the Peshawar-Torkham Road all kinds of vehicles would ply on it conveniently.

It may be mentioned here that NHA last year constructed Torkham-Jalababad 70-kilometre highway, Pakistan's biggest ever investment inside the war-ravaged country. The official said the construction of the highway has reduced travel time between Peshawar and Jalalabad considerably.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*PIA launches Karachi-Sialkot flights *​ 
Sunday, December 02, 2007

KARACHI: Pakistan International Airline (PIA) launched its first Boeing 737 flight operation on Karachi-Sialkot-Karachi sector effective from November 30, 2007, carrying 118 passengers from Karachi to Sialkot on PK-396. 

The flight will operate twice a week on every Friday and Tuesday. PIAs flight operation on the said sector meet a long standing demands of the businessmen and traders of Sialkot and Karachi who frequently have to interact with their foreign links located in Gulf, Far East, Europe and America. 

The first PIA flight was greeted at Sialkot Airport by Chief Executive Sialkot International Airport Ltd (SIAL), Khawar Anwar Khawaja, DCO Sialkot, City Nazim Sialkot Akmal Cheema, President Chamber of Commerce and Industry Sialkot, Chairman Pakistan Sports Goods Manufacturers and Exporters Association, besides elite of the city. 

Addressing the inaugural ceremony of first PIA flight to Sialkot, former chairman SIAL, Mian Riaz said that mega project was first in South Asia completed by the collective efforts of private sector on self help basis. 

It reflects Sialkot-based business and trading communities struggle and commitment which so far has been backed by dedication, sincerity and focused zeal, he added. It may be added that the Sialkot International Airport has been completed at a total cost of Rs2.5 billion through internal fund raising by the spirited entrepreneurs of the city, which primarily is the first private sector investment in building a project of this magnitude and significance in the country as well as in South Asia. 

It is located over an area of 1,050 acres of land and fully equipped for handling Boeing 747 and Airbus 300 aircraft, it opens a remarkable chapter in Sialkot regions aviation history (with 20 million people) since it caters to the sentiments and air travel needs of the people of the area. 

The expected cargo business, once it moves into full swing, is likely to be 53,000 tonnes to be air lifted from the city by the end of 2012. The potential traffic forecast for Sialkot International Airport is estimated to be 53,000 plus passengers a year, once the PIA flight operation moves into full strength. 

PIA launches Karachi-Sialkot flights


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## Neo

*IFC loan of $22 million for Airblue*​
Washington: The International Finance Corporation (IFC) is to sign a loan agreement of $22 million next week with Airblue, the largest private airline in Pakistan, to enable the private carrier to expand its operations. The IFC loan will help in the financing of pre-delivery payments towards the purchase of six additional A360s. The new aircraft will enable Airblue to increase the frequency of its flights to current destinations and to introduce new international destinations in Europe, the Middle East and South Asia. Airblue will be represented at the signing ceremony by Ali Siddiqui, a director of the company, Nasir Ali, managing director, and Farida Khambata, vice president for Asia. Rashad Kaldany will sign the deal on behalf of the IFC. Ambassador Mahmud Ali Durrani and Pakistani journalists have been invited to the event. khalid hasan

Daily Times - Leading News Resource of Pakistan


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## Neo

*Foreign investors eye Pakistani air routes ​* 
Tuesday, December 11, 2007

KARACHI: The Civil Aviation Authority (CAA) of Pakistan is in negotiations with two Middle Eastern parties interested in starting domestic air service in the country, Director General CAA Farooq Rehmatullah told The News on Monday. 

The prospective air service might also extend to other countries of the region, he said, but preferred not to disclose the names of the potential investors at this point of time. The new aviation policy allows private carriers to go international after completing the mandatory one year operational period on domestic routes. 

This disclosure comes on eve of the formal inauguration of the first privately run airport of the country and coincides with a period which is seeing a growing interest in the international air traffic from Pakistan with some major airlines increasing their number of frequencies and adding more cities to their networks. 

However, this interest in the international passengers has not been complemented by any surge in competition on domestic routes primarily because of the poor financial health of the Pakistan International Airlines (PIA) and inability of other domestic carriers to expand their wings in a big way. 

Even the encouragement offered by the new aviation policy for start of an air service on domestic routes with minimum investment has not materialized. The policy says intercity routes could be allotted to airlines which own small aircraft. 

It is not lack of interest. Such things take a lot of time, Remattullah said. You need engineering support and pilots and the cabin crew needs to be trained. CAA has already accorded permission to a private carrier to operate commuter service between Karachi, Hyderabad and Lahore. 

The airline, Aircraft Sales and Services (ASSL), will use a 48-seater twin engine aircraft on the route that links two domestic transit hubs with a relatively less developed city. ASSL was to start the operations back in September on thrice weekly basis but the inauguration has been delayed till next year. DG CAA also said that a number of private investors have showed interest in building and running private air strips in line with the Sialkot International Airport. 

Foreign investors eye Pakistani air routes


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## Neo

*First private airport to be opened today ​* 
Tuesday, December 11, 2007

KARACHI: The Sialkot International Airport (SIAL), Pakistans only private airport, will be formally inaugurated today (Tuesday).

The SIAL is one of its kind community-based project and has been completed on build, own and operate (BOO) basis by the exporter community of Sialkot. Civil Aviation Authority (CAA) will act as the regulatory body and will be providing necessary technical support during operation of the airport. 

Construction of the international airport at Sialkot was first approved in the year 2001 by President Pervez Musharraf and an amount of Rs230 million was allocated for the project. The airport is equipped with all international standards to facilitate national and international flights.

Situated in the heart of the countrys industrial hub, the site of the airport spans across 1050-acres and is 14km west of Sialkot with existing road links to Wazirabad, Gujrat, Gujranwala, Narowal, Sialkot city, Sialkot Export Processing Zone and Sialkot Dry Port, where a large number of potential passengers exist, who are frequent flyers with in and outside the country. An important feature of this airport is the runway which is 3,600 meters long, 45-meters wide with 7.5-meters wide shoulders on each side, making it one of the largest runways in the country.

First private airport to be opened today


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## Neo

*Infrastructure improvement ​* 
ADB loans $1.15bn to Pakistan

Wednesday, December 12, 2007

KARACHI: The Asian Development Bank (ADB) will provide Pakistan up to $1.15 billion in new loans to expand its key north-south highway network and for public sector reforms in Punjab. 

Of the total, $900 million will be spent to rehabilitate and expand key sections of the countrys main highway network, which starts at the port city of Karachi and runs northward, the international development lender said in a statement issued here on Tuesday. 

Both of these programmes will boost the economy, which generates new jobs and reduces poverty, said Sean OSullivan, Deputy Director General of ADBs Central and West Asia Department.

A lack of adequate roads in Pakistan is leading to a transport bottleneck. It is a constraint to improving competitiveness and attracting private sector investment, the ADB said. With trade flows concentrated along one major north-south transport corridor, this programme will make road traffic more efficient and reduce transport costs, said ADB Senior Investment Specialist Cleo Kawawaki. 

Cheaper transport costs will increase private sector productivity, which will help deepen and diversify the industrial base, both of which are necessary to provide jobs for the growing population, she said.

The $900 million will go toward a $5.36 billion investment plan by Pakistans National Highway Authority, which includes upgrading the highway from Karachi to Peshawar, as well as links to the port of Gwadar and the Peoples Republic of China. 

Once the road improvements have been completed, travel times between Karachi and Peshawar, a distance of 1,700 kilometers, will be cut from 72 hours to 36. The upgrade is also crucial for regional trade flows and will allow Pakistan to act as a transit artery for goods moving between Arabian Sea ports in the south and Central Asia and China in the north.

Funds from the first trench, $545 million, will be used for two road projects: a 184 kilometer stretch from Faisalabad to Khanewal, as well as a separate 34 kilometer expressway from Torkham, on the Afghan-Pakistan border, to Peshawar. 

For the subsequent tranches, depending on the appetite from private sector, structures such as guarantees and equity financing can be used under the programme to foster public private partnership in the road sector. 

In addition to the $900 million, the ADB will provide Pakistan with $260.65 million in loans and grants to assist Punjab in order to pursue reforms that will improve efficiency in the public sector.

Infrastructure improvement


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## Neo

*Islamabad Highway and Murree Road  a picture in contrast​*


ISLAMABAD: The Islamabad Highway and Rawalpindis Murree Road are a picture in contrast  on one the traffic flows freely while on the other it barely moves.

Although the highway has seen a tremendous increase in traffic in recent years, yet traffic jams, as are a routine on Murree Road, do not occur.

While the Capital Development Authority (CDA) has plans to convert the highway into an expressway with interchanges and underpasses, the authorities in Rawalpindi appear to sit tight on their plans of building an overhead above the busy road.

Traffic gets choked at several points on the road that runs through the heart of the city with Naz Cinema, Committee Chowk, Liaquat Bagh and Mareer Hassan being the biggest trouble spots.

An estimated 150,000 vehicles pass through these places daily, such is the rush of traffic that continues throughout the day and it is only late at night that it reduces.

In this light, it is a pity that the town planners have shown no urgency whatsoever in executing the proposed elevated expressway project above the stretch from the Mall to Faizabad. The plan remains on the drawing board with people now beginning to wonder if the project will ever take off.

District Nazim Raja Javed Ikhlas said that the expressway was at a consultancy stage. The Punjab Government has given the go-ahead for it and funds have been earmarked, he said.

But willingness to get the project going in earnest is not evident as motorists who have no option of avoiding the Murree Road continue to face hardship everyday. A move to make an underpass at Committee Chowk in a bid to ease the flow of traffic proved useless for the intersection remains the bottleneck as it always was.

Traffic in Rawalpindi has increased at such a rapid pace that even the Rawal Road that was built to ease the load on Murree Road, does not appear to have adequately served the purpose. Perhaps it is a case of flawed planning.

However, in comparison the CDA appears much efficient in decision-making and planning in deciding on what would be the shape of the highway it controls.

An official of the CDA told Daily Times that the plan is to build a dozen interchanges and underpasses over a period of three years and make the road from Zero Point to Rawat Toll Plaza signal-free.

We plan to have five interchanges on this stretch and seven underpasses which will be in addition to the Zero Point Interchange, he said. Unlike their counterparts in Rawalpindi, things are quite clear and the given time frame is appreciable.

The planned interchanges will be built at Khanna Bridge, Karal, Soan and Rawat while there will be underpasses at Defence Housing Authority, Japanese Road, Soan Garden Scheme, PWD Housing Scheme, Kurri Road and Sector I-8 Intersection.

The CDA also intends to add a rigid lane on either side of the highway for heavy traffic. Surely, the civic managers have a clear line of thinking while those in Rawalpindi do not seem sure of what course of action to adopt, no wonder the two authorities are a picture in contrast.

Daily Times - Leading News Resource of Pakistan


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## Neo

*New Islamabad International Airport: CAA directed to accelerate pace of work *​
ISLAMABAD (December 14 2007): Caretaker Minister for Defence and Defence Production Syed Salim Abbas Jilani has directed the Management of Civil Aviation Authority (CAA) to accelerate the pace of work on New Islamabad International Airport to accomplish the project within the given time.

He said this during his visit to the site of the New Islamabad International Airport (NIIA) here on Thursday. Project Director of NIIA, Brigadier Iftikhar Ali (retd) in a detailed presentation to the Minister highlighted various features of the project and progress achieved so far.

He informed the Minister that Civil Aviation Authority (CAA) had planned to equip the new airport with state of the art facilities for both domestic and international passengers. The project director said the new airport would have the capacity to cater to the needs of nine million passengers annually. He said that about 82 percent work on both the runways has been completed and the remaining work would be accomplished shortly.

The Minister visited the under-construction runways and other sites of the project and reviewed their progress. He appreciated the efforts of CAA and asked its management to ensure the quality of work and gear up their efforts to complete the project within the stipulated time.

The project director informed the minister that the new airport would be ready by the end of 2010. Additional Secretary, Ministry of Defence Major General Haider Ali Khan, Director General CAA, Farooq Rehmatullah and other senior officials of CAA and Ministry of Defence were also present.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*CAA to spend Rs270m on Quetta airport *​ 
Sunday, December 16, 2007

KARACHI: Civil Aviation Authority (CAA) has allocated Rs270 million for the upgradation of all facilities at the Quetta International Airport, said a handout issued here on Saturday.

During a visit to the airport between December 14 and 15, 2007, Director General CAA Farooq Rehmatullah also announced various projects for the airport which include installation of the Instrumental Landing System (ILS) and expansion of terminal building.

He further said that 15 per cent rise in salary has been announced for the CAA employees and a new performance-based appraisal system is in place. 

Highlighting recent milestones achieved by the CAA, the DG said that Allama Iqbal International Airport, Lahore is ranked among the worlds best airports in service performance conducted by the Singapore Airline. 

He added that the CAA has planned to equip the New Islamabad International Airport with state-of-the- art facilities for both domestic and international passengers and the new airport would have the capacity to cater to the needs of nine million passengers annually. 

He also mentioned that CDWP has approved Rs455 million for the upgradation of the radars to be at par with international standards. 

CAA to spend Rs270m on Quetta airport


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## Neo

*Pakistan to develop transport linkages with neighbours ​*
ISLAMABAD (December 17 2007): Federal Minister for Communications Barrister Habibur Rehman said on Sunday that the country embarked upon an ambitious plan to revamp its existing transport infrastructure network by developing the land and land-cum-transport linkages with all neighbouring countries particularly landlocked countries.

The minister said the induction of the country as permanent member of International Transport Corridor Europe-Caucasus-Asia (Traceca) will promote inter-regional cooperation trade and tourism in the years to come among the member states of the organisation. It is pertinent to mention here that country has been inducted as permanent member in 6th meeting of the Inter-Governmental Commission for development of the International Transport Corridor Europe-Caucasus-Asia (Traceca) in Astana Kazakhstan, attended by Secretary Communications Sajid Hussain Chattha, he said.

After country declared as the permanent member of Traceca, the minister said, the country will meet the challenges of serving as a regional hub for international trade not only for landlocked Afghanistan and Central Asian Republics but also provide land bridge between China, Middle East and Gulf countries.

Habibur Rehman said that the government is determined to translate President Pervez Musharraf's vision to transform the country into a developed, industrialised and knowledge based economy by using its geo-political location.

Enhancing economic partners in region, country is currently establishing the North-South National Trade corridor and energy corridor linking countries of the region with Gwadar seaport to develop highways, he added.

The minister is optimistic that Pakistan having tremendous human and natural resources as well as technological capability will emerge as the engine for growth for the entire world.

He is confident that with the new membership, he can foresee a global scenario where Asians equally share the benefits of globalisation, progress and development.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*CDA shortlists three firms for Rapid Mass Transit project​*
ISLAMABAD: The Capital Development Authority (CDA) has short-listed three international consultant firms for a feasibility study of Rapid Mass Transit System (RMTS) between Rawalpindi and Islamabad, a senior official of CDA Planning Wing told Daily Times.

The CDA Planning Wing will select one of these firms within the next few days to conduct the feasibility study of the project, he said, adding that the authority had prepared a Term of Reference (TOR) to launch the project.

The official said that the CDA, after receiving technical and financial bids from the interested international firms, had sent the TOR to them. The authority had selected five firms for pre-qualification, he added. He said, through the TOR the authority had informed the interested firms that they would have to collect and review all planning and transportation data of Rawalpindi and Islamabad. 

The official said, according to the TOR, the selected firm would conduct comprehensive field surveys and traffic counts to understand present day travel requirements. The firm would also review current travel patterns and the operation of available public transport systems for the development of the RMTS system, he said.

He added that under the TOR, the firm would be bound to complete the feasibility study within eight months. The traffic problem is being aggravated due to the growing population of the twin cities. He added that the population of the twin cities was growing at a rate of more than four percent per year, comparatively higher than the national growth, indicating a significant increase in migration to the cities from rural areas.

The official said, according to the TOR the present population of Islamabad was 1.2 million and currently both the cities could accommodate a population of over 2.78 million. With the present growth trend, it is expected that it will increase to seven million in 25 years, therefore the launching of the RMTS on an immediate basis is a must, he added. 

Daily Times - Leading News Resource of Pakistan


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## Neo

*Rules amended to facilitate foreign airlines ​* 
Tuesday, December 18, 2007

KARACHI: The State Bank of Pakistan (SBP) has amended its foreign exchange regulation to facilitate foreign airlines in Pakistan. 

In circular No 05 issued on Monday, the SBP said, under the existing regulations, in terms of para 3(d), Ch XIV, FEM-2002, foreign airlines are required to submit application along with all relevant documents including passage statement (V-37) to authorised dealers for effecting remittances of surplus passage and freight collection.

Now, it has been decided that instead of V-37, Foreign Airlines will henceforth submit BSP Sales Statement, which is being provided by the International Air Transport Association (IATA) to each Airline in Pakistan

However, data contained in V-37 statement should readily be available with the concerned ticket issuing office. It further said that in terms of instructions contained in Para 6, Chapter XVII, FEM-2002, at present Airlines in Pakistan have been restricted from issuance of tickets to Saudi Arabia or its adjoining countries during the Hajj Season i.e. from 10th Shawal to 10th Zilhaj each. Now, it has been decided to waive this restriction and accordingly, Para No. 6 appearing in Chapter XVII of FEM-2002 is hereby deleted.

Rules amended to facilitate foreign airlines


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## Neo

*Etihad Airways exploring new destinations in Pakistan ​*
KARACHI (December 20 2007): The Etihad Airways is exploring new destinations in Pakistan to expand its domestic operations besides it also intends to increase its international flights. The Area Manager for Etihad Airways in Pakistan, Joost P Den Hartog stated this while addressing the prize distribution ceremony of 'Travel Trade Partner's Recognition Awards-2007' here on Tuesday night.

Terming the people of Pakistan the Trade Partners of Etihad, he said that the number of passengers of Etihad doubled in 2007 showing customer's satisfaction over its services. "Pakistani market is volatile as sudden ups and downs come in it. We should increase the off-peak traffic of the airline in order to establish our business on strong grounds," he maintained.

Hartog apprised that the Etihad started its operations in Pakistan a couple of years ago with only four international flights in a week, which has now increased to 28 flights per week. The Area Sales Manager, Etihad Airlines, Ken Marshal said that the Etihad Pakistan achieved the 'Best Out Station Award' in the Etihad International Convention besides getting recognition award from World Trade Organisation (WTO) for its quality services.

Later, at the ceremony shields were awarded to top-10 Travel Agents in recognition of their services to expand the Etihad's business in Pakistan. The Travel Agents which received the shields include Al-Karam Travels, American Express Travel Services, Aroma Travel Services, Bukhari Tours and Travel Services, Fazl-e-Rabbi Pvt Ltd, OSS Travel Services, Polani Pvt Ltd, Quality Aviation Pvt Ltd, Sana Travels and Tours and Universal Travel Masters.

Trophies for the 'Agency Generated Highest Revenue-2007' and 'Biggest Market Share Shift-2007' were awarded to Bukhari Tours and Travel Services and OSS Travel Services, respectively. While American Express Travel Services achieved the 'Premium Sales Trophy for the year 2007'.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Massive damage caused to Railways installations ​*
KARACHI (December 30 2007): Massive damages caused to railway installations and network runs into billions of rupees. According to railway sources the damages assessed so far include the burning of 25 railway stations, six trains, eight locomotives, 16 bridges, 18 level crossings while railway track was uprooted at six places.

A number of railway cranes, track machines and motor trolleys were also set ablaze. Railway sources told APP that measures are being taken to start repair work and restoration of rail traffic. It will take weeks to restore traffic, railway sources told APP.

According to these sources assistance of army is being sought for providing protection to the life of railway workers to enable them to carry out massive repair work.

It was pointed out that the extent of damage could be judged from the fact that a km long "Baran Bridge" between Mating and Bholari Railway stations was badly damaged.

"We are back to the position when trains used to be operated through manual communication system," a railway official said while referring to damage caused to railway's sensitive communication system. "We cannot operate a train when there is no communication link station to station," he pointed out. It is feared that if goods train service was not immediately restored it can cause shortage of wheat and oil. Railway officials said that if required, the railway would seek the help of FWO and Army in carrying out repair work.

Business Recorder [Pakistan's First Financial Daily]


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## ahussains

Too much losses we have sufferred in this week peoples who are destrying this dont know this that they have to pay this all the form of taxes they just incress the rate of taxex on them ..


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## Neo

* Sialkot airport to facilitate businessmen ​* 
Saturday, January 05, 2008

LAHORE: The management of Sialkot International Airport Limited (SIAL) has lauded the engineering services provided by the NESPAK in the completion and operation of the first private sector airport built by the local business community at a cost of over Rs2.5 billion.

Constructed on build, operate and own basis, the Sialkot International Airport can handle 747 Boeing aircraft which operate on long-haul international routes and can accommodate four wide-bodied aircraft at a time.

A spokesman for the National Engineering Services of Pakistan (NESPAK) said the airport would greatly encourage foreign businessmen to fly directly to Sialkot for purchasing world famous sports goods, surgical instruments and leather products.

The NESPAK is also involved in the construction of Karachis Jinnah Terminal project, a new passenger terminal at the Allama Iqbal International Airport Lahore and is working on infrastructure design for upgradation of airports in Saudi Arabia and Libya and providing project management services for airports in Oman. 

Sialkot airport to facilitate businessmen


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## Neo

*PQA to undertake $100 million capital dredging project: five firms pre-qualified ​*
KARACHI (January 06 2008): The Port Qasim Authority (PQA) is planning to conduct capital dredging at the Port at a cost of $100 million, Business Recorder learnt on Saturday. "Five international companies--two each from Holland and Belgium and one from China--have been pre-qualified for carrying out 18-metre dredging at Port Qasi. This is a 100 million dollars project," sources in PQA said.

The pre-qualified firms, including China Harbour Engineering, Jan D. Nel, Dredging International, Van Ord etc, would dredge the "main or outside" navigation channel at Port Qasim to 18 metres depth, while draught in the inner channel would be increased to all-weather 14 metres, they said.

"This would enable us to accommodate vessels of 14 metres draught in all-weathers channel while this capacity may go from 15 to 17 metres in high tide period," they added. Another official, however, eyed 16-metre berthing capacity in normal days after completion of the project, which includes deepening and widening of the navigation channel.

A pre-bid meeting would be held on January 22, 2008 at the Port Qasim, to be followed by opening of the tenders on January 31, 2008. The said companies would have to submit their bids some time in mid-January. According to the official, work on the project should start some time in April 2008, to be completed by 2010-end.

Yet another official said the PQA had set 30-month time for completion of the project. The project would be awarded on 'Construct and Finance' basis. "It may be financed by the Port Qasim as it has enough money, but we want the companies to finance it as it would inculcate more responsibility in them", he said.

PQA has pre-qualified Scot Wilson/Zaheeruddin Consultant, Royal Haskoning UK Ltd/Techno Consultant, Engineering Consultant Int (Pvt) Ltd/Lous Berger Group, and Engineering Associates Lyon. Of these, Engineering Consultants International, Lous Berger Group USA appeared to be the lowest bidder with the bid of $106.611 million.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Federal government to provide additional Rs 30 billion for roads in Balochistan: chief minister ​*
QUETTA (January 06 2008): Caretaker Chief Minister Balochistan Sardar Mohammad Saleh Bhutani has said the federal government has promised to provide Rs 30 billion additional for uplift of road sector in Balochistan while a committee has also been constituted to evolve a feasible formula to settle issue regarding gas development surcharge and gas reality between the federal and the provincial governments.

The committee would comprise both the representatives of the federal government and the provincial governments. Addressing a press conference here on Friday, he said these decisions have been taken in the meeting headed by the Prime Minister held in Islamabad.

Besides, increasing the road sector development budget the meeting also reviewed the pace of work on railway track in the province as feasibility of Quetta-Dera Ismail Khan via Zhob Railway track would be launched by February next.

Work on Lackpass tunnel some 30 km of the provincial capital on Quetta-Karachi highway would also be completed soon while the meeting also approved Khujjak Tunnel project and work on which would be launched soon.

The meeting also approved projects for supplying gas to Loralai, Zhob, Killa Siafullah and Noshki districts while work on the project to supply gas to Winder industrial state would be launched soon.

Besides, the meeting directed for expediting work on electricity supply projects to Northern and Western areas in the project. He said Dadu-Khuzdar transmission line would be completed soon which would ensure power supply to Awaran, Washuk, Kurkh and other parts in the province. Rs 100 million allocated for establishment of Kurkh grid station during the meeting and work on this project would be launched as early as possible.

Besides, the Saudi government has promised Rs 320 million for electricity supply project for Dalbandin while rest of the cost of the project would be borne by the federal government, he said, adding negotiations between Iranian and Pakistani governments is continued regarding supply of power supply to Gwadar, Awaran and Chaghi areas.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Airblue growth beats PIA on domestic routes *​ 
KARACHI: The number of domestic passengers who preferred travelling in private airline Airblue has grown whereas the national flag carrier Pakistan International Airlines (PIA) is losing its popularity, data compiled by the Civil Aviation Authority (CAA) revealed.

According to provisional aviation statistics for the year 2006-07, Airblue carried 1.4 million passengers in 2006-07, up around 7.7 per cent from previous years 1.3 million it carried between different cities of Pakistan. The PIA, faced with accumulated losses of more than Rs35 billion, lost domestic market share by 5.7 per cent as it carried five million passengers compared to 5.3 million during the period under review. Airblue has capitalised on Aero Asia clientele, said an industry official. The market lost by Aero Asia in the last couple of years has been taken over by Airblue.

After more than a decade of successful operations, Aero Asia was barred from flying by the Civil Aviation Authority (CAA) in May last year owing to safety concerns. Aero Asia carried more than one million passengers in fiscal 2004-05 but the number shrank to 756,308 in the following year and dropped to 278,900 in 2006-07. In contrast, Airblue, which started with only 22,320 passengers in 2003-04, carried 1.4 million passengers in the last fiscal year.

Besides, PIA has suffered from a very bad punctuality record in the last couple of years, continued the official who requested not to be named. This irregularity and financial woes of PIA have also worked to the advantage of Airblue. The private carrier has also emerged as a leader in introducing innovation in the aviation industry of the country. It brought the self check-in facility at its Karachis hub of Jinnah International Airport whereby passengers with baggage obtain a boarding card through the touch screen menu without needing to report to the counter.

The concept of booking-first-to-get-the-lowest-fare has also contributed to advance of Airblue in gaining the market share. PIA is now following the suit and has adopted the same strategy. Airblue with its six A320 and A321 aircraft was also able to ride the tide of rising fuel cost, which bankrupted many airlines across the world.

Shahid Khaqan Abbasi, the Chief Executive Officer and the brain behind the success of the private airline is confident that future fuel-related price shocks would be sustained. We are in a phase of growth, he told The News. With aggressive revenue management and increasing the number of passengers we will make through this period. However, he hinted that few cost elements would be passed on in fares and others would be absorbed through operation of the aircraft on profitable routes.

Around 305,370 passengers travelled by Shaheen Air International (SAI) in 2006-07 as compared to 55,670 in the previous year. On the international front, PIA carried 3.59 million passengers in 2006-07, Airblue 237,170 and SAI 198,067. Except for the flag carrier, the two domestic airlines have registered growth in previous year.

Airblue growth beats PIA on domestic routes


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## Neo

*CAA chalks out $3.5bn airport cities plan ​* 
Thursday, January 10, 2008

KARACHI: Director General of Civil Aviation Authority (CAA), Farooq Rahmatullah has revealed that the CAA is looking to invest $3.5 billion to construct airport cities offering facilities like eateries, shopping centres, entertainment ventures, international hotels and business centres, apartments etc.

Talking to The News after after inaugurating the third Makro-Habib wholesale store at Shahra Faisal near Star Gate on Wednesday, he said that the CAA has arranged to facilitate proper infrastructure such as electricity, water, gas and roads and the air port city project has international planners working on it which is yet at its initial planning stage. 

The DG further informed that such a city would be initially built in Karachi and then similar projects would be replicated around Lahore and Islamabad airports to commercialise the vast number of lands surrounding them. 

Rahmatullah also revealed to The News that an airport express train is being planned for which would take passengers directly from the airport to the city and cantt stations with an approximate travelling time of 7 to 8 minutes.

He said that the feasibility report for both the projects are being worked upon and it would take about 15 years for the venture to materialize in any form. He added that the Makro stores being introduced in Pakistan are ideally in line with their strategies and therefore he offers them complete support.

Regarding the political situation he said that the countrys history is full of wars and martial laws but the country has continued to grow and therefore he is optimistic about the future as whatever the circumstances are people strive to improve and achieve success.

Meanwhile inaugurating the third Makro- Habib wholesale store near Star Gate Farooq Rahmatullah said that with the increased focus worldwide by civil aviation bodies on revenue generation, activities based on commercial operations and effective use of real estate within and around airports are in practice.

He said that the trends in CAA Pakistan are also shifting towards exploring this aspect of revenue generation and this is the first step towards achieving the milestone.

CAA chalks out $3.5bn airport cities plan


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## solid snake

Karachi metro is built, this is the track line layout that will be used.





If


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## Neo

*Railways to get Rs 6.5 billion for restoration work ​* 
ISLAMABAD (January 13 2008): Caretaker Prime Minister Mohammed-mian Soomro has directed the Planning Commission and the Finance Ministry to process Pakistan Railways requirement of Rs 6.5 billion for complete restoration of the damaged service in shortest time span. He was chairing a meeting held here on Saturday to consider the losses caused to railways during recent riots particularly in Sindh.

In his presentation Chairman Pakistan Railways told 32 out 263 passenger trains and six out of 45 freight trains were not plying currently. Of these, 14 are on the main corridor while 18 are on branch lines, he added.

He said Pakistan Railways had already repaired 19 out of 35 damaged locomotives with its own resources while spare parts were being imported for repair of remaining 16 railway engines.

Federal Minister for Railways, Mansoor Tariq informed the meeting that the riots caused damages worth Rs 6.5 billion, which included damage to vitally important signalling and communication system, locomotives, coaches and station buildings. He said that Railways have closed down 20 stations in Karachi and Sukkur Divisions alone after being partially damaged or totally burnt.

Prime Minister Mohammed-mian Soomro asked the Railways Ministry to restore this public service institution fully back to normal operation and assured that the government would provide the necessary resources for the purpose. He lauded the efforts of Pakistan Railways in bringing the rails back on tracks within 53 hours after riots on 27th December.

He praised the dedication shown by the railway workers in restarting the service under difficult circumstances particularly the oil transportation trains. He also acknowledged the role played by Rangers and Pakistan Army in rendering valuable contribution towards restoration of rail service. The Prime Minister regretted the damage caused to the machinery and property of Pakistan Railways and it ultimately hurt the common man.

He said the people must show restraint while publicly manifesting their sentiments and refrain from causing damage to public property. He said many railway stations which have been burnt, had historic architectural value as well. Several of them had wooden roofs and arches, which were burnt to ashes.

He said the loss to railways is the loss of the entire Nation as it is the cheapest and safest mode of travel and transportation across the country. Soomro said that signalling system is the backbone of the entire railway system and while restoring it effort should be made to upgrade the technology, if possible.

He also said that strict quality control should be ensured while restoring the damaged coaches. Senior Railways officials told Business Recorder that presently Pakistan Railways is functioning at 70 to 75 per cent of its capacity as passengers traffic has slowed down.

They said the Railways had refunded Rs 100 million to the passengers due to cancellation of their bookings during the past two weeks. They said the running speed of the passengers trains had been reduced from 105 Kilometer to 80 kilometers per hours in Karachi and Sukkur divisions to ensure safety of the passengers.

They said the security forces were guarding/ patrolling to protect the railway lines in these two divisions whereas strength of the railway police has also been increased. They said that due to damage to signal and communication systems at 60 railways stations, the station maters are using wireless telephones for smooth running of the passenger and goods trains.

Officials said that Pakistan Railways which was the economic lifeline of the country, is giving priority to the transportation of oil, wheat and other essential goods to upcountry. They said that it would take at least six months to repair the damaged locomotives, coaches damaged tracks, railway stations, signal, and communication system in the country.

Business Recorder [Pakistan's First Financial Daily]


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## mujahideen

solid snake said:


> Karachi metro is built, this is the track line layout that will be used.
> 
> 
> 
> 
> If



I think if the metro is built it would clear up the traffic mess in Karachi.


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## Plasma

There is no metro in Karachi and this plan seems highly unlikely. There is only one stop in Clifton and defense and that doesn't seem logical.


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## Neo

* Two islands to emerge in Mangla Dam construction ​*
MIRPUR (January 13 2008): With the completion of Rs 62 billion under-construction Mangla dam raising project, two islands will emerge in picturesque Mangla Dam reservoir here through the construction of two required dykes by Wapda, official sources said.

The dykes project will cost about Rs 386 million--to be borne by the AJK government with the liberal financial assistance of Pakistan government, they said. The dykes will be constructed to provide direct access to the population of the adjoining villages, Panayam and Kharak, in Mirpur subdivision to the rest of the city.

Sources said that all necessary steps were being taken by the government for early rehabilitation and resettlement of the affected families displaced due to the raising of the dam. The package of incentives announced by the government for the rehabilitation of the Mangla dam affectees would be implemented in true perspective and within the stipulated time frame, they added.

Mangla dam affectees were being provided financial compensation of their affected build-up and other property in line with the current market rates. Total 133 villages, including 110 of Mirpur district and only three of adjoining Kotli district would be affected following raising of the Mangla dam, sources said.

They indicated that Mangla dam affectees' rehabilitation and resettlement process was being monitored by authorities. They said that allotment of residential plots to the affectees in New Mirpur city and other under-construction small towns would soon be exercised under phased program by Mangla dam resettlement department soon after the receipt of green signal from Wapda after completion of raising projects.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*PIA's directors review operating plan *​
KARACHI (January 15 2008): PIA Board of Directors held its 310th meeting here on Monday to review PIA's operating plan for 2008. The Board of Directors made several suggestions to deal with the issues confronting the airline. The review is partially completed and the Board will again be briefed about other operating and strategic matters in its next meeting.

Meanwhile, the PIA Directors appreciated some of the operating achievements during 2007 like removal of EU restrictions on PIA aircraft, successful Haj operations, improved flight punctuality and in-flight services.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Sialkot-Kuwait flight soon ​* 
SIALKOT (January 15 2008): Pakistan International Airlines (PIA) has decided to finalise necessary arrangements for starting direct flight from Sialkot to Kuwait shortly. This was stated by Chief Executive Sialkot International Airport Khawar Anwar Khawaja.

Talking to Business Recorder here Monday that at present PIA was already successfully operating two flights weekly from Sialkot to Karachi while third flight would operational early next on the same route. Pakistan International Airlines (PIA) is taking the step keeping in view the highly encouraging response of passengers, he said.

Khawar Khawaja further said that foreign investors constantly are showing their keen interest to invest in different projects including the construction of a five star hotel near Sialkot International Airport.

The functioning of airport in this export-oriented city and hub of cottage industry of the country would not only opening new vista of development, foreign investment and industrial development but it would help further accelerate the pace of trade commerce activities, he added.

The airport will not only cater the needs of golden industrial triangle of Sialkot, Gujranwala and Gujrat but also generate thousands employment opportunities, he added. It may be mentioned that most modern Apron having the parking capacity for six wide-bodies aircraft or three airbus plus F-27 aircraft had been constructed at the airport. Besides 3600-metre long, 45-metre wide taxiway had been constructed.

The longest international runway of the country measuring 3.6-km had been constructed and it will cater the requirement of all aircraft used for international and domestic cargo and passenger traffic. The professionally designed International Airport has been developed over 1004 acres and fully equipped for handling B747-400, A300 and 737 aircraft.

The potential traffic forecast for Sialkot international airport is scaled down at the time of opening to 53,0339 passengers a year while estimated cargo tonnage at the time of opening is expected to be 28515 tons.

This means that by the end of year 2012 about 53,000 tones of cargo will be lifted from Sialkot International Airport. Due to the provision of passenger facilities at Sialkot International Airport, it was estimated that the general public would benefit to the tune of over Rs 2 billion in terms of time and money savings. Similarly, cargo handling at the airport would save more than Rs 1 billion for the businesses.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Foundation stone of Corridor-II unveiled ​*
KARACHI (January 15 2008): President Pervez Musharraf on Monday reiterated his firm resolve to hold free, fair and transparent elections in the country in a peaceful environment. Speaking as chief guest at the foundation stone unveiling ceremony of multi-billion rupees signal-free corridor-II at the Governor House, the President also reiterated the government's resolve to root out terrorism.

"We have to break the back of terrorism and extremism and work for sustained economy to make Pakistan stronger and stronger," he declared. "Killing of innocent people at the hands of terrorists and extremists through blasts and suicidal attacks breaks my heart but we have to fight them out," he said, adding that this menace would have to be overcome through force as there was no political solution.

He referred to ongoing anti-terrorist operation in Swat and said it has yielded big success and more will be achieved. "They (militants) will be eliminated," he said and added that the "root causes" would be addressed.

President said he has the resolve and commitment that Pakistan comes first, even if it costs him his popularity. Referring to issue of deposed judges, the President without going into details said, he knew that decision he had taken would have its effects, but he had to take it because it involved serious issues.

In his discourse the President dwelt at length on the problems of Karachi and mentioned new water supply project, solid waste management, mass transit, Lyari Expressway, affluent treatment and other issues including atta shortage and recent violent disturbances.

At the outset of his eloquent address, the President described the ceremony somewhat between earth-breaking and inauguration and said that today another milestone is being achieved. He appreciated the passion with which Nazim Syed Mustafa Kamal was working. He said although previous Nazim also worked for development of Karachi with sincerity, but Mustafa Kamal excelled in dynamism and he was observing him since he took over as City Nazim.

The President pointed out that when someone at the lower level, works with a passion, it does prompt the man at the upper level to work with the matching pace. It is reciprocal and Kamal has done an exceptionally good job, the President remarked and said he has never seen work going on such a fast pace in Pakistan.

Observing that Karachi has a lot of problems, more so because of the multi-ethnic character of this mega city, President said that in order to solve these problems the country, first of all, needs economic strength.

With sustained growth in economy, he said, not only funds will continue to be generated but investment will also flow in and our success in this regard became possible because of transformation of economy in which the fiscal deficit was controlled and revenue generation increased.

The President quoted Cotton Export Corporation and Rice Export Corporation as two examples of incurring losses, and said that during transformation of economy these were controlled and expenses cut down and remittances and investments increased.

Business Recorder [Pakistan's First Financial Daily]


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## AgNoStiC MuSliM

Plasma said:


> There is no metro in Karachi and this plan seems highly unlikely. There is only one stop in Clifton and defense and that doesn't seem logical.



Aren't those upscale areas anyway? If so, I doubt that there will be a large percentage of the population interested in using the Metro with the "peasants". You would ideally want it to connect your most densely populated areas, with lower incomes (lack of transport) and your industrial, business sectors.


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## Neo

*Work on 100-km long Sialkot-Lahore motorway commences ​* 
SIALKOT (January 16 2008): The Initial development work on mega project of 100-KM long Sialkot-Lahore motorway costing Rs23 billion has been initiated. Official sources told Business Recorder here Tuesday that the motorway would have six lanes, seven interchanges, eight flyover and 40 bridges.

Moreover new industrial estates would be developed on Sambrial, Gujranwala and Muridke interchanges along with the new economic corridor which will surely augment industrial production in area of its influence.

Besides, two universities, a sports city, IT Park and Lake City would also be developed along with the motorway. The Sialkot-Lahore motorway would also be supportive in enhancing farm and agriculture industry while help reduce the poverty graph in long neglected towns and districts spreading from Narang Mandi, Narowal, Pasrur to Sialkot.

In addition to this more than sixty thousands (60,000) trees were being planted on Sialkot-Lahore motorway route for its beautification and to ensure pollution-free environment to the travellers.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Pakistan, Afghanistan sign accord on air contacts ​* 
Thursday, January 17, 2008

RAWALPINDI: Pakistan and Afghanistan on Wednesday signed an agreement for air contacts after holding four hours negotiations here at the Defence Ministry.

Afghan Deputy Minister for Transport and Civil Aviation Engineer Raz Mohammad Allamani led his delegation while Pakistan was represented by a 10-member team led by Additional Defence Secretary Major-General Amir Haider Ali Khan.

According to the agreement, the national airline and two private companies, Shaheen Airlines and Air Blue, will provide weekly facility to 1,000 air passengers. Similarly, the Ariana Airlines of Afghanistan also will facilitate passengers of both the countries.The social and local circles of both the countries have welcomed the agreement and said it would also help strengthen the relations between the two countries. 

Pakistan, Afghanistan sign accord on air contacts


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## Neo

*Railways to acquire 150 new coaches for Rs6bn ​* 
Saturday, January 19, 2008

ISLAMABAD: With a view to increasing its capacity to carry passenger traffic, the Pakistan Railways plans to purchase and manufacture 150 new passenger coaches at the cost of Rs5.838 billion. Around 40 carriages would be imported as completely built units and 110 carriages would be assembled locally from completely knock down kits.

The main objective of the plan is to replace one train on main corridor and introduce seven new trains that will run on sections including Peshawar Cantt-Karachi, Rawalpindi-Karachi, Lahore-Faisalabad, Lahore-Rawalpindi. As a result of this operation, additional 3,165 million passenger kilometres will be earned, a senior official told The News.

He said on Peshawar Cantt-Karachi route, one train would be replaced and on Rawalpindi-Karachi route an additional train will be introduced while Lahore-Faisalabad and Lahore-Rawalpindi section would each get three additional trains.

The new trains would provide better, comfortable and safe journey, improved quality of services, higher standards of efficiency and restore good will of public through punctual running trains. The carriages with speed of 140 kph (kilometre per hour) would have air spring shock absorbers that provide more comfort to passengers and need lesser maintenance.

Out of 150 new design broad gauge coaches, 40 carriages will be imported as completed built Unit (CBU), while 110 carriages will be manufactured locally at carriage factory, Islamabad through import of parts in Completely Knock Down condition, the official explained and added that the material will be procured for 110 carriages with Transfer of Technology (ToT). Foreign training of 40 man-months, augmentation of plant and workshops, ToT and 3 year spares will also be a component of project.

The present passenger traffic capacity of Pakistan Railways is 26,446 passenger kilometres (PM kms) annually that is not sufficient to meet the needs of developing economy amid growing volumes of passengers travelling across the length and breadth of the country.

Pakistan Railways is at present carrying 20 per cent of the total passenger traffic moving only from Karachi due to which balance 80 per cent is carried by road, which is more expensive as compared to rail out but also generates excessive pollution and is less safe.

The official said that passenger and freight targets for 2010-11 have been fixed as 27,900 MP km and 12,900 tonnes per km in business plan. Against the target, railways carried 26,446 MP km and 5,453.968 tonnes km during 2006-07, he said.

He said that passenger traffic has increased by 35 per cent from 2000 to 2006-07 from 19,589 MP km to 26,446 MP km at the rate of six percent per annum. Owing to economic activities in Pakistan, the time consciousness has increased and every one prefers better means of transportation with less journey time and facilities. He said that passenger traffic of air-conditioned lower class has been increased by 25 percent in last five years.

Railways to acquire 150 new coaches for Rs6bn


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*Govt to build infrastructure at Karachi Shipyard​*
* Federal government has allocated Rs 483.42 million for the fiscal year 2007-08 for KSEW infrastructure

ISLAMABAD: Federal government has decided to build basic infrastructure for construction of surface commercial cargo ships and frigates including F-22 P frigates (warships) in the country at Karachi, official sources said here Friday.

Federal government has allocated Rs 483.42 million for the fiscal year 2007-08 that would be met from local resources and releases would be made from federal Public Sector Development Programme (PSDP). 

Keeping in view the importance, the federal government has already deleted Karachi Shipyard & Engineering Works Limited (KSEW) from its proposed list of privatisation in the recent past. 

It is envisaged that if the shipbuilding project for local organisations like Pakistan Navy, Karachi Port Trust (KPT), Maritime Security Agency (MSA) and Pakistan National Shipping Corporation (PNSC) are undertaken successfully, then KSEW is likely to get export orders from friendly countries. This would significantly contribute towards earning foreign exchange for Pakistan. 

Overall this project would provide enormous benefits to national exchequer in terms of saving foreign exchange, earning foreign exchange, jobs creations, transfer of technology in new shipbuilding techniques etc. 

Construction of basic infrastructure for shipbuilding would be completed within 24 months. Official working paper of the project available with Daily Times here on Friday reveals that the project envisages construction of state of the art workshop for shipbuilding including civil works and up gradation of existing workshop at KSEW for construction of surface commercial cargo ships and frigates including F-22 P frigates (warships) in Pakistan. 

The project envisages indigenous construction of surface ship would be started under the transfer of technology arrangement with China Shipbuilding and trading Company (CSTC). For effective implementation and coordination a project management team has been constituted. 

According to the paper the project would enhance and improve the productivity of KSEW and ever-increasing demand of the industrial sector particularly of the shipbuilding industry of the country. KSEW is the only industry of its type (shipyard) in the entire country, which is fulfilling the needs of other local industries through shipbuilding and repair besides catering the vital needs of other local industries through manufacturing various items of general engineering utility. In order to undertake this project, it was felt mandatory to upgrade various machinery and infrastructure. 

Construction of various types of ships by the government of Pakistan would provide benefits like creation of job opportunities, improvement in local vender industry etc. In addition, KSEW with the inclusion of these facilities would be able to construct more warships for domestic as well as international markets, which would be important source of foreign exchange earnings. 

Re-arrangement for up-gradation of the KSEW workshop includes six areas including construction of foundation of installation of straightener machines and its production line, installation of NC cutting machines, construction of foundation, construction of foundation for two Gantry Cranes of lifting capacity of 50 tones each, construction of production line for edge, short blasting facility, ware house for storage of KOM and other civil works.

Daily Times - Leading News Resource of Pakistan


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*Pak-Afghan road link restored ​*
CHAMAN (January 19 2008): The traffic on the international highway connecting Pakistan with Afghanistan was reopened on Friday after a suspension of more than 40 hours due to heavy snowfall on Kozhak Top.

The SHO, Chaman Police, Abdul Baseer told APP that a team of police and the FC functionaries were sent to the hilltop with heavy machinery and they succeeded in reopening the road after hours of effort. It is worth mentioning that a large number of heavy and light vehicles remained stranded on both sides of the hill waiting for the road to reopen.

Business Recorder [Pakistan's First Financial Daily]


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*Hydropower projects: Wapda undertakes various feasibility studies ​* 
LAHORE (January 18 2008): The Water and Power Development Authority is working on a string of feasibility studies and detailed engineering designs of various hydropower projects with an accumulative generation capacity of 18,000 MW and it is expecting to finish off the projects in the next two years.

It emerged on Thursday at a briefing for Special Assistant to Prime Minister Amar Lal when he visited the Wapda House. Lal said the power authority must take all possible measures to reduce the gap between generation and consumption and stressed the need to tap all resources of power generation, particularly hydro, coal, wind and solar energy, through co-ordinated efforts.

The Pakistan Electric Power Company (Pepco) managing director talking about the current power crisis told Lal that his company was executing short-, medium- and long-term strategies to tackle the power problem in the country. He said Wapda and the private sector were setting up rental powerhouses to give relief to the public apart from rehabilitating the current thermal power plants.

He said his company would start distributing 100,000 energy saver bulbs to its consumers for replacement of ordinary bulbs of 60 or 100 watt and that it was planning a smooth power supply to consumers in Ashura. The Wapda hydro planning general manager and his senior Pepco technical and planning counterpart then briefed about hydropower projects and supply-demand position of electricity.

Business Recorder [Pakistan's First Financial Daily]


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*Rs five billion being spent on farm-to-market roads construction ​*
SIALKOT (January 20 2008): The Punjab government is spending more than Rs 5 billion on the construction of farm-to-market roads in rural areas of the province. Official sources told APP here on Saturday the step had been taken for linking far-off and ignored rural parts with their respective district and tehsil headquarters across the province.

The main purpose of constructing farm-to-market roads was to enable farmer community to easily transport their agricultural produce to nearest market, the sources added. Under the programme adequate efforts would also be made for linking these farm to-market roads with inter-district roads aimed at lessening not only the travelling problems but also linking these areas with other districts in the Punjab, sources said.

Business Recorder [Pakistan's First Financial Daily]


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*Pakistan ranked 67th in basic infrastructure category: World Bank report ​*
FAISALABAD (January 23 2008): Poor infrastructure services result in constrained economic activity and reduce the country's growth potential. Elasticity of business sector output and productivity with respect to public core infrastructure investments are usually much higher than those of private business investments in Pakistan, said World Bank study report.

South Asia Sustainable Development Unit (SASSD) South Asia Region's report said that Pakistan Government's ability to plan and deliver infrastructure projects effectively will determine the future pace of growth of the country.

World Bank report mentioned that according to the World Economic Forum Survey (2006-07) of 125 countries, Pakistan ranked 67th in basic infrastructure category. Historically, the balance between demand and supply of infrastructure facilities has faced a chronic imbalance.

For instance (a) the ageing and inadequate irrigation and water infrastructure deficit alone is estimated at Rs 4 trillion (US $70 billion). Pakistan needs to invest almost Rs 60 billion (US $1 billion) per year in new large dams and related infrastructure over the next five years,(b) the under performance of the transport infrastructure costs the economy Rs 300 billion (US $5 billion) per year and (c) existing power shortages of approximately 2,000 megawatts will increase to 6,000 megawatts by the year 2010 and 30,700 megawatts by the year 2020.

The study report stated that the per capita energy consumption in Pakistan is amongst the lowest in the world and a lack of adequate energy resources precludes industrial growth affecting all sectors of the economy.

After the lost decade of the 1990s, World Bank study stated that Pakistan's economy has bounced back and has been exhibiting growth rates of above seven percent in recent years. This, coupled with population growth rates of over two percent, places an acute demand on basic and advanced infrastructure.

World Bank study observed that the recent power shortages are a classic example of the rapidly growing economy's ageing and deficient power infrastructure, which is failing to cope with burgeoning demand and resulting in an energy crisis in the country.

A similar situation also prevails in the supply of the transport infrastructure in Pakistan. It is obvious that lack of appropriate public infrastructure is constraining (a) Pakistan Government's ability to transfer the impact of this growth to the wider public, (b) delivery of basic public services, (c) sustained advancement of traditional sectors such as agriculture and textiles and (d) development of emerging sectors such as services and industries required for continued economic expansion.

Therefore, the Pakistan Government requires heavy investment in physical infrastructure in order to improve delivery of social services and to enhance its internal and global competitiveness. In short, the infrastructure crisis is here, but the 'meltdown' will be inevitable in five to ten years unless the Pakistan Government is able to respond in time.

World Bank study mentioned that the Govt. has responded to this demand by planning extensive infrastructure expansion. The Federal MTDF, allocates Rs 2,162 billion (US $36 billion) to the development of large infrastructure-embarking on an ambitious program to upgrade roads, railways, air, power, water, irrigation and other infrastructure.

Of this, Rs 993 billion (US $16.3 billion) will be through the Public Sector Development Program (PSDP). The MTDF envisages a tripling of the infrastructure PSDP from an average of Rs 150 billion per year to Rs 440 billion per year. The current FY08 PSDP allocation of Rs 520 billion has already eclipsed this target.

There are other emerging infrastructure programs that are required to respond to the rapidly developing economy, and are not entirely included in the MTDF.

These include the National Trade Corridor Improvement Program (NTCIP), the construction of large water reservoirs (Kalabagh, Diamer, Bhasha), the rehabilitation of the key barrages, delivery of clean drinking water, sanitation, and electricity to all and the new Islamabad Airport project (which alone require substantial investments over and above the MTDF).

In addition, provincial governments, districts and towns/municipalities have also embarked on infrastructure improvement in the face of rapid urbanisation. Provincial capital development expenditure has tripled during the last three years alone and is projected to grow as devolution takes root and service delivery improves during the coming years, World Bank study observed.

In formulating development plans, World Bank study mentioned that the various tiers of government have primarily focused on identification of the required infrastructure and on the availability of public financing.

There is also the growing realisation that 'this infrastructure was needed as of yesterday'-that is why, most of the implementation period for this infrastructure delivery is now or at the latest over the next five to seven years. However, very little analysis has been done to factor in the constraints that may or will be posed by the wider construction industry, said World Bank study.

The study highlighted that "Public Infrastructure Implementation" goes through the stages of planning and approvals, financial allocations, detailed engineering, and physical construction, and finally through commencement of operations.

A quick review of the project cycle in Pakistan during the past few years shows weaknesses in all these stages. Of particular interest, and the easiest to find analytical data on, is the planning and financial allocation for the projects. This is the foundation of project implementation and this is where things start to go wrong.

Poor incentive structures motivate an annual 'mad rush' wherein each public agency puts in requests for maximum possible allocations. The agency neither considers their portfolio's throw-forward, nor do they analyse their implementation capacity.

It is common to find that, based on annual project allocations the projected average completion times for projects are seven to eighteen years- figures that should normally not exceed three years, World Bank study disclosed.

The study report pointed out that this occurs because too many projects are taken in hand simultaneously and without proper planning. So even though 'on-the-record' it appears that total public allocations are more or less spent, the picture is much more complicated-expenditures are not in line with plans and priorities- lots of projects are allocated money before they are ready for implementation.

Based on the allocations in the PSDPs/ADPs of the last 5 fiscal years, individual infrastructure projects in Pakistan would take a long time to complete-18 years on an average for irrigation and power (ranging between 3.4 years to 30.8 years) and 8 years on an average for roads (ranging between 4.6 years to 13.6 years).

This assessment is based on analysis of the federal and provincial expenditure portfolio in the power, irrigation and roads sectors over the last three to five years, study report explained.

For example, World Bank study stated that during FY04, two hundred and eighty three projects (costing Rs 43.62 billion) at federal and provincial levels in power, irrigation and roads, were allocated a sum of Rs 5.16 billion, which was never spent.

Conversely, in the same period, fifty-nine projects (costing Rs 241.43 billion) which were not allocated any money in the budget incurred an expenditure of Rs 75.156 billion. So, the agencies started with annual allocations for these two hundred and eighty three projects which were far less than optimal (optimal allocations could be around Rs 12 billion), and in effect indicated to stakeholders that these projects will drag on an average for more than eight years.

Then, the agencies undertook expenditures on fifty-nine new projects, which are not in the portfolio and spent above optimal amounts from unplanned allocations indicating their intent to finish these large, 'unplanned' and politically motivated projects in a three-year period.

As demonstrated above, the public agencies seem to be taking on too much and delivering too little, the 'little' that they do deliver is mostly determined by the political priorities.

But often, even when the government has tried to force public agencies to reduce the portfolio throw-forward, money has been difficult to come-by. The reason behind this lies in the nature of public infrastructure projects and related dynamics of the financial allocations.

Delivery of public infrastructure has long gestation periods and is built to cope with future anticipated demand. This requires visionary planning and often entails seemingly large pre-emptive investments.

These investments are a political-hard-sell as they cater to a future that is often difficult to visualise today. Further, the higher discount rates in developing countries create a challenge to appropriate funds for public infrastructure from urgently needed consumption expenditures.

This in-turn puts huge public pressure on the timely delivery of such projects-high visibility of these projects has often been a political graveyard. Delays therefore, not only have economic costs but also large political costs, World Bank study observed.

Business Recorder [Pakistan's First Financial Daily]


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*Only less than 25-year-old trucks may ply roads ​* 
Govt forms body to streamline transport issues

Tuesday, January 29, 2008

ISLAMABAD: The government decided on Monday to form a committee to deal with issues concerning provincial governments and various agencies regarding registration of vehicles, training of drivers and harmonising age factor of various types of transport. 

The decision was taken in a meeting held here under the chairmanship of Shahab Khawaja, Secretary Industries, Production and Special Initiatives.

The objective of the meeting was to review implementation of modernisation of the trucking sector of Pakistan, wherein it was proposed that not more than 10-year-old trucks should be allowed to ply on motorway while trucks plying on other roads should be less than 25-year-old.

Representatives of World Bank, Provincial Governments, Transport companies, OMES and various governments organizations attended the meeting. Implementation on specific proposal was reviewed and time limits for completion of actions on these were fixed. 

In his opening remarks, Secretary clarified that the role of Ministry was limited to coordination as various agencies were concerned with the implementation on trucking policy as approved by ECC. 

It was decided that Engineering Development Board (EDB) will hire the services of a consultant to identify the burden on national exchequer on account of special financial relief provided to private sector transport companies. 

The meeting also reviewed in-depth the qualification of these companies for getting financial concessions. A need for formation of a national body for trucking sector was also emphasized. The training of drivers was classified as most important issue of the transport sector. The manufacturers assured their willingness to establish driving training institutes in their premises. The need of establishing driving schools at Divisional Headquarters was also felt. 

The meeting directed Pakistan Standard and Quality Authority (PSQA) to finalize national standards and specifications for trucks and trailers by March 31, 2008 so that these could be notified by Ministry of Industries, Production and Special Initiatives.

The meeting was informed that National Industrial Parks Development and Management Company has already acquired land in Lahore and Karachi for establishing Trans Freight Stations. The company was also working for establishment of Industrial Estate for trucking sector at Lahore.

Only less than 25-year-old trucks may ply roads


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*Pakistan Railways to buy 150 new coaches​*
LAHORE: Pakistan Railways (PR) would buy 150 passenger coaches of different classes worth Rs 5.5 billion from China, sources told Daily Times on Monday.

They said that the department suffered a huge lost after the assassination of Pakistan Peoples Party (PPP) leader Benazir Bhutto, as at least 100 coaches were damaged. The PR was facing huge problems in facilitating its customers due to which the ministry has approved the tender of making 150 passengers coaches.

The Pakistan Railways will receive 50 of the 150 passenger coaches bought from China during the second week of February, sources said adding that it is possible that the rest of locomotives would arrive in knockdown or semi knockdown condition and would be assembled in Risalpur locomotive factory.

The railways network was very badly affected during the agitation and it will take more than one year for railways to come back in its actual position, he said adding that besides the coaches the signal system of the authority has also totally damaged due to which the concerned staff has been facing many issues including the operation of trains beyond the schedule.

The basic reason behind purchasing the passenger coaches from China is to facilitate the passengers and resume the trains that were closed by the authority.

Daily Times - Leading News Resource of Pakistan


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*Air service accord with EU signed *​
KARACHI (February 02 2008): Pakistan has signed a horizontal Air Service Agreement (ASA) with European Union to bring the bilateral ASAs between 20 EU- member States and Pakistan in legal conformity with EC law.

According to Civil Aviation Authority (CAA) here on Friday, this accord was linked during a visit by high level delegation of Pakistan led by Additional Secretary Ministry of Defence, Major General Mir Haider Ali Khan to Brussels on October 23 to 24, 2007.

By virtue of finalisation of this agreement EU- member states shall be entitled to operate to Pakistan from any other EU- member state with.whom Pakistan has a bilateral (ASA) provided it is established in the territory of the member states under the treaty establishing the European community and Pakistan has accepted its designation by that State.

Such an agreement is a milestone in the aviation history of Pakistan. This ASA would encourage European carriers, particularly the low cost carriers to avail the un-utilised traffic rights of European States to/ from Pakistan and more air links between Pakistan and Europe thus alleviating the problems of travelling passengers.

Following the horizontal agreement the government of United Kingdom of Great Britain and Northern Ireland became very keen to initial a revised ASA with Pakistan and to reverse the traffic rights.

The meeting was held in Manchester on January 24 to 25, 2008. Pakistan's delegation was led by Additional Secretary, Ministry of Defence, Major General Mir Haider Ali Khan. The revised ASA was initiated with UK along with a very liberal Memorandum of Understanding (MoU).

The new arrangement permits the designated airlines of UK and Pakistan to operate any number of flights between any points in Pakistan and UK on point to point basis. Pakistani airlines already enjoy unlimited traffic rights on intermediate points between Pakistan and UK and similar rights are available to UK designated carriers on point beyond Pakistan.

Currently PIA and Airblue of Pakistan are operating to UK while Shaheen Air International is starting twice weekly services from Islamabad to Leeds, Bradford, UK from February 07, 2008 and would increase the frequencies to four weekly services by March 2008.

British Airways of UK has recently increased its flights to Islamabad from 3 to 6 weekly services. Another carrier of UK, that is, UK international, started twice weekly service from Nottingham to Islamabad via Sharjah in October 2007 but due to operational reason have temporarily suspended their operations from December 23, 2007.

They would resume their operations from February 19, 2008. A number of other carriers have also been designated by UK to operate passenger and cargo services to Pakistan namely: British Midland International (BMI), European Air Charter and Astreaus. Efforts are also underway by (CAA) Pakistan to attract Virgin Atlantic of UK to operate to Pakistan.

The revised agreements between EU and UK have been a great breakthrough and would surely bring about a lot of comfort for passengers travelling to Europe and UK. The aviation industry of Pakistan, under the dynamic leadership and liberalised aviation policy would flourish in the days to come resulting in a healthy growth of traffic in the competitive environment.

Business Recorder [Pakistan's First Financial Daily]


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*Shaheen Air to fly non-stop to Bradford ​* 
Tuesday, February 05, 2008

MIRPUR (AJK): Shaheen Air International formally announced here to launch its first direct flight between Islamabad and the twin cities of Bradford/Leeds from February 7, this year.

Saheen Air would offer extra facilities to the Kashmiri people flying on Islamabad Bradford route including free transportation from Islamabad Airport to Mirpur, Shaheen Air Executive Director Khalid Bashir Anjum speaking to business community, Travel Agents, media persons here on Saturday evening. The ceremony was held in coordination with Bukhari Travels and other associates of Shaheen Air International.

Executive Director Bukhari Travels Sayed Farkhan Hussain Bukhari earlier apprised the media persons of the salient features of the first-ever scheduled flight by any private airline for Bradford city of UK from Islamabad. 

Khalid Bashir Anjum said, Shaheen Air, founded in 1993, will be the first Pakistani private airline to start long haul operations to the United Kingdom. He said that his organization is now preparing for flights for the United States and Canada from Islamabad.

Shaheen Air to fly non-stop to Bradford


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*WTO report on port congestion rejected ​* 
KARACHI (February 05 2008): Pakistan has outrightly rejected the World Trade Organisation's report on congestion at its major ports terming the statement as flawed and absolutely wrong.

"This is absolutely wrong as the report contains many flaws. At the moment we have zero congestion at our ports," said Ports and Shipping Minister Dr Fahim-ud-Din Ansari in an exclusive interview with Business Recorder here on Monday.

The federal minister said by port congestion we mean non-availability of berths with many vessels standing at outer anchorage waiting for occupying a berth inside the port, but, "let me tell you this is the story of early 1980s not now".

"We maximally take 24 to 36 hours in clearing a ship at our ports while internationally stipulated time for clearing a vessel stands to be 32 hours," said the minister.

A remarkable improvement in "connectivity network", connecting the logistic system with ports, had enabled the two under fire ports, Karachi Port and Port Qasim, to achieve a distinguished position in cargo handling, he added. "KPT built MT Khan Road, Korangi Interchange, flyovers and underpasses to improve the connectivity network as a developed road infrastructure is essential for quick cargo transportation," the minister maintained.

He, however, acknowledged that congestion was prevailing at the warehouse level inside the ports to certain extent. "As storage charges are high outside our businessmen keep their imported commodities in warehouses inside the ports where they have to pay comparatively less charges."

When asked if the WTO remarks on cumbersome customs clearance procedures in Pakistan had carried some weightage, he replied in affirmative. "I agree that flaws still are there in our custom clearance procedures," Fahim said.

Dr Fahim said the government had recently introduced "CARE" to ensure a quick and corruption-free clearance system at ports without contacting the Apprising Officer.

"By and large CARE has brought improvement in the custom clearance system and nominal irregularities just 1-2 percent are there which would soon be curtailed," said the federal minister.

On "poor internal transport systems", the minister said transportation was a "big headache" for the government which had no cure for the problem at the moment. "We really need to do something about it," acknowledged the minister.

When asked for commenting on a World Bank's proposal on investing at least one percent of its Gross Domestic Product (GDP) over the next 5-7 years to modernise its transport and logistics sectors he said: "I propose at least three percent because movements, sea, road and air are greatly vital for growth and prosperity of a country".

On WTO's calculation that a 'poor transport performance' was costing the poverty-stricken country around 4-6 percent of its GDP annually the minister said he was rather seeing "incalculable" losses to the country.

Rejecting the WTO's contention on "high entry charges at Karachi Port" the minister said that the Karachi Port Trust had recently reduced port charges. "KPT has one of the most competitive port charges in the region," claimed the federal minister.

On port charges at terminals like Pakistan International Container Terminal, Karachi International Container Terminal, Qasim International Container Terminal etc the minister said they were independent and determine their rates in the same manner. "We give them just technical support and they pay for that," he added.

Dr Fahim was also like-minded to the international trade body on an "inefficient and costly Dock Labour Board". "KDLB is cancer of the port," he added.

He said the concept of "doing and practising business" had changed world over so why Pakistan should stick to the old fashions. "In new doctrines there is no concept of KDLB," said the federal minister.

To a query on Gwadar Port, Dr Fahim said geo-strategic position of the under-construction port was so vital that it would make Pakistan a gateway to the landlocked countries of Central Asia. He said Gwadar Port would be fully operational after completion of the connectivity network and since it was located on the "mouth of Strait of Hormuz" Pakistan would be able to control entire traffic in the Gulf.

Last month, a WTO report had criticised Pakistan for what it said persistent congestion, inefficient stevedoring practices, cumbersome customs clearance procedures, uncompetitive charges at its major ports and poor internal transportation system terming the problems as "drags" on competitiveness of the country.

Business Recorder [Pakistan's First Financial Daily]


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*Bus service: Pak-Afghan body meets in Kabul today ​* 
ISLAMABAD (February 05 2008): Pakistan and Afghanistan are likely to start two new bus services from Islamabad to Kabul and Peshawar to Kabul. The proposal will be discussed in two-day meeting of Pak-Afghan Committee on Transport, to be held on Tuesday (January 5) in Kabul for starting the bus service, sources told Business Recorder on Monday.

They said a five-member delegation, headed by Joint Secretary, Ministry of Communications, Firdaus Alam, left here for Kabul on Monday to attend the meeting. Other members of the delegation include Joint Secretary, Ministry of Tourism, and acting Managing Director of Pakistan Tourism Development Corporation (PTDC) Najeeb Akbar Awan; Director (India), Ministry of Foreign Affairs, Khiam Akbar; Deputy Secretary, Ministry of Interior, Javed Habib, and Director, Transport, Transport Department, NWFP, Sajid Khan.

Sources said the committee would also discuss the issue of Quetta and Kandhar bus service as the agreement between the two countries had already been signed about two years ago, but could not be implemented due to security reasons.

They said the proposal to run five more busses from each side on Peshawar-Jalalabad route would also be discussed in the meeting, while Pakistan was running six buses on the route and eight were being plied by Afghanistan.

Business Recorder [Pakistan's First Financial Daily]


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*Railways imports 300 coaches worth $25 million ​*
ISLAMABAD (February 12 2008): Pakistan Railways (PR) will purchase 300 new freight coaches at a cost of $25 million to improve its service, an official at the Ministry of Railways said Monday. The ministry has approved the PC-1 of the project that would be executed shortly.

All the carriages would be imported and the project will meet the urgent demand of Pakistan Railways, the official said. He said the new coaches would help generate more revenue and would make the freight service faster than ever. "The new freight coaches would run at a speed of up to 100 kilometres per hour which is highest ever speed in the country", he said.

Though the Pakistan Railways is engaged in manufacturing the 1300 wagons at local level yet it has decided to import 300 boggies as well, the official said. He said out of 1300 wagons, more or less 1,000 have already been manufactured while the rest would be completed soon.

The official said that these wagons are being manufactured in the Pakistan Railways workshop in Lahore. "He said Pakistan Railways has decided to purchase more freight coaches in order to overcome the loss it faced in the riots followed by the assassination of PPP chairperson Benazir Bhutto.

Pakistan Railways has also urged the private national and international companies to avail the Open Track Policy initiated by PR which allows private parties to operate their own rolling stock while paying track access charges to the Railways, the official maintained.

Business Recorder [Pakistan's First Financial Daily]


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*Plan to develop inland water transport system along Indus River ​* 
ISLAMABAD (February 13 2008): Pakistan is planning to develop inland water transport system along the Indus River that would become part of National Trade Corridor Improvement Programme. Planning Commission Member, Infrastructure, Dr Asad Ali Shah said this in a meeting of NTC task force.

An official close to the meeting told Business Recorder, this idea is at nascent stage and further work will be done on it, which is believed to be breakthrough in the government efforts to reduce the cost of doing business. The water channel would revolutionise the transport system in the country.

Further work including pre-feasibility and feasibility studies would be done by acquiring the services of reputed firm. After these studies, the proposal would be forwarded to the PC.

The issue of provision of water for the transport channel would also be discussed in the pre-feasibility study, said the official. Some circles are of the view that water availability for the channel could be ensured only after the construction of large dams especially the Kalabagh dam.

The task force established a committee on Public-Private Partnership for NTC to accelerate private sector investment in infrastructure along the corridor. The committee will also consider the development of IWTS, the official said. It was agreed that for implementation of the recently approved trucking policy, the Ministry of Industries, Production & Special Initiatives will establish a management unit for the policy implementation.

The task force reviewed the implementation status of various activities under NTC strategic framework. Launched in August 2005, the strategic framework for the National Trade Corridor Implementation Program (NTCIP) has been developed based on a holistic and integrated approach.

The project is aimed at reducing the cost of doing business, improve competitiveness and enhance productivity by improving the trade and transport logistics chain in Pakistan and bringing it up to the international standards.

Chairing a meeting to review the progress of NTC, the PC deputy chairman planning Dr Akram Sheikh said that this was a major strategic initiative to improve the logistics chain throughout the country and to interlink it with all three adjoining regions of South Asia, Central Asia and West Asia. Since inception, substantial progress has been made, undoubtedly NTCIP is moving in the right direction, he said. The task force reviewed the overall progress of all the sectors including; Ports & Shipping, Railways, Trucking, Trade Facilitation, Highways, Aviation & Air Transport, Energy Logistics & Cool Chain.

The operations of KPT, Port Qasim and Gwadar Port were reviewed to enhance their efficiency. The meeting was informed that four "Express Freight Trains" and one wheat special train running daily from Karachi to Lahore has been started. Door-to-door cargo services have been introduced from Faisalabad to Lahore, which will be expanded further to major cities.

At Jamroud construction of multimodal-agency border terminal, including access roads and other facilities has been completed. The Chaman and Taftan border terminals are under construction, while the cargo handling operation at Wagha border terminal will start shortly.

Business Recorder [Pakistan's First Financial Daily]


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*Soomro for better port, terminal facilities ​*
KARACHI (February 13 2008): Caretaker Prime Minister Mohammedmian Soomro on Tuesday underlined the need for better port and terminal facilities to handle imports and exports cargo of Pakistan. He was talking to a delegation of Engro Vopak Terminal Ltd led by its CEO Sheikh Imran-ul-Haq at Governor House here.

Sindh Governor Dr Ishrat-ul-Ibad Khan, Caretaker Chief Minister former justice Abdul Qadir Halepota and Federal Finance Minister Dr Salman Shah were also present on the occasion.

He said the government's economic policies were designed to promote expansion of business and committed to facilitating investment opportunities. "We would welcome investment," he added. Earlier, CEO Engro Vopak said faster economic growth and opportunities as well as strategic environment of Pakistan coupled with trained manpower were a great attraction for foreign investors.

He said his company wanted to expand its business in Pakistan, specially its chemical business, besides making an investment in the energy sector.

Another delegation of Karachi Stock Exchange (KSE), led by Shaukat Tareen, also held a meeting with the Prime Minister at Governor House and urged him for early promulgation of Demutualisation Ordinance to facilitate streamlining of business activities of stock exchanges in the country.

They also appreciated the decision of the Federal Cabinet to approve the Ordinance. Speaking on the occasion the Caretaker Prime Minister said that the government always intended to develop policies, which promoted economic activities and helped create opportunities for further expansion of trade and business.

This strategy, he said, would help open avenues for employment and development. Lauding the performance of Karachi Stock Exchange (KSE), the Prime Minister said it is one of the best performing markets of the world.

Business Recorder [Pakistan's First Financial Daily]


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*Shaheen Air ​*
ISLAMABAD (February 14 2008): Shaheen Air International has launched its first direct flights between Leeds Bradford and Pakistan. Flights operate twice weekly to Islamabad.

Business Recorder [Pakistan's First Financial Daily]


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*PIA's Sialkot-Kuwait flight from February 15 *​ 
SIALKOT (February 14 2008): Pakistan International Airline (PIA) has finalised all necessary rearrangements to start first international and direct flight from Sialkot to Kuwait on February 15th (Friday). The flight will take-off at 10 am and will be back at 7 pm to Sialkot, disclosed Station Manager Sialkot PIA Khalid Hameed.

He said that Senior Vice President Sales, PIA Salah-ud-Din would be chief guest on the occasion. Talking to Business Recorder here Wednesday he said PIA would operate three flights weekly for Kuwait from Sialkot adding that Kuwait-bound flights are fully booked which is a healthy omen that National Airline has taken the lead in operating its international flights operation from Sialkot International Airport. The PIA Station Manger further stated that PIA is already successfully operating three flights weekly on Sialkot-Karachi route.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Sialkot-Lahore motorway: Rs 40 billion mega project to be executed by June ​* 
SIALKOT (February 14 2008): The construction work on mega project of Sialkot-Lahore motorway costing Rs 40 billion would be carried out by June next disclosed Project Director Sialkot-Lahore motorway Engineer Zubair Emran Khawaja.

Addressing the members of Sialkot Chamber of Commerce and Industry (SCCI) here on Wednesday he added that the project would be accomplished in three years stipulated period. Highlighting the salient features of the mega project he disclosed that eight interchanges, three industrial zones, five flyovers and Swedish and German universities would also developed along with the motorway.

Each industrial zone would spread over 3000 acres of land, which would help further accelerate the pace of trade and commerce activities and generate wide employment opportunities he said. Engineer Zubair said that the completion of the motorway would not only reduce the travelling distance but also open new era of development prosperity.

The Swedish University and industrial zone would be developed on Sambrial track of the motorway he added. He informed the house that Electronic Toll Collection (ETC) system would also be introduced on the motorway adding that ETC is the technology that allows for electronic payment of highway toll.

In addition, ETC allows the toll facility operator to improve customer service and satisfaction by speeding their trip through the toll plaza, removing the need for the customer to step, fumble for change or roll down their window he told the house.

The Project Director on this occasion had given the detailed presentation with the help of projector. Speaking on the occasion President SCCI Dr Khurram Anwar Khawaja, on behalf the business community of Sialkot, appreciated the efforts of the government for undertaking the mega project of Sialkot-Lahore motorway.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*President launches Korakorum Highway expansion project ​* 
ISLAMABAD: February 16, 2008: President Pervez Musharraf on Saturday hoped Pakistan will have a stable, democratically elected government that will ensure success in the war against extremism and terrorism and sustain economic growth.

Launching the over Rs 30 billion (US 510 million) expansion and widening project of the Karakoram Highway here the President said the country will be going for the general election, day after tomorrow.

"I am very positive that this will be free, fair, transparent and positive. It has to be that way," he said.

The President expressed the hope that as a result "Inshallah we will have a stable, democratically elected government ... we will ensure successful fight against terrorism and extremism and we will ensure sustaining the economic growth of Pakistan."

The President dwelt at length on the several mega projects related to communication and infrastructure development dotting across the country that were aimed at creating the National Trade Corridor, creating linkages with neighbouring countries.


----------



## Neo

*New aviation policy wont offer open sky incentives​*
* To offer foreign airlines their required destinations only on reciprocal basis​
ISLAMABAD: National Aviation Policy 2008 would not offer open sky policy incentives to the foreign airlines and would be based on reciprocal treatment with the countries, seeking access to their required destination in Pakistan, official sources told Daily Times here on Monday. 

However, government is expected to offer open sky policy incentives to the airlines desirous of operating their flights from Gawadar International Airport, to be constructed in Gawadar, Balochistan province. Open sky policy incentive would be limited to Gawadar International Airport to attract more foreign airlines at this important trade hub for its success, the official informed.

Foreign airlines were demanding the government to offer open sky policy incentive, operating rights to any destination without any condition, under the new aviation policy and any policy minus this incentive would not have much to offer to foreign carriers. 

Caretaker federal cabinet had, in recent past, expressed desire to arrange special presentation on new aviation policy, however, later it asked the authorities concerned to finalize the policy and prepare summery for formal approval by the federal cabinet of the next elected government, the official added. 

Lufthansa had already started its operations from Lahore and other airlines, including UK International, GMG Bangladesh, British Midland, Virgin Atlantic and China International, had shown interest in operating flights from Pakistan. Growth in the aviation industry of the country is nearly 7 percent, which is more than 4 percent of the Asia Pacific region.

The official informed that the new policy would not be based on open sky policy as this incentive could create trouble for the national carrier. New policy would offer foreign airlines their required destination on the reciprocal basis. The foreign countries seeking access to new destinations in Pakistan would be required to offer similar access to Pakistans national carrier its required destinations, the official said. Access to foreign airlines on reciprocal basis is in practice in many countries and this method is proved successful and beneficial for foreign airlines as well as national airline, informed the official. 

He further informed that wet leases would not be allowed as this creates trouble for the airlines especially new ones and the authorities concerned. All the airlines desirous to operate in Pakistan would be required to purchase their own aircrafts so that their operations are carried out on sustainable basis, said the official. The official informed that recently inaugurated Sialkot International Airport would be used for cargo handling purposes only for the time being. National Aviation Policy is the part of the governments endeavors to facilitate flows of trade and passenger traffic in the country according to international standards. During the consultation process on the proposed policy representatives from donor agencies had desired that the all Pakistani registered airlines should be treated equally without preference for Pakistan International Airlines (PIA). Private airlines should not be forced to operate on secondary routes, being non-commercial activities; these should be covered under Public Service Obligations and should be subsidised to ensure commercial viability, the official explained. 

They also proposed restructuring of Civil Aviation Authority (CAA) and suggested that CAA should also include a separate regulatory and air traffic control body.

Preparation of National Aviation Policy is an important initiative with significant emphasis on Pakistans aviation sector in the years ahead and creating a conducive environment for aviation industry to flourish. They were of the opinion that proposed National Aviation Policy should be revised to include multi-model integration with railways, roads and port sectors and peripheral development. 

Ground services at airports, peripheral services and infrastructure development should be included in the infrastructure development of the proposed policy. The objective of the proposed National Aviation Policy should cover performance indicators, access, mobility, connectivity (both domestic and international) and tax perspective. 

Representatives from donor agencies had also pointed out that proposed NAP does not provide the strategic direction and targets to be achieved in longer terms. The objective, to contain predatory pricing and unfair competition both international and domestically through a system of filling of tariffs should be deleted. Operations of wet leased foreign registered aircrafts by Pakistani airlines led to compromise on aviation safety, security and employment opportunities should either be properly justified or deleted from the proposed NAP. 

It focuses on rules and regulations for example being the section on licences and certificates. The paid up capital for regular public transport licences shall be Rs 250 million. A suggestion was also made to study international airline/aviation policies including Gulf countries, United Kingdom, India, France and Austria. Human Resource Development (HRD) component should be included in the proposed policy.

Daily Times - Leading News Resource of Pakistan


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## Neo

*Airblue chief to push for liberal aviation policy ​* 
Wednesday, February 20, 2008

KARACHI: Shahid Khaqan Abbasi, CEO of private airline Airblue, who won a National Assembly seat from Rawalpindi in parliamentary elections, believes the country has to review its protectionist aviation policy to foster growth in the sector.

Talking to The News via phone on Tuesday, a day after he emerged victorious for Pakistan Muslim League Nawaz (PML-N), he said deregulation of the airspace is the way forward for the aviation business.

Protectionism can only go so far, he said referring to the governments policy of keeping a tight noose around foreign airlines operating in Pakistan. Too much protectionism breeds inefficiency, he added.

Abbasi, whose private airline has had a fantastic take-off after it was launched in 2004, says the policy of allotting international routes to foreign carriers on reciprocal basis has to be reviewed. This policy cannot be sustained as international airlines do not agree with it anymore, he said.

When asked if he will support similar deregulation on the domestic front, he said: Definitely, I will support liberalisation. It was the PML-N, which had introduced the open skies policy back in the 90s.

Indeed, liberalisation of airspace in 1993 paved the way for private airlines like Bhoja, Hajveri, Raji and Aero Asia to start operations. That marked a turning point in the monopolised aviation history of the country. However, it was short-lived.

Weak regulation allowed these airlines to borrow aircraft and crew from other carriers against wet leases. A wet lease, which is a leasing arrangement whereby one airline provides an aircraft, complete crew, maintenance and insurance to another, however, is a stopgap measure used by established carriers only in dire circumstances.

Soon the airlines ran into trouble with their aircraft leases and as the financial liabilities mounted one by one, these carriers went off air, closing the chapter of open skies policy. In contrast, Airblue, which became the first private airline to go beyond Middle East and land in England last June, is operating with dry-leased aircraft and has been banking on innovation like e-ticketing to entice passengers.

Asked if he agreed with the assertion of Pakistan International Airlines (PIA) Chairman, Zaffar A Khan, that the national flag carrier should be privatised, he said there was no choice other than that.

Airblue chief to push for liberal aviation policy


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## Neo

*PIA terminates contract with Swissport *​ 
Saturday, February 23, 2008

KARACHI: Pakistan International Airlines (PIA) ended its controversial Technical Ground Services (TGS) agreement with Swissport International on Friday after it failed to comply with terms of the contract. 

The Switzerland-based company was awarded the tender for taking care of cabin cleaning and related services in October 2006 at over 100 per cent the cost PIA incurred in its in-house arrangement. 

Going by the year 2005 figure of schedule flights from Islamabad, Lahore and Peshawar, the annual cleaning charges as per tender submitted by Swissport was Rs43 million against PIAs in-house cleaning cost of Rs19.4 million, documents available with The News revealed. 

There was an additional expense of Rs1.1 million to Rs1.3 million on account of Hajj, Umra and extra section flights. 

Besides contracted staff including engineering assistants and sanitation workers became surplus at Islamabad and Lahore. Director Commercial Audit (PIAC Circle) Karachi, Qazi Zafar Abbas, had even initiated an investigation in December 2006 and asked PIA to submit records of copies of agreement signed with Swissport and past-five year balance sheet of TGS department. 

All flights including handling of foreign carriers by PIA was being done under the management supervision with Swissport. However, a month back PIA management-led by Chairman Zaffar A Khan issued a 30-day notice to Swissport to invest in the equipment as per terms of the agreement, which will be terminated otherwise. 

Finally on Friday Swissport International CEO Fernand Stauffer announced termination of the contract. A PIA official said the development will help boost morale of the employees who feared that outsourcing of operations would cost them their jobs. SH

PIA terminates contract with Swissport


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## mujahideen

Several energy projects underway to enhance power production: Musharraf

ISLAMABAD: President Pervez Musharraf has said several short, mid and long term energy projects are continuing to enhance power production adding these projects will help meet growing need of energy in the country. 
He said this while talking to regional managing director of British Company International power in presidential camp office Wednesday. Caretaker minister for water and power Tariq Hameed and senior officers of ministry for water and power were also present on the occasion. 

President told energy crisis was being overcome speedily and a good number of projects were underway to increase power production. They include hydel, thermal, nuclear and alternative resources, he added. I am fully hopeful that these projects will be completed in time. We are working on many projects for cheap power generation, he indicated. 

He reiterated conducive environment prevailed for investment in the country adding government had announced special packages for investors. Energy demand had increased due to sustained industrial development in the country during the last five years, he pointed out. 

Regional managing director of British company international power expressed satisfaction over excellent environment for investment in Pakistan saying his company was interested in making more investment in energy projects. Overall economic policy framework being pursued by the government of Pakistan with reference to fastest economic growth is very encouraging, he remarked. My company is not worried over fluctuating situation of economy in the country and will bring more investment in short, mid and long term power projects, he told. 

Pakistan News Service - PakTribune


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## mujahideen

Senate Body demands restructuring of Women Industry

ISLAMABAD: While expressing its concern over the plight of women in the country, Senate Standing Committee on Women Development has recommended complete restructuring and revamping of the Ministry of Women Development to make it more effective with regard to improving the lot of women who form nearly 51 per cent of the population in the country. 
The Standing Committee met at the Parliament House on Monday under the Chairpersonship of Senator Tahira Latif, has also called for provision of the necessary financial and human resources to the Ministry to enable it contribute more substantially towards betterment of the female strata in the society especially their social, educational improvement and economic empowerment. 

Senators Mrs. Razina Alam Khan, Mrs. Semeen Siddiqui, Mrs. Fauzia Fakhar-uz-Zaman, Mrs. Rukhsana Zuberi, Ms. Rubina Rauf and Nawab Muhammad Ayaz Khan Jogezai besides the Secretary Ministry of Women Development and senior officials of the Ministry attended the meeting. 

We cannot afford to keep half of the population away from the mainstream and expect to move ahead on the ladder of development, it observed. 

The Committee resented delays in provision of development funds due to lengthy official procedures and underlined the need for doing away with the time-consuming and archaic rules and procedures. 

It also directed the Ministry to expedite the recruitment process to fill the vacant posts in the Ministry with a view to overcoming staff shortage. 

The meeting further observed that the Government as well as the society must show zero tolerance for violence against women, which remains the bane of society and haunts the womenfolk hindering fuller development of their physical and mental capabilities. 

It stressed the need for greater skill development for opening more avenues of gainful employment for women, in addition to establishing more centers for distressed women particularly in the rural areas of the country. 

Earlier, the meeting was given a presentation on Planning and Monitoring Cell being maintained by the Ministry of Women Development for implementation, monitoring and evaluation of existing Women Development Projects of the Ministry including Tawana Pakistan and Planning & Implementation of new plans and projects on prioritized areas of National Plan of Action and other women development related issues. 

It was informed that the Ministry was striving for promotion of collaboration with provincial women development departments, private and corporate sector for implementation of programmed of women development. 

Later, the members of the Committee also visited the Shelter Home for Women in Distress located in Sector H-8/1, Islamabad to obtain first hand knowledge of its activities particularly with regard to providing relief to the distressed women. 

The Coordinator / In-Charge of the Center informed the Committee that it is making efforts to create greater public awareness on the issue of violence against women, providing free legal assistance in addition to accommodation, vocational training and psychological counseling to the needy women. 

She said that the lawyers on their panel pursue the cases in courts free of charge. The members of the Committee commended the useful work being done by the Center and called upon the rich and affluent sections of the society to donate generously towards this cause. They also said people be encouraged to give Zakat and alms to the Center to enable it overcome its financial difficulties. 

Pakistan News Service - PakTribune


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## mujahideen

Lahore, Karachi to become megacities by 2025: UN

_SPECIAL CORRESPONDENT_

UNITED NATIONS - Lahore and Karachi are expected to join worlds megacities group by 2025, according to a UN report which predicts that half of the worlds 6.7 billion people are expected to live in urban areas by the end of this year.
The report, called 2007 Revision of World Urbanization Prospects, provides the official UN estimates and projections of the urban, rural and city populations of all countries in the world up to 2050. The latest data contained in the report confirms that urbanization is growing everywhere, Hania Zlotnik, Director of the Population Division of the Department of Economic and Social Affairs (DESA), told a news briefing at which the report was released.
Referring to mega cities - those with more than 10 million inhabitants - which today accounted for about 9 per cent of the worlds urban population. While it was estimated that the number of mega cities would increase to 27 by 2025, she pointed out that these centres would likely absorb only 12 per cent of the worlds urban population growth. Smaller cities were likely to grow more quickly.
Tokyo metropolis - with 36 million people in 2007 - was by far the most populous urban centre, and expected to retain that stature into 2025, she said. 
That mega city accounted for 42 per cent of Japans urban population, making it the only primary city - or one that holds more than 40 per cent of a countrys population - among the worlds mega cities. 
The fastest population growth rates would likely be found in Africa, in cities such as Lagos, Nigeria and Kinshasa, the capital of the Democratic Republic of the Congo, which both could become mega cities in the coming decades. Dhaka, Bangladesh, and the Pakistani cities of Lahore and Karachi were also prime candidates, she added.
The report said the world population is expected to increase by 2.5 billion by 2050, to 9.2 billion. By that time, urban population is expected to rise from nearly 3.4 billion in 2008 to 6.4 billion in 2050. 
The urban regions thus will absorb most of the worlds population increase in the next four decades while drawing on some of the rural population as well. 
There will be 600 million fewer inhabitants in rural areas by 2050, the report said.
The projected urban population figure of 6.4 billion dollars represented a drop from last years anticipation of 8.4 billion people in urban areas because experts believe the birth rates will decline more rapidly than they originally thought. 
In many countries, natural increase of population (births minus deaths) accounts for 60 per cent or more of urban population growth, the report said. 
It said that countries with policies that facilitate the reduction of fertility by making it possible for couples to have the number of children they desire can actually help stabilize urban growth. 
As with the general population growth, most of urban increases will take place in developing and less developed countries as opposed to developed nations, in which 74 per cent of population already live in big cities and towns.
By 2050, 54 per cent of population in Asia and 19 per cent in Africa will live in cities. Africa and Asia still have large rural populations, but not Latin America and the Caribbean, where 78 per cent of the population already lives in cities. 

The Nation


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## Neo

*Lahore-Gujranwala highway to be completed in March ​*
ISLAMABAD (March 01 2008): Secretary Communication Sajid Hussain Chatta along with Chairman National Highway Authority (NHA) on Friday inspected the rehabilitation of Lahore-Gujranwala being upgraded to six lanes. The project being executed with the assistance of World Bank (WB) would take the cost of Rs 5 billion.

The project consists of 50km road on either side, 24 pedestrian underpasses, five underpasses for traffic, one fly-over, 46 bridges, 48 culverts, 35km service road with fencing and 35km R.C.C drain to protect the road in heavy monsoon and maintain the smooth flow of traffic.

Sajid Hussain took serious notice of the slow pace of the project and instructed that the project must be completed as per the stipulated time. It was decided in a high level meeting chaired by Secretary Communication and Chairman NHA to oversee the progress of the project.

In the meeting the contractor M/s Hussain Cotex and Consultant M/s SMEC assured that the section from Chand Ka Killa to Kamoke will be completed by the end of March this year and the section from Kamoke to Muridke excluding municipal area will be completed by the end of May 2008. Apart from this, Secretary Communication and Chairman NHA jointly decided to assign a National Highway and Motorway Police contingent to co-ordinate with the contractor and facilitate the smooth flow of traffic. It was also decided to visit the same project soon.

It was noted that the contractor is carrying out his best efforts using the latest equipment's in the present environment where there is high traffic on the contrary of contractor facing difficulty in procuring, availability of bitumen, steel and cement in the country.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Govt approves Rs 7.834bn for rehabilitation of railway​*
ISLAMABAD: The Pakistan Railways has demanded the government to provide financial assistance for rehabilitation of its infrastructure and systems damaged after December 27 riots and the government has approved Rs 7.834 billion for this purpose, official sources said here Friday. 

Pakistan Railwayss infrastructure was heavily damaged during the turbulent protests erupted in the entire country after the tragic assassination of PPP Chairperson Benazir Bhutto in Rawalpindi on 27th December 2007. 

The entire country went into the grip of shock and awe with violent public reaction, which crippled the country, especially the province of Sindh, where the protesting mobs smashed Railways installations, ransacked station buildings, set ablaze locomotives, coaches, track machines/cranes and other important infrastructure. 

There was total lawlessness as hundreds of people went on the rampage after Benazirs assassination. These attacks on the Railways property had far reaching implications. In Karachi and Sukkur divisions, 65 stations were either set ablaze or damaged, 23 locomotive were burnt while 12 were damaged, 139 coaches of passenger trains and 2 track machines were also set ablaze while a number of cranes were burnt and damaged. 

The havoc completely paralysed the Railways system from Karachi to Sadiqabad for five consecutive days (Dec 27 to 31, 2007). The train operation, was, however, restored on 31-12-2007 at a modest level with hectic efforts. 

The major set back was to the signaling infrastructure as the apparatus, internal cabling and connections etc. at the stations were completely burnt. This caused serious disturbance to normal operation as a number of stations are still closed. The train operation is being managed by extending the block sections and reception/dispatch of trains being worked on paper lane clear (PLC) in the absence of normal signaling, which is causing a detention of almost four hours to each express train.

The assets damaged and lost have to be re-built as their absence will have a collateral effect, affecting even those that continue to function. The asset destruction would affect the targets for both passenger and freight sectors during the current financial year and cause decline in the long-term growth potential of the Railways. It is therefore, extremely vital that the damages assets are rehabilitated as quickly as possible to ensure normal train operations in Sukkur and Karachi divisions thus eliminating detentions and improve punctuality, the sources added. 

Pakistan Railways owns 524 diesel and 19 electric locomotives, out of which 315 diesel electric locomotives and 19 electric locomotives have already outlived their normal economic life by the end of December 2007. The annual requirement of induction of new locomotives is approximately 20 whereas actual induction of new locomotives during the last 10 years has only been 86, which has resulted in shortage of locomotives for working passenger and freight trains. The position has further deteriorated as 15 locomotives have completely been burnt as a result of the riots, which erupted on December 27. 

In total 65 station buildings were damaged besides a number service buildings and structure; 24 stations on Karachi Railway division were damaged, out of which 12 were set on fire and damaged on Karachi-Tando Adam mainline section, 6 stations on Kotri-Dadu section, 3 on Hyderabad-Mirpurkhas section and 3 stations on Hyderabad-Badin section. 

The girder bridges were also damaged by setting wooden bridge timbers on fire, besides dismantling track at many places. In total 36 bridges were damaged in both Karachi and Sukkur divisions out of which 22 were damaged in Karachi division and 14 in Sukkur division including replacement of 2,733 wooden sleepers, crossing and bridge timbers. 

The telecommunication equipment provided in the ASM offices such as control telephone, RAD phone, V-wireless telephone, VHF radio sets including power supplies, batteries, stabilizers, circuit breakers, wooden racks, coaxial cables etc. were totally burnt on mainline between Mirpur Mathelo-Rohri-Nawab Shah-Hyderabad-Karachi and on branch line between Kotri-Dadu-Larkana-Habib Kot-Jacobabad-Kashmor colony. Resultantly 53 VHF radios complete with accessories, 54 control phones, 37 V-wireless telephones, 77 batteries, 70 telephone sets, 7 diesel generators, 7 telegraphic consoles, 55 wooden racks and 2 public address system complete with accessories were burnt. 

The burnt situation has compelled Pakistan Raiways to scale down its operations keeping in view the resource constraints. PR has curtailed 19 trains (16 passenger and 3 freight trains) on main line corridor and branch lines. The trains are suffering four hours extra time between Karachi and Khanpur resulting in extra fuel consumption and inconvenience to the traveling public.

Daily Times - Leading News Resource of Pakistan


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## Neo

*WB asks Pakistan to upgrade infrastructure ​*
** Report says 6,000MW power shortage expected by 2010
* Expert says fundamentals of economy still strong​*
By Khalid Hasan

WASHINGTON: A report by the World Bank last month points out that Pakistan suffers from a dearth of infrastructure in the water, irrigation, power, and transport sectors and needs to invest around $1 billion per year in reservoirs and related infrastructure over the next five years. 

In the energy sector, the country will face severe power shortages of around 6,000 megawatts by 2010. Similarly, inefficiencies in the transport sector cost the economy between 4-5 percent of GDP each year. 

To overcome these constraints, Pakistan has tripled its annual infrastructure investment from an average of $2.5 billion to $7.3 billion, but increased involvement of the private sector will be needed to meet the gaps.

According to Dinar Standard, an online business strategy publication devoted to business in the Muslim world, &#8220;Overall, the horizon for prosperity and growth seems lustrous for Pakistan. 

The general sentiment is undimmed and is driving the masses to believe that change for a better economy and a better future is within their sight. Despite being considered a politically unstable terrain, Pakistan as an economy still has a lot to offer and is rightfully called by Mark Matthews of Merrill Lynch as &#8216;the greatest information-arbitrage opportunity in the world&#8217;.&#8221;

Fundamentals: Monis Rehman, a Pakistani entrepreneur, is quoted as saying that there has been recent cash infusion from Silicon Valley investors. Speaking to Dinar Standard he said, &#8220;Investments continue to happen because the fundamentals are strong. Pakistan has a population of 160 million consumers. Seventy million of them now have mobile phones. Over $1 billion has been invested in broadband and WiMAX infrastructure. 

While there is a lot to be concerned about, there is also a lot to look forward to.&#8221; Commenting on the viability of its new media venture in Pakistan, he said, &#8220;Pakistan has a rapidly growing 7.5 percent Internet penetration rate compared to India&#8217;s 4.5 percent. None of the top 10 sites viewed from within Pakistan are local, which suggests a huge opportunity for creating local content. Online advertising is also at its infancy and with the current market dynamics, is poised for strong growth.&#8221;

Daily Times - Leading News Resource of Pakistan


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## Neo

*Gwadar port: government asked to give top priority to uplift of road network ​* 
ISLAMABAD (March 11 2008): The Senate body on Shipping and Ports has asked the government to accord highest priority to the development of road networks at Gwadar port. The meeting was held in the Parliament building on Monday, with Gulshan Saeed in the chair.

It may be mentioned here that a report published in the Monday issue of Business Recorder suggested that with the development of communication facilities, Gwadar would become economic and communication hub in this region.

Pakistan desired to develop Gwadar as a port city because of its strategic position athwart the tip of Hurmuz straits and Persian Gulf. Gwadar has profound maritime importance as a full-fledged deep water to provide alternate routes to the Gulf ports as well as vital link to China and Central Asian Republics (CAR).

Reacting sharply to delays in construction of three road networks, linking Gwadar port with Turbat, Pangjur, Basima, Ratodero, Surab, Kalat, Mastung and Quetta, as well as main RCD Highway, the Committee wished speedy completion of the roads which constituted important plank in the development of Gwadar port as major economic hub and to facilitate exports in the region. The three road systems were yet to be completed and remained on the planning board. It said. The committee reviewed the difficulty in Gwadar becoming operational because it lacked good quality, all-weather dependable road linkages.

In his briefing, the National Highway Authority (NHA) Chairman explained the value of road connectivity for transit trade between Pakistan, Afghanistan, Central Asian Republics and China. He named the three road linkages as Gwadar-Turbat-Hoshab-Panjgur-Nag-Basima-Surab (N-85): This road linked Gwadar to N-25 RCD Highway at Surab. The NHA has awarded contract for upgradation of this federalised road to the Frontier Works Organisation (FWO).

Basima-Khuzdar-Ratodero: This road will connect Gwadar to N-85 & N-25- RCD Highway at Khuzdar and N-55 Indus Highway at Ratodero. Basima-Surab-Kalat-Mastung-Quetta-Chamman: The road linked Gwadar to Quetta and Chaman through N-25 RCD Highway.

The Committee desired the NHA to plan construction of roads in a way that it could withstand floods, especially flash floods. In addition, the committee desired the government to make provision of fresh drinking water and also link Gwadar with the national electricity grid, an important consideration for the port to emerge as economic hub.

The Senate Committee also received presentation on development of Rs 100 billion Gwadar-Quetta rail-link project and took a strong exception to Balochistan government violating the Federal government ban on sale of state lands.

The prized land, owned by Railways, was allegedly sold to private housing societies by a few unscrupulous elements in the provincial administration at throwaway prices. The housing societies, to whom the land was sold, were now demanding millions of rupees for construction of container yards from the railways department.

The Senate Committee has summoned the provincial land revenue officials along with the relevant records in the next meeting. The committee also decided to set-up a three-member sub-committee to sort out issues of land acquisition and its security, in view of inhospitable terrain. This body would liaise with National Highway Authority and the dwellers.

Dr Abdul Malik was asked to head the committee with Dr Ismail Buledi and Mir Israrullah Khan as members. Lieutenant General Javed Ashraf (retd), Mir Israrullah Khan, Dr Muhammad Ismail Buledi, Saadia Abbasi, Kalsoom Parveen and Dr Abdul Malik attended the Committee.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Plan to develop urban transport system chalked out ​* 
KARACHI (March 13 2008): The federal government has chalked out a plan to develop the urban transport system and infrastructure with a view to providing fast, reliable, safe, and affordable services to the urban population.

At present, the transport service and infrastructure had not kept pace with the growing demands of urban population, sources in Sindh regional transport department told Business Recorder on Tuesday.

Lacks of proper management of transportation setup, urban areas are suffering from poor road condition, accidents, high-level maintenance cost of public transport, traffic congestion and air pollution, they said. Urban population is compelled to travel in overcrowded and unreliable public transport, besides poorly regulating it by concerned departments, they maintained.

Despite the rapid increase in private vehicles, which are being flooded on roads with more than 50 percent increasing ratio every year, no effective policy has been evolved yet to develop the proper road infrastructure for catering to the need of growing population, they said.

Answering a query, they said the government had designed a comprehensive and effective plan to overwhelm the need of more transport infrastructure with modern maintenance system, besides inviting the private sector to participate in it.

"Condition will not be changed unless the private sector will co-ordinate with government concerned departments in making comprehensive and high quality urban transportation system to cater to the need of growing demand of urban areas", they said.

Accordance to jointly surveyed report by the National Highway Authority (NHA) and the World Bank (WB) that 47 percent of national highways have been deteriorated and only 28 percent of the network is in good condition.

"Due to insufficiency of highways, 30 to 35 percent of agri produce is being spoiled before marketing, which causes huge loss to national exchequer, besides growing inflation due to its shortage, hence, the government has decided to convert inferior roads into high quality roads, they said.

They said the government is striving to generate funds for maintenance and up-gradation of facilities such as traffic signals, roads, sidewalks, intersections, parking spaces and drains aimed to provide better transport infrastructure to urban population.They said the authority concerned is pondering the proposal for restoring mass transit system in different cities, including Rawalpindi, Islamabad, Lahore, Gujranwala, Sialkot, Faisalbad, and Karachi.

They hoped that mass transit system would be restored soon in these cities with a view to minimising the excessive burden on public transport, besides facilitating people by safe, reliable, fast and entertaining transport service.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Modern container scanner system installed at PICT *​
KARACHI (March 16 2008): The Pakistan International Container Terminal (PICT) on Saturday installed a state-of-the-art container-scanner system to comply with the directives of the Federal Board of Revenue (FBR). Federal Board of Revenue (FBR) Chairman Abdullah Yousuf opened the system in the presence of a large number of people from the shipping sector, said a press release.

The container scanner has the latest x-ray acceleration technology with the cutting edge specifications of dual view scanning ie scanning from the side and the top of the container, to give a three-dimensional image, the release said.

The scanner has 6 MeV electron beam energy for penetration of up to 340 mm thick steel. The advance specifications of the PICT scanner and cutting edge technology has made PICT second facility in the world to have installed a scanner of such high technological capability.

The purpose of the scanner, which has been manufactured by Nuctech Company Limited (China), is to provide non-intrusive customs examination which would enable Pakistan Customs to view with unparalleled clarity the contents of the goods inside the container without opening the container, said the release.

This will facilitate the trade by reducing the time and effort consumed by the conventional method of customs examination. PICT has also installed monitors at the scanner to detect any radioactive substance inside the containers. The scanner would also serve to deter any contraband and explosives, it added.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*ADB to provide $301 million for NHA projects ​* 
FAISALABAD (March 16 2008): Asian Development Bank will provide $301 million to National Highway Authority for "National Highway Development Sector Investment Programme-Project II" for improving domestic transport system serving inter-provincial traffic and selected national highways.

In an update project report, Olly Norojono ADB's Transport Economist said that the second investment programme would finance batch 2 sub-projects under National Highway Improvement Component. 

Business Recorder [Pakistan's First Financial Daily]


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## dabong1

Neo said:


> *Pakistan plans rail link on its side of Kashmir*
> 
> Saturday January 6
> 
> The Indian Railways' effort to run trains to the Kashmir valley this year has had an impact across the Line of Control, with Pakistan Railway starting feasibility studies to lay tracks from Rawalpindi to Muzaffarabad, the Capital of Occupied Kashmir (***).
> Pakistan Railway is also looking into building a 40-km link between Dina and Mirpur at the southern tip of ***. This shorter link (see map) is likely to be executed first as the Rawalpindi-Muzaffarbad line will be more difficult to build, considering the mountaneous terrain.
> 
> Mirpur is presently connected to Pakistan through the Peshawar-Lahore Grand Trunk Road. Pakistan Railway officials said that since Mirpur is fast emerging as the industrial hub of ***, having rail connectivity with the place was economically crucial.
> 
> "We are studying three or four different routes between Dina and Mirpur. Our survey began only recently and we will be completing it by April," Mohammed Ashfaq Khattak of the consultancy firm told The Indian Express over phone.
> 
> "Apart from deciding on possible routes, the feasibility study is also trying to find out if the project will be economically viable," said Malik Hayat, Rawalpindi's divisional superintendent of railways.
> 
> The railways there spent Pakistani Rs 10 lakh last year on the Dina-Mirpur feasibility study, official data show. And sources said international help and expertise may be sought at a later stage.
> 
> On the Indian side, preparations to run trains in Kashmir are at an advanced stage, with operations between Udhampur and Katra slated to begin soon. And the more significant target of bringing a train into the Valley is likely to be met sometime by March.
> 
> http://in.news.yahoo.com/070105/48/6avq5.html



Is there any update of the mirpur/dina rail link?


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## Neo

dabong1 said:


> Is there any update of the mirpur/dina rail link?



Didn´t see any reports lately, I´ll check it for you though.


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## mujahideen

India seeks link to C. Asia via Pakistan

CHANDIGARH, March 15: Advocating close cooperation between India and Central Asia, Indian External Affairs Minister Pranab Mukherjee has called for establishing a direct surface transportation route through Pakistan, Afghanistan and Iraq.

Our ongoing Composite Dialogue with Pakistan has been yielding good results. We are hopeful that a direct road link will be established between India and Central Asian nations, he said in his inaugural address at a seminar on Saturday.

The minister termed the absence of direct surface link as a major problem in the development of economic and trade relations between India and the Central Asia and said the recent steps taken by Kazakhstan, Turkmenistan and Russia to increase road and rail connectivity could be linked to further development of the International North South Transport Corridor.PPI

India seeks link to C. Asia via Pakistan -DAWN - Top Stories; March 16, 2008


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## dabong1

Neo said:


> Didn´t see any reports lately, I´ll check it for you though.




Cheers....i have been looking but have not found any further info.


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## Neo

*PIA grounds jumbos to cut fuel bill *​ 
*Sends home 80 flight engineers​*
Tuesday, March 18, 2008

KARACHI: Pakistan International Airlines (PIA) on Monday grounded its aircraft fleet of Boeing-747 to slash a rising fuel bill as financially crippled national carrier struggles to cope with the surge in global oil prices.

In wake of the decision to stop flying six B-747 300 and two B-747 combi aircraft, the management also retrenched 80 flight engineers who were able to get a stay on the move from Sindh High Court (SHC) the same day. 

Flight Engineers National Association (FENA) strongly reacted to what it said managements overnight decision to send 80 permanent employees home in complete disregard of rules. If PIA has permanently grounded the B 747 fleet then its pilots, co pilots, cabin crew and technicians should also have been fired, a FENA spokesman told The News. 

According to him, the decision has been taken in haste and is discriminatory in the sense that never before permanent employees have been sacked abruptly without any notice. He said: Every time a regular employee who is not guilty of any misappropriation is removed, he is benefited with a scheme like golden handshake.

However, a PIA spokesman said all the employees have been retrenched with full retirement benefits plus 40 months of salaries for those who are under 60 years of age. He said the fuel guzzling aircraft have been grounded because cost of fuel consumed by B 747 is $11,000 per hour whereas more advanced B-777 cost $7,000 per hour. He was not immediately able to confirm if the decision to ground the aircraft was permanent but clarified that pilots, crewmembers and technicians assigned with the B 747 fleet could be used for other aircraft. 

The 433-seater B 747 300 and 240-seater B 747 200 have served PIA for Hajj and Umrah operations, the FENA spokesman said, and that has helped cut a lot of cost for the national carrier.

In 2006 the airline spent $43 million to hire aircraft on wet lease to ferry the pilgrims while it spent only $22 million in the following year when the B-747 300 fleet was used, he added. PIA will have to bear burden of $50million if it decides to wet-lease aircraft for 2008 season, he said adding that other large capacity B 777 could not be used as that fleet was engaged in flights to Europe. 

The management of the state-owned airline has taken some vital decision including reshuffling of senior officials since the new Managing Director Aslam R Khan took office a couple of weeks back. Notwithstanding the efficacy, some PIA employees feel that these decisions should not have been taken at a time when a new government was about to take oath. 

PIA grounds jumbos to cut fuel bill


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## Neo

*Court stops PIA from forcing flight engineers to retire *​ 
Tuesday, March 18, 2008

KARACHI: The Sindh High Court restrained on Monday the Pakistan International Airlines from taking any adverse action against flight engineers of Boeing-747 till further orders.

The interim order came in a Rs800-million lawsuit for injunction filed by Azizul Haq Suharwardy and others against PIAs proposed forced retirement scheme for B-747 flight engineers.

Plaintiff counsel Khalid Javed contended that the proposed scheme of the defendant regarding forced retirement of flight engineers, earmarked to serve B-747, is highly arbitrary and discriminatory.

He submitted that the policy of retirement is based on mala fide, as the PIA administration propose to retire these persons and then re-employ them on contract basis just to deprive them of their service benefits. He further said PIAs March 1 board of directors meeting had no item on the agenda regarding grounding scheme, but on instance of Deputy Managing Director of Quaid-e-Azam airport, such a proposed scheme was moved to protect the interest of some officials, including him.

The counsel said that in order to continue flight operation of eight B-747 PIA would require about eight sets of crew per aircraft and consequently 8 flight engineers per B-747 would also be required.

Plaintiffs seeking court injunction prayed for the court to direct PIA to provide full retirement benefits to affected employees, as offered by its earlier officers. The counsel also sought interim injunction restraining defendants from taking any adverse action against them.

SHCs single bench comprising Justice Khawaja Naveed Ahmed, after hearing the preliminary arguments of counsel, observed the contentions in plaintiffs required consideration. Granting interim injunction the court restrained PIA authorities from taking any adverse action against plaintiffs and other flight engineers and also issued notices to PIA, Deputy Managing Director, Senior Vice President of Quaid-e-Azam International Airport (HR) and others for March 24, 2008.

Court stops PIA from forcing flight engineers to retire


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## Neo

*Mass Transit Plan: Jica to conduct study on Karachi FTDF from March 21 *​ 
KARACHI (March 18 2008): A Japanese agency would launch 'scientific study' on Future Traffic Demand Forecast (FTDF) of Karachi to help the city planners establish an effective strategy and implementation plan of mass transportation for the metropolis.

The Japan International Cooperation Agency (Jica) would start the survey within next few days as part of its technical assistance to the City District Government Karachi (CDGK), sources in Traffic & Communication Department of the CDGK told Business Recorder on Monday.

"A team of Jica experts is due in Pakistan on March 19 to conduct a scientific study on the city's future traffic demand," said Malik Zaheer-ul-Islam, director-general, Karachi Mass Transit Cell (KMTC).

It is worth mentioning here that according to a notification issued by the City Nazim on Monday that Malik Zaheer-ul-Islam is likely to take additional charge of the T&C Department as an executive district officer (EDO) within a day or so to look after affairs of the department.

He said the Agency would start work from March 21 and would submit its report by the end of May or early June this year. The DG KMTC also clarified that Jica would conduct the study free of cost.

The Agency would estimate traffic of the metropolis, where the ever-present traffic problems like prolonged traffic jams, inefficient traffic police, illegal parkings, use of pressure horns, smoke emitting and unfit vehicles, entry of heavy vehicles in the city, etc have rendered roads of the city more vulnerable to fatal accidents on daily basis.

According to sources, Jica would conduct estimation of the city's traffic by 'computer modeling' on the basis of "person trip study", which the Agency had conducted in 2005-06.

They said the survey would also contribute to capacity development and CDGK's planning for regulating the transport sector. To conduct a safe and proper study the Agency has sought "full and strong support" from the city district government in terms of expertise, coordination with traffic policy and necessary authority for fieldwork, sources said.

By coordinating CDGK in the survey Jica was aiming to enable the former to learn how to conduct the study, sources said. "Jica was putting technical transfer programme in the study for Pakistani side expecting that they (CDGK) can learn the series of work, including computer modeling through this study period and to conduct the same survey by themselves in future," added the sources.

Business Recorder [Pakistan's First Financial Daily]


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## asaad-ul-islam

woah! that is what karachi really needs right now!karachi needs to be cleaned up, it needs better infrastructure, better organization. we need to bring back the "City of Lights" to its former glory. 

roads are just built anywhere, as well as property and sometimes property is built illegaly on top of main streets. 

personally, i wasn't impressed with the new road system when i went to karachi this summer. i wish they could have a better laid-out plan for roads. instead of just building them when needed. It's just one big mess, a giant hairball. 

I also hope we can get a large subway system, it would rid us of the traffic problem. any news on plans for a subway transit system?


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## Neo

*PIA to float tender for B-747 sale ​* 
Thursday, March 20, 2008

KARACHI: The Pakistan International Airlines (PIA) would soon float a tender to sell the first tranche of its eight Boeing 747, The News learnt on Wednesday. The aircraft were grounded earlier this week due to rising fuel bill.

One aircraft each from B-747-300 and B-747-200 series have been put on sale through a tender that will appear in a London-based magazine in a couple of days. The national flag carrier did not need to cut down on any of its current routes due to sale of these aircraft, a spokesman for the airline said, insisting that the remaining 34 aircraft were enough to carry out full operation.

However, aviation experts are susceptible about the decision since PIA had used the B-747 aircraft for Hajj and Umrah operations. The PIA says it could lease aircraft for the purpose.Leasing out planes would not be easy for PIA, remarked an executive of one of the domestic carriers. It has become an expensive deal these days.

According to PIA, fuel cost of B-747 comes to around $11,000 per hour as compared to $7,000 of B-777 and it was important to take this difference into consideration when PIA is running into losses. The decision to ground the aircraft has also led to forced retirement of some 80 flight engineers, who have acquired a stay from the Sindh High Court (SHC).

PIA to float tender for B-747 sale


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## Neo

*International experts to be hired for Lahore Rapid Mass Transit project ​* 
FAISALABAD (March 27 2008): A team of two international specialists will be recruited for preparing the Lahore Rapid Mass Transit System, said official sources. They said that the team would work in co-ordination with all interested parties of the Punjab Government and the major development agencies active in the sector.

The team will assist the Punjab Government to review and comment on due diligence report, financial model, regulatory arrangements, transaction structure, draft agreements, pre-qualification and bidding documents, and evaluation report; and facilitate in negotiating with the bidders.

Sources stated that the expected impact of the Project will be the initiation of a long-term transport system investment program that will enable Lahore to make a greater contribution to national development, while improving in the quality of life for the city residents, including the poor. The project outcome will be an investment project design and financing agreed upon by the Government and ADB.

The ADB assistance provides a key intervention of the long-term partnership between ADB and Pakistan for the development of Lahore's transport sector. This project also supports a recruitment of a transaction advisor to help formulate, structure, and take to the market a public-private partnership (PPP) for the first priority line of a proposed rapid mass transit system (RMTS) in Lahore.

The transaction advisory work will also be carried out in three phases: preparation, implementation, and negotiation. During the preparation phase, the transaction advisor will carry out technical and legal due diligence, design the detailed structure and terms of the transaction, market the transaction with potential investors, and develop pre-qualification and bidding documents as well as the necessary contracts.

During the implementation stage, the transaction advisor will assist the Government in obtaining any approvals and permits required, pre-qualifying potential investors, carrying out the bidding process, evaluating proposals, awarding the contract and holding negotiations, with lenders.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Lufthansa stops flights to Karachi ​* 
Sunday, March 30, 2008

KARACHI: German airline Lufthansa on Saturday, announced that it was taking out Karachi from its network, just five months after flights were resumed to Frankfurt.

All Lufthansa flights from Frankfurt to Karachi are cancelled due to lack of capacity, the airline said in a communiquÈ. Lufthansa will endeavour to get Karachi on the Lufthansa route map again, as soon as possible.

The airline has also changed its schedule of Lahore-Frankfurt flights, which will now fly via Muscat after a technical stop for disembarking crew.

Due to the current situation in Lahore and operational requirements of the airline, Lufthansa has to change the layover of its crew, and therefore, has to reroute its thrice-a-week flights from Frankfurt to Karachi and onto Lahore, it said, adding that re-routing of Lufthansas Pakistan flights is a precautionary measure.

The days of operation, Tuesday, Thursday and Sunday, as well as the aircraft operated, the A300-600, remain the same.

As per the new flight schedule for the Frankfurt-Lahore sector, LH658, the flight leaves Frankfurt at 10:25 and arrives at 20:40 in Lahore. The LH659 flight leaves Lahore at 21:40 and arrives at 23:30 in Muscat for a technical stop, with no possibility to disembark. The flight leaves Muscat at 01:15(+1) and arrives at 06:36 in Frankfurt. The new schedule will be implemented from March 30 until May 29.

Lufthansa passengers of Karachi flights are currently rebooked on alternative routes through Dubai and onto Karachi. Lufthansa tries to minimise inconveniences for its passengers as far as possible. Latest updates will be communicated immediately by the airline to all concerned.

The German carrier had resumed flights to Pakistan last October, after a gap of almost nine years, saying the comeback decision was based on an overwhelming potential for passenger growth. It had rolled back its operations in 1998.

Lufthansa stops flights to Karachi


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## Neo

*Railways to launch Karachi-Peshawar special cargo service ​* 
PESHAWAR (April 05 2008): Pakistan Railways is likely to run a special train from Peshawar to Karachi, at least once in a week, to ensure timely supply of export goods. A special security squad will escort the train.

Divisional Superintendent, Pakistan Railways, Abdar Khan and Assistant Traffic Manager, Dry Port, Maryam Gilani, stated this while addressing members of Sarhad Chamber of Commerce & Industry (SCCI) standing committees on railways and dry port. Zia-ul-Haq Sarhadi, who is chairman of both standing committees, presided over the meeting.

Divisional Engineer, Pakistan Railways, Chairman, All Pakistan Commercial Exporters Association (APCEA), Jamshid Khan, Imitaz Ahmed Ali, Nawaz Khan, Khairullah, Asad Bilal, Kamran Ali and Asif were among those who attended the meeting.

In his address of welcome, Zia expressed apprehensions on the PC-1 for the construction of Azakhel Dry Port, lack of facilities at Peshawar Dry Port, lack of shunting engines and shifting of the clearance of goods imported under Afghan Transit Trade (ATT) to Jamrud.

He called for restoration of Export Cargo 328 Down train service and briefed the railway officials on lack of the availability of wagons, theft of the goods brought under ATT, release of special cargo container train, abolition of the contract system of C.R.R and convening of regular meetings of the advisory committees.

Deputy Collector, Customs, Peshawar Dry Port, Arbab Qaiser assured the committee about valuation of the goods at Peshawar bringing it at par with other parts of the country.

In response to the points raised by Sarhadi, Divisional Superintendent told the committee that the PC-1 of the Azakhel Dry Port would be sent to chairman for approval to get nod for the launching of the construction work on the project.

He said that facilities at Peshawar Dryport would be made possible only after release of funds by Trade Development Authority Pakistan (TDAP). However, he said, it would require more funds.

The railway officials assured the resolution of some other problems and initiating of steps in this regard. Sarhadi congratulated Mahtab Ahmad Khan Abbasi on assuming the responsibilities of Federal Minister for Railways and expressed hope that he would utilise his abilities for bringing improvement in the performance of the ministry and giving relief to the business community.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*CDGK plans to introduce 500 CNG buses​*
KARACHI: The City District Government Karachi (CDGK) has initiated a project to introduce CNG buses by July. The Karachi Mass Transit Cell (KMTC) has called local and foreign firms to be a part of the effort, Daily Times learnt on Sunday.

The CNG bus project is backed by the federal government and gives a high mark-up to investors, after a total investment of Rs 4 billion.

City Nazim Syed Mustafa Kamal, during the last two years, promised numerous times that 5,000 CNG buses will be introduced to Karachi roads, but due to a lack of interest from the private sector, the project never took off. A number of terrorism-related incidents in the city last year disrupted law and order and dented investor confidence. 

But now the project has picked up and aims to introduce environment-friendly public transport. The number of buses has gone down from 5,000 to 2,500. In its initial phase, to start from July, the city government aims to import the first fleet of 500 CNG buses, while the remaining 2,000 will be introduced in the next five years. 

The Mass Transit Cell has identified 40 routes where the first consignment of 500 CNG buses would operate. The routes, which have been given to separate parties, are being called the green routes. They cover the whole city, from Gulshan-e-Maymar at Super Highway to Hawkesbay Scheme on Hub River Road in Gadap Town, 

Officials in the city government said that invitation from private firms, local or foreign, with experience in the supplying/manufacturing and operating industry will be finalized by the end of June and signed in the first week of July. 

The KMTC has also prepared a preliminary report on the current condition of the citys transport system, mentioning that the city of 16 million people and 1.7 million registered vehicles. About 90 percent of the workforce uses different modes of public transport, which includes 12,000 vehicles on 254 routes with a considerable overlap, said the report. 

The report also mentioned that most of the buses consist of an ageing fleet in which only 17 percent of the vehicles (3,118) are less than four years old, while 41.7 percent (7,652) are between 5 to 15 years old, 22.5 percent (4,129) between 15 to 24 years old, 18.6 percent (3,417) between 25 to 45 years old and 0.2 percent (34) are between 45 to 65 years old. All these buses contribute considerably to air pollution as well.

Daily Times - Leading News Resource of Pakistan


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## Neo

*Pakistan and Sri Lanka agree to increase flights: MoU signed ​* 
RAWALPINDI (April 10 2008): Pakistan and Sri Lanka have agreed to liberalise their existing Air Services Agreement (ASA) and decided to increase the weekly frequencies allowed to the airlines of each country threefold from five to fourteen.

In this connection, a Memorandum of Understanding (MoU) was singed between the two countries at a meeting held at the Ministry of Defence here on Wednesday.

Pakistan was represented by Additional Secretary-I, Ministry of Defence, Major General Mir Haider Ali Khan at the signing ceremony whereas the Sri Lankan delegation was headed by DT P Collure, Secretary Ministry of Ports and Aviation of Sri Lanka.

The two sides held talks in a cordial and friendly atmosphere and agreed to increase the weekly frequencies allowed to the airlines of each country threefold.

Under the agreement, the designated airlines of Sri Lanka would also operate to Islamabad and Gwadar in addition to Karachi and Lahore. In reciprocity, the designated airlines of Pakistan can also operate the agreed services from any point in Pakistan to Colombo. The designated airlines of both the countries have also been allowed to operate any number of cargo flights with full traffic rights between the two countries.

The two sides also agreed to include new articles on 'Aviation Security' and 'Aviation Safety' in the ASA. The article on designation of airlines was also amended to allow multiple airlines operation. In addition to PIA, Pakistan designated Shaheen Air International and Air Blue to utilise the agreed traffic rights whereas Sri Lankan designated Mihin Lanka (Pvt) Ltd and Expo Aviation (Pvt) Ltd to operate passenger and cargo services respectively, in addition to Sri Lankan Airlines.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Keti Bunder: dredging cost and connectivity ​* 
(April 13 2008): The newly elected Prime Minister of Pakistan in his opening speech promised to give nation a new Port Keti Bunder along-with 100 days priority agenda. It is a welcome sign for all Pakistanis in particular for seafaring community and Maritime professionals.

Port Qasim was also conceived in the 70's and it is likely to turn into Industrial Hub Port by 2020.Whilst, Port Qasim is helping the nation but it is seriously effected by silting due to be in the proximity of Indus Delta and South West Monsoon. The annual maintenance dredging cost runs into 1 billion rupees to maintain 11.0 meter draft.

The plans are on way to deepen the port to 14 meter, costing about $140 million. Present annual dredging BOQ is 5 million cubic meter and when dredged further, it is estimated that annual maintenance dredging will be around 10 mill cu meter thus costing in excess of 2-3 billions rupees to maintain the desired depth.

When Port Qasim was conceived ie returning to old medieval site of Indus River Port Dewal, which was conquered by Mohammad in Qasim ( A History of Indus by J.C. Powell, A Voyage on Indus by Alexander Burnes 1831).

The initial planners and hydrographers at the time of conceiving the port faltered and could not rightly estimate the annual maintenance dredging quantum and cost which was far low comparing as of today's 5 per $ per cubic meter and cutter dredging cost of $20/- per cubic meter.

Furthermore channel is 40 km with sharp bends restricting night navigation, when compared to Karachi and Gwadar of 3.5 km, where vessel can berth/sail 24/7/365. Time is money for ships and ship owners of today and economy of scale is the key to profitability, thus deep drafts are required. Non availability of night navigation for deep draft and long channels are considered as dis-advantage in port planning.

It is presumed that planners of Keti Bunder must have studied the geological history of Indus Delta, coastal hydraulic survey, currents, littoral drift, hydraulic model studies, coastal geomorphology, Alexander Burnes surveys of river Indus and earthquake epic centre and geologic structure of indus basin whilst carrying out hydrographic survey, wave patterns, forming of breakers in monsoon and the coast being low and not discernable except at close quarters for the safety of navigation.

Whilst referring to Indus Delta Map Keti bunder is approachable via Hajamaro creek, which runs beyond Ghora Bari. Since no hydrographic and other studies are available which were carried out in last decade, it could be any body's guess that how much dredging will be required to meet today's generation vessels of 14/16 meter draft and thereafter quantum of annual maintenance dredging to maintain the channel.

It is presumed that a proper feasibility by competent hydragraphers and port consultants be carried out evaluating dredging and maintenance cost bearing in mind high cost at port Qasim. The other aspect to be borne in mind is excellent hinter land connectivity before port is built.

We must learn from the experience of Gwadar Port, which is handicapped due to non existent hinterland connectivity. It is imperative that hard core professionals having experience of Port development may be engaged and this assignment of national importance may not be left at the mercy of generalist having no track of maritime faculty.

We must also learn from the experience of dredging cost at Port Qasim and that of our neighbours ie India, Bangladesh and Thailand etc. The Hoogly river has silted Calcutta Port thus forcing development of new port of Haldia at the mouth of Hoogly, Bombay offshore port, Colombo south port, Chittagong offshore port at Juldia, so has been the case in Bangkok, where new Port has been developed at the mouth of the river to cater deep draft vessels of 4th and fifth generation.

The next generation vessels are post panamax needing 16/18 meter depth and futuristic vision is Suezmax, Malaca Max of 21 meter, thus in all probability a site which is prone to heavy siltation being in Indus Delta costing billions in dredging and thereafter incurring annual maintenance dredging cost of billions, may only be considered after hydrographic surveys and financial feasibility to cater deep draft vessels of future.

We, must have more ports to develop the region and to cater our futuristic needs. Port development is a science and all issues have to be addressed professionally to cater the futuristic development in the maritime industry.

India has 12 major ports and 185 small ports and they are investing $15 billion in port sector and $12 Billions in developing quadruple triangle ie logistics connecting all major city's to cater 1 billion tons of Impo/Expo by 2010.

It is a welcome announcement, however a proper latest feasibility be carried out bearing in mind that it may take 10 years to port be operational from the drawing board, thus ships calling after a decade and their specification be bench marked to make a success story for our future generation.

Since a policy statement has been made thus same must be duly supported with credible latest studies, thus it is expected that the democratic government will make all plans public and will consider the views of local expertise available in selection of site.

Needless to mention as per historical fact the Indus River had many ports in the past ie Patala, Debal, Lahori Bunder, Shah Bunder, Gharo, Keti Bunder, Vikar, Daragi and Bambhore, these ports were destroyed due to the ravages of Indus River or by the change of its course, thus we must learn from the history and a very scientific and cautious approach is recommended in selecting the site of new port.

Meantime, we must concentrate to make new commercial port Gwadur fully operational and optimum utilisation of Karachi and Port Qasim. It is equally important to do traffic fore casting and our needs for 25/50 years.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*$956 million US funds for infrastructure likely​*
WASHINGTON, April 18: The United States intends to provide $956 million to Pakistan between 2008 and 2011 as part of a comprehensive plan to expand its engagement with the country from military to civilian sectors.

In its latest report, the US Government Accountability Office noted that if approved, this fund will be used for development, security, capacity building and infrastructure.

The need to enhance US engagement in Pakistan followed a realisation in Washington that the military alone cannot rid the country of terrorism.

The GAO noted that terrorism had spread beyond the tribal areas and was now threatening the entire country. The terrorist assassination of former prime minister Benazir Bhutto could encourage terrorists to strike the Pakistani establishment anywhere in the country  radical elements now have the potential to undermine Pakistan itself, the report warned.

The GAO assessment of terrorism threats in Pakistan covers the period from July 2007 through April 2008 and strongly backs the US Embassys recommendation that Washington needs to develop a multifaceted approach to deal with terrorism in Pakistan.

The new approach, if approved by the administration and key US government agencies, would constitute the US governments first attempt to focus more attention on key elements other than military ones to address US counterterrorism goals in Pakistan. These elements include development assistance and public diplomacy, as well as counterinsurgency training, which have not been part of the previous military approach.

The new strategy also calls for greater levels of direct US planning, implementation, coordination and oversight.

But the report noted that this new approach does not yet constitute a comprehensive plan, and all of the agencies individual efforts have not been fully approved in Washington.

The report also pointed out that such efforts suffer from funding shortfalls, and support by the recently elected government of Pakistan is also uncertain.

The GAO reported that the United State is also supporting Pakistans Sustainable Development Plan for the Fata. Pakistans plan is a nine-year, $2 billion effort to provide economic development, extend the influence of the Pakistani government and establish security in the Fata.

To assist this effort, the Pentagon undertook a counterinsurgency assessment in the Fata and began developing its Security Development Plan. At the same time, USAID provided technical assistance to the Pakistani government to help formalise its Sustainable Development Plan, as well as to plan USAID-development activities in the Fata.

All development efforts in the Fata will be directly planned, implemented, coordinated and monitored by the US Embassy in Pakistan. As of September 2007, the embassy planned to spend $187.6 million on this initial effort using fiscal year 2007 funds.

Since 2002, the United States relied principally on the military to address US national security goals in Pakistan.

Of the over $10.5 billion that the United States has provided to Pakistan from 2002 through 2007, the GAO identified about $5.8 billion specifically for the Fata and border regions; about 96 per cent of this funding reimbursed Pakistan for military operations in the Fata and the border region.

There have been limited efforts, however, to address other underlying causes of terrorism in the Fata by providing development assistance or by addressing the Fatas political needs, the GAO noted.

$956 million US funds for infrastructure likely -DAWN - Top Stories; April 19, 2008


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## Neo

*Italy seeks JVs in infrastructure projects ​* 
Wednesday, April 23, 2008

ISLAMABAD: Pakistan offers investment opportunities and policies that attract foreign investors, the Italian trade team head said in a meeting with the officials of Infrastructure Project Development Facility (Ministry of Finance), and Investment Division & Board of Investment.

Ambassador of Italy Vinchenzo Parti led the delegation comprising Gerado Carante Diplomatic Counselor ANCE, Bernadino Chiaia Vice Rector Politecnico di Torino, Dr. Gastone Guerrini Guerrini Company, Dr Alberto Regis Cuerrini Pivato Company, Shamsher Alam GM Guerrini Privato Company, and Dr Michele Bulgaro of Verona Expo.

Ambassador of Italy, Vinchenzo Prati said that Italy wants to invest in hydropower generation, railways, roads and infrastructure projects in Pakistan in collaboration with the local companies.

Ahmed Waqar, Secretary Investment Division & Board of Investment welcomed the construction and development industry leaders from Italy and said that in past Italian construction and development firms have been very active in Pakistan, particularly in the water energy infrastructure projects. 

Pakistan would again welcome the Italian private sector and have them proactively participate in infrastructure projects in Pakistan.

IPDF Chief Executive Officer Aijaz Ahmad briefed the delegation on the Public Private Partnership framework and the policies for foreign investments in the countrys infrastructure development. He said that presently the IPDF has identified 44 projects worth around $1.4 billion and is focusing on identified projects in fields of airports, seaports, railways, bridges, roads, mass transit system, municipal services and hydropower projects.

Italy seeks JVs in infrastructure projects


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## Neo

*Lufthansa to fly from Lahore soon ​* 
Wednesday, April 23, 2008

LAHORE: The establishment of a democratic set-up has sent a very positive signal to foreign investors and service providers who have now started visiting Pakistan again. The Lahore Chamber of Commerce and Industry is being regularly visited by foreign investors to get information about the possibility of investment and joint ventures.

Taking cue from the growing interest of foreigners, international passenger and goods carrier Lufthansa Airlines has decided to resume its operations from Lahore very soon.

Lufthansa Airlines Country Manager Tobias Ernst disclosed this while talking to LCCI Acting President Mian Muzaffar Ali at the Lahore Chamber on Tuesday.

Ernst said Lufthansas resumption of operations would help open up new investment avenues for Pakistan, adding Pakistan was the sixth largest country of the world in terms of population so it had a huge potential for any airline. 

Speaking on the occasion, LCCI Acting President Mian Muzaffar Ali termed Lufthansas decision a step in the right and desired direction. He said Pakistans growing economy, its strategic location as a regional hub and a principal gateway to the Central Asian Republics, its large consumer market, abundant natural resources and liberal and friendly investment policies offered immense opportunities to foreign investors.

He said Lahore as a gateway to India would witness booming business activity as the political government settled down, adding Lufthansa would reap the benefits after resuming its operations in Lahore.

Lufthansa to fly from Lahore soon


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## mounty

^^^^

good news


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## Neo

*ADB pledges $6 million for Lahore rapid mass transit system ​*
FAISALABAD (April 29 2008): Asian Development Bank will provide six million dollars from the Asian Development Fund for Lahore rapid mass transit system, while the Punjab government will provide 1.5 million dollars from its resources to launch the second phase of the project, which will be completed and commissioned by December.

According to official sources, the ADB has agreed to provide 150,000 dollars from its Technical Assistance Special Fund to launch the first phase of Lahore rapid mass transit system, which will be completed in July. The ADB sources mentioned that the project, on completion, would improve the Labourites quality of life.

The first phase of the project include project design and financing agreed upon by the Pakistan government and the ADB, detailed structure and terms of the transaction, pre-qualification and bidding documents for transaction, contract award, and negotiations with the lenders.

The ADB sources said that the expected impact of the first phase would be the initiation of a long-term transport system investment programme that would enable Lahore to make a greater contribution to national development. The ADB sources explained that the transaction advisory work would be carried out in the following three phases - preparation, implementation, and negotiation.

During the preparation phase, the transaction advisor would carry out technical and legal aspects, design the detailed structure and terms of the transaction market the transaction with potential investors and develop pre-qualification and bidding documents as well as the necessary contracts.

During the implementation stage, the transaction advisor would assist the government in obtaining any approvals and permits required, pre-qualifying potential investors, carrying out the bidding process, evaluating proposals, awarding the contract and holding negotiations, with the lenders. During the negotiation, the transaction advisor would support the government in winning the bidder to reach financial closure, official sources said.

Business Recorder [Pakistan's First Financial Daily]


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## khanz

they have been saying about this lahore mass transit system for years and nothing is done pakistan is too slow when it comes to these things hope they get it moving already.


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## Neo

*'$100 billion needed for infrastructure-related projects' ​* 
ISLAMABAD (May 06 2008): Pakistan needs around $100 billion for meeting infrastructure-related challenges, said Ijaz Ahmed Khan, CEO of Infrastructure Project Development Facility (IPDF), an agency working under Finance Ministry to look for public-private partnership in infrastructure development.

The country needs $22 billion for multipurpose water reservoirs, $20 billion for throw forward of infrastructure projects, $10 billion for maintenance of available resources, $18 billion for energy projects, $16 billion for transport and communication, $4 billion for urban mass transit (Karachi and Lahore metro), $2.5 billion for municipal services and $4 to 5 billion for health and education, physical planning etc, he said.

He was speaking at a workshop on public-private partnership (PPP) and municipal services, organised by IPDF here on Monday. The World Bank infrastructure specialist, Mihaly Kopanyi, said that Pakistan would have to spend 5 to 10 billion dollars to improve supply of drinking water, sanitation and solid waste management in cities. "This is a huge amount, and the government can manage it to a large extent by involving private sector in the development projects," he added.

"Our bank is ready to provide financing, but it will be the private sector investment, which will bail out the government to give better services in urban centers." He said that the WB was working with Pakistani authorities to devise institutional mechanism to improve infrastructure in five major urban centres of Punjab including Lahore, Gujranwala, Multan, Rawalpindi and Faisalabad, with a financial package of $300 million. The institutional mechanism will be put in place by September, 2008.

He said that on the basis of his research done in selected districts of Punjab no reliable data was available to analyse the provision of water, sanitation and solid waste management standards. He criticised the PC-1 exercise, saying that it did not provide complete details about the project.

Ghafoor Mirza, adviser to ministry of finance, said that the government realised the need to fill gaps between the demand and supply in infrastructure projects by involving the private sector.

He said that the government had established IPDF to develop a comprehensive public-private partnership (PPP) program, an important economic reform policy tool, for generating growth and closing gaps between the supply and demand of infrastructure requirements of the country. The main focus of the program is to financially assist and promote sustainable and viable projects by using the potential market forces that deliver critical goods and services to the people at affordable prices, he added.

Earlier, the World Bank's Operations Advisor, Said Al-Hasby, highlighted the importance of public-private partnerships as an integral reform policy tool to fund future infrastructure investment in the country.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Karachi Port ready to accommodate deep-draft vessels ​* 
KARACHI (May 09 2008): Karachi Port is poised to accommodate deep-draft vessels, over 12-meter, from next month, Business Recorder learnt on Thursday. As an "opening" the Karachi Port Trust (KPT) is all set to arrange safe docking for a 275-meter long container vessel of 13.6-meter summer draft at Karachi Port on Friday evening for the first time in its ship handling history.

"Arrival of M/v Hyundai Admiral will actually be an opening and deep-draft vessels of over 12 meter draft would start coming at Karachi Port from next month," sources said.

Arrival and berthing of the mammoth ship at Karachi Port is important because the issue of safe docking of a huge vessel, M/v POS Glory, of 76,508dwt and 14-meter draft carrying at least 72,000 metric tonnes Russian wheat at the newly constructed Gwadar Port, had attracted deep apprehensions from experts of ports and shipping and media in March this year.

The Port Singapore Authority, Gwadar Port operator, after being failed to berth the big vessel at its port where draft was not meeting the required level, had to resort to lighterage to ensure safe-wharfage of the 225-meter long ship.

The Karachi Port operator would, what a shipping expert said, accomplish a great job if it succeeded in accommodating the ship, size of which would be far bigger than the one handled at Gwadar Port almost two months ago. Huge vessel would arrive at the newly constructed Berth No-3 of Karachi International Container Terminal (KICT) at around 6:00 pm on Friday, said official sources in KICT.

"The ship has a capacity to carry 4,400 TEUs (twenty-equivalent-units) and will have a dead-weight-tonnage of 61,152," said an official in United Marine Agencies (Pvt) Ltd, which is agent for Hyundai Merchant Marine Co Ltd. Korea, owner of "M/v Hyundai Admiral".

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Road network termed source of economic uplift ​*
ISLAMABAD (May 09 2008): Member of National Highway Authority (Operations) Brigadier Shahid Majid (Retd) has termed the road network a fundamental source of economic uplift and national integrity. Establishment of National Trade Corridor (NTC) will pave the way for regional trade connectivity, provincial harmony and all round development of the country.

He was apprising the participants of 88th National Management Course at NHA HQ here on Thursday, says a press release. Rector National School of Public Policy Lieutenant General Javed Hassan (Retd), Chairman NHA Abdul Waheed Khan and the senior officers of the Authority were also present.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*'KCR system to be revived by 2011' ​*
ISLAMABAD (May 13 2008): Pakistan Railways (PR) has decided to revive Karachi Circular Railway System (KCR) by 2011, an official of the Ministry of Railways said here. The official said that Karachi Urban Transport Corporation (KUTC) would be incharge of the project being undertaken with the assistance of Japanese company JICA, which he added would make feasibility study of the project.

The Government of Japan would provide a soft loan of 872 million dollar, which would be payable in 40 years. The project would be executed in three years on Japanese and European style. The 50 km KCR will have 21 underpasses and overhead bridges. The official said, around seven lakh passengers of 23 different stations of the city would get benefit from the project daily.

He said that under the project 246 trains would ply in the city adding that each train had the capacity of carrying 1,236 passengers. "The track for these trains will be of international standard and they will be available at each terminal after three minutes," he said.

The official said it had also been decided to launch this project on turnkey basis. The contractors would operate KCR initially for two years and after that it would be handed over to Pakistan Railways, he added. Besides maintenance of KCR, the contractor would be responsible to train Pakistan Railways' staff, he added. He said that the Sindh police would provide security to the foreign engineers and other related persons, deputed to commission this project.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*PIA to induct 10 aircraft in 2 years ​* 
*MD says no employee will be laid off​*
Wednesday, May 14, 2008

KARACHI: Pakistan International Airlines (PIA) would induct 10 aircraft in the next two years to enhance revenue and ward off the need to retrench employees for saving runaway costs, new Managing Director Aijaz Haroon said on Tuesday.

He also announced rescinding the decision of the previous management to ground eight B-747 aircraft due to excessive cost incurred on the particular model, saying the airline could not afford to lose capacity at present.

We know they are fuel guzzlers, he said referring to the grounded aircraft. But we have to use whatever available capacity at hand. There is no other choice.

Speaking at a press conference here at the PIA head office, he said it had not yet been decided which aircraft were to be inducted and neither could elaborate on the sources for funding the purchase or lease at a time when the airline was faced with accumulated losses of Rs42 billion.

These aircraft are in addition to seven A320-200 aircraft, which the PIA will start receiving from next year in order to replace the aging fleet of Boeing 737-300. A letter of intent to this effect has already been signed for the lease of the aircraft with Aviation Lease and Finance Company (ALAFCO) of Kuwait.

Despite having no previous experience of heading an organisation unlike his experienced predecessors, Haroon, who is a B-777 pilot, was confident he would be able to steer PIA out of financial crisis.

I have served this airline for too long, he said, recalling his own success at the central control and airport services departments. Three managing directors have failed and I dont want to fail.

He criticised the people who were suggesting the PIA to stop serving meals on domestic routes to cut costs, saying they had no aviation background. He, however, did not offer any alternative.

But Haroon minced no word in saying that the national flag carrier would not be privatised and none from common employees would be retrenched.

The PIA, suffering from annual losses exceeding Rs13 billion, sank deeper into the quagmire of financial losses during the past 15 months as the top slot of managing director saw three changes and rising fuel prices exacerbated the operational cost. With B-747 included, the airline now has a fleet of 42 aircraft. 

PIA to induct 10 aircraft in 2 years


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## Neo

*KPT achieves docking 12m draft ship ​*
KARACHI: Karachi Port Trust (KPT) has become the fist port of the country to accommodate 12 meter draft ships. KPT safely docked 4,400 TEUs container vessel MV Hyundai Admirl, 270 meter long at Karachi International Container Terminal (KICT) West Wharf.

According to a press release on Tuesday, Karachi port achieved this milestone by dredging its approach channel and berthing basin on war footings by using fleet consisting of state of art dredgers. To achieve the required draft in a short period was a challenging job and around 1.5 million cubic meters of slit was removed in a period of one month. All the dredgers worked around the clock to achieve this record target well before time.

Daily Times - Leading News Resource of Pakistan


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## Neo

*Infrastructure sector: Romanians, Malaysians keen to invest ​*
ISLAMABAD (May 14 2008): Romanian and Malaysian investors have expressed interest in investment opportunities in infrastructure sector in Pakistan under the Public Private Partnership (PPP) modality. A delegation from Romania currently visiting Pakistan has evinced interest in participating in the energy and construction industries.

The Romanian delegation also wants to evaluate potential for bolstering trade between Romania and Pakistan and opportunities in local manufacturing. Briefing the delegation the CEO Infrastructure Project Development Facility (IPDF), Aijaz Abmad outlined the government policy on PPP and the opportunities available in the infrastructure development in the country.

IPIDF also facilitated the meetings of the delegation with the relevant agencies and organisations such as Board of Investment (BOl), Private Power Infrastructure Board (PPIB), Overseas Employment Corporation and the local chamber of commerce. A Malaysian delegation led by Wan Mohamed Yaacob Bin Dato' Wan Salaidin, Executive Director, DWITASIK SDN BHD, was briefed on the investment opportunities in Pakistan at a presentation arranged at BOI.

Malaysian delegation expressed keen interest in the PPP programme in Pakistan and the opportunities available for the Malaysian investors in the country. Both the delegations appreciated the government policy of Public Private Partnership and indicated that they are keen to participate in the investment opportunities in Pakistan.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Flight information display system at Peshawar airport ​* 
Thursday, May 15, 2008

KARACHI: The Civil Aviation Authority (CAA) has installed an indigenously manufactured Flight Information Display System (FIDS) at the Peshawar Airport.

It has been developed by the CAA in collaboration with the National Engineering and Scientific Commission (NESCOM), said a CAA handout issued here on Wednesday.

The system would provide information about incoming and outgoing flights on nine plasma screens and four LED board to the passengers and visitors.

The system also has the facility of digital signage and infotainment. The digital signage would cater to the requirements of various companies to display their advertisements, where as the space for the infotainment would be utilised for the news and weather updates.

The facility of digital signage would generate reasonable amount of revenue for the CAA.

Such FIDSs have already been installed at the Karachi, Lahore and Islamabad airports by German and Italian companies.

However, to save valuable foreign exchange, the FIDS was developed, which is much cheaper than the one installed by the foreign companies.

Flight information display system at Peshawar airport


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## Neo

*Dubai Ports World building Rs 10 billion container terminal at PQ ​* 
KARACHI (May 17 2008): The Dubai Ports (DP) World is constructing a new container terminal with a draft capacity to accommodate mother ships at Port Qasim at an estimated cost of 10 billion rupees. A portion of the terminal would be financed by a banking syndicate under the Islamic finance facility.

According to sources, the international port developer was building the "QICT-II" next to Qasim International Container Terminal (QICT) under an agreement it had signed with the Port Qasim Authority in 2006.

On May 15, a tripartite banking syndicate comprising National Bank of Pakistan, Dubai Islamic Bank Pakistan Limited and Standard Chartered Bank Pakistan Limited inked a deal with the QICT, a company of DP World, for Rs 5 billion Musharika finance facility to expand its infrastructure.

DP World has started work on the project, which would be completed in three phases with the first phase to be completed by 2010, a QICT official told Business Recorder on Friday. He said the new terminal, which would be made operational by the end of the first phase in 2010, would have a capacity to handle around 0.3 million TEUs.

Currently, the cargo handling capacity of the QICT stands at 0.8 million TEUs, while total number of containers handled in the country stands at 1.8 million TEUs.

The official said the terminal would be developed on built-operate-and-transfer (BOT) basis with a 21-year transfer period adding that the second phase of construction would be completed by 2013.

The QICT official said the terminal would have a 13.5-meters draft and would have the capability to accommodate the mother vessels. However, a PQA official confirming visit of mother vessels to the new terminal, said the draft issue would be decided by the authority after undertaking capital dredging.

He recalled that a five-member delegation had visited Dubai sometimes in the second quarter of 2006 to negotiate the Rs 10 billion project with DP World. The two sides after discussing all modalities had singed an agreement in August 2006 in Islamabad.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Country to have Euro-2 standards for vehicles by 2009 ​*
ISLAMABAD (May 28 2008): The Environment Ministry has planned to introduce Euro-2 standards for vehicles in the country to make the environment cleaner and people-friendly. Sources at the Ministry said on Tuesday that petrol vehicles in the country would start observing these standards from January 2009, although Euro standards for diesel vehicles is still a far cry.

The Automotive Parts Manufacturing Association has already consented to observe Euro-2 standards from January next year, sources told APP. "Although our diesel vehicles also need to abide by Euro standards and convert to clean fuel, but certain technicalities are still hampering this process," they said. "The Association has agreed to observe Euro standards, but has demanded provision of Euro fuel for conversion of the vehicles to these standards," they added.

But the oil refineries foresee massive investment in introducing these standards, sources said, and added that Environment Minister Hamidullah Jan Afridi has convened a meeting of stakeholders to discuss this issue. The government, under its 'Clean Air Programme', has installed air pollution monitoring system in Islamabad and all provincial capitals. Centralised data is gathered daily at the laboratory set up in Islamabad.

It is also consulting with the petroleum companies to bring down sulphur use, a major air pollutant and emission of gases resulting in climate change. Measures are also on way to introduce clean fuels, regular inspection of vehicles, installation of pollution control devices at industrial units and discourage emission of GHGs.

Pollution of suspended particulate matters in the air, during recent years, has exceeded four to five times the WHO prescribed standards. "Particulate matters are the major pollutants and hazardous for the environment and human health," experts note with concern.

"Most of the time, the particulate matter density rises to more than 100 microgram per cubic metre instead of 35," say the Ministry officials managing the pollution data. Meanwhile, leakage of methane from CNG station is also one of the polluters, and a contributor to climate change. Sources said that the government is also encouraging conversion of the vehicles using petrol and diesel to compressed natural gas (CNG).

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*PIAs three B-747 aircraft resume flights​*
KARACHI: Pakistan Inter-national Airlines (PIA) has resumed operating its three jumbo B-747 fleets for domestic and Umra flights recently after standing 70-days idle, officials told Daily Times.

Officials told the three aircraft started providing passengers services on domestic and international routes during last couple of days subsequently after up-gradation, refurbishment and refresher course of its all crew members.

The remaining other two B747 aircraft are being repaired by the engineers and they will have to be inspected by airline regulator, Civil Aviation Authority (CAA), before rejoining the fleet. Officials added that these two aircraft will also be inspected during testing flights in this week and one of them might be ready to operate at the end of the week. These were grounded on March 19 by the previous management and it also terminated engineers who were designated to these aircraft. But, the new Managing Director has reverted this decision recently and restored all the aircraft and engineers as well. The national flag carrier is now spending on these aircraft by conducting testing flights and refresher courses for its crew members as per rules of CAA. 

PIAs six Boeing 747-367 have a capability to carry 433 passenger and two other Boeing 747-240 Combis have capacity of 264 passengers and 30 tonnes main deck cargo capacity. However, the new management has decided to utilise five of them for the current Umra and upcoming Hajj operation avoiding chartering aircraft from other foreign airlines this year. The B-747 aircraft are 12 to 15 year old aircraft and consume 27 percent more fuel as compare to new aircraft of B-777 series but, it has capacity to carry more passengers than B-777.

Daily Times - Leading News Resource of Pakistan


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## Neo

*Rs 107 billion to be spent on construction of six new highways, expressways: National Assembly informed ​* 
ISLAMABAD (June 05 2008): The National Assembly was informed on Wednesday that the federal government has planned to construct six new highways/expressways in addition to conversion of Karachi-Hyderabad Super Highway into motorway costing Rs 107 billion till 2013.

Through a written answer provided by the Ministry of Communication in reply to a question by MNA Mohammad Afzal Khokhar, it said that the new highways/expressways would be completed till 2013.

Faisalabad-Khanewal, E-4 will be completed at a cost of Rs 33.10 billion, Wazirabad-Pindi Bhattian, E-3 Rs 15 billion, Khanewal-Lodhran E-5 Rs 15, Peshawar-Turkham Rs 13 billion, Karachi-Hyderabad highway at Rs 8 billion, Hassanabadal-Havelian Rs 10 billion and Havelian-Mansehra highway Rs 12 billion.

Besides, the Ministry of Communication also informed the House that Rs 1000 million were allocated in PSDP 2007-08 for Indus Highway project and Rs 700 million released to NHA of which Rs 161.750 million has been incurred so far.

To a question of PPP lawmaker Yasmin Rehman, the in-charge minister for Petroleum and Natural Resources told the House that the annual requirement of petrol during 2007-08 is estimated at 1,450,000 tons, diesel 8,000,000 tons and Hi-Octane 10,000 million tons. During 2007-08, the annual domestic production of petrol is estimated at 1,328,00 tons, diesel 3,010,00 tons and Hi-Octane 10,000 tons.

The total quantity of imported petrol and diesel during 2007-08 is 122,000 tons and 490,000 tons, respectively. The Minister of Petroleum also informed the House that the provincial government of Sindh has developed six blocks in the Thar coalfield, which has the potential to cater to the coal requirement of 1000MW power plant.

To a question, the ministry opined that the total coal deposits of Pakistan are about 185 billion tons including 175.5 billion tons in Thar coalfield, Sindh. To a written question, the Ministry of Local Government and Rural Development informed the House that during 2006-08, almost Rs 3,801.464 million were allocated for 5,637 development projects under Khushhal Pakistan Programme-I scheme.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Plans afoot for linking airport with city through KCR ​*
KARACHI (June 06 2008): Plans are afoot for linking Karachi airport with the city through Karachi Circular Railway. The plan has been incorporated in the Karachi Circular Railway project, which is now being revived under Karachi Urban Transport Corporation (KUTC).

Expression of interest (EoI) has been invited for environmental impact assessment study for revival of Karachi Circular Railway project. The terms of reference for special assistance for the project formulation (SAPROF) study has been signed, study of which would be completed by end of the year.

Revalidation of Japan External Trade Organisation (Jetro) report has been completed and executive summary of the final report has been furnished by the consultants - Scott Wilson Railways of UK and Umar Munshi Associates, Karachi. In a meeting held on May 29 at the Prime Minister Secretariat, it was decided that PC-I of the project to be furnished immediately and project would be sponsored by the Ministry of Railways.

The Karachi Urban Transport Corporation (KUTC) has on its board of directors senior officials of Pakistan Railways, government Of Sindh and City District Government Karachi (CDGK). It may be mentioned here that the KCR was opened for traffic in two phases in 1964 and 1970.

The KCR originates from Drigh Road station on main line and, after crossing Sharea Faisal short of Karachi airport, it passes through populated areas of Gulistan-e-Johar, Gulshan-e-Iqbal, Liaquatabad, Nazimabad, Site, Baldia, Lyari, Kharadar, Mithadar and finally touches Karachi City Station. It has 16 stations, 22 level crossings in its 29.32-kilometre route length.

The KCR remained functional for almost 15 years, but gradually, it lost charm due to lack of investment in infrastructure and rolling stock, resulting in increase in travel time, non-punctuality etc. This led to gradual reduction in number of trains and eventually was closed for traffic in January 2000.

At a meeting, chaired by the Prime Minister on December 6, 2004, it was, inter alia, decided that Karachi Circular Railway (KCR) be revived as modern commuter system for the citizens of Karachi and Karachi Urban Transport Corporation (KUTC) be set up for the implementation and operation of the KCR with Pakistan Railways, government of Sindh and City District Government Karachi (CDGK) as stake holders.

The Japanese Ministry of Economy, Trade and Industry had commissioned a study on revival of Karachi Circular Railway as modern commuter system under the aegis of Japan External Trade Organisation (Jetro). The Jetro report has recommended dualisation of KCR loop (29.32 kilometere) and provision of two dedicated tracks along mainline.

The report also recommended that the major cities around the world have dedicated railways for airport that connect their airports with the city centres. Therefore, the KCR should also be linked to the airport so as to provide facility to commuters for travelling to and from various city centres to the airport.

The proposed rail link with terminal station at airport with route length of six kilometres, including 1,870-metre elevated, 830-metre underground and 3,260-metre surface track. The railway station will be provided in the vicinity of present car parking area.

The link to Karachi airport will facilitate the passengers to commute from various centres of the city in shortest possible time, say a passenger will be able to reach from and to Karachi Airport from Liaquatabad in about 25 minutes.

Three trains per hour will be operating to Karachi Airport and the track will have the capacity to increase the number of trains, depending on the increase of passengers, the cost of rail link, including infrastructure, rolling stock etc will be 156 million dollars.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*200km-long roads being built in Sialkot district ​* 
SIALKOT (June 06 2008): City District Government Sialkot (CDGS) is spending more than Rs 40 crore during current fiscal period on the construction of 200 km long new roads in Sialkot, Pasrur, Daska and Sambrial tehsils of the district. The work on the project would be started soon in all tehsil headquarters of the district.

Official sources told Business Recorder here on Thursday that the construction of 93 roads had already been completed during the past two years by the district government at a cost of more than Rs 35.60 crore. In addition, renovation and rehabilitation of 85 roads at a cost of Rs 23 crore had also been completed during the same period for ensuring speedy and better travelling facilities to the masses of the district.

The district government had concentrated its special attention on the improvement of Allama Iqbal hospital and during current fiscal period Rs 1.64 crore would be spent on the purchase of new hospital machinery for extending modern treatment facilities to the patients.

Similarly, more than Rs 5.88 crore would be utilised on the purchase of medicines for government hospitals of Sialkot district. Besides, Rs 2.50 crore would be spent on the repair and construction of government hospitals and dispensaries in the district, sources added.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Airblue cuts meal, travel agents to save cost ​* 
Sunday, June 08, 2008

KARACHI: Airblue has decided to replace regular meals on flights with cheap sandwiches and shift sales to internet mode in a bid to cut soaring fuel cost, a top airline official told The News on Saturday.

Stopping full meals, which cost Rs500 per head, and introduction of Rs100 sandwich dish will help the private airline save around Rs100 million a month, said Syed Nasir Ali, Airblue Managing Director.

Easiest thing to do is to increase fares and punish passengers, he said about possible ways to overcome fuel-related cost. But ultimately that will be negative for the whole industry. That will shrink market.

The global aviation industry is going through tumultuous times as oil soars past $138 per barrel, forcing airlines to rationalise routes, stop use of fuel-guzzling aircraft and add different charges to air tickets.

Any abrupt hike in fares will mean a businessman who travels three times a week will reduce trips and a family planning vacation this summer will prefer using train, Nasir said, warning the impact of high fares has started costing airlines their passengers.

But another cost-cutting endeavour of the airline has faced stiff resistance from travel agents. In a bold move, the airline slashed commission of its travel agents by 2-3 per cent, drawing immediate condemnation from the Travel Agents Association of Pakistan (TAAP).

Muhammad Hanif, a TAAP member, said the airline should let the high cost reflect in fares on basis of which travel agents earn their commission. They want us to earn just Rs90 on sale of Rs16,000 ticket.

Around 350 members of TAAP have stopped selling tickets for Airblue, which has now decided to directly approach its customers and through other travel agents who have not agreed with the associations stand.

We still want to work with them. We dont want any confrontation, Nasir said. But all options are open. We will sell tickets through internet on special discount.

Meanwhile, the Civil Aviation Authority (CAA) is keeping itself away from the troubles the airlines are facing. This is a global phenomenon. According to IATA, airlines will record a loss of $2.5 billion against earlier projections of a profit of $6bn, said Farooq Rehmatullah, CAA Director General.

He said private airlines being low cost and efficient could manage the hike in fuel cost. CAA cannot interfere; it can only regulate, he said, adding: I am not aware if they (airlines) are in any crisis.

On its part, state-owned Pakistan International Airlines (PIA) is looking at the option of increasing fuel surcharge, a senior official of the airline said.

However, Aijaz Haroon, Managing Director of the airline, could not explain what his management intends to do to curtail cost. Oil prices are fluctuating, just few days back it was $120 per barrel, he said and when insisted that he dilate on the subject, added: I dont want to repeat the measures we have already announced.

Airblue cuts meal, travel agents to save cost


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## Neo

*Reconstructing KPT berths 10-14 to cost Rs5.5bn ​* 
Saturday, June 14, 2008

KARACHI: Ports & Shipping Secretary Saleem Khan visited the Karachi Port on Thursday to review the progress made by the KPT on the reconstruction of berths, a press release said.

The secretary was briefed about the berth at East Wharf that was reconstructed by Korean company Ssang Yong.

He was informed that the detailed design of berths 10-14 has cost Rs70 million and their reconstruction would cost Rs5.5 billion. Two of these berths will be ready by next June and the remaining three by March 2010.

He was further informed that after reconstruction the berths will have 16 metres depth which would enable the port to handle larger vessels.

The secretary was briefed about the Pakistan Deep Water Container Port at Keamari Groyne and other projects under way along with those that the KPT has already accomplished.

He congratulated Nasreen Haque for becoming the first woman chairperson of the KPT. 

The secretary along with the chairperson and other officials inspected berths 10-14 at East Wharf and later the entire port.

Reconstructing KPT berths 10-14 to cost Rs5.5bn


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## Neo

*Nasreen aims to make KPT transshipment hub ​* 
Saturday, June 14, 2008

KARACHI: Karachi Port Trust Chairman Nasreen Haq, after assuming the charge, shared her views and vision with the KPT management and workers and said she believed in team work for achieving milestones.

She said her previous expertise and achievements in the road, rail and sea transportation sector would enable the port to make effective use of these linkages with the KPT, which would ultimately benefit in reducing cargo congestions, stated a press release.

The KPT chairperson mentioned that her aim would be to convert the port into a transshipment hub of the region and to create a win-win situation for the port and its users.

She said her focus would also be on the fishing community and the KPT would look into the problems faced by them and try to resolve them.

She said her aim would be to benefit the workers and officers of KPT and vowed to further reduce the turnaround time of vessels calling at the Karachi Port.

The inter-modal connectivity of the port with the hinterland would be the top priority. The trade corridor for Afghan Transit Trade would greatly benefit from KPT connectivity as envisioned, she added.

Nasreen aims to make KPT transshipment hub


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## Neo

*PIA working on strategic plans​*
KARACHI: Pakistan Internati-onal Airlines (PIA) management is working on the strategic plan that will be presented to the Board of Directors in the near future.

In 314th meeting Friday, the Board reviewed the commercial aviation environment of PIA and the various issues confronting the national carrier. Chairman PIA, Mohammad Aijaz Haroon briefed the Board on the short term and long term measures being taken by the management for the revival of PIA. 

Board hoped that with the support of federal government, PIA would turn around into a profitable organization. Ch Ahmed Mukhtar, Syed Mohammad Fazal Agha and additional secretary, ministry of defence also attended the meeting. 

Daily Times - Leading News Resource of Pakistan


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## Neo

*Rs 14 billion being spent on new roads ​* 
SIALKOT (June 16 2008): Punjab government is spending more than Rs 14 billion on the construction of new roads and widening of existing roads in the province. Official sources told Business Recorder here on Saturday that under the programme 600-KM long new roads would be constructed, while 700-KM long existing roads would be widened in various parts of the Punjab.

Sources also disclosed that existing 10 feet roads will be widened to 20 feet and 12 feet roads would be widened to 24 feet in the province. The step has been taken for the improvement of means of communication as well as to ensure hurdle-free and safe travelling facilities to the masses in the Punjab sources added.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Air Arabia to start daily flights from Karachi ​* 
Thursday, June 19, 2008

KARACHI: Air Arabia is looking forward to starting daily flights from Karachi to its hub in Sharjah besides adding Sailkot to its network of two existing destinations, which also includes Peshawar, a top airline official told The News on Wednesday.

The decision to enhance frequency and expand reach in Pakistan reflects UAEs first budget carriers endeavour to capture the growing middle class in the Southeast Asian region, said Shalini Rajan, Regional Manager for Pakistan, India, Bangladesh, Nepal, Turkey and CIS countries.

Income of people has increased and there has been a rapid growth in the number of new cost-conscious entrepreneurs, she said, expressing confidence that rising inflation will not hurt the number of people traveling by air.

Air Arabia has grown phenomenally since its launch in 2003 as a low-cost carrier. In a span of just five years, it has carried seven million passengers and expanded the network to 41 destinations.

Despite continuous surge in oil prices, the airline has continued with its growth projection mainly because of its low-cost model. We have managed cost ruthlessly, said Ms Rajan, listing the measures taken in that regard. We have single-model aircraft with all-economy configuration, our turnaround time is 45 minutes and there is no crew layover as none of the flights time period exceeds five hours.

This, she said, has helped save expenses of crew staying in hotels. Initially, a lot of people thought that the airline would not perform up to the mark. But against the expectations, our performance was very good and the airline started becoming popular.

She said Air Arabia has created a lot of first-time flyers with its low fares. So we have not only created a market for ourselves but a lot of upcoming budget carriers will benefit as well. At times, the airline has charged fares 40 per cent below market cost.

The airline operates on point-to-point basis and its focus is on increasing frequency to existing destinations rather than expanding the network. It has established another hub in Kathmandu, Nepal, to serve the market of the Far East region.

Ms Rajan said airlines in Asia were struggling to sustain their business, threatened by high fuel cost and termed it one of the hindrances to mergers and takeovers.

Airlines around the world have been cutting costs in a bid to survive one of the worst periods for the aviation industry. In Pakistan, so far only one airline, Airblue, has taken the initiative to cut cost.

Air Arabia operates four and three weekly flights to Sharjah from Karachi and Peshawar respectively. It has a fleet of 15 aircraft and has 49 new aircraft on order.

Air Arabia to start daily flights from Karachi


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## Neo

*KPT achieves 25% record growth in cargo handling​*
KARACHI: Karachi Port Trust (KPT) cargo handling has registered a record growth of 25 percent this year as KPT is handling over 101,000 tonnes of cargo daily and has crossed the figures of 37 million tonnes.

By the end of the outgoing fiscal year, KPT projects to handle 61 percent of the total container volume of 1.97 million (Twenty equivalent units-TEU) handled by the two ports, KPT and Port Qasim. The total sea trade handled by the two ports during the last 11 months stand at 58.10 million tonnes, of which the share of dry cargo exports at KPT remained 65.39 percent. 

Liquid cargo has shown recovery and it is growing by 14 percent at Karachi Port. The Liquid Cargo export, which mainly comprises Molasses, Ethanol, Naphtha and other chemicals, has crossed the two million-bench marks by registering 2.02 million tonnes this year. 

The dry cargo, coal handling at Karachi Port has reached 3.5 million tonnes. In exports, the cement handling, through bulk of bags, has crossed the two million tonnes mark. This is the first time in the history that Pakistan is exporting cement as a bulk commodity. Four silos are being constructed at the port which when completed would further increase the cement exports. KPT has also handled 0.9 million tonnes of clinker exports during the last 11 months, which is another record achieved by the port. 

The Karachi Port so far has registered 11 percent growth by recording 1.149 million TEU handling till 12th June 2008. Previously, in year 2005-06, the KPT recorded handling of 1.144 million TEU containers. As regards the container terminals, both PICT and KICT have shown progress.

Presently PICT is handling 39 percent while KICT handles 50 percent of the total container volume. The remaining 11 percent are handled at another berths of KPT. 

This year, up to 12th June, KPT has handled 2,024 ships. This commendable performance is despite the fact that eight berths at East Wharf were not utilized due to their reconstruction. Construction of 16 meters deep quay wall is already underway by a Korean company at East Wharf. KICT has installed two super post panamax gantry cranes to handle larger ships carrying 5,000 TEU containers. Recently, the KICT has handled 4,500 TEU containers from a Post Panamax Ship Hyundai Admiral at the berth.

Daily Times - Leading News Resource of Pakistan


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## Neo

*Freight trains between India and Pakistan likely to increase ​*19 Jun, 2008, PTI

NEW DELHI: India and Pakistan agreed to work modalities for increasing the number of freight trains between them to boost trade as railways officials of India and Pakistan wrapped their three-day talks here on Thursday. 

"Talks ended on a positive note," said a senior Indian Railway Ministry official. 

"Freight operations between the two countries are likely to increase in the near future as both sides agreed to work out the modalities for the same," said the official. 

Currently, there are only two freight trains operating in a day in Wagah-Attari border route between the two countries. "It is expected to increase to five," said the official. 

The six-member Pakistan delegation which had come to India for talks met Railway Minister Lalu Prasad. The High Commissioner of Pakistan Shahid Malik was also present on the occasion. 

Prasad impressed upon the need for increasing the movement of freight trains between the two countries in view of increased bilateral trade, especially India's import of cement whos domestic prices have been soaring. 

He also emphasized on the need for opening up Munnabao-Khokrapar route between India and Pakistan for freight services. 

While the Pakistani delegation was led by Shafiq Ullah, Director Operation, Pakistan Railways, the Indian side was led by R N Verma, Addlitional Member (Traffic), Indian Railways 

Freight trains between India and Pakistan likely to increase - Politics/Nation-News-The Economic Times


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*Work on Multan airport expansion to begin soon ​* 
MULTAN (June 20 2008): Work on the expansion of Multan airport will begin in the first week of July with an estimated cost of Rs 4.5 billion. The project will be completed in two phases within 30 months. All the Boeing and Haj flights would be diverted to Bahawalpur and a bus would shift passengers to Multan.

Civil Aviation authorities said that Rs 1.80 billion would be spent in first phase and the remaining amount would be spent on second phase. CAA authorities said that four flights could be landed simultaneously at Multan airport after completion of the project. A 1000-metre to 150-metre wide runway would be constructed and it would handle more than one million passengers besides handling the exports of vegetables, fruits and textile goods worth billions of rupees.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Spain, Pakistan update air service accord ​* 
Wednesday, June 25, 2008

KARACHI: Pakistan and Spain have signed a new air services agreement (ASA) which will allow unlimited number of passenger and cargo flights between the two states, said a Civil Aviation Authority (CAA) handout on Tuesday.

Airlines of both countries can avail co-terminal rights on limited frequencies on any two points of call in each state. The code-share agreement has also been agreed.

Previously, ASA was restricted to operations of single airline with three weekly services to one destination in each country.

ASA talks held in Madrid have liberalized existing agreement allowing more space to the airlines to commence commercial operations. 

Further ASA text has been modified in light of recently concluded horizontal agreement with European Union and bilateral agreement with UK. 

The ASA is now in conformity with EC laws. National airlines can take advantage of this agreement and can launch new services for promotion of trade, tourism and people to people contact between Pakistan and Spain. 

Spain, Pakistan update air service accord


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## Neo

*Two calibration aircraft arrive in Pakistan ​*
KARACHI: Civil Aviation Authority of Pakistan has purchased two new Beech-craft Superking B-200 aircraft equipped with state of the art flight inspections system.

The new aircraft landed at Jinnah international airport Friday form Germany.

The aircraft were received at the JIAP Terminal-1 by the Deputy Director General CAA, Air Vice Marshal, Sajid Habib, Chief of Calibration, Air Commodore Abbas M. Petiwala along with his team of pilots and engineers, Director operations, Syed Yousuf Abbas and Director Airworthiness, Engineer Ghulam Murtaza and other CAA senior officials. The induction of these aircraft will further enhance the capabilities of CAA to capture potential international market by providing quality calibrations of navigational landing and visual aids by utilising the latest flight inspection system. 

Daily Times - Leading News Resource of Pakistan


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## Neo

* Link between railways and Karachi Port discussed ​* 
Sunday, June 29, 2008

KARACHI: Karachi Port Trust chairperson Nasreen Haque held a meeting with Pakistan Railways General Manager Operations Asad Saeed and his team of officers at the KPT head office.

During a brief presentation given to the delegation, the KPT chairperson unveiled her plan about rail connectivity with the port and major cargo terminals. As a first step, the damaged railway track connecting TPX and Groyne Yard would be revived, stated a press release issued by the KPT.

The railway line would also be extended to the coal stacking area near Groyne Yard for direct loading from there. This will ensure prompt movement of import and export cargo from and to the port, which is presently hampered as it has to pass through the heavily-congested metropolis, facing acute traffic problems.

The KPT chairperson emphasised the importance of advanced planning by the railways in line with KPT plans for development of infrastructure and rolling stock, enabling proper logistics to cater for the present and future traffic.

The railways, being a bulk carrier and an economical mode of transport, has to gear itself up to promptly clear the port and bridge the gap between the port and the industry. The delegation praised the KPT chairperson for taking keen interest in railway connection with the premier port of the country. They exuded confidence in steps taken by the KPT chairperson and offered full support for prompt clearance of cargo from the port.

Link between railways and Karachi Port discussed


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*Modern facilities to be provided to all airports: CAA DG ​* 
Sunday, June 29, 2008

SKARDU: Civil Aviation Authority Director General Farooq Rehmatullah has said most modern traffic facilities would be provided to all airports of the country. 

It was disclosed by DG CAA at a foundation laying ceremony held here for the expansion of Airport terminal building. He said under the new aviation policy of CAA now, investors can construct their own airports, helipads and can purchase their own aeroplane and helicopters to promote tourism and to facilitate the passengers and tourists in the mountainous regions of the country. 

According to the new policy everything would be tax free. Rehmatullah said expansion work of Skardu Airport would be started within one month and completed before winter season to facilitate incoming and outgoing passengers. 

There would be new and most modern waiting places and car parking with sufficient space, he said, adding that the project would be completed with an amount of Rs45 million. 

The CAA DG said the authority will welcome the private airlines in these areas to facilitate the international and domestic passengers as well as international tourists, trekker and climbers. 

He said: We are sending technical staff to Switzerland to make a survey and feasibility to see how flights are operated there during bad weather and in the mountainous regions so that we can follow modern techniques here in remote and mountainous areas of the country.

The DG said planning is being made to install most modern equipments in the planes and also at the airports to facilitate flights. 

He said taking off and landing fee would not be charged on PIA flights for Skardu by CAA and the benefit must go to the passengers of Skardu. 

CAA has been restructured and made service-oriented department and being run professionally, he said and informed that other development and facilitation projects have been undertaken on various other airports of the country.

Modern facilities to be provided to all airports: CAA DG


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*PIA begins Islamabad-Bradford flight ​*
ISLAMABAD (July 03 2008): PIA is pleased to announce its flight operation to Leeds, Bradford, UK effective from Wednesday (July 2) The Islamabad-Leeds-Islamabad flight will operate twice a week every Wednesday and Saturday with convenient timings. PIA's Flight Operation on the said sector meets a long standing demand of the Pakistani community based in Leeds, Bradford.

The Leeds, Bradford Airport is conveniently located for Pakistani communities residing in the vicinity. The Airport is considerably, less congested than other major airports in UK, thus providing more efficient and prompt service, with PIA being the only non-EU airline providing direct service to points outside Europe.

UK is a very important market, with the Airline serving five cities; London, Birmingham, Manchester, Glasgow and now the Bradford/Leeds area. In its endeavour to provide the most efficient service to our communities residing in UK, PIA remains committed to providing flights between UK and Pakistan. PIA will now be operating 25 weekly direct non-stop flights to the five destinations in UK from Pakistan.

PIA's Managing Director, Captain Mohammad Aijaz Haroon sharing his views on the airline's flight operation from Islamabad to Leeds, Bradford said "PIA's Flight Operation on the said sector meets the demand of our customers in the Bradford and wider Yorkshire region as well as the airline's customers in Pakistan.

He further said that the launching of PIA's flight operation from Islamabad to Leeds, Bradford will provide additional travel services to its customers in addition to the airline's growing international network.

As part of the marketing initiatives being taken, more destinations will be added to the airline's network while increasing the frequency of its existing flights as per the market demand, offering enhanced services to its customers.-PR

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Plan to air-link Mirpur with rest of the world​*
MIRPUR (July 09 2008): AJK government is contemplating to air-link Azad Jammu Kashmir's fast expanding model city of Mirpur with rest of the world through the establishment of an international airport in order to provide direct air travelling facilities to the people of Mirpur, official sources said.

Prime Minister Sardar Attique-led AJK government has already decided to establish an airline of Azad Jammu and Kashmir with the name of Kashmir Airline besides the emergence of a full-fledge international airport in Mirpur with the major involvement of the private investment, the sources told APP here Tuesday.

The proposed Mirpur International airport would provide direct air travelling facilities to the overseas Kashmiris, including UK-based settlers hailing from the area, to their ancestral town of Mirpur. A bright potential is already available in the area to materialise the plan, which would indeed, prove to be the strong source of the local economy of AJK, the sources added.

Highlighting various other development projects proposed to be launched in Mirpur under a phased programme during the current fiscal year 2008-09, the sources said that a mega Industrial zone was also being established over an area of 15,000 kanals of land in Mirpur for the speedy industrialisation of AJK. It would also help to encourage the economy of self-reliance in the area.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*PNSC acquires modern, double hull oil tanker ​* 
Saturday, July 12, 2008

KARACHI: The Pakistan National Shipping Corporation (PNSC) has acquired the first modern, double hull oil tanker named MT Quetta. 

A statement issued here on Thursday said the vessel was handed over in Fujairah on July 10 and after loading crude oil, will arrive in Karachi on its maiden voyage under the PNSC flag on July 17-18.

It said MT Quetta is a May 2003-built, 107,215 metric tonnes deadweight double hull Aframax Oil Tanker, 247 metres long with a beam of 42 metres. The vessel has been purchased from M/s Stena Snowdrops of Bermuda, a concern of Stena Bulk (Sweden).

MT Quetta has heralded a new era in PNSC, an era of renewed commitment to modernisation, development and strengthening of PNSC, the statement pointed out. It said PNSC has been progressively growing over the years and MT Quetta is among the first of many things to come in, furthering this growth.

Extensive plans are underway for the modernisation of the PNSC fleet, with modern and versatile ships that can serve Pakistans trade, well. A plan for the replacement of the ageing fleet has been approved by the PNSC Board, which entails the purchase of two double hull tankers and two general cargo vessels in the financial year 2008/09.

PNSC has already started work on this and is searching for these ships in the international market. It is pertinent to mention that PNSC earned an estimated net profit of Rs2.3 billion despite the high cost of fuel and ageing vessels.

With the induction of MT Quetta and the addition of more vessels, PNSCs net profit is anticipated to rise in the current financial year, it was further pointed out.

PNSC acquires modern, double hull oil tanker


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## Neo

*Measures to restore past image of railways​*
KARACHI (July 11 2008): The newly appointed General Manager Pakistan Railways, Nasir Zaidi, Thursday vowed to restore the past image of the railways by taking various measures as part of the priorities he has set for himself to follow.

In an interview to APP after taking over the charge as General Manager Nasir Zaidi, who has vast experience on the operation side and held various important positions in the past, said that his foremost priority would be for safe railway operation by improving the tracks, the rolling stock and the signalling system.

He said that to ensure this, special measures would be taken which he has already started from today. GM Railway said that his most emphasis will be on improvement of infrastructure and specially to ensure train movements on their schedule timings which has greatly suffered after December 27 incident.

He said that presently the trains are running late on an average by 5-6 hours mainly because of repair work of track, which was uprooted by violent mobs on December 27.

He said that 13 stations between Karachi and Khanpur were closed after violence during which the signalling system between Karachi and Rohri had been totally destroyed and as a result, although the train operation was restored, but trains were allowed to move at cautious speed to avoid risks to travelling people.

Nasir Zaidi said that arrangements are being made on an emergency basis to restore signalling system as early as possible for which Rs 1.5 billion have been allocated by the Federal Government during the fiscal 2008-09 for repair and replacement. He said railway will carry out this work with its own technical know how.

GM Railway said that improved amenities for travelling people is also his important priority. He pointed out that railway's freight income has already increased by 18-20 percent as compared to the previous year and will go further up during the current financial year which will help reduce the gap between income and expenditure.

Nasir Zaidi informed that already railway is running eight freight trains as against seven earlier from Karachi for upcountry destination and now this frequency will be increased to 10 within two months.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*PIA fails to offer B-747 on charter, wet lease​*
KARACHI: Pakistan International Airlines (PIA) has failed to attract any offering for its Boeing 747-300 series aircrafts on charter or on wet lease.

The management of state-owned airline has offered its Boeing 747-300 series aircrafts for seven months period (February to August 2008) on wet lease, official source informed Daily Times.

A wet lease is a leasing arrangement whereby one airline (lessor) provides an aircraft, complete crew, maintenance, and insurance, to another airline (lessee), who pays by hours operated.

The lessee provides fuel, covers airport fees, and any other duties, taxes, etc. The flight uses the flight number of the lessee. Also, the lessor usually does the ground handling although this can vary from country to country. In some cases the lessee provides these services (or one of its partners). The then PIA management grounded its eight B-747 aircrafts including its two cargo fleets March this year, citing the reason of high fuel consumption. But, the present management has decided to utilise them for Umra operation.

According to the official spokesman, PIA is utilising its four B-747 aircrafts for Umra operations and one of the aircraft would also resume flights very soon.

PIAs six Boeing 747-367 have a capability to carry 433 passenger and two other Boeing 747-240 Combis have capacity of 264 passengers and 30 tonnes main deck cargo capacity. The B-747 aircrafts are 12 to 15-year old aircrafts and consume 27 percent more fuel as compare to new aircrafts of B-777 series, despite these facts, it has also capacity to carry more passengers than B-777.

Daily Times - Leading News Resource of Pakistan


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## Neo

*Airblue adds two new aircraft to its network ​* 
Friday, July 18, 2008

KARACHI: Private airline Airblue, on Thursday, announced that it had added two new aircraft to consolidate its international and domestic network.

Speaking to newsmen here at a luncheon meeting, Managing Director Syed Nasir Ali said the two Airbus 319 aircraft have been dry leased from an American airline which went bankrupt following an unprecedented hike in fuel prices. This new addition has increased the fleet strength of Airblue to eight aircraft. Year 2007 was the year of consolidation for us. We were trying to face challenges of the rising fuel cost, he said, recalling many airlines have succumbed to the challenge. We definitely want to survive.

He said domestic air traffic has dropped by 12 per cent as compared to last year because of higher fares. Airblue has taken a number of initiatives to control cost. All our aircraft are configured economy class. We have replaced meals with sandwiches.

Ali said the new aircraft will primarily be used on upcoming routes between Sharjah and cities in northern Pakistan. Service between Lahore and Islamabad will also start from next month, he added.

Asked how his airline will compete with low-cost Air Arabia that operates on the same routes between Sharjah and Pakistan, he said Pakistani passengers mostly preferred their own airlines.

He said initially, the airline intended to establish its service from Dubai but authorities of the emirates did not grant them permission. Airblue has also been seeking permission of Saudi authorities to start flights to Riyadh, he said, adding, Saudi rulers are strict when it comes to private airlines.

Airblue adds two new aircraft to its network


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## Neo

*Bulk cargo exports through KPT increase above 80 percent ​*
KARACHI (July 18 2008): Performance of Karachi Port Trust (KPT) during the outgoing fiscal year 2007-08 registered a healthy trend. Exports of bulk cargo through Karachi Port depicted a massive increase of 80.37 percent, recording 4,243,608 metric tons, as compared to the previous year, said a press release on Thursday.

In 2005-06, the Karachi Port was able to handle 959,365 metric tons of bulk cargo and with which if the comparison is made, the actual growth rate of bulk cargo exports from Karachi Port would be 342.33 percent.

This happened mainly due to bulk exports of clinker and cement, which gained momentum at Karachi Port and increased by 191.43 percent and 213.25 percent respectively, the statement said. Comparing handling of bulk cement this year with that of 2005-06, it depicts that its handling has increased manifolds by 1878.32 percent.

Besides cement and clinker in bulk, the port has handled rice (936,667 metric tons), sugar (13,036 metric tons) and coke (8,300 metric tons). Bulk cargo imports also showed improvements and registered an increase of 24.65 percent from corresponding period last year.

This year the port has handled fertiliser (1,486,512 metric tons), rock phosphate (477,071 metric tons), iron/scrap (160,854 metric tons), sulphur (2,500 metric tons), seeds (36,203 metric tons, cement (3,556,246 metric tons), yellow peas (10,700 metric tons), canola (144,746 metric tons) and wheat (473,384 metric tons), the press release said. The dry general cargo exports handling this year closed at 5,166,812 metric tons registering an increase of 43.87 percent.-PR

Business Recorder [Pakistan's First Financial Daily]

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* Banks arrange Rs6.52bn for dedicated grain terminal ​* 
Saturday, July 19, 2008

KARACHI: National Bank of Pakistan (NBP) acting as lead adviser and arranger and Bank Alfalah as co-arranger, along with a consortium of banks, signed financing agreements for Rs6.52 billion with Fauji Akbar Portia Marine Terminals (FAP), a joint venture between Fauji Foundation and Akbar Group.

The venture to be set up will be Pakistans first dedicated grain and fertiliser terminal at the Port Qasim on build-own-transfer (BOT) basis under an implementation agreement with the Port Qasim Authority (PQA) valid for a period of 30 years.

The signing ceremony was attended by Chairman FAP, Lt Gen (Retd) Syed Arif Hasan, who is also Managing Director of Fauji Foundation, President National Bank Syed Ali Raza, other leading bankers, Directors of FAP and senior executives of NBP.

A press release issued by the NBP on Friday said that this coincided with the celebration of PQAs 35th anniversary and was its latest pioneering development in dedicated terminals to handle essential commodities following the existing container, oil, liquid cargo, chemical, LPG, coal and iron ore terminals.

This state-of-the-art terminal will have a design capacity of handling over 4 million tonnes of products a year for all dry bulk cargoes imported to or exported from Pakistan through PQA. The terminal will be equipped with fully automated un-loaders, silos for grain storage, fertiliser storage, conveying systems and automated bagging lines.

The press release said that turnaround time of vessels would be reduced and bulk silo storage made available at the terminals dedicated jetty and back up area. This will not only reduce the handling cost, but also cut down on the wastage. On commencement of operations in 2010, this terminal will add to the infrastructure at PQA, reduce port congestion and vessels waiting time.

National Bank of Pakistan through its Investment Banking Division was able to arrange this ten year non recourse project financing in record time, as a result of which, FAP was able to meet project commencement timelines under the implementation agreement with PQA and finalise award of contracts with China Harbour and Engineering Company as the Design-Build Contractor, Vigan SA of Belgium and Chief Industries UK as the Machinery & Equipment Supplier.

Construction of this infrastructure project is of national importance to handle essential commodities such as wheat and is expected to commence immediately after registration of contracts with State Bank of Pakistan. It is scheduled for completion twenty four months thereafter.

Banks arrange Rs6.52bn for dedicated grain terminal

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## Neo

*Accord inked for first grain, fertiliser terminal​*
KARACHI, July 19: Pakistans first grain and fertiliser terminal would be established at Port Qasim by the Fauji Akbar Portia Marine Terminals (FAP), a joint venture between the Fauji Foundation and the Akbar Group.

The National Bank of Pakistan and the Bank Alfalah, along with a consortium of banks, have signed financing agreements for Rs6.52 billion with the Fauji Akbar Portia Marine Terminals (FAP) for setting up of the terminal.

It would be established on build-own-transfer basis under an implementation agreement with the Port Qasim Authority (PQA) for a period of 30 years.

The signing ceremony was attended by FAP chairman Lt-Gen (retd) Syed Arif Hasan who is also managing director of Fauji Foundation, NBP President Syed Ali Raza, other leading bankers, directors of FAP and senior executives of the NBP.

The setting up of the terminal coincides with the celebration of PQAs 35th anniversary and is its latest pioneering development in dedicated terminals to handle essential commodities following the existing container, oil, liquid cargo, chemical, LPG, coal and iron ore terminals.

This state-of-the-art terminal will have a design capacity of handling over four million tons of products a year for all dry bulk cargoes imported to or exported from Pakistan through the PQA.

The terminal will be equipped with fully automated un-loaders, silos for grain storage, fertiliser storage, conveying systems and automated bagging lines.

Turnaround time of vessels will be reduced and bulk silo storage would be made available at the terminals dedicated jetty and back up area.

This will not only reduce handling cost but also cut down on the wastage.

On commencement of operations in 2010, the terminal would add to infrastructure at PQA, reduce port congestion and vessels waiting time.

The NBP is acting as transaction lead advisor and arranger, and Bank Alfalah as co-arranger, with the consortium of banks.

National Bank of Pakistan through its Investment Banking Division was able to arrange this 10-year non-recourse project financing in a record time as a result of which FAP was able to meet project commencement timelines under the implementation agreement with the PQA and finalise award of contracts with China Harbour and Engineering Company as the design-build contractor, Vigan SA of Belgium and Chief Industries (UK) as machinery and equipment supplier.

Construction of this infrastructure project of national importance to handle essential commodities, such as wheat, is expected to commence immediately after registration of contracts with the State Bank of Pakistan and is scheduled for completion in 24 months.

The project implementation shall be overseen by FAP, Portia Management Services, UK, Inros Lackner AG (Germany) and Indus Associated Consultants (Pakistan).

Scott Wilson (UK) has been appointed lenders monitoring consultant, Marsh International (UK) has been appointed lenders insurance advisor, Mohsin Tayebali and Co acted as lenders counsel, Bridge Factor acted as FAPs advisors, Orr Dignam & Co., legal Advisor while Nespak are PQAs technical consultants.PPI

Accord inked for first grain, fertiliser terminal -DAWN - Business; July 20, 2008

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*US likely to grant non-stop flight rights to PIA​*
WASHINGTON, July 24: During Prime Minister Yousuf Raza Gilanis forthcoming visit to Washington, the United States and Pakistan will sign an agreement to grant non-stop flight rights to PIA, sources told Dawn.

The two countries are also expected to conclude an agreement on providing US food assistance to Pakistan to help it deal with the current food crisis, the sources said.

Pakistani lobbyists are also trying to persuade US senators to at least start formal hearing on a $15 billion aid package for Pakistan during the July 28-29 visit.

The agreement for flight rights will allow PIA to operate direct, non-stop flights to and from New York. Initially, PIA will operate one flight a week from New York to Lahore, but later it may be allowed to operate non-stop flights to Karachi as well.

In October 2002, PIA purchased eight Boeing 777 long- and extended-range aircraft after a period of 10 years of no new orders. The goal was to operate non-stop flights between Pakistani and North American cities with sizeable Pakistani populations.

PIA has already started non-stop flights from Toronto, but plans for similar flights to and from US cities could not materialise because the Department for Homeland Security refused to permit such flights.

Apparently, the Americans had no objection to direct flights from the US to Pakistan, but they refused to allow non-stop flights from Pakistan. They told Pakistani authorities that they believed Pakistan did not have adequate security arrangements at its airports to prevent terrorists from using such flights for their activities.

American officials insisted that flights originating from Pakistan must stop at an international airport for a thorough security check before proceeding to the United States.

The proposed agreement will remove this objection but before the flights begin Pakistan will have to update security arrangements at its airports.

Another agreement to be finalised during the prime ministers visit concerns Pakistans request last month for 500,000 tons of wheat from the United States to help them deal with the current food crisis. While the Americans have agreed in principle to help Pakistan, it is not yet clear how much wheat they are going to give.

It may range anywhere between 100,000 and 500,000 tons, said a source aware of the negotiations.

US likely to grant non-stop flight rights to PIA -DAWN - Top Stories; July 25, 2008

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## Neo

*New Islamabad Airport: Irish company gets Rs 11.8 billion airside infrastructure contract​*
ISLAMABAD (July 25 2008): Civil Aviation Authority (CAA) has awarded the contract of airside infrastructure of new international Islamabad Airport to an Irish company. The project will cost Rs 11.8 billion and will be completed in two years. In this connection, Director General CAA, Farooq Rehmatullah and Business Development Director of Irish company Freddie Patterson signed a Memorandum of Understanding here on Thursday.

Under the plan, the company will construct runway, taxiway and apron of the new international Islamabad Airport. Talking to newsmen, DG, CAA, Farooq Rehmatullah said that the project would be completed in two years. He said the new Islamabad International Airport which has been named after Benazir Bhutto Shaheed would be completed by the end of 2010.

Business Director of the Irish company 'Lagan' said that it was one of the biggest projects in the world. He said that work on the project would be started during the next two weeks. Praising investment atmosphere in Pakistan, he said that there was a vast scope for foreign investment in various fields in Pakistan.

Business Recorder [Pakistan's First Financial Daily]

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## Neo

*Red tape delays flight operations at Hyderabad airport ​* Tuesday, July 29, 2008 

HYDERABAD: The Hyderabad airport that has been closed for the past eight years is not being opened despite the issuance of a flight schedule by the national carrier because of red-tapism and change of stance of the Civil Aviation Authority (CAA).

The CAA had agreed to resume flight operations from the airport of the second most important city of Sindh after Karachi in May 2006, but is presently showing reluctance to start flights owing to problems related to the runway of the airport.

The business community of Hyderabad has condemned the decision of the authorities without naming CAA, adding that Pakistan International Airlines (PIA) has issued the flight schedule for August 3, but the officials of PIA have been informed that the opening has been delayed.

A meeting of representatives of Hyderabad Chamber of Commerce and Industry (HCCI) with the director of Civil Aviation Training Institute (CATI) on 16th May, 2007 was informed that the CAA had not closed the airport, but scaled it down in April 2001 due to termination of flights by the national carrier from the Hyderabad airport.

A copy of the minutes of the meeting issued by CATI shows that the director informed the meeting two years back that it may be well noted that huge financial expenses are involved in maintaining and managing a closed-of scaled down airport.

Thus it is imperative that HCCI should approach the national airlines with cogent data of passengers and cargo generated at Hyderabad, to make the proposition viable. Once the airlines are willing to operate flights to/from Hyderabad airport, CAA can activate the airport again, he stated in the meeting as per minutes.

However, two years passed and the HCCI office bearers and District Nazim Kanwar Naveed Jameel continued their efforts for reopening of the airport and got directives from the then Prime Minister Shaukat Aziz to resume the flights.

After the Pakistan Peoples Party government took over the affairs of the country, once again the process was accelerated and the authorities and national carrier issued the flight schedule from Hyderabad airport and District Nazim announced that flights would be resumed on 3rd August 2008.

The HCCI even booked the first flight from Hyderabad to show that Hyderabad is viable for flights and would give good business to the national carrier. However, their hopes were shattered when CAA said that the runway is going to be improved, therefore operations could not be resumed on 3rd August 2008.

The HCCI president Haji Yaqoob told a news conference at the chamber secretariat on Monday that Hyderabad is a potential district for the passengers and airlines would have a profitable business once the flights operation resumes from the city, which also caters to the needs of other adjoining districts and especially two industrial areas.

He said that the CATI director had informed that the airport runway is sufficient for small planes, while it needs to be expanded for big planes and this airport is the only one among smaller airports that has the facility of night flight operations.

However, red-tapism once again hatched conspiracy to keep Hyderabad on a downtrend andthe flight operations have been delayed for an indefinite period, owing to the excuse of the non operational runway, the HCCI president remarked.

He said that this decision of delaying flight resumption has created resentment and hopelessness amongst the people of Hyderabad, who have been denied of the modern day facility of air travels to and from Hyderabad. He also added that foreign investment is impossible for Hyderabad in the absence of an operational airport.

He noted that Rs6 million worth of tickets are being booked from the passengers of Hyderabad per annum, who are traveling from Karachi because of the closed airport. He called upon the Prime Minister and other quarters concerned especially the speaker national assembly and finance minister to make their efforts for resuming the flights as per schedule on 3rd August. Otherwise, HCCI would devise further course of strategy of protest. He said that a PIA local official informed him about the withdrawal of the flight schedule, but termed the decisions as injustice with the people of Hyderabad and other close by districts.

It is not clear why bureaucracy is creating these hurdles because when flight operations would resume from Hyderabad it will bring profit and revenue for the government, he wondered. The airport is handling VIP flights on a regular basis but is closed for domestic flights since the last eight years and the District Nazim also criticised the decision of a change in schedule of flight resumption.

The HCCI representatives said that they have also condemned the statement of the defence minister in the national assembly that there is no plan for opening the Hyderabad airport. It is not clear why the government is taking one decision and withdrawing the other as in this case, because PIA issued the schedule and now it is CAA which is showing reluctance. The same happened in 2006 when CAA agreed but the national carrier was not ready to resume, a member of the HCCI told The News on Monday.

http://www.thenews.com.pk/arc_news.asp?id=3


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## Neo

*Senate body to discuss revival of Karachi Circular Railway project​*
ISLAMABAD (July 29 2008): Senate Standing Committee on Environment would review the possibility of revival of Karachi Circular Railway project in Karachi in its meeting on Thursday, said a press release issued here Monday. The meeting would be chaired by Senator Muhammad Ali Brohi, Chairman of the committee.

The committee has taken serious notice of the closure of the project by the previous regime and recommended that the project should be restarted as this is an essential project to solve the traffic problem of the City of the Quaid.

The committee will also review the issue of vacation of five depots allocated by city district government, Karachi to be used for CNG bus stations in the CNG us project sponsored by Federal Government, presently in occupation of Pakistan Rangers, Sindh.

The members of the committee include Senators Hafiz Abdul Malik Qadri, Shuja-ul Mulk, Bibi Yasmeen Shah, Dr Abdul Khaliq Pirzada, Jamal Leghari, Sardar Mehmood Khan, Maulana Rahat Hussain, Mir Mohabbat Khan Marri, Farooq Hameed Naek, Syed Muhammad Hussain and Senator Muhammad Saleh Shah with Minister for Environment Hameedullah Jan Afridi as its ex-officio member.

Business Recorder [Pakistan's First Financial Daily]

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## Neo

*PIA flights from Hyderabad to capital from 19th ​* 
Saturday, August 02, 2008

KARACHI: A PIA spokesman said on Friday Hyderabad being the second largest city in Sindh needs to be connected with Islamabad and Lahore. 

Based on potential traffic and to fulfill the long outstanding demand of inhabitants of Hyderabad and adjoining region, twice weekly flights with ATR aircraft have been planned between Hyderabad and Islamabad and Lahore via Nawabshah where refueling is available. 

This way both the cities of Hyderabad and Nawabshah will be connected to Lahore and Islamabad, the spokesman said.

According to him, the CAA has confirmed that Hyderabad Airport will be ready for operation on August 18, so the first flight to Hyderabad will be operated on August 19. 

The spokesman recalled that air service to Hyderabad was introduced in 1966 which continued till 2000. At that time, he pointed out, Pakistans road network was quite inadequate and improved significantly with the passage of time paving the way for availability of cheap and convenient surface transport.

Resultantly, he said, the air travel decreased as passengers shifted to surface transport which resulted in a decline in PIAs revenue. 

This was not a profitable route as the aircraft had to be flown almost empty for refueling at Karachi and positioned back at Hyderabad to operate to Lahore and Islamabad and this route was, therefore, discontinued in 2000.

PIA flights from Hyderabad to capital from 19th


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## Neo

Edited, wrong thread.


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## Neo

*Infrastructure projects​*
EDITORIAL (August 04 2008): The Infrastructure Project Development Facility (IPDF) in a summary sent to the prime minister has proposed transfer of around 20 PSDP projects worth Rs 165 billion in various sectors to it, as involving private sector investors would save a huge amount of public money.

The government, which is facing formidable challenges on the economic front, will be greatly relieved, IPDF chief Murtaza Satti has said while chairing a high-level meeting in Islamabad. The projects that are proposed to be transferred to IPDF include, among others, the construction of IT Parks in Islamabad and Karachi, upgradation of PIMS Hospital in Islamabad, the construction of Rawalpindi Bypass, Faisalabad-Khanewal Expressway, the Peshawar-Torkham Highway, and JPMC Karachi Medical Tower.

The government, badly hit by rising inflation and soaring oil prices, has allocated Rs 165 billion for these projects, out of a total of Rs 540 billion PSDP funds earmarked for the financial year 2008-09. According to IPDF chief, the agency is attracting foreign as well as local funding from the private sector for various mega infrastructure projects.

Initiated in Britain, the public-private partnership concept has been adopted by many developed states and has yielded impressive results in the execution of multiple projects, especially in education, transport and health sectors. The proposal is essentially a good move, as infrastructure is the weakest area of the economy, and a major chunk of allocations made under PSDP has invariably been allocated to this sector.

Billions of rupees of public money has been "utilised" on uplift schemes over the years. According to one estimate, Ecnec approved a total of 649 mega projects covering all sectors of the economy, at an aggregate cost of Rs 2.441 trillion, between 1999 and 2007. These included the largest number of projects, ie, 403 worth Rs 1903 billion in infrastructure sector, 207 worth Rs 466 billion in social sector, and 39 projects worth Rs 72 billion in other sectors.

The proposal floated by IPDF chief for transfer of 20 PSDP projects to his department, to be executed under public-private partnership, is apparently a sound idea, provided IPDF can ensure high quality and timely implementation of the schemes. Secondly, a concept that has worked admirably well in the developed countries may not work equally well in our social and lax administrative environment.

Thirdly, local private sector investors may not be able to manage the financial and professional wherewithal to ensure high quality execution of projects that can stand the test of time. It is true that private sector investment in such projects will surely relieve the government of financial burden, but the professional and financial antecedents of private sector parties to be inducted into partnership will have to be thoroughly scrutinised before any such ventures are launched.

Execution of schemes under Public Sector Development Programme has often resulted in huge cost overruns, due largely to lethargic pace of implementation. A factor that has stymied implementation of projects has been the mid-way re-setting of PSDP priorities, which at times seem to be influenced by personal preferences. Further, the mismatch between public sector's restricted delivery capacity and the government's wish to execute mega projects, particularly in the infrastructure sector, has frustrated realisation of the goals.

Our water, power and industrial sectors have especially had to sustain the negative impact of paucity of infrastructure. Starting cost-effective and efficient implementation of public-private partnership projects will undoubtedly be a move in the right direction, if strict monitoring of quality and pace of implementation is ensured. Meanwhile, the existing infrastructure is unable to satisfy the demands of development arising out of economic growth, and is holding back the country's progress.

The public sector has long been the main provider of basic infrastructure, but a large fiscal deficit has restricted the government's capacity to meet the country's growing infrastructure needs, and improve the investment climate. Obviously there is a need for the government to create an enabling environment for augmented private sector involvement.

Many analysts believe that as infrastructure has relied more on private resources, capital market is robust enough to sustain large-scale infrastructure financing. Public sector investment in infrastructure has in fact decreased as a percentage of GDP since the start of the decade, while private investment has failed to fill the resulting vacuum.

A major obstacle to attracting private sector investment in Pakistan has been the lack of institutional and regulatory capacity. Secondly, the existing governmental structures are unable to provide a liberalised environment of broad private sector participation. Other problems include a sluggish pace of reforms, shortage of skills and mechanics for interaction with the private sector, and the risks in the domestic capital market. The government should take immediate steps to address these issues if it wants full private sector involvement.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*Nazim seeks ADB's $800 million investment in Mass Transit ​*
KARACHI (August 05 2008): Nazim Karachi Syed Mustafa Kamal on Monday stated that 800 million dollars to be provided by Asian Development Bank (ADB) for mega projects, which previously were to be implemented in various sectors, but now will be spent on Bus Rapid Transit (BRT) system of Mass Transit so that the city's transport problems are solved on a fast track basis.

He was talking to Arif Parvez, who heads Pakistan Chapter of Clinton Foundation, and who met him here on Monday. The two had an exchange of views on matters of mutual interest besides development in various sectors, particularly mass transit system.

Mustafa Kamal pointed out that mass transit is a mega project having different sectors. However, its BRT system can be developed in a short time. With the start of work, the BRT system can be developed within 12 to 18 months as its entire study and survey had already been completed.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*CAA seeks to derive 40pc income from commercial activities ​* 
Friday, August 08, 2008

KARACHI: Development of seven airports is under way while work on mega airport city projects, which will make Karachi and Lahore hubs for transit flights, will start shortly, said Farooq Rehmatullah, Director General of Civil Aviation Authority (CAA).

Besides this expansion to cater to more passengers and aircraft, the aim is also to commercialise the airports to shift CAAs revenue stream in favour of non-aeronautical earning, he added.

Civil aviation authorities around the world derive 40 to 60 per cent of their income from commercial activities, he said in an interview with The News.

This income, which is earned from duty-free shops and shopping malls at airports, was only 20 per cent in case of Pakistan when Rehmatullah took over the helm of affairs as the aviation regulator and airport manager two years back. Now it has increased to 30 per cent. Our ultimate objective is to take it to at least 40 per cent, he said.

Increase in commercial revenues help authorities reduce aeronautical income, which comprises mostly of charges airlines pay for using a countrys airspace. Subsequently, such destinations become more lucrative for airlines to land.

Among the airports, which are being developed, the New Islamabad International Airport is the flagship project of CAA. Being built at a total cost of Rs50 billion, it will address the problem of air traffic congestion in the capital. 

Similarly work on other neglected airports has been initiated as well, he said, referring to construction of new terminal building at Skardu airport, provision of snow moving equipment at Chitral airport, inclusion of Khyber Road on the premises of Peshawar airport to provide for more aircraft parking space and extension of Lahore airport. 

Besides the development of airports, CAA has also embarked upon changing the decades old radars installed at major airports. The induction of new calibration aircraft will help CAA maintain the accuracy of aircraft guidance system at home and sale calibration services to other countries. 

But for Farooq Rehmatullah, whose tenure comes to an end later this month, the triumphing achievement was changing the working environment in the lethargic organization. 

One thing which was lacking (in CAA) was that there was traditional government way of working where a file moves through 10 people and yet decision was not taken, he said. We are now implementing ERP (enterprise resource planning) system, which will be in place within next 18 months. 

This, he said, will assist the management in taking sound decisions and provide required information at push of a button. 

The tedious file culture and lengthy clearance procedures had also long barred cash resourceful CAA from investing in development projects. 

Our capacity to invest was only Rs500 million to Rs800 million a year, a budget of more than this always lapsed, he said, recalling that in his first year he fixed capital expenditure of Rs4 billion but hardly Rs1 billion could be spent.

The problem was that there were 27 steps that a proposal had to go through. By the time the steps were completed, the year had passed. So, now we have brought those down to 7 and as result of that this financial year we have spent Rs6 billion.

CAA has also prepared a five-year business plan, which seeks to increase its revenues to Rs30 billion from current Rs13bn. 

For Rehmatullah, ex-Chairman of Shell Pakistan, restructuring of CAA was a task he thinks he has achieved. Under the restructured model, the three core areas of regulatory, airport services and navigation have been separated. This, he says, is now helping each department to achieve their targets and has improved the decision making process. 

However, growth in domestic traffic has not resulted in much needed increase in number of flights. While CAA might have succeeded in signing and renewing air services agreements with many countries, not much has happened on this part either. 

It is a commercial proposition, he said, adding, If you make money you jump into the business. But this year airlines are losing money and that has dampened growth.

During last year growth in domestic air traffic has been negative 2-3 percent due to lack of capacity, he said. Air blue pulled two of its aircraft, Aero Asia was grounded and PIA grounded its 747 aircraft. So the overall capacity was reduced.

A new and liberal aviation policy introduced last year will address some of these by liberalising countrys airspace and increasing competition. The draft (of the aviation policy) will be presented to the cabinet for approval anytime now.

Asked if he was not worried that most of the projects launched under his command were in their infancy and could be affected by his departure, he said: Leaderships primary responsibility is to prepare a successor and I have done that.

CAA seeks to derive 40pc income from commercial activities


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## Neo

*CAA spending Rs 9bn on development initiatives​*
KARACHI: As part of its ongoing efforts aimed at upgradation of airports across the country, the DG CAA, Farooq Rehmatullah inaugurated the new Flight Information Display system and CIP Lounge at Jinnah International airport here on Wednesday.

The old flight information display system was inherited with the inception of Jinnah International Airport in 1992 and since it became obsolete, CAA decided its upgradation and also to extend vital passenger facility to more locations for assisting passengers during their journey. Speaking at the opening of CIP Lounge, Farooq Rehmatullah said that CAA has allocated Rs 9 billion in ADP 2007-2008 for expansion and improvement of airports nationwide as CAA aspires to improve its airport services and become benchmark in terms of providing facilities at all airports.

The CIP lounge on 4700ft has been lying unutilised and now is refurbished on the instruction of DG CAA at a cost of Rs 13 million completed in 15 months.

Highlighting the detail of different projects initiated by CAA, Farooq Rehmatullah said upgradation and renovation of different airports across the country was in progress. New terminal building at Multan airport, parking facilities for wide body aircrafts at Peshawar airport, installation of Instrument Landing system (ILS) at Quetta airport, upgradation of Radar, are some of CAA initiatives in order to be at par with international standards.

Daily Times - Leading News Resource of Pakistan


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## Neo

*NWFPs focus on infrastructure​*
THE NWFP government has doubled the size of its investment for improving the industrial infrastructure this year amid worsening law and order situation and poor energy supply.

Under the Annual Develop-ment Programme (ADP), devised by the ANP-led coalition government, the allocation for infrastructure projects has been increased to Rs1.24 billion from Rs566.6 million last year.

A total of 60 projects will be financed which include 24 ongoing and 36 new. These projects will get a major portion of the ADP allocation. A big part of the funding will go to improve the industrial estates existing infrastructure (mainly roads) and expansion of small industrial estates in Peshawar and Nowshera, procurement of land for proposed China-Pakistan Economic Zone at Hattar and the Export Trade Centre at Peshawar.

Likewise, the setting up of combined effluent treatment plants at Hattar and the Peshawar industrial estates, feasibility studies for setting up of chemical-based industries in southern areas, trucking terminal at Peshawar and an industrial estate at Kohat are also part of the new programme.

The government is attaching high priority to the industrial sector this time, says an official at the Planning and Development Department (P&DD).

The official argues that the industrial sector has great potential for creating badly needed jobs. The poverty ratio in NWFP, according to the World Bank estimates, is 38.1 per cent, the highest among the four provinces. Likewise, 39.73 per cent of the total NWFP population is civilian labour force out of which 35.04 per cent is employed. On the other hand, at the national level, 46.01 per cent of the population is in civilian labour force, of which 43.16 per cent is employed.

The rate of unemployment in NWFP is 4.7 per cent as compared to 2.85 per cent at the national level.

The province can attract fresh investment, if its infrastructure is good enough, since it has different indigenous raw material that can help in setting up of new industries, opines an official.

But industrial stake holders are not impressed. For them, the worsening law and order situation in the aftermath of military action going on in different parts of the province, is the major worry.

A Peshawar-based industrialist was kidnapped some three months back, and the police are still clueless about his whereabouts. This has created a sense of insecurity among the business community.

Industrialists say the situation is going from bad to worse which will result in massive transfer of investments to other provinces.

Nauman Wazir, the IAP president, says that every industrialist in HIE is paying Rs20,000 to Rs50, 000 as monthly contribution to keep in place the security system.

Poor condition of electricity and gas supply is also a major concern for the industrialists, which, they say, has not been taken up into consideration so far in the formulation of the provincial ADP.

None of the 90 grid stations in the NWFP has surplus electricity that can be supplied to the existing industrial units, he says and adds that at least 12 industries at the HIE have applied for increase in electricity load, but the Peshawar Electric Supply Company (PESCO) does not have the capacity to meet their power demand.

Likewise, a number of industrial zones such as Bannu do not have proper infrastructure, which should have been focused instead of going for setting up new industrial areas.

Being at the tale-end of the gas distribution network of Sui Northern Gas Pipeline Limited (SNGPL), industries of the Frontier province are the most hit in winters, when public utility disrupts gas supply to balance the demand and supply gap.

To overcome this problem and ensure uninterrupted supply of gas from the nearby Shakardara and Gurguri gas fields, the provincial government had planned a separate pipeline to Peshawar some three years back. But, the project exists on papers only.

The government should have taken steps for the execution of this long-awaited project, says Mr Wazir.

NWFPs focus on infrastructure -DAWN - Business; August 11, 2008


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## Neo

*PIA crafts financial recovery plan​*
** Loss of Rs 11.5 billion expected despite the measures​*
By Sajid Chaudhry

ISLAMABAD: To counter the effect of oil price spike and depreciation of Pakistani rupee, Pakistan International Airlines has put in place a financial recovery plan, reveals an official document submitted to the Senate Standing Committee.

Revenue generation from passenger business would generate additional Rs 3.413 billion whereas from cargo business, an additional Rs 308.1 million will be generated during June-December 2008.

According to the document, actions have been taken for improving revenues in the areas of marketing, cargo revenue and operating plan.

The 2008 marketing plan has set a challenging target for passenger revenue growth of 15 percent and cargo revenue growth of 21.5 percent along with many important measures. These measure are: increase in seat factor from 70.4 percent to 75 percent, increase in cargo yield by 12.2 percent and improvement in load factor by 4 percent.

Despite these measures the airline is expected to lose Rs 11.5 billion during 2008. These losses would further increase due to the continued rise of fuel prices and recent depreciation of rupee. In order to cover this widening gap, some additional measures have been planned.

Revenue generation from passenger business: Fuel surcharge on international routes imposed on April 16, 2008 that is expected to generate Rs 848 million, fuel surcharge imposed on May 1, 2008 that would add Rs 700 million, Increase in Umrah fare with effect from May 1, 2008 to yield Rs 90 million, fuel surcharge imposed on international flights on June 1, 2008 to generate Rs 726 million, Umrah fares were again increased on June 1, 2008 to generate additional revenue of Rs 357 million, additional fuel surcharge was imposed on United Kingdom routes from June 1, 2008 to generate Rs 315 million and fare increase ex-Jaddah with effect from June 16, 2008 to add Rs 94 million, air fare increase ex-Pakistan was implemented on June 1, 2008 to further increase revenues by Rs 283 million.

Revenue generation from cargo: To increase revenues from cargo activities during June to December period of year 2008 some 8 measures were taken, which are: 17 percent increase in fuel surcharge ex-Pakistan from June 1, 2008 worth Rs 99.2 million, 50 percent increase in domestic tariff was also introduced from June 1, 2008 that would add Rs 78 million, 200 percent increase in fuel surcharge on domestic sales was introduced by March 14, 2008 providing net addition of Rs 16 million, some 8 percent to 33 percent increase in Speed Ex rates was implemented on June 1, 2008 to generate Rs 14 million. Apart from the said initiatives, two new cargo products were introduced in June 2008 i.e. Max Load to generate Rs 23 million, Premium Freight to generate Rs 19 million additional revenues. Cargo revenue will be increased by adding new flights long haul and Short haul to provide net additional revenues of Rs 7.7 million till end December 2008.

Operation Plan: Retrieval of grounded B-747-300 fleet would help allow higher revenue potential during Umrah and adequate capacity for Hajj. Further steps are being also planned which include review of operational procedures to save flight time and fuel, seeking more direct approach for landing and En-route savings.

Direct Approach: Civil Aviation Authority has evolved a draft instrument that would save an average of 125 kg fuel on each air bus A310 approach whereas, an average of 85kg on each Boeing 737-300 resulting in saving of Rs 40 million. In case PIA gets landing clearance of radar vector for direct approach, this would help saving 5 to 6 minutes on each landing at Islamabad and save around Rs 75 million.

En-route Savings: PIA operates westbound flights to Middle East from several gateways, all these flights (except from Karachi) pass through Iranian airspace. For a short transit leg of 33 n-miles, PIA pays $50 for Iranian airspace. Through re-routing the flight, the airline can save these charges and can save around $270,000 per annum.

Additional operational measures: Permission for carrying passengers on domestic leg of international flights has been approved by tax authorities. By implementing this measure, extra capacity of 900 seats per week will be available on Karachi-Lahore route alone, similarly, extra capacity of 1000 seats per week will be available on Lahore-Karachi route. Through these measures, additional revenue for 2008 would be Rs 150 million in just 6 months. Some 5 dead leg flights have been eliminated i.e. PK354, PK 364, PK 314, PK 367 and PK 317, which will save Rs 200 million in 6 months.


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## Neo

*Pakistan Deep Water Container Port: KPT Board dissatisfied with $1.6 billion project​* 
KARACHI (August 15 2008): The newly reconstituted board of Karachi Port Trust (KPT) has expressed strong reservations over the feasibility of the $1.6 billion Pakistan Deep Water Container Port (PDWCP) project, Business Recorder learnt on Thursday.

According to sources a majority of the board members, at its August 13 meeting at KPT Headquarters, have observed that the mega project, which is envisaged as a transhipment hub catering to the needs of the 6th and 7th generation container ships, was lacking a "proper hydraulic study".

"The Board could not develop consensus on the feasibility of the proposed port and has asked KPT to arrange a detailed presentation of the consultants (M/S Royal Hoskonigs) and China International Water & Electric (CWE) in the next meeting," they added. KPT has tasked CWE to conduct capital dredging for the project.

The 10-member Board also observed that the KPT's flagship project, which involves dredging and reclamation volumes of more than 34 million cubic meters (mcm), was yet to got a clearance from the environmental organisations, like Pakistan Environmental Protection Agency (PEPA), the sources added.

"The board has also asked for details on the repercussion of infill or siltation (present annual ratio of which stands at around 1.5 to 2 mcm) after carrying out capital dredging for the project," they said.

The project, the sources said, was forwarded to the Board after being approved by the Departmental Tender Committee (DTC) and Board Tender Committee (BTC) last week.

They said the project consultants, M/S Royal Hoskonigs, had already declared location for the establishment of the proposed port, which involves construction of 10 deep draught berths of 18 meter depth with 5,000 meters of quay wall at Keamari Groyne, as "wrong" in its first presentation last year to the then KPT Chairman Vice Admiral Ahmed Hayat.

M/S Royal had observed that water current, wind and sea waves at the proposed breakwaters were so high that a 70-tonnes pusher tug could not prevent a skidding of a new generation vessel carrying at least 8,000 TEUs from facing an accident in case of engine failure, the sources said.

They claimed that the former chairman had, however, ordered the consultants "to make it happen" at any cost on which the latter had asked the KPT to make a new breakwater at the proposed site. Making a new breakwater, the sources said, would almost double the cost of project.

The sources said a feasibility study by M/s H.R Wallingford, consultants for Deepening of Channel project, had proposed "Manora Island" as the best location for PDWCP. They said the study had argued that due to its geographical proximity to the proposed Cargo Village a port at Manora Island would help KPT save billions of rupees it was planning to invest on the construction of Port Bridge for hinterland connectivity.

Further, this would also help the profit-loving KPT to pay less money in terms of capital dredging as the proposed site (spreading over Sector I, II and III), and would require only 5 to 6 meters dredging as compared to Keamari Groyne where it would have to dredge a "hard soil" from the zero, the sources said. The quantity of dredging would also be reduced to almost half at the Manora site, they added. "The more dredging KPT undertakes the more increase it would have in the annual ratio of siltation at its port, which would ultimately lead to increase in its dredging activity and cost," said the sources.

KPT's former Deputy Conservator Noman Alvi had also rejected location of the proposed port as incorrect at Keamari Groyne near Sector I-II, the point where M/v Tasman Spirit and a rice ship M/v Emen had faced an unfortunate fate in the past, claimed the sources.

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## Neo

*Airblue adds two new A319 aircraft ​* 
Saturday, August 16, 2008

KARACHI: The new aviation policy will soon abe approved by the cabinet hopefully in its original form, said Deputy Director General Civil Aviation Authority (CAA) AVM Sajid Habib on Friday. Speaking on the sidelines of a ceremony held to mark the induction of two new A319 aircraft by Airblue into its fleet, he asserted the role of regulator in promoting both national and private airlines of the country.

With the induction of these two aircraft, the strength of Airblues fleet has increased to eight aircraft. However, the private airline had to abandon its plan of operating the new aircraft to Sharjah after the aviation authorities there withheld the permission.

Pakistans CAA is negotiating with its counterpart in Sharjah to resolve the issue, said AVM Habib. Airblue has reconfigured all its aircraft to all-economy model to save cost.

Airblue adds two new A319 aircraft

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## Neo

*KPT handles record cargo​*
KARACHI: Favorable government policies, conducive environment and concerted efforts, have galvanized cargo handling at Karachi Port Trust (KPT), as evident from the statistics of July 2008, a statement said on Monday. The total cargo handling at Karachi port in July 2008 recorded a gain of 19.18 percent. During the period, 3.54 million tonnes cargo was handled as compared to the 2.97 million tonnes in the corresponding period last year. Significant rise has been in the exports, primarily comprising of cement, clinker, molasses and ethanol. A total of 1.28 million tonnes were handled against 0.74 million tonnes last July. staff report

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## Neo

*Public private partnership vital to infrastructure development: Naveed​*
ISLAMABAD (August 21 2008): Federal Minister for Finance Syed Naveed Qamar has said that Public Private Partnership (PPP) is an essential option for infrastructure development to augment government's efforts and resources for the development of the country. Pakistan's structured programme and framework in this regard will help private sector participation in development of infrastructure projects in the country.

Syed Naveed Qamar made these remarks while chairing a meeting of the Board of Directors of the Infrastructure Project Development Facility (IPDF) in Islamabad on Wednesday.

The meeting was attended, in addition to Finance Minister Syed Naveed Qamar, by the Advisor on PPPs Ghulam Murtaza Satti, Board Members Dr Sania Nishtar, Salim Raza, Suhail Safdar, Secretary Planning Commission, Farrukh Qayyum, Secretary Finance, Aamir Qawi Acting CEO of IPDF. Additional Finance Secretary PMSP, and Joint Secretary PMSP also attended the meeting on special invitation.

The finance minister stated that co-ordinated efforts being taken by the Planning Commission under the leadership of Salman Farooqi, Deputy Chairman, Planning Commission, Ministry of Finance and IPDF would result in the promotion and development of infrastructure in the country. "Planning Commission and the Ministry of Finance are facilitating the enabling framework for the identification, evaluation and development of the infrastructure projects under the PPP modality," he said.

Naveed Qamar further stated that regional and global experience demonstrates that Public Private Partnership programme is imperative to revitalise and restructure Pakistan's economy. "We are committed to the principles of value for money and affordability for delivery of more, better, affordable and faster services to the people of Pakistan.

Ghulam Murtaza Satti said that a number of initiatives are already under way, including Environment Friendly Public Transport (CNG Buses) Service, Islamabad IT Park, Multipurpose Water Reservoirs, FBR Automation Project etc. As a result of combined efforts of IPDF, Planning Commission and Ministry of Finance, more foreign investment is expected in the infrastructure projects under public private partnership modality, he added.

The government recognises the Public Private Partnership as an essential option for infrastructure development in the country, there is a need to identify projects which can be launched under the Public Private Partnership modality to relieve the burden on the public sector in the immediate term. Public Private Partnership cannot be accomplished in a vacuum without the support of all the stakeholders including various government agencies, departments, private sector and most importantly the people of Pakistan without whose continued support and understanding, this process cannot be undertaken successfully.-PR

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## Neo

*Peshawar airport expansion plan in the offing: Ghani​* 
PESHAWAR (August 21 2008): NWFP Governor Owais Ahmad Ghani has said that a concrete plan was in the offing for expansion of Peshawar International Airport, saying a number of airlines have expressed willingness to start flights from Peshawar.

Addressing as chief guest at the Fifth Businessman of the Year Gold Medals and Export Trophy Awards held under the auspices of the Sarhad Chamber of Commerce and Industry, he said that on the completion of the expansion of airport the business community would be provided cargo services on vast level, adding a new railway alignment is being developed to link Jamrud.

The Gwadar seaport, the governor said, has become another major contributor towards generating economic activities in this province especially the Peshawar, which offers a lot of opportunities to the local entrepreneurs as well. Besides, he added, the entire region has to become energy corridor at the international level and there exists vast potential to generate more economic activities through this process in future too.

Regarding situation in Fata, he said the government is following a multi-pronged strategy to combat the menace of terrorism and militancy, especially in line with the nature of issues, the country is confronted and there is dire need that the entire nation must comprehend the gravity of the problems and play its due role in this respect.

Ghani particularly mentioned the situation in this province and Fata and said that dialogue process gets lead followed by carrying out rapid economic development activities with special priority to comparatively less developed areas and application of force when and wherever required to tackle law and order problems in any area.

It is because of our this strategy that the situation in South Waziristan, and Khyber Agencies as well as district Swat is much better as compared to few months back, he said.

Our direction is on positive lines and the situation is further improving gradually, he said. The situation in Bajaur Agency, he added, is also in the improving trend and not only the displaced people have started returning their homes but also ready to stand to practically support the steps being taken by the government against the militants. The Lucky Cement maintained its tradition of achieving maximum number of gold medals and awards and was adjudged the top most industrialist, importer and sales tax payer categories while the Gadoon Textiles; another industrial unit of the same investors was declared the top most income tax payer and awarded gold medal.

Similarly, the Khyber Trading Company also maintained its tradition and got the gold medal for becoming top most exporter while the General Trading Company was given the gold medal for becoming top most importer in the retail sector of the province whereas Muhammad Ali & Company achieved the gold medal for becoming top most income tax payer in the trading sector. Ibrar Sethi received the medal for being adjudged the top most income tax payer in the retail sector.

Amongst the banks, the MCB Ltd while maintaining its past tradition, achieved gold medal for its best export performance followed by the Bank of Khyber, which remained runner-up while the Bank of Al-Falah achieved the gold medal for its best performance in the import sector. The MCB remained the runner-up in later category as well. Awards were also given to different institutions and individuals both in the private and public sectors for their extra-ordinary performance in various categories of economy over the year.

The governor also highly appreciated the holding the awards ceremony and described it a glaring achievement on the part of the members of the Chamber. He also assured to continue his fullest support to further promote industrialisation and develop prospects for trade development in the province.

While congratulating the award winners, the governor described it a big achievement not only on the part of their personal capacities but the overall economic well being of the people of the province and the country and expressed the confidence that they would continue their struggle vigorously in future too.

Senator Ilays Ahmed Bilour and Awards Committee Chairman Zahid Shinwari also addressed the ceremony and highlighted the prospects for further promoting exports from this province as well as the hindrances and difficulties being confronted by the exporters in this respect.

Haji Muhammad Asif, President and Usman Bilour; another office-bearer of Sarhad Chamber of Commerce and Industry earlier, welcoming the guests highlighted achievements of the organisation. Referring to the importance of the event, they said, it is proving a great source of promoting healthy competition amongst exporters and entrepreneurs in a pleasant atmosphere. This time, it was added, a number of new categories have been added in the list of award winners which especially included the fresh fruits and vegetable exporters.

They also demanded for enhancement of the cargo capacity of PIA as well as special efforts to maintain law and order and ensure safety and security of businessmen. Besides a larger number of traders, industrialists, bankers, entrepreneurs and the government officials, ceremony was also attended by Senator Abdul Razzaq, provincial Senior Minister Bashir Ahmed Bilour, provincial ministers, Mian Iftikhar Hussain, Syed Ahmed Hussain Shah, Ahmed Hassan Khan, and Hidayatullah Khan.

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## General Fujita

Pakistan International Airlines starts service from Nawabshah and Hyderabad 
Thursday, 21 August 2008 01:28 daily.pk 
Pakistan International Airlines has announced to launch flights from historic cities of Hyderabad and Nawabshah to Islamabad and Lahore, starting from 19th.

Initially the PIA will operate two weekly flights, every Tuesday and Friday, spokesman of the airline said here on Wednesday.


He said that initially the airline would operate twice a week but it would be expanded with the passage of time in view of increasing the number of passengers.


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## Neo

*Exports come to grinding halt: imported cargo piling up at ports ​* 
KARACHI (August 22 2008): Whereas, the exports come to grinding halt, imported cargo is piling up at ports due to the non-availability of transport in the wake of continued wheel-jam strike by the cargo carriers.

The Karachi Goods Carriers Association announced strike for an indefinite period on Tuesday against the increase in diesel prices, 100 percent rise in toll tax by the government and rising incidents of truck hijacking in Sindh, besides non-payment of compensation for December 27 arsoning and looting.

The goods transporters parked over 10,000 trucks, container carriers and other loading transports on the Keamari and Hawksbay roads and announced that the strike will continue till the acceptance of their demands. "The goods transporters have refused to take the cargo from the ports to factories and factories to ports, therefore, the imported goods are stuck up at ports. The ready goods for exports are also lying at factories for last three days," exporters said.

Due to the strike thousands of containers have been stuck up at both ports including Karachi port and Port Qasim and importers are unable to take the delivery. "Our export consignments are also lying at our units for last three days and delay in the shipment would cause millions of rupees losses," they added.

They said although ships are coming to take Pakistani export cargo for their destinations, however export activity has come to a standstill and no movement of goods from factory to the port took place, which resulted in the delay in shipments. "Goods, which will be missing their vessels due to this strike, would need to be shipped by air by exporters in order to cater for customers," they said.

There's no import movement from the port, which will result in port congestion and heavy demurrage, they added. "The country's exporters especially textile sector is already struggling to increase exports but these strikes are causing great damage to exporters," they added.

On the other hand, the Sindh government has made it clear that the diesel price and compensation of December 27 carnage is the federal government issue, however, the transport department has assured the transporters that it will consider certain demands if they call off strike.

Acting chairman of Pakistan Hosiery Manufacturers Association Muhammad Khalid Mukashi has sent a letter to the chief minister, transport minister and provincial secretary transport by inviting its attention towards the goods transporters' strike. "A large number of PHMA members and other exporters are facing serious problems due to the ongoing goods transport strike," Khalid Mukashi said.

He said that due to the persistent strike, exporters are unable to deliver their export cargo to seaport, with the result the exports are missing the scheduled vessels. Unfortunately, exporters are denied any extension from their foreign buyers, consequently, such cargo will have to be sent through air , causing huge losses, he added.

He appealed to the government to intervene in the matter so that this strike is called off immediately to save the country from huge losses. Meanwhile, the acting Chairman, SITE Association of Industry, Zafar Ahmed has expressed serious concern over the transporters' strike and appealed to the Prime Minister, finance minister, Sindh governor and chief minister to look into the matter and resolve the issue immediately.

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## Neo

*Airblue starts Abu Dhabi to Lahore flights​*
KARACHI: Airblue started its flight operations between Lahore and Abu Dhabi on Monday with a 144-seater new Airbus A319 aircraft.

Airblue, now having the youngest fleet in Pakistan, will be operating four flights in a week that will be increased to a daily flight. To meet the ultimate market demand, Airblue will eventually increase to two daily flights to cater to the heavy demand of passengers from northern Pakistan to Abu Dhabi.

Recently, Airblue had inducted two new Airbus A319 aircraft in its fleet that had planned to deploy on the domestic and international sectors.

The induction of the two new aircraft has increased the size of Airblues fleet to eight aircraft including three Airbus A321s, three Airbus A320s and two Airbus A319s.

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## Neo

*Northern carriageway restoration approved ​* 
ISLAMABAD (August 28 2008): The Capital Development Authority (CDA) Board has approved restoration of the Northern Carriage Way of Kashmir Highway from garbage disposal point to Peshawar Morr Islamabad. The approval came in meeting held on Wednesday chaired by the CDA Chairman, Kamran Lashari.

Member, Finance, Kamran Ali Qurashi, Member, Planning, Raja Nowsherwan, Member, Engineering, Tahir Shamshad, Member, Estate, Brigadier Asad Munir (Retd) and Member, Environment, Mazhar Hussain were also present on this occasion. The meeting also discussed the charges for allotment of plots to Foreign Missions in Diplomatic Enclave. It decided that the matter would be finalised in the light of the instructions issued by the Ministry of Foreign Affairs.

The CDA Board also approved construction of the official residence for the speaker of the National Assembly of Pakistan. Further, it expressed their grief over the sad demise of the Director Administration, Gul Hussain who died of heart failure on Tuesday. Later, the meeting offered fateha for the departed soul and condoled with the bereaved family.

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## Neo

*AJK to build motorway network soon ​*
MIRPUR (August 28 2008): Azad Jammu Kashmir will soon have a grand highway-cum-motorway network, aimed at providing comfortable travelling facilities to the commuters and the AJK government has decided in principle to implement the plan under a phased programme, official sources said.

They told APP here on Wednesday that the AJK government has planned to establish a grand and latest roads network across AJK. Kashmir Highway Authority has already been established to execute the plan, they added. The proposed highways network of international standard from Keil to Bhimbher will be laid down by reputed and experienced construction companies including the contractors involved in the construction of the Silk Route linking Pakistan with China.

After completion of latest highways and motorway network across AJK toll tax system will be introduced in the area to collect the tax amount to meet onward expenditures of similar public welfare projects. Sources said that 'Slide Management System' has been introduced in AJK to make all AJK highways usable round-the-clock. They said that it is aimed to ensure interruption-free travelling facilities to the masses in the mountainous areas where travellers have to suffer long delays because of landslides.

Official sources said that experts including engineers involved in development projects of public welfare including roads and highways will have to declare life time of each projects. The AJK government has already warned that there would be no compromise on quality of the development projects in the liberated area.

The officials have launched a broad-based plan for speedy development and uplift of AJK in line with the means of modern construction with special focus to convert the area into a true model and welfare state under the spirit of Prime Minister Attique's broad-based vision of 'Green and Skilled Kashmir', sources added.

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## Spring Onion

U-571 said:


>



What ????  

are you trying to troll or is it that you cant absorb the Pakistani forum ??


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## Neo

*Infrastructure and energy sectors: consensus reached with US Chamber over boosting investment ​* 
ISLAMABAD (August 29 2008): US Chamber of Commerce and the Ministry of Finance have developed consensus on increased Pak-US commercial interaction for public and private sector development to progressively increase investment in infrastructure and energy sectors in Pakistan.

US Chamber of Commerce delegation led by Lieutenant General Daniel W Christman (Retd), Senior Vice President for International Affairs accompanied by Jay Collins, Chairman, US-Pakistan Business Council met Finance Minister Syed Naveed Qamar, here on Thursday.

The US delegation is in Pakistan to explore avenues for closer co-operation in commercial and trade sectors between the two countries. The US Chamber of Commerce represents US foreign business leaders whose efforts focus on development of leadership-to-leadership relationship on international issues affecting the business community.

The Finance Minister briefed the US delegation about latest economic and business development initiatives of government of Pakistan that not only focus strengthening of internal economy but also take stock of GoP's business and commercial relationship with regional states and the developed world.

US delegates discussed the possibility of adding to the frequency of business-commercial partnership between the two countries in the context of financial investors' perspective that would take the two allies further on way to expanded relationship.

The Finance Minister reciprocated the US delegation's viewpoint, adding that political scenario following post-September 2008 presidential elections in Pakistan would complete the democratic process and the country would attain substantial political stability that forms essential part of economic stability and progress. The GoP currently is geared to come out with a multi-pronged positive economic trends and policy framework - notwithstanding the ongoing global energy crisis - that would place the country at par with other stable developing countries' economies. Macroeconomic stability is primary agenda of the present government, the Finance Minister added.

The Finance Minister further informed the US delegates that during recent months GoP has taken certain hard fiscal decisions that potentially would impact attaining stable economic indicators down the road. Pakistan looks forward to working with the US in all economical fields in times to come, he stressed.

The delegation presented their country's financial community perspective on market economy, individual investors initiative for across the country investment which certainly take into account GoP's privatisation programme and other external investment portfolios being opened to the world.

The Finance Minister explained to the delegation Pakistan's financial instruments being put in place in all fiscal and economic sectors that take stock of all micro and macro issues prioritised on GoP agenda, which contains all market-based monetary incentives. He added that agriculture in Pakistan is an engine of economic growth and the government is fully committed to boosting it for achieving better crop yield, and Pakistan welcomes foreign investment in portfolio-based projects in all sectors of economy focusing energy, agriculture and infrastructural development.

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## Neo

*Rs eight billion project: Lowari Tunnel to complete next year ​*
ISLAMABAD (August 31 2008): Over 70 percent work of Rs eight billion Lowari Tunnel project on Nowshera-Dir-Chitral Road (N-45) has been completed and the project would be completed by next year, a source in National Highway Authority (NHA) told APP on Saturday.

He said that over 75 percent work of 9 kilometres each access road on both sides of the tunnel has also been completed. The 8.6 km-long rail tunnel will provide all-weather communication linkage to the Chitral Valley, which remains cut-off with other parts of the country in winter. It would also facilitate Pakistan's link with landlocked Central Asian state of Tajikistan via a narrow strip of Afghanistan. With its completion, distance between Peshawar and Chitral would be reduced to five or six hours from 12 or 14 hours, he added.

Work on the project started in 2005 and it was formally inaugurated by former President Pervez Musharraf in July 2006. A Korean firm is constructing around 9 kilometres long, 7.5 metre wide and 7 metre high tunnel. The source said that the project would be completed in two phases. In the first phase tunnel would be constructed while in the second phase a railway track would be laid, he added. He said it would be the biggest freight tunnel in Asia, adding that the project is a joint venture between Korean firm Sambu and some Pakistani firms.

It was more than 45 years back when first feasibility was taken up by the government in 1955 and the first construction was undertaken under the Frontier Works Organisation in 1975 during Zulfikar Ali Bhutto's regime. The FWO carried out tunnelling operation up to 500 meters but the then ruler President Ziaul Haq abandoned the project.

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## Neo

*Lufthansa ends Pakistan operation ​* 
Wednesday, September 03, 2008

KARACHI: German airline Lufthansa announced on Tuesday stopping all flights to Pakistan citing some unspecified commercial reasons.

In a statement, it said flights between Lahore and Frankfurt will close from October 25 without detailing the reasons for the move and just months after it had stopped flights to Karachi.

Lufthansa flights between Pakistan and Germany were launched in October last year. It currently connects Lahore to Frankfurt thrice weekly with an Airbus 300-600.

Passengers who are already booked on Lufthansa flights from Pakistan to Germany will be informed and rebooked to alternative flight connections via Lufthansa gateways.

The German carrier had stopped flights to Karachi earlier this year, just months after it resumed flights to Pakistan after a gap of almost nine years. It had rolled back its operations in 1998.

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## Neo

*Turkish Airlines keen to start daily flight for Pakistan ​*
ISTANBUL (September 10 2008): The Turkish Airlines, the national flag carrier, is keen to start a daily flight from Istanbul to Karachi, Lahore and Islamabad. This was stated by the Chief Executive Officer of the Turkish Airlines, Dr Temel Kotil, in an interview here.

He said that the Civil Aviation Authority (CAA) of Pakistan is being approached for seeking the necessary approval for this very purpose. Dr Kotil, who is also a member of the IATA Board, said that the initiation of the daily flights from Istanbul to the Pakistani cities will not only help spur the tourism and the commercial activities between Turkey and Pakistan but also the interaction between the people of our two brotherly countries.

Istanbul is the headquarter of the Turkish Airlines which has a fleet of 111 aircraft that include A340-300, A330, A321, A320, A319, B737-400, B737-800. Dr Kotil said that the Turkish Airlines was the fastest growing airline in Europe and that it had opened 24 new routes in the year 2006. He further pointed out that the airline was planning to add 11 more aircraft within this year.

Utku Yazan, the Country Manager of Turkish Airlines in Pakistan, who was also present on the occasion, said that currently there are four flights a week from Istanbul to Karachi but we desire a daily flight from Istanbul to Karachi, Lahore and Islamabad. Utku stated that the CAA of Pakistan is being approached for this very purpose.

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## Neo

*Deep Water Container Port project: KPT Board expresses reservations about competence of bidder ​* 
KARACHI (September 12 2008): The reconstituted Board of Karachi Port Trust (KPT) has postponed the approval of awarding the Rs 19.288 billion capital dredging contract to, what sources said, a 'deficient' Chinese firm.

According to official sources in KPT, the Board, at its Wednesday's meeting, decided to delay the award of a very important contract to M/s China International Water & Electric (CWE), which, according to the sources, lacks in experience, equipment and personnel, until further discussion on the matter.

They said the Board was deliberating upon "some queries" regarding different aspects of CWE's offers, particularly the proposed rates (average) that stand at Rs 310 per cubic meter for dredging and Rs 187.50 and Rs 447 per cubic meter for the disposal of 24 million and reclamation of 8 million cubic meter dredged material, respectively.

The rates offered by M/s China Harbour Engineering Company (CHEC), the only competitor of CWE in bidding process, stand, however, far greater at Rs 660, Rs 281.50 and Rs 444.70 for the same three jobs, said the sources.

The KPT sources said CWE had offered the rates almost nearer to that of "engineer estimates" of Karachi Port's operator. They said the Board was likely to meet again on September 24 for final decision. It may be mentioned here that CWE had offered the lowest bid of Rs 19. 288 billion against CHEC's Rs 33.229 billion.

According to sources M/s Royal Hoskonigs of UK, KPT's consultant for the $1.6 billion Pakistan Deep Water Container Port (PDWCP) project that is to be undertaken in three different phases of Dredging and Reclamation Work, Marine Protection Works and Construction of Quay Wall, has already expressed its concerns over the ability of CWE to undertake the big project.

They said after evaluating technical bids of the two companies Hoskonigs had observed that CWE was lacking in experience, equipment and personnel, which are the three important areas for undertaking the dredging and reclamation project.

The sources said according to the consultant CWE had no international exposure in rock dredging in the open sea and it was required to hire personnel with proper experience in undertaking international dredging contracts along with a high capacity CSD and Backhoe dredger for rock dredging.

They said that the consultant had also rejected the proposed plan of CWE as "inadequate" saying that it might not ensure a timely dredging of the hard soil. Despite all such shortcomings, the sources said, Hoskonigs had recommended that KPT could consider award of work to CWE on the condition that the bidder needed to improve in the categories of experience, personnel and equipment.

Earlier, the sources said the Department Tender Committee (DTC) had also disappointedly advised KPT that either discharge the tender or award it to the lowest bidder, as no improvement was in sight if the tender was re-invited. DTC had also asked KPT that before awarding the contract it should get assurance from the Chinese firm that it would be responsible for employing any personnel or equipment if a need arises sometime during the work on the project.

Surprisingly enough, the committee had also recommended award of the contract to CWE on the condition that it would ensure uninterrupted supply of compatible equipment and manpower and review the 50 percent foreign currency component which stands at Rs 9.282 billion at the rate of Rs 60.90 per US dollar. A KPT official, however, told Business Recorder on Thursday that the project consultant had approved CWE for the award of contract without any reservations.

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## Neo

*Financing of $750 million Port Bridge project: JBIC awaiting green signal from PC ​* 
KARACHI (September 13 2008): Japan Bank for International Co-operation (JBIC), which is keen to finance the $750 million Port Bridge project of Karachi Port Trust (KPT), is awaiting clearance from the Planning Commission of Pakistan (PC).

According to official sources in KPT, Japan Bank has expressed its satisfaction over the feasibility report of the cable stay bridge, to be built over the navigational channel at Karachi Port, which would connect the proposed Pakistan Deep Water Container Port (PDWCP) to the Cargo Village at western backwaters and onwards to the Northern Bypass and Lyari Expressway.

"The bank has approved our feasibility study and is ready to finance the bridge, but it is waiting for the concept clearance from the Planning Commission," said an official in KPT's Planning and Development Division. When asked about the reason that caused delay in the execution of the project, the official said it was due to a fast changing political scenario and the resultant change of government in the country.

The official said after being cleared by PC the proposals would go to the Economic Affairs Division (EAD) for further deliberations. He, however, made it clear that KPT was determined to ensure a timely completion of the bridge which would be the first of its kind in Pakistan and would be completed within four years.

According to sources KPT has envisaged the bridge to be higher than the San Francisco Golden Gate Bridge with a 68-meter air draft, 300 meter span and approximately six kilometres causeway length. They said this would be for the first time that KPT, which is a profitable semi-government institution, has since long not opted for any loan or grant for port development works, but would now get foreign loan for this project.

KPT had always used its revenues to develop its infrastructure and had embarked upon development of various projects from its own resources, they said. They said the bridge would have two causeways, the first to connect Manora to the Clifton's Defence area and Sandspit Road, while the other would extend further to pass over western backwaters M/s Leonhardt Andra and Partners of Germany are the engineering consultants for the project.

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## Neo

*$160 million deal signed with China to purchase railway engines ​*
MULTAN (September 13 2008): Chairman Railway, Kashif Murtaza has said that an agreement of 160 million dollar has been signed with China to purchase 75 railway engines which would be hand over to Pakistan very soon. He was talking to a press conference on Friday at a local hotel.

He said that very soon Multan Dry Port would be established with the co-operation of Railway Dry Port and private partners and Prime Minister Syed Yousaf Raza Gillani would lay down its foundation stone in between October 10 to 15.

He further said that very soon the railway hospital would be converted into a medical college with the aid of private partnership. To a question, chairman railway said that income would be earned from the railway stations by making them commercial with the help of private sector.

"Railway land would be made useful through proper planning and agriculture markets would be established on it," he said adding, so that the farmers could get more and more benefits from it. He said that Prime Minister has announced special measures for Multan and especially this dry port would be made functional within 6 to 8 months.

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## Neo

*Chinese company to carry out Multan airport extension work: agreement signed​* 
MULTAN (September 14 2008): Chinese firm Xinjialg-Beixin on Saturday signed an agreement with Civil Aviation Authority (CAA) for execution of Airport expansion project. Project Director Shen and Deputy Project Director Wang signed the agreement on behalf of Chinese firm, while Vikram S Sodha signed on behalf of CAA.

Briefing newsmen, Vikram and Airport Manager Shaukat Aslam told reporters that Rs 1.718 billion would be spent on the first phase of the project and work would begin from October 10, 2008, and it would include construction of new runway and apron.

They said that a cargo complex and airport of international standard would be constructed with an estimated cost of Rs 3.80 billion by June 2010. After that, Multan would be among the international airports and direct flights for Gulf states and cargo flights would be introduced.

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## Neo

*PIA to buy fuel-efficient aircraft ​* 
LAHORE (September 16 2008): Pakistan International Airlines (PIA) Managing Director Captain Ajaz Haroon has said that PIA will buy fuel-efficient passenger aircraft after disposing of existing aircraft that have outlived its operational life. He expressed these views while talking to newsmen at an iftar dinner hosted by PIA here on Monday.

Haroon said: "In order to come out of the financial crisis they have requested the government to take the ownership of its assets (especially its hotels in New York and Paris) that worth not less than US $1 billion." To a question, he said an amount of Rs 1.5 billion, which PIA owe to the Civil Aviation Authority, is disputed and would be settled soon.

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## Neo

*Government spending Rs 30 billion for improving infrastructure​* 
LAHORE (September 18 2008): Senior Minister, Raja Riaz Ahmad has said that the government is spending an amount of Rs 30 billion, during the current fiscal year, for improving socio-industrial infrastructure in Punjab. The purpose is to provide good living conditions to the ordinary people.

He was talking to various delegations of people and the political workers who called on him at his residence here on Wednesday. Raja Riaz informed that developmental resources are being utilised for improving necessary infrastructure in the province in a most transparent manner. Raja Riaz told that government is spending Rs 17.50 billion on roads development, Rs 15.23 billion for construction of public buildings and another some of Rs 6.76 billion on urban development. These expenditures are 38 percent greater than previous ADP's allocations.

The government is also spending Rs 1 billion on improving environment, he told. The government is also giving importance to improvement of less developed areas and some of Rs 7.50 billion has been earmarked for the composite development of southern Punjab, he informed.

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## Neo

*Total cargo handling registers 15 percent growth in July-August​*
KARACHI (September 19 2008): The total cargo handling at Karachi Port registered a growth of 15 percent during the bimonthly period July-August 2008, vis-a-vis the handling taken place at port during the corresponding period last year.

This year KPT has handled 6,624,000 tons of cargo, which includes the handling of 2,280,000 tons of exports and 4,344,000 tons of imports. Handling in the corresponding period last year was 5,757,000 tons with exports at 1,463,000 tons and imports at 4,294,000 tons.

The dry bulk cargo exports handling during the July-August' 08 period ended on upbeat registering a massive growth of 92.04 percent in comparison from that of corresponding period's handling last year. The KPT handled 941,000 tons of dry bulk exports, which remained 490,000 tons last year during the period under consideration.

On the imports front, the total cargo handling has rose by 1.16 percent during the July-August period this year in comparison to that of corresponding period last year. The major imports handling was the liquid bulk cargo, which remained at 1,836,000 tons against the handling of 1,484,000 tons in the corresponding period of the preceding year.-PR

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## Neo

*British Airways suspends flights​* 
KARACHI (September 22 2008): British Airways has suspended its flights to Pakistan after a deadly bomb attack on Marriott hotel in Islamabad, a private TV channel reported on Sunday. Talking to another private channel, Director General Civil Aviation said that he had no information regarding the British Airways suspension of flights to Pakistan.

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## Neo

*Lowari tunnel project to be completed next year​*
ISLAMABAD (September 25 2008): Over 70 per cent work of Lowari Tunnel project worth of Rs 8 billion on Nowshera-Dir-Chitral road (N-45) has been completed and the project would be completed next year. A source in National Highway Authority (NHA), Ministry of Communications told APP on Wednesday that over 75 per cent work of 9 kilometres each access roads on both sides of the tunnel has also been completed.

The 8.6 km-long rail tunnel will provide all-weather communication linkage to the Chitral valley, which remains cut off with other parts of the country in winter. It would also facilitate Pakistan's link with landlocked Central Asian state of Tajikistan via a narrow strip of Afghanistan. With its completion distance between Peshawar and Chitral would be reduced to five to six hours, he added.

Work on the project started in 2005 but it was formally inaugurated in July 2006. A Korean firm is constructing around 9 kilometres long, 7.5 metre wide and 7 metre high tunnel.

The source said the project would be completed in two phases. In the first phase tunnel would be constructed while in the second phase a railway track would be laid, he added. He said it would be the biggest freight tunnel in Asia, adding that the project is a joint venture between Korean firm SAMBU and some local firms.

It was more than 50 years back when first feasibility was taken up by the government in 1955 and the first construction was undertaken by Frontier Works Organisation (FWO) in 1975 during Zulfikar Ali Bhutto's regime. The FWO carried out tunnel operation up to 500 meters but the project was abandoned by the then ruler President Ziaul Haq citing financial constraints.

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## Neo

*Work on first IT Park at SSUET starts​*
KARACHI (September 24 2008): Work has started on the setting up of Pakistan's first Information Technology Park to be constructed on 200 acres of land by Sir Syed University of Engineering and Technology (SSUET) in the Education City, where land has also been allotted to reputed institutions like Aga Khan University, ZABIST, Sindh Madressah, Shaukat Khanum Hospital etc.

The progress of the gigantic project was reviewed in detail at a meeting held under the chairmanship of SSUET Chancellor Z.A. Nizami here on Tuesday. Yahya Waliullah, a former Provincial Secretary IT and Planning and Development has been appointed as Project Director for IT Park project. The meeting was informed that feasibility of the project has been completed and now the costing involved was is being revised.

Chancellor Z.A. Nizami made it clear that he wanted a proper feasibility based on international standards, as the quality of entire work would depend on it. He directed that feasibility, inter alia, must envisage the resources for funding besides outlining technical collaboration with International Organisations involved in such projects.

He advised the Technical Committee members to establish direct contacts with relevant IT organisations in Manglore and Hyderabad. He called for preparation of PC-I of the project for submission to government and said that it was time for quick action. Nizami said that while preparing feasibility study, previous studies made for the project should also be taken into consideration.

SSSUET Chancellor told newsmen that development work on 200 acres of land for IT park in Education City was in full swing and Master Plan being prepared. He said that under-ground sweet water had been explored at a depth of 560 feet while tree plantation is being carried out at a fast pace. He informed that necessary allocation for the project for fiscal 2008-09 has been made in the budget.

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## Neo

*Gwadar airport faces delay due to slow land acquisition ​* 
Wednesday, October 01, 2008

ISLAMABAD: The New International Airport at Gwadar faces inordinate delay because of a massive slowdown in the process of acquiring land for the project, a senior government official told The News.

The new airport that is to cost $200 to $250 million will be given international status and operate under the open sky policy. In the meantime, there are plans to improve facilities at the existing airport. The official said unfortunately, this vital project has hit snags at the preliminary stage of land acquisition.

Earlier, the cost of acquiring 4,300 acres of land for the project was approved at Rs1.05 billion, which has now swelled to Rs1.5 billion, a 50 per cent increase.

Now the Planning Commission has revised upward the price of land after the government of Balochistan informed the centre that its cost has increased. The land acquisition process should have been completed much earlier as this important project was supposed to come on stream in 2009. Now execution of the project will be delayed by about six months. Owing to delay, the overrun cost of the project would also increase.

Now the government has released Rs1.5 billion to complete the acquisition of land for New International Airport at Gwadar. The Civil Aviation Authority, which is the executing agency, has been asked to look for a private party to initiate the construction process of the New International Port once the land acquisition process is over.

To a question the official said that the New International Airport will be constructed at Gurandari, 26 kilometers east of Gawadar city. This airport will provide speedy traveling to the investors coming in and going out of the port, which will be the hub of business activities in the region.

The official went on to say that Gwadar is located on the southwestern coast of Pakistan, close to the important Straits of Hormuz, through which more than 13 million bbd of oil passes. It is strategically located between three increasingly important regions of the world, the oil-rich Middle East, heavily populated South Asia and the economically emerging and resource-rich Central Asia.

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## Neo

*Govt to build shipyards in Karachi & Gwadar​*
ISLAMABAD: The federal government has decided to build shipyards in Karachi and Gwadar to meet the growing needs of shipping lines.

A committee has been constituted to finalise the sites for building shipyards and submit its report before the policy board within two weeks for final approval.

Prime Minister Syed Yousuf Raza Gilani, while expressing governments resolve for the development of shipbuilding industry in Pakistan, said that the setting up of two shipyards at Karachi and Gwadar would go a long way in catering to domestic as well as international needs.

The Prime Minister observed this while chairing a meeting to review the progress on the development of shipbuilding industry in the country here at the Prime Ministers house this afternoon.

The Prime Minister constituted a committee under the chairmanship of the Minister for Ports and Shipping, Qamar Zaman Kaira, to finalise the sites for building shipyards at Karachi and Gwadar.

The Prime Minister emphasised upon the need to make Pakistan a leading shipbuilding country of the region thus contributing towards economic development and poverty alleviation.

While highlighting Pakistans unique geo-strategic location and trained manpower, the Prime Minister said, advantage needs to be leveraged to enter into shipbuilding industry in a big way through joint venture with reputable international shipyards. He said shipyards not only generate employment opportunities but also develop wide range of ancillary industries.

Earlier, MD Karachi Shipyards briefed the Prime Minister about the progress made on the development of shipbuilding. He also apprised the Prime Minister that two world-class shipyards on Joint Venture basis are proposed to be built at Gwadar and Port Qasim.

Minister for Ports and Shipping, Qamar Zaman Kaira, Chief of Naval Staff, Admiral M. Afzal Tahir, Secretary Defence Production, Secretary Ports and Shipping, Secretary Planning, Secretary BOI, MD Karachi Shipyard also attended the meeting.

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## Neo

*Government to meet infrastructural needs through PPPs: strategy adopted​* 
ISLAMABAD (October 01 2008): To provide relief and food security to the common man, the democratically elected government has adopted a new strategy to meet the country's infrastructural needs through public-private partnerships (PPPs).

Emphasising the importance of initiating new infrastructure projects with the active participation of the private sector, the Deputy Chairman of the Planning Commission, Salman Farooqui on Tuesday while chairing a meeting, asked the Infrastructure Project Development Facility (IPDF) and the Board of Investment (BOI) to take lead in developing such projects taking into account PPPs modalities.

Ghulam Murtaza Satti, Advisor IPDF, said that the government recognises the importance of improving and expanding infrastructure services for sustaining economic and social development of the country. Speedy development and execution of the infrastructure projects embodied in the country's medium-term development framework, he said. The government has chalked out a strategy which envisages to cover less than 50 percent infrastructural investment needs through public funds and to meet the remainder through PPP modalities.

Satti said that during his recent visit to the USA, President of Pakistan, Asif Ali Zardari chaired a conference of the Friends of Pakistan and the participating countries, while assessing Pakistan's needs, estimated an overall gap of 15 billion dollars in the public fund and committed to help Pakistan to come out of its economic hardships.

He said, many countries, in particular Abu Dhabi, America, China and Saudi Arabia as well as the European Union, have expressed their keenness to invest in the infrastructure development projects in Pakistan. There is, however, the need to promote specific projects to attract foreign direct investment, he added.

Public-Private-Partnership is an alternate method of procurement for the public sector in which the private sector capital and management is embodied to plan, implement and operate an infrastructure project.

The PPP mode has now become an integral component of Pakistan government's overall strategy for the provision of public services and public infrastructure across for sustaining economic and social growth, poverty reduction and job creation. The major benefit of PPP modalities is that the initial financial expenses for the project to be borne by the private party, thereby involving minimal public capital expenditure.

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## Neo

*Multan Dry Port ​* 
MULTAN (October 06 2008): Prime Minister Syed Yousuf Raza Gilani would lay the foundation stone of the Multan Dry Port near Sher Shah Bypass on October 15. Sources said that the railway administration has completed all the arrangements in this regard.

On the other hand, the railway sources told Business Recorder that no schedule has been announced by the railway ministry or railway headquarters regarding the arrangements of the ceremony of the foundation stone.

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## Neo

*Lahore Rapid Mass Transit System: Pakistan asked to complete PPP transaction ​* 
FAISALABAD (October 06 2008): Asian Development Bank has asked the Government to complete Public-Private Partnership (PPP) transaction for Private Sector Concession by October 2009, while ADB multi-tranche financing facility loan will be approved for public sector investment by December 2008 for Lahore Rapid Mass Transit System Project.

According to official sources, the Government understands that developing the Lahore RMTS with a PPP would provide an opportunity to improve the overall efficiency of the system. A PPP provides the Government with an opportunity to efficiently allocate risks between the Government and specialised private firms.

This means that risks will be controlled and influenced by the party that is best placed to control and influence these risks.

A PPP, however, would not make sense for the Government or private sector if either party were bearing risks that are better handled by the other. This means that a well-structured PPP is essential to achieve the objectives expected from a PPP.

ADB experts citing examples of key issues that need to be resolved as part of structuring a PPP transaction, include the following:

(i) Public versus private funding. The passenger fares that the Government plans to charge for the green line will not cover the full cost of building, operating, and maintaining the line. The Government will need to subsidise a portion of the capital costs. What portion would be funded by the Government, where would these funds come from, and how would these funds be paid are key issues to be resolved.

(ii) Ridership risk. While the Government should bear part of the ridership risk, the private operator should also have incentives to maximise ridership. Thus the private operator should bear a portion of the ridership risk. What portion and under what terms are key issues to be resolved.

Prior to consideration of ADB project financing, ADB should update project reports mentioned. Engagement of a transaction advisor is required to formulate financial structuring, undertake detailed due diligence, and package the Lahore RMTS to attract private capital and management.

The transaction advisor, in close consultation with ADB and the Government, will help prepare and launch a PPP transaction for the green line. ADB is willing, in principle, to partly finance the public-sector-financed portion of the Project under the multi-tranche financing facility modality.

ADB experts disclosed that the transaction advisory work will be carried out in three phases: preparation, implementation, and negotiation. During the preparation phase, the transaction advisor will carry out technical and legal due diligence, design the detailed structure and terms of the transaction, market the transaction with potential investors, and develop prequalification and bidding documents as well as the necessary contracts.

During implementation, the transaction advisor will assist the Government in obtaining any approvals and permits required, pre-qualifying potential investors, carrying out the bidding process, evaluating proposals, awarding the contract, and holding negotiations with lenders. During the negotiation, the transaction advisor will support the Government and winning bidder reach financial closure.

*PHASE I, TRANSACTION PREPARATION: *

The transaction preparatory work will include technical, legal, regulatory, financial, and safeguards due diligence in support of the proposed transaction. The transaction advisor will lead efforts to market the transaction, including tasks such as (i) preparation of initial marketing document, an information memorandum, and presentations; (ii) preparation of a list of investors that have the qualifications and experience to be the project counterpart; and (iii) consultations with potential investors and lenders to share information about the Lahore RMTS. The transaction advisor will also advise on progress made in preparing the transaction; and review feedback on the design of the transaction. International road shows may be required.

*Phase II, Transaction Implementation*

The transaction advisor will assist the Government in obtaining or issuing the necessary permits or approvals needed for implementing the transaction for the Project. These might include approval to (i) create and fund a subsidy account, (ii) issue a government guarantee, and (iii) launch prequalification and bidding process. The transaction advisor will assist the Government in (i) issuing the request for prequalification, responding to questions from interested parties, evaluating the expressions of interest, and selecting a short list of firms; (ii) issuing the request for proposals and responding to questions from bidders; and (iii) assessing the legal compliance of the proposals, evaluating the quality of the technical proposals and competitiveness of the financial proposals, and making an award decision.

*PHASE III, NEGOTIATIONS:* 

Following the award of the contract to a bidder, financial closure for the transaction will require several months. During this period, the transaction advisor will assist the prospective lenders of the winning bidder in carrying out their credit analysis and, to the extent needed, assist the Government in negotiating with these lenders.

It may be recalled that the investment cost of the TA project, to finance the recruitment of transaction advisor, is estimated at $7.5 million equivalent, including foreign exchange costs of $6.0 million and local currency costs of $1.5 million equivalent. The TA will improve the urban rapid mass transportation network in Lahore. The outcome of the TA is a structured design for the Lahore RMTS Project feasible for ADB financing.

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## Neo

*Bridge project across river Indus deferred​*
LAHORE (October 09 2008): Two mega development projects estimated to cost Rs 4.7 billion, including construction of a bridge over river Indus between Bunglow Iccha and Rojhan, district Rahim Yar Khan, and widening of Rawalpindi-Kahuta Road, have been deferred due to technical reasons.

Official sources told APP here on Wednesday these projects were put up for discussion at a meeting of Provincial Development Working Party (PDWP) chaired by Planning and Development (P&D) department chief Sami Saeed.

The meeting after threadbare discussion pointed out certain shortcomings in the two projects, which were then deferred on technical grounds. The proposed bridge site is 160 km downstream of Ghazi Ghat bridge and 65 km upstream of Guddu Barrage in district Rajanpur.

The project was to function as a link on Indus Highway between two major towns across River Indus, serving people of districts Rahim Yar Khan and Rajanpur who faced great difficulty due to unavailability of a river crossing. The proposed bridge would have reduced the distance between RY Khan and Rajanpur by 85 km.

Although the project, despite its importance, has been deferred, the competent authority has asked the sponsors to put it up again after conducting a "proper feasibility and economic analysis" of the scheme. The second scheme of widening and improvement of 28 km long Rawalpindi-Kahuta Road with an estimated cost of over Rs 1.3 billion, was also deferred.

The road having strategic value takes off from the 766 km milestone on the Grand Trunk (GT) road (Sohan) and leads to Azad Kashmir via Kahuta Karot and Kahuta Punjar Azad Pattan. Accordingly, the portion of the road from 9.66 km to 18 km from GT Road to Sihala was proposed for dualisation, while the section of road from 18 km to 38.26 km was to be widened from the existing 20 feet to 24 feet.

An overhead bridge with length of 1425 feet was to be constructed over the Sihala level crossing. The concerned authorities have been directed to prepare a separate PC-1 for land acquisition from Capital Development Authority (CDA) and private owners for the dualisation of the road. Meanwhile, the CDA has also displayed interest in constructing the dual road.


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## Spring Onion

*Construction of tallest building of South Asia: eight-member board of directors constituted *


LAHORE (October 10 2008):* Punjab government has constituted an eight-member board of directors (BoD) to review the constructing of the first tallest building (1947 feet) of South Asia, Mubarak Centre, that would be completed by the year 2012 at a cost of $1.2 billion. The 72-story-Mubarak Centre is being constructed under private-public partnership with 30:70 ratio of the Punjab government and the Abu Dhabi Group respectively.

Punjab government will be represented by Secretary Finance, Chairman Planning and Development and Chief Secretary while Abu Dhabi Group will be represented by Chairman Abu Dhabi Group Sheikh Nehyan Mubarak Al-Nehyan and CEO Abu Dhabi Group Bashir Ahmed Tahir in the new board of directors*.

Mubarak Centre will be the tallest building in South Asia after its completion. The Centre will include residential and office towers, as well as conference halls and a shopping mall. The first phase of the project is expected to be completed in 2010 and the whole project will be completed at a cost of about $1.2 billion in 2012.

The complex will consist of four towers and a small eclipse shaped building. The main tower will be 72 stories, while the first 30 floors will be reserved for offices, and from 31 to above for residential apartments. The other three towers will be between 30 to 34 stories, with an eclipse shaped tower in between, which will house uniquely designed apartments along with a five story covered shopping mall, which will be biggest and most exclusive shopping and entertainment complex in the region.

The eclipse shaped tower will also house the largest reception and conference halls in the country, holding between 3,500-4,000 people. There will be exclusive, high-end residential suites in the main tower, again managed by Hyatt residency. Also, parking space will be provided for over 4,000 cars. The complex will be connected to the Gaddafi Stadium Sports Complex by a covered, over-head bridge or possibly an underpass.

The project is being carried out as a joint venture between the Abu Dhabi Group and the government of Punjab. The two investors have formed a holding company for Mubarak Centre called Taavun (Pvt) Ltd, which will be responsible for managing the project. Pakistani and foreign companies will construct this project.

The height of the building will make it visible from India, as well as allow residents of the upper floors views of the Golden Temple in Amritsar (approximately 50km away from the building) on clear days.

With the completion of Mubarak Tower, investment by Abu Dhabi Group will exceed $12 billion mark in Pakistan, which is the largest investment in the country by any foreign group. According to an official of the provincial government, this will be the tallest building in the region and the government is taking keen interest in promoting such mega projects.

Business Recorder [Pakistan's First Financial Daily]


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## Spring Onion

*IPDF to develop two PTDC projects: MoUs signed *

ISLAMABAD (October 10 2008): The Infrastructure Project Development Facility (IPDF) has signed two memoranda of understanding (MoUs) with Pakistan Tourism Development Corporation (PTDC), under which the former will extend multiple assistance to the latter in developing two projects - PTDC Tourist Village and PTDC Corporate Complex - following public-private partnership framework in capital.

The MoUs were signed here on Thursday by IPDF Advisor Ghulam Murtaza Satti and Managing Director of PTDC Brigadier Amanullah (retd) in the presence of acting Chief Executive Officer of IPDF Adil Anwar and Secretary, Ministry of Tourism, Ali Arif.

Under the agreement, the IPDF would provide technical support to the PTDC, including services of qualified advisory firms, to assist in structuring the development of the corporate complex. Speaking on the occasion, Satti said these MoUs would prove to be another step forward in facilitating the private sector's participation in promoting tourism.

He further said that President Asif Ali Zardari was giving due consideration to projects meant for accelerating infrastructure development and issued special directives to the relevant ministries in this regard. "We are focusing on good governance and regulation for providing enabling environment for creating investment opportunities to harness the private sector," he added.

The PTDC intends to develop 'Tourist Village' on 25 acres of land at Shahrah-e-Kashmir, adjacent to Islamabad Club. In addition to the Tourist Village, the project would have a modern three-star hotel, which would include restaurants, conference halls, theatre facilities, gymnasium, health club, indoor games facilities, corporate offices, tourist handling and promotional offices.

The PTDC's second project is development of a Corporate Complex on an area measuring 7,544.44 square yards in sector F-5/1, Islamabad. In addition to housing the PTDC's head office, it would also have corporate offices, auditorium, display areas, audio/visual and tourism facilitation centres.

Both the projects will be conceived in a manner that private sector will develop design, finance, operate and maintain the building. The ownership of these projects will always remain with the PTDC. However, their development and operational rights will be given to private parties for a specific period.

Business Recorder [Pakistan's First Financial Daily]


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## Neo

*ADB to provide $2 billion loan for LRTS​*
KARACHI (October 10 2008): Asian Development Bank (ADB) has agreed to lend over $2 billion to Pakistan which is considering to introduce Light Rail Transit System (LRTS) in one of its most congested cities, Karachi. According to official sources the regional loaning institution has expressed its willingness to provide Pakistan with a soft loan to be used for development of the mega project.

"ADB has committed to provide us a big loan of over $2 billion for the LRTS project," said an official in Sindh government. They said feasibility study for LRTS would soon be initiated jointly by the Sindh and city governments.

The present Pakistan People's Party-led government is eyeing the proposed light rail system as an effective and practicable way to encourage the masses to prefer public transport as a means of travelling rather than private cars or motorcycles, said the sources.

The new system, they said, would have a subway-like mechanism of stop-by-stop brakes, like most of the developed and some of the developing countries. They said the government was following a comprehensive strategy that includes projects, like Bus Rapid Transit System (BRTS), LRTS and Heavy Rail Transit System to improve the overall transportation system in the metropolis.

The government of Pakistan, they said, was already in talks with ADB for a soft loan worth $600 million to finance the Bogota-like Bus Rapid Transit System in Karachi. The ADB loan for BRTS would also be used for conducting feasibility study for the LRTS, added the sources. "This is the success of Sindh government that the international loaning institutions like ADB is committing such a big loan to us," said the official.

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## DarkStar

Thanks for the post Neo, but what the hell are these people up to? 600 million loan for a bunch of busses and bus stops?? How many busses will be bought for 600 million dollars? It's a complete joke, and to get a foreign loan?? Have these guys not learnt anything? Most likely, the money will be eaten up in contracts and kick backs, and after a couple of years the scheme will fail, while we see the "soft loan" being turned into a hard loan because of the small print.

This govt is a joke. They will spend a part of a billion dollars on a frikkin feasability study...

First the PPP got rid of the karachi rail network, and now they are looking to install it again.

I'm all for public transport, but we need to think big. LRT, HRT, A GOOD BUS SYSTEM, circular train aroudn the suburbs, and most importantly a subway system...

After that connect Karachi to Lahore with the motorway...how far is that proposed scheme? Or do we have to wwait for shahabaz sharif to come and finish that project?


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## Neo

With crooks in power anything is possible in Pakistan mate.


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## Neo

*Road network in Punjab expanded to over 80,000 kms​* 
MULTAN (October 12 2008): The road network in Punjab has expanded to over 80,000-kms by the end of 2007 and estimated value of road assets in the province exceed Rs 200 billion. In recent years the overall demand for road transport has grown at 7 to 8 percent per year which surpasses average GDP growth rate over the last decade.

According to official sources here, expansion in road network mainly owes to large increase in traffic population densities as roads are predominant mode of transport in the country carrying more than 90 percent of the passenger and freight traffic with an average growth rate of 4.5 percent and 10.5 percent respectively.

The sources said the ever-increasing demand for additional road links in the province has intensified the need to augment existing road densities to vary from 0.34km/sq.km in the south zone to 0.58 km/sq km in the north zone.

Though the provincial road sector is mainly responsible for consolidating and maintaining the existing 9,000-km of inter-district roads, yet it continues to cater to the rural access road demand through identification by respective public representatives. Total outlay for road sector for the year 2008-09 is Rs 17.500 billion which is 22 percent more as compared to the allocation for the sector for the year 2007-08.

The sources said, out of total 332 schemes in the road sector, 156 schemes have been fully funded to achieve consolidation and up-gradation of existing network through undertaking widening and improvement of about 500 km length of existing roads from the present pavement widths of 10 or 12 feet to 20 or 24 feet.

In addition, construction of 150 km new roads is also provided for in MTDF 2008-09 to cater for either missing links or augmenting present road network with additional corridors for economic, social and poverty alleviation considerations.


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## Neo

*Pakistan Railways to import 150 coaches from China ​* 
Wednesday, October 15, 2008

ISLAMABAD: Pakistan Railways would import 150 new coaches from China worth Rs 5.977 billion shortly soon after the tendering process completes, an official at the Ministry of Railways said.

The official said out of the total 150 coaches China would assemble only 40 coaches and remaining would be assembled here. He said other countries like Germany and USA are not only reluctant to transfer their technology but also their prices are so high, which is unaffordable for the PR owing to lack of required resources.

Pakistan Railways prefer China, because their prices are not only reasonable but they are also interested to transfer their technology to Pakistan, he added. The fact that the government has also shown interest to import 75 locomotives and 1,300 high-speed wagons from China.


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## Contrarian

Why dont you set up a factory in Pakistan. The investment will not be in vain, the coaches and wagons can be used by Pak Railways.As it is, i believe the goods being transported through the railways is increasing in Pakistan.


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## p2prada

Neo said:


> *Pakistan Railways to import 150 coaches from China ​*
> Wednesday, October 15, 2008
> 
> ISLAMABAD: Pakistan Railways would import 150 new coaches from China worth Rs 5.977 billion shortly soon after the tendering process completes, an official at the Ministry of Railways said.
> 
> The official said out of the total 150 coaches China would assemble only 40 coaches and remaining would be assembled here. He said other countries like Germany and USA are not only reluctant to transfer their technology but also their prices are so high, which is unaffordable for the PR owing to lack of required resources.
> 
> Pakistan Railways prefer China, because their prices are not only reasonable but they are also interested to transfer their technology to Pakistan, he added. The fact that the government has also shown interest to import 75 locomotives and 1,300 high-speed wagons from China.




But the problem is the chinese coaches will be made of iron and steel just like indian coaches. They will be heavier, carry lesser load and will need more juice to run.
German and American coaches, though expensive, will be made of aluminium and will give u an engine that can pull all of pakistan.
German and American trains will be more favourable in the long run. 
Lets not forget better gas mileage.

Note that indian cargo trains are only 1 to 1.5 km long while american trains go 2.5-3 km. Chinese trains are similar to indian trains.


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## Neo

*Pakistan's first in-car navigation system launched​* 
LAHORE (October 17 2008): Tracking World (Pvt) Limited and Data Solutions (Pvt) Limited on Thursday announced launching of Pakistan's first full-featured personal and in-car navigation system.

Based on Tracking World's experience of more than five years in Automatic Vehicle Location (AVL), and Data Solutions' 11-year expertise in Geographic Information Systems (GIS), the two companies have joined hands to introduce a product that many did not think possible in Pakistan for several years, said Khuram Qaiser, CEO of Tracking World, at a press briefing here on Thursday.

He said Pakistan Navigator employs Garmin's world-renowned and trend-setting array of Global Positioning System (GPS) devices and shows a user his or her exact location on the map. The joint venture chose Garmin as its hardware platform because it is the world's largest and most prestigious manufacturer of GPS devices, he added. "We made no compromise on quality," he said.

"We got into this business because we love making maps, using maps, or just looking at maps, and we wanted to do our bit to pave the way for development in this country," said Riaz Raheem, MD of Data Solutions. "We want all Pakistanis to freely share the joy and benefits of using maps," he added.

Humayun Qaiser also spoke on the occasion.


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## Neo

*Port congestion to stay for a month: government looks at Gwadar for TCP wheat handling​* 
KARACHI (October 18 2008): The federal government on Friday announced short and long term measures, including the constitution of a watchdog, improvement of transportation network and an advanced planning to work out transportation cost for taking the wheat ships to Gwadar Port to clear the trade-damaging port congestion, which would persist for over a month.

A "Daily Monitoring Committee" (DMC), comprising representatives from the four provinces, ministries of food, agriculture and livestock, finance, commerce, three ports and other concerned departments would directly monitor handling and transportation of wheat to its final destination, Secretary Ports and Shipping Saleem Khan told Business Recorder.

DMC would be chaired by the TCP chairman, he added. He said to ensure a quick and smooth dispatch of the imported essential commodity the government would mobilise railways, National Logistic Cell (NLC) and private truckers as a short-term measure.

In the long run, the secretary said, the government was preparing an advanced plan to work out transportation cost for accommodating the expected wheat ships at Gwadar Port, where the traffic is one-sided. Khan was positive when asked if the government was intending to use the Gwadar Port, which is situated in the volatile Balochistan province, within next few days.

"Yes! We are working out the transportation cost and would use Gwadar Port as soon as we finish it," said the official. It may be recalled that the newly constructed port, which lacks in hinterland connectivity, had hardly managed to safely berth a Panamax bulk carrier, M/v POS Glory, carrying 72,700 tonnes of Russian wheat through lighterage in March 2008.

The secretary, however, said POS Glory was a huge vessel loaded with 72,700 tonnes of wheat, while the TCP ships that would have a cargo weighing between 40,000 to 43,000 tonnes could easily be docked at the 12.5-meter deep Gwadar Port. Earlier, conducting a post-federal committee meeting on wheat handling media briefing at Karachi Port Trust's (KPT) Headquarter, Federal Minister for Ports and Shipping Naveed Qamar said bunching of ships at two ports had caused congestion.

"The backlog would take more than a month to be cleared," the federal minister told the newsmen, who had to wait for his briefing, which was scheduled at 11am, for at least four exhausting hours.

The minister, who was flanked by Secretary Ports and Shipping Saleem Khan and Director General Ports and Shipping Vice Admiral Asad Qureshi (retd), said some coinciding developments, like the soaring rice and cement exports, fertiliser import, non-opening of Letters of Credit, Eid holidays etc had caused the backlog.

Qamar said to improve a lethargic transportation network all the four provinces, NLC, TCP and railways would directly pick cargo from the ports. To avoid future congestion at ports the government would make arrangements to handle wheat at Gwadar Port. "Though it would cost Rs 80 crore extra, but we would go to Gwadar if the congestion persists," he added.

Taking a very serious cognisance of the issue, the federal cabinet had formed a ministerial committee, DMC, to make the two ports, Karachi Port and Port Qasim, congestion-free, Qamar said. The DMC, he said, would also check efficiency of the TCP, which was bringing unscheduled wheat ships at the outer anchorage of Karachi Port and Port Qasim. Later, the federal minister along with committee members also visited Port Qasim Authority to look into the level of congestion attributed by unscheduled wheat and fertiliser vessels.


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## AgNoStiC MuSliM

malaymishra123 said:


> Why dont you set up a factory in Pakistan. The investment will not be in vain, the coaches and wagons can be used by Pak Railways.As it is, i believe the goods being transported through the railways is increasing in Pakistan.



The article does say that only 40 out of 150 will be imported in China, and the rest would be assembled in Pakistan.



p2prada said:


> But the problem is the chinese coaches will be made of iron and steel just like indian coaches. They will be heavier, carry lesser load and will need more juice to run.
> German and American coaches, though expensive, will be made of aluminium and will give u an engine that can pull all of pakistan.
> German and American trains will be more favourable in the long run.
> Lets not forget better gas mileage.
> 
> Note that indian cargo trains are only 1 to 1.5 km long while american trains go 2.5-3 km. Chinese trains are similar to indian trains.


 I think Pakistan is just purchasing coaches, not engines, at this point.


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## Contrarian

Not assembled mate, i mean manufactured in Pakistan. Pakistan should ask China help in establishing a factory rather than shipping them in SKD/CKD kits. That gives more to the Pakistani economy in the long run.


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## Neo

*ADB $50 million roads sector plan objectives generally achieved: report​* 
ISLAMABAD (October 20 2008): The Asian Development Bank (ADB) completion report on a 50 million dollars loan, undertaken to formulate a national policy reform programme for the road sector, was assessed as generally achieving its objectives of policies and most of the policy actions with one critical exception: developing a comprehensive road safety framework.

Completion reports are undertaken by the same department, which designs and implements a loan. Therefore, there is an obvious conflict of interests in terms of assessing a loan. Be that as it may, the road sector development programme completion report has urged that while preparing future programmes the ADB must set "programme targets so that they are clearly measurable and quantifiable....(and) the program administration and review by ADB should emphasise close monitoring of the executing agency, (MOF and supported by MOC and NHA in this case) and ensure continuity of staff in the administration team."

Thus, the ADB not only failed to provide measurable and quantifiable targets, reflecting poor design capacity within ADB, but also failed to ensure continuity of its own staff--at a cost to Pakistan.

The completion report notes that the policy directions to the program included (i) conducting road safety audits, (ii) establishing road design standards, (iii) conducting black spot mapping, and (iv) assigning institutional (road agency) responsibilities.

Actions required to be achieved included: (i) establishing accident reporting centre by 2002 in order to create a comprehensive accident data base, (ii) a training school for driving instructors in the same year, and (iii) an accident evaluation laboratory for forensic investigations was to be formed under this program.

The completion report has found that in the first phase of the programme NHA reduced staff level to 1,299. However, NHA is not in favour of further reducing staff levels since with more roads being added to the network it would require more staff, which would be addressed through reorganisation.

According to the report, the National Road Safety Secretariat, under the Ministry of Communications (MOC), was established in September 2006. However, the implementation of its tasks was a major issue and is not happening because of lack of resources. Also, the funds were not made readily available, thereby affecting the implementation of road safety policy actions, mainly. The report notes that the reforms to strengthen judicial and police sector were not initiated during this program.

It is relevant to note that lack of transparency and accountability within ADB has been highlighted in the international media, and Western donors, through representation in the Board of Directors at ADB, have expressed reservations in this regard. Within this context, it is relevant to note that the former World Bank President, Wolfowitz, had agreed to resign after weeks of controversy over his handling of a pay package for his girlfriend.

It is also relevant to note that International Monetary Fund Managing Director Strauss-Kahn is currently under investigation for abuse of power. To-date, ADB management has resisted pressure from its board of directors to usher an era of accountability and transparency.


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## Neo

*Rs11bn infrastructure to be developed at PQ ​* 
Friday, October 24, 2008

KARACHI: Port Qasim Authority (PQA) has planned to develop infrastructure costing Rs11 billion by year 2011 to meet requirements of the investors, says Chairman PQA, Mir Afsar Din Talpur.

One hundred and nine industrial and commercial units are operative and 184 units more are at different stages of development at three industrial zones of Port Qasim Authority, located near the port. Among investors are national and international players in manufacturing, industrial processing and services, he said.

He was speaking at a seminar on Role of Port Qasim Authority in Pakistans Economy here, a PQA release issued on Thursday said. The seminar was organised by Chartered Institute of Logistics and Transport Pakistan. The PQA Chief informed that in financial year 2007-2008, 35th year of PQA history, the authority handled 26.42 million tonnes of cargo at its 10 heavy-duty berths, representing 41.57 per cent share of Pakistans total sea-borne trade. It earned gross revenue of Rs4.78 billion that exceeds the total capital cost of 8-berth 1st phase of the project.

This has added a new dimension to the economic skyline of Karachi, contributing substantially not only to the National Gross Product, but also to the generation of employment for the people of Karachi and the surrounding region. PQA has just completed its 35 years of existence end of June 2008.

He paid tribute to all those, whose efforts, hard work, support, commitment and resources have gone into making PQA what it is today. Thirty five years of PQA mark a long voyage with lot of ups and downs, and stormy spells. Yet, along the course, it turned out to be an exiting and rewarding success story of a leading public sector enterprise of Pakistan.

PQA Chairman said the authority created economic value in the form of Port Qasim infrastructure through the merger and integration of sand dunes of Pipri and shoreline. Thus, it emerged the commercial port as the 2nd gateway to the world markets in support of KPT for our imports and exports by sea. Through availability of port infrastructure at its doorstep, Pakistan Steel was able to start its production on time schedule, he said.

To further implement the mandate for an industrial port, PQA undertook the other phase of value-creation for the economy, by developing in parts, 12000 acres of land above high-water mark as zones for industrial, commercial and service units.


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## Neo

*PIA all set to start flights from Sialkot airport ​* 
Friday, October 24, 2008

SIALKOT: National flag carrier Pakistan International Airlines (PIA) has finalised all arrangements for commencing twice-weekly international flights from the Sialkot International Airport.

PIAs District Sales Manager Khalid Hameed, talking to APP here on Thursday, said that PK-253 will take off for Abu Dhabi at 11.30 am from the Sialkot airport on October 26, and will return at 7.10 pm.

Direct flight on the Sialkot-Muscat section will commence on October 29, he said, adding that Abu Dhabi and Muscat-bound flights are fully booked which is a healthy omen for the national carrier as well as trade and commerce.

A large number of overseas Pakistanis and members of the business community from Gujranwala, Gujarat, Narowal, Jehlum and other adjoining areas as well as Mirpur, Azad Kashmir will benefit from the new service, he added. PIA is already operating flights on Sialkot-Kuwait and Sialkot-Karachi routes.

Meanwhile, airport sources here disclosed that Qatar Airways will also operate a cargo flight from here on October 27. Air traffic of the region is estimated at 446,000 passengers per year, which is expected to increase by 6 per cent per annum, while the current air cargo is around 24,000 tonnes per year, expected to increase to 53,000 tonnes by the year 2014.

Sialkot International Airport handled almost 14,000 tonnes of cargo in the first year of its operation.


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## Neo

*PIA to fly from JFK to Lahore​*
KARACHI: PIA will fly directly from John F Kennedy Airport to Lahore twice a week every Saturday and Wednesday for the convenience of its passengers. This will reduce their travel times by three hours. PIA has also finalised arrangements for commencing new destinations, both local and international, for the convenience of its passengers. Direct flight to Abu Dhabi from Sialkot International Airport every Sunday will commence from 26th October 2008 while direct flight for Muscat from Sialkot International Airport every Wednesday will be commencing on 29th October 2008 to facilitate the passengers and to meet the demand of business community of the region.


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## Neo

*PIA starts second International flight from Sialkot​* 
SIALKOT (October 27 2008): Pakistan International Airlines (PIA) has started second international flight from Sialkot, as a PIA plane, flight PK 253, with large number of passengers took off from Sialkot International Airport to Abu Dahabi here on Sunday.

With the introduction of Abu Dhabi and Muscat bound flights, PIA is now operating three weekly international flights on Sialkot-Kuwait, Sialkot-Abu Dahabi and Sialkot Mascat routes from the Sialkot.

Addressing the flight launching ceremony held at Sialkot International Airport, General Manager PIA Passenger Sales Domestic Nauman A. Shah said that PIA was focusing on initiating more flights on various routes to European and Middle East countries to facilitate the overseas Pakistanis and business community of Sialkot.

Apart from this, operating of cargo flight from Sialkot International Airport was also under consideration and hopefully after completion of Hajj season the PIA high ups would decide about it.

The national flag carrier had become first airline and taken the lead in initiating its international flights from Sialkot International Airport, he said.

Nauman Shah further stated that PIA was making efforts and playing an instrumental role in making the Sialkot International Airport successful. He added that it was heartening to note that PIA was already operating successfully Sialkot-Kuwait and Sialkot-Karachi flights from Sialkot International Airport.

On this occasion he lauded the efforts of private sector of Sialkot for establishing international airport on self-help basis and foresees that in near future this airport would be the busiest airport of the country.

Speaking on the occasion Chairman SIAL Chaudhry Ghulam Mustafa thanked the PIA for initiating more flights from Sialkot and underscored the need of launching cargo service from Sialkot international airport to facilitate the exporters of the area. Later, General Manager Passenger Sales Domestic Nauman A. Shah, District Manager Syed Tariq Ismail, Khalid Hameed District Sales Manager PIA Sialkot along Chairman Sialkot International Airport Limited (SIAL) saw-off the passengers.


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## Neo

*Rs 500 billion being spent on NTC, other projects: NHA chief​*
ISLAMABAD (October 27 2008): National Highway Authority (NHA) will spend Rs 500 billion on construction of National Trade Corridor (NTC), upgradation of Karakoram Highway (KKH) and providing connectivity to Gwadar Port by end of 2010.

Chairman NHA Altaf Ahmed Chaudhry told APP in an exclusive chat here Sunday that the authority would spend Rs 200 billion on construction and upgradation of motorways and expressways as part of NTC to provide link to Afghanistan and Central Asian countries.

The NTC will link upper parts of the country in the North with ports in the South to reduce travel time and fuel cost by improving existing road network, N-5, N-55 and introducing new motorways, M-4, M-5, M-6, M-7, M-8, M-9. On completion of the road development network, he said, the travel time from Peshawar to Karachi would be reduced by 50 percent, traffic accidents by 70 percent and road losses would be reduced to the tune of $1.5 billion per annum.

To a question he said widening and rehabilitation of Hasanabdal-Abbottabad-Thakot-Gilgit-Khunjerab (KKH) Highway (N-35 also known as Karakoram Highway (KKH) was one of the priorities of the NHA. He said that Rs 45 billion are being spent on upgradation of Raikot-Khunjerab section of the KKH. He said work on Mansehra-Sazin section of N-35 would start in a couple of months. After rehabilitation and expansion of KKH, which was eighth wonder of the world China, Kazakhstan and Kyrghazistan could export their goods through Gwadar ports. He said that 140 kilometres section of KKH would submerge in Basha dam water and new road would be constructed on new alignment by 2015.

To a question Chairman NHA Altaf Ahmed Chaudhry said that 40 percent of NHA projects were in Balochistan and timely completion of these projects will enhance the socio-economic position of the people and would enhance inter-provincial harmony. He said that Shadadkot-Wangu Hills section and Wangu Hills-Gwadar Section of Ratto Derro-Gwadar Motorway would be completed by end of 2010, which would play in key role in providing much needed connectivity to Gwadar port.

He said that Karachi-Bela-Khuzdar-Kalat-Quetta-Chaman Highway (N-25) would be rehabilitated by end of 2010 which would also provide connectivity to Gwadar and reduce travel time from Quetta to Karachi to about five hours. The NHA chairman said that out of 500 kilometers 225 km section of the D.I.Khan-Zhob-Kuchlack Road (N-50) has been completed while the rest would be completed by 2010. He said that upgradation work of Quetta-D.G.Khan section of N-70 funded by ADB and government of Pakistan is underway and would be completed by 2010. Replying to a question, he said that the roads network across Balochistan would be completed by 2012. He said the federal government was spending billions of rupees on the construction of roads in Balochistan, which would connect the province with Central Asian states. He said the Lak Pass Tunnel was the part of the Kalat-Quetta-Chaman highway and would be opened early next year.


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## Neo

*India has no plan to re-start flights to Pakistan ​*
NEW DELHI (October 28 2008): India has no immediate plan to re-start flights to Pakistan which were suspended in March this year citing commercial reasons. Low load was the factor behind suspension of flight to Lahore in March last. However, Pakistan International Airlines continued its flights from Lahore to Delhi.

"The Times of India" quoting a senior Air India official said this was not the right time to launch any new flights. Pakistan and India restored air links in January 2004. Pakistan and India in recent months have also decided to operate flights to Islamabad and Chennai.


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## Neo

*PIA posts loss of Rs38bn​*
KARACHI, Oct 28: Pakistan International Airlines announced a big nine-month loss on Tuesday, blaming a spike in global fuel prices and the sinking value of the rupee.

The flag carrier posted an after-tax loss of Rs38.4 billion for the period ending September 30, compared with Rs10 billion in the same period a year earlier.

Fuel expenditure alone had increased by Rs12.2 billion over the nine months compared with last year, the airline said in a statement.

A further Rs22.8 billion was lost due to the steep depreciation of the rupee against the dollar and the need to pay dollar-denominated loans and lease obligations, it added.

The board observed that if the current downward trend of fuel price continues, the financial position of PIA would improve going forward, the statement said.

The airline will work on measures to contain the loss situation and bring about sustainable improvement in the near future that should make PIA a profitable organisation, a spokesman said.AFP


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## Neo

*Infrastructure uplift: Rs 750 million funds for three industrial estates may lapse: Rauf​* 
KARACHI (October 29 2008): Sindh Minister for Industries and Commerce, M.A. Rauf Siddiqui has feared that Rs 750 million allocated for infrastructure development of three industrial estates of the city may lapse in one month.

Speaking at a meeting of Federal 'B' Area Association of Trade and Industry (FBAATI) on Tuesday, he said that the government has allocated Rs 250 million each for four industrial estate management companies namely Korangi Industrial Trading Estate (Kite), Landhi Industrial Trading Estate (Lite), North Karachi Industrial Trading Estate (Nite) and Federal 'B' Area Industrial Trading Estate (Fite).

Out of them, only one ie, Kite has initiated industrial infrastructure development work in its respective area while the other three made no efforts. The minister said that Nite, Lite and Fite have only one month to initiate development work in their respective areas otherwise the funds will stand lapse.

He advised the management of these companies to take guidance from Kite and prepare infrastructure development PC-1 as well as get it approved from him as soon as possible. Dispelling impression that the funds allocated for industrial infrastructure development has been freeze, he said that the amount is with the management companies and they can utilise it within next one month.

He said that the management companies have very short time and they must act fast to develop infrastructure in their respective areas. He assured the industrialists that the government is ready to provide maximum facilities for development work in industrial areas.

Chairman, FBAATI, Idrees Gigi expressed concern over long hour and frequent load shedding in industrial area. He said that industrialists are facing problems in meeting production target and on time delivery of goods due to load shedding.


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## Neo

*PIA flight from Sialkot takes off for Muscat​*
SIALKOT (October 30 2008): The national flag carrier PIA's first direct international passenger flight (PK-229) between Sialkot to Muscat took off from Sialkot International Airport, here on Wednesday. The high profile PIA officials from Lahore, Islamabad and Karachi seen off the passengers during a special ceremony held at Sialkot International Airport under the auspices of Pakistan International Airlines (PIA), here.

Chairman Sialkot International Airport Limited (SIAL) Ghulam Mustafa Chaudhry, Senior vice chairman Dr Sarfraz Bashir, general manager Muhammad Nawaz Chaudhry and President Sialkot Chamber of Commerce and Industry (SCCI) Dr Khurram Anwar Khawaja, former Chairman Pakistan Sports Goods Manufacturers and Exporters Association (PSGMEA) Professor Safdar Sandal, travel and cargo agents and Sialkot based senior journalists were also present on this occasion.

Later, the senior PIA officials told the newsmen that the PIA would soon start its direct international passenger flights between Sialkot-Dubai, Sialkot-Jeddah-Al-Riyadh (Saudi Arabia). They said that it was the third international destination of PIA from Sialkot.

Earlier, the PIA was successfully operating the direct international passenger flights between Sialkot-Kuwait and Sialkot-Abu Dhabi and now between Sialkot-Muscat. They said that the direct Haj flights from Sialkot are also expected to be started from next year. Moreover, the Qatar Airways successfully started its direct international cargo flights between Sialkot-Pakistan and Doha-Qatar.


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## Neo

*PIA breaches 19-yr-old record of seat utilisation​*
KARACHI: Pakistan International Airlines (PIA) has achieved a record seat utilisation of 74.5 percent on its scheduled services in October this year, which is the record high passengers occupancy of airlines in this month during the last 19 years.

The international scheduled seat utilisation was recorded at 74.9 percent while the domestic scheduled seat utilisation stands at 72.1 percent in this season. The system seat utilisation, inclusive of non-scheduled operation was 73.2 percent, which is also the highest ever achieved during the month of October since last 19 years. 

This exceptional performance, besides being the result of better reservation and revenue management discipline, was primarily due to better sales efforts by the airline all over its network. During October 2008, PIA achieved a 26.1 percent increase in RPKs (traffic) over October 2007 on international routes. Similarly on domestic routes the increase in RPKs (traffic) was 16.9 percent over the same month last year. Thus, system traffic growth achieved by PIA was 24.8 percent in October 2008 over the same month, last year.


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## Neo

*Super Highway: NHA to issue new tenders for M-9 project​*
ISLAMABAD (November 09 2008): National Highway Authority (NHA) will soon issue new tenders for conversion of Super Highway between Karachi and Hyderabad into six-lane Motorway (M-9), a source in ministry of communications informed APP on Saturday. The NHA had signed a concession agreement for the construction of 136 km project, with the Standard Construction firm in September 2006 but the contractor failed to arrange equity and bank guarantee in time despite grant of six-week extra time.

After expiry of the extra time the bank guarantee of the contract was scrapped, the source said, adding that the NHA has filed a lawsuit against the contractor and the matter is sub judice.

"Present road link between Karachi and Hyderabad known as Super Highway is a 4-lane divided highway and is the most important link of Karachi Port and Port Qasim to the rest of the country. With the construction of Gwadar Port, it is envisaged that the traffic on this route will increase manifold," the source said.

This highway link is in dire need to be upgraded to a motorway standard to meet post-Gwadar traffic. The project supposed to be country's first major project to be built on build, operate, transfer (BOT) basis whereby the contractor would construct the project and operate it for 25 years before handing it over to the government.


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## Neo

* PIA prepares Rs55bn bailout plan ​* 
Tuesday, November 11, 2008

ISLAMABAD: PIA Managing Director Captain Ijaz Haroon on Monday told the Senate Standing Committee on Defence that the airline has prepared an Rs55 billion bailout plan to overcome the current deep economic crunch. 

The plan would be presented for consideration before the Economic Coordination Committee of the Cabinet (ECC) at its meeting to be held in the third week of the current month, he stated while replying to a question by the Chairman of the committee Senator Nisar A Memon. We have proposed a number of viable steps to overcome economic depression confronting the airline and if the plan is approved the airline can become profit earning organization by 2010, MD said. 

The chairman directed the PIA management to look into the matter of Hajj and Ummrah fares as according to the committee these were on higher side due to the fact that oil prices in the international market have substantially decreased. The committee set a deadline for a positive reply from the airline on the subject by the first week of next month.


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## Neo

*Upgradation of KKH to facilitate Bhasha dam​*
ISLAMABAD: The Executive Committee of the National Economic Council (ECNEC) approved the Up-gradation of Karakuram Highway with cost of Rs 12.058 billion to facilitate the Bhasha dam. The ECNEC meeting was held her under the Chairmanship of Adviser to Prime Minister on Finance Shaukat Tarin. The council considered a number of development projects for approval in the field of energy, environment, supply of clean water, highways, and railways. The development projects considered on Tuesday for the approval are to be completed in all the four provinces, Northern Areas and AJK. 

The ECNEC also approved the reconstruction of projects of Rawalakot worth Rs 8.202 billion and Bagh worth Rs 7.349 billion, which were affected by 2005 earthquake. The ECNEC also approved rehabilitation and widening of earthquake-affected road, Alpuiri-Besham section of N-90 worth Rs 874.170 million. The ECNEC discussed replacement of Railway signaling system for the sector Lodhran-Shahdaram, double gauge tracks for Mirpur Khas- Khokarapar, and, double railway track for Lodhran-Khanewal sector. In the communication sector among others, the ECNEC approved the 106km road project for acquisition of land and procurement for Hasanabdal-Havallan- Mansehra Expressway worth Rs 2.997 billion. In the energy sector, the meeting approved Interconnection of 9 IPPs with National Grid worth Rs1.185 billion to ensure generation of additional 1600MW of electricity. 

The committee also approved power distributions enhancement project phase-1 to reduce energy/line losses worth Rs 908.590 million. In the water sector, the ECNEC approved capacity building and advisory services project and advised ministry of Water and Power to initiate the process.


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## Neo

*Infrastructure priorities​*By Munir Attaullah 

I am not suggesting for a moment that all road development projects should be abandoned until other basic civic amenities have been provided. My concern is only a more judicious allocation of the available funds, percentage wise, between competing priorities

Last week I drove alone on the motorway to Islamabad and back. The thin traffic on the road, even a decade or more after its opening, was screaming proof that the potential economic returns, direct and indirect, never did justify the huge investment in the project.

I remembered how most sensible people, even then, instinctively knew the motorway would be a white elephant. But  to introduce a different touch of colour  it seems prestige projects are, to use a Jack London phrase, the pink elephants our high and mighty decision-makers often hallucinate about during office hours. Driving alone in the sparse traffic allowed me the luxury to muse about this whole matter of misallocation of scarce public resources.

I am not thinking here about private planes, bulletproof cars, bulky cabinets, and foreign junkets and the like. For, it is unrealistic to hope that such demands, perks, and temptations of high office, regrettable though they may be, and scrutinised though they should be, can ever be completely eliminated in the exercise of temporal power. As Sarojni Naidu once observed wryly, it takes a lot of money to keep Bapu living in poverty.

So, to pine, as we do, for leaders of prophet-like moral rectitude, is to live in fantasyland and court disillusionment. In such matters we can do no better than rely on constitutional and legal checks and balances, the threat of political accountability at the bar of the public, and the self imposed, restrained, good sense (if any) of our leaders.

My concern today is a little different. Sure, Nawazs folly is a boon for the well off, not to mention some of the more humble lot, I included. The convenience of a small segment of the populace is well served. But public expenditure should be governed by priorities, where the principle of the greatest good for the greatest number (as a first approximation) is not a bad intuitive guideline. Even if we accept the reality that politics has a large patronage component, should we not at least expect value for money? Would that huge sum of money not been better spent on dozens of other, much needed, projects?

I drive into Islamabad and see major flyover and interchange projects in progress on Kashmir Road and Jinnah Avenue. And, probably, these are not the only road improvement projects being undertaken in the twin cities. When complete, they will all no doubt be greatly welcomed by motorists. However, I could not help thinking whether such projects should have priority over the water supply, sanitation, and drainage requirements of a much larger proportion of residents.

I am not suggesting for a moment that all road development projects should be abandoned until those other basic civic amenities have been provided. My concern is only a more judicious allocation of the available funds, percentage wise, between competing priorities.

For example, massive road projects are also being undertaken in Karachi. Do I, similarly, view those too with a jaundiced eye? Not necessarily. It may well be that the economic benefits of improved traffic flows in our major commercial and industrial city are such as to accord them a higher priority, temporarily. For, such extra returns will make it easier, in due course, to provide those other basic facilities the citizens desperately need.

Now I am not qualified enough to make such delicate politico-economic decisions between closely competing priorities. Leave that to the experts and the technocrats. But no such fine judgement is called for in other, obvious cases, such as the motorway. My lament, backed up by a further few random examples discussed below, is why we cannot make the obviously right call in such latter cases.

Consider the airports in Lahore and Karachi. Every time I pass through them I am gratified to note they are modern and continue to be well maintained. But, can anyone deny that they are massively under-utilised? In mitigation, can one hide behind the argument that they were over-designed to take care of long-term traffic growth?

My answer is two-fold. If the Jinnah terminal remains massively under-used even 15 years after its opening, is it not obvious that someone was guilty of vastly over-estimating future passenger throughput? Secondly, I give you the example of Dubai. Over the thirty-year period I have lived in the Emirate, I have seen its airport gradually improved, enlarged and modernised every few years, in planned steps, to keep pace with future traffic projections. And all this has been carried out around the original airport building, which is still the entry and exit point for most passengers.

And now we are building another such new airport for Islamabad. Then there is the planned Bab-e-Azadi in Lahore. Would monies allocated for that not be better used by, say, WASA, to reduce the misery of Lahore residents following a downpour? And how should we classify that infamous KPT fountain in Karachi? It cost Rs 320 million, but is in-operational because of the mysterious theft of 22 of its essential components. Recently, citing the nations current financial crunch, the Army has decided to postpone its plans to build a costly new GHQ for itself. That is good news, but should we be even contemplating such a project?

With such thoughts fresh in the mind, I return to Lahore, and drive straight to the Gymkhana for my golf game. I note that Zafar Ali Road (and the parallel road on the other side of the nullah) has been freshly carpeted, and widened with a third lane. Whether this upgrading (in preference to other possible projects in town) should have been a matter of high priority, I leave it for the citizens to judge. As far as I am concerned, the real traffic problem on this road is caused by motorists blocking the left lane (and often the adjoining one too), by parking their cars when visiting the medical and educational institutions situated there.

But what completely defeats me is the need for those two bridges over the nullah, at either end. For motorists, the prospective savings in distance and time by using the bridges hardly amount to a few hundred yards and a few minutes. Balance that against the real accident hazard they pose (particularly the crossing opposite Beaconhouse National University), as drivers with little road sense, and even less consideration for others, recklessly strive to impose their own will on who has right of way.

The writer is a businessman. A selection of his columns is now available in book form. Visit munirattaullah.com


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## Neo

*Japan to invest $872.316 million for KCR revival ​* 
KARACHI (November 12 2008): The government of Japan will invest $872.316 million for the revival of Karachi Circular Railway (KCR) to overcome traffic problems in the metropolis. According to sources, Japan External Trade Organisation (Jetro) commissioned by the ministry of economy, trade and industry, government of Japan would provide 100 percent funding for the project under Japanese STEP loan at 0.2 percent mark-up rate for a 40-year payback time, including a 10-year grace period.

They said Jetro, as a first parameter, will dualise KCR's 30-km loop with modern signalling and telecommunication system at a cost of $536.852 million. Further, the sources said at least two dedicated tracks along with the main line from City (Railway) Station to Drig Road Station of 14.5 kms, which would later be linked to the airport with a distance of 6-kms, at a cost of $179.464 million.

They said Karachi Urban Transport Corporation (KUTC) would be the vehicle for the implementation of the project having on its Board-Directors the senior officials of Pakistan Railway, Government of Sindh and City District Government Karachi (CDGK).

Currently, the project was under different assessment studies, such as Environmental Impact Assessment (EIA), Special Assistance for Project Formation (Saprof), led by a group of Jetro and would be completed within two to three months, said the sources adding that PC-1 for the project had also been cleared in principle. They said the government f Pakistan and Jetro were likely to sign a loan agreement by May 2009, within three to four years of which the project would be completed.


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## Neo

* PR plan to buy China engines under scrutiny ​* 
Thursday, November 13, 2008

ISLAMABAD: Pakistan Railways plan to purchase 75 Chinese locomotives for Rs8 billion has come under fresh scrutiny after Federal Railways Minister Ghulam Ahmed Bilour was informed that out of 20 locomotives purchased in 2005 by Malaysia from the same company, 15 were abandoned within 30 months.

Top railway officials have presented to the railway minister an investigative report published by a Malaysian newspaper, which quoted top government officials as saying that a contract for procuring 20 locomotives for Malaysian railways from the Chinese company proved a nightmare as more than 80 per cent of these locomotives were completely scrapped because of inferior quality and excessive weight.

According to sources in the Ministry of Railways, the minister, after assuming charge, had met both old and new technical committee members to get their comments on the issue.

Railways Secretary Kashif Murtaza, who is also the PR chairman, had dismissed the old technical committee.

According to official documents, the previously procured 69 locomotives from the same company have caused a serious problem to the countrys railway system due to cracks in engines, damage to railway tracks and consistent maintenance on a daily basis.

Sources said the minister would take further presentation from the technical officials on Thursday in Lahore.


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## Zaheerkhan

Neo said:


> * PR plan to buy China engines under scrutiny ​*
> Thursday, November 13, 2008
> 
> ISLAMABAD: Pakistan Railways plan to purchase 75 Chinese locomotives for Rs8 billion has come under fresh scrutiny after Federal Railways Minister Ghulam Ahmed Bilour was informed that out of 20 locomotives purchased in 2005 by Malaysia from the same company, 15 were abandoned within 30 months.
> 
> Top railway officials have presented to the railway minister an investigative report published by a Malaysian newspaper, which quoted top government officials as saying that a contract for procuring 20 locomotives for Malaysian railways from the Chinese company proved a nightmare as more than 80 per cent of these locomotives were completely scrapped because of inferior quality and excessive weight.
> 
> According to sources in the Ministry of Railways, the minister, after assuming charge, had met both old and new technical committee members to get their comments on the issue.
> 
> Railways Secretary Kashif Murtaza, who is also the PR chairman, had dismissed the old technical committee.
> 
> According to official documents, the previously procured 69 locomotives from the same company have caused a serious problem to the countrys railway system due to cracks in engines, damage to railway tracks and consistent maintenance on a daily basis.
> 
> Sources said the minister would take further presentation from the technical officials on Thursday in Lahore.





Why pay so much and go for bad Chinese engines, when you have one of the world's largest railways next door and can buy better locomotives at a cheaper price and save some $$$$...???


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## fatman17

*New China-Pak N-cooperation need approval from NSG: US *

Sridhar Krishnaswami 

Washington, Nov 21 (PTI) The US has asked China to halt its plan to construct two more nuclear reactors in Pakistan and indicated that any new Sino-Pak cooperation in the atomic field would require "consensus" approval from the NSG, a "difficult" task to achieve.

"Although Pakistan's energy needs are real and increasing, we believe Pakistan's proliferation record would make NSG consensus difficult were China to request an exception," State Department Assistant Secretary for Legislative Affairs Matthew Reynolds said in a letter to Democrat Congressman from Massachusetts, Edward J Markey.

Reynolds said Washington has already communicated its "position clearly" to Islamabad and Beijing that the proposed cooperation between the two countries to construct two more nuclear reactors in Pakistan should not move forward.

"We have communicated our position clearly to our Chinese and Pakistani interlocutors at multiple levels in Washington, Beijing, and Islamabad, and have made plain our view that proposed cooperation on Chasma III and IV should not move forward." The US position is that cooperation on the construction of two new reactors, Chasma III and IV, would be inconsistent with the commitments China made at the time of its adherence to Nuclear Suppliers Group (NSG) guidelines in 2004.

"We also have been in contact with other NSG members, a number of whom have expressed similar concern at the recent reports," the State Department said in the letter, which was made public today.

Reynolds also said that the US has sought and continue to seek clarification from Islamabad and Beijing on this matter. PTI


----------



## Neo

*KPT handles 12.94 million tons cargo​*
KARACHI, Nov 21: The Karachi Port handled 12.94 million tons or 12.72 per cent more cargo during the first four months of the current fiscal year (2008-09), compared to 11.48 million tons handled during the corresponding period of last year.

According to official figures, there was a substantial increase in the number of vessels called at the port during the period under review.

A total of 735 ships were handled during July-October as against 652 ships handled in the same period last year, showing an increase of 12.73 per cent in ship handling.

Similarly, container handling also increased from 374,653 TEUs to 413,384 TEUs, showing an increase of 10 per cent as compared to the corresponding period of last year. This means that daily cargo handing (import and export) increased to 105,209 tons during July-October period of the current fiscal year from 101,620 tons of the corresponding period of last year.

The Karachi Port handled 37.2 million tons cargo during the last fiscal year (2007-08) compared to 27.7million tons handled by Port Qasim.

However, when performance of both the ports is compared with regional ports, it is pathetic and it could easily be stated that they are victim of lethargy and inefficiency, ports and shipping experts said.


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## Neo

*Foreign companies agree to establish $ 2 bln infrastructure fund in Pakistan​* 
ISLAMABAD, Nov 26 (APP): Federal Minister for Investment Senator Waqar Ahmed said Wednesday that the foreign investment companies operating in the country had agreed to establish an infrastructure fund amounting to $ 2 billion.

This amount will help boost economic activity in the country, he said after a dinner meeting, he hosted in honour of representative of different foreign investment companies here.

He said his ministry was working on a comprehensive investment strategy and expressed the optimism to fetch share from different countries, especially from China and Middle East states.

The minister said he would encourage foreign investors to come forward to benefit from investment friendly policies of the government. Pakistan has great potential, especially in agriculture, livestock, power sector and oil and gas exploration, he added.

He said the ministry of investment would work as a facilitator and remove bottlenecks and ease the official procedure. 

Earlier, the representatives of the foreign investment companies assured the minister of their full cooperation and said they would try to bring other investors of their respective countries to Pakistan.

The meeting was attended by Senior Vice President Arif Habib Group Khursheed Zafar, Managing Director Pak-Libya Holding Company Kamaluddin Khan, Managing Director Pak-Oman Investment Company Zafar Iqbal, Managing Director Pak-Kuwait Investment Company Istaqbal Mehdi, Managing Director Pak-Brunei Investment Company Ayesha Aziz, Deputy Managing Director Pak-China Investment Company Syed Iqbal Asharaf and senior government officials.


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## Neo

*CDA to hire consultants for Margalla Tunnel's feasibility study​*
ISLAMABAD (November 27 2008): The Capital Development Authority (CDA) would shortly hire the consultants to conduct the feasibility study of Margalla Tunnel Project to evaluate the pros and cons of the project. "It is too early to say anything about the project before a feasibility study is conducted to evaluate all aspects of the project with particular focus on the environmental, cost, engineering, social and economic impact," said a senior CDA official Wednesday.

He said the Authority would soon hire NESPAK or any foreign consultant, to conduct the feasibility of the project but hoped that it would be okayed as the Authority would take all measures to protect flora and fauna of the Margalla Hills.

According to the proposed plan, the tunnel would link federal capital with Haripur, proving easiest access to the Northern Areas of the country, opening new scope for real estate market and boosting business activity on both sides.

The official admitted that the project was shelved after controversy between the Authority and environmentalists but the new CDA chairman announced that the project would be executed without further delay as it would also provide the residents cheaper housing facility on the other side of Margalla Hills.

"The project becomes more essential owing to the prevailing shortage of over 50,000 housing units as the project would help the residents of federal capital to avail housing facility at far lesser rates. According to the official, the project was opposed by CDA-hired consultant in its report in 2005, but the official said this time, the Authority has selected some points providing shortest way to Hazara Division.

"It would be two or one and half kilometer from Islamabad. We have pointed out two spots, one near Bhara Kahu and other near Margazar Zoo. These points are far nearer than those were selected previously," said the official.

Chairman, CDA, Tariq Mehmood Khan, said that the tunnel project would not have drastic impact on the natural beauty of Margallla Hills as the Authority would spend more than ten-time on the environmental beauty than the loss reached to it during the execution of the project.

He further said that the tunnel would be as wide as having four-lane road and providing space for rail link and mono-train in future, and hoped that if all things go smooth, the project would be executed within two-year period. He said the project would also be discussed with the top slot to get green signal in this regard.

According to the CDA's master plan for the Islamabad Capital Territory, the hills are a national park area since they are an extension of the Himalayan range and the northern boundary of the Potohar plateau and there are also some 82 bird species in the area. Many reptiles are also found in this area including the Russell's viper, Indian cobra and saw-scaled viper.


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## Neo

*Infrastructure maintenance: Pakistan spends below three percent against eight percent in Asia​* 
LAHORE (November 30 2008): Pakistan is lurking much below on the spending yardstick for maintenance and repairing of existing infrastructure in the Asia where majority of countries spend 8 percent of the total cost of the asset annually against less than 3 percent in Pakistan, causing a big blow to the growth of overall economy here.

Since a major chunk of the infrastructure development work in Pakistan depends upon the lenders' releases, often disrupted due to one or the other reason. Therefore, a constant deadlock is the hallmark of the infrastructure set up in Pakistan where the scarcity of funds has put the maintenance and repair of existing infrastructure on priority than rapidly building up new infrastructure assets.

Particularly, the recent energy deficiency has hit the national industry hard, which has experienced the worst-ever load shedding throughout the calendar year 2008 due to snail pace work on developing new energy resources. To cover the ugly face of country's infrastructure, the planners have chosen a short cut of concentrating on major cities like Lahore and Karachi, the provincial capitals, for launching new infrastructure projects.

This approach is supported through the argument that the existing infrastructure in major cities would be choked down in the absence of a timely expansion. But no serious attention is given to country's 80 percent rural-based population living in abject poverty generation after generation where members of national and provincial assemblies are siphoning off development funds under the garb of street soling and drainage.

To add fuel to the fire, the vindictive mindset of political leadership proves last nail to the coffin, hampering again the growth of infrastructure development in Pakistan.

Just to have an idea of this mindset, one may give a serious attention to the Punjab government sources who pointed out in a dejected tone that the Chief Minister Punjab Shahbaz Sharif has put the project of Lahore Rapid Mass Transit System (LRMTS) on the backburner despite a heavy spending of Rs 1.0 billion on its designing by the previous government of Chief Minister Chaudhry Parvaiz Elahi.

Instead of asking for speed up the development work, according to the sources, the Punjab Chief Minister has directed an evaluation of the project before proceeding any further on the project. Fears are getting high with every passing day that the spending of Rs 1 billion from the public exchequer would go unnoticed if such unnecessary delays are attributed to the fate of the project.

Interestingly, the Chief Minister Shahbaz Sharif had himself initiated the idea of LRMTS back in 1996-99. However, further development took place the regime of Chaudhry Parvaiz Elahi. Now when the policy makers are pulling a long over shelving of the LRMTS, the Chief Minister Punjab has initiated another Rs 50 billion idea of Lahore-Rawalpindi Elevated Express Highway while desiring from the infrastructure planners to put all their energies to make it a success story. It may be noted that the Punjab government is already executing Rs 100 billion Ring Road project, a major spending of which is again on the provincial capital.

Therefore, a total spending of about Rs 150 billion on developing infrastructure of Lahore and areas adjacent to it has resulted into a deep sense of deprivation among under developed regions of the province. The planning developers of the province are of the view that one major reason behind this deprivation is the highly selfish approach of the public representatives from those regions.

It is worth noting here that the road development fund allocated for the whole Punjab for 2008-09 is Rs 18 billion, out of which Rs 13 billion is to be spent on maintenance and repairing of existing roads, Rs 2 billion for new roads and Rs 3 billion to appease the MNAs and MPAs.


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## Neo

*IT Tower construction: Punjab government's rejoinder to Pervaiz Elahi​* 
LAHORE (November 29 2008): A spokesman of Punjab government has reminded Chaudhry Pervaiz Elahi that the Chinese company, engaged in the construction of IT Tower, has stopped the project before the present government came into power due to impractical nature of the agreement which the Elahi's government had signed.

Moreover, the construction of a huge building in the middle of the city would have been of no use to the information technology (IT) sector, he said, adding it seemed that the project was aimed at real estate business rather than promotion of IT sector.

In a rejoinder issued on Friday, he said that IT parks were set up the world over on large areas so that they could be expanded for future needs. The spokesman further said Pervaiz Elahi's statement that the efforts of Punjab government to attract foreign investment had failed, was perhaps motivated by his own experience.

He said the fact was that the planning and focus with which Punjab Chief Minister Mian Muhammad Shahbaz Sharif had undertaken the visit resulted in far greater success than Chaudhry Pervaiz Elahi could have imagined. He said that the Singaporean experts left the project when Elahi's government failed to control law and order and Pervaiz Elahi was trying to hide his own failures.

He further said that Chinese experts were made all payment for the contracts signed during the tenure of the last government. However, due to non-feasibility of the project, the cost of expenditure of Chinese company had increased tremendously and consequently the Chinese companies had to make request for more funds from the government.

The spokesman further said that the Punjab Chief Minister, P in view of Sino-Pak friendship, had assured the chairman of the Chinese company that the Punjab government would extend all out help to him, upon which he reposed full confidence in the Punjab Chief Minister and left this issue to the discretion of the chief minister, and assured that any decision of the Punjab government would be acceptable to the Chinese government.

The spokesman said that by using such terms as rage and wrath, Chaudhry Pervaiz Elahi had shown a highly irresponsible attitude, which did not behave a senior politician like him.

He said that the Punjab government was still trying to cope with the administrative and financial mess created during the tenure of Elahi. The spokesman said that Elahi's assertion that the Chinese company had registered a claim for Rs 1.15 billion was totally baseless and concocted as no such case was being heard in any court.

The spokesman said that as far as the setting up of IT park was concerned, it was totally against the statement of Chaudhry Pervaiz Elahi. He said the Punjab government and Shenzen government had not only agreed to set up IT park, but mayor of Shenzen X.UZU Zong Hong, during the luncheon, gave the task of drafting of a memorandum of understanding (MoU) by Chinese experts and the Punjab government, which was signed by representatives of both the governments.

He said that it showed the seriousness of Shenzen government in the project. The spokesman expressed the hope that Pervaiz Elahi would look into the facts before issuing such statements and instead of negative criticism would show a positive attitude.


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## Neo

*PIA to recover Rs 38 billion losses soon: managing director ​* 
LAHORE (December 02 2008): Pakistan International Airline (PIA) Managing Director Captain Muhammad Aijaz Haroon has said that PIA would soon recover its accumulated losses of Rs 38 billion. He was addressing to the oath taking ceremony of the newly elected office-bearers of PIA Senior Staff Association (PIASSA), Lahore Zone, a spokesperson of PIA said here on Monday.

The MD said contract officers of the PIA would be regularised by the end of December 2008, while the pension of the retired PIA employees would be raised. He said the salaries of PIA officers would be increased as soon the airline's finance improve, adding that a policy was being formulated to ensure merit and transparency in the recruitment under the PIA employees' sons quota.

In response to the demands of the new office-bearers of the association, the MD assured that matters pertaining 50 per cent discount in the aviation courses fees for children of the PIA employees would be done in accordance with the prescribed rules.

Aijaz Haroon also advised the national airline's employees to abstain from putting political pressure on the management for promotion in their services so as to maintain seniority of their colleagues. To another demand about establishment of a PIA Training Centre (PTC) in Lahore, the MD said Karachi's training centre is for the entire country, however there is dire need to revise its courses by incorporating in it the modern aviation techniques and skills.

He assured the employees that he would make every effort with regard to provision of maximum facilities to them, and they must discharge their duties with utmost devotion and sincerity for the development of the airline.

The new office-bearers of the PIASSA included President Ghazanfar Bashir, SVP Athar Hasan Awan, VP Ziauddin Rana, General Secretary Sohail Mahmood, Organising Secretary Mian Muneer, Finance Secretary Syed-uz-Zaman Mufti and Joint Secretary Muqddas Anwar Butt. The PIASSA Central President Abid Saleem Khan and the Lahore Zone's President Ghazanfar Basheer also addressed the ceremony attended by a large number of PIA employees.


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## Neo

*Rs 520 billion to be spent on National Trade Corridor by 2012 ​*
ISLAMABAD (December 05 2008): The government would spend Rs 520 billion by 2012 to develop National Trade Corridor (NTC) to boost trade activities and exports. A source in the Ministry of Communications told newsmen here on Thursday that the NTC would link upper parts of the country in the North with ports in the South to reduce travel time and fuel cost by improving existing road network and introducing new highways and motorways by 2012.

The development of NTC would cause multi-faceted benefits, reduce the losses and significantly contribute to the national exchequer, he added. On completion of the NTC by 2012, the cargo travel time from Karachi to Peshawar would be reduced from 72 hours to 36 hours, and road losses would be reduced to the tune of over one billion dollar per annum which would reduce annual transportation cost by 10 percent, the source added.

Talking about steps being taken for development of road network, he said 600 kilometres portion of Karakoram Highway was being upgraded and expanded by Chinese help with the cost of 350 million dollars.

He said the main artery and the main North-South Corridor linking Karachi with Torkham on Pakistan-Afghanistan border via Lahore, Rawalpindi and Peshawar the National Highway N-5 was the mainstay of the country's road network and its economic lifeline.

The Great Trunk Road N-5 has been converted into a dual carriageway and it is being rehabilitated on priority basis. Similarly Indus Highway (N-55), which is on the left bank of the Indus River, is also being constructed according to the specifications of the Asian Highways recommended by the Asian Development Bank. After construction of the Kohat Tunnel, N-55 was set to play a vital role not only for Pakistan but for inter-regional connectivity also, he added.

The transport cost of trade goods would be reduced through restructuring and modernisation of railway under the NTC programme, which will contribute in terms of saving of two to 2.5 billion dollars per year.

The administrative measures, reducing documentation would result in saving of 1.2 billion dollars per annum, he said. He said the modernisation of existing trucking fleet was also planned, which would reduce fuel import bill by 25 percent and road maintenance cost by one billion dollar.


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## fatman17

*Zorlu installs first wind turbine in Pakistan*

Thu. December 04, 2008 

Karachi, Dec 04, 2008 (Asia Pulse Data Source via COMTEX)On Wednesday night first turbine of wind energy was installed in Pakistan in Jamphir, Sindh, which is fully complete and totally renewable while it will start generating power within this month. 
CEO of M/s Zorlu Enerji Group, Murat Sungur Bursa said this at a press conference arranged by Board of Investment (BOI) in collaboration with M/s Zorlu Enerji Pakistan Limited (ZEPL) at a local hotel on Wednesday. 

Arif Elahi, Director General, BOI Karachi, Mehboob Haq, Investment Advisor, BOI, Muslim Abbassi COO, Provincial Committee on Investment and Director Alternate Energy Development Board Nazir Ahmed Soomro were also present on the occasion. In Pakistan 30&#37; of the peoples dont have any accessibility to electricity, said Murat Sungar. 

*This step would usher an era of investment in very important area of energy in Pakistan and this region, he added. The turbine is 100 meter high and Zorlu Energy Group will build first wind farm in Pakistan which after the completion of first phase by January 2009 provide electricity to 60000 households, he said. *

*The plant will reach a capacity of 50 MW in the second phase with plans to increase the capacity up to 300 MW, he said. Zorlu Energy group will then be providing electricity comparable to the generation capacity of the Kanupp nuclear plant in Pakistan with totally green, totally renewable and totally indigenous resource, he added. *

The investors face problems of high political risk, social unrest, rise of exchange rate, terrorist attacks, natural disasters and other risks in Pakistan, said Murat. But there is no safe haven on this piece of earth and one could be subjected to natural or manmade disaster, he added. 

Murat Sungur Bursa said that economic and investment environment in Pakistan is improving and the country has a vibrant economy. He said that the country needs energy as blackouts have been in half of the country. 

He said that Pakistan has its strategic importance and the bureaucracy is very friendly in this country while there is a transparent regulatory environment. He said that the infrastructure available is well developed for the energy production and the country has high calibre trained manpower. 

There is a fundamental need of present gap and growth demand of electricity, said Murat. He added that power policy offers liberal incentives and there is a competitive return on investment. 

Murat said that standardized and tested agreements are done between the government and his company for the investment. He added that Pakistan has one of the best and unexploited wind potential in the world. 

Murat said that the company gives commitment for the renewable energy investment. He added that Pakistani government is trying to pursue renewable energy investment. 

The total generation of energy in Pakistan is 20 thousand Mega Watt out which 61 % is produced by public sector and 39 % is produced by private sector, said Bursa. There is a huge demand for the new energy generation in the country, he added. 

In almost every developing country the energy demand is little over GNP per capita income while in developed countries it is not the case, said Bursa. He exemplified that if Pakistan wants to maintain 6 to 7 percent GNP rate then it would require 8 percent of energy. 

He said that NDTC would purchase the power generated form them. 

Director General BOI, Arif Elahi said that Pakistan would generate 700 MW in coming five years through wind energy. Pakistan could produce 50 MW energy from the coastal belt of 750 kilometre if it invests in wind energy sector, he added. 

He informed that as part of its first phase Zorlu Enerji Pakistan Limited (ZEPL) has commissioned one turbine with a capacity of 1.2 Mega Watt (MW) and the other four turbines would be commissioned by the end of December, 2008 hence providing 6 MW of energy for the first phase. 

The second phase which includes installation of 29 turbines with a capacity of 44 MW is expected to be completed till December, 2009, he said. The power generated from the first phase would be evacuated to the Jhampir Grid Station by HESCO, he said. All the equipment for the first phase of 6 MW including the towers, rotors, transformers and other auxiliary equipment has been transported to the site, he said. 

While commenting on the background of the company Elahi said that Zorlu Holding is one of the largest and leading groups in Turkey and it has been active in the energy sector through the nine companies of the Zorlu Energy Group since 1993. Despite global economic uncertainties/turnaround Pakistans economy has been able to attract a FDI of US $ 1.321 billion in the current fiscal year (July-October) reflecting investor confidence, said Elahi while commenting on the overall investment climate. 

For full details for ZRLUF click here.


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## Neo

*Lack of infrastructure impeding Gwadar Ports functioning ​* 
Saturday, December 06, 2008

ISLAMABAD: Lack of complete road connectivity at certain points, absence of will on the part of some federal authorities and strong opposition from the Karachi lobby are principal stumbling blocks in the way of making the Gwadar port operational, official sources revealed on Friday.

There has not been much movement forward on making flawless road link between Gwadar and Ratodero in Sindh and completing its connectivity with some parts of Balochistan, a senior official told The News.

He admitted that Karachi Port and Port Qasim were too overburdened to take the entire load. The result, he said, was that not only some government departments but also private importers and exporters had to pay a sizeable demurrage every year. For example, the source added, the Trading Corporation of Pakistan (TCP) had to shell out $1.8 million in demurrage last year. Another official said the incumbent Balochistan chief minister had urged the federal government to do away with the obstacles to operationalisation of the Gwadar port so that the province could get its benefits.

The official said the present road infrastructure starting from Gwadar port was not in a position to bear the brunt of heavy trucks laden with goods. He observed if trucks did not carry goods up to their capacity, it would not be a viable proposition for them, considering the expenses incurred on transportation.

But Port and Shipping official told the correspondent that Karachi lobby within the bureaucracy and the business community was poised to confine imports and exports through Karachi, arguing it was not feasible for businessmen to foot the hefty bill of transportation from Gwadar.

Last week, the government announced it would start huge exports and imports of commodities like wheat, fertilisers and cement through port. But informed officials did not see the announcement being translated into reality in the near future.

One source said there was no reluctance on the part of Port of Singapore Authority International (PSAI), selected as the operator of the Gwadar port, to undertake the job. There is no doubt that PSAI is ready to operate, but the government needs to do what it is required to do so that the Singaporean company starts its work.

The PSAI is to invest $4 billion in phase two and three to complete new berths while the China Harbour Engineering Company (CHEC) executed the first phase. The PSAI is a global leader in the port and terminus business and operates 20 port projects in 11 countries, including Singapore, Belgium, Brunei, China, India, Italy, Japan, the Netherlands, Portugal, South Korea and Thailand.

Kyrgyzstan Ambassador to Pakistan Nurlar Aitmurzaev, in a recent meeting with Ports & Shipping Minister Nabeel Gabool, said that his country was interested in availing the Gwadar port facility as well as having a terminal there. The Gwadar port is the closest to Central Asian Republics (CARs).

Officials conceded Pakistan had suffered losses of billions of dollars due to the delay in making the Gwadar port operational. The project faced an inordinate delay for a variety of reasons. One of the reasons was the late execution of some projects by Pakistani contractors.

The Gwadar port is the third deep seaport in Pakistan after Karachi and Port Qasim. As compared to the Karachi Port and Port Qasim, which operate on a royalty basis, the selection of PSAI for Gwadar is on the basis of a gross revenue-sharing formula.


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## Neo

*Multi-billion rupees Railways project put on ice​* 
ISLAMABAD (December 06 2008): The Ministry of Railways' multi-billion rupees plan to replace 'old and obsolete' signal gear from Lodhran-Khawnewal-Shahdara bagh main line section has been put on ice after United States embassy in Islamabad challenged the tender awarding process, official sources told Business Recorder.

The project was initially approved on February 6, 2008 at a cost of Rs 10.721 billon with a foreign exchange component (FEC) of Rs 7.989 billion. Sources said that tender committee of Pakistan Railways had finalised the tenders on the basis of recommendations of the committee constituted by the Central Development Working Party (CDWP) to look into the rationality of rates and scope of work.

They said that the Executive Committee of National Economic Council (Ecnec) which met on November 6, 2008 has been informed that the US Councillor expressed reservations on the transparency of the tender awarding process.

"Technical irregularities were committed in this case, and the real issue was that tenders for two contracts were invited, and both contracts were amalgamated and awarded to one bidder, later on, sources quoted US Economic Councillor as saying in a letter to the federal government.

Sources said that Ecnec deliberated on the issue in detail and observed that the contract was controversial, and may require re-bidding. The committee, after taking into account all aspects of the tender awarding process, decided to defer the project with the direction that the whole matter be thoroughly re-examined by the Minister for Railways in conjunction with the Planning Commission, as it involved a violation of the earlier decision of the Ecnec. Minister for Railways Ghulam Ahmad Bilor, who has been assigned the responsibility of investigation into the 'fraud tender process', was not available for comment.


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## Neo

*$1 billion needed to build underground storage for imported gas ​* 
ISLAMABAD (December 07 2008): Pakistan will require one billion dollars to build underground storage to store gas to be imported from Iran and Turkmenistan. Sources in Petroleum Ministry revealed to Business Recorder on Saturday that Asian Development Bank (ADB), in a joint study with Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), had disclosed that the proposed underground storage would cost one billion dollars to store gas imported from Iran and Turkmenistan.

The ADB has also noted that Sindh is the most suitable province as far as geographic, political and law and order situation is concerned. However, the work on the underground gas storages, sources added, would be initiated after gas import deals with Iran and Turkmenistan matured.

According to the sources, the government has already reconstituted a sub-committee of the Economic Co-ordination Committee (ECC) of the Cabinet that has a mandate to oversee Iran-Pakistan-India (IPI) gas pipeline and Turkmenistan-Afghanistan-Pakistan-India (TAPI).The committee will also monitor the underground gas storages project.

Sources said that SNGPL, SSGCL and ISGCL would be involved in building three to four underground gas storages to store imported gas from Iran and Turkmenistan. Pakistan will import 2.2 billion cubic feet gas from Iran, out of which Pakistani share stands at 1.05 billion cubic feet. If India does not join the project, Pakistan would consume the entire amount, i.e. 2.2 billion cubic feet.

Pakistan will import 3.2 billion cubic feet gas from Turkmenistan and this gas would be shared equally by Pakistan and India. Sources said that Pakistan would also need underground storages for gas reserves and the gas would be supplied to different areas of the country from these underground gas storages.

Pakistan and Iran have currently entered a dispute over the gas price that is the big hurdle to make further progress on the IPI gas pipeline project. The sources further said that Pakistani and Iranian officials were expected to meet soon in Tehran to resume dialogue on the gas price issue.

Iran has demanded an increase in price according to a new pricing formula; the earlier gas sales purchase agreement (GSPA) had been agreed between Pakistan and Iran.

Sources said that the steering committee on TAPI gas pipeline project was scheduled to meet in New Delhi during the current month, but the Mumbai carnage had caused a delay. Turkmenistan, during the meeting, was expected to present certification on its gas reserves, a demand made by Pakistan and India several times. Turkmenistan has failed so far to provide the gas reserves certification.


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## solid snake

fatman17 said:


> *New China-Pak N-cooperation need approval from NSG: US *
> 
> Sridhar Krishnaswami
> 
> Washington, Nov 21 (PTI) The US has asked China to halt its plan to construct two more nuclear reactors in Pakistan and indicated that any new Sino-Pak cooperation in the atomic field would require "consensus" approval from the NSG, a "difficult" task to achieve.
> 
> "Although Pakistan's energy needs are real and increasing, we believe Pakistan's proliferation record would make NSG consensus difficult were China to request an exception," State Department Assistant Secretary for Legislative Affairs Matthew Reynolds said in a letter to Democrat Congressman from Massachusetts, Edward J Markey.
> 
> Reynolds said Washington has already communicated its "position clearly" to Islamabad and Beijing that the proposed cooperation between the two countries to construct two more nuclear reactors in Pakistan should not move forward.
> 
> "We have communicated our position clearly to our Chinese and Pakistani interlocutors at multiple levels in Washington, Beijing, and Islamabad, and have made plain our view that proposed cooperation on Chasma III and IV should not move forward." The US position is that cooperation on the construction of two new reactors, Chasma III and IV, would be inconsistent with the commitments China made at the time of its adherence to Nuclear Suppliers Group (NSG) guidelines in 2004.
> 
> "We also have been in contact with other NSG members, a number of whom have expressed similar concern at the recent reports," the State Department said in the letter, which was made public today.
> 
> Reynolds also said that the US has sought and continue to seek clarification from Islamabad and Beijing on this matter. PTI



So what is the US saying, that they will never "allow" us to build nuclear power plants? Reading this has pissed me off


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## wuren

Double Standards&#65281;jesuitical US.

They go their own way and do whatever them wants to benefit US national interest .

&#21452;&#37325;&#26631;&#20934;&#65281;&#34394;&#20266;&#30340;&#32654;&#22269;&#12290;&#20182;&#20204;&#20026;&#25152;&#27442;&#20026;&#22320;&#32500;&#25252;&#33258;&#24049;&#30340;&#22269;&#23478;&#21033;&#30410;&#12290;


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## Neo

*Gwadar Port fully operational, NA told ​* 
*Another forex dealer found involved in flight of dollar​*
Thursday, December 18, 2008

ISLAMABAD: Minister for Ports and Shipping Nabeel Gabol told the National Assembly on Wednesday that the Gwadar Port was fully functional and six ships carrying urea would dock at the port this month.

Responding to a question by Sheikh Salahuddin during the question hour, he said that an amount of Rs 400 million allocated for the Gwadar Deep Water Port project, Phase-I. To a question, he said that major works of the project had been completed and the sanctioned amount was utilized during the financial year 2007-08. Remaining minor works were likely to be completed by June 2009.

Responding to another question by Abdul Qadir Patel, he said that no compensation had been paid to the fishermen for the losses suffered by them after grounding of Tasman Spirit in July 2003 as the matter was sub judice.

Meanwhile, National Assembly Speaker Dr Fehmida Mirza urged print and electronic media to keep national interest supreme in reporting on sensitive matters. We need to ensure responsible reporting. Let us be careful that national interest remains supreme and our interests are not hurt, the speaker said, in response to a point of order by MQM MNA Waseem Akhter. 

MNA Waseem Akhter had raised a point regarding media reporting and talk shows in connection with Mumbai incident and Indias alleged involvement of Ajmal Qasab in the incident. Waseem Akhter had claimed that certain newspapers and news channels tried to establish Ajmal Qasabs connection with Pakistan, at a time when no solid evidence was available yet about his any link. This situation is very serious, Waseem said and demanded an inquiry into what he claimed irresponsible reporting and demanded to send the matter to National Assembly Standing Committee on Information.

In response to the member, Minister for Parliamentary Affairs, Dr Babar Awan said, there has been one stance since Mumbai incident that State of Pakistan, the government and the Pakistani nation was not involved in this incident.

If somebody has tried to concoct the matter and presumed something, it is not correct, he said. I hope correct and accurate stance of Pakistan would be highlighted in media. He said as far as inquiry report does not surface, reporting in that matter would not be favourable.

He said on such issues a national bottom line is drawn. We have a clear stance and cannot compromise on national security. We also need to be careful about our national interests in reporting.

Commenting on the matter, Minister of State for Information and Broadcasting, Sumsam Ali Bokhari said, it is our collective responsibility to protect national interests. I have already requested everybody to dispense with our national duties and avoid anything that may harm our interests, he said. The minister said, he had no objection if the matter needs to be sent to the committee.

Besides, Fazlur Rehman urged the governments of Pakistan and India to unmask the elements marring bilateral relations between Pakistan and India and creating tensions in the region. Bilateral relations are usually undermined when both the countries strive for peaceful relations through dialogue and strengthening people-to-people contact. Indeed, there are some factors which do not want to see the neighbouring states having friendly ties, said Maulana Fazlur Rehman while speaking in the National Assembly during a debate on the Pak-India tension.

Advisor to the Prime Minister on Interior Rehman Malik informed the National Assembly that another forex dealer has been found involved in flight of dollars. I want to inform the house that the Federal Investigation Agency on Tuesday raided another forex agent and recovered important record, he informed the house. The FIA found important record showing that the forex agent had sent US$ 835 million out of the country, Malik added. He said the FIA has already recovered the information from data of the computers of forex dealers that more than Rs. 200 billion have been sent abroad. We are effectively dealing with this issue and the information available is being provided to the House, he said.


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## Neo

*Rs 100 million project inaugurated at SITE Super-highway ​*
KARACHI (December 19 2008): Sindh Industries Minister, Rauf Siddiqi has said that industrial estates across Sindh are being developed at par with international standards to provide conducive business environment to investors. 'This will not only encourage the local entrepreneurs to set up new industries in Sindh but also attract foreign investment,' he said while speaking as chief guest at a stone laying ceremony of Rs 100 million project at SITE Superhighway on Thursday.

He said the Government is striving to alleviate unemployment through massive industrialisation and inauguration of this project was in line with the government's commitment to provide world class infrastructure and facilities for local and foreign investors.

Siddiqui said the government has framed a business-friendly scheme under which, investors will not need any prior approval, sanction or NOC for setting up an industrial project in the province. He described security as prime concern behind construction of boundary wall around Phase-I SITE Super Highway.

In the initial phase, the Minister informed SITE Super Highway Association Office, along with a mosque, a 50-bed hospital and a Fire Brigade Station will be constructed under public-private partnership within 18 months.

While briefing about current status of other development projects, he said that over Rs 350 million are being spent on 53 new schemes while 23 schemes are under execution at various estates of SITE Limited and 33 new schemes for Karachi were in the pipeline.

The Minister also said Sindh government has set up four Development and Management Companies with an investment of Rs 1 billion, which would take up infrastructure development in industrial enclaves of Landhi, Korangi, Federal B Area and North Karachi.

He also said that six schemes at SITE Super Highway Phase-l would be completed at a cost of Rs 32.2 million. These includes construction of road costing Rs 21 million, construction of building at Rs 9.2 million and street light on various roads at a cost of Rs 2million. The Secretary SITE Ltd, Managing Director, SITE Ltd besides Mehtabuddin Chawla, Jamshed Chandiwala and other dignitaries were also present on the occasion.


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## Neo

*Rs 500 million released for development of Lyari: Qaim ​*
KARACHI (December 26 2008): Sindh Chief Minister Syed Qaim Ali Shah has said that residents of Lyari are fully conscious and peaceful people and doing service like other people for the progress of the country and nation. He stated this while addressing an open Kutchery at Khaliq Jumma Hall in Lyari on Thursday.

The people of Lyari pledged their allegiance to Shaheed Zulfikar Ali Bhutto the very day he founded Pakistan People's Party and workers and 'Jialas' of Lyari had been rendering sacrifices during every era and leading the party to successes with big majority. He hoped that in future also they will continue to elect the PPP candidates.

Syed Qaim Ali Shah said the PPP was kept out of power for 13 long years as a result of which Lyari was kept deprived of development. The present government has released Rs 500 million for development of Lyari and to solve the problems of water, gas, drainage etc.

Announcing that roads of Lyari will be improved, the chief minister said that a Shaheed Benazir Bhutto Girls Degree College and Shaheed Zulfikar Ali Bhutto Law College will be established here. Besides, health facilities will be improved for which funds would be provided along with appointment of doctors.

Syed Qaim Ali Shah described the youth of Lyari as very talented and said that one more football ground will be developed on 10 acres of land in Lyari to promote their constructive activities. He declared that capable and poor young people of Lyari would be given jobs on priority basis while the poor will also be given plots free of cost to have their own houses. He said that poor women of Lyari would be paid Rs 1,000 per month under Benazir Bhutto Income Support programme.

Addressing the Kutchery, State Minister for Ports and Shipping, Nabil Gabol said that PPP was today in power because of every drop of blood shed by Bhutto family and particularly Shaheed Benazir Bhutto and sacrifices of party workers.

He announced that able young people of Lyari would be given jobs in KPT, Port Qasim and other federal government organisations. Earlier, Provincial Minister Mohammed Rafiq Engineer, MPA Saleem Hingoro, Town Nazim Mohammed Hashim, PPP leader Habib Jan and UC Nazim Abdul Rauf also addressed and apprised the chief minister about their area problems.

The chief minister received applications from people and issued orders on them, wherever necessary. Earlier, on arrival in Lyari Town, the people standing on both sides of road from Khoja Jamaat Khana to Khaliq Jumma Hall gave him a warm welcome and showered petals amid slogans of Zinda Hai Bibi Zinda Hai, Bhutto Zinda Hai and Chief Minister Zindabad.


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## Neo

*Railways earned over Rs 12 billion in July-December ​* 
ISLAMABAD (January 13 2009): Pakistan Railways earned Rs 12150.420 million during July-December 2008 on account of increasing fares and introduction of high capacity wagons, well-placed sources in the Ministry of Railways told Business Recorder here on Monday. Sources said the increase in the earnings is due to 5 percent increase in fares.

During this period PR earned Rs 3211.137 million more than the corresponding period of last year which was Rs 8939.283 million. Railways has shown improvement in cumulative revenue as it earned Rs 3669.543 million in freight traffic while Rs 6386.233 million from passengers, sources added.

They said that the total earnings in freight during the same period of 2007-08 stood at Rs 2515.545 million and with the increase of Rs 1254.002 million, the revenue reached Rs 3669.543 million. Similarly, a rise of Rs 1263.925 million has been observed in passenger earning which was Rs 5122.218 million during the same period of last fiscal year, and now it has reached Rs 6386.233 million in last six months of the current fiscal year.

They said that increase of Rs 28.412 million has been registered from the earning of other coaching, touching the total of Rs 454.161 million in current fiscal year as compared to Rs 425.749 million during 2007-08. Source also said that Rs 764.712 million has increased in sundry earning as compared to Rs 875.771 million in the previous fiscal year but at the end of first half of current fiscal year it increased to Rs 1640.483 million.

They said that due to introduction of high capacity wagons, PR has come to the position to improve its freight sector which is also a reason that PR has made improvement in the financial status. They said that earlier wagons could load only 40 tons weight but after introducing high capacity wagons, it can load 60 tons.

They said that during December 2008 total 2020 wagons of cement were loaded for India, out of which 1534 wagons passed through Amritsar while 486 were destined for Wazir Mansion. In order to facilitate passengers as well as freight to continue improvements and to consolidate reforms, PR will import, 150 new coaches from China worth Rs 5.977 billion, while government has also shown its interest in importing 75 locomotives and 1300 high speed wagons from China, sources added.

They said that it not only contributes to economic growth but also promotes national integration. However, due to diversion of resources to expansion of road network, the performance of PR has declined and its share of inland traffic reduced from 41 percent to 10 percent for passenger and 73 percent to 4 percent for freight traffic, they added.


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## Neo

*PIA suffered Rs 38 billion loss during January-September 2008, National Assembly told ​* 
ISLAMABAD (January 13 2009): The government informed the National Assembly on Monday that Pakistan International Airlines (PIA) has incurred an overall loss of Rs 38 billion during January-September 2008.

Defence Minister Chaudhary Ahmed Mukhtar, in a written reply regarding the question of total number of aircraft PIA purchased and profit earned by them, apprised the house that the PIA purchased only one aircraft since March 2008 from the US Boeing Company and did not lease any aircraft during this period.

Minister for Investment Nveed Qamar, replying to a question on behalf of Advisor to the Prime Minister on Petroleum and Natural Resources, said that 155 million tonnes of crude oil worth 58,000 dollars was lost due to rapture in Parco gas pipeline in Karachi by the Sui Southern Gas Company (SSGC).

Giving details, he said the incident occurred when the SSGC officials misidentified Parco's crude oil pipeline and punctured it for giving connection while providing natural gas to a new CNG station in Korangi area. He said that action would be taken against those proven guilty by an inquiry being conducted into the incident. The inquiry report would be submitted in next 10 days, he added.

Information Minister Sherry Rehman said that the channel of Gwadar Port had been dredged to 14.5 metres to attract motherships for trans-shipment. While replying to a question on behalf of the State Minister for Ports and Shipping, she said that that various rail and road projects were under way to connect Gwadar with the other parts of the country as well as Afghanistan, Central Asia and China.

State Minister for Communication Chaudhry Imtiaz Safdar Warriach informed the house that 10 new highway projects had been approved for Sindh, which would cost about Rs 18 billion. Work on them was expected to begin during the current financial year, he added. To another question, he said work on four projects of Karachi-Quetta section of national highway was under way.

These are Hub-Uthal, Kararo-Wad, Kalat-Khad Koocha and Khad Koocha-Quetta. Replying to a question, the State Minister said there was a plan to commence construction of M-4 section of Motorway this year at a cost of Rs 40 billion. He said the National Highway Authority (NHA) had also planned construction of Hassan Abdal-Havelian-Abbottabad-Mansehra Expressway on a new alignment.


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## Neo

*New barrage planned at Khanki downstream ​*
LAHORE (January 15 2009): Punjab Irrigation Department plans the construction of a new barrage at Khanki at a distance of 900 feet downstream of the existing weir. PC-1 of the project has been prepared, and it will be financed by the Japan International Co-operation Agency (Jica), said Senior Minister Raja Riaz Ahmad while presiding over a meeting of farmers and representatives of Farmer Organisations (FOs) here on Wednesday.

PIDA and irrigation department representatives were also present. The minister told participants that rehabilitation and modernisation of Jinnah Barrage and Islam Barrage is also planned, and detailed designs of uplift of the two barrages are being prepared.

Irrigation Department is also encouraging the private sector to set up small hydropower plants at canals and feasibility studies of seven hydropower projects, having accumulative capacity of 126 megawatt, have been completed, he said.

He further informed that a bid for a 4.8-megawatt station on Lower Bari Doab Canal (LBDC) from the private sector has been received and is in the process of evaluation. Meanwhile, surprise checks of outlets through monitoring teams are being conducted to ensure equitable distribution of water.

Aware of the crucial importance of water for sustainable socio-economic development, the government is according the highest priority to water resources development and management, he maintained. The main areas of focus have been rehabilitation and upgradation of irrigation systems, modernisation of barrages, lining of irrigation channels, harnessing power potential, improving canal operations and checking of water theft through institutional reforms, Raja Riaz added.


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## Pk_Thunder

*Special attention being paid to infrastructure development: Shahbaz*​
RECORDER REPORT
LAHORE (January 30 2009): Punjab Chief Minister, Muhammad Shahbaz Sharif has said that special attention is being paid to infrastructure development for rapid progress of the province and provision of better communication facilities to the masses. He was presiding over a meeting to review the pace of ongoing development work in different districts of the province on Thursday.

Punjab CM said that a number of development projects were being executed expeditiously while quality of work and timely completion of uplift schemes were also being ensured. Shahbaz further said that Shalimar flyover would be completed within a record period of eight and a half months while installation of 69 tubewells in different areas of Lahore would also be completed by April 02 well before the onset of summer season. He directed the authorities concerned to submit a report to him within a week after considering various options regarding construction of Rawalpindi Expressway, so that the project could be started as early as possible.

The Chairman, Task Force, Khawaja Ahmad Hasaan, Engineer-in-Chief, Pakistan Army, General Shahid Niaz, Commissioner Lahore Division, Secretary Communication and Works, Director General LDA, MD Wasa, MD Nespak, Ahsan Chughtai and concerned officers were present in the meeting.

The CM said that contrary to the past, the government was ensuring proper utilisation of every penny of public money and all development projects were being completed in a transparent manner. 'There was hardly any project in the tenure of the previous government, which was completed timely and the government did not have to pay heavy additional expenses due to delay in the implementation of the projects,' he said.

Further, he said that services of FWO were acquired during his last tenure, which maintained a high standard of development projects, while no repair work was needed so far and all the mega projects are again being executed by the FWO.

The Shalimar flyover project would be completed within the stipulated period and no hurdle would be tolerated in the interest of the people's convenience, he reaffirmed. 'Pace of implementation of Madr-e-Millat and Quaid-e-Azam road, Gulshan Ravi, Band road and other development projects was satisfactory and these projects would be executed within the timeframe,' the CM said.

Shahbaz also said that the work on package IV of Ring road had started from January 04 and at the cost of Rs 1400 million. He directed to maintain the quality and standard of work on all development projects. He also directed the Secretary, Communication and Works and Managing Director, Nespak to consider various options regarding construction of Rawalpindi Expressway and submit a report to him within seven days so that the project could be started at the earliest.

Punjab CM further ordered various departments to promote the culture of development work during night like other countries so that the problems of the people could be minimised and schemes could be completed expeditiously.

General Shahid Niaz informed the meeting that the pace of work on development schemes is in accordance with the timeframe and 42 percent work had been completed so far. He assured the meeting that all uplift projects would be completed within the stipulated period besides ensuring a high standard of construction.

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## Pk_Thunder

*UK firm to generate 300 megawatts power from Thar coal*​
AFTAB CHANNA
KARACHI (January 29 2009): A British company will install a Mines Mouth Power Plant at Block 6 of Thar Coal to generate 300-megawatt electricity by 2012, officials told Business Recorder on Wednesday. Initially, the firm, M/s Oracle Coal Fields PLC will invest $400 million for generation of 300-megawatts.

The power generating capacity will be enhanced upto 1200 megawatts in the second phase, they added. In this connection, they said that the firm would prepare the feasibility report of the plant within six months, prior to undertaking the mining at the marked block.

"The British company has confirmed coal reservoirs of 1.4 billion tons at block 6 of Thar Coal. The firm could expand the project capacity if the Water and Power Development Authority (WAPDA) and the National Electricity and Power Regulatory Authority (NEPRA) fix viable buying rates," they elaborated.

The officials said that the same (British) firm would start mining of 29 wells at the site, while two more blocks will also be handed over to other interested companies in near future. They said that a five-member delegation of the firm, comprising Dr Larey Thomas, Anthony Scuff, Micheal Strake, Shahrukh and Shafiq Khan met the Sindh Chief Minister Syed Qaim Ali Shah last Monday and apprised him about the project.

The delegation left for the site yesterday (Tuesday) on a three-day visit of the site, the officials said. To a question about the recruitment of locals, they said that the firm has assured the chief minister of giving priority to the area people in recruitment.


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## Neo

*PIA to become economically viable, says PM​*
ISLAMABAD: Prime Minister, Syed Yusuf Raza Gilani on Friday urged the management of Pakistan Airlines to put best efforts in making the national flag carrier an economically viable and efficient airline.

In a meeting with Managing Director, PIA Captain (retd) Ejaz Haroon, the Prime Minister said the PIA management besides improving the working of organisation should also look after the interests of its employees.

The Prime Minister assured that the government would provide full support to PIA in implementation of its business plan to improve quality of services being provided to the passengers.

The PIA managing director briefed Prime Minister about the measures undertaken to improve its performance.


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## Neo

*Japanese team completes KCR feasibility report​*
KARACHI (February 11 2009): The Japanese survey team has concluded its feasibility report of the $872.316 million project for revival of Karachi Circular Railway, paving the way for grant of loan by Japan in May 2009. Another Japanese survey team, which was busy with making further study about the project aimed to mitigate traffic problems in the metropolis, sources told Business Recorder on Tuesday.

The 10-member Japanese team, they said, would come back to Pakistan again in March this year, and the governments of Pakistan and Japan are likely to sign the loan agreement in May 2009. After the release of funds, the project is to be completed in three to four years.

According to the agreement with Pakistan, Japan External Trade Organisation (Jetro), commissioned by the ministry of economy, trade and industry, Government of Japan, would provide 100 percent funding for the project under Japanese STEP loan at 0.2 percent mark-up rate for a 40-year payback time, including a 10-year grace period.

Currently, the project had been undergoing different assessment studies, like Environmental Impact Assessment (EIA), Special Assistance for Project Formation (Saprof), etc, led by a group of Jetro, which were likely to be completed in the current month, said the sources.

They said that Karachi was facing tremendous growth in traffic at 7.2 percent annually, beside its disproportionate yearly growth of buses of 17 percent causing congestion and accidents, increasing in travelling time. Therefore, railway-based transport system was the need of the hour. They said the railway based mass transit system was only the solution to cater the public demand in the over populated metropolis.

However, they said that for completion of the project in time, government's attention and seriousness were needed to get the mega project on fast track by requesting the Japanese government for the immediate release of funds it sanctioned for the project.


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## Neo

*Weakening economy : Leh Expressway funds deferred until next fiscal year​*
** Rs 100 billion cut introduced in PSDP
* Project will lessen traffic burden on Shaheed Benazir Bhutto Road​*
RAWALPINDI: The federal government has discontinued financing for Rs 22 billion Leh Expressway and Flood Channel project due to the countrys weak economic position at present.

A decision to discontinue financing for less important projects in fiscal year 2008-09 had been taken in view of a prolonged financial crunch in the country. Funds for Leh Expressway and Flood Channel project, however, were stopped in January.

Sources told Daily Times that the government had directed all ministries and departments to make a priority list of their development projects so that less important projects could be deferred till the next fiscal year.

They said the federal government had introduced Rs 100 billion cut in Public Sector Development Programme (PSDP) releases. They said total outlay of PSDP, 2008-09, was Rs 541 billion and that the government had released only Rs125 billion under this head from July to December this fiscal year compared with Rs 280 billion released last year in the same period.

Former president Pervez Musharraf inaugurated the Leh Expressway and Flood Channel project in March 2007 and gave two years for its completion. Federal and Punjab governments will equally share its cost as the project is not being funded by foreign donors.

Work on it has been stopped since general elections as the PML-N government is not interested in it for it entails the name of Sheikh Rashid Ahmed. Now Ahmeds name has been removed from it.

The sources said estimated cost of the project was Rs 8.8884 billion; the federal government released Rs 556.5 million for it by December 2008 and deferred release of remaining Rs 8.328 billion.

They said the government would likely release funds for it in fiscal year 2009-10.

According to master plan, the signal free 22-km long road will run on both sides of Nullah Leh from Rawalpindi to Islamabad with interchanges at Katarian Bridge, Moti Mehal and Ammar Chowk.

It will ease traffic burden on Benazir Bhutto Shaheed Road and Airport Road. Eight flyovers and 10 bridges will also be constructed on the expressway, which would be fenced on both sides.

According to breakdown, Rs 1.740 billion would be spent on construction of service road, fence and drains; Rs 220 million on the 10 bridges; Rs 4.41 billion on three interchanges; Rs 3 billion on eight flyovers; Rs 4.63 billion on retention wall and Rs 6 billion on land acquisition for the project.


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## Neo

*Talks with Japan under way for underground train service in Karachi: Bilour ​*Tuesday February 17, 2009

PESHAWAR: Minister for Railways Ghulam Ahmad Bilour said on Monday that talks with Japan were under way for underground mass-transit train service in Karachi. 

Speaking at the Meet the Press programme at the Peshawar Press Club on Monday, he said the completion of the project would take three years with a share of 60:40 expenses by the governments of Japan and Pakistan. Bilour said a lot of blood of the Pakhtuns had been shed during the past several years, which should be stopped now. 

He said the Awami National Party (ANP) would go to any extent for restoring peace in the Pakhtun-dominated areas. He said all the issues should be resolved through negotiation. For achieving peace, he said, the society should take collective measures. 

When Bilour, a senior ANP leader, was addressing the Meet the Press programme, his partys provincial leadership was holding talks with the Tanzeem Nifaz Shariat-e-Muhammadi (TNSM) leaders as well as the presidents and general secretaries of all the political parties for the restoration of peace in Swat. 

Bilour expressed concern over the deteriorating economic situation, hunger, unemployment, price hike and lawlessness, saying 2.2 million Pakhtuns were killed during the Afghan war and now, they were being pitched against the US under a conspiracy. He posed a question as to how industries could be established on such a land where bombs were being rained and innocent people being killed. 

The minister expressed helplessness in bringing the Pakistan Railways out of the heavy deficit and attributed the losses to the extra-burden in shape of factories and workshops. He said that only the Mughalpura Railway Workshop in Lahore had more than 11,000 workers, adding that the Locomotive Factory, Risalpur, and four sleeper-manufacturing factories in different cities of the country also required financial resources. 

The running of train service was the only source of earning for the Pakistan Railways, he added. He said that after the assassination of Benazir Bhutto, people torched 35 locomotives and 53 railway stations in different parts of the country. 

He vowed to streamline the affairs of the Railways Ministry and minimise the deficit, which had climbed to Rs 3.1 billion annually. He said when he assumed the charge of the ministry, the deficit was Rs 1.48 billion. 

The railways, he said, also owed Rs 20 billion to the State Bank of Pakistan under the head of loans. He said the Pakistan Railways had also purchased land at the Gwadar Port to link it with Peshawar and Karachi.

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## Jihad

Neo, are we talking about a metro or subway here?


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## Omar1984

Karachi needs an underground train service, there's way too much traffic in Karachi.

Very good news for Pakistan


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## Neo

Jihad said:


> Neo, are we talking about a metro or subway here?



Yes indeed. Metro and a circular railway net.

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## Neo

*EU, Pakistan sign aviation deal​*
BRUSSELS: The European Union (EU) and Pakistan on Tuesday signed a civil aviation deal, allowing EU-based airlines to operate flights to Pakistan from any EU state that already has an agreement with Islamabad. The agreement signed today is good news for both Pakistani and EU airlines, as well as for passengers, as it removes the legal uncertainty from existing bilateral deals, said EU Commission Vice President Antonio Tajani. The EU has negotiated similar accords, which in practice remove nationality restrictions for EU airlines under existing bilateral air services agreements, with 45 countries. The legal clarity was required because in November 2002 a European court ruled that air agreements between one EU nation and a third country were discriminatory and in breach of EU law.


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## Neo

*ADB to double assistance up to $3bn To finance Diamer-Basha dam​* 
Friday, February 27, 2009
By Mehtab Haider

ISLAMABAD: The Asian Development Bank (ADB) has offered to double its annual assistance to Pakistan from earlier planned $1.5 billion up to $3 billion in order to help it improve infrastructure and overcome budgetary difficulties. 

We can double our annual assistance to Pakistan for the next three years provided funds availability with the Bank increases, ADB Vice President Xiaoyu Zhao told reporters after holding a meeting with a Pakistani delegation, led by Minister of State for Economic Affairs Hina Rabbani Khar, on Thursday. 

The ADB is currently preparing a three-year Country Partnership Strategy (CPS) for 2009-10 to 2012-13 under which assistance to Pakistan could be jacked up to $9 billion from earlier planned $4.5 billion. The ADB on Thursday offered Pakistan to double its annual assistance up to $3 billion from earlier envisaged $1.5 billion from 2009, a senior official of the ADB said. 

An ADB delegation, headed by its Vice President Xiaoyu Zhao, called on Prime Minister Syed Yusuf Raza Gilani here at the PM House on Thursday afternoon, and agreed in principle to finance Diamer-Basha dam project. 

We can double Pakistans assistance up to $3 billion per annum provided Islamabad makes a request in this regard as well as funds with the ADB increases, the Banks vice president told reporters. On the most critical issue of tight monetary policy, he said the inflation was showing a declining trend and easing of monetary and fiscal policies could be done to give an impetus to sluggish economic activities. 

It is relevant to mention here that under the IMF prescription the government is reluctant to decrease discount rates that have resulted into choking the whole economic activities and slowed economic growth. 

Pakistan and the IMF during recently concluded talks at Dubai agreed to review the monetary policy in future line of Pakistan but the central bank will not ease down its monetary stance unless the core inflation comes down. 

When the ADB Vice president was asked about financing facility of the bank for mega water projects, he said the ADB was ready to extend its financing facility for construction of mega water projects in the country. 

The PPP-led government is making plans to construct over $12 billion Basha dam on which the work will be started within the ongoing calendar year 2009. 

He said the major challenge for Pakistans economy is lack of state of the art infrastructure, resulting into creating difficulties for achieving sustained growth. 

On this occasion, the minister of state for economic affairs hoped that the ADB would extend its $500 million budgetary support under Economic Transformation Programme before June 2009. However, during the meeting with the prime minister, the premier expressed the hope that this cooperation would continue for helping the country to overcome the shortage of energy, water and food through construction of new dams and other related projects. He said construction of farm to market road network, development of urban and rural areas, provision of equitable economic opportunities as well as improving the social sector particularly the health and education facilities are the foremost agenda before the government. 

The premier said the government is fully committed to reducing poverty, increasing per capita income, generating more jobs and improving the living standard of the people. He said owing to prudent economic policies undertaken by the government, the economy is now started showing positive results.


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## Neo

*Road linkages to boost Pakistan, Kazakhstan economies: minister​* 
ISLAMABAD (March 03 2009): Federal Minister for Communication, Dr Arbab Alamgir Khan, has said that establishing road linkages between Pakistan and Kazakhstan would immensely benefit the economy of both the countries. He said this in his meeting with the Ambassador of Kazakhstan H E Bakhytbek Shabarbaye where they discussed the ways to enhance trade and transport relations between the two countries.

He further said that the present government wanted to establish a more close and cordial relationship with Kazakhstan. He said that Benazir Bhutto was the first Pakistani leader who visited Kazakhstan. He said that the present government wanted to take the vision of the great leader forward and expand the trade activities between Pakistan and Kazakhstan.

He said that the government was working on a plan to establish a world class road infrastructure. He said that our aim was to link the Gawadar and Karachi ports with the neighbouring countries through Highways and Motorways. He informed that Lowari Tunnel project was near to completion, which would give Pakistan a short and easy access with Tajikistan and other Central Asia republics.

He said that under Chairman National Highway Authority (NHA), a delegation would soon visit Kazakhstan and hoped that people related to road and transport industry in Kazakhstan could come here and explore new possibilities of investment in Pakistan.

He said that visa rules between two countries needed to be made more relaxed to give people a chance to have greater interaction with each other that would ultimately result in greater understanding between the two governments. The Ambassador thanked and said that his government shared Pakistan's efforts for better relationship between the two countries. He formally invited the minister for the first ACD Ministerial Transport Forum to be held in Astana in April, which was happily accepted.


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## Neo

*Shaheen Air plans used, new Boeing purchases ​* 
Wednesday, March 04, 2009

ABU DHABI: Shaheen Air plans to buy seven used and two new Boeing aircraft and start flights to India and Iran, its executive director said on Tuesday.

We have almost completed the process of acquiring seven Boeing 737-200 aircraft from an airline in South Africa, Khalid Bashir Anjum told Reuters on the sidelines of an aviation conference in the United Arab Emirates. He did not give details. We will also be acquiring two new Boeing 737-900 ERs by end-2010. The new aircraft will enable Shaheen to start new routes to Mumbai and Mashhad in Iran, he said, adding that Shaheen would also increase flights to Dubai, Abu Dhabi, Kuwait and Muscat.

The airline, which has a fleet of seven Boeing 737s, flies to six destinations in the United Arab Emirates, Oman, Qatar and Kuwait.

Shaheen stopped flights to Leeds in Britain last year after fuel prices peaked, he said. But we are thinking about resuming flights to the UK, to some secondary airport, and to Canada provided fuel prices remain stable and not too high said Anjum, adding that the airline may lease a few Boeing 777 ERs for the flights.

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## Neo

*Pakistan, Turkey, Iran to start container train service ​* 
Thursday, March 05, 2009

KARACHI: Pakistan, Turkey and Iran have decided in principle to operate container train service from Istanbul to Islamabad via Tehran and Iran, in the first phase and a passenger train service in the second phase.

The technical details of the first phase container train service were discussed threadbare at a meeting of senior railway officials of three countries held in Tehran with Pakistan represented by General Manager Railway (Operation) Saeed Akhtar.

On return on Wednesday morning from Tehran, Saeed told APP that tentatively it has been agreed to start this container train service from August 14. The train, he pointed out will either start from Islamabad on August 14 or arrive Islamabad from Istanbul on the day of Independence of Pakistan.

We want to make it a ceremonial occasion to launch the container train service from Islamabad while Turkey is pressing its launch from their end. However, GM Railway said, even if it starts from Istanbul we have told them that the train should reach Islamabad on August 14.

Akhtar said that during the meeting various issues were raised, particularly the customs related formalities and since there was no custom representative present in the meeting, it was decided to sort out this issue in the next meeting to be held in April, in which representatives of customs from three countries would also be invited.

Replying a question, the railway operational chief said that Tehran has completed the track between Zahidan and Kirman and the same has been linked up with Pakistan side of railway network. He pointed out that Turkey and Iran already have railway link up at their borders and both have freight and passenger train services.

To another question, he said, that prior to launch of the container train service, there could be problems of technical, administrative and security and these would be discussed in the April meeting. Replying a question, he said the size of the train would depend on the availability of business containers. However, he hoped that the first train would carry about 40 containers.


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## DarkStar

yaar....737 mut lena....they have started dropping like flies....


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## Neo

DarkStar said:


> yaar....737 mut lena....they have started dropping like flies....



The -800/900 series is ok, older -200/300 series should be avoided.


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## Neo

*Faisalabad-Multan motorway: construction of Rs 40 billion project to start soon​* 
ISLAMABAD (March 07 2009): The construction of long-awaited (Faisalabad-Multan) motorway M-4, costing Rs 40 billion, will start soon. The project, to be financed by the Asian Development Bank (ADB), was designed by the National Engineering Services Pakistan Pvt Limited (Nespak), well placed Sources in the National Highway Authority (NHA) told Business Recorder here on Friday.

The sources said that M-4 (Faisalabad-Multan) motorway was the biggest project of the country. They revealed that all the land required along the motorway had been acquired and the tenders for initiating construction work would be floated in April. The work on the project is expected to start by August. It is a three-year project to be completed by 2012 with a total cost of Rs 40 billion.

They further said that total length of motorway is 223 kilometres. It will start at Kamalpur near Faisalabad and will pass through Painsara, Gojra, Toba Tek Singh, Shorkot, Khanewal and end at Multan. Sources added that the project would be a four-lane motorway with structures (bridges etc) for six-lane.

Maximum design speed on this motorway would 120-kilometre an hour and there would be 25 bridges, 42 flyovers and five service areas, they added. There will be seven interchanges (Faisalabad, Painsara, Gojra, Toba Tek Singh, Shorkot, Abdul Hakeem and Khanewal) on the road. With the completion of M-4, the total length of motorways in Pakistan would exceed 800 kilometres and the people would enjoy the world class travelling facility right from Peshawar up to Multan city.

The sources said that it was among the priority projects of NHA, being a part of National Trade Corridor, and added that the development of new roads would contribute to the prosperity of the people, while the country would be made hub of trade and economic activities through development of communications network to reap the real benefits of the countrys geo-strategic location.

Prime Minister Yousuf Raza Gilani during his visit to Multan last year announced that the National Highway Authority would execute the much awaited project by July 2008, but due to some reasons the project was delayed and now it is expected to start in August.

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## hj786

Do loans from the Asian Development Bank have high interest rates?


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## Neo

hj786 said:


> Do loans from the Asian Development Bank have high interest rates?



No, most of these loans are soft and have a 7 year run.


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## Bane Blade

I came across this article and was wondering if PIA was actually going to make profits or is this just a bunch of PIA enthusiasts being over optimistic.

Pakistan&#8217;s PIA is back. In Black. Tech Lahore


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## ajpirzada

*Lowari Tunnel project Work on second phase in full swing* 

By Our Staff Reporter 

ISLAMABAD, March 8: The National Highway Authority (NHA) has completed excavation work on the Lowari Tunnel project which will be opened for traffic next year, NHA spokesman Kashif Zaman told this reporter on Sunday. 
He said after completion of the first phase on January 14, speedy work was in progress including laying of railway track, air ventilation system, lighting system, walkways and a loop in the middle of the passage. Once operational, the 8.5 kilometerlong Lowari Tunnel will be the biggest project of its kind in Pakistan, he added. 

General Manager Lowari Tunnel project Col (retired) Salman Rashid told Dawn that the cost of the project prepared in the year 2000 was about Rs8 billion which was now likely to touch the Rs13 billion mark due to the continuing rise in prices. &#8220;We are working on the revised cost,&#8221; he added. 

According to the plan, a rail will run through the seven-metre wide tunnel. 

Vehicles of all kinds with the passengers on board will be uploaded onto the rail at one end of the tunnel and downloaded at the other. 

The rail proposed to be run through the track will have the capacity of carrying about 23 vehicles. In the middle of the tunnel, there will be a loop for changing track by the trains. Approach roads will also be constructed on both sides of the tunnel. 

The tunnel will provide the valley of Chitral with an allweather route besides giving Pakistan a short and easy access to the Central Asian countries. The opening of the tunnel will also boost tourism and trade activities in the area. 

The GM said the tunnel was a complex project and, therefore, technical assistance was sought from foreign experts. Accordingly, Austria provided all the technical help in excavation of the tunnel while Spain will assist the NHA in laying of the railway track and engines, he said.

islamabad, march 8: the national highway authority (nha) has completed excava- tion work on the lowari tunnel project which will be opened for traffic next year, nha spokesman kashif zaman told this reporter on sunday. he said after completion of the first phase on january 14, speedy work was in progress in- cluding laying of railway track, air ventilation system, lighting system, walkways and a loop in the middle of the passage. once operational, the 8.5 kilometer- long lowari tunnel will be the biggest project of its kind in pakistan, he add- ed. general manager lowari tunnel project col (retired) salman rashid told dawn that the cost of the project prepared in the year 2000 was about rs8 billion which was now likely to touch the rs13 billion mark due to the continuing rise in prices. &#8220;we are working on the revised cost,&#8221; he added. according to the plan, a rail will run through the seven-metre wide tunnel. vehicles of all kinds with the passengers on board will be up- loaded onto the rail at one end of the tunnel and downloaded at the other. the rail proposed to be run through the track will have the capacity of carrying about 23 vehicles. in the middle of the tunnel, there will be a loop for changing track by the trains. approach roads will also be constructed on both sides of the tunnel. the tunnel will provide the valley of chitral with an all- weather route besides giving pakistan a short and easy ac- cess to the central asian coun- tries. the opening of the tunnel will also boost tourism and trade activities in the area. the gm said the tunnel was a complex project and, therefore, technical assistance was sought from foreign experts. accordingly, austria provided all the technical help in excava- tion of the tunnel while spain will assist the nha in laying of the railway track and engines, he said. 

Lowari Tunnel project Work on second phase in full swing


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## Neo

*Tender for Thar airstrip to be invited soon ​* 
Tuesday, March 10, 2009

KARACHI: An international tender for an airstrip in Thar, approved by the government a few days ago, would soon be called for starting work there as part of efforts to utilise coal reserves on war-footing to meet energy needs of the country, according to Senator-elect Dr Khatumal Jeewan.

In an interview with The News, Dr Khatumal, former adviser to Sindh chief minister on mines and mineral development and chairman Thar Coal Authority, said the airstrip was planned to be built at Shava Jo Daro after addressing concerns of the Civil Aviation Authority and the defence ministry, but regrettably, former Sindh chief minister abruptly changed its location, resulting in litigation. However, the present govt resolved the issue around 10 days ago and the airstrip was brought to its original location.

As the need of water would increase after mining there, he said, the Water and Power Development Authority (WAPDA) had also approved a canal there. Moreover, around 25 river osmosis plants had been planned, each having capacity of producing one lakh gallons of water per day by turning salty water into sweet water.

Metalled roads from Karachi and Hyderabad to Thar had been constructed. Efforts were also being made to provide drinking water in Nau Kot. A 25-bed hospital was in the process of completion to meet any eventuality as accidents may occur in mines while a 25-room hotel was in final stages in Islamkot to provide better accommodation facilities to investors there.

Everything is ready now for utilisation of coal reserves, he said. As the country was facing energy crisis, the government had started focusing on utilisation of coal reserves for power generation. The Sindh government had launched a joint venture, in which six multinational companies were involved. An international conference was held in Washington in collaboration with the World Bank for utilisation of coal reserves where around 36 companies showed interest, he said.

Five blocks, each having one billion tonnes of coal, had been given to companies/groups at cheaper rates, which the government cancelled, he said. President Asif Ali Zardari during his two visits to China tried to revive an agreement with Shenhua Group Corporation with whom a memorandum of understanding was signed but WAPDA changed the tariff. He said the country was giving up to 17 cents per unit on thermal power plants while the MoU with Shenhua offered 5.7 cents per unit. When the former government signed the MoU with Shenhua, it was a government company. Later, it was taken over by private groups and President Zardari was trying to revive the agreement with it.

He said a Chinese firm had signed a contract for utilising coal in Tando Mohammed Khan and Mulla Katiar where it would establish a 300-megawatt coal-based power plant. He said six blocks had been prepared and millions of dollars were spent on them. Cost of drilling one hole comes to Rs2 million and PCSIR gets Rs55,000 for test of one layer.

A British company had been given one block, which would conduct a study within three months. Later, we would give them a licence for exploration and a power plant would be established within three years.

Another block had been given to the World Bank. He said the PPP government had focused on energy. The president and prime minister had issued instructions for utilising coal reserves on war-footing. For this purpose, Thar Coal and Energy Board was set up under the chairmanship of Sindh chief minister and comprised minister for power and representatives of other federal organisations to provide one-window facility for investors.

Keeping in view growing energy crisis, Prime Minister Yousuf Raza Gilani called a high-level meeting for utilisation of Thar coal reserves attended by the four chief ministers and Dr Khatumal. Representatives of National Electric Power Regulatory Authority (NEPRA) and Private Power and Infrastructure Board (PPIB) were also invited to resolve tariff issue.

Thar coal reserves were discovered in 1988 when drilling was carried out for water by the then Sindh Arid Zone Development Authority (SAZDA). Dr Khatumal, also a member of SAZDA, recalled that in the second PPP govt, Benazir Bhutto inaugurated work there. It was the vision of BB to utilise coal reserves in Thar.

She had also launched Keti Bunder project, which was a huge coal project where 5,000 megawatts power plant was supposed to be established. But regrettably, it was stopped by the next govt, which did not give any attention to mineral development.


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## fatman17

*China confirms two more nuclear reactors for Pakistan *
March 10th, 2009 - by 2point6billion.com 



As we reported last October, China has now begun work on designing two nuclear reactors for Pakistan to be housed in the countries Chasma Nuclear Power complex in Punjab. The Chinese State run Shanghai Nuclear Engineering Research & Design Institute has just announced it has begun designing the third and fourth generators for the Pakistan complex.

Of the first two, one is currently being installed and will be operational by next year, while the first has been online and linked into Pakistan&#8217;s energy grid since 2000. The new reactors will have a capacity of 325 mgw each, while improvements and upgrading of the first reactor will also be taking place. China&#8217;s Shanxi Diesel Engine Heavy Industry Company has already provided the emergency diesel generation system for Chasma, while a third company, China Zhongyuan Engineering, is the general contractor.

Reports from Pakistan have stated that Beijing is to finance 85 percent of the project, estimated at US$1.61 billion, however China has to date remained silent on the matter.

Chinese-Pakistani ties have always been friendly. Following the saying my enemy&#8217;s enemy is my friend both nations have been supporting each other politically and militarily.

When India and Pakistan were on the brink of war recently, Pakistan had requested China their ally and India&#8217;s largest trading partner to intervene, to restore peace in the region. China has also not being shy in economically supporting Pakistan in infrastructure, water and power projects.

*Ties between the two nations had mellowed in 2007 during the height of China&#8217;s growth and Taliban activity in Pakistan; however now post the India-U.S. nuclear deal and the Mumbai attacks, China-Pakistan ties have strengthened.*

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## Neo

*Funds for construction of Peshawar-Torkham Highway received ​*
PESHAWAR (March 12 2009): The Government has received funds from the Asian Development Bank (ADB) and World Bank (WB) for the construction of Peshawar-Torkham Highway, said Secretary Communication Sharif Ahmed. He was addressing ground breaking ceremony of NHA Complex here at Chamkani Interchange on Wednesday.

Federal Minister for Communication Dr Arbab Alamgir Khan Khalil was chief guest on the occasion. Secretary Communication Sharif Ahmed said that ADB and World Bank have provided funds for the mega highway project, which on completion would provide an easy access to the Pakistani products to capture the Central Asian markets.

The technical design of the project has already been approved, he told the audience. He also mentioned about other gigantic projects initiated by his ministry and currently underway in the frontier province. He said that construction on Northern Bypass project costing Rs 11 billion was also in progress by the NHA.

Similarly, he said, Malakand tunnel project was also in the pipeline that will be completed at a cost of Rs 90 million dollars. The construction work on it would start shortly, he added. Secretary Communication said, Lowari tunnel project was nearing completion and expected to be ready in one and a half-year.

He told the audience that NHA was also constructing Basha dam road besides undertaking Kohat-Bannu-DIKhan road project (N-55). A bridge would also be constructed in Khushal Garh to have another road connecting NWFP with Punjab.

He also took notice of the removal of the fences along M-I Peshawar-Islamabad in areas falling in the jurisdiction of the NWFP and urged the people to protect the road from such damages as it was their project. He said now the government has decided to recruit people from the respective areas to protect fences along the motorway in the NWFP section.

Earlier Secretary Communication briefed the Federal Minister about the NHA Complex Project, which will cost Rs 1073 million. It would be multi-story building and separate accommodation for the officers and officials of the NHA. Chairman NHA Chaudhry Altaf and high ranked officials of the Ministry of Communication, NHA and Motorway Police attended the event among others.

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## Neo

*Air China to launch direct Chengdu-Karachi flights from March 30​*
BEIJING (March 13 2009): Karachi will be added to Air China international network from Chengdu from March 30. The airline will launch its Beijing-Chengdu-Karachi flight to connect Chengdu with Pakistan, media report said. The Boeing 757 aircraft will be used for twice a week Tuesday and Friday-flights.

The plane will leave Beijing at 1630 hrs, after pausing at Chengdu, at 2010 it will fly for Pakistan and land in Karachi at 2350 hrs local time. The return flight will take off from Karachi next day. It will take 6 hours to cover the 4,500 kilometers distance costing around 4,000 yuan.

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## fatman17

*UAE, Korea to set up 1,000MW power plant*

KARACHI: Sindh Chief Minister (CM) Qaim Ali Shah held a meeting with an eight-member delegation of UAE&#8217;s Bin Din Group and Korea&#8217;s Petroleum Development Corporation (PEDCO) on Saturday to discuss the working on development blocks of the Thar Coal Project and considered the details of the Letter of Intent. According to details, PEDCO would work for three years in Block 4 and 8 and start drilling and boring for coal mining where after power generation will start. The Korean company will setup a 1000MW mine-mouth thermal power plant by using Thar coal reserves.

The meeting was informed that the Mines and Mineral Development, Law Department, Thar Coal and Energy Board and CM Secretariat would examine the details of the agreement being prepared for the proposed project. The Thar Coal Energy Board will hold an important meeting on Tuesday in this regard, while the agreement signing is expected on Thursday. PEDCO&#8217;s representative revealed that this would be Pakistan&#8217;s biggest thermal plant, providing energy to two million households and six lac industrial units, while generating job opportunities for 90,000 skilled and non-skilled workers. The representative of Bin Din Group informed the meeting that besides the power plant, schools, a college and a hospital would also be setup in the area.* app*

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## Neo

* Work on Water Container Terminal to start in April ​* 
Wednesday, March 18, 2009

KARACHI: Federal Ports and Shipping Minister, Babar Ghauri has said that his ministry is working on reducing the port charges so that our importers, exporters and port users are mainly benefitted.

He stated this while talking to journalists after a visit to berths 10 to 14 at East Wharf, on Tuesday, which had collapsed during 2007 heavy rains and are now being reconstructed. He was accompanied by Chairperson KPT, Nasrin Haque and other officials.

He said the berths are being reconstructed at a cost of Rs5.5 billion out of which $15 million have been provided by the World Bank. Ghauri said after completion of the work, port will move into the second phase during which additional berths from 15 to 17 will be constructed.

He informed that efforts are in hand for modernisation of Karachi Port, Port Qasim and Gwadar Port and to bring them at par with the worlds best ports. The minister told newsmen about the Deep Water Container Terminal with a draft of 18 meters, which is going to be constructed at Karachi Port and said work will hopefully commence next month with ceremony to be performed by prime minister.

He said work was to start in March but due to prevailing situation, its ceremony will now be held in April. Referring to berths he visited, Ghauri pointed out that these were the very berths which had collapsed in 2007 due to heavy showers and soon work on their reconstruction was taken up through a Korean company.

He said the berths have further been deepened and its along side will be 16 metres deep as against the previous 12.5 metres which will facilitate the big ships to sail in future. He said the company has been given March 2010 as the completion year.

He said that problem being faced is the debris of last two berths which had collapsed, is lying underneath and technical problems are being faced to remove that. For this purpose various contractors have been contacted so that the pace of work is expedited.

Replying to a question, Ghauri said that every berth has an age limit and, therefore, wherever and whenever required, these will continue to be reconstructed.

To another question federal minister said that Task Force setup for the development of PNSC has recommended induction of 10 new ships into its fleet. He said efforts are being made to resolve the funding problem and in this regard various institutions are being approached.

He said induction of new ships would help enhance trade volume for the corporation. APP

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## Neo

*Pakistan needs $40bn for infrastructure development: ADB ​*
Saturday, 21 Mar, 2009

RAWALPINDI: Pakistans physical infrastructure is inadequate in comparison with world standards and has been identified as one of the critical reasons holding back more rapid economic growth in the country. 

An assessment report on the private sector carried out by the Asian Development Bank stated that the infrastructure sector in the country consists of power, telecommunications, roads, ports, railways, air transport, urban infrastructure, information technology cyber parks, and industrial estates. 

The public sector has been the main provider of basic infrastructure in Pakistan. However, given the major unmet needs and limited fiscal space, the governments capacity to address the infrastructure deficit is severely constrained. 

To augment limited public resources for infrastructure, private sector participation in infrastructure development has to be encouraged by creating the necessary enabling environment for increased private sector involvement. 

While Pakistan holds up generally well on infrastructure sector performance compared to other South Asian and low income countries, it is clearly way below the averages for the OECD countries. 

Pakistans electricity and power infrastructure has already come under major strain, and there is a danger that the infrastructure sector in its totality will become a major bottleneck for continued growth and development unless a well designed long-term strategy to enhance infrastructure investment and expand private sector participation in infrastructure development is evolved and implemented. 

The report said that the potential of the private sector to meet Pakistans pressing infrastructure needs is largely untapped. Thus far, the governments initiatives to promote the private sectors role have only succeeded to a certain extent with private sector investment having come in the power and cellular telecommunications sectors. 

The private sector is now also setting up an oil terminal at the Karachi Port. There is also a proposal to set up an urban mass transit system in Karachi by the private sector. But attempts to privatise the road infrastructure, for example, have met with little success.

As another example, other than a public-private desalination project in Karachi, the private sector has not financed any water supply and sanitation projects or projects targeted at solid waste management, it stated. 

Available data indicates that Pakistan had total private sector investment in infrastructure of $17.206 billion during 1990-2006, with a major concentration of 96 per cent in the energy and telecom sectors. There was very little private investment in transport and no investment in water and sewerage sectors. 

Despite the laggard interest of the private sector so far, the government remains keen to tap private sector participation and investment in the infrastructure sector. The MTDF for 2005-10 has earmarked $16 billion for public sector investment in the infrastructure sector. 

Pakistans total requirements for infrastructure development over the next five years are in the range of $40 billion, but are much higher at about $65 billion if the planned large water storage dams are also included. 

The funding gap between the total requirements and the available governments public sector resource is expected to be filled by the private sector. Such a strategy, however, seems very ambitious given the existing constraints to private sector participation in infrastructure development. 

The bulk of private sector financing for infrastructure development in Pakistan, concentrated in the telecommunication and financial sectors, has been generated offshore and entered Pakistan as FDI. 

In order to encourage private sector financing in other infrastructure sectors like road networks and transportation and water and sanitation, it will be essential to tap domestic financial markets given that foreign capital would be less likely to flow in these riskier sectors. 

However a major constraint to generating domestic sources is the absence of a secondary market in debt securities and the governments pre-emption of funds of large public sector savings institutions like the State Life Insurance Company and provident and pension funds - some of the potential major providers of long-term investment funds. 

The absence of an active market in long-term debt securities is a major reason for the dearth of local financing in the amount and tenor required to finance infrastructure. 

Considering the large investment requirements for infrastructure development, direct financing from financial institutions would be insufficient given the balance sheet and credit exposure limitations of these institutions. 

The alternative would be to raise funds directly from the public. 

To do this would require, in conjunction with ongoing capital market reforms, raising institutional capabilities and developing financing instruments that more appropriately meet the long-term financing requirements of infrastructure projects so that resources can be mobilised on a sustained basis. 

Over the long-term, only an efficient and properly functioning banking sector and capital market can sustain large-scale infrastructure financing in the country. 

While some progress in developing a corporate bond market was made during the period 2000-03 using typically term finance certificates (corporate debt paper issued in Pakistan with maturity generally not exceeding five years), the stock market boom and low interest rates effectively stopped further growth and development of the market for longer term maturity bonds. In addition, markets or instruments do not exist at present for zero coupon municipal bonds in Pakistan due in part to the legal constraint on local and provincial government to directly issue debt.

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## Neo

*PQA liquid cargo terminal: $11.4 million mega project to be operational from March 28​* 
KARACHI (March 24 2009): The Port Qasim Authority (PQA) would bring the $11.4 million Liquid Cargo Terminal (LCT) at Port Qasim to be operational from March 28, 2009. According to official sources at PQA, the Authority had declared the draft and dimensions for the newly-built terminal, the operation of which had long been hindered by at least seven decade-old naval moorings, comprising four underwater sinkers and four buoy chains, at Marginal Wharf, Berth No-1.

The PQA, operator of the Port Qasim, had set an overall length of 170-metre, 30-meter beam and 8.5-meter draught for the LCT, a project of M/s FWQ Enterprise, they added. The sources further said the terminal would start handling the liquid cargo ships from Saturday, March 28, with a vessel carrying around 12,000 metric tones of Malaysian palm oil, being the first to anchor at the facility on the same date.

Another PQA official, however came up with a different date for commissioning of the LCT saying that the terminal would start functioning on March 26 but not on March 28. It is worth mentioning that the PQA had declared to complete and commission the $11.4 million LCT project by January 2008, but the reason of removal of naval moorings from navigational channel, delayed the time frame set by the PQA.

The Authority had allocated Rs 77.90 million for the removal of moorings that according to sources, was a stumbling block for PQAs mega projects, like the project of Deepening and Widening of Channel worth Rs 10.3 billion. Earlier, the PQA had set a designed capacity of 4 million tonnes per annum for the LCT dredging and work on which, had been commenced in March 2007.

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## Neo

*NPPCEG asks govt to decentralise fiscal power, infrastructure uplift​*
ISLAMABAD: The first meeting of the National Policy Platform for Competiveness and Economic Growth (NPPCEG), a new initiative of the Competitive Support Fund (CSF), discussed key policy issues for analytical work and policy advice to the government for improving competitiveness of the economy.

The meeting was inaugurated by the State Minister for Finance and Economic Affairs, Hina Rabbani and chaired by Shahid Javed Burki, Chairman of NPPCEG.

Shahid suggested the government to decentralise fiscal power and let provinces decide about the use of their resources. He also suggested net cash support to low-income people as an effective tool to cope with the situation.

Various policy initiatives are needed to counter the situation and for economic turnaround, massive development projects in the social sector and infrastructure must be started to arrest the growing poverty, experts suggested.

After the meeting Burki said poverty would increase in Pakistan while the per capita income may decline significantly due to the current economic slowdown. Burki said the platform would strengthen the capacity of the Pakistani research institutions and think tanks to carry out applied research and economic and policy analyses.

NPPCEG participating institutions offered feedback on the issues identified and suggested potential alternatives. The meeting also decided to task certain member institutions to conduct further public policy analyses on the selected topics prior to the Platforms next meeting, at which time the findings would be discussed, and concrete actionable recommendations would be prepared for the Government of Pakistan. The NPPCEG institutions primarily comprise of reputed experts from the public-private and academic sectors.

Hina Rabbani Khar emphasised that one of the key objectives of the National Policy Platform would be to play the role of a learning platform to strengthen the capacity of the Pakistani research institutions and think-tanks to carry out applied research and economic and policy analyses.

These institutions would then be in a position to analyze the Governments economic reform agenda and inform its policymaking decisions. She said: The other key objective of the platform will be to launch a dialogue with the policy-makers in the public and private sectors. These activities will continue to inform the debate on competitiveness and economic growth.

Addressing the meeting, Burki noted: The process of globalization has changed the structure of production and trade in the world economy. With the extraordinary development of information and communication technologies, economists have given up classifying products of the service sector as non-tradeables. There are a number of new opportunities that have opened up for countries such as Pakistan that have large and young populations and are physically close to some of the more rapidly growing and dynamic countries in the global economy. The work proposed by the NPPCEG aims to identify some of the areas in public policy that could help Pakistan to achieve its considerable economic potential.

Arthur Bayhan, Chief Executive Officer of the Competitiveness Support Fund, said: Pakistan, with its increasing economic challenges, requires that the issues impacting the competitiveness of the economy are those which are tackled on an immediate basis. We believe that the best outcomes can be achieved when we coordinate across a broad continuum of stakeholders and donors. By combining our efforts with those of multiple organisations, we can improve the economic health of Pakistan.

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## Neo

*'Development on mass transit system within six months'​*
ISLAMABAD (April 05 2009): Chief Commissioner Islamabad, Fazeel Asghar on Saturday said that Cabinet Division and Capital Development Authority (CDA) are working to introduce a mass transit system and significant progress is expected in this regard within six months.

He stated this while inaugurating new route (No 140) being started for providing best transport facilities to the citizens of Islamabad. A private company with the name of Islamabad urban transport system has started plying luxury buses also on this route which will start from Bari Imam to G-15 Golra mor.

Addressing the opening ceremony of new route at national university of science and technology Nust, Chief Commissioner said that Islamabad Capital Territory (ICT) administration is reviewing all the routes in Islamabad in order to provide maximum transport facilities to the citizens.

He also appreciated the efforts of ICTA for launching new modern and comfortable bus service on the new route. He said that citizens of twin cities will greatly benefit from the transport system which is being re-vamped and will address the transport problems in the city in most effective manner.

Earlier, Director General Administration of Nust University Brigadier Arif Siddiqui (Retd) in his address appreciated the efforts of ICT administration for solving the transport problems of the citizens and acknowledged the launching of new bus service on this new route.

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## Neo

*Samsung solar powered mobile phone arrives​*
KARACHI (April 03 2009): Samsung Electronics Co Ltd, unveiled its first ever, innovative, solar powered cellular phone; Solar Crest in Pakistan, emphasising Samsungs vision and its pioneering efforts for environmental sustainability, said a press release on Thursday.As a global leader in cutting-edge technology, Samsung is leading the way into a greener future by utilising sources of renewable energy.

This innovation is a quantum leap towards technologies that will minimise reliance on ecologically harmful sources of energy. This handset is designed with integrated solar panels, thus it operates and recharges without any ecological deterioration. Solar Crest has been designed to create unmatched convenience for the customers; its solar technology has a special utility for cell-phone users residing in countries where electricity shortages are experienced quite frequently. -PR

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## Neo

*Intl Road Transport Agreement ratified by Federal cabinet​*
ISLAMABAD: Federal Cabinet has ratified International Road Transport Agreement signed between Iran and Pakistan under which traffic /trucks from Pakistan and Turkey would be able to ply through Iran while Iran will also have an access to China via Pakistan.

Besides boosting economic opportunities, the access to other Central Asian Republics and Europe through Iran and Turkey would be an added advantage to Pakistan.

Federal Cabinet met here on Wednesday under the chairmanship of Prime Minister Syed Yousaf Raza Gilani. According to the decisions, Federal Cabinet has also ratified agreement on cooperation in the field of transportation and transit of goods to provide Uzbekistan an access for the transshipment of their trade cargo to / from Gwadar port.

The cabinet approved ratification of agreement on cooperation in the field of transportation and transit of goods between the Government of Pakistan and Government of the Islamic Republic of Uzbekistan. The agreement envisages free traffic in transit to the carriers of contracting parties through multi model transport system (land, rail, sea) in accordance with their existing national laws and regulations. The main objective is to provide Uzbekistan an access for the transshipment of their trade cargo to / from Gwadar port.

In pursuance of the International Road Transport Agreement signed between the Governments of the Islamic Republic of Iran and Pakistan in June 2008, cabinet gave its approval for instrument of ratification concerning the agreement. This will facilitate the international transport by road of passengers and goods between the two countries and in transit through their respective territories. By signing this Agreement, traffic /trucks from Pakistan and Turkey would be able to ply through Iran while Iran will also have an access to China via Pakistan. Besides boosting economic opportunities, the access to other Central Asian Republics and Europe through Iran and Turkey would be an added advantage to Pakistan.

To further cement socio-economic and political relations with the Great Socialist Peoples Libyan Arab Jamahoria, the cabinet gave ex-post facto approval for initiation of negotiations for MoU on bilateral political consultations. It will provide a forum to take stock of the trajectory of bilateral relations and share views on issues of mutual interest. Ex-post facto approval was also granted for entering into negotiations for an extradition treaty with Libya. Approval was also granted for MoU for cooperation in the field of employment. Pakistan was one of the main suppliers of skilled and semi-skilled manpower to Libya during 1970s and 80s. However, due to stagnation in relations and absence of formal arrangements, the Pakistani manpower in Libya declined from over 100,000 to 10,000. The proposed MoU would help enhance cooperation in the field of employment/manpower export to Libya.

In order to strengthen cooperation in the areas of labour and occupational training with the Kingdom of Bahrain, cabinet gave its approval to start negotiations for entering into an MoU.

Pakistan is a signatory to the Agreement on establishment of South Asian Regional Standards Organisation (SARSO) that is mandated to remove technical barriers on trade to facilitate flow of goods and services in the SAARC region. Cabinet ratified the SARSO agreement.

Ex-post facto approval was granted for initiation of negotiations and signing of MoU with the Government of Republic of Korea for establishing Garment Technology Training Centre in Karachi. The project aims to enhance competitiveness of textile and apparel industry by providing skilled work force.

Cabinet approved the ratification of bilateral investment treaty with the Republic of Kazakistan on reciprocal promotion and protection of investments.


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## AliFarooq

*500 luxury buses to be on road soon, says Mujtaba*
Published: April 10, 2009
LAHORE - Under the aegis of Lahore Transport Company, 500 new luxury buses will be on road in one month while later on this scheme will be introduced in other big cities like Multan, Rawalpindi, Faisalabad and Gujranwala. The Punjab government will provide 25 percent subsidy on purchase of new buses and encourage private sector in transport sector.
Punjab Transport, Excise and Education Minister Mujtaba Shujaur Rehman expressed these views while talking to Sindh Transport Minister Akhtar Hussain Jadoon who called on him here on Thursday. Punjab Transport Secretary Shahzad Cheema was also present in the meeting.
Mujtaba Shujaur Rehman said that a comprehensive strategy has been evolved and Rs one billion subsidy has been sanctioned at Punjab level while Rs 150 million allocated in Lahore city only. He said that Punjab Chief Minister Shahbaz Sharif is fully committed to provide ultra-modern transport facilities to citizens of Punjab. He briefed his counterpart on the initiatives taken in different sectors by present the Punjab government.
Sindh Transport Minister Akhtar Hussain Jadoon said that Lahore and Karachi have same kind of problems in transport sector. He said that as per changing circumstances we should amend rule and regulations, accordingly. Secretary Transport Shahzad Cheema also briefed the meeting on the system working in Punjab.

The Nation...!!


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## Neo

*Pakistan needs $110 billion over five years: IPDF​*
ISLAMABAD: Pakistan is in need of substantial private sector investment requiring approximately $110 billion over next five years to cater to the infrastructure necessities for growing population, y Ghulam Murtaza Satti, adviser on Public-Private Partnership (PPP) said during an investors forum arranged by Infrastructure Project Development Facility (IPDF).

The investors observed that there should be consistency and continuity in the policies and stressed the need for legislation to cover loopholes in PPP. They quoted examples of Lahore Faisalabad road on BoT of Punjab Government and Lakpass tunnel project on BoT of NHA. The investors also quoted the statement of Minister of Ports and Shipping regarding cancellation of concession agreement signed between Government and Singapore Port Authorities, which can affect business environment in the country.

Talking to a group of investors, Satti said that elected government is fully cognizant of the importance of PPP and is laying emphasis for which IPDF is a focal entity. He highlighted the key issues like employment generation, economic empowerment and additional use of existing infrastructure associated with the economic development of the country. He further said that the PPP has also got support of the International Institutions like, World Bank and Asian Development Bank to carry out its policy.

Ghulam Murtaza Satti added that IPDF takes special care of the appropriateness of the transaction structure, sizing of the project to the right demand transaction suitability by taking into consideration the concerns of the investors and the lenders. Urging the investors, he assured them that their concerns will be taken care off while drafting concession agreements for the infrastructure projects in order to make them air tight so that these concessions should be workable and should not be affected by change of government.

Giving presentation to participants, IPDF team informed about 11 projects of IPDF worth of Rs 200 billion which are at various stages of the development. Representatives of Board of Investment, Daewoo, Fauji Foundation, FWO, Inter Construct Pvt. Ltd., Lakson Group, PTCL, Sachal Engineering, SCG, Development Infrastructure, Infrastructure development Company, Habib Rafiq Pvt., MCB Bank, Emaar Pakistan, TGS, SCG and IDC attended the investor forum.


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## Neo

*Plan underway to air-link Mirpur with the world​*
MIRPUR (April 11 2009): AJK government is seriously contemplating to air-link Azad Jammu and Kashmirs fast expanding model city of Mirpur with rest of the world through the establishment of an international airport in order to provide direct air-travelling facilities to the people including over 700,000 of Britain based overseas Kashmiris belonging to Mirpur division, official sources said.

AJK government has decided in principal to establish its own airline, the Kashmir Airline, besides the emergence of a full-fledge international airport in Mirpur, the sources told APP here on Friday. The proposed Mirpur International Airport would provide direct and most comfortable air travelling facilities to the overseas Kashmiris to their ancestral town of Mirpur.

A bright potential is already available in the area to materialise the plan which would, indeed, prove to be the strong source of the local economy of AJK, the sources added. Highlighting various other development projects proposed to be launched in Mirpur under a phased programme, the sources said that a mega industrial zone was also being established over an area of 25,000 kanal in Mirpur.


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## Neo

*Prime Minister to inaugurate Multan Airport expansion project today​* 
MULTAN (April 11 2009): Prime Minister Syed Yousaf Raza Gilani will arrive here today (April 11) on one day visit of Multan. He will attend an inaugural ceremony of project of Multan Airport expansion & upgradation, groundbreaking ceremony of Multan-Faisalabad Motorway and Aimen Wala Bridge at Jalalpur Pirwala.

The Prime Minister has approved a project to revive the handicrafts, cultural heritage and civilisation of Multan, the ancient city of the world, by patronising the blue pottery, camel skin decoration pieces, and mud-pottery with the collaboration and financial assistance of Multan Chamber of Commerce and Industry (MCCI).

Gilani would formally announce these projects for imparting training to youth in different traditional trades. MCCI President Anis Ahmed Sheikh said, "we would produce the young experts in camel skin crafts, blue pottery, mud pottery etc to preserve this dying cultural heritage.

He said that Aik Hunar Aik Nagar (One Place, One Product) project envisages to study and emulate OVOP (One Village, One Product) of Japan and other similar programmes for income generation of rural and urban population with a view to identifying the best practices and adopt the same for design and implementation of rural enterprise modernisation initiative of the government of Pakistans AHAN programme, keeping in perspective the overall policy to use the private sector as the engine for rural enterprise development.

Anis Ahmed Sheikh said that primary objective of Aik Hunar Aik Nagar (AHAN)/Rural Enterprise Modernisation Project is to reduce poverty by supporting employment generation activities, economic growth and enhancing competitiveness of the micro and small business in rural areas.

The project envisages enabling the rural business to access a range of business development services, including appropriate technologies and financial capital. The direct benefits are expected to flow from increased employment and income earning opportunities in the rural areas, particularly for wage earners, women and poor producer groups with potential to engage in a higher level of commercial activity.

It is expected that through these measures there will be increased value-addition in the products, improved commercial linkages between rural MSEs and the larger urban business. Increased demand for goods and services will add to overall benefits. He said that 25 youths would be trained in camel skin trade with the technical guidance and training by AHAN experts.

Naveed Ahmed Sheikh, Regional Co-ordinator of AHAN said we had developed five diagnostic studies ie, Lacquer Work Cluster, Sillanwali, Balochi Chapal Cluster, Quetta, Handmade Items Cluster, Karachi, Hand and Power Loom Cluster, Matha Mughal Khel, Blue Pottery & Camel Skin in Multan.

He said that AHAN was serving for the development & implementation of marketing strategy including market analysis, product selection, brand development, promotional campaign, test marketing and distribution system for rural non-farm products of Pakistan enterprises development support in rural areas. Management of resources capacities includes production management, quality assurance, supply product chain management for rural enterprises and clusters.

Management of design and technological development of products targeted by the programme includes contracts and proforma agreement, development patents and technology, procedures for product development and quality assurance. Imran Cheema of AHAN Multan, Mian Mughis Ahmed Shaikh former president of MCCI, Abdul Rehman Naqqash, Ms Sanam (designer), Muhammad Wajid, Anwar Salim Keen, Shamshad Jafari also discussed on the projects.


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## Neo

*Countrys first wind farm to be opened by month-end ​* 
Sunday, April 12, 2009

ISLAMABAD: Renewable energy technologies would be an essential element in Pakistans energy future making major contributions to the diversity and security of energy supply and to economic development, said Water and Power Federal Minister and Alternative Energy Development Board (AEDB) Chairman Raja Pervez Ashraf on Saturday.

He was speaking to the media after a briefing at the AEDB headquarters in connection with the inauguration of the countrys first wind farm planned for later this month. The federal minister reiterated the governments commitment to ending load-shedding by December 31.

Ashraf said the inauguration of the first wind farm would be a landmark in the renewable energy sector as the government pursues the objective of a clean and competitive energy future for the country.

The wind farm established by the Turkish Firm Zorlu Enerji has a six-megawatt installed capacity in the first phase. Five turbines have been installed, each with a capacity to generate some 149,137 kwh of electricity.

The power generated in the first phase would be supplied to the Jhimpir grid station by the Hyderabad Electric Supply Company for electrifying 7,400 homes. The project will produce sufficient electricity to do away with the production of approximately 10,500 tons of carbon dioxide each year, compared to a conventional fossil fuel power project. The farm would be later expanded in the second phase to generate 50MW of electricity.

AEDB Chief Executive Officer Arif Alaudin said 2009 would be remembered as the year when Pakistan received it first megawatts from wind. He said in addition to the Gharo corridor that has been opened for exploitation, several other corridors are being explored by the AEDB. Renewable energy, Alaudin underscored, must realise its rightful and significant position if we are to ensure that development, energy security and climate resilience are to be attained.


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## Neo

*All oil facilities to be shifted from Karachi to Khalifa Point ​* 
ISLAMABAD (April 12 2009): The government has decided to shift all oil installations from Keamari and Karachi port areas to Khalifa Point in Hub area of Balochistan in 18 months period, due to security concerns. Sources said that the government has received reports about security threats regarding oil installations in Karachi, and decided to shift these installations to Hub area of Balochistan.

Dr Asim Hussain, advisor to Prime Minister on petroleum, has already conveyed the decision to the oil refineries that the country needs a single buoy mooring to cater all oil imports. In a meeting held with the representatives of refineries in Islamabad, Asim said that the decision of shifting oil installations to Hub area was lying pending for many years, and further delay would only add to the cost of operations for the stakeholders.

After detailed discussions, a committee was formed, headed by Adil Khattak, Managing Director of APL, comprising nominees of refineries and the task for framing TORs by April 20, 2009, was assigned to the OCAC. The committee is expected to give its report by the end of May 2009 for further processing.

The refineries were informed that there was a serious strategic concern over the presence of large oil storage depots in the areas, which is very close to the navy installations. "Any accident can cause serious damage to Naval crafts and fixed installations near the oil jetty of Keamari," said an official of the Petroleum Ministry.

The meeting examined in detail the need for single-point mooring, and it was agreed that such a project was an essential requirement to diversify the strategic port operation. Dr Asim said that single-buoy mooring would not only add to the efficiency of oil imports, as large marine tankers would be able to enter the country.

He said that the single-buoy mooring was a floating jetty connected with the land through a two kilometres pipeline, and the tankers arriving with oil would get connected to the jetty. He said that initially all installations related to crude oil imports would be shifted from Keamari to Khalifa Point. and in the second phase it would be utilised for the import of diesel and petrol also.

The refineries and oil companies would be shifting all their storage depots from Keamari to the Hub area. "It will also add to the safety of millions of residents living in Keamari to Defence area," The meeting was attended by Managing Directors/CEOs of Pak Arab Refinery (Parco), National Refinery (NRL), Pakistan Refinery (PRL), Bosicar Pakistan (BPL), Pakistan State Oil Company (PSO), Asia Petroleum (APL), Pak Arab Pipeline Company (Papco) and Secretary General of Oil Companies Advisory Committee.


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## Neo

*US-based firm to build $1 billion 500 megawatts power plants at PQA and KPT​* 
KARACHI (April 12 2009): A US-based company will construct two power generation plants, 250 megawatts each, at Port Qasim and Karachi Port at an estimated cost of $1 billion. In this regard, M/s Matrix Group Consulting Limited (MGCL), Port Qasim Authority (PQA) and Karachi Port Trust (KPT) signed a memorandum of understanding at a local hotel on Saturday.

Federal Minister for Ports and Shipping Babar Khan Ghouri witnessed as President and Chief Executive Officer of MGCL Cathleen M Ihasz, Chairman PQA Mir Afsar Din Talpur and KPT Chairperson Nasrin Haque signed the documents on behalf of their respective organisations. The ceremony, which was scheduled to start between 2:30pm to 3pm sharp was delay by two hours.

According to Ghouri the two power generation projects, which would be completed in two different phases, would collectively add 500 MW to the shortage-stricken national grid in the first phase that would be expandable to 500MW more in future.

MGCL would finance the development of two facilities near Mauripur belt and Bin Qasim Thermal Power Plant at KPT and PQA respectively over the next two years. To make the project cost effective, the PQA plant would run on coal, while the one to be built at Karachi Port would consume wind energy, chairpersons of the two port operators, Talpur and Haque told Business Recorder.

The project, as per the agreement, would be carried out on 50:50 basis in which the foreign firm would provide the funds, while PQA and KPT will contribute land. The start-up of work on the projects, to be undertaken on fast track basis, would, however, be subject to the approval of government of Pakistan. According to representatives of KPT and PQA, the two facilities, which had a target to produce 870MW electricity by 2050 will also cater for the loadshedding-hit city in line with the corporate responsibility of the two port operators.

Talking to Business Recorder, MGCL chief Cathleen M Ihasz said her company had planned to bring more investment in Pakistan in the fields of energy and infrastructure development. Secretary Ports and Shipping Muhammad Saleem Khan, heads of various financial institutions, industrialists and prominent faces from the ports and shipping industry were also present on the occasion.


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## Neo

*Govt finalises 9-year investment plan for infrastructure development​*
ISLAMABAD: Government has finalised a $3.11 billion 9-year investment plan for reduction in cost of doing business and to enhance competitiveness of the economy of the country, official sources told Daily Times on Wednesday.

To ensure required financing for the projects included in this plan the government has decided to it to place before the Friends of Democratic Pakistan as well donors at Tokyo meeting scheduled on April 17.

The investment plan seeks to upgrade Pakistans highways to neighboring countries with an estimated investment of $975 million, Railways net work expansion to neighboring countries with an estimated investment of $1.780 billion and up-gradation of ports and shipping as well as Pakistan National Shipping Corporation with an investment of $355 million, the official added.

The details of the plan available with Daily Times are

Roads: The plans seek to invest $125 million in two years on Lawari Rail Tunnel. To link Gawadar with China and Afghanistan, the investment required is estimated at $594 million for the next five years. Similarly, up gradation of Kara Kurrum Highway from Mansehra to Sazin some 258 kilometers has been estimated with an investment of $256 million in next 7 years.

Road sector plans seeks an investment of $212 million in first year, $148 million in second year, $143 million in third year, $225 million in fourth year, $216 million in fifth, $16 million in sixth and $15 million in seventh year.

Railways: This plan seeks up gradation of Quetta-Koh-I-Taftan section to link rail net worth with Iran with an estimated cost of 438 million in next four years. A new rail link for connecting Gawadar Port with Mastung and Quetta in 9 years time frame has been finalized with an estimated cost of $1.342 billion.

Ports and Shipping: This plan seeks to support for private sector to make investment in shipping sector with $100 million, developing capacity for capital and maintenance dredging (upgrading port handling capacity) with estimated cost of $50 million and $50 million for Pakistan National Shipping Corporation. This plan also seeks to invest $155 million in mineral development.

Reducing the cost of doing business: Improvement and modernisation of the transport system is important to Pakistans economy and its competitiveness. Through infrastructure improvements, including transport, the country aims to greatly reduce the cost of doing business. Transport contributes about 10 percent of GDP. Road transport accounts for 90 percent of national passenger traffic and 95 percent of freight traffic.

Pakistan has about 5.0 million vehicles on the roads, growing at about 8 percent annually. This includes about 250,000 commercial vehicles. The road transport industry is deregulated and predominantly in the private sector. Pakistans road traffic has grown at an average annual rate of 14.1percent during the twenty-year period between 1985 and 2005 (from 70,000 vehicle trips/day in 1985 to 277,000 vehicle trips/day in 2005). Pakistans inland freight and passenger traffic has grown at an average annual rate of 10.6 percent and 4.4 percent respectively during the ten-year period between 1991 and 2001. However, Pakistan Railways freight traffic has declined (by 48 percent from 11.8 million tons in 1985 to 6.1 million tons in 2005) and passenger traffic stagnated during this period. The countrys truck fleet mostly comprises obsolete, underpowered, and high emission vehicles. Often trucks are overloaded. Their speeds are consequently slow, ranging between 20 to 25 kph compared to 80-90 kph in Europe, and journeys take three times longer than in Europe.

Pakistan has a total road network of 260,000 km of which about 60 percent is paved. The road density is 0.32 Km/Sq. Km. This network has grown at about 4.2 percent annually over the past decade. The National Highway Authority (NHA) under the Ministry of Communications (MOC) is responsible for approximately 11,500 km National Highway and Motorway system (4 percent of the total) which carries 75 to 80 percent of Pakistans total commercial inter-city traffic.

The National Highway Authority (NHA) needs to spend about Rs.5.0 billion annually to simply conserve the network in its present condition. Over the past decade, NHAs maintenance spending averaged less than 6 percent of total expenditures and covered less than 25 percent of stable network needs. NHA has depended almost exclusively on transfers from the governments recurrent budget to finance its road maintenance expenditures. This has not worked, since these transfers have been inadequate.

Two major ports, Port Karachi and Port Qasim, handle 95 percent of all international trade, and 14 dry ports cater to high value external trade. A few oil pipelines  about 2,100 km in length  have a yearly pumping capacity of 6.0 million tons. Container dwell times  11 days on average  are four times those in developed countries, and three times the average in East Asia. Of this, customs clearance alone takes 4-5 days as compared to 1.25 hours in Singapore. Port entry costs are 5-9 times more than some others in the region  vessel call charges in Pakistan are $30,000, in Jebel Ali they are $6,700, and in Salalah, Oman, they are $3,900. In addition, the ports limited draught  at 9-12 meters  keeps the latest and most efficient ships from calling. Redundant dock labor costs trade $15-20/TEU.

Desired end-state: The desired end-state calls for rapidly reducing transport times and improving the sectors quality and efficiency. This applies to rail, road and the ports.

In the rail sub sector, governments priority is to improve the quality of freight services, rapidly improving delivery times, reliability and tracking information. Presently, PR takes 21-28 days to deliver upcountry at a distance of 1800 km, which is 4 to 7 times slower than in China and the US. Freight rates in Pakistan, at 1-2 cents/ton-km, offer no real advantage over road transport which costs the same. In contrast, China rail is 2-3 times cheaper than road. As a result, the railways have a very low and stagnant market share, carrying less than 5 percent of freight and 10 percent of passenger traffic.


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## AgNoStiC MuSliM

*ADB and IDB to finance Diamer-Bhasha dam project *​
ZAFAR BHUTTA
ISLAMABAD (April 30 2009): The Asian Development Bank (ADB) and Islamic Development Bank (IDB) have agreed to finance Diamer-Bhasha dam project, and the Planning Commission has asked the Economic Affairs Division (EAD) to formally request assistance from them.

Sources said that the EAD has been informed that financing to the tune of $1 billion per annum is required for the construction of the dam, and the government expects to generate this amount from these institutions. The work on the project will start next year, which was initially scheduled to commence in the current year.

A meeting was held in the Planning Commission last Thursday, which was attended by officials of Water and Power Ministry and EAD, sources said, and added that ADB and IDB had shown keen interest to finance the project.

After the meeting, EAD has been asked to place a formal request before these institutions. The meeting noted that the design of the dam has been changed in line with seismic data and that resulted in cost escalation. IDB and ADB are taking interest in financing the dam due to emerging needs of energy in Pakistan, and are eyeing expected high returns from the dam.

The Central Development Working Party (CDWP) of Planning Commission will consider the project of Bhasha dam construction in its meeting to be held on Thursday, April 30. According to a feasibility report submitted to Planning Commission, the cost of the dam has increased by $4 billion--from $8.5 billion to $12.5 billion--due to depreciation in rupee. In the feasibility report, the current cost of dam has been valued at Rs 80 per dollar and if the rupee parity against dollar is 60 rupees, the cost of the dam would stand at $8.5 billion worked out by German company, Lehymer.

Sources said that CDWP would consider two other projects related to Bhasha dam which include construction of Bhasha dam costing $12.5 billion and the other project is "Diamer Bhasha dam project-construction bypass on existing Karakoram Highway, costing over Rs 3 billion.

According to amended resettlement plan by Water and Power Development Authority (Wapda), 26,000 families will be affected during the construction of Diamer Bhasha dam. Wapda in its amended plan has proposed to resettle the affected families in the area of Chilas. The relocation plan has been strongly opposed by the local population and they have approached the chief secretary Northern Areas for intervention in this regard. The population of Chilas is of the view that the resettlement of 26,000 families in their area will turn them into minority.

According to original resettlement plan by German Company, it was proposed to give 5 kanals to each affected family. It was also proposed to give irrigated land to the affected population that loses irrigated land and also pay 15 percent additional cost according to the value of the land. Sources said that Wapda had amended the said resettlement plan in which it had removed the proposed 15 percent additional payment to the affected family losing the irrigated land.

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## AgNoStiC MuSliM

*150 MW power project agreement signed in Seoul​*150 MW power project agreement signed in Seoul
ISLAMABAD (updated on: April 30, 2009, 19:20 PST): A signing ceremony for Patrind hydro power- Independent Power Producer (IPP) project of 150 MW capacity was held in Seoul on Thursday.

Tariq Iqbal Puri, Secretary, Ministry of Investment attended the ceremony where the consortium of K-Water, Sambu Construction and Daewoo E&C signed the agreement, says a fax message received here from Seoul.

The three renowned Korean companies will have 49% share in the $331 million project Essa Abdullah Al-Ghurayr. Vice Chairman of Al-Ghurayr Group also attended the ceremony.

Patrind is a run-of-the-river hydel project, which will be catering to the energy needs of one million people of the Muzaffarabad area.

Speaking on the occasion, Tariq Puri highlighted the enormous investment opportunities available in Pakistan, especially in the infrastructure and energy sectors.

He informed about the successes of 27 renowned Korean companies in $2 billion investment projects over the last two years in Pakistan.

He invited greater Korean interest in the upcoming projects worth around $ 50 billion, which are in the offing especially in the wake of deep commitment shown by the Friends of Democratic Pakistan in the recent meeting in Japan.

Earlier, Secretary Ministry of Investment held a meeting with Won, In-hee, Vice-Chairman of the International Contractors Association of Korea (ICAK) to explain the opportunities available for Korean construction and energy companies in Pakistan.

He said that the increasing Korean interest could lead to the setting up of a Special Economic Zone dedicated especially for Korean entrepreneurs. He invited the delegation of ICAK members to visit Pakistan to benefit from the construction opportunities.

The Vice-Chairman showed keen interest in Pakistani projects. The Korean delegation of ICAK would soon be planning to visit Pakistan to have a first hand knowledge of the projects in the construction and energy sectors.

After the signing ceremony, a round table conference with strategic partners was also chaired by the Secretary, Ministry of Investment.

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## AgNoStiC MuSliM

*CDWP likely to approve projects worth Rs59.6bn
​*
By Dawn correspondent
Wednesday, 29 Apr, 2009 | 11:34 PM PST |


ISLAMABAD: The Central Development Working Party is meeting on Thursday to recommend and approve 51 projects worth Rs59.6 billion, including the increase in the cost of the Diamer Bhasha dam by $4 billion.

Sources in the Planning Commission told Dawn that the estimated cost of the Diamer Bhasha has increased by almost 50 per cent from $8.5 billion to $12.5 billion after the re-designing of the project and increase in the exchange rates.

The redesigning of the Bhasha dam has been made by the ministry of water and power keeping in view its location, right on the earthquake danger zone.

The project resubmitted by the water and power ministry said that structure of the dam has earlier been designed right on the spot where experts had identified as junction of two seismic plates.

The other key reason for increase in the cost of the project was depreciation of rupee against dollar.

The CDWP would be chaired by the deputy chairman of planning commission Sardar Asif Ahmed Ali and the meeting is scheduled to consider 12 projects in the water sector. These include:

&#8226; Rs2.47 billion Sukkur barrage rehabilitation and improvement project.

&#8226; Sabakzai Dam project (second revised) worth Rs2.05 billion, research studies on drainage, land reclamation, water, management and use of drainage water, Rs426.90 million.

&#8226; Extension of stone apron pitching along KK Bund in Begari Sindh Feeder Circle amounting to Rs2.62 billion.

&#8226; Chashma Right Bank Irrigation project stage-III remedial measures in NWFP portion, Rs563.49 million.

&#8226; Construction of additional VR bridges on minors in Chashma Right Bank Canal Division, Taunsa Sharif Rs72.209 million.

&#8226; Construction of spur along Right Bank of River Indus District DI Khan (NWFP) sub work construction of spur at the cost of Rs198.75 million and construction of office building for the Indus River System Authority Rs68.863 million.

&#8226; Acquiring consultancy services for preparation of detailed design of 75 small dams.

&#8226; Providing protective measures of Mohammad Shahwala Flood Bund Bursla Branch against erosion by river Ravi Rs50.392 million.

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## AgNoStiC MuSliM

Related to the above report, the Planning Commission did meet and approve the projects mentioned:

* Planning commission okays 98 projects*​
By Dawn Reporter
Thursday, 30 Apr, 2009 | 09:42 PM PST |

ISLAMABAD: Planning Commission has on Thursday approved 98 projects worth Rs146.2 billion, with maximum allocations of 51 per cent of the total going for the for the transport and communication sector.

The Deputy Chairman of the Planning commission, Sardar Asif Ahmed Ali, detailed the media over the decisions made in the Central Development Working Party (CDWP) meeting and said that serious move has been made towards development of Thar coal in the forthcoming budget.

A pilot project has been approved for extracting combustible gas from Thar coal, Sardar Asif Ahmed Ali said adding that the project would be launched by Pakistani firm.

He said that the physical location of 24.6 per cent of all the projects would be in Punjab.

There are 22 projects worth Rs36.1 billion in Punjab followed by seven projects worth Rs23.8 billion in the NWFP, Sardar Asif Ahmed Ali said adding that Sindh has 13 projects costing Rs16.9 billion.

Balochistan would have 10 projects amounting to Rs4.3 billion, FATA would have four projects worth Rs1.6 billion, Northern Areas three projects costing Rs10.3 billion and 37 projects amounting to Rs41.2 billion were approved for the all Pakistan implementation.

Among the projects approved by the CDWP, 51 are for infrastructure development having the cost of Rs103.4.

The sub classification of infrastructure projects includes 20 projects for transport and communication worth Rs32.6 billion, 16 water-related projects are approved amounting to Rs40 billion, 10 projects are for the energy sector worth Rs29 billion and physical planning and housing has five projects amounting to Rs1.2 billion.

In the production sector industries and commerce has five projects worth Rs1.9 billion, while eight projects are for the agriculture sector worth Rs3.8 billion.

The meeting has approved 30 projects in the social sector worth Rs25.1 billion, these includes five projects for the higher education commission worth Rs3.3 billion.

Twelve projects in the health sector worth Rs11.7 billion have been approved.

He said that fourteen projects have upward revision mainly due to delays, those are the water related projects and the delays are mainly due to acquiring of land.

Replying to a question Sardar Ahmed Ali said that most of the projects are vetted thoroughly by the planning commission before approval including those suggested by the president and the prime minister.

They only suggest projects and we have not received any single project from the higher authorities with directives for approval, the deputy chairman planning commission said.

He told media here in the planning commission that out of these 23 projects worth Rs128 billion would be forwarded to the ECNEC and finally to the national Assembly for approval.

Only those projects approved by the national assembly would be finally included in the Public Sector Development Project of next fiscal year. Sardar Asif Ahmed Ali said.

Deputy Chairman planning commission said that the development budget for the current fiscal year has been curtailed to Rs219 billion from its approved allocations of Rs371 billion due to the economic condition faced by the country.

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## AgNoStiC MuSliM

*Steel policy to be finalised in 2 weeks
*​
Thursday, April 30, 2009
By Israr Khan

ISLAMABAD: Pakistan is all set to finalise a draft of long-term National Steel Policy in the next two weeks after consultation with provincial mining departments.

The policy aims to bridge supply-demand gap by achieving steel production of 15 million tonnes by 2020, The News has learnt. Pakistan has more than 1.42 billion tonnes of proven iron ore reserves. Of these, about 947 million tonnes were spread in Punjab (Sargodha and Kalabagh), North West Frontier Province (NWFP) (Nizampur and Hazara), Balochistan (Kalat and Chaghi), which contain 20 to 60 per cent iron. Kalabagh retains 450 million tonnes of iron ore reserves containing 30-35 per cent iron content.

The government is focusing on these sites and has planned to establish steel mills in these areas in collaboration with foreign and local investors, who may be provided incentives, well-placed official sources said.

Under this initiative, the private sector would be encouraged to invest in these areas. They would be provided special incentives like cut in duty or zero duty on imports, provision of land and other infrastructure facilities, sources said.

Setting up of mills at these specified areas would reduce the cost of production and help cater to steel requirements of the country, they said. The areas, where the government wants to produce steel, are Makerwal-Sho (Mianwali) having iron ore reserves of 706m tons, Chichali-Chughlan (Mianwali) 369m tons, DG Khan (56 million tons) and Chiniot 17m tons. These are located in Punjab. In Balochistan, Pachinkoh (Nokundi) has iron ore reserves of 45m tons, Chigendik (Nokundi) 5m tons, Chilghazi (Dalbandin) 2.47m tons and Dilband (Mastung, Kalat) 200m tons. Besides, in NWFP, Pezu (DI Khan-Bannu) bristles with reserves of 13 million tons and Damar Nisar (Chitral) three million tons.

Zaigham Adil Rizvi, Director (Projects) Tuwairqi Steel Mills Ltd (TSML), told The News: It is a matter of our survival to use local iron ore, as import from Brazil, Australia and others was costly this year. TSML will need about two million tonnes of iron per annum.

Under-construction TSML plant located at Bin Qasim Karachi is Pakistans first private sector integrated steel manufacturing project and Al Tuwairqi Holding has so far invested about $300m. Rizvi said that the group was aggressively planning to develop iron ore sites in Balochistan in order to reduce dependence on imports.

Experts believe that developing and using local iron ore for steel production could keep the sector protected of international price shocks, fear of reduced supplies, high sea freight, carrying costs and logistic problems. During fiscal year 2007-08, Pakistans annual steel requirement was about five million tons while domestically it produced 3.75 million tons. The reaming gap was catered through imports for which the national exchequer pay million of dollars.

-----------------------------

This would be a tremendous boost, if the government is able to follow through on it. Something to keep track of it to see how it pans out.

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## Neo

*Pakistan to buy 75 Chinese locomotives ​*
KARACHI (May 04 2009): A six-member high power delegation is leaving for Beijing to sign a $89 million loan deal with Exem Bank of China. The loan will be used for the purchase of 75 locomotive diesel engines from Dong Fong Electric Company.

Led by Asad Saeed, General Manager Railways, Services and Manufacturing, the delegation will consist of three senior officials of the Railways and three representatives of the Ministries of Finance and Economic Affairs.

Official sources told APP that delivery of engines would start 11 months after the signing of agreement and complete within 2 years. It may be mentioned that earlier, Pakistan had bought 60 engines from China and those were found efficient in performance.


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## Neo

*PQA container terminal project to be completed by 2010​*
ISLAMABAD: A number of multi-million dollar projects including the second container terminal at Port Qasim Authority (PQA) will be completed at an estimated cost of $250 million next year.

The project is being completed with the help of Dubai Port World, said the sources of the Ministry for Ports and Shipping.

This project was launched by the government as part the modernisation of ports of the country, the sources said.

A project for coal and clinker/Cement Terminal is also in progress and would be completed in 2011 at a cost of $175 million. The capacity of the terminal would be 8 million tonnes per annum after the completion of the project.

Giving details about other projects undertaken and those being launched for the modernisation of PQA and Karachi Port Trust (KPT), the sources said that another major project of Capital Dredging is also under process at an estimated cost of $150 million and scheduled to be completed in 2011. The project of Liquid Cargo Terminal has already been completed at a cost of $15 million having capacity of 4 million tonnes per annum.

Responding to a question about steps being taken by the ministry to modernise PQA and KPT, the sources said that modalities have been finalised to appoint a consultant to study and prepare Port Master Plan for upgradation of both the ports, a major target set under the National Trade Corridor Improvement Programme (NTCIP) to prepare comprehensive plans to modernise the ports to international standards.

Container Scanners at Karachi International Containers Terminal (KICT), Pakistan International Containers Terminal (PICT) and QICT have been installed under the Pakistan Customs requirement for Non-Intrusive Inspection (NII) regime. Dedicated and modern terminals, namely, KICT and PICK have been established at Karachi Port Trust (KPT). These terminals have full automated and modern facilities like container gantry cranes which are used on the ports of developed countries.

All the three phases of the Karachi International Container Terminal (KICT) have already been completed with a cost of $65 million even these are operational as inaugurated in November last year.

In order to handle post Panatnaz Container Ships and to promote trans-shipment, 18 metres deep draught three berths under Pakistan Deep Water Container Port (PDWCP) project is scheduled to be completed in 2012 by Hutchinson Port Holding on BOT basis, Dredging and Reclamation Works awarded to M/s CWE, China. app

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## AgNoStiC MuSliM

*3000-MW power to be added in system by Dec 2009: PEPCO​*
Updated at: 1915 PST, Thursday, May 07, 2009 
ISLAMABAD: Managing Director PEPCO Tahir Basharat Cheema said that 3,000 MW electricity will be added into the system by the December 2009, which includes IPPs and rental projects being processed by PPIB in the private sector as well as the projects in the public sector by PEPCO.

While talking to Geo news, he said that power generation in the country reached at 12,242 MW which is parallel to the electricity demand of 12,242 MW, and there is no power shortfall in the country as electricity demand and supply gap is at is at equal level.

He said currently, there is no load shedding from last few days and due to government's sincere efforts power situation is improving as in last year the shortfall on same day was 3,966 MW.

He said the government is committed to achieving its targets for ending loadshedding by the end of the year, and the need for planning to meet the growth of electricity demand over the next five years.

He said a deficit of only 500 MW was being faced because power supply had improved after water releases from Terbela and Mangla to the provinces for irrigation.

He claimed that there was no loadshedding in major cities and in rural areas power cuts ranged between three and four hours. He said the situation had improved over last year, but shortages persisted and power outages could increase in July and August.

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## Neo

*Better infrastructure soon to increase volume of cross-LoC trade​*
** Official says vehicles carrying goods to report at TFCs a day in advance to facilitate custodian authorities to unload, reload cargo​*
By Iftikhar Gilani

NEW DELHI: A high-level meeting in Srinagar reviewed trade across the Line of Control (LoC) on Wednesday and decided a host of measures to facilitate the volume of trade.

Giving details of the meeting, an official spokesman said the vehicles carrying goods to either Rawlakot or Muzaffarabad would now have to report at both the Trade Facilitation Centres (TFCs) a day in advance by 11:30am to facilitate custodian authorities to unload and reload cargo before the time fixed for departure.

Keeping in view the handling capacity at TFC Salamabad, it was also discussed that 50 truckloads a day would be allowed at the trading centre for further departure to the other side and the timing at Kaman Post and Chakan-da-Bagh would be extended from 9am to 1pm instead of the present timing of 9am to 11am. The drivers have also been asked to be present at the TFC one day in advance and the credentials of these drivers would be forwarded to the security agencies for verification.

Indian-held Kashmir Chief Secretary SL Kapur, who chaired the meeting, said a sum of Rs 20 million had been released to develop infrastructure at the TFCs at Salamabad in Baramulla district, and at Chakkan-da-Bagh in Poonch district.

In absence of banking facilities, traders from both sides have so far relied on barter system. The meeting decided to change the system to introduce exchange of currency, which is convenient for the traders.
The meeting was informed that a banking system, for which the Jammu and Kashmir Bank had offered its services, could be opted for the purpose. The absence of telecommunication is also a major hindrance in trade between the Kashmirs. The official spokesman said the meeting decided to overcome the barrier by consulting requisite agencies. The meeting also decided that items covered under standing operating procedures should only be those produced/manufactured on either side of LoC.

Some officials had complained that certain items imported from the other side were being traded in different states of India without charging any duties on them.


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## Neo

*'Punjab giving priority to upgradation of infrastructure'​* 
LAHORE (May 19 2009): Senior Political Assistant to Chief Minister Mohammad Pervez Malik has said that infrastructure upgradation is one the priorities of Punjab government as good infrastructure is necessary to boost the economic and trade activities. Pervez Malik was speaking at a dinner hosted in his honour by the All Pakistan Anjuman-e-Tajran.

He said the spirit shown by the business community for the help of the affectees of Malakand Division has no match but these affectees need more help so the businessmen should contribute maximum in the relief fund of Punjab Chief Minister.

He said Punjab government is putting in all its energies to upgrade the road network as it ensures the prompt transportation of goods and plays important role to boost the economic activities. He said that credit of establishing best road network in the province goes to Chief Minister Punjab Mian Mohammad Shahbaz Sharif, who had given extraordinary attention towards it.

Furthermore, Mohammad Pervez Malik said business community has continued its golden traditions and played an appreciable role once again during difficult time. He said help extended by the businessmen provided much relief to the refugees but a lot of work has to do. He urged upon the business community to extend maximum donations and make stronger the hands of Chief Minister Punjab who was keenly interested to provide maximum to affectees.

Speaking on the occasion, President Anjuman-e-Tajran Auto Parts Mian Waqar Ahmad said that business community hails the ardour of Mian Mohammad Shahbaz Sharif and assures best co-operation to the Punjab government for this noble cause. He said business community was already active for the help of their affected brothers and sisters. He said industrialists and traders would collect maximum donations, as they were quite aware with their national obligations.

Mian Waqar Ahmad said Punjab government should give special attention towards the widening of roads as annually one-lac vehicles are being added in the existing near 15 lacs vehicles running on the roads of Lahore. He said Multan road should be constructed on priority basis as sad state of this important road has caused a number of accidents.

Meanwhile, all participants while criticising the massive load-shedding said that industry was bound to collapse if the situation remains the same so there was a need to ensure uninterrupted supply of the electricity to the industry.


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## Neo

*Project launched for lining 3 main canals of Sindh​*
LAHORE: WAPDA has launched a project for lining three main canals of Sindh province namely Rohri, Dadu and Rice in a bid to conserve water, save agricultural land from water logging and increase crop intensity as well as conveyance efficiency of the canals.

For conducting feasibility study and then after preparation of detailed engineering design, tender documents and PC-1 of the project, M/s Associated Consulting Engineers (ACE) has been selected through a pre-qualification process. The consultants will submit their report by the end of 2009.

By lining of Rohri, Dadu and Rice canals, approximately 2,800 cusecs of water can be saved to irrigate an additional area of 492,000 acres of land. Benefits from water saving have been estimated at about Rs 11 billion annually.

The project will benefit Sukkur, Khairpur, Nosheroferoze, Nawabshah, Matiari, Hyderabad, Tando Allah Yar, Tando Muhammad Khan, Sanghar, Badin, Larkana, Qambershahdadkot, Dadu and Jamshoro districts of Sindh province.

It is pertinent to mention that Rohri, Dadu and Rice canals were constructed in 1932. The three canals, with a total length of more than 421 miles, are considered to be the backbone of irrigation system in Sindh. With the passage of time, these canals have deteriorated due to lack of maintenance.


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## Neo

*WB to provide $50mn for Sindh irrigation projects ​*By Amin Ahmed 
Wednesday, 27 May, 2009

RAWALPINDI: The International Development Association (IDA) of the World Bank Group has agreed to provide additional financing of 50 million dollars for improving water resource management and enhancing agricultural productivity under the Sindh On-Farm Water Management Programme (SOFWMP), official sources disclosed on Wednesday.

The proposed additional financing will focus in the areas of three participating area water boards (AWBs) of Nara Canal, Left Bank Canals and Ghotki Feeder. The total cost of the project will be 61.7 million dollars which will also include government financing of 2.7 million dollars and nine million dollars by local farmer organizations.

Sources said that the new IDA financing expected to be approved next month, will help improve the efficiency, reliability and equity of irrigation water distribution at water-course levels; support agricultural productivity enhancement measures to complement and enhance the benefits of improved water management, and enhance long-term financial sustainability of the irrigation system by fostering self-sustaining farmer organizations  Watercourse Associations  at the watercourse levels. 

The original SOFWMP was approved and became effective in 2004 supporting the Sindh government in implementing five main components of the project. The total amount of credit provided was 61.14 million dollars. The project is currently rated as moderately satisfactory for both development objectives and implementation progress. 

The watercourse improvement works completed under the Sindh On-Farm Water Management Programme (SOFWMP) and the National Programme for Improvement of Watercourses (NPIW) have already demonstrated the effectiveness of the intervention, especially in improving water supply and enhancing equitability of water distribution. 

The project-related document says by 2010, all watercourses in the project area were expected to be improved under the ongoing NPIW. However, due to current Government budget crisis, and subsequent drastic cuts in funding, the implementation of NPIW has slowed down sharply during the fiscal year 2008-09. The inability of NPIW to complete the planned watercourse improvement works in the project area may prevent realizing the full benefits of Banks two ongoing projects in Sindh. 

Providing additional financing to carry out the planned watercourse works in the project area would allow maximizing the overall development impacts of Bank-financed projects. Moreover, additional resources provided by the World Bank for watercourse improvement in the project area would give the Government the opportunity to reallocate some of previously earmarked funds to watercourse improvement to other equally important areas of NPIW in the province, thereby reducing fiscal strains on the Government programme.

Preliminary impact assessment and observations from field visits suggest that the improved watercourses under the project have made positive impacts in terms of enhanced and more equitable water supply and increased income by farmers, hence increasing the watercourse improvement activities would augment the positive development impacts of the project, says the report.

Both federal and provincial governments are fully committed to watercourse improvement interventions. In the wake of current fiscal crisis, the Federal Government has re-prioritized and streamlined its portfolio of ongoing and new projects and discontinued many programmes, which are considered to be of lower priority. 

However, NPIW is still on Governments list of high priority programmes and the Government is committed to complete it. During the past five years, the Government has accumulated considerable experience in implementing watercourse improvement works and has established effective and well-tested implementation mechanisms for the programme. 

The entire institutional set-up and technical infrastructure of NPIW used for watercourse improvement works completed under the Project, are still in place and can be readily deployed for scaling-up activities. This will greatly facilitate the implementation process.

Under the component of watercourse improvement, around 2500 watercourses, comprising earthen improvements, lining, installation of concrete turnouts and culverts will be improved.For the enhancement of productivity, 11,000 hecates of farm land will be precisely leveld using laser-guided equipment in addition to development and dissemination of improved seeds, demonstration on tunnel farmling for high-value crops, training of farmers in improved water management and agricultural practices and new technology, and integrated pest management, and monitoring pesticide residue effects on crops.


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## white_pawn

Pakistan has experienced a high level of activity in its infrastructure sector in 2008. This has mostly been focused on the power sector and the road network. In addition, construction of housing has been a top priority. However, the global downturn is hitting Pakistan hard, and in BMI's 2009 Annual Infrastructure Report for Pakistan we are forecasting the construction industry to contract by 6.31% y-o-y in 2009.

The power sector has been the major focus in Pakistan's infrastructure sector in 2008. Years of underinvestment in electricity generating and distributing infrastructure came to a head in 2008, when there was not enough supply to meet demand, further exacerbated by lack of rainfall almost knocking out Pakistan's large hydropower sector. It is currently estimated that there is a 3,300MW shortfall in capacity at peak hours; as a result, load shedding has been a common practise.

In an attempt to combat the shortages, a US$30bn investment plan has been announced, which has seen the development of a number of projects. Construction started in 2008 on the 969MW Neelum-Jhelum power plant, which is being built by a consortium comprising Chinese Gezhouba Group Company and China Machinery Export Corporation. Construction of the Diamer Basha Dam, which will have a capacity of 4,500MW once completed, is expected to start in 2009.

Within the transport sector, the roads have benefitted from the majority of attention in 2008. This has been the result of the National Highways Authority's plans to invest US$5.36bn into the sector. The plans benefitted from a US$900mn multi-tranche loan from the Asian Development Bank. The main project being pursued is the National Trade Corridor, envisaged as a main thoroughfare connecting the north of the country to the ports in the south; it is estimated to cost US$6.58bn.

Construction of housing has been a major feature in 2008. Residential construction is being carried out under the prime minister's 'mega housing scheme' which involves the construction of one million low cost houses per year.

Pakistan's economy has been hit hard by the global economic downturn and BMI's is forecasting real GDP growth of 2.5% y-o-y in 2009, down from 6.8% in 2007. In November, the country received a US$7.6bn 23-month standby loan from the International Monetary Fund to 'support the country's economic stabilisation programme'. The move might help boost investor confidence in the short term; however, it may put off investors looking at long-term infrastructure investments. Consequently presenting a down side risk to our forecasts.

In BMI's 2009 Annual Pakistan infrastructure Report we are introducing our new project finance ratings.

The ratings provide a globally-comparative, numerically based assessment of the risks facing major infrastructure projects. Pakistan comes last in our Asia project finance ratings, with a score of 32.93 out of 100.

Report: Pakistan Infrastructure Report 2009 (BMI03618) from ReportBuyer.com

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## white_pawn

*Pakistan seeks $273m from Friends for Basha dam*​
ISLAMABAD: The country sought $273 million from the Friends of Democratic Pakistan (FoDP) for construction of multi-billion-dollar Diamer-Basha dam in the next fiscal year 2009-10, it is learnt. 

According to a financial summary tabled before the FoDP, a copy of which is exclusively available with The News, for establishing Gwadar linkages with China, Afghanistan and upgradation of Karakoram Highway (Mansehra to Sazin 258km), Pakistan has sought $594 million and $256 million respectively from the donors. 

For establishing a new railway link connecting Gwadar Port to Mastung/Quetta, Pakistan has sought $1.342 billion over a period of nine years. The government asked the donors to provide $30.388 billion for 24 development projects over a span of 5 to 11 years. The government plans to launch National Employment Programme and for that it sought $321 million from the donors. 

For Thar coal development, the government has sought $1.750 billion from the FoDP over the next five years. In first year, it requires $20 million in first year, $355 million in second year, $359 million in third year, $516 million in fourth year and $500 million in fifth year. 

For construction of Diamer Basha Dam in water sector, the government has asked the donors to provide $5 billion over the next 11 years out of which in first fiscal year, Pakistan requires $273m, second year $183 million, third year $349m, fourth year $663m, fifth year $663m, sixth year $741m, seventh year $767m, eighth year $555m, ninth year $302m, tenth year $252m and eleventh year $252m. 

The government has sought $2.3 billion funding for protection of irrigation infrastructure over the next 6 year period. In the first year, the protection of irrigation infrastructure requires $170 million, $280 million in second year, $510 million in third year, $495 million in fourth year, $495 million in fifth year and $350 million in sixth year. 

In order to construct 32 small dams in all over Pakistan, Islamabads authorities asked the donors to provide $1.434 billion in the next five year period out of which in first year, $134 million will be required, $300 million in second year, $300 million in third year, $300 million in fourth year and $400 million in fifth year. The sub total of Diamer Basha dam, protection of irrigation infrastructure and 32 small dams, would cost $8.734 billion out of which Pakistan required $577 million in the next financial year 2009-10. 

In the area of most neglected agriculture sector, the Gilani government has sought $2.880 billion over the next five year period from the donors in order to increase efficiency, productivity and value addition. For increasing post harvest efficiency, Pakistan requires $1.515 billion in the next five years out of which first year requirement will be standing at $424m, second year $455m, third year $485m, fourth year $75m and fifth year $76m. 

For another development project titled Productivity Enhancement, Islamabad has sought $390m from the FoDP over the next five years. The first year requirement will be $66m, second year $72m, third year $79m, fourth year $83m and fifth year $90m. The government also devised a development project for value addition and institutional development of the agriculture sector with estimated cost of $975m over five year period out of which the country required $173m assistance in first year, $200m in second year, $215m in third year, $187m in fourth year and $200m in fifth year. 

On development projects related to reducing cost of doing business, Pakistan sought $975m from FoDP forum over the period ranging from 2 to 7 years. For construction of Lawari Rail Tunnel road, Islamabad requires $125 million out of which $100 million will be required in first year and $25 million in the second year. 

To establish Gawadar linkages with China and Afghanistan, Pakistan requires $594m over the next five years out of which the first year requirements will be standing at $75m, second year $80m, third year $100m, fourth year $169m and fifth year $170m. 

For upgradation of Karakorum Highway road, Islamabad has sought $256m from the FoDP over the next seven year out of which the first year requirement would be $37m, second year $43m, third year $43m, fourth year $56m, fifth year $46m, sixth year 16m and seventh year $15m. 

For Railways, the upgradation of Quetta-Koh-i-taftan section, the government sought $438m over the next four years period out of which it required $100m in first year, $150m in second year, $100m in third year and $88m in fourth year. 

To establish new link connecting Gawadar Port with Mastung/Quetta, the total estimated cost stood at $1.342 billion out of which Pakistan required $150 million in first year, $175m in second year, $175m in third year, $175m in fourth year, $175m in fifth year, $100m in six year, $100m in seven year, $175m in eighth year and $117m in ninth year. 

For ports and shipping, the government devised a development project titled support for private sector investment in shipping and sought $75m for the next two years. 

For developing capacity for capital and maintenance dredging (upgrading port handling capacity), the government has sought $50m in the next two year. The government also sought $50m for Pakistan National Shipping Corporation in the next fiscal year 2009-10. For mineral development, the government asked the donors to provide $155m over the next three years. 

For poverty alleviation, empowerment and employment, the government asked the donors to provide $5.959 billion over the next five years. The access to health services required $1.102 billion in five years. The girls secondary school education require $1.858 billion, safety net for vulnerable $363m, skills development for livelihood $652m, National Employment Program $321m and Population Welfare Program $140m in the next five years. 

For meeting requirements of energy sector, Bunji Hydropower Plant required $6.095 billion. The funding requirement for Bunji Hydropower project will start from fourth year by seeking $480m in fourth year, $600m in fifth year, $840m in sixth year, $960m in seventh year, $960m in eighth year, $840m in ninth year, $720m in tenth year and $695m in eleventh year. 

For Guddu Thermal Power, the government sought $710m over the next four years. For institutions building, the government sought $1.150 billion out of which $230m would be required in each year over the next five years.

Pakistan seeks $273m from Friends for Basha dam

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## Neo

*Need for small dams in Sindh stressed​*
KARACHI (June 01 2009): The shortage of water in Sindh province is continually affecting agriculture sector which may cause increase in poverty ratio and more problems to masses and the only single option to address the issue is that construction of small dams to preserve rain water. This was stated by the Advisor to the Sindh Chief Minister, Sharmila Faruqui, in a statement issued here on Sunday.

She further said that a large number of people visiting Sindh Secretariat from interior Sindh usually complain of shortage of water.

'Most part of population of Sindh depends on agriculture sector and low water level in Indus river has caused financial difficulties to them,' she added. 'Although 1991 Water accord cannot be implemented in letter and spirit but blaming other provinces for shortage of water is not only solution to the phenomenon. I have discussed agriculture related experts who suggested only construction of small dams with immediate effect to bring the province out of water shortage crisis,' Faruqui said.

She maintained that as many as 40,000 acres of land have been distributed among poor Harri female peasants, so far, out of total earmarked 0.2 million acres for them. These farmer families need smooth supply of water to cultivate their land. Right Bank Canal and Left Bank Canal projects in the province were not cleared of faults and shortcomings.

However, constructing small dams in Keerthar Mountain Range and along flood water routes can support our fragile agriculture while it will also meet shortage of drinking water in areas, particularly Thatta, Badin and Mirpurkhas districts, she added.


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## Neo

*Chiniot dam project being launched​* 
LAHORE (June 01 2009): Senior Punjab Minister Raja Riaz presiding over a departmental meeting here on Sunday said that Chiniot Dam Project was being launched at cost of Rs23.30 billion in district Chiniot. He said the Dam would have the storage capacity of one-million-acre feet.

He said feasibility study of these areas had been conducted by the assistance of Wapda. He said private sector could contribute with the Punjab government in full filling the dearth of electricity and water in the country.


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## Neo

*Zardari advises to develop new model infrastructural projects ​* 
ISLAMABAD (June 03 2009): The President, Asif Ali Zardari has advised the government to consider developing a new model for undertaking big infrastructural projects by involving private sector banks through equity sharing. He made this observation on Tuesday during a briefing on the Public Sector Development projects for the year 2009-10. The President said that the new model should be tested on an experimental basis and if it is proved workable, it may be replicated.

The President said that due to pressure on equity with the government, the private sector might be induced for equity participation in the infrastructural projects. He said that by adopting this model, new avenues could be opened for undertaking new developmental project more aggressively.

Shaukat Tarin, Finance Advisor, Sardar Aseff Ahmed Ali, Deputy Chairman Planning Commission, Hina Rabanbi Khar, MOS for EAD, M Salman Faruqui, Secretary General, Salman Siddique, Secretary Finance, Ashraf M Hayat, Secretary Planning and Development attended the meeting.

It was decided to hold another meeting on the public sector development programme to review the status of all projects in different parts of the country. The next meeting, to be held soon, will be attended by the Prime Minister also.


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## Neo

* German firm to set up 13 underwater cradles at KSEW​* 
KARACHI (June 10 2009): Karachi Shipyard and Engineering Works (KSEW) is installing a state-of-the-art "Ship Lift and Transfer" system at its seawater front at the cost of Rs 3 billion. According to sources, KSEW had recently signed an agreement with a German firm for the development of at least 13 "Ship Lift and Transfer" stations at its PIDC channel.

Under the contract the German company would set up 13 underwater cradles at KSEW within next two years, they added. They said the federal government-sponsored project would be financed in different tranches through Infrastructure Project Development Facility (IPDF).

Work on the 13 new facilities, which are envisioned to revolutionise the underwater ship-repairing efficiency of KSEW, had been started last month and would be completed by 2011. The stipulated time for the commissioning of under development stations was May 2011, said the sources. At present KSEW has only two dry docks, ie No 1 and 2, having the capacity of handling ships of 26,000 DWT and 18,000 DWT respectively, they added. The two docks are 189 and 171 meters long and 27 and 24 meters wide.

About the existing "time-consuming" working procedure of two facilities, they said, seawater is first filled in the docks to float the repairable vessel in, and then pumped out to clear space for the repair work. However, under the new set up the fixable ships would be anchored directly at the underwater cradles, which would automatically lift and transfer them to the parking facilities for repair. And the whole process would last within few hours, they said.

According to a KSEW official once constructed the new stations would not only boost working capacity and efficiency of the shipyard, but also help the formerly crisis-hit organisation increase its profit and create employment opportunities. "After two years we would have 13 plus two (docks) Ship Lift and Transfer stations that would benefit us on multifaceted fronts, like the profit, efficiency, employments etc," he added.

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## AgNoStiC MuSliM

*Major projects put under Special Infrastructure*​
Wednesday, June 17, 2009
By Umer Bhatti

LAHORE

The Punjab government has created a new head of Special Infrastructure in the Annual Development Program (ADP) and put major infrastructure development projects including Lahore Ring Road Project, (LRR), Sialkot-Lahore Motorway (SLM) and Lahore Rapid Mass Transit System (LRMTS) projects into the head.

The projects are, technically, included in the infrastructure development head but the government has created a new head for it without mentioning its need in the budget documents. The LRR and SLM projects are the road infrastructure development projects. The government has reduced the allocation for the road development by 25.2 per cent in this fiscal year but allocated a hefty amount for these projects.

The government allocated a total of Rs 25.048 billion for the development of Special Infrastructure, out of which 11.834 billion rupees have been allocated for the on-going schemes and 13.214 billion rupees for the new schemes.

The special infrastructure sector comprises the mega projects catering for major urban (intra-city and inter-city) transit and transportation requirements.

The current yearís development program (2009-10) includes Lahore Ring Road (LRR), Sialkot-Lahore Motorway (SLM) and Lahore Rapid Mass Transit System (LRMTS) projects.

The ongoing projects of Lahore Ring Road (LRR) and Lahore Rapid Mass Transit System (LRMTS) have been given a hefty amount even in this budget (2009-10).

The total cost of the LRR and LRMTS is Rs 22.805 billion and Rs 1.952 billion respectively in the fiscal year of 2009-10.

The Sialkot-Lahore Motorway, a new project, will be started this year and a total of Rs 290 million have been allocated for its construction.

A total of 44 schemes are underway for the LRR out of which, 33 schemes are already underway while 11 schemes will be new.

Similarly, there are 4 ongoing schemes for LRMTS and 4 schemes will be new in this project.

On the other hand, 3 schemes will be started for the construction of Sialkot-Lahore Motorway which is a new project in this budget altogether.

The construction of LRR has been divided into four sections i.e. North Loop (civil works), North Loop (land acquisition), South Loop (civil works) and South Loop (land acquisition).

The major Ongoing Schemes of LRR, North Loop (civil works) which have been allocated the amount in the current budget are Establishment of PMU, Lahore Ring Road costing Rs 194miillion, Lahore Ring Road Construction of Interchange at Saggian Chowk costing Rs 793 million, Lahore Ring Road Construction of Road Portion from Barki Road Intersection to Ghazi Road Intersection costing Rs 1.120 billion, Lahore Ring Road Construction of Interchange at Airport Access Road costing 856 million, Lahore Ring Road Construction of Interchange at Harbanspura Canal Crossing costing 1.169 billion, Lahore Ring Road construction of Interchange at Ghazi Road costing 1.606 billion, and Lahore ring Road Construction of Interchange at Bedian Road costing Rs 1.529 billion.

There is only one new scheme in this North Loop (civil works) which is Construction of Additional Underpass/ Flyovers at the Left-Over Crossings in Lahore Ring Road project costing 372 million rupees.

There are total 13 Ongoing Schemes for North Loop (Land Acquisition) in the current budget costing Rs 1 million each.

The only new scheme under North Loop (Land Acquisition) is land Acquisition for Construction of Additional Underpass/ Flyovers at the Left-Over Crossings in Lahore Ring Road Project costing Rs 987 million.

Similarly, there is only one ongoing scheme for the South Loop (Civil Works) which is Feasibility Study, Selection of Route and Detailed Engineering of Lahore Ring Road (Southern Loop) costing Rs 2.7million.

Whereas, a total of six new schemes will be underway in the South Loop (Civil Works) costing Rs 1.997 billion.

On the other hand, there is only one ongoing Scheme under South Loop (Land Acquisition) costing Rs 1 million.

Whereas, a total of three new schemes will be underway under South Loop (Land Acquisition) Project costing Rs 8.999 billion.

The second mega project whose detailed feasibility had been finalized in December 2006, and which was given a share in the previous budget and in this budget as well, is Lahore rapid Mass Transit System (LRMTS).

This is a network of mass transit corridors comprising 4lines spread over 97km distance with 82 stations with Ferozepur Road as the top priority corridor- called ëGreen Lineí.

This Green Line has a length of 27km traverses from the south at Hamza town along Ferozepur Road to Fatima Jinnah Road, The Mall, Lower Mall, Ravi Road and after crossing the River Ravi, ends at its terminus in Shahadra. A total of 22 stations are located along the Green Line.

The LRMTS targets for the fiscal year 2009-10 are, removal of utilities services by LESCO, WASA, PTCL, NTC and SNGPL, Engagement of Transaction advisor for preparatory work of LRMTS, Engagements of the general consultants to oversee the project, and Tendering for the design- build LRMTS execution contract during year 2009.

Currently, there are four ongoing schemes under LRMTS Project costing Rs 1.856 billion.

On the other hand, a total of four new schemes will be started in LRMTS project in the fiscal year 2009-10, costing Rs 843 million.

The construction of Sialkot-Lahore Motorway will be a new venture in the current budget and a total of three new schemes have been devised for this purpose costing Rs 300 million.

This Motorway will link Sambrial Dryport near Sialkot with Lahore city east of Niazi Chowk Interchange on Lahore Ring Road. The Motorway might extend up to Kharian in the future in the wake of a bigger project.

Major projects put under Special Infrastructure

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## Neo

*Upgrading Quetta-Taftan track: Railways to seek $500 million ADB loan​* 
ISLAMABAD (July 01 2009): Pakistan Railways will seek $500 million from Asian Development Bank (ADB) to upgrade the Quetta-Taftan broad gauge track to international standard for launching the Economic Co-operation Organisation (ECO) container train for Islamabad-Tehran-Istanbul route.

Sources in the Railways Ministry told Business Recorder here on Tuesday that the feasibility study has been completed, according to which, total length of the track, from Quetta to Taftan, is 700 km, for which $500 million is required to make it capable for a train to ply at the speed of 145 km per hour.

The feasibility study will be submitted to the Planning Commission, they added. Iran and Turkey have a 'standard' gauge, but Pakistan has broad gauge, like India. The three member countries have taken a formal decision to launch container train from Islamabad on August 14, on trial basis, under the Transit Trade Treaty of 1959.

"However, in the first phase, these three countries will trade under the existing Transit Trade Treaty 1959 by December 2009, which would be revised from the next calendar year for 'ECO container train', and a subcommittee will be formed to propose amendments in the accord", sources added.

They said that a meeting would be held in July in Iran for financing arrangements in which Pakistan, Turkey, Asian Development Bank (ADB), Islamic Development Bank (IDB) and Bank of the Economic Co-operation Organisation will participate. Sources said that the launch of the Special Container Train service would give new dimension to trade between Pakistan, Iran and Turkey.

"The inter-state goods traffic has sufficient potential to make the venture a success, while extending rail service between the three countries would not only connect Islamabad, Tehran and Istanbul but would also strengthen inter-state trade development process," they added.

Sources expressed hope that the ECO, Islamic Development Bank and the governments of Iran and Turkey would assist in the development of Quetta-Taftan railway track, which would make the trip affordable, and reduce the transit time between the three countries.


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## Neo

*PIA to start international flights from Bahawalpur​*
BAHAWALPUR (July 01 2009): Pakistan International Airline (PIA) will start its international flights from Bahawalpur airport from Wednesday (tomorrow). According to District Manager, PIA, Bahawalpur Abdul Sattar Khan, first international flight will take off on Wednesday for Dubai from Bahawalpur airport.

He told that due to extension work at Multan airport, all international flights have been suspended and now, these flights will be operated from Bahawalpur airport.


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## Neo

*Ongoing projects: NHA to spend Rs 8,113 million during 2009-10​* 
ISLAMABAD (July 01 2009): National Highway Authority (NHA) has estimated spending of Rs 8,113 million during 2009-10 on the ongoing projects in the four provinces and Azad Jammu and Kashmir. It was revealed in a meeting, which was presided over by Federal Minister for Communications Dr Arbab Alamgir Khan.

NHA Chairman Chaudhry Altaf Ahmad and General Manager (Operations) Muhammad Sabir gave a detailed briefing to the Federal Minister, and told him that Rs 921 million would be spent on Punjab north projects; Rs 1,169 million on Punjab south projects; Rs 3,118 million on Sindh; and Rs 1,571 million on Balochistan.

Similarly, Rs 749 million will be spent on NWFP and Rs 585 million will be spent on Azad Jammu and Kashmir. Dr Arbab Alamgir Khan directed the NHA officials to complete the ongoing construction and maintenance projects as soon as possible. He instructed for the early completion of development projects in Balochistan in particular.

Addressing the meeting, the minister said that communications was the backbone of the country's economy, and wanted further up-gradation of linking it to our neighbouring countries to facilitate our trade, industry and tourism. The meeting was told that a total of 12,000-kilometre network of roads fell under the jurisdiction of National Highway Authority.

The officials said that the highway from Gwadar to Jewani was near completion and it would formally be inaugurated next month. They also said that our highways were of international standards and the Frontier Works Organisation (FWD) machines had been installed to check the standard of these highways, which would determine the standard of highways within minutes.

At the moment the Highway M-2 from Lahore to Islamabad is of the highest standard. State Minister for Communications Chaudhry Imtiaz Safdar Warraich, Communications Secretary Sharif Ahmad Khan, NHA Member, Operations, Pir Muhammad Akbar Rashdi, and Finance Member Zafar Iqbal Gondal and General Managers of all the regions participated in the meeting.

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## Neo

*Hyderabad to use solar powered streetlights​*Saturday, July 04, 2009

Last week saw budgets being announced at the local level as District Hyderabad budget as well as taluka municipal administrations announced their respective budgets and these budgets have been approved without much debate and changes.

A budget of over Rs5 billion was announced for Hyderabad district with the major chunk of the budgetary allocations going towards improvement and initiating of health and education sector schemes.

District Nazim Hyderabad Kanwar Naveed Jameel in his budget speech also announced that Rs 5million have been allocated for solar energy system.

The system as mentioned in the budget aims at starting a pilot project of shifting streetlights to solar energy.

Though the amount is too little for the alternate energy system but as the Nazim himself says that this is an exemplary step announced by any district government. Such initiatives need appreciation and support from the relevant quarters working on alternate energy. The climate change and global warming has become a major issues on global level and seeks attention at local level too.

In his budget speech, the Nazim also highlighted the importance of the expo centre for the promotion of indigenous industries and agro based products of Hyderabad. An amount of Rs21 million has been allocated for the expo centre.

Besides positive developments, Nazim also demanded the provincial and federal government for releasing the held funds to continue the development pace at Hyderabad.

The president of Hyderabad Chamber of Commerce and Industry,(HCCI)Shafiq Ahmed Qureshi has lauded the District Nazim for presenting a peoples friendly budget and also appreciated the district government for keeping the budget tax free.

He said that District Nazim Kanwar Naveed Jameel also consulted with the HCCI for the budget making process and therefore Rs21 million have been earmarked for expo centre.

A seminar on Budget 2009-10 and its impacts on economy of Pakistan was organised at HCCI in collaboration with the Institute of Cost and Management Accounts of Pakistan(ICMAP), Hyderabad Tax Bar Association and Junior Chamber International.

In his address at the seminar, the HCCI president said that the expectations of the businessmen and industrialists were not fulfilled in the federal budget.

He said that federal and provincial government budgets have been announced but no relief has been provided for the business community and questioned that when power tariff and gas prices will be increased who will invest.

In his reaction to the rise in petroleum prices, HCCI president in a statement termed it as a mini budget and such a decision would raise the prices of essential commodities and cost of living would be increased.

He said that the announcement of increasing the POL prices would affect the industries badly and economic activities would come to an end and transportation cost would be increased which would increase the burden of the common men.


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## Neo

*Power stations for industrial estates​*
EDITORIAL (July 04 2009): The Sindh government's plan to set up power stations of 200, 100 and 50 megawatts in the industrial estates, in the province, to cater to their power requirements, is obviously a last-ditch attempt to contain the mounting production losses arising from prolonged power outages.

Sindh Minister for Commerce and Industry Rauf Siddiqui has given approval to the plan, and directed that a power-based estate strategy for industrialisation in the province should be prepared, and offers be invited from private sector parties to energise each unit in the Sindh industrial estates.

According to sources, quoted in a Recorder Report, the minister has issued instructions for reserving adequate space for setting up the power plants, in the PC-1 of new development schemes for industrial zones. Prolonged loadshedding in Karachi's five industrial estates has, meanwhile, caused huge production loss, and according to one estimate, production activity has fallen by about 50 percent, which should ring alarm bells.

According to one estimate, the KESC is grappling with a shortfall of around 700 megawatts against a total demand of 2,200 megawatts. The KESC, which operates as a separate, vertically integrated utility, is now predominantly in private hands, after the sale of 73 percent of the shares to a consortium of private investors in November 2005.

The utility has four thermal plants, which produce 1,760 megawatts of power, and a distribution network that contributes around 40 percent to the power losses sustained by the utility. As the operational constraints of KESC are adversely impacting the country's industrial heartland of Karachi, production losses in the mega city are making a highly deleterious impact on the country's industrial productivity.

There is a perception among some analysts that, with proper maintenance and operational efficiency, and also assuming fuel availability, the thermal plants should be able to produce an additional 50 percent or more energy from the existing units, as compared to what they generated in FY2005.

While the decision to set up power plants in the Sindh industrial estates, which will obviously be oil or gas-fired plants, is a move designed to ease the impact of the current power crunch on the province's industrial productivity, the plan also has a negative side to it. The plan is likely to make things worse, as the Gencos and Discos would then feel under relatively less pressure to improve the system itself.

KESC's poor performance, in violation of its contractual obligation to upgrade the system and invest $500 million in the utility by 2008, has already, not only hit productivity in Karachi's five industrial estates, it has also generated social unrest and anger in the mega city, as elsewhere in the country.

Secondly, the industrial establishments, after installation of the plants, may start charging higher rates for their products, on the plea that they have used the generating units in the manufacturing process. Thirdly, the overhead charges incurred on their limited ("retail") operations, as compared to the KESC's ("wholesale") operations, may push up the overall cost of production, thereby further eroding competitiveness of our exports in the international market.

These are only some of the negative points in the Sindh government's decision. However, on the positive side is the surety of an uninterrupted production process, fewer industrial layoffs, and increased production volumes, though all this will be achieved at the cost of perpetuating the discredited policy of institutional fragmentation of the energy sector.

We believe the Sindh government's decision takes the "fragmentary" approach a notch higher. Instead of tackling the power generation and supply problem in a holistic fashion in the province, by forcing the KESC and other power sector entities to improve their efficiency, the provincial government has chosen the path of least resistance. Some would even view it as a "win-win" situation for both the provincial government and the power producers.

A perception has somehow developed, over the decades, that we at first create a problem, and after it has assumed proportions of an emergency, opt for a solution that best suits our interests. Decades of "go-slow" in the implementation of water and power projects, for which we received huge funding from international financial institutions, has at long last made us drop like a ripe plum into eager hands.

The power sector crisis seems to be gradually assuming the contours of a terminal illness. There is a need for all stakeholders to evolve a consensual solution to the problem, and then act in unison. A World Bank report, in 2008, had warned that "without adequate irrigation resources, power, and transport infrastructure, the very sustainability of Pakistan as an independent nation may be at stake, as shortages could lead to increased social discontent and disharmony amongst the federation and the provinces."

The government must develop consensus among the provinces on water and hydropower issues, announce a policy decision and then ensure its implementation in letter and spirit. Meanwhile, let the federal government announce a definite timeframe for overcoming the worsening power crisis in the country.

The Sindh government's decision to allow the establishment of power in the industrial estates should at best be treated as a short-term solution. There is a need for the federal government to find, and implement, a durable and economical solution to the country's water and power sector problems.


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## Omar1984

Windmill projects of 9300 MW capacity finalized 

Updated at: 1845 PST, Saturday, July 04, 2009 







ISLAMABAD: Government has given a go ahead for windmill power generation plants having a total capacity of 9300 MW.

A meeting of NA Standing Committee for Planning held under the chairmanship of MNA Mir Hamdan Bugti was informed that the above windmill power projects have been finalized. For this work on Bhasha Dam will begin in this year.

Bugti said the development works undertaken in Dera Bugti are not in accordance with the needs of the people. 


Windmill projects of 9300 MW capacity finalized


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## ajpirzada

Neo said:


> *Ongoing projects: NHA to spend Rs 8,113 million during 2009-10​*
> ISLAMABAD (July 01 2009): National Highway Authority (NHA) has estimated spending of Rs 8,113 million during 2009-10 on the ongoing projects in the four provinces and Azad Jammu and Kashmir. It was revealed in a meeting, which was presided over by Federal Minister for Communications Dr Arbab Alamgir Khan.
> 
> NHA Chairman Chaudhry Altaf Ahmad and General Manager (Operations) Muhammad Sabir gave a detailed briefing to the Federal Minister, and told him that *Rs 921 million would be spent on Punjab north projects; Rs 1,169 million on Punjab south projects; Rs 3,118 million on Sindh; and Rs 1,571 million on Balochistan*.
> 
> Similarly, Rs 749 million will be spent on NWFP and Rs 585 million will be spent on Azad Jammu and Kashmir. Dr Arbab Alamgir Khan directed the NHA officials to complete the ongoing construction and maintenance projects as soon as possible. He instructed for the early completion of development projects in Balochistan in particular.
> 
> Addressing the meeting, the minister said that communications was the backbone of the country's economy, and wanted further up-gradation of linking it to our neighbouring countries to facilitate our trade, industry and tourism. The meeting was told that a total of 12,000-kilometre network of roads fell under the jurisdiction of National Highway Authority.
> 
> The officials said that the highway from Gwadar to Jewani was near completion and it would formally be inaugurated next month. They also said that our highways were of international standards and the Frontier Works Organisation (FWD) machines had been installed to check the standard of these highways, which would determine the standard of highways within minutes.
> 
> At the moment the Highway M-2 from Lahore to Islamabad is of the highest standard. State Minister for Communications Chaudhry Imtiaz Safdar Warraich, Communications Secretary Sharif Ahmad Khan, NHA Member, Operations, Pir Muhammad Akbar Rashdi, and Finance Member Zafar Iqbal Gondal and General Managers of all the regions participated in the meeting.



i read the same news somewhere else and it said 921bn for northern punjab. that really took my by surprise. 921mn looks more sensible.


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## Neo

*PQA expects $1.22bn foreign investment ​* 
Sunday, July 05, 2009

KARACHI: The Port Qasim Authority (PQA) expects that its development projects will attract foreign investment of $1.22 billion over five years.

In a press statement on Saturday, the PQA said development projects were being undertaken in the private sector on Build Operate Transfer (BOT) basis without costing any penny to the Authority.

Highlighting its projects, the PQA said a liquid cargo terminal, with handling capacity of four million tonnes per annum, had been developed through a joint venture between Felda, Westbury and Qasim (FWQ) at a cost of $15 million.

Soft operations commenced on March 30 while formal commissioning of the terminal is expected shortly. A second container terminal is being developed by DP World at a cost of $250 million with handling capacity of 1.175 million TEUs (twenty-feet equivalent units) per annum.

The terminal is likely to be completed by the end of 2011. Twenty per cent work has so far been completed.

To meet energy demand, an LNG floating terminal is being developed by Gas Port at a cost of $160 million with handling capacity of three million tonnes per annum. It is expected to be completed by the end of 2010.

A specialised grain and fertiliser terminal is being developed by Fauji Akbar Portia at a cost of $100 million with handling capacity of four million tonnes per annum. The terminal is expected to be completed by the end of 2011. Thirty per cent work has so far been completed.

A coal and clinker/cement terminal will be developed at a cost of $175 million with handling capacity of eight million tonnes per annum. The terminal is expected to be completed by the end of 2011 and an implementation agreement is being negotiated.

An LNG terminal is planned to be developed by Granada Group of Companies at a cost of $274 million with handling capacity of 3.5 million tonnes per annum. The terminal is expected to be completed by 2012. Technical and financial proposals are currently being evaluated.

To handle increased volume of petroleum imports, a second oil terminal is planned to be developed at a cost of $51.4 million with handling capacity of nine million tonnes per annum. The terminal is expected to be completed by 2012. Technical and financial proposals are currently being evaluated.

To handle increased volume of goods for Pakistan Steel Mills and to accommodate imports of Al-Tuwairqi Steel Mills, a second iron ore & coal berth is planned to be developed at a cost of $150 million with handling capacity of eight million tonnes per annum.

Outsourcing of the terminal is under active consideration. The development of the terminal will be linked with Pastel Expansion programme. PQA plans deepening of navigation channel for all weather 14 meter draught vessels at a cost of $150 million on Design, construct and finance basis. 

The project has been approved by the CDWP on September 18, 2008. Approval of ECNEC is awaited. 

Besides capacity building projects, PQA is equally concerned for provision of infrastructure facilities in its industrial zones to gear up development of port based industrial and commercial projects. 

To facilitate the traffic flow PQA plans construction of a flyover and dual carriage way at a cost of more than Rs2 billion. PQA has also awarded contract for provision of infrastructure facilities & development works in Eastern Industrial Zone through frontier works organization and national logistics cell at a cost of Rs8.8 billion.


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## Neo

*Poor investment in infrastructure impedes growth​*
ISLAMABAD: Low investment and politically motivated projects for infrastructure development schemes are responsible for lower economic growth of the country, experts told Daily Times here on Saturday. 

Weak economic conditions, poor planning and mismanagement are biggest challenges for sustaining growth in Pakistan. 

Over the years successive governments failed to realise the impact of increased growth on existing infrastructure. Resultantly the economic growth of Pakistan has followed boom and bust path during its history. This unpredictable pattern of growth was still prevailing mainly due to myopic policies of planners in the country, they maintained. 

Development of new infrastructure has a more tragic tale. Political incentives have remained prime driver behind most of infrastructure projects. To absorb, support and sustain increase in growth needs massive supporting infrastructuresomething Pakistan failed to have in place despite the famous five years plans. 

Development of infrastructure was not sustained in energy, water, irrigation, engineering sectors. Although communication and IT infrastructure experienced steady growth during last five years but these two sectors could not meet the challenge of overall sustained growth as both have massive foreign input both finically and technically. 

The country is confronted with water shortage for its cultivated lands. Along with other politically affected regional hazards, lack of modern irrigation infrastructure is a major setback for sustained agricultural growth. 

Apart from political instability, terrorism, regional tensions and mismanagement there exists an even bigger fault line within planners about coming up with ideas on how to counter emerging economic challenges as a result of growing population, trade competition among many others. 

Investment in infrastructure development has proven to be a successful model for reviving economies in the world. Pakistan could not sustain its growth over the time due to lack of supporting infrastructure. There is a need to understand what impact a poor infrastructure has already made on economy and national growth and its sustainability before devising any strategy on how to harness infrastructure development. 

Ignoring energy and water infrastructure have affected foreign direct investment. Not only international but also local investors are also keeping their fingers crossed as situation regarding availability of basic facilities is getting worse. Energy shortfall has reached up to more than 3000MW and industrial cities like Karachi, Lahore and Faisalabad were among most affected 

Infrastructure development also improves local conditions for foreign investment into other areas like industry and trade. Millennium Development Goals (MDGs) have been accepted as a framework for measuring development progress in countries in the world. Role of infrastructure is imperative in achieving these goals set by UN, the experts maintained. The infrastructure development would allow the country to get closer to its MDGs set for 2015 in terms of water supplies, sanitation, health and education. 

Importance of infrastructure was imperative for a sustained growth in the country. There were challenges in the way but equal opportunities were also there. Pakistan could bring itself out of foreign financial leverages through using its ideal geographic location. Infrastructure was one weak link in this route of prosperity for people. Both government and private sectors would have to join hands in this effort. Government holds the key to formulate policies so that it could provide a level playing field to private sector to invest more in infrastructure development of the country, they concluded.


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## Neo

*Karachi, Lahore now have 8-digit phone numbers ​*
ISLAMABAD: Pakistan Telecommunication Authority (PTA) has devised a comprehensive numbering plan to accommodate growing telephone users especially in the major cities of the country. 

As part of the plan, the fixed line numbers of PTCL, NTC as well as Wireless Local Loop (WLL) numbers of Karachi and Lahore has successfully been changed from 7 digits to 8 digits, official press release revealed here on Tuesday. 

According to details, the digit 3 was added to all the existing seven-digit telephone numbers of Karachi and Lahore except the numbers starting from 9, while the digit 9 was added to all the existing numbers starting from 9. At present both old and new numbers can be dialed for a period of three months in parallel operation, however only new numbers would be dialable after three months. The PTA had been conducting successful tests and trials since last month to implement successful launch and to make sure consumers dont get effected due to the change. 

A parallel operation of old and new numbers would remain in action, from July 1 to Sep 30, 2009, that means subscribers would be able to dial old as well as new numbers. From October 1, old numbers cannot be dialed and announcements for the addition of one digit before any dialed number of Lahore and Karachi will start working for users. It may be mentioned that National Numbering Plan 2008 was prepared by the PTA with extensive research and inputs of technical experts. The said plan was circulated to the industry for consultation and after receiving comments from all stakeholders PTA finalised it. 

Moreover, 7 to 8 Digits Fixed Number Migration Plan would be implemented in a phased manner all over the country. In Phase-1, FLL and WLL operators in Karachi and Lahore would migrate from 7 digits to 8 digits dialling format.


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## Neo

* PIA waiting for govt nod for 27 new planes: MD ​* 
Saturday, July 11, 2009

MULTAN: Pakistan International Airlines (PIA) Managing Director Captain Muhammad Ijaz Haroon said on Friday that the national flag carrier was waiting for the governments approval to induct 27 new planes into its fleet in five years.

Talking to media persons here, he said the government was extending full support to the PIA and there was no political influence in recruitments and postings.

To a question, he said as per PIA law, new pilots had to perform their duty on contract basis for three years and the decision to regularise their services is taken on the basis of their performance.

To another question, he said he was also a pilot but no one including pilots should be given preferential treatment. He said that if pilots committed a mistake, they would have to face accountability.

Haroon said efforts were being made to get planes on lease but added that there existed some problems in its way. He said the market share of PIA had increased by two per cent in comparison to last year, but the PIA was still facing Rs30 billion deficit per year including Rs26 billion caused by increase in foreign exchange rates.

Our correspondent adds from Karachi: The International Society of Air Safety Investigators (ISASI) and the Royal Aeronautical Society (Pakistan Division) co-hosted a seminar on aviation safety on Friday at a hotel in Multan.

Sponsored by the PIA, it coincided with the third anniversary of PIA Fokker crash on July 10, 2006, as a mark of commemoration, said a PIA handout issued here.

PIA Managing Director Capt Aijaz Haroon said the Multan Fokker crash was a tragic and unfortunate incident, which would be remembered by the entire airline. He said that PIAs foremost priority is the safety of its passengers and special attention is being paid to safety standards at the airline. 

The PIA has successfully renewed its IATA Operational Safety Audit (IOSA) registration. He said the PIA would organise a safety seminar each year in Multan. A memorial would also be placed at the Multan airport that would be shortly built with the cooperation of the CAA. 

Papers were presented by the officials of PIA, CAA, Pakistan Army, Pakistan Air force, Airblue, Pakistan State Oil, Shaheen Air International, Singapore Accident Investigation Board and International Society of Air Safety Investigators (ISASI).


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## Neo

*EPA approves $1.58 billion KCR project study ​* 
KARACHI (July 16 2009): The Environmental Protection Agency (EPA) has approved the Environmental Impact Assessment Study (EIAS) for $1.58 billion Karachi Circular Railway (KCR) project. Moreover, the Karachi Urban Transport Corporation (KUTC) is also likely to complete the Resettlement Action Plan (RAP) for the rehabilitation of the affected persons by the mid of September 2009.

According to sources, the EIAS had been completed with the Special Assistance for Project Formation (SAPROF), etc, led by a group of Japan External Trade Organisation (Jetro), with a delay of at least five months. Beside the environmental studies, sources said that resettlement of thousands of families, widely spread along the railway line in the last few years, was the big issue for the concerned authority.

For that the process such as getting satellite images of the KCR track from Suparco, data collection from different sources regarding the actual figures of the encroachers and meeting with different groups of people who were living on the encroached lands, was also in progress, they added. They said that at least two Japanese experts of the resettlement process were also likely to visit Pakistan by the first week of next month. The Japanese group was also reviewing the resettlement process of the victims of Lyari Expressway and others in the city to peacefully handle the issue, they added.

The RAP study, a socio-economic survey, was also being prepared to collect demographic conditions of the project area, with guidelines of Japan International Co-operation Agency (Jica) and the World Bank. The KCR project being funded by Japan Bank of International Co-operation (JBIC) was also bound to follow the guidelines of the Japanese agency.

They further said that discussions were also going on with the Board of Revenue to get at least 300 acres of land, which was needed at over 700 points of the project. The PC-I based on the fresh study conducted by a survey team of Jica for the revival of the KCR was yet to be approved by the Central Development Working Party (CDWP).

The current study, conducted by a Japanese team from the ministry of economy, trade & industry, government of Japan, adds some new developments. Japan, as a first parameter, would dualise KCR's 30-km loop with modern signalling and telecommunication system.

At least two dedicated tracks along with the main line from City (Railway) Station to Drigh Road Station of 14.5 kms, which would later be linked to the airport with a distance of 6kms, at a cost of $179.464 million. They said Karachi Urban Transport Corporation (KUTC) would be the vehicle for the implementation of the project having on its Board the senior officials of Pakistan Railways, Government of Sindh and City District Government Karachi (CDGK).


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## Hyde

*Railways, French companies finalising equipment import terms today ​*
ISLAMABAD (July 24 2009): Pakistan Railways and France will finalise the import of rail equipment on Friday (today) as agreed in a meeting of the representatives of leading French companies GEISMAR and CORUS Rail with Federal Minister for Railway Ghulam Ahmad Bilour here on Thursday.

It was also agreed that the next meeting of the French delegation would be held on Friday (today) in Lahore with Chief Engineer Railways and the Executive Committee, which will finalise the import of rail equipment from France. The commercial Manager of CORUS Dominique Chiesura and Director General of GEISMAR, Danial Geismar briefed the Federal Minister and Secretary Railways about the modern equipment and machinery being manufactured by their companies especially for track laying, track maintenance and other rail related equipment.

Federal Minister reiterated, "we want to establish Pakistan Railways on reliable and strong footings for general masses by improving its tracks." He said that Pakistan Railway expects from France government to allocate some funds for its uplift as France in one of the main friends' donor countries of Pakistan.

The Secretary Railways Sami-ul-Haq Khilji also appreciated the French rail system and said that technical co-operation and business between the two countries in rail sector will help in improving its track, which automatically will enhance the speed of trains. It may be recalled that these rail companies are the part of French delegation led by Anne-Marie Idrac, Minister of State for External Trade, which is on an official visit to Pakistan nowadays.

---------- Post added at 02:51 PM ---------- Previous post was at 02:50 PM ----------

*First container train from Islamabad to Turkey on August 14​*
LAHORE (July 24 2009): Pakistan Railways is running first international container train from Islamabad to Istanbul, Turkey on August 14. General Manager, Pakistan Railways, Saeed Akhtar who recently visited Turkey in connection with finalising arrangements for running the train said Pakistan and Iran had agreed to tariff proposed by Turkey.

Talking to APP here on Thursday, he said matters pertaining to customs and technical issues had also been finalised by the three countries and the first container train would run as 'demonstrative one' He said the train being run under ECO, would comprise 20 containers (coaches) of 20 feet each which would take 15 days to reach its destination. He said it would run for 104 hours in Pakistan, 127 hours in Iran and 135 hours in Turkey and would provide a link to Europe and central Asian states.

He said initial response of business community was very good and hopefully enough cargo would be available for running train on weekly basis. He said, as Islamabad was not the trade centre of the country, train on regular basis would be run from Lahore or Faisalabad.

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## ajpirzada

we should start thinkin about runing our trains on electricity. all these diesel and other fuel based trains are really poor in quality.


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## Omar1984

*Railways share in transportation sector to rise to 15 percent 
​*
LAHORE, July 26,(APP): Pakistan Railways is implementing a comprehensive plan to increase its share in goods transportation sector from five percent to 15 percent during the next two years.Additional General Manager Traffic, Pakistan Railways Junaid Qureshi told APP here that presently 95 percent cargo hauling is being carried out by road sector while Railways share is only five percent. 

He said Railways&#8217; share in transportation sector kept on declining in the past as due attention was not given to its freight sector. 
However, he said, with the introduction of big and high speed freight coaches, Railways have already started regaining its share. 

He said about 1300 imported 8-wheel coaches have already been inducted which has lead to increasing speed of freight trains from 35km per hour to around 60 km per hour. 

He said another 530 more high speed coaches would be pressed into service which would help achieve the speed of 90 KM per hour. 

He said a phased programme is also being carried out for introducing 75 new locomotives for hauling freight trains. 

He said while locomotives of goods trains have tracking system, freight coaches would also be equipped with it which would enable traders to know exact location of their consignments any time during movement of trains. 

He said the plan for allowing private entrepreneurs to operate freight trains is also being pursued under which private sector would bring its rolling stock and use railways track and other facilities on access charges basis. 

He said 8 parties/companies have already pre qualified for it while pre bid conference would be held during next 10 days. 

About dry ports, he said while NLC&#8217;s and Packages dry ports are already operational, another one is under construction at Prem Nagar near here. Construction of a dry port at Aza Khela near Peshawar is also under consideration, told the AGM.

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## Omar1984

*&#8216;Punjab will launch bus service for tourists&#8217; ​*

Staff Report

LAHORE: Keeping in view the importance of Lahore as the cultural capital of South Asia, the Punjab government will be launching a bus service for tourists in the city very soon, Tourism and Food Minister Malik Nadeem Kamran said.

He was presiding over a meeting to review the final arrangements of the project in Lahore.

He said Lahore reflected a rich cultural heritage and splendour of different ages, which adds to the beauty of its culture. &#8220;International tourists should also experience our cultural heritage in a more befitting and organised manner,&#8221; he said, adding that the government had decided to launch the project for the same purpose.

Kamran said the buses would introduce tourists to historical and cultural heritage of the city. He said the project had been initially launched in Lahore and if the experiment proved successful, the number of buses would be increased. He said tourist bus service would be called &#8220;Aik Din Sadiyon Ka Safar&#8221;.

He said the Tourism Department had sent the summary to the chief minister requesting him to inaugurate the project as early as possible. He said Punjab has a number of historic sites and its centuries&#8217; old archeological buildings attract a large number of tourists. He said the Punjab government was taking these steps to attract further investment in the tourism sector.

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## Omar1984

*&#8216;Quetta-Zahedan train service to increase bilateral trade&#8217; ​*
LAHORE: A trial train container service between Quetta and Zahedan is being started from August 14, 2009 to help increase the volume of bilateral trade between Pakistan and Iran. Iranian Consul General, Saeed Kharazi stated while speaking at the Lahore Chamber of Commerce and Industry on Monday. LCCI President, Mian Muzaffar Ali, General Manager Railways, Saeed Akhtar, Convener LCCI Standing Committee on Transport Facilitation and National Trade, Mohammad Anwar also spoke on the occasion. The Iranian Consul General said that the container service would be made permanent on the completion of this test run. He said that present Iranian regime was making all possible efforts to improve trade relations with all its neighbours and the train container service would be a positive step towards the desired direction. The LCCI President said that the international container train from Pakistan to Turkey via Iran and Passenger Bus Service between Lahore and Mashhad would definitely result in an increment of socio-economic activities in the region. At present Lahore has only one Air link with Mashhad, our international trade with Iran and Turkey have been all through land routes of Taftan and Mirjaveh Borders as well as sea routes. The successful operation of international container train from Pakistan to Turkey will ultimately link Europe and CIS countries to this region via rail routes and will enhance our international trade as well, he added. staff report


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## Omar1984

*CNG buses pilot project gets going ​*


Staff Report

KARACHI: The CNG buses pilot project, worth Rs 250 million, was launched on Monday.

Sindh Governor Dr Ishratul Ibad Khan and City Nazim Mustafa Kamal inaugurated the project in Sarjani Town.

There would be 50 CNG buses covering two routes initially. Two different manufacturers, each providing 25 buses, have made these CNG buses locally. The CDGK has already paid the full cost for the buses. 

The purpose of putting CNG buses on the roads is to ensure that the citizens were provided with an urbanised transport system and in this regard, the CDGK has already started operating an e-ticketing facility, as these buses will not have conductors. The passengers will be able to buy travelling coupons from e-ticket booths established at different locations on the prescribed routes.

Talking to the media on the inauguration ceremony, the governor said that Kamal has proved that he is a true leader who has served the citizens with great fervour and spirit. Today, he has achieved one more of his goals by providing citizens with CNG buses.

In his address, Kamal appealed to President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani to help stop bureaucracy, at the federal and provincial levels, from creating impediments in the city&#8217;s development projects.

It is pertinent to mention that the federal government had announced a countrywide plan for putting CNG buses on the roads, with a total cost of Rs 2.5 billion for 8,000 buses (5,000 large CNG busses and 3,000 small CNG buses), out of which 800 were set aside for Karachi but initially only 500 were supposed to run in the city. However, the project could not start, following which the city nazim drew a plan for running CNG buses in Karachi under a self-reliance programme.

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## Omar1984

*Bara Dam to irrigate 41,729 acres, generate 5.8MW power ​*
By Ijaz Kakakhel

ISLAMABAD: To ensure irrigation of 41729 acres of land in FATA and to generate 5.8 MW much needed electricity, the government plans to construct &#8220;Bara Multipurpose Project Khyber Agency FATA&#8221;. 

The scheme would cost the government Rs 20.651 billion through Public Sector Development Programme (PSDP). The project was located in Khyber Agency FATA on Bara River. The propose dam axis was located about one km downstream of the confluence of Bara River with Mastura River and 3.07 km upstream of the diversion weir of Bara River Canals Scheme (BRCS). The reservoir of the propose dam extends both in Bara and Mastura valleys. 

The project is expected to meet the irrigation needs of 41729 acres of cultivable command area, assures releases in the river to meet the water supply needs of Peshawar Cantonment and industrial units dependent on the river water. It will also produce 5400 million gallon per year of treated water to meet the drinking water needs of adjoining areas of FATA and Peshawar. In addition, with the project development, flood damages along the downstream reaches of Bara River will be avoided. A powerhouse is proposed at the outlet having a capacity of 4.8 MW and another of 1 MW. 

The project envisages construction of an earth core fill dam, as being the most economical and technically viable option considering the site-specific conditions. The recommended site for dam construction is located just downstream of the confluence of Bara and Mastura rivers about 3.7 km upstream of the existing weir (locally known as Sapera Dam). The dead storage capacity of 22929 acre-ft is provided, which is sufficient for 35 year. 

According to the working paper obtained by Daily Times reveals that the about 50&#37; of the live storage would be lost in about 65 years. Overall life of the reservoir is envisaged to be about 100 years. The design life of the dam is more than 50 years. 

The working paper further reveals that the economic Internal Rate of Return (EIRR) is 19.08 percent, which exceeds 12 percent opportunity cost of capital in Pakistan presently being used by Planning and Development Division, Islamabad. With the completion of the project, the government would be able to develop 155 tons of fish as well as to control the flash flood. 

The government has earmarked an amount of Rs.200 million in the PSDP 2009-10. The Special Central Development Working Party (CDWP) on 17th of this month already approved the project and the ECNEC likely to approve in its meeting scheduled to meet in August 2009. 

The construction of Bara Dam is endorsed in the context of national Strategy to harness flood waters for irrigation and other purpose through construction of small dams and is one of the Prime Ministers Programme of Small/Medium dams in the country. Prime Minister has also desired the quick response on implementation of this project on fast track basis for completion of the project in stipulate time period. 

Water and Power Development Authority and Fata Development Authority are the sponsoring agency for the project and WAPDA is the executing agency.


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## Hyde

*'Pakistan and China to cooperate for modernisation of Railways'​*
BEIJING (July 29 2009): Pakistan and China have agreed to cooperate for modernisation of Pakistan Railways network, said Railways Minister Haji Ghulam Ahmed Bilour. Haji Bilour who is currently visiting China at the invitation of Chinese government while talking to APP said Tuesday that during his meeting with Chinese Railways Minister Liu Zhi Jun he exchanged views with him on modernisation, strengthening and converting existing Pakistan Railways tracks to meet the international standard.

He said that the Chinese has agreed and assured their readiness for co-operation for modernisation of Pakistan Railways. It has also been decided to constitute a consortium in this regard in which both Pakistan and China will be partners. He pointed out that China has nominated their experts to help assist Pakistani side for carrying out technical feasibility studies for co-operation and modernisation of railways projects.

The projects would be put on place under BOO (Build-Own-Operate) basis, he noted. Bilour said that Pakistan Railways wanted to strengthening and expansion of Torkham railway line to meet the international standard, Quetta-Chaman-Kandahar section, Quetta-Iran, and Quetta-Peshawar railway link via Zhob- D I Khan-Bakhar.

He pointed out that by doing so we would be able to help better facilitate passenger traffic and transportation of cargo from Gwadar port to various parts of the country as well as adjoining regional countries. Bilour said that by replacing the existing Karachi-Peshawar track to meet the international standard, Pakistan Railways would be able to facilitate people of the two provinces to have comfortable journey and swift transportation of cargo from Karachi port.

The Chinese sides during the meeting stressed the need for initiation of laying a railway network from Havalian to Khanjrab pass on priority. The railways minister said that Chinese side emphasised the need for early laying of Torkham-Jalalabad railway track as they wanted to connect this section with Afghanistan so that they could use the Pakistan Railways network for transporting their goods and equipment for development of copper mines and various other projects launched in Afghanistan. He said that Pakistan Railways has already acquired 1300 high-speed goods wagons and plans to obtain eight hundred more such wagons.


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## Hyde

*Ibad inaugurates 13-km road linking Super Highway with Sharea Faisal​*
KARACHI (July 29 2009): Sindh Governor, Dr Ishrat-ul-Ibad Khan on Tuesday announced that work on Mass Transit System will start soon and technical hitches in the way of the project have removed after directives from President Asif Ali Zardari and a headway will be made in the matter shortly.

He described the new road from Super Highway to Sharea Faisal a best gift for the people of the country which would greatly facilitate them and also extend full help in maintaining traffic flow after linked with Corridor-III. He was addressing a ceremony at Malir cantonment after inaugurating the 12.60 Kms long road from Super Highway to Sharea Faisal along with City Nazim Syed Mustafa Kamal.

Earlier the Governor and the City Nazim unveiled the plaque at the junction of Super highway Toll Plaza and Malir Cantt. Base Commander Malir Brigadier Nusrat Hayat, DCO Javed Hanif Khan, MNAs, MPAs, Town Nazims, EDOs, civil and military officials besides elected representatives and a large number of people were also present on the occasion.

Governor said this was one of those projects, which suffered stalemate because of various factors. However, at various stages, three former Corp Commanders, GCO Malir and other concerned officers played a key role in continuing the project and leading it to completion while the funding problem was solved by former President Pervez Musharraf who took special interest.

The Governor felicitated Nazim Mustafa Kamal and his team that Corridors I and II and other mega projects were completed under his leadership while Corridor-III was also in the final stage of completion. He said if old and present day Karachi is compared, one could see extraordinary work having been done here for which citizens of Karachi deserve felicitations along with City Government. He announced that all projects including Elevated Expressway and Mass Transit would also see completion.

Earlier addressing the ceremony City Nazim Mustafa Kamal said this project was completed with 100 percent federal government funding and has cost Rs 1.2 billion. He pointed out that this project was started before his becoming Nazim of Karachi. However, Governor Ishrat-ul-Ibad has remained a part of this project from the beginning and it reached completion because of his special efforts and people got a major facility.

He said that Malir Cantonment administration too deserve felicitation for this project which allowed the road to pass through their area and extended complete co-operation for its completion. He said after its completion, lacs of people of Shah Faisal Colony, Landhi, DHA, Korangi, Malir, KDA Scheme-33 and Gulshan-e-Iqbal will have a quality road to directly reach Super Highway instead of going to Sohrab Goth.


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## Hyde

*Chairman Railways announces measures to upgrade system ​*
LAHORE (August 02 2009): Chairman Pakistan Railways, Sami-ul-Haq Khilji said that the deficit of the Railways had swelled to Rs 52 billion, including 35 billion of overdrafts of the State Bank of Pakistan. The government, despite limited resources, had decided, with firm determination, to provide better facilities to passengers and a new train service would be initiated soon, with public-private partnership.

While talking to reporters on Saturday, at the Railway headquarter, Sami said that retired Railways employees would be provided houses at easy instalments, after retirement, so that they might spend a peaceful life. The Railways had completed a survey of more than 12 big cities for the construction of housing societies on the land of the Railways.

The Chairman Railways announced Rs 200,000 for the family of the deceased railway employee, Ghulam Rasool, who expired yesterday in hospital, because of the brutal torture of the police, during a protest against the termination of his colleagues' services. He also announced inducting his two brothers into the Railways.

He said that 100 Locomotives Engines had been added for Cargo Service, while 160 would be used for Passenger service, to reduce the shortage of locomotives and regularise the Passenger train service. He further said that 202 new coaches were being imported from China to provide satisfactory services to passengers and a contract had been finalised with a Chinese firm for it. The "Mass Transit Train System" would also be introduced in big cities across the country, as in Lahore , Islamabad, Faisalabad, Multan etc he maintained.

He said that the Minister Railway, its Chairman and other high officials would hold open court at the Railway Stations of prominent cities to redress the grievances of the employees and the passengers and he, himself, would start this by holding an open court at the Lahore Railway Station next week.

In reply to a question, he said that the signal system at more than 65 Railway junctions was being repaired, which would be helpful in regularising the departure and arrival of trains.

He said that the trade union had the right, under law, to protest for their demands. The Chairman Railways said that the legal demands of workers would be accepted and their problems would be solved to avoid, in future, such tragic incidents of the loss of lives, as that of Ghulam Rasool he added. Replying to a question regarding the police baton charge on workers, he said, that the Station House Officer ( SHO) had been suspended and the concerned Superintendent of Police had been transferred.


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## Hyde

*International Container Train to be inaugurated on August 14: Pakistan Railways starts booking consignments *​
LAHORE (August 05 2009): Pakistan Railways (PR) has started booking consignments for its international container train to be inaugurated on August 14, which would run from Islamabad to Turkey via Tehran. The train being run under Economic Co-operation Organisation (ECO) will consist of 20 containers with the capacity around 750 tons.

Chief Marketing Manager Freight, Pakistan Railways, Imtiaz Hussain Rizvi talking to APP here on Tuesday said, "We have contacts with the traders and hopefully freight for the train would be secured by August 10." However, he said, in case cargo is not obtained as per full capacity of the container train till August 10, booking would continue upto August 14.

He said, "We hope that traders from Lahore, Faisalabad and Islamabad would prefer to send their consignments by train as it would take 15 days to reach Turkey against ship which takes about a month." Regarding tariff, he said, for the first train, which is demonstrative one Pakistan Railways has accepted the same tariff, which is being charged in Turkey and Iran. "However, after running the first train, we would review it", he said.

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## Hyde

*China to assist Railways in five mega projects ​*
ISLAMABAD (August 05 2009): China has committed to assist Pakistan for carrying out five mega projects to boost Pakistan Railways (PR), which include laying of rail track to connect Central Asian States to increase regional trade. Federal Minister for Railways Haji Ghulam Ahmad Bilour informed this on Tuesday during a press conference after his weeklong official visit to China.

He said that Pakistan Railways will start work on five mega projects in collaboration with China this year adding that a Pak-China Consortium will be established before starting work on these mega projects. Ghulam Ahmad Bilour during his visit along with a six-member delegation held important meetings with senior Chinese officials as well as the Chinese minister for railways. During the visit, Bilour also visited various railway manufacturing installations.

Federal Minister said that Pakistan Railways will lay down dual track between Khunjrab-Islamabad, Quetta-Kandhar, Gwadar-Quetta, Karachi-Torkhum and Quetta-Iran to start cargo service in an effort to boost trade with neighbouring countries.

He said that railway track between Khunjrab and Islamabad would help in upgrading and strengthening the freight system of Pakistan Railways with Afghanistan. He further said that Pakistan Railways is making all out efforts to start the proposed Islamabad-Tehran-Istanbul international first freight train service from August 14.

Minister said that the proposed train service will be a pilot project of Economic Co-operation Organisation (ECO) in line with agreement signed by the three countries in March this year. The proposed service would go full steam once technical difficulties relating to laying different rail gauges in Pakistan and Iran are sorted out.

He explained that the freight train would initially be dedicated for the transportation of cargo containers and would afterwards include other goods and passenger services. He said that it will not only open a new era of socio-economic development and prosperity in this region, but also bring the people closer in every sphere of life.

Bilour said that the proposed train would not only add to economic uplift but also strengthen the friendship and co-operation among the three brotherly countries. He further added that the inter-state goods traffic has sufficient potential to make the venture a success. Federal Minister said that proposed container train from Islamabad to Istanbul via Tehran is a beginning to run passenger train services, enabling Pakistan to join the international club of Railways.

He said that Pakistan Railways would get a chance to strengthen and boost its freight system by launching this freight service. It would also be beneficial in terms of revenue generation and availability of employment opportunities at domestic level, he added.

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## Hyde

*Faisalabad-Multan Motorway: Gilani to perform ground-breaking on August 18 ​*
MULTAN (August 17 2009): Prime Minister Syed Yousaf Raza Gilani will perform the ground-breaking of Faisalabad-Multan Motorway (M-4) on August 18 (Tuesday). It is officially stated here on Sunday. National Highway Authority (NHA) spokesman has said that work on Faisalabad-Multan Motorway (M-4) will start soon after the inauguration and the project would be completed in three years.

With the completion of M-4 the people will have motorway facility from Peshawar up to Multan. He said that NHA was diligently working to implement the National Trade Corridor concept that envisaged a network of motorway and expressways all across Pakistan. He said that the government had released funds required for land acquisition on Khanewal-Lodharan Expressway (E-5).

The spokesman also said the revised PC-1 for Karachi Northern Bypass and recommended it for approval by CDWP and the ECNEC. The project would cost Rs 5.4 billion. The spokesman informed that under the Multan package, the government was paying special attention to development projects in southern part of Punjab province. He said that NHA had completed the design work for Head Mohammad Wala Bridge and work on the project was being done.

He said the project would bring numerous benefits to the people of Multan and other cities. He said the bridge would reduce the distance by 40-km between Khushab and Multan besides providing linkages with Mianwali, Rangpur. He said that efforts were being made to complete the projects in time and at the minimum possible cost.

He also apprised the meeting about various steps NHA had taken to improve the safety of the road users and to modernise the process of toll collection on national highways.

Distance from Faisalabad Motorway to other cities Chiniot: 47 KM, Toba Tek Singh, 77 Km, Hafizabad: 94 KM, Sargodha: 90 KM, Lahore: 143 KM, Wazirabad: 155 KM, Sialkot: 200 KM, Jehlum: 251 KM, Khanewal: 170 KM, Multan: 237 KM, Bahawalpur: 273 KM, D.I.Khan: 270 KM, New Mirpur: 295 KM, Islamabad: 372 KM, Muree: 420 KM, Abbotabad: 475 KM, Muzaffarabad: 496 Km, Kohat: 538 Km, Peshawar: 526 KM, Saidu: 601 KM, Chitral: 737 KM, Gilgit: 901 KM, Sukkur: 691 KM, Larkana:795 KM, Hyderabad: 1006 KM, Thatta: 1104 KM, Karachi: 1182 KM, Quetta: 1096 KM, Bela: 1363 KM and Turbat: 1777 KM

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## Hyde

*Ecnec likely to approve $1.58 billion KCR project ​​*​
KARACHI (August 18 2009): The Executive Committee of National Economic Council (Ecnec) is likely to approve the much delayed $1.58 billion Karachi Circular Railway (KCR) project in its meeting on Thursday. According to sources, the project has been included in the agenda of Ecnec's, final approval in its meeting scheduled for August 20 in Islamabad.

They said that on the part of government, it was final stage for approval of the project, after which, talks regarding the issuance of loans for the project would be started. The KCR project, which has gone through different studies of experts, both from Japan and domestic, has been facing delays by the concerned authorities since its closure in January 2000, sources said.

The slow paced development of the project, they said, had not only delayed the revival of KCR but it also increased the estimated cost of the project from $872.316 million to $1.58 billion during last few years. The last study of the project were regarding Environmental Impact Assessment (EIAS), which had recently been approved by the Environmental Protection Agency (EPA) and the Resettlement Action Plan (RAP) for the rehabilitation of the project's affected persons, they added.

The different studies of the project had also completed with guidelines of Japan International Co-operation Agency (JICA) and World Bank. The KCR project was to be funded by the ministry of economy, trade & industry government of Japan, through Japan Bank of International Cooperation (JBIC). Tokyo had commissioned 100 percent funding for the project under "STEP Loan" at 0.2 percent mark-up rate for a 40-year payback time, including a 10-year grace period.

The KCR had gone off the tracks in 1997 due to the losses experienced by Pakistan Railways. Soon after the closure of the circular railway the citizens had to travel either through the congested buses or their own means of transport which increased the vehicular traffic causing the regular gridlocks on the main roads of the city.

According to sources, Karachi, being economic engine of growth and over 16 million population, was facing tremendous growth in traffic at 7.2 percent annually. Beside its disproportionate yearly growth of buses of 17 percent causing congestion and accidents, increasing in travelling time, the railway-based transport system was the need of the hour.

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## Omar1984

*Govt to construct Bara multipurpose dam in FATA ​*
ISLAMABAD: To bring the area of tribal belt at par with other developed areas of the country, the government has to construct Bara multipurpose dam at the cost of Rs 14.208 billion. 

The dam is situated across the Bara River in Khyber Agency and the government approved it in ECNEC meeting held a few days ago. The project will help expose the militancy stricken people to sigh of relief and durable and sustainable development and prosperity. The sponsoring agency of the project will be Ministry of Water and Power while the executing agency will be the WAPDA. 

It would help in ensuring the irrigation of 41,729 acres of land and would generate 5.8MW much-needed electricity. 

The said dam was to be constructed under Presidents initiative for water and agriculture sector under which 32 small dams would be constructed. 

It is pertinent to mention that for 32 small dams in Pakistan, China will extend $700 million on long-term credit and government of Pakistan will contribute $300 million.

However, the type of the proposed dam was an earth core fill dam having height of 92 meters and crest length of 450 meters. The dead storage capacity of the dam was 22,929 acres feet of water live storage was 62,434 acres feet. 

The official said that a powerhouse with design power generation capacity of 38.1 Giga watt hour would also be constructed. The overall life of the dam has been estimated to be about 100 years. 

However about 50 percent of the live storage would be lost in about 60 years. This meant that the useful design life of the dam was 50 years. 

This dam with live storage capacity of 62, 434 acre feet of water will help bring the prosperity in the FATA and adjacent area of Peshawar as it will provide assured irrigation water supply to 41, 729 acres of agriculture land. This means that the said dam will help increase the cropping intensity from 99.1 percent to 161 percent. 

The official said that the dam would also provide 20 million gallons of water per day, in addition to 10 cusecs regular water supply to Peshawar cantonment and 6 cusecs of regular water supply to local factories in Tehsil Bara. 

Later on two power houses of 5.8MW of electricity will be constructed also that will ensure the electricity for the local dwellers at cheaper rates. In addition, the dam will also ensure the production of 155 tonnes of fish that will help turn the life of local into prosperous zone.

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## ramiz1236

why the hell we don't set up & use Electric Buses (called trolley bus) it is being used in many countries.It saves oil & are environmentally friendly.
It also doesn't require huge investments as the inter city rail networks requires. Save gas,oil,foreign exchange,environment & a lot of $$$....


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## Young-khan

ramiz1236 said:


> why the hell we don't set up & use Electric Buses (called trolley bus) it is being used in many countries.It saves oil & are environmentally friendly.
> It also doesn't require huge investments as the inter city rail networks requires. Save gas,oil,foreign exchange,environment & a lot of $$$....



Good idea but we already have energy shortage, so introducing such buses will be pointless, maybe in the future if and when pakistan can meets is energy needs.


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## jwh

It's great to see that our best friend Pakistan gets advanced in terms of infrastructure and transport. I think, as for pakistan, the main task is to maintain the stable political and security situation. I hope a strong and stable Pakistan as our neighbor.

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## ajpirzada

*Faisalabad-Gojra Section of M-4: NHA awards contract to Chinese firm* 
TAHIR AMIN
ISLAMABAD (December 04 2009): The National Highway Authority (NHA) awarded the contract of Faisalabad-Gojra Section of M-4 to Chinese Company China Water and Electric Corporation here on Thursday. The project is part of Faisalabad-Multan motorway costing Rs 10.3 billion. Chairman NHA, Altaf Ahmed Chaudhry and President of China Water and Electric Corporation Wang Shoepeng signed the agreement.

Out of Rs 10.3 billion project cost 85 percent would be given by the Asian Development Bank (ADB) while the rest 15 percent in shape of land acquisition will be spent by the government. Total distance of the first package ie Faisalabad-Gojra section is 58 km. The project included four interchanges, nine flyovers and nine bridges. The section of motorway M-4 is designed for speed limit of 120 km/hr with 100m right of way. Renardet S A will work as project supervisory consultant.

Speaking on the occasion, the Chairman NHA, Altaf Ahmed Chaudhry said that Faisalabad to Multan Motorway (M-4) which is 221km long is divided into six packages, which would cost Rs 40 billion. He said that it was a historic moment for the organisation to start work on this important project.

He said that M-4 was the first motorway project in Southern Punjab and it will provide new opportunities to the people of these areas. He said the 58 km long section would be completed in 3 years and would cost around Rs 10 billion. He also hoped that the Chinese firm would complete the project in time and according to the laid down standards.

With the completion of M-4, the total length of motorways in Pakistan will exceed 800 km and people will have world class road network from Peshawar up to Multan, Altaf said, adding that the construction of M-4 was part of government's plan to establish National Trade Corridor in Pakistan.

"Following this concept, the Gwadar and Karachi Ports will be connected with the northern parts of the country through a network of motorways and Expressways besides providing linkages with the neighbouring countries," NHA chairman added. He further said that NHA was vigorously working on the plan expected to be completed by 2013.

He said that with the completion of National Trade Corridor, Pakistan will be connected to major economic players of this region which will enormously help in boosting the national economy. He maintained that NHA was currently working on 60 projects worth Rs 124 billion, however, due to inflow of funds some of the projects are being delayed.

The president of China Water and Electric Corporation Wang Shoepeng said that his company was working on a number of important projects in Pakistan. He assured that his company would work on the motorway project with the same zeal and try to complete it within the given timeframe. He said that the company had security concerns but the government of Pakistan has assured them of full security.

Business Recorder [Pakistan's First Financial Daily]


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## ajpirzada

it will be a great achievement if we get NTC project completed by 2013

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## ajpirzada

*President Zardari inaugurates Larkana-Khairpur Bridge * 

LARKANA, Dec 29 (APP): President Asif Ali Zardari here on Tuesday performed the inauguration of Larkana-Khairpur Bridge project on River Indus, near Puranaabad Village in Larkana District.The total cost of the project is Rs 1,444.928 million and has been completed in 30 months&#8217; time.The total length of the bridge is 1.222 kms and it will reduce the distance between Larkana and Khairpur from 128 km to 55 km.President Zardari also laid the foundation stone of Quaid-i-Awam University College of Engineering, Science and Technology.He also laid the foundation stone the Sindh Industrial Trading Estate at Taluka Dokri in Larkana District.

The President also laid the foundation stones of various projects of National Highway Authority (NHA)- 28 kms Larkana-Moenjodaro Airport Road which will also be improved and connected with Raterodero, Khuzdar, Gwadar Road (M-8) and 69 km Sukkur-Shikarpur- Jacobabad Road which will connect Sindh with Balochistan and 200 km Sehwan-Raterodero Road on the Indus Highway.


Meanwhile, Chairman Pakistan People Party (PPP) Bilawal Bhutto Zardari performed the foundation -stone laying of Shaheed Mohtarma Benazir Bhutto Medical University Larkana and a cricket ground at Garhi Khuda Bakhsh Bhutto which would be constructed by Pakistan Cricket Board (PCB).

Associated Press Of Pakistan ( Pakistan&#039;s Premier NEWS Agency ) - President Zardari inaugurates Larkana-Khairpur Bridge


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## ajpirzada

Terrorists working on foreign agenda: PM 
GWADAR, Dec 29 (APP): Prime Minister Syed Yusuf Raza Gilani on Tuesday said terrorists were working on foreign agenda to create instability in the country and said their strongholds were being targeted. Describing them as &#8220;speed breakers&#8221; in country&#8217;s development Prime Minister Gilani said, effective measures were being taken to fight the terrorists.

Talking to reporters *after inaugurating the Rs 2.13 billion Gwadar-Jewani road *the Prime Minister expressed confidence that terrorism would be crushed.
&#8220;I am confident that we will succeed in this war and resolve the issue of terrorism,&#8221; he said.
He said the government was working on a strategy to attack the strongholds of militants and said the military operation was being backed by the political and religious leadership.
He mentioned the sacrifices of law enforcement agencies personnel who laid their lives for the country&#8217;s defence.
Referring to the blast during the Ashura procession in Karachi, the Prime Minister appealed to the people to observe calm after the tragic incident.
*Inaugurating the 67-kilometer long Gwadar-Jewani section of the Makran Coastal Highway, completed in three years, Gilani said the project would ensure city&#8217;s economic development and create job opportunities for the locals.*

Associated Press Of Pakistan ( Pakistan&#039;s Premier NEWS Agency ) - Terrorists working on foreign agenda: PM


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## Hang em High

I have heard rumors that Ishrat Hussain [the former governor of SBP] is being considered for the now Vacant Finance Minister seat [Can anyone fill us in on this one].


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## ajpirzada

^^ yes. he is one of the 4 candidates. but according to one news, he has declined the offer.

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## Hang em High

ajpirzada said:


> ^^ yes. he is one of the 4 candidates. but according to one news, he has declined the offer.



hmmmmm but please tell me they are not considering Shamim Akhtar the job.


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## ajpirzada

no. who is shamim akhtar? our former state bank governor


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## Hang em High

ajpirzada said:


> no. who is shamim akhtar? our former state bank governor



Yes the same fem dog!!! I guess Shamshad Akhtar


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## SHAMK9

Neo said:


> *PIA to buy fuel-efficient aircraft ​*
> LAHORE (September 16 2008): Pakistan International Airlines (PIA) Managing Director Captain Ajaz Haroon has said that PIA will buy fuel-efficient passenger aircraft after disposing of existing aircraft that have outlived its operational life. He expressed these views while talking to newsmen at an iftar dinner hosted by PIA here on Monday.
> 
> Haroon said: "In order to come out of the financial crisis they have requested the government to take the ownership of its assets (especially its hotels in New York and Paris) that worth not less than US $1 billion." To a question, he said an amount of Rs 1.5 billion, which PIA owe to the Civil Aviation Authority, is disputed and would be settled soon.


WHICH AIRCRAFT


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## SHAMK9

Jana said:


> *Construction of tallest building of South Asia: eight-member board of directors constituted *
> 
> 
> LAHORE (October 10 2008):* Punjab government has constituted an eight-member board of directors (BoD) to review the constructing of the first tallest building (1947 feet) of South Asia, Mubarak Centre, that would be completed by the year 2012 at a cost of $1.2 billion. The 72-story-Mubarak Centre is being constructed under private-public partnership with 30:70 ratio of the Punjab government and the Abu Dhabi Group respectively.
> 
> Punjab government will be represented by Secretary Finance, Chairman Planning and Development and Chief Secretary while Abu Dhabi Group will be represented by Chairman Abu Dhabi Group Sheikh Nehyan Mubarak Al-Nehyan and CEO Abu Dhabi Group Bashir Ahmed Tahir in the new board of directors*.
> 
> Mubarak Centre will be the tallest building in South Asia after its completion. The Centre will include residential and office towers, as well as conference halls and a shopping mall. The first phase of the project is expected to be completed in 2010 and the whole project will be completed at a cost of about $1.2 billion in 2012.
> 
> The complex will consist of four towers and a small eclipse shaped building. The main tower will be 72 stories, while the first 30 floors will be reserved for offices, and from 31 to above for residential apartments. The other three towers will be between 30 to 34 stories, with an eclipse shaped tower in between, which will house uniquely designed apartments along with a five story covered shopping mall, which will be biggest and most exclusive shopping and entertainment complex in the region.
> 
> The eclipse shaped tower will also house the largest reception and conference halls in the country, holding between 3,500-4,000 people. There will be exclusive, high-end residential suites in the main tower, again managed by Hyatt residency. Also, parking space will be provided for over 4,000 cars. The complex will be connected to the Gaddafi Stadium Sports Complex by a covered, over-head bridge or possibly an underpass.
> 
> The project is being carried out as a joint venture between the Abu Dhabi Group and the government of Punjab. The two investors have formed a holding company for Mubarak Centre called Taavun (Pvt) Ltd, which will be responsible for managing the project. Pakistani and foreign companies will construct this project.
> 
> The height of the building will make it visible from India, as well as allow residents of the upper floors views of the Golden Temple in Amritsar (approximately 50km away from the building) on clear days.
> 
> With the completion of Mubarak Tower, investment by Abu Dhabi Group will exceed $12 billion mark in Pakistan, which is the largest investment in the country by any foreign group. According to an official of the provincial government, this will be the tallest building in the region and the government is taking keen interest in promoting such mega projects.
> 
> Business Recorder [Pakistan's First Financial Daily]


this project is cancelled


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## Omar1984

*Govt to construct roads in NWFP ​*
ISLAMABAD: To reduce transportation cost and to facilitate efficient movement of goods and passengers in selected 16 districts of NWFP, the government with the cooperation of Japan Bank for International Cooperation (JBIC/OECF) will initiate Rural Roads Construction Phase-II with the cost of Rs 6.974 billion.

For completion of this scheme, the government of Japan (JBIC) would provide Rs 6.556 billion (94 percent) soft loan and the remaining 6 percent (Rs 418.51 million) would be arranged by the provincial government of NWFP, sources told Daily Times on Thursday. Main purpose of the scheme was to construct 331 kilo meters of rural roads in districts Peshawar, Kohat, Karak, Bannu, Lakki Marwat, DI Khan, Dir, Charsadda, Mardan, Swabi, Tank, Swat, Shangla, Buner, Malakand and Chitral. It would help in rural transformation, better access to health facilities, and agriculture development in the targeted areas. The scheme would also assist the government in rehabilitation of the existing farm to market roads, which are in deteriorated condition.

The sources said no direct income was expected from the project. However, there would be insignificant benefits in terms of reduction in transportation cost, time saving and to farmers to bring their commodities to market timely. Under this scheme, about 215 kilo meters with unit cost Rs13.90 million would be spent on rehabilitation, widening of rural roads in plan areas, and about 116 kilometres with unit cost of Rs 20 million would be spent on rehabilitation, widening of rural roads in hilly areas, the sources maintained. staff report

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## Hang em High

Well guys if you want to read something on pakistan's infrstructure development problems read this highly in-effective and badly written report. [though good for starters]. Follow the source link. 
Source: South Asia - Pakistan: Infrastructure Implementation Assessment


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## Hang em High

The very scale of Pakistan&#8217;s education sector -- more than 150,000 public education institutions serving over 21 million students and a huge private sector that serves another 12 million &#8211; presents formidable challenges.

Expanding access and achieving gender parity
Literacy in Pakistan rose from 45 to 54 percent between 2002 and 2006, and net primary enrollment rates increased from 42 to 52 percent. But Pakistan&#8217;s participation rates remain the lowest in South Asia and there are wide male-female, inter-regional and rural-urban disparities:
- Only 22 percent of girls, compared to 47 percent boys, complete primary schooling
- Female literacy in rural Balochistan is only 32 percent compared to high urban male literacy rates (80 percent among urban male in Sindh)
Sustained efforts are needed to achieve the 2015 Millennium Development Goals in education -- full primary completion and gender parity in enrolments.

Reducing the high dropout rates
School dropout rates are high starting, especially, at the secondary level:
- Only 30 percent of Pakistan&#8217;s children receive secondary education
- Only 19 percent attend upper secondary schools

Expanding and modernizing vocational and tertiary education
Better access, teaching and research are needed at the tertiary level to equip graduates with the high-level skills needed to build a knowledge economy. Currently:
- Tertiary enrollment rates are less than 5 percent of the eligible age cohort (17-23).
- Less than 8 percent of the work force receives formal training.

Improving education quality and governance
These challenges call for improvements in governance and greater accountability on the part of education service providers. This requires:
- Continued government commitment to education and policy reforms.
- Capacity building in institutions delivering education services.
- Increased investment in education which, currently at 2.3 percent of GDP, is among the lowest in South Asia.

Source: Pakistan - Education in Pakistan

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## Omar1984

*Arbab appreciates China road infrastructure assistance ​*
IslamabadMinister for Communications Dr Arbab Alamgir Khan appreciated on Monday the assistance provided by Chinese government in the road infrastructure in Pakistan and said that the cooperation between China and Pakistan has proved to be exemplary. He was addressing a joint ministerial committee meeting between Pakistan and China which was held at the NHA.The Pakistani side was headed by Federal Minister for Communications Dr Arbab Alamgir Khan and the officials from Ministry of Communications and other ministries also attended the meeting. Xu Zuyuan, Vice Minister for Transport of China headed the Chinese delegation including officials from Ministry of Transport,International Cooperation Department and representatives of Chinese Engineering Companies. The meeting discussed host of issues including Gwadar Port, its infrastructure and road network plan, connectivity projects, Hawelian- Khunjrab Road/ Railway link and construction of roads and Highways including extension work on Karakorum Highway (KKH).

The Minister while addressing the meeting said that ministry of communication has taken up projects worth Rs 150 billion in Pakistan and it has involved different Chinese companies in the development of infrastructure projects. He said that the government of Pakistan desires more technical and physical assistance from the government of China in these projects.

He added that KKH is a landmark project and a symbol of friendship between the two countries, which has significance both historical and economical importance. He appreciated the progress of work on the Khunjrab-Raikot Road being carried out by the Chinese firm and hoped that Chinese government will also extend assistance in the other projects as well.

The minister also praised the Gwadar Project completed by the China and stressed the need for upward linkages of the port with the rest of the country and neighboring countries. Chinese technical as well financial assistance in this regard would be of great help, he added.

Chinese Vice Minister of Transport Xu Zuyuan said that Pak- China relations are time tested and the geo-strategic partnership between the two countries will continue in the future as well. He extended his support and assistance to Ministry of Communications and NHA in the road sector cooperation. Xu Zuyuan also extended an invitation to the Minister to visit China to further promote the bilateral economic activities.

Earlier the Chairman NHA Altaf Chaudhry briefed the delegation about the ongoing and future projects of NHA. The Chairman said that Chinese company is presently working on the Khunjrab-Raikot section of KKH, but the work has been stopped due to the land sliding at Hunza. He said that NHA looks forward to technical and financial assistance of China in removing the blockade to complete the project in time. Altaf Chaudhry said that Gwadar Port, built with Chinese assistance, needs upward links to the rest of the country and neighboring countries. He anticipated that Chinese firms would show interest in these projects to connect Gwadar Port with rest of the country for trade and commerce.APP


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## Omar1984

*Construction of marine protection, quay wall inaugurated ​*
KARACHI: Minister for Ports and Shipping, Senator Babar Khan Ghauri in presence of the Vice Minister for Transport, Peoples Republic of China, Xu Zuyuan inaugurated the construction of marine protection and quay wall works of the Deep Water Container Port at Karachi Port on March 30, 2010.

While speaking at the ceremonial gathering, the Minister said Pakistan is blessed with a coast of warm waters with three ports which gives it a strategic advantage in accessing Central Asia and South Western China through an economical connection of South Asia, Central Asia and beyond. 

He said Karachi Port is central to the scheme and with existing good roads and rail facilities further extended on completion of the new port, there would be greater clearance and connectivity with hinterland. The initiation of construction of marine protection and quay walls works, in the second phase, underlines the speedy ongoing work of the project along with the ongoing dredging and reclamation works.

Earlier, the Chairperson KPT Nasreen Haque emphasised on the importance of the Deep Water Container Port and the various phases in which these works are being undertaken. She said the project costing $1.6 billion would complete in various phases  Marine Protection Work, Quay Wall Construction Work, Dredging and Reclamation Works and Navigational Aids work. 

Of these, the Dredging and Reclamation Work is already underway by a Chinese firm namely M/s China Water & Electric Company and now KPT is entering in the second phase to start the construction of Marine Protection and Quay Wall works, which too has been awarded to another Chinese firm namely M/s China Harbour Engineering Company Limited having vast national and international experience related to infrastructure and port related developments. 

She said the marine protection works envisages providing shelter to the port basin and preventing sediment movements in the basin, whereas, the construction of quay wall will be providing berths of 16 meters depth initially and finally 18 meters for accommodating Super Panamax vessels. 

With the completion of the Deep Water Container Port, Karachi Port will be ready to receive and dock larger and mother vessels. The Marine Protection Work includes the construction of 3 breakwaters and a sand dyke. The three breakwaters have been given names Keamari Extension, Oyster Rock Breakwater and Manora Breakwater. Keeping in view the significance, the design parameters are set according to wave conditions (generated by180  270 degrees south westerly winds) entering the port of Karachi. The design life and standard of breakwaters are of 50 years and the design standard adopted for life is 100 years. It is estimated to cost $250 million and will complete in 30 months. 

The Chinese Minister for Transport, Xu Zuyuan said as an Asian developing country, China sees the development of Pakistan with great interest. He said Chinese people feel profound pleasure when Pakistan treads on the path of progress and development. He said the construction of Deep Water Container Port is in the national interest of Pakistan and the construction of marine protection and quay wall are significant steps taken by Pakistan to make the new port a reality. staff report


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## Hyde

*Chinese government asked to finance rail link projects worth $6 billion ​*

ISLAMABAD (April 01 2010): Pakistan has requested China to finance Pakistan Railways projects, costing over $6 billion, to develop rail link with Iran, Central Asian States, and European countries in a bid to enhance trade with neighbouring countries, Business Recorder has learnt.

A list of projects, obtained from Railway Ministry, shows that Pakistan is currently negotiating with Chinese government to finance the project *'Construction of new Rail link from Havelian to Khunjrab' costing $3 billion designed to connect China with Europe (EU) through Pakistan, Iran and Turkey.* Sources said that the pre-feasibility study had been finalised and submitted to Chinese government for financing. *Total track length is 662 km.*

*Pakistan is also seeking Chinese assistance for 'Construction of Rail link from Gwadar Port to Mastung (Quetta)' costing $1.783 billion for rail link with Central Asian Republics (CAR) through Afghanistan. The other project is 'Up-gradation of Spezand-Taftan Rail link' (608 km) worth $529.4 million for rail traffic with Europe through Iran and Turkey.*

A trial container train is already in operation from Islamabad to Istanbul (Turkey) via Iran with transshipment at Iran border due to change of gauge of rolling stock. Construction of Rail link from Peshawar to Jalalabad would cost $155 million and funding request for this project has also been tabled before the Chinese government. Replacement of obsolete signal system from Lodhran to Kotri is also being discussed with Chinese government. It would cost $284 million.

Pakistan Railways has a fleet of 69 Chinese locomotives and the government of Pakistan has placed an order with Chinese suppliers for procurement of 75 more locomotives. "Chinese government may provide technical and financial assistance along with transfer of technology for manufacture of locomotives in future," sources noted.

They said that Pakistan Railway is in dire need of modern high capacity wagons to replace obsolete 4 wheeler wagons. Pakistan Railways is preparing PC-1 for projects for procurement of 2500 high capacity wagons costing $264.7 million, and 1000 high capacity tank wagons worth $140 million. "These wagons are urgently needed for transportation of containers and oil traffic and the government of Pakistan has sought technical and financial assistance along with transfer of technology for manufacture of wagons from China," sources added.

The development of rail through private sector funding, under public private partnership (PPP) mode is being considered a major opportunity for rehabilitation of the rail system in Pakistan which requires investment. "Pakistan has urged China for PPP mode to invest in railway sector as the potential scope for PPP with China in Pakistan Railways is very large," sources added. PPP mode is also possible in non-core activities such as locomotives, coach sleeper manufacturing factories and other sub-sectors like maintenance of track. Pakistan has requested the Chinese government to urge Chinese firms to take part in various projects under PPP mode as they would be provided necessary support and incentives," sources said.

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## Hyde

*PIA to expand flight operations by launching new destinations ​*

KARACHI (April 01 2010): PIA is expanding its flight operations this year, by launching new destinations and increasing the frequency of its existing flights. *PIA is pleased to announce commencement of its new weekly flight to Kuala Lumpur from Lahore/Islamabad on every Wednesday.*

The airline now operates three weekly flights to Kuala Lumpur from Pakistan two flights from Karachi every Friday and Sunday and one flight from Lahore/Islamabad. Managing Director PIA, Captain Muhammad Aijaz Haroon while sharing his views on the commencement of third weekly flight to Kuala Lumpur; said that this flight meets the longstanding demand of travellers, business and expatriate community.

The National Carrier is expanding its operations to new destinations while increasing the frequency of its existing well - established routes such as Karachi- London, Karachi - Dubai and other destinations, he added. PIA's first flight for Kuala Lumpur carrying 204 passengers took off on Wednesday at 7:00 am from Allama Iqbal International Airport, Lahore.

Passengers of the said flight were seen off by PIA District Manager Lahore, Mansoor A Mela and other senior officials of the airline. *PIA has planned twice weekly flights to Chicago, USA via Barcelona from Pakistan starting from June 2, 2010.* *The airline will also start direct flight to Jeddah from Sialkot on April 3, 2010,* *while one weekly London flight from Sialkot via Karachi has already been introduced earlier this week.*

*Fourth weekly flight from Karachi to London with B777 aircraft will be starting from May 10, 2010, and a third weekly flight to New York starting from May 18, 2010.* PIA is now operating twice daily flights from Karachi to Dubai with both morning and evening departures for the convenience of the passengers. The airline will also operate a third weekly frequency to Oslo/ Copenhagen starting Thursday April 1, 2010. The increased flight frequencies and new destinations introduced will further facilitate passengers besides earning revenues for the national carrier.-PR


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## SHAMK9

Zaki said:


> *PIA to expand flight operations by launching new destinations ​*
> 
> KARACHI (April 01 2010): PIA is expanding its flight operations this year, by launching new destinations and increasing the frequency of its existing flights. *PIA is pleased to announce commencement of its new weekly flight to Kuala Lumpur from Lahore/Islamabad on every Wednesday.*
> 
> The airline now operates three weekly flights to Kuala Lumpur from Pakistan two flights from Karachi every Friday and Sunday and one flight from Lahore/Islamabad. Managing Director PIA, Captain Muhammad Aijaz Haroon while sharing his views on the commencement of third weekly flight to Kuala Lumpur; said that this flight meets the longstanding demand of travellers, business and expatriate community.
> 
> The National Carrier is expanding its operations to new destinations while increasing the frequency of its existing well - established routes such as Karachi- London, Karachi - Dubai and other destinations, he added. PIA's first flight for Kuala Lumpur carrying 204 passengers took off on Wednesday at 7:00 am from Allama Iqbal International Airport, Lahore.
> 
> Passengers of the said flight were seen off by PIA District Manager Lahore, Mansoor A Mela and other senior officials of the airline. *PIA has planned twice weekly flights to Chicago, USA via Barcelona from Pakistan starting from June 2, 2010.* *The airline will also start direct flight to Jeddah from Sialkot on April 3, 2010,* *while one weekly London flight from Sialkot via Karachi has already been introduced earlier this week.*
> 
> *Fourth weekly flight from Karachi to London with B777 aircraft will be starting from May 10, 2010, and a third weekly flight to New York starting from May 18, 2010.* PIA is now operating twice daily flights from Karachi to Dubai with both morning and evening departures for the convenience of the passengers. The airline will also operate a third weekly frequency to Oslo/ Copenhagen starting Thursday April 1, 2010. The increased flight frequencies and new destinations introduced will further facilitate passengers besides earning revenues for the national carrier.-PR


PIA is rapidly growing mashallah . they need more long range planes


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## sparklingway

*It seems like the M-8 (Ratodero - Gwadar) is going to be completed by the end of the year. Anybody with firsthand knowledge about these projects?*

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## Hyde

You are right sparkling check out the map from Google. M8 is 95&#37; completed...Just need to connect a tiny part near Khuzdar (somewhere in the middle of M8). That will connect Gwadar with Sindh



Check it out yourself from google maps

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## ameer219

*
Ticketless travelling: Karachi Railway Division recovers over Rs 13 million *


KARACHI (April 05 2010): The Administration of Karachi Railway Division continue to come down on ticket less travellers with a strong hand and during the month of March the special teams detected 17,576 ticket less travellers.

The drive against ticket less travelling started on the directive of Divisional Superordinate Aftab Memon, has produced positive results, said Divisional Commercial Officer, Kashif Yusufani, while talking to APP.

He said that during March the railway recovered an amount of Rs 7.234 million from ticket less travellers. He pointed out that during February when the drive was started, the railway special teams had detected 16,316 ticket less travellers along with recovery of fair and fine of over Rs 6.400 million bringing the total recovery during February and March to record Rs 13.634 million.

DCO said that during March 5 railway employees were also placed suspension for helping the passengers to travel ticket less and served with showcause notices. He said that recommendation has been sent to Headquarters for initiating action against 11 officials of other Divisions as well as police officials for their abetment in ticket less travelling.

Yusufani said that the drive would continue unabated and the action taken during the last two months had alerted the unscrupulous railway employees and other elements who were now discouraging the menace of ticket less travelling.


Copyright Associated Press of Pakistan, 2010


Business Recorder [Pakistan's First Financial Daily]

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## Omar1984

*China interested in more bilateral projects ​*
ISLAMABAD: The present government is taking up various mega projects to develop the road infrastructure in Pakistan, said Federal minister for Communication Dr Arbab Alamgir Khan here on Monday. 

He appreciated the assistance of the Chinese government in this field and added the Chinas cooperation with Pakistan has proved exemplary. 

Addressing a joint ministerial committee meeting between Pakistan and China, which was held at the NHA, he said ministry of communication has taken up projects worth Rs 150 billion in Pakistan and it has involved different Chinese companies in the development of infrastructure projects. He expressed the government of Pakistan desires more technical and physical assistance from the Chinas government in these projects. He added KKH is a landmark project and a symbol of friendship between the two countries, which has a historical and economical importance. 

He appreciated the progress of work on the Khunjrab- Raikot Road is being carried out by the Chinese firm and hoped that Chinese government will also extend assistance in the other projects as well. 

The minister also praised the Gawader Project completed by the Chinese and expressed a need for upward linkages of the Port with the rest of the country and neighboring countries. Chinese technical as well as financial assistance in this regard would be of great help, he added. 

Chinese vice minister of Transport Xu Zuyuan said Pak-China relations are time tested and the geo strategic partnership between the two countries will continue in the future as well. He extended his support and assistance to Ministry of communication and NHA in the road sector cooperation. Xu Zuyuan also extended an invitation to the Minister to visit China to further promote the bilateral economic activities.

Earlier, the Chairman NHA briefed the delegation about the ongoing and future projects of NHA. The chairman said the Chinese company is presently working on the Khunjrab-Raikot section of KKH, but the work has been stopped due to the land sliding at Hunza. He said NHA is looking forward to technical and financial assistance of China in removing the blockade to complete the project on time. 

He said Gawader Port, built with Chinese assistance, needs upward links to the rest of the country and neighboring countries. He anticipated that Chinese firms would show interest in these projects to connect Gawader Port with the rest of the country for trade and commerce. Later, Minister for Communication Dr Arbab Alamgir Khan gave a shield of NHA to the visiting dignitary and thanked him for the visit. 

The Pakistani side was headed by Federal Minister for Communication Dr Arbab Alamgir Khan and the officials from Ministry of communication, and other ministries, Xu Zuyuan, Vice Minister of Transport, Peoples Republic of China headed the Chinese delegation including officials from Ministry of transport, International cooperation department and representatives of Chinese Engineering Companies. staff report


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## Omar1984

*Renexus of Malaysia ready to invest US$500m in Pakistan ​*
ISLAMABAD, Apr 1 (APP): Renexus, a renowned company of Malaysia dealing in water treatment plants, construction infrastructure development and technology, has shown interest in investing around US$500 million in Pakistan for building water treatment plants on Built, Own and Operate (BOO) basis. This was stated by John Klerr, Executive Chairman of Renexus during his meeting with Acting High Commissioner for Pakistan in Malaysia Dr. Imtiaz Ahmad Kazi in Kuala Lumpur, says a message issued here by Pak High Commission in Malaysia. 

About the investment proposal, Klerr said the Renexus was ready to build water treatment plants at various locations in Pakistan, specially in Punjab aimed at providing potable water for public as well for industrial use. 

According to the proposal, he said that Renexus will arrange all the required funding to build, own and operate the water plants and sell the water in bulk to the government-related agencies, who in their turn, would effect the distribution to the end user and collect utility charges. 

The Acting High Commissioner suggested Klerr to increase the scope of their investment to other areas in the country like Balochistan, Sindh and NWFP and industrial city of Karachi which are also facing shortage of safe and clean water. 

Klerr also said that Renexus is interested to Built, Own and Transfer (BOT) mass housing schemes in identified areas of Pakistan provided that sovereign guarantees is given to them to ensure security of their investment. 

Executive chairman said that Renexus has the expertise and capabilities to construct a model township with 20,000 unites equipped with green technology and complete with modern amenities such as recreational facilities, shopping areas, sewerage and waste management, mosque playing ground, communication and transportation network. 

He said once first experiment is approved, Renexus can build 100,000 housing units in Pakistan within five years to help Pakistan to overcome the acute shortage of housing. 

The Executive Chairman also informed that Renexus was in touch with the state government of Perak, Malaysia to construct a modern automated standard abattoir in Pakistan in order to provide bulk supply of Pakistani mutton and beef to Malaysia of which there was great demand and market in this region. 

The Acting High Commissioner appreciate the initiatives and prospects envisioned by the Renexus as very useful and mutually beneficial. 

He assured the Executive Chairman that the High Commission will communicate Renexus proposals to the concerned quarters in Pakistan. 

The meeting was also attended by Commercial Counselor for Pakistani High Commission Wajiullah Kundi and Press Attache Qamar Bashir.


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## SHAMK9

this forum is just full of good news thanks for sharing and keep sharing


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## ameer219

*Boeing adds 4th 787 Dreamliner to fleet *

KARACHI: Boeing has added the fourth 787 Dreamliner to its flight-test fleet with the completion of the first flight of ZA003. We have established a good pace of accomplishment on the program, Scott Fancher, vice president and general manager of the 787 programme, Boeing Commercial Airplanes said. ZA003 is the only 787 in the flight test fleet that will include elements of the passenger interior features including cabin and crew support systems. We have done a significant amount of ground testing on the new systems on ZA003 in preparation for the first flight. Engineering, manufacturing and flight operations have really pulled together as a team to enable the first flight, Captain Ray Craig said. staff report

Daily Times - Leading News Resource of Pakistan


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## ameer219

*Pakistan Freight Transport Report 2010 - New Market Report Published 
*

In August, it was reported that Pakistan National Shipping Corporation (PNSC) had decided to enhance its shipping fleet and replace several of its old vessels. The company was preparing to buy two doublehull aframax tankers at an estimated cost of US$60mn. The company also planned to purchase another three tankers, two containerships and bulk carriers, and four or five general cargo vessels. PNSC was also considering establishing a joint venture with South Korean, Japanese and Chinese shipyards to construct vessels on a shared-equity basis. We see the expansion of the country's tanker fleet as a necessary move in meeting Pakistan's increasing demand for crude oil imports. Because of its poorly equipped liquid bulk fleet,we caution that Pakistan is likely to become more reliant on foreign shipping lines to service its import needs over the next few years, making the continued expansion of its domestic fleet a priority for the government. 

We now estimate GDP growth of 2.0% in 2009, quite sharply down on the 4.1% rate achieved in 2008. A weak recovery will begin in 2010 with GDP gaining 2.5%. However, growth will be subdued over the next five years, as Pakistan contends with the global slowdown and continuing internal political uncertainty. For the extended 2010-2014 forecast period we are now expecting average annual growth of 3.3%, down on the 5.5% achieved across the preceding five years, meaning that the effect on our freight traffic forecasts, if comparing the two periods, is negative. Broadly speaking, we maintain earlier changes to our mode-specific forecasts. Perhaps the most important, was to once more put back the expected surge in pipeline throughput to later in the forecast period because of expected delays, as discussions on the Iran-Pakistan-India (IPI) project continue. We believe that the growth of freight carried by road slowed in the tail end of 2005 due to the disruption caused by the earthquake, but recovered strongly as part of the relief and reconstruction effort. Rail freight turnover will lag behind GDP because of the poor state of the railway network and the absence of much-needed investment in modernisation. Taking all these factors into account, our forecasts for freight carried across all modes, and measured in mntkm, stands at an annual average of 4.3% in the 2010-2014 period. 

According to our latest estimates, the transport and communications sector grew by 2.0% in 2009, on a par with overall GDP. For the 2010-2014 forecast period we expect the transport and communications sector to just outpace the wider economy. It will achieve average annual growth of 3.5%, versus 3.3% for overall GDP. The total value of the transport and communications sector will rise to US$31.6bn in nominal terms by 2014, representing 13.2% of Pakistan's GDP. The transport and communications sector employed 2.93mn people, or 6.4% of the labour force, in 2009. We see both those figures rising, to 3.37mn people or 6.7% by 2014. 

Our forecast assumes that the country's ports - susceptible to bottlenecks and infrastructural delays - are able to cope with increased demand. There have been reports of congestion, particularly at Karachi, but development projects such as the new container terminal should alleviate this problem. In addition, congestion does not appear to be a major issue at Port Qasim. The greater benefits of the Gwadar project will only become fully apparent beyond the current forecast period. On the land transport side, we expect that the market share attributed to the railways is likely to diminish, as there is no evidence of major investment in Pakistan Railway (such as network extensions). If it is to regain a share of around 4% of the overall transport sector, the rail network will need to be rehabilitated and maintained at a higher level than at present. In fact, on current trends our forecast suggests rail's share will fall to just under 2% of total freight turnover. Despite a general government pledge to look at privatisation of the rail sector, we do not foresee significant progress along this route in the early part of the forecast period. Road transport will remain the largest sector, accounting for nearly 85% of all freight movements by the end of the forecast period. 

We expect road haulage to be one of the fastest-growing transport modes, with an annual average expansion of 4.3% in the forecast period. Pipeline throughput, as a result of current pipeline projects, will expand by 4.0% on average each year. Airfreight will be affected by the global downturn in aviation, with growth of 4.8% per annum. Slower international trade will also hit shipping in 2009, but the sector will still achieve average annual growth of 5.2% over the next five years. Rail freight will be the laggard with growth of 2.7% per annum.


OfficialWire: Pakistan Freight Transport Report 2010 - New Market Report Published


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## SHAMK9

ameer219 said:


> *Boeing adds 4th 787 Dreamliner to fleet *
> 
> KARACHI: Boeing has added the fourth 787 Dreamliner to its flight-test fleet with the completion of the first flight of ZA003. We have established a good pace of accomplishment on the program, Scott Fancher, vice president and general manager of the 787 programme, Boeing Commercial Airplanes said. ZA003 is the only 787 in the flight test fleet that will include elements of the passenger interior features including cabin and crew support systems. We have done a significant amount of ground testing on the new systems on ZA003 in preparation for the first flight. Engineering, manufacturing and flight operations have really pulled together as a team to enable the first flight, Captain Ray Craig said. staff report
> 
> Daily Times - Leading News Resource of Pakistan



is PIA getting 787 dreamliner?


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## ameer219

SHAMK9 said:


> is PIA getting 787 dreamliner?



No Idea about that.


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## Hyde

SHAMK9 said:


> is PIA getting 787 dreamliner?





ameer219 said:


> No Idea about that.



the above news had nothing to do with Pakistan. It was not supposed to be share in this thread


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## ameer219

Zaki said:


> the above news had nothing to do with Pakistan. It was not supposed to be share in this thread



Apologies, I saw it on buisness news, and I thought it was inducted. My bad


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## sparklingway

ameer219 said:


> Apologies, I saw it on buisness news, and I thought it was inducted. My bad



We sold half the country, a couple million people and 23 million bulls to buy some 777s. We might need to make it Pakistan (Pvt.) Ltd. to buy 787s


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## faisaljaffery

I think NHA wont b able to complete the M-8 project by Dec-10 due to deteriorated law and order situation in Balauchistan. I read a report that millitants usually attack contractors and destroy their equipment to slow down the pace of work...


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## Pakistan Ka Beta

__ https://twitter.com/i/web/status/1539602193145282560

__ https://twitter.com/i/web/status/1544938785389121537


__ https://twitter.com/i/web/status/1544936359944720384


__ https://twitter.com/i/web/status/1543227756950986757


__ https://twitter.com/i/web/status/1545067846572580865


__ https://twitter.com/i/web/status/1531505414151495681


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